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

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

kkeith thanks, i though i was posting to myself?
cyril

I always read your posts cyril even though i don't post much, been in these a long time over 2 years
Keep posting we may be under the radar at the moment but for how long given the work going on behind the scenes

Churchill are presenting at Proactiveinvestors london Forum on the 17th June!

These are really good evenings, set in a lovely hotel in the heart of Mayfair.

Listen to the presentations, then meet and chat with management informally over wine and canapes.

For FREE registration, click HERE


Nearest tube stations are Green Park (5 minutes walk), and Bond Street (8 minutes walk).

A date for your diary!

Thanks Andy i would think some good news coming, no use presenting if they have nothing new to say

kkeith2000,

Agreed. :-)

Creeping slowly but surely higher, 56p and up 10% over the last week. We're half way through the month referred to in the last RNS,so not to long now and as stated, unlikely to present without something new? With confirmation of 500m.tonne of reserves already expected,perhaps a JV?

A lot of repetative posts covering old ground,so i thought i try using some of the knowns and assunptions to break it up a little with some rough calcs.

Assumming the £8 a share offer was on the table and rejected by the BOD,who wouldn't recommend anything less than £10/share?

Now taking 850,000,000 shares at the time,then i come up with the various values.
Using 0/5%/10% aquired by the bidder at an average of £1.5/share.

At £8 = £6.8billion for 100%
5% 63750,000 + 6460,000,000 = £6523,750,000 total
10% 127500,000 + 6,120,000,000 = £6,247,500,000 total

100% at £10 =£8.5billion

Increase shares on offer to 900,000,000 and assume 20% holding to £2/share average and increase offer to £10.

£360,000,000 + 7200,000,000 = £7580,000,000 total

Increase the holdings to 30% at an average of £2.5/share.

675,000,000 + 6,300,000,000 = £6,975,000,000. total

Another top up for PALA bring their total to 29.36%,stopping just 0.64% short
from a compulsary take over offer?

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9315087/Afren-shareholders-revolt-over-pay-for-the-third-year-running.html

Ticking up nicely this am, within a week of the month for reserve confirmation. 2
presentations due shortly, 1stly Minesite on the 16th followed the next day by
the 2nd to Proactiveinvestors.
cyril

Say that the SP went up to 480p without a bid,how many would sell? Quite a few will at least heavily top slice,going by the rumblings of those who missed the last spike,therefore missing the real value that GKP represents?
If i understand correctly,any bid once formal has to be honoured,so jumping at the 1st offer is unwise imho.In fact hanging on to the end will bring the full rewaeds.

cyril,

Yes i am anticipating news before the Minesite presentation on Wednesday morning, and will be suprised if they haven't announced the JORC by then.

Thge Proactive evening has FML as well, and is booking well, so i would advise people that are considering attending booking whilst it's open, as they may close it soon.

Their last event set a new record, and this one will exceed that, and there is a limit on the room.

Is anyone here planning to attend?

Andy did you attend the presentation yesterday and are you planning to attend tonight
Am unable to go to either, a little far to travel for me
I wonder if it will the same the presentation at both

kkeith,

Yes it was!

Here is a recent interview with Paul Mazak, which you should find interesting!

Click HERE

Thanks andy
Nice move up this morning, can't be too long now for some new's

kkeith,

No he said around a month, but then confused things by mentioning "September", but he may have got his wires crossed as he was fired a barrage of questions by an inquisitive audience.

The powerpoint presentation from the evening can be viewed HERE!

Thanks again Andy
The part conveyor system looks impressive but at a cost
I do hope they get funding for that project

Somethings up, over 250,000 traded so far today compare that with just
above 12,000 monday. Is this the official news of resource/reserves we have been expecting?
cyril

Trading volumes are an indicator cyril, lets see what the rest of the week holds