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

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Kk yes looking top class and with Credit Suisse now on board i can see this going from strength to strength. To think i recomended this at 50p abd was told not "exciting enough",well it's certainly getting so now.
cyril
ps, are you in AYM as it looks ready to break out,well worth researching?

No am not in AYM these are my only coal stocks, maybe if these get taken out then i may have alook at some others, at the moment money is tied up thanks

Churchill managing director Paul Mazak commented: �We view PLN as a very valuable government partner in Indonesia. Additionally, this provides Churchill with an opportunity to significantly scale up production plans at the East Kutai Coal Project by a further 5Mtpa, building on our plans to produce 20Mpta. Importantly, a supply agreement with PLN-B would also mean that Churchill would achieve its Domestic Market Obligation to supply coal into the Indonesian market."



In its Morning Report, Astaire Securities called the agreement �an important step forward for Churchill, which has an obligation to supply the domestic market�. �Churchill is moving forward with development of the East Kutai Coal Project, with today�s news potentially adding value, and increasing the attractiveness to potential off-take or JV partners, The broker added.

The East Kutai coal project currently which has a JORC compliant reserve of 956 million tonnes of thermal coal and resources of 2.481 billion tonnes.

There has been plenty of interest in East Kutai in the past few months. Mazak said last week the group has been inundated with proposals for its flagship project, and to streamline this process, Churchill put out to tender the position for a strategic advisor for the development of East Kutai and was approached by 9 investments banks. Enter Credit Suisse, which emerged as the leading candidate through its exceptional expertise in the Indonesian energy markets and impressive track record.
cyril
ps Kk AYM is more iron ore,40%holding in Labrador (LIM on the TSX),
worth doing some research in case funds become available?
GL_

http://www.youtube.com/watch?v=0QUsVDWd2js

Thanks cyril

Buy Churchill Mining (CHL) at 121.5p

Says James Faulkner of specialist small cap website WatsHot.com

Demand for coal is rising fast in the emerging powerhouses of India and China. However, the superpowers of tomorrow have relatively few natural resources of their own; they are therefore embarking on a 'resource grab'. In particular, India is becoming increasingly restive about its coal shortages and its largest power suppliers are exploring opportunities to acquire new sources of production to guarantee their supply commitments. Enter Churchill Mining. The company is developing what appears to be a world-class asset in Indonesia with a JORC-standard mining reserve of just under a billion tonnes, and resources of over 2.4 billion more - and all the signs suggest that could very well get a lot bigger. Big-boy dealmakers Credit Suisse are on board and Churchill has been inundated with suitors. Buy, at 121.5p.

East Kutai

Acquired by Churchill in two stages between 2007 and 2008, the East Kutai Coal Project (EKCP) covers an area of approximately 775 square kilometres. Drilling initially commenced on 500 metre spaced centres to a depth of between 100 metres and 150 metres, rapidly defining a large north/west-south/east trending coal corridor. Coal quality is defined as medium calorific, with low sulphur and low ash content. Following the completion of a GBP10 million capital raising in November 2007, exploration was significantly accelerated with in-fill drilling commencing on 250 metre centres across a 10 kilometre by 4 kilometre high priority zone. A total programme comprising 65,000 metres of drilling was planned, with an initial objective of delineating 100 million tonnes in reserves and 400 million tonnes in resources by the end of 2008. In April 2008 - well ahead of schedule - the company issued its first JORC compliant Mineral Resource statement. The 250 million tonne JORC coal resource exceeded the company's initial target of 100 million tonnes by 150%. The company then followed this up in September 2008 when it announced a new updated JORC resource of 1.412 billion tonnes. Most recently, in May 2009, the company announced that the global resource at the East Kutai Coal Project had more than doubled again to 3.18 billion tonnes of thermal coal. Included in this global resource was the previously reported JORC compliant resource of 1.4 billion tonnes. The balance is expected to be upgraded into JORC compliant categories shortly. Moreover, to date only 30% of the EKCP area has been drilled and the existing resource remains open along strike, meaning it could very well be a lot bigger. A completely new feasibility study is due out in June, and initial results have so far been "very encouraging".

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By any accounts this is a large and well-defined resource. To put things into context here, Indonesian coal miner Banpu has Resources of 2.14 billion tonnes, Reserves of 600 million tonnes and production of c.23 million tonnes per annum (Mtpa); its market capitalisation is c.$4.8 billion (with around $4 billion of that attributed to coal operations). Considering the high proportion of the resource classified as Measured & Indicated, brokers are hopeful that the initial Resource will be in excess of 1 billion tonnes, which would suggest a mine life of 50 years at the target production rate of 20 million tonnes per annum. Getting a project like this into production will require some serious financing (brokers estimate around $500 million). Possible outcomes could include: a mix of debt and equity financing; a joint venture with a strategic partner; or a sale of the project. Even in the project's cu rrent state, broker Astaire believes the company could achieve a sale value in excess of $300 million - significantly greater than the firm's current market capitalisation of just over GBP100 million. Notably, the company was the subject of at least three expressions of interest last September.

And it's easy to see why...

At 20Mtpa and a conservative cash operating margin of $20 per tonne, the project would generate free cashflow of $400 million per annum for at least 30 years. At a more realistic margin of $30 per tonne (based on $45/t revenue and $15/t costs), this increases to $600 million per annum.

Churchill is currently valued at just over GBP100 million.

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Recent Developments

Earlier this month, the company announced it had signed up Credit Suisse to to arrange whatever kind of deal eventually gets done on East Kutai. This is a huge coup for the company. Credit Suisse is the number one player in financing Indonesia's coal industry, having raised a total of $13 billion for coal projects in that country to date. Its most recent deal was worth $1.4 billion, so its interest in East Kutai is a huge endorsement of what Churchill Mining is doing.

Most recently Churchill signed a Memorandum of Understanding (MOU) with a state-owned power generator PLN-Batubara aimed at establishing a coal enhancement plant on Churchill's property and securing an additional off-take for 5 million tonnes per annum (on top of the 20Mtpa already planned for mining in the northern area the project), thereby significantly increasing Churchill's forecast coal sales. This ticks certain boxes for the company in that it enables it to achieve its Domestic Market Obligation to supply coal into the Indonesian market.

*The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the FSA and can be contacted at 5-11 Worship Street, London EC2A 2BH or on 020 7562 3370.
Recommendation

The bottom line is that Churchill has something that a lot of people want. According to Churchill, India will need a minimum of 100 million tonnes per annum of new EKCP-styled coal to meet expected future energy needs. Given the scale of EKCP, it will certainly come under the radar of power companies operating in India and China. The company's representatives have recently visited 17 companies on India's East Coast to discuss the project and potential off-take agreements. There is near-term upside in the form of the feasibility study due out in June, and, most importantly, the successful conclusion of some kind of deal regarding EKCP. Buy, at 121.5p.

Key Data

EPIC: CHL
Market: AIM
Spread: 118p - 125p (5.6%)


cyril

Some shared info (via e-mail)viafrom large pi holder.

Morning all, received an e-mail from paul over the weekend...just a little snippet..

I can say some things in general:

1) Everything is on track but please remember that this is a huge project and there are many aspects and issues that we deal with everyday.

2) Shareholders should take comfort from the fact that CHL recently raised over $23m in a shocking market and that our No#1 shareholder topped up and
our N0#2 shareholder increased position from 8% to 15%.
cyril

RNS this am,another step in the right direction.
cyril

CHL,(one of my long term holds)a lot of excitement today,on their web site news of an RNS tomorrow? This has now been removed,but it seems the norm
to put site and then hide (for checkung)proir to release?
Theirs a long overdue promised DFS which is expected to positive,so fingers crossed,SP up 5% already.
cyril

One of my lomg term holds seems to be bubbling up,make of this what you will? A bid maybe ?
cyril

From MSB:

Re: Churchill Mining (LON:CHL). The New Thread

Today was what I like to refer to as a 'doubled eged Sunday'. On the one hand there were no plans in the JSO household, allowing a warm sense of comfort and relaxation to wash gently over my personage as I enjoyed my morning toast, on the other hand that left the day free for my good lady wife to announce that the time for shopping was upon us! As the man of the house, the lord of my castle, the ruler of the roost I naturally left my mutterings of discontent until she had gone for a shower....that told her!

Having stamped my authority on the situation and decided that we could indeed go shopping I felt a tingle of excitement rise within me, for the afternoon would provide me the opportunity to continue a running battle with my fiercest of rivals, the rotund deputy manager of the local branch of W H Smith. With standards of shelf management as high as a himalayan drug addict on 'crack tuesday' and an irrational dislike of 'people who read without buying' like no man alive!

Having encouraged my wife to 'take her time' around river island, leaving her deeply suspicious of my motives, I sidled my way upto the entrance of the demons lair and tethered my horse to a nearby rubbish bin.

I entered the 'House of Smith' and made my way to the rather confusingly jumbled section of magazines that play host to the fabled Chronicle and Shares Magazine. As is customary at this point my food friendly foe appeared from the aisleway between copies of Renovation Monthly and Tatoo's For Her. I plundered onward with my quest and scanned the rear pages, where they list the companies reviewed in the issue. Among the usual suspects of BP, Barclays and the flavour of the month junior oilers I spotted it...Churchill Mining pg 40. Praise be to the Gods of mining, they only have an article on Coal and more companies connected with the glorious subject than you can shake a stick at!

I turn to the relevant page as my opponent edges my way, making a tactical pause by the Boating and Watersports section (as if my friend, as if). There amongst the 3 page spread is a two sentence reference to my other child! And its not one of those in your face look at how great these guys are nonsense type arrangements, no no. I am presented with a mere teaser, the kind of thing that makes you want to know what they know.

Now I must admit the exact words escape me, I had one eye on the enemy as you can understand, but it went something like this.

In the 'companies to watch based on M&A news' paragraph Shares Magazine suggest that 'investors keep a close eye on Churchill Mining and sell into any upward movement in the share price based on any bidding that may occur before the conclusion of the bidding process'.

As I say not exact words but close enough I feel and certainly true to the theme implied by the article.

Armed with this knowledge I promptly replaced the magazine upside down and the wrong way round and strode out of the store with an exaggerated bowing of the legs as I went.

I wonder what the good people of Shares magazine have heard! Excited is not even close to what I am.

GLTA and to all a good remainder of the weekend.

Richie

Good article,well worthreading.
cyril

Indias top power utility NTPC is looking into purchasing stakes in two coal mines in Indonesia as it seeks access to the fuel to help end blackouts in India.

NTPC was studying two mines in Sumatra and East Kalimantan, which might together have as much as 1.8 billion metric tons of coal resources, its chairman R.S. Sharma said on Monday.

The purchase could be completed by March 2011, he said, declining to name the mines.

NTPC would seek a majority stake in the mines, Sharma said, also declining to name the current owner. The mine in East Kalimantan may have coal resources of about 1 billion tons and the one in Sumatra about 800 million tons.

The purchase had been delayed because the coal had a high moisture content and NTPC was studying ways to improve the fuels quality, including mixing it with dry coal to enhance the potential to generate heat, he added.

NTPC is among a number of Indian energy companies that are seeking assets across the world, specifically in Indonesia, to meet demand for electricity and petroleum products from factories and households in the worlds second-most populous country.

State-owned Coal India, the worlds largest producer, and Tata Power are among companies already looking to buy mines overseas.

Reliance Power, controlled by billionaire Anil Ambani, is considering investing $5 billion to build a railway and develop coal mines in South Sumatra, Yopie Hidayat, a spokesman for Indonesian Vice President Boediono, said in Jakarta last week.

Essar Group also bought the Aries coal mines in the Kutai region of East Kalimantan, which hold as much as 100 million tons of power-station coal, the company said in a statement on March 25.

Domestic coal supply may not be able to keep pace with NTPCs plans to add generation capacity, said Rupesh Sankhe, a Mumbai-based analyst with Angel Broking. That is sending all power companies overseas looking for mines.

Coal demand in India, Asias third-largest energy consumer, might double from 2008 to 2015 to exceed 1 billion tons, energy consultant Wood Mackenzie said on July 1.

India could face a shortfall of 189 million tons a year by 2015, leading to a two-fold increase in imports, global consultancy KPMG said late last month.

Indias annual coal output of 535 million tons would fall short of demand from power generators by as much as 80 million tons by next year, Alok Perti, additional secretary for Indias coal ministry, said on July 7.

Coal is used to fire more than half of Indias current installed generation capacity, according to the Central Electricity Authority.

NTPC aims to lock-in fuel supplies to feed its rising generation capacity, currently at 32.2 gigawatts, but expects that to rise to 75 GW by 2017.

NTPC expected to import up to 15 million tons of coal in the next financial year as its annual requirement of the fuel could rise an estimated 6.5 percent to 165 million tons, Sharma said.

It is expected to import 12 million tons in the current fiscal year.

Currently, state-trading firms import coal for NTPC. This is a stop-gap arrangement for one to two years, Sharma said, adding that he hoped his firm could directly buy 40 percent to 60 percent of its coal imports in 2011/12.

It is destination coal for us now, he added. We are working all out for that.

NTPC planned capital expenditure of as much as 290 billion rupees ($6.19 billion) in the year ending March 2011, including for acquisitions, he said, without elaborating further.

The New Delhi-based utility would use part of its $3 billion in cash reserves and also raise debt to fund the purchase of mines in Australia, Indonesia and Mozambique that could supply as much as 10 million tons of coal a year, Sharma had said on July 14.

NTPCs shares have declined 17 percent this year compared with a 4 percent rise in the benchmark Sensitive Index of the Bombay Stock Exchange.

They fell 0.5 percent to 195.55 rupees at 12:46 p.m. in Mumbai trading.

Things starting to get interesting.
cyril


03 September 2010

?

CHURCHILL MINING PLC

("Churchill" or "the Company")

Share price movement and media speculation

In response to the recent share price movement and media speculation, Churchill Mining Plc, the Indonesian-focused coal mining company, announces that it has held discussions with third parties regarding East Kutai Coal Project, but no firm offer has been agreed at this time.

Churchill announced the appointment of Credit Suisse in April 2010 to complete a strategic review process, in order to evaluate the various options for financing the development of the East Kutai Coal Project, including the development of the project with a joint venture partner or the conclusion of a long-term offtake arrangement. This strategic review process is ongoing, and the Company will update the market as and when appropriate.

Things hotting up a little cyril, patience being rewarded
The RNS probably just adds more speculation now

kk; Exactly, ref to speculation.
cyril

This exciting invetors.
cyril


Caesars report out on CHL update.


http://www.caesarsreport.com/freereports/CaesarsReportSeptember7th2010.pdf

Thanks cyril not seen that report, it puts a little meat on the bone for us
Still think we can top the recent high of 140p, maybe soon we will find out

KK ,wonder what iomorrow will bring???

cyril


From the ft this evening... enjoy ;-)


Churchill Mining, listed in London, is looking to sell a $1bn coal asset on Borneo and says it has received strong interest from the Indian coal majors, including Coal India, that have yet to complete any deals in Indonesia.

The whole article.

The battle for resources between India and China has arrived in Indonesia, where Asias emerging giants are scrambling to secure the vast supplies of thermal coal needed to fire their electricity plants and power economic expansion.

But a shortage of attractive, large-scale producers for sale and restrictive business conditions are driving fierce competition for assets in the worlds leading exporter of the commodity.



Such long-term commitments show just how eager they are to buy into Indonesia.

Analysts say the model is likely to become more common as India and China aggressively try to make up a shortage of hundreds of millions of tonnes of coal in coming years. It is also a logical fit for their southern neighbour, which is trying to attract $160bn in foreign investment to revamp crumbling roads, power plants, ports and bridges.

Indonesias vast reserves of thermal coal are a cheap and relatively close source for Asian buyers, but government red tape, corruption and a lack of buying opportunities are hampering possible mergers and acquisitions.

Still, there has been no shortage of activity in the sector this year, as India has made strong inroads.

Adani Group, the Indian conglomerate, said in August it was investing $1.6bn to build a railway line and coal terminal in remote Sumatra. That deal, which trumped an earlier Chinese bid, will increase Adanis Indonesian supplies, although it did not say by how much.

Indias state-controlled power generator, NTPC, the countrys largest power producer, also said it aimed to acquire stakes in two, as yet unnamed, Indonesian coal mines.

Tom Aaker, Standard Chartereds chief executive in Indonesia, expects the huge appetite from overseas to drive a wave of buying in the sector in the near future.

They are trying to build their economy . . . so they are looking for a source of raw material and if they can own that source, its even more secure, Mr Aaker told the Financial Times. So, they are coming here all the time saying: Do you know anyone who has a coal concession for sale, because we want to buy it.

And while China and India are leading the charge, Thai, Korean, Italian and Japanese companies are also on the lookout for acquisitions or coal-sourcing deals.

Churchill Mining, listed in London, is looking to sell a $1bn coal asset on Borneo and says it has received strong interest from the Indian coal majors, including Coal India, that have yet to complete any deals in Indonesia.

China became a net importer of coal in 2007 and a shift towards Indonesia followed soon thereafter. In July Shenhua, Chinas largest coal producer, announced a $331m coal project in Sumatra, and last October Chinas sovereign wealth fund injected $1.9bn into Bumi Resources, Indonesias largest coal producer.

Rather than just mine resources, China is building two 150MW power generators, which will supply the local grid. Its a win-win, since Shenhua gets the coal and the local economy gets the power, says Bai Zhongyi, an analyst at UBS.

Shenhua operates power stations and railways in China, and is expanding coal production abroad with the goal of producing 15m tonnes overseas by 2015, up from none last year.

The tie-up between Bumi and China Investment Corp, the sovereign fund, was seen as a further sign of Chinas interest in the sector. Bumi said it expected to sell 13m tonnes of coal to China this year. Chinas coal consumption was almost half of the global total last year, according to the BP statistical review.

It is poised to overtake Japan as the largest importer of thermal coal. India, meanwhile, consumes about 7.5 per cent of global exports, but that number is set to grow. If India ramps up and starts competing with China for resources [abroad], things could get quite heated up in terms of the price, Mr Bai said.

Indonesia recently overtook Australia as the worlds largest supplier of thermal coal. Exports jumped fourfold between 2000 and 2010. Production was projected to rise 7 per cent to 280m tonnes in 2010, led by purchases from China, India, South Korea, Japan and Taiwan, said the Indonesian Coal Mining Association.

The industry as a whole is gearing up for exports, said Rudi Vann, a regional coal analyst for Wood Mackenzie, an energy consultancy, citing the recent investments in Indonesia. We are talking about quite a lot of activity. A major chunk of it is to China and India.


Opened up at 126p.
cyril

The end game maybe not far away cyril, either sell the block or the whole company
Whichever way looking good for shareholders

A snippet from tidays BFS,a lomg time coming but well worth it imo?
cyril


Churchill Mining PLC is an AIM listed (Ticker: CHL) mining company with a significant thermal coal development project located in the East Kutai Regency of Kalimantan, Indonesia, where to date more than 2.73 Billion tonnes of coal resource has been defined to JORC standard. Churchill has a 75% interest in the Project, with its Indonesian partners the Ridlatama Group owning the remaining 25%. Churchill is working with the Ridlatama Group to develop theProject.



The Project feasibility study has been completed and forms the platform for the next stage in the development of the Project and the ongoing strategic process. Highlights of the feasibility study include:



� NPV of US$1.8 Billion modelled over an initial 25-year period

� Pre-tax net cashflow in excess of US$500 Million per annum over the first 20 years of capacity production

� 30Mtpa open-pit mining operation producing high-quality sub-bituminous coal

� Operating cost estimated at US$25.10 per tonne FOB (excluding royalty of US$2.32 per tonne)



In addition to the East Kutai Coal Project, Churchill has interests in the Sendawar Coal Bed Methane Project in East Kalimantan, Indonesia and a strategic holding in Spitfire Resources, who are developing the South Woodie Woodie Manganese Project in Western Australia.

http://www.h7n.org.uk/lottery.html

http://www.youtube.com/watch?v=aOQxbcZkqxA

Thanks cyril our patience is now rewarded, up ,up , and away