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

Andy thier seems to be plenty of interest in the coal sector at present, GCM waking up, offers for PRL, CDN and now this which might give an idea of what CHL might be worth?

Xstrata rights issue and acquisition of Prodeco Thermal Coal business for $2bn from Glencore. (Glencore have call option to buy it back at $2.25bn)
so it looks like EV of $8/tonne
or $200 per tonne of current production


The Prodeco Business comprises Glencores Colombian high-grade thermal coal mining
operations and associated infrastructure. It consists of two open pit coal mining operations (the
Calenturitas and La Jagua complexes), export port facilities and a 39.8% share in a railway.
As at 1 September 2008 the Prodeco Business had a saleable reserve base in excess of 250 Mt.
The Prodeco Business is currently the third largest producer of export thermal coal in Colombia,
in 2008 producing 9 Mt of export thermal coal predominantly for the European and United
States power generation markets. It plans to increase export thermal coal production to 17 Mtpa
by 2013.
The consolidated gross assets of the Prodeco Business as at 31 October 2008 were $1,049
million and as at 31 December 2007 were $872 million. In the 10-month period ended 31
October 2008, the Prodeco Business recorded consolidated profit of $41 million and, in the 12
months ended 31 December 2007, the Prodeco Business recorded consolidated profit of $46
million. The Prodeco Business financial information presented above has been extracted without
material adjustment from the unaudited interim accounts prepared under IFRS as at and for the
10-month period ended 31 October 2008 and audited accounts prepared under IFRS as at and
for the 12 months ended 31 December 2007.

cyril

Been on my watchlist for a while, not yet in, what are the prospects for CHL or is the sp increase solely due to take-over rumours?

Andysmith try reading post 22 for a quick insight, well worth reading all the 50+ posts if your serious about investing?
cyril

4 February, 2009

CHURCHILL MINING PLC

('Churchill' or 'the Company')

Update on East Kutai Coal Project

Response to recent share price rally

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'), would like to provide an update on developments at EKCP in response to enquiries from shareholders and analysts regarding the recent rally in the Company's share price and other market speculation regarding financing.

JV and Financing Update

With regards to the finalisation of a joint venture or financing of Churchill's East Kutai Coal Project, the Company wishes to state the following:

1) Churchill has moved from general discussions to formal Confidentiality Agreements (CA's) and
due diligence with three well financed international companies wishing to invest or JV in a coal
project the size of the EKCP in Indonesia. Whilst the companies concerned are considering all
aspects of the project's coal production potential, the great appeal of Churchill's EKCP is the
possibility for large annual production over the longer term.

2) A full due diligence process is being carried out by the three companies. It comprises of legal,
engineering, geological and economic examination of the site by various consultants (including
consultants based in Indonesia) engaged by these companies. A number of alternative haulage
methods and routes to port are also being examined by each company to suit their needs.

3) Whilst, the due diligence exercises are progressing well, Churchill wishes to advise that no final
deal has been completed at this point and there can be no guarantee that a deal with any of
these companies will be reached.

Project Update

Recent adverse weather conditions and heavy rainfall in the Kalimantan area has delayed reserve drilling and laser surveying at the EKCP.

The reserve drilling target has been expanded to included smaller tonnages of higher calorific areas in the north east of the EKCP's main area. Subject to the weather improving, Churchill expects to complete reserve drilling in the next six weeks.

Not only does the Company expect the overall size of the JORC resource, currently sitting at 1.4 billion tonnes of thermal coal, to increase substantially, but also that reported reserves will be substantially ahead of the original 100Mt management expectations.

Churchill continues to examine the engineering design, costings and work on 'Fast Track' and 'Full Production' scenarios for the project.

In light of current coal prices, Churchill is also considering other development alternatives based upon the low stripping ratios of the project.

Further updates will be provided in due course.

ENDS

A very, very positive RNS.
cyril

Really surprised nobody seems to be interested, has risen an extra 10%+ since i last posted.
cyril

The Times

Churchill Mining gained 2p to 38p after the miner revealed that three companies were carrying out due diligence regarding investing or entering into a joint venture in its East Kutai coal project in Indonesia.

cyril

Not a good day for any news but full marks to the company for keeping us informed
Happy to hold



RNS Number : 3544O
Churchill Mining plc
05 March 2009



5 March, 2009




CHURCHILL MINING PLC

('Churchill' or 'the Company')




PROJECT UPDATE




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 provide an update on progress with haulage options and negotiations with potential project investors.




Haulage Options




As announced on 4 February 2009, three prospective investors have been carrying out full due diligence of the EKCP site. This process has also included studies of alternative haulage methods and routes to port.




Engineering teams are examining the preferred transport route which is a combination of haul road and conveyor system to the east of the project. Currently three surveys are being conducted around the project. A land survey of the eastern haul road and conveyor corridor, a land survey of the coastal port site and a hydrographic survey of the coastal port site.




The Regent of East Kutai has confirmed in writing his support for Churchill and its partners to develop the project and construct the haulage system and port. The Company is also pleased to confirm that The Regent has also instructed the Departments of Mining, Planning, Forestry and Environment to help Churchill and its partners to expedite the development of the East Kutai Coal Project.




Project and Financing Update




Following a delay due to adverse weather conditions, reserve drilling is expected to be completed in a fortnight. This will be followed by a laser aerial survey and the digging of a test pit and building of a coal stockpile for testing.




Negotiations are continuing with various prospective project finance investors, potential Joint-Venture partners and financiers. It is anticipated that the haulage methods will be tailored to fit the needs of the investor. Churchill wishes to advise that no final deal has been completed at this point and there can be no guarantee that a deal with any of these companies will be reached.




Further updates will be provided in due course.




ENDS

Quite a drop in the SP, most surprised with no idea why?

cyril

Looks like trying to shake some out cyril, but came back with some buying

Seen these tricks before, good news maybe not far away

Annual report out,some extracts from it.

At the time of writing the EKCP had a JORC compliant resource of 1.4 billion tonnes. However, infill drilling, along with airborne topographical surveys are expected to lift and improve the categorisation of much of this resource. It will also allow Churchill to publish its maiden mining reserve soon and it is expected this reserve number will be substantially ahead of management's initial 100 million tonne target

Given the drilling successes being achieved, Churchill moved to employ specialist engineering group PT Trans Tek Engineering (who are experienced in the Indonesian mining environment) to work with our internal team and begin mine design scoping work. A fillip to this has been a Heads of Agreement signed with renowned contractor Leighton.




The scoping work has and continues to look at variables such as mining parameters, potential haulage, and conveying routes, optimum production tonnages, port stockpile and handling facilities and power options.



Given the super-size scale of the EKCP project, Churchill has recognised the need for the introduction of one or more large partnering group/s to advance the project. Your company has consequently been actively engaging coal and energy-related groups with large balance sheets to examine potential entry points into this world-class enterprise.


To date our focus has been very much consumed by EKCP, however, Churchill's second Indonesian project - the Sendawar Coal Bed Methane Project - continues to be of interest given the increasing cost of energy inputs. The area sits in a coal basin with potential to host 5 trillion cubic feet of gas.

cyril

Annual report out,some extracts from it.

At the time of writing the EKCP had a JORC compliant resource of 1.4 billion tonnes. However, infill drilling, along with airborne topographical surveys are expected to lift and improve the categorisation of much of this resource. It will also allow Churchill to publish its maiden mining reserve soon and it is expected this reserve number will be substantially ahead of management's initial 100 million tonne target

Given the drilling successes being achieved, Churchill moved to employ specialist engineering group PT Trans Tek Engineering (who are experienced in the Indonesian mining environment) to work with our internal team and begin mine design scoping work. A fillip to this has been a Heads of Agreement signed with renowned contractor Leighton.




The scoping work has and continues to look at variables such as mining parameters, potential haulage, and conveying routes, optimum production tonnages, port stockpile and handling facilities and power options.



Given the super-size scale of the EKCP project, Churchill has recognised the need for the introduction of one or more large partnering group/s to advance the project. Your company has consequently been actively engaging coal and energy-related groups with large balance sheets to examine potential entry points into this world-class enterprise.


To date our focus has been very much consumed by EKCP, however, Churchill's second Indonesian project - the Sendawar Coal Bed Methane Project - continues to be of interest given the increasing cost of energy inputs. The area sits in a coal basin with potential to host 5 trillion cubic feet of gas.

cyril

That is why sp is falling...


Churchill Mining interim losses rise
MoneyAM


Churchill Mining posts an interim operating loss of $7.9m - up from $1m in 2007.

Losses attributable to equity shareholders for the six months to the end of December total $13.8m - up from $1.9m last time - and the firm had cash and cash equivalents of $8.3m compared with $19.9m previously.

Churchill said the East Kutai Coal Project in Kalimantan about 110km north of Sangatta is a discovery of world-class size.

Churchill acquired a 75% stake in the project during 2007 and since then has been aggressively drilling the area for sub-bituminous thermal coal.

Churchill said it been hit by the global credit crisis and the corresponding downturn in commodities prices and particularly the value of the pound sterling but remains optimistic about coal and its future in the mid-term.

Yes quite a high cash burn, but not to worried L/Term as proving up resources is an expensive business. Short term we might see a drop in the SP which in turn will
give a buying opportunity, with reserve update in the not to distant future being
discribed has "substantial" any pull back imv will make this a golden chance?
With at present a M/Cap of just 22.3m and cash from report of 6m our 100m/tonnes is valued at $0.22 a ton, simply rediculous and with an update somewhere whats expected $0.1/tonne. All that and a CBM with 5trillion cfgas,
makes this one very cheap company?
aimho
cyril

The following article give a good idea of the future demand for thermal coal,
Peabody are the largest private coal producer. They are in talks with PRL with a
time limit (31st march),so i'll also post their.

Generation Development
Operations

Coal is leading the largest build-out of baseload power in a generation. The U.S. Energy Information Administration projects world electricity demand to nearly double in the next quarter century, with coal-fueled generation accounting for approximately half of all new capacity. A new fleet of state-of-the-art coal plants is being developed across 19 U.S. states, and around the world more than 156,000 megawatts of clean coal-fueled generation are under construction, representing more than 500 million tons of coal use.

Renewed interest in coal-fueled power comes as U.S. generation capacity reserve margins are declining and reliability is weakening. Nuclear utilization is running at maximum capacity, hydropower is not expanding and is dependent on annual precipitation, and prices for imported natural gas continue to rise. With essentially no electricity plants developed during the past 20 years, America's energy system is running hard and new generation is needed to keep pace.

Only coal is equipped to close the gap between rising need and scarce and expensive resources. Coal averages less than half the delivered cost of natural gas, and the 10 states generating the most coal-fueled electricity enjoy power costs that are 40 percent lower than states relying on other fuels.

Peabody is exploring generation development opportunities in areas of the country where electricity demand is strong and where the company has access to land, water, transmission lines and low-cost coal. The company is continuing to progress on the permitting, transmission access agreements and contractor-related activities for two clean, low-cost mine-mouth generating plants in Kentucky and Illinois that would serve about 3 million families and businesses.

http://www.peabodyenergy.com/Operations/generationdevelopment.asp

cyril

An article from none other than the New York Times.

http://nytimes.com/2009/03/28/business/worldbusiness/28mine.html?ref=business

But all three transactions, each announced in the last few months, reveal Chinas desire to take advantage of the recent drop in commodities prices to secure its hold over natural resources".

In the half year report the company was keen to highligh that;

- Discussions with multiple coal industry-related parties regarding possible joint venture and project financing solutions for the EKCP

The report goes on to say;

...."It will also allow Churchill to publish its maiden mining reserve soon and it is expected this reserve number will be substantially ahead of management's initial 100 million tonne target".

"Given the super-size scale of the EKCP project, Churchill has recognised the need for the introduction of one or more large partnering group/s to advance the project. Your company has consequently been actively engaging coal and energy-related groups with large balance sheets to examine potential entry points into this world-class enterprise".

..."Quintessentially, we believe in the future of energy - and to this end coal is a cheap, known, abundant and safe energy fuel ideally suited for the populous developing Asian world".

Additionally lets not forget what the company said on the 4th Feb 09 as a response to the rally in the share price. Notice that not just one but THREE companies are doing DD on the project;

1) Churchill has moved from general discussions to formal Confidentiality Agreements (CA's) and due diligence with three well financed international companies wishing to invest or JV in a coal project the size of the EKCP in Indonesia. Whilst the companies concerned are considering all aspects of the project's coal production potential, the great appeal of Churchill's EKCP is the possibility for large annual production over the longer term.

2) A full due diligence process is being carried out by the three companies. It comprises of legal, engineering, geological and economic examination of the site by various consultants (including consultants based in Indonesia) engaged by these companies. A number of alternative haulage methods and routes to port are also being examined by each company to suit their needs.


cyril








cyril

Break out yesterday, with news of reserves update(which we are told is significant to the already 100mtonne already muted at but not official)
shortly to be announced, couple this with 3 interested JV's/ Financiers and
you can understand why i'm so keen on this stock.
aimho
cyril

CHL seems to be in breakout mode with M/Cap rising fom 14.7m to 17.6m in
the last few days. Theirs been a steady 10,000 trades taking place for sometime with 6 such trades this am, all 97,000 so far trades are buys.
Not really surprised as news can't be far off now and remember its "significant"
cyril

Cyril, whats your view on CFM they seem to be steadily climbing where others are static.

Baler;Sorry no real knowledge of the co., although i took a quick look, it seems that
it got hit by lack of demand.With the mine reopened and if the price of cobalt continues to rise then it'll be a good investment?
cyril

CHL is breaking out and will soon have a golden cross,its a shame that so little interest has been shown on for this company on this board.
Simple calc's cab explaib why i'm so positive,

SP = 43.25p(bought a lot cheaper) with 67.2 million shares in issue this gives a M/Cap of just 22.18m.

CHL have indicated they have reserves of 100m/tonnes of thermal coal?

They also tell us that the reserve update will be significantly higher,which is expected anyday now,
If we allow that figure to be 200m/tonnes and give a value of $1/tonne/reserve,
which is not OT then we have a $200m asset/1.49=134.22 of which CHL's share is 75% so = 100.67m.

Now lets be ultra conservative and say $0.5/tonne, still 50.33/67.2= 1.50p?
150/43.25= roughly 3.5 times the present SP.

3.5 Times for 20% of the total acreage tested.

It should also be mentioned that the resource is for "1.4 Billion tonnes of coal".

We have 3 interested (unsolictated) parties for either finance or JVing of the project?
First coal production expected later this year and a contract to supply 2 new power station, (at present being built and next door to the EK project)for 900,000tonnes of coal for 30years starting 2010.

Plus we have an excellent CBM asset which as been put on the backburner at
present.

The above are why i am a believer.
aimho
cyril