6th Nov 2013 13:01
LONDON (Alliance News) - Churchill Mining PLC Wednesday said that it is not aware of any reason behind its recent share price increase.
Shares in the thermal coal producer were up 36.7% during Wednesday afternoon, one of the biggest gainers on the AIM market. The shares have since retracted and are now trading at 17.5 pence per share, up 16.7%.
Last month the company said its pretax loss widened to USD11.6 million for the twelve months ended June 30, as it focused operations on arbitration proceedings in Singapore. It said that administrative expenses increased 10% 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 Mining 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 Mining said Wednesday that it is still awaiting the tribunal's decision on the jurisdiction objections raised by the country, as there is no fixed date for the tribunal to deliver its decision.
It said it is likely that the tribunal's decision will not be delivered for some weeks or months, although it will update shareholders when appropriate.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Cloudified Holdings Limited