Company Profile

Churchill Mining PLC (Churchill or the Company) listed on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2005.

Churchill's business plan is to leverage off the rampant growth currently experienced in China and India and in particular its appetite for raw commodities used as feedstock in its burgeoning steel and energy industries.

The execution of this business plan has been instigated with the acquisition of the Sendawar Coal Project in East Kalimantan, Indonesia as well as continued exploration of the South Woodie Woodie manganese project in Western Australia .

More recently, the company has concluded an Exclusivity Agreement with PT Techno Coal Utama in regard to the highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia.

Furthermore Churchill's management continues to assess further opportunities in Australia and southern Asia to acquire quality projects in line with the Company's business plan. Churchill is committed to growing shareholder value by become a leading minerals explorer and future miner at a time of accelerating commodities demand.


Recent Minesite article : http://www.churchillmining.com/pdf/2008/23_01_08.pdf


January 2008 Research note : http://www.churchillmining.com/pdf/2008/reserchnote.pdf

Astaire have a note out, talking of EPS of 26p to June 2011.

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Churchill has announced that it has upgraded the East Kutai resource
confidence with now more than 1.3Bt of the 3.18Bt global resource being
classified as Measured or Indicated. The company is planning to release an
initial reserve statement in early October, whereby we anticipate a
significant portion of the Measured and Indicated resource to be converted
to reserves. With an initial reserve statement and feasibility study due
before the end of 2009, there is plenty of upside potential in the Churchill
share price.

! Over 1.3Bt of Measured & Indicated Resource: By any measure of coal
properties, this is a big well-defined resource. The large proportion of
Measured & Indicated categories demonstrates the robustness of the
resource.

! Reserve Statement in October: Based on the large Measured & Indicated
resource, we are hopeful of an initial reserve in excess of 1Bt. At the
proposed production rate of 20Mtpa, this would translate into a potential mine
life of more than 50 years. A large reserve may also result in a larger scale
development as a second stage expansion.

! Feasibility Study on Track: The company has announced that 80% of the
engineering work has been completed and the feasibility study is on track for
completion by the end of 2009. Most of the site work has been completed,
with the focus shifting to the conveyor route and port site.

! Financing Discussions Underway: Churchill is assessing in parallel three
mechanisms for the financing of East Kutai, including:
o A standalone development comprising debt and equity
financing,
o A joint venture with a strategic partner, or
o The potential sale of the project based on a true value of the
project.

Of significant note is the size of the Measured and Indicated resource at 1.3Bt. For reserve studies, it is worth remembering that only Measured and Indicated resources can be converted to Proven and Probable Reserves under the JORC code.
It is therefore not unrealistic for us to expect that the initial reserve statement for East Kutai, expected in early October, could be in excess of 1Bt. Assuming an ore:waste strip ratio of around 1:1, this would indicate a potential pit size in the order of 1km x 10km x 100m.
To give some relative scale to this in London, it would cover an area the width of Hyde Park from Fulham to Tower 42 in The City, or alternatively, half the area of the City of Westminster.

At the current proposed production rate of 20Mtpa, this equates to a mine life of greater than 50 years. With this in mind, we would also expect the consultants managing the feasibility study to be looking into ways to accommodate further increases to the production rate down the track.

Indonesian Comparatives
Whilst the scale and proposed production rate of the East Kutai Project is
significant, it is comparable to other large Indonesian coal projects and highlights the fact that projects of this scale can and are being developed.
Three of the largest coal producers in Indonesia are shown on the table below:

Company / Project / Resources / Reserves / Production Rate / Comment
PT Bumi 10.7Bt 2.9Bt 60Mtpa Planned increase to 111Mtpa by 2012
PT Adaro 3.4Bt 870Mt 38.5Mtpa Planned increase to 80Mtpa
East Kutai 3.18Bt 1Bt expected 20Mtpa planned
Banpu 2.14Bt 600Mt 18.5Mtpa Mkt cap just under �2B

Mine and Infrastructure Planning
Churchill has also announced that the feasibility study work is proceeding as
scheduled, with a completion date still planned for late 2009. The engineering
studies are 80% complete with most of the site work also completed. The focus
has now moved to the proposed conveyor route and port location, where
geotechnical drilling will be undertaken.

Financing Update
In parallel with the feasibility study, Churchill has initiated discussions with potential financiers and advisers as to the optimal way of financing the
development of East Kutai. The company is assessing a standalone scenario with
financing via a combination of debt and equity, the introduction of a new joint
venture partner that will be able to contribute to the majority, if not all, of the funding requirements or, alternatively, Churchill is also considering a sale of the project.
We believe that all of the above scenarios are feasible, even given the expected US$500m capital expenditure cost. As has been demonstrated with groups such as Fortescue Metals Group in Australia, there may be an appetite for the project to be funded by a combination of equity and the issue of bonds.

The introduction of a strategic joint venture partner is appealing in that: a) it validates the project and the work completed to date; b) it provides Churchill with access to a large amount of low cost finance; and c) it provides Churchill with a sales platform for marketing of the coal. We expect there to be a significant amount of interest from Chinese and Indian groups in securing a foothold on a very large coal project such as this.

The potential sale of the project is interesting as it provides Churchill with a mechanism to realise the value of the East Kutai project, noting importantly that the work to date covers only 30% of the license area, leaving the company to replicate its efforts on the other 70% of the license area as well as providing it with a significant cash return. A sale amount in excess of US$300m is feasible in the current market for a project of this size, and the potential sale could, notably, be made at multiples of the current market capitalisation of the company.

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As a regular customer for many years i'll will be sad to see them leave,they have transformed the pub,working hard in doing. It is now a place where i feel comfortable in taking my family,which was not always the case previously. They have put tigather an excellent team,who make you feel welcome.
I wish them well and hope they enjoy their new life,they will be a hard act to follow.

CHL up 9% today rewarding patience,with news on the horizon a steady rise would be nice and looking for 80p nce the results are out?
aimho
cyril

Patiencr is a virtue and rewarded,70p and climbing.
cyril

Well 73p up from 43p less then 8 weeks ago,as with many such companies patience is required. Good research and a longer term view always made this a
Core Stock to hold imho?
cyril
ps not sure if i'm talking to myself, hmm?
"nice one cyril" lol

Hi Cyril, Don't worry you're not talking to yourself. Like you I hold this share and think that it is one worth holding onto. Best wishes, Clive.

Thanks for your responce,comforting to know. Results can't be that far off now and should bring this to notice of a wider circle? What will add spice to the company will ge a BFS which could be by end of year?
cyril

Just in and a happy chappy,all time high bring new support levels.Might evewn break 1 on resource update?
cyril

Hi Cyril, Still doing well and hopefully a resource update could push further as you mention. Being now retired I have been investing since early this year and was lucky enough to get in at the bottom of the crash (I stress lucky as I believe that good/bad fortune plays a large part in life) and I always liked this share/company even though I know one should have a detached approach to investing..?? I lived/worked some time in the Far East (Borneo) and know from personal experience that that area has great potential with industrious people and natural resources. I also have invested in Fortune Oil as I feel that the big picture looks promising there also. Being new to investing I am still learning the ropes as I go along (by the way what do you mean by BFS on earlier posts?) so I mainly try to judge things on the 'Big Picture' so to speak without too much attention to the nitty gritty - although I realize of course that basics do count. Best wishes Clive.

Good morning Clive.more news.BHP are rumoured to be tying up with CHL(ref. The FT today?) and seems to be the reason for the sudden rise? The resource update will hopefully add to SP,if as good as expected?
cyril

Just bought into this one today....like the last rns and the bid rumour in the FT could have some foundation........definitely worth a look ....IMHO

The Company notes recent press speculation together with the increase in its share price and advises that it has received three separate and unconnected non-binding approaches, all of which are at various stages. Two of these approaches relate to the possible acquisition of specific projects within Churchill, and the third relates to a possible offer for the Company as a whole.




The Company will continue discussions with all three of these parties, which may or may not lead to one or more offers for the Company or certain of its projects. The approaches are conditional on due diligence and at this stage there is no certainty that any will progress to completion.





The Company would also like to clarify that there is no basis to the speculation in the press linking the Company to BHP Billiton.

cyril

Not exciting enough?? Well theirs going to be plenty of excitement today.
cyril

Can we come round to your house as well cyril?? lol

BB of course,4th rock from the ?
Could this be one of the "interested parties"?

Sept. 9 (Bloomberg) -- NTPC Ltd., Asias biggest power utility by value, has hired Macquarie Group Ltd. to evaluate a proposed coal mine purchase in Indonesia, the Indian companys first overseas acquisition.

We appointed Macquarie about 15 days back and they have already started due diligence, Chairman R.S. Sharma said in an interview at his office in New Delhi. He didnt give details.

Indian utilities are seeking thermal coal assets overseas to plug a local shortfall as the country almost doubles generation capacity in the five years to March 2012. State-owned monopoly producer Coal India Ltd. said last month it will invest $1.5 billion to acquire mines abroad to help overcome a shortage of an estimated 228 million metric tons a year by March 2012.

cyril

Quite increditable, been out all afternoon golfing,checked in and absolutely no interest? Todays RNS is as near as good as it gets,here's a report summing it up.

Churchill Mining climbs after bid approaches



Coal group Churchill Mining has admitted this morning it had received no less than three separate approaches, but at the same time it denied speculation linking it with BHP Billiton.

It appears two of the approaches are for specific projects, while the other could lead to a full takeover of the business. Fairfax analyst John Meyer said Churchill's projects had attracted attention as the demand for coal increases, and suggested the company needed a strong partner to move forward. It has a large coal project in Indonesia and also owns a 20% stake in Spitfire Resources, which acquired the South Woodie Woodie manganese project in Western Australia.

News of the approaches has certainly lit up Churchill's shares - BHP or no BHP - and they have climbed 9.5p to 94.75p. BHP, meanwhile, is suffering from the general malaise in the rest of the sector, down 15.5p at 16.77.

I just don't know what more one expect,reserves maybe but there not to far away?
cyril

Cannot believe that this has not been marked up as much as it was. IMHO this share is still cheap at the present price. I can see some mention in the press overnight and then lets see what tomorrow brings........on other boards talk of bids around 150 are doing the rounds........lets hope so and if it stays low early on time to top up methinks..!

Market beginng to understand CHL at long last,up almost 25% since yesterday,on top of the recent 100% rise. Remember their are "3" interested parties in all or part of our projects.
cyril

RNS delay in issuing reserves statement?

Cheers halifax,this is the statement.

Indonesian coal explorer, Churchill Mining says that the initial reserve statement that had been expected for the East Kutai Coal project at the end of November will now be released early, some time later this month.

cyril

Not a delay, actually being brought forward from Nov to later this month.
I read earlier on another board that someone had spoke to the CEO, who
expected the results on the 14th,whatever within 3 weeks??

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