Churchill Mining

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Churchill Mining listed on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2005 and is committed to growing shareholder value by becoming a leading minerals explorer and future miner at a time of accelerating commodities demand. Churchill's business plan is to leverage off the strong growth in demand currently being experienced in China and India for commodities which are used as feedstock in the ever expanding energy industries. Churchill Mining’s strategy is to explore and develop mining projects that will leverage off the current appetite for raw commodities which are used in burgeoning steel and energy industries in growing economies. Churchill’s main focus is its highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia. Churchill has also acquired the Sendawar CBM Project in East Kalimantan, Indonesia, which is in an highly prospective area for coal bed methane.

Churchill Mining makes Caesars Report’s top 5 mining stocks for 2010 list

Monday, January 11, 2010
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Caesars Report unveiled its top 25 mining stocks for the year 2010, ranking Indonesia operating coal miner Churchill Mining (AIM: CHL) second due to its exposure to the fast growing Chinese and Indian markets that are characterised by a high demand for raw materials and “huge deposit,” as the company currently has 700 Mt (million tones) in reserves and another 2 billion in resources.

The company’s growth plan quickly accelerated in 2007-2008 with the discovery of a very large thermal coal deposit at the East Kutai project, in which Churchill has a 75% interest. To date more than 3.18 billion tones of coal has been drilled to JORC standard with the company focusing its drilling effort to turn the resource into a mining reserve and scope out both short-term and long-term production scenarios.

Other bullish points in the report included the large exploration upside as just 30% of Churchill’s land holding in East Kutai has been drilled along with a short payback period, low cash cost backed by Pala investments, an expected increase in coal prices and the project’s proximity to consumers in Indonesia, India and China, where 1,100 new coal-fired power stations are currently being built.

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Also, three parties are currently interested in buying the company with another four expressing interest in joint venturing (JV) it, which could potentially cause a bidding war or a buy-out, JV or offtake agreement announcement.

The only bearish point was the unavailability of a capital expenditure estimate, which is, however, expected to be released at the end of the current month.

The stock’s current price stands at 100 pence, which the Caesars Report called a “ridiculously strong undervaluation.”

A recently completed feasibility study for the East Kutai project confirmed a preferred 20 million tonne per annum production rate. The company anticipates project construction work to start in 2010 and take two years to complete.


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Additional Information

Market:AIM
Sector:General Mining - Coal
EPIC:CHL
Latest Price: 124.00p  (0.00%)
52-week High:140.00p
52-week Low:56.50p
Market Cap:119.94M

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