17th Nov 2015 11:56
LONDON (Alliance News) - Churchill Mining PLC on Tuesday said its pretax loss widened in its last financial year, as it continued to pursue its claim against the Republic of Indonesia.
The company's pretax loss widened to USD2.8 million in the year to June 30, compared with the USD2.5 million pretax loss in the prior financial year, as lower administrative expenses were more than offset by higher finance expenses. No operating income was recorded.
The company's USD1.32 billion claim, plus interest from July 2014, relates to "unlawful measures" taken by Indonesia against Churchill's interests in the East Kutai Coal Project.
"The unlawful measures taken by Indonesia include Indonesia's revocation (without justification, compensation or due process) of the mining licences that underpinned the EKCP, which were held by Churchill and its local partner in the project, the Ridlatama Group," the company said.
Churchill said that at the time the licences were revoked, it and its subsidiary Planet Mining Pty Ltd held a 75% interest in the EKCP.
In a separate issue, the company said that in July the London Stock Exchange alleged it had breached AIM rules 11 and 31 from August 2010 to March 2011.
"The company disputes the contentions raised by the Exchange and is defending this action. The GBP90,000 (USD144,000) provision made in the half yearly accounts in relation to any potential fine has been maintained as a matter of prudence however we note that the ultimate level of any fine may be materially higher or materially lower than the current provision," Churchill Mining Chairman David Quinlivan said in a statement.
Shares in Churchill Mining were down 1.2% at 17.05 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Cloudified Holdings Limited