Austindo DIRECTORS' REPORT: Review of Operations
Thursday, September 14 2000 - 06:30 AM WIB
During the six-month period to 30 June 2000, the economic entity continued exploration activities at the Cibaliung project in West Java. Drilling commenced in March and at 30 June 2000 seven drill holes had been completed for a total of 1,760 metres.
The Company engaged an independent consultant to obtain expressions of interest from prospective purchasers of the Company's interest in the Saran Project in West Kalimantan. As no buyer or joint venture partner could be obtained the Directors resolved to commence action to terminate the Contract of Work and to proceed with the dissolution of PT Eastara Melawi Mineral.
The prospect of prolonged social, political and economic uncertainty in Indonesia remains of some concern to the Company. With senior management based in Indonesia and the involvement of PT Austindo Mining Corporation in the management of all operations, the Board of Directors is satisfied that the Company is as well placed as any to deal effectively with this situation. The bulk of the Company's cash reserves are maintained on deposit within Australia.
The consolidated loss of the economic entity for the period was $1,741,208 after income tax.
This report is signed in accordance with a resolution of the Board of Directors.
Dated at Sydney, New South Wales, this 12th day of September 2000
Signed Managing Director J.C. Carlile; signed Director B. J. Watson (*)