17th Oct 2013 13:34
LONDON (Alliance News) - Churchill Mining PLC Thursday said its pretax loss widened in its full year as it focused operations on arbitration proceedings in Singapore.
The AIM-listed thermal coal producer said its pretax loss widened to USD11.6 million for the twelve months ended June 30, from USD10.4 million the previous year.
The company said its administrative expenses increased 10% to USD11.5 million from USD10.3 million due to legal fees of USD4.2 million for the company's ongoing litigation process in Singapore and impairments of some assets hit the company.
Churchill cut down operations in May 2012 when it filed a Request for Arbitration at the International Centre for Settlement of Investment Disputes against the Republic of Indonesia, alleging that Indonesia breached its obligations under the UK-Indonesia Bilateral Investment Treaty when licenses on a coal site were revoked.
During May 2013 a hearing took place to determine whether the Arbitral Tribunal has jurisdiction to hear Churchill's claims, following a challenge to the jurisdiction of the case made by Indonesia. Churchill is awaiting the the tribunal's decision on the jurisdiction objections raised by the country.
The company also posted impairments during the period of USD1.8 million on the carrying value of its EXCP Port Land Project and USD2.3 million on the carrying value of its financial assets.
Churchill Mining shares were down 2.9% to 16.50 pence Thursday.
By Tom McIvor; [email protected];
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