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

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

21 April, 2009
Churchill Mining Plc
("Churchill") or ("the Company")
Churchill Selected as Potential Coal Supplier to PT Cirebon Electric Power
Churchill Mining (AIM: CHL) is pleased to announce its fully owned subsidiary,
PT Indonesia Coal Development (ICD), has been selected as a prospective thermal
coal supplier to Indonesia's PT Cirebon Electric Power (CEP), which is building
a 660 megawatt power plant in West Java.

Churchill Mining, through its Indonesian incorporated subsidiary ICD is
developing the East Kutai Coal Project ("EKCP") in East Kalimantan which has a
JORC resource of 1.4 billion tonnes of thermal coal.

CEP has confirmed in a letter to PT Indonesia Coal Development that after
evaluating its coal specification, ICD has been registered on its list of
qualified coal suppliers for its power plant, currently under construction in
Cirebon, West Java.

PT Cirebon Electric Power is an independent power producer which is building a
660 megawatt coal fired power plant, due to start operations in 2011. Japan's
Marubeni Corporation holds a 32.5% stake in CEP.

CEP has previously indicated that the power plant will require up to 3 million
tons of coal per year.

The registration entitles ICD to bid to supply coal to the power plant when it
is required. In order to remain qualified to bid for the supply contract, ICD
will provide data on an ongoing basis.
Under a 30 year contract, the Cirebon power plant will supply electricity to the
state electricity firm Perusahaan Listrik Negara (PLN).

Churchill Mining CEO, Paul Mazak commented:
"It is a significant milestone for Churchill to have been selected as a
potential supplier of coal to PT Cirebon Electric Power's West Java power plant
when it is commissioned in 2011. With such a large and growing resource at our
East Kutai Coal Project, Churchill Mining is more than capable of meeting the
considerable demand that the plant requires. This option is one of many that
Churchill Mining is exploring as it moves forward to bringing the project into
production."

http://tech.dir.groups.yahoo.com/group/simplycomputers2/messages/212198


cyril

Some heavy buying this am, a 100,000 and 250,000 making 416,000all buys. Add a 100,000 buy yesterday and it appears someones accumilating ahead of overdue significant reserve update (8 weeks have passed)?
aimho
cyril

Really high volume today, would suggest not far off??
cyril

CHL is breaking out, with news of signicant resource/reserve update expected next week?
cyril

Very pleased with todays trading, looks good for next week. Looking for a min of 60p but hoping for 70p+.
cyril

Last chance to get in on the cheap??
Resource up from 1.4 to 3.18 BILLION/TONNES.
Looking to increase RESERVES from 100m/tonnes to 500MILLION/TONNES
JORC WITHIN A MONTH?
cyril

Disappointing SP on this stock after such a excellent resource update,looks like the market is waiting for the offical Reserves along with news of the 3 interested parties which does make sense. Sold my short term holdings at a healthy 25%+ profit and will reconsider early next month.
cyril

To raise 5m at 50p which is almost the asking price speaks volumes for this project imv?
cyril

Churchill Mining Looks Well Set Up To Bring The East Kutai Coal Project Into Production Within The Next Couple Of Years

By Alastair Ford

Its not really surprising that Churchill Minings most recent fundraising was oversubscribed. The interest was such that the company chose to increase the amount it was raising by 25 per cent, from 4 million to 5 million. And given that 98 per cent of the new money has come from existing shareholders, its clear that Churchill is certainly one story the market has not yet grown tired of. Were a long way from the 2005 2p listing price, and even the share price peaks of around 70p, hit at the height of the boom in 2008, seem once again to be within reach.
The company's strength is derived almost entirely from progress at the East Kutai coal project in Indonesia. East Kutai just keeps getting bigger and bigger, and although the coal price has come off a bit since last year, even at todays prices the studies show that East Kutai will make, according to managing director Paul Mazak, a substantial profit. With a project of such quality Churchill can afford to pick and choose, at least to some extent, how it raises its funds.

But the strong shareholder support shown in the recent raising wasnt just a one-off. In Pala Investments, a Swiss-based private investment vehicle with US$1 billion under management, Churchill has what Paul Mazak calls a very substantial cornerstone investor. Indeed, a brief glance at the CV of Pala chief Jan Castro makes for very interesting reading indeed. Mr Castro was formerly in charge of investments and corporate affairs for Mechel, one of Russias largest coal miners. Should Churchill choose to fund East Kutai all on its own, support from Pala will be the key, and that support will allow Churchill to sidestep the onerous terms that banks and markets have lately been offering to anyone without the most cast iron of funding guarantees.

Still, in any case, although some further funding is a racing certainty, its unlikely that Churchill will eventually choose to develop East Kutai entirely on its own. Its not a question of expertise or skills, says Paul Mazak. The company has that, or at least access to it, in spades. Its a question of off-take. The future buyer of East Kutais coal will also be required to put up some of the development funding. Its as simple as that.

Paul Mazak says that the company is currently talking to more than one possible JV partner, and although the exact nature and timing of any future deal isnt yet clear, talks are highly advanced. You can see why they would be. The time is surely near, given that the full feasibility study on East Kutai is already 20 per cent complete, and that with over 3.18 billion tonnes of coal already in the bag, exploration has now all but ceased. Some development work is actually well advanced stockpile testing and trail mining has begun, a pit has been designed and work on the preliminary mine plan is underway. More importantly from the point of view of de-risking such a project, exploitation licences under the new Indonesian mining law are all in place, as are environmental and haulage permits.

So from an off-take users perspective the time to buy in is surely drawing near: as Churchill gradually ticks all the boxes, dots all the is and crosses all the ts, the price will surely only go higher. And as Paul Mazak says, Palas support means that an off-take deal isnt make or break for this particular project as it might be for some others, so playing a waiting game wont put the squeeze on anyone. What such a partner would be getting is a slice of a potential 20 million tonnes per year operation, due, on current form, to be up and running by the end of 2012, and one which enjoys plenty of support from the government both at the local and national levels. Its an attractive proposition, especially since theres still a lot of untapped value at East Kutai, even if exploration has stopped for now. The next step will be the delivery of the feasibility study, but in the meantime Paul Mazak will be back in London before too long. Hopefully well see him at one of our Minesite forums, where hell have an opportunity to update in person his many supporters in London.

cyril

Tiddler to watch

Churchill Mining rose p to 51p after raising 5 million in a share placing to help to advance the AIM-listed groups flagship East Kutai coal project in Indonesia. The fundraising was at only a slight discount, 50p a share, and was conducted by Blue Oar. The deal is the brokers eighth

Hit 55p earlier this am but a little profit taking?
cyril

Thanks for all the updates cyril, your time and effort is appreciated in keeping us informed