19th Mar 2014 11:12
LONDON (Alliance News) - Churchill Mining PLC Wednesday said its pretax loss narrowed in its first half as the company cut its administrative costs significantly during the period.
The thermal coal producer said its pretax loss narrowed to USD904,000 for the six months ended December 31, 2013 from a loss of USD4.5 million the previous year, as its general administrative expenses fell 77% to USD1.1 million from USD4.7 million in 2012.
The company, which is yet to produce any revenues, said key costs for the period included USD470,000 in legal fees, related to its legal dispute in Indonesia, and a reduction in consulting, directors, staff and professional fees to USD290,000 from USD900,000 the previous year.
The 2012 results also were hit by a USD1.5 million impairment charge to the value of Churchill's investment in Australian Stock Exchange-listed Spitfire Resources Ltd.
The company noted that it has provided a preliminary estimate of its and Planet Mining Pty Ltd's damages regarding a case against the government of Indonesia, of not less than USD1.05 billion, but noted that the estimate remains under review towards the next stage of arbitration proceedings.
Churchill cut down operations in May 2012 when it filed a Request for Arbitration against the government of Indonesia, alleging that Indonesia breached its obligations under the UK-Indonesia Bilateral Investment Treaty when licenses on a coal site were revoked.
The government had claimed that it had not consented to International Centre for Settlement of Investment Disputes arbitration of the dispute and that even if the tribunal found that it had consented, the tribunal would lack jurisdiction because Churchill's investments fell outside the scope of protected investments under the respective Bilateral Investment Treaties.
In February the arbitral tribunal rejected Indonesia's jurisdictional challenges to the case, stating that the company could now pursue claims for damages against the Indonesian government.
Churchill Mining shares were up 2.1% to 24.25 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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