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

News! 33 metre seam discovered!

Click HERE

A nice tick up late in the day, with news due anyday, perhaps a leak?
cyril

">

RELEASE SCHEDULE OF JORC UPDATE

Churchill Mining (AIM:CHL) wishes to advise of a delay to the release of the next JORC resource update from the Company that was due this week.

The delay is due to the heavy workload of the independent coal experts preparing the report. The resource update is now expected to be released by the end of next week and will be followed by an update regarding the Feasibility Study Programme.

Seems positive mentioning a Feasablity study?

First Glance Update Post Analysts’ Visit Price target: 350p

Oil & Gas 8 May 2012

Full Value Dependent on Kurdistan's access to Export Revenues

There is little doubt that GKP's Shaikan is a world class asset, which we believe
will provide further upgrades to the Company's net reserves, as will the other
discoveries such as Sheik Ali that have excellent potential. Add to this the fact
that security fears have been overdone, and that the region is largely trouble
free, the outstanding issues relate to access to exports, or more specifically,
export revenues. We believe that the risks are limited to timing, and that our
target price of 350p (upgraded following this visit) is an adequate reflection
of these risks. Consequently, we are reiterating our BUY recommendation.
• Reserves upgrades will be the short-term catalyst: Recent well tests have resulted in
a greater understanding of the Shaikan asset. Firstly, the recent news from Shaikan-6,
which was designed to test the how far Shaikan extends to the south, failed to intersect
the oil water contact in the main Jurassic horizons. Management believes that the field
extends for up to 5km further downdip, which will substantially increase reserves.
Second, following flow tests and pressure studies, there is a belief that the Jurassic
horizons are contiguous with that observed in the Kand-1 well 40km to the south, which
was found to be water wet with excellent pressure support, providing for a natural water
drive mechanism; a revised CPR will be released in June or July.
• Production ramp-up will be achieved; it’s all about the timing: GKP is currently
producing ~6m bpd from its current facilities, which is sold domestically for $50/bbl. The
commissioning of EWT-1 will step up production to 20m bpd by Q3’12, while a further
upgrade to 60m bpd could be achieved by 2Q’13 via the commissioning of EWT-2
(1Q’12), and EWT-3 (2Q’12); trucking (the current field export method) can cope with up
to 70m bpd as ably demonstrated by Genel on Tak-Tak. We believe that the
management will be able to achieve these plans, with influences external to the
Company the only barrier to delivering on this timing. However, given our observations,
the support shown by all levels in Kursistan for this development, from the
Governmental to local, we believe that management's timeline is achievable.
• Operational team fit for purpose: What this trip highlighted is the distance that the
Company has travelled in a relatively short time. With a growing “in-country” operations
team, the focus is still very much on cost containment and the staged development
approach maximises the cash flow from operations while counter balancing it with
appropriate risk management. In this respect, the Company continues to impress, and
this ethos is reflected at all levels, which becomes apparent with the close inspection
that this visit has afforded.
• Full value to be unlocked by Kurdistan's Access to its Export Revenues: Currently,
Kurdistan and Baghdad are locked in a battle for Kuristan's share of the export
revenues. Until such times as Kurdistan achieves access to the export revenues accruing
to it from its production, GKP's production will be limited to revenues generated by
sales into the domestic market. We estimate that the domestic market amounts to
between 175 - 200m bpd, and would not support the full development scenarios of all
of the fields currently discovered and appraised. Consequently, the Company will not
derive the full value of its assets until such times as there is an effective route to market.
• A Target Price of 350p a Fair Reflection of the Risks: Following this visit, we are have
adjusted our target price to 350p, which we believe is a better reflection of the risks
associated with the portfolio. Further upgrades cannot be ruled out, and as a result, we
are reiterating our BUY recommendation. We have condensed a lot of information into
this note, but we will be providing a more in-depth note on GKP, incorporating all of the
thinking behind today's update as well as following the release of the Company's CPR.
cyril

HUGE resource increase announced today!

CLICK HERE

Great news and the SP is responding.
cyril

Evening Standard, London,


AIM-listed Churchill Mining added 7 1/2p to 66 1/2p after it said it had discovered three times as much coal at the East Kutai site in Indonesia than it had estimated. It thinks it can dig out 1.4 billion tonnes, compared to the 500 million previously suggested, and hopes to start production by the end of 2009.

guardian.co.uk

On Aim, Churchill Mining climbed 7.5p to 66.5p on news that its East Kutai Coal project in Indonesia had reached 1.4bn tonnes of thermal coal, well ahead of its 500m target for 2008.

Blue Oar analyst Alison Stent said: "This is incredible news for Churchill. The 1.4bn tonne resource has been defined from drilling over only 20% of the total target area suggesting substantial further upside."

Times Online

Tiddler to watch

Shares in Churchill Mining, the AIM-listed coalminer, soared 7p, or nearly 13 per cent, to 66p after the group announced a huge resource upgrade at its East Kutai coal project in Indonesia to 1.4 billion tonnes, from 20 per cent of its target area. The company has the largest resource figure of all the AIM coal stocks

Also tipped in the Telegraph and Express, so could see some more blue, come monday?
cyril

From Blue Oar,seem's to have helped the SP?


Mining: Churchill Mining (CHL.L) ; 59p CORPORATE
1.4bn tonnes JORC compliant coal resource at East Kutai
Churchill Mining has today released an updated JORC compliant resource
statement for their 75% owned East Kutai coal project of 1.4bn tonnes (up
from 250Mt previously)
The 1.4bn tonne resource substantially exceeds the companys year end
target of 500Mt, and with drilling complete on only 20% of the total target
area there is still significant upside potential from here
440Mt fall into the measured and indicated categories, suggesting that the
company may beat its year end minimum reserve target of 150Mt by a
substantial margin
The company is targeting first production by the end of 2009 with a
development decision in early 2009 following completion of the current
feasibility study
cyril

As jimmy cricket sadi, "and theirs more"?

Blue Oar view: This is incredible news for Churchill. The 1.4bn tonne resource has
been defined from drilling over only 20% of the total target area suggesting
substantial further upside, and with 440Mt in the measured and indicated categories
we believe that Churchill is well placed to significantly exceed their reserve target of
150Mt by year end. If we assume that the company is able to define a 300Mt reserve
by year end, this would suggest a value per Churchill share of 180p-360p based on
$1-2 per tonne of resource in ground

And with more to come?
cyril

You never know cyril ; )

This won't help in the short term?


BEIJING (Reuters) - Coal is piling up in China's top shipping harbor for the fuel, the official Xinhua agency said, as manufacturing weakness and slackening power demand undermine a market that was badly overstretched this summer.

Coal supplies in the northern port had reached 8.44 million tonnes by September 16, at least 3 million tonnes above normal levels, the report published late on Saturday said, citing an official there who declined to be named.

Qinhuangdao only has storage capacity for 10 million tonnes, but for two weeks a surplus has mounted at a rate of around 100,000 tonnes per day and other ports face similar problems.

In Guangzhou, there are 2.2 million tonnes of stored coal, compared with just 1.7 million in late June, Xinhua said.

Trading volume there is also down since July to just around 3 million tonnes, from 4 million tonnes a month in early summer.

Power plants now have enough fuel to cover an average 15 days of demand, following a summer when many were forced to close for lack of supplies or because soaring costs meant they could not make a profit by generating, Xinhua quoted Xie Juchen, head of the fuel section at the China Electricity Council, saying.

This caused crippling summer shortages that were the worst since 2004, with demand outstripping supply by more than 40 gigawatts.

But China's manufacturing sector contracted in July and August, contributing to a nationwide deceleration in coal and power demand, particularly in the south where rising labor costs and an appreciating currency are hurting exporters.

Around Beijing, factory closures to clear the air during the Olympics in August also dented demand for coal and power.

Analysts do not expect a repeat of the most severe coal shortages, though power supplies may still be tight this winter, as the government encourages small mines closed over safety concerns to reopen and some new rail routes come into action.
cyril

Churchill Mining Joins The Billion Tonne Club On East Kutai In Indonesia

http://www.minesite.com/nc/minews/singlenews/article/churchill-mining-joins-the-billion-tonne-club-on-east-kutai-in-indonesia/1.html

Coal mining is all about big numbers. Unlike gold mining you cant start small and work your way up because consumers want to have a reliable, large tonnage feed for many years. In contrast to gold, of course, there is not a ready market for odd lots of coal. Paul Mazak, managing director of Churchill Mining, understands that better than anyone. So when he decided to take an interest in coal mining he went to a part of the world that is renowned for its large coal deposits and started off with a target of finding a resource of 500 million tonnes of thermal coal. His companys exploration programme at East Kutai on the island of Kalimantan in Indonesia has subsequently over-delivered on that promise by declaring a resource of 1.412 billion tonnes in early September. Thats several months ahead of the target too. Not only is it a large tonnage but it is defined to JORC standards by SMG Consultants, an expat firm of Australian consultants based in Indonesia.
A large resource like that is a very fine thing, but a lot of work has yet to be done. The most important is the upgrade of the 972 million tonnes that currently lie in the inferred category. A key element in defining that tonnage to a higher standard is better topographical data, and that is now being done by laser aerial survey. In terms of the resource itself Paul says there is now no point in expanding the resource any further so all four rigs have been transferred to the site where the first pit will be dug. He already knows where it will be. An intensive drilling programme here is intended to raise the status of this material into a mining reserve which will form part of the feasibility study that is due for completion by the year end. Pauls ambition is to have about one third of the resource defined to a reserve standard by that time.

A lot of work needs to be done for the feasibility study but Paul already knows the coal has a good calorific value with a low ash content of 4%, so it doesnt need washing. A sulphur level of 1% should make it a sought-after product to blend with other coals to reduce sulphur emissions.

Although coal mining is capital intensive Paul is keen to fast track development to get cash flow as early as possible. In the early years the plan is to truck the coal to the coast then use barges to transfer it to Cape-sized vessels lying offshore. While that would be a relatively quick route to production it is not very low cost. By comparison with other mines Paul estimates about US$32 a tonne FOB. Even so, current and projected prices could make that viable, and year one production of two million tonnes in 2010 has been pencilled. Production should rise to four million tonnes the next year. The real ambition, though, is to take output up to 15 then 20 million tonnes a year in years three and four by installing a conveyor and an onshore loading facility for Cape-sized vessels. That could bring costs down by a long way to just US$13 a tonne. Before that all happens though Paul will be looking to bring in a joint venture partner to help with those capital costs. And someone who is a long-term coal consumer would be ideal.
cyril

Double post again.
cyril

News out today, good progress report and looking a great long term investment?
aimho
cyril

New article just published CLICK HERE

Someones is happy to accumilate.

http://www.investegate.co.uk/Article.aspx?id=200810201038071931G

I do like this company very much and i'm tempted to increase my holdings, i see
it as a no brainer in a normal market and will prove to be a real bargain once the market returns to normallity?
aimho
cyril

What makes feel investing in this company (with 1/2 years time in mind)?

Thermal plants face coal shortage
More than 60 per cent of Indias coal-based power plants are running with less than a weeks consumption of coal, threatening to affect power availability at a time when Indias peak deficit is hovering at around 15 per cent. The Central Electricity Authority (CEA), the apex power sector planning body, said in its latest report that 50 out of 81 thermal power plants in India are having stocks less than 7 days of consumption in September, the latest period for which data are available. This is the highest number of plants having stocks below the critical level in recent times.
The CEA report cited non-receipt of coal, inadequate linkage and higher generation, as well as law and order problems as reasons for the current situation.

The situation is getting worse, said Minister of State for Power Jairam Ramesh, referring to supply of coal to the power stations. In some cases stock level has gone down to even two to three days, he added.

At present, India has 81 coal-based thermal power stations which are largely fed by coal supplied by Coal India Ltd (CIL), the country

Some more for the positives?

Thermal plants face coal shortage

More than 60 per cent of Indias coal-based power plants are running with less than a weeks consumption of coal, threatening to affect power availability at a time when Indias peak deficit is hovering at around 15 per cent. The Central Electricity Authority (CEA), the apex power sector planning body, said in its latest report that 50 out of 81 thermal power plants in India are having stocks less than 7 days of consumption in September, the latest period for which data are available. This is the highest number of plants having stocks below the critical level in recent times.
The CEA report cited non-receipt of coal, inadequate linkage and higher generation, as well as law and order problems as reasons for the current situation.

The situation is getting worse, said Minister of State for Power Jairam Ramesh, referring to supply of coal to the power stations. In some cases stock level has gone down to even two to three days, he added.

At present, India has 81 coal-based thermal power stations which are largely fed by coal supplied by Coal India Ltd (CIL), the countrys largest coal production utility, and its subsidiaries. India is planning to add about 78,700 Mw of power capacity in the current Plan period (2007-2012). A greater chunk of this capacity 50,570 Mw or 64 per cent is going to come from coal-based thermal power stations.

However, the coal ministry says that its allotting coal in excess of what was being asked. We have given 101.6 per cent of coal than what we committed to the Planning Commission. Whatever shortfall is there in availability of coal, it is due to non-import of coal scheduled by the utilities. If they are not importing it, what can we do? asked Santosh Bagrodia, minister of state for coal, adding that no power station in the country has lost production due to unavailability of coal.

However, experts of the industry believe that this worsening situation of coal availability at thermal power stations might lead to serious concerns for the power industry in the future.

Coal sector is moving at a much slower pace than the power sector. The supply crisis will result in a major hit to future power projects because of a negative impact on the supply situation. The impact will be more on private power developers who have been assigned projects but have not yet linked fuel supply, said Kuljit Singh, partner, Ernst & Young.

Singh also added that in future the developers would think twice before endorsing a project. If the supply is not sufficient for current projects, how will it ensure availability of coal for future projects? Singh asked.

The number of power stations running on critical level of coal stocks has seen a gradual increase since the beginning of the current year. In April, 24 stations were reported by the CEA to have critical stocks of coal. The number has now gone up to 50.

The list of power stations running at critical stocks of coal include 14 coal-based thermal power stations in the northern region, 10 stations in west, nine in south and 17 in the eastern region.

The Business Standard - 21-Oct-08
cyril

UPDATE ON FAST-TRACK TO PRODUCTION

New transport solution for Fast-Track production identified which may considerably decrease Capex requirements.

Increase in initial tonnage target in first year up to 3 Mt and second year up to 5 Mt.

Coal upgrading has potential to lift operational pre-tax profit by US$31 per tonne.

Churchill Mining Plc, (AIM:CHL) the Indonesia focused mining company with a JORC resource of 1.4 billion tonnes of thermal coal at its East Kutai Coal Project ('EKCP'), is pleased to announce significant progress on the transport options it is finalising in order to Fast-Track the project to production in Q4 2009.

New independent studies verified by the Company have concluded that a combination of road and river barge transport is now possible and should be the most capital cost-effective and quickest initial access method to transport the coal from site for the Fast-Track production scenario.

The new studies involved Side Scan Sonar, LIDAR aerial survey and a condition survey of the river. This concluded that access to the Senyiur River, which is a tributary of the Mahakam River south of the EKCP, can be used to transport the coal down to the Mahakam River for transhipment and onto multi-user coal ports at the coast. This access route was previously thought to be restricted. The newly surveyed Senyiur River route could enable shipping of up to 7 Mtpa of coal, starting with delivery of up to 3 Mtpa, which is the increased target for the first full year of production.

Currently, a new multi-user coal barge port is being built on the Senyiur River by a third party. Churchill management is in discussions with the company constructing this river barge port to gain access to the facility, which would result in a significant reduction in capital expenditure for Churchill. The Company is also in discussions with the owners of current and proposed multi-user coal ports on the coast, which if access is gained, will also add significant further reductions to Churchill's project capital costs.

The Company continues its detailed work on a number of options for the 20 mtpa Full-Production scenario, to transport the coal to a new dedicated port, including a conveyor system.

Infill drilling continues on site and is on target to upgrade much of the 1.42 Bt of coal resource to 'mineable' by the end of 2008.

Churchill recently launched a review into coal treatment processes that have the potential to move the energy content of EKCP's thermal coal from the current range of kcal 4700 - 5600 ADB (Air Dried Basis) to over kcal 6000. This would enable the Company to achieve higher pricing terms for its thermal coal.

Churchill's examination of processes to upgrade the EKCP thermal coal has determined that the coal sale price assumptions in the Company's business model could be increased from US$50 per tonne to US$84 per tonne (in the current price environment) at an operational cost of US$3 per tonne.

Churchill Managing Director Paul Mazak commented:

'The various elements of the EKCP are fitting together in a way that should significantly increase the bottom line, especially by upgrading at least part of the coal production to achieve a higher value per tonne. Churchill's technical team is in the process of finalising their assessment of the available upgrading technologies and it is envisaged that at least one of these plants will be on-stream during the first year of production.
cyril

Pala buying more,now above 21%
cyril

I only wish i could buy more cyril to bring my average down a little, but funds tight at the moment

Pala look to be in a no loose situation, whatever their plan is