27th Mar 2009 07:00
Churchill Mining Plc
("Churchill" or the "Company")
Half Year Report
Ongoing exploration success at Churchill's East Kutai Coal Project ("EKCP") in Indonesia
Scoping and engineering work on possible mining and production scenarios at the EKCP
Discussions with multiple coal industry-related parties regarding possible joint venture and project financing solutions for the EKCP
Heads of agreement signed with renowned contractor PT Leighton Contractors Indonesia
Churchill's second Indonesian project - the Sendawar Coal Bed Methane Project - continues to be of interest given the increasing cost of energy inputs.
Cash resources totalling US$8.3 million at 31 December 2008
|
Churchill Mining Plc Managing Director - Paul G. Mazak +62 81510539186 / + 62 21 39832398 |
Blue Oar Securities Shane Gallwey +44(0)20 7448 4000 Olly Cairns +61 (0)8 6430 1631 |
Pelham PR Candice Sgroi +44 (0) 20 7743 6376 |
CHAIRMAN'S STATEMENT
Dear Shareholder,
I am pleased to present Churchill Mining Plc's ("Churchill" or the "Company") Half Year Report for the six months ended 31 December 2008 following an active and successful period.
The period has been highlighted by:
a) Ongoing exploration success at Churchill's East Kutai Coal Project (EKCP) in Indonesia;
b) Scoping work on possible mining and production scenarios at the EKCP with particular consideration given to various tonnage throughputs, future coal pricing and project capital cost inputs; and
c) Discussions with multiple coal industry-related parties regarding possible joint venture and project financing solutions for the EKCP.
As I noted at this juncture last year, the East Kutai Coal Project, located in Kalimantan approximately 110km north of Sangatta, is a discovery of world-class size. Churchill acquired a 75% stake in the project during 2007 and since then has been aggressively drilling the area for sub-bituminous thermal coal.
Using the field skills of our Jakarta-based consulting geologists at PT GMT Indonesia, coupled with feedback from our independent experts SMG Consultants, Churchill has now carried out more than 35,000 metres of drilling at the EKCP. This work has delineated a very large deposit containing a series of thick coal seams trending for more than 10 kilometres in a north/west to south/east direction. The bulk of this coal has been found in our PT Ridlatama Tambang Mineral concession, however, the surrounding tenements are still considered prospective and the EKCP deposit remains open in a variety of directions.
At the time of writing the EKCP had a JORC compliant resource of 1.4 billion tonnes. However, infill drilling, along with airborne topographical surveys are expected to lift and improve the categorisation of much of this resource. It will also allow Churchill to publish its maiden mining reserve soon and it is expected this reserve number will be substantially ahead of management's initial 100 million tonne target.
Given the drilling successes being achieved, Churchill moved to employ specialist engineering group PT Trans Tek Engineering (who are experienced in the Indonesian mining environment) to work with our internal team and begin mine design scoping work. A fillip to this has been a Heads of Agreement signed with renowned contractor Leighton.
The scoping work has and continues to look at variables such as mining parameters, potential haulage, and conveying routes, optimum production tonnages, port stockpile and handling facilities and power options.
Given the super-size scale of the EKCP project, Churchill has recognised the need for the introduction of one or more large partnering group/s to advance the project. Your company has consequently been actively engaging coal and energy-related groups with large balance sheets to examine potential entry points into this world-class enterprise.
To date our focus has been very much consumed by EKCP, however, Churchill's second Indonesian project - the Sendawar Coal Bed Methane Project - continues to be of interest given the increasing cost of energy inputs. The area sits in a coal basin with potential to host 5 trillion cubic feet of gas.
In September 2007 Churchill (70%) was granted a Coal Bed Methane license ("CBM License") for the project along with joint venture partner PT Ridlatama Mining Utama (30%) - the first of its kind to be granted by the Indonesian Government through direct appointment. The CBM license has given Churchill access to a substantial oil and gas database including seismic information and well details. This information continues to be interpreted under a joint evaluation study and we continue to talk to specialist CBM groups about potential involvement in this project.
It would be remiss of me not to comment briefly on world economic affairs and how they relate to Churchill. Quite simply, like everyone in the world of resources, we have been negatively impacted by the global credit crisis and the corresponding downturn in commodities prices and particularly the value of the pound sterling. This slowdown in economic growth has most certainly temporarily depressed world thermal coal pricing and in this regard Indonesia's coal industry has not been immune. However, your Board remains optimistic about coal and its future in the mid-term.
Quintessentially, we believe in the future of energy - and to this end coal is a cheap, known, abundant and safe energy fuel ideally suited for the populous developing Asian world.
Your Board is also mindful that EKCP, as it grows to world-class size, could also represent more than a just another coal deposit but a future strategic energy bank for developing nations. For this reason we remain very upbeat about the future amid the maelstrom of bad economic news.
In this financial reporting period the Company's functional currency changed from Pounds Sterling to United States Dollars. Concurrent with this change in functional currency, the Group adopted the United States Dollar as its presentation currency.
The loss for the half year was US$13,820,827 or (20.61c) per Ordinary Share. During the period the company has impaired the original carrying cost for the Sendawar CBM project for the amount of US$5,715,365. This amount reflects the original cost of the initial KP exploration licenses, prior to the granting of the new joint evaluation license by direct appointment in September 2007. During the half year the Company expended and capitalised a further US$220,614 under the joint evaluation license.
In addition the Company also incurred a loss on fair value of its investment in Spitfire Resources Limited for the amount of US$2,649,504 which is a reflection of the decline in world markets and the quoted prices of Spitfire shares and options on the Australian Securities Exchange (ASX). The Company has also been negatively impacted in its Sterling cash holdings by the unprecedented and significant decline in the Pound Sterling against the United States Dollar and booked a foreign exchange loss of US$3,347,532 in the half year.
During the period the company invested a further US$3.25 million in the ongoing exploration and pre-development activities at the East Kutai Coal Project reflecting the ramp up in exploration and drilling which has resulted in the release of the increased JORC compliant resource at the project.
The balance of operating expenditure is in line with the Company's stage of pre-development as it seeks the possible joint venture and project financing solutions to advance the project towards production. The Company has cash resources totalling US$8,325,147 at 31 December 2008.
In summary, Churchill remains committed to its core value of creating shareholder wealth. We believe despite the torrid economic climate your company is maturing rapidly and has never been at a more exciting juncture since listing in 2005.
On behalf of the Board I would like thank you, the Shareholders, for your support of the company's activities and I look forward to your ongoing support as we embark on another exciting chapter in Churchill's growth story in this next half year.
David F Quinlivan
Chairman
INDEPENDENT REVIEW REPORT TO CHURCHILL MINING PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2008 which comprises the unaudited Group Income Statement, Group Balance Sheet, Group Cash Flow Statement, and Group Statement of Changes in Shareholders Equity and related notes.
We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' responsibilities
The half-yearly report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2008 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors55 Baker St London W1U 7EU
27th March 2009
GROUP INCOME STATEMENT (UNAUDITED) FOR THE 6 MONTHS ENDING 31 DECEMBER 2008
|
6 months to |
6 months to |
Year ended |
||
|
31 Dec 2008 |
31 Dec 2007 |
30 June 2008 |
||
|
Unaudited |
Unaudited |
Audited & Restated |
||
|
Note |
US$ |
US$ |
US$ |
|
|
Continuing Operations |
||||
|
Revenue |
- |
- |
- |
|
|
Cost of Sales |
- |
- |
- |
|
|
Gross Profit /(Loss) |
- |
- |
- |
|
|
Other operating income |
71,672 |
84,274 |
- |
|
|
Other administrative expenses |
(2,177,649) |
(1,110,339) |
(2,564,934) |
|
|
Impairment of exploration assets |
(5,715,365) |
- |
(904,757) |
|
|
Total administrative expenses |
(7,893,014) |
(1,110,339) |
(3,469,691) |
|
|
Loss from operations |
(7,821,342) |
(1,026,065) |
(3,469,691) |
|
|
Finance income |
246,084 |
108,666 |
513,381 |
|
|
Finance expenses - interest |
(1,235) |
(2,344) |
(4,298) |
|
|
Finance expenses - foreign exchange losses |
(3,347,532) |
(13,462) |
(22,329) |
|
|
Total finance expenses |
(3,348,767) |
(15,806) |
(26,627) |
|
|
Fair value gain on investments in associate |
- |
- |
840,937 |
|
|
Fair value impairment on investments in associate |
(2,649,504) |
- |
- |
|
|
Deemed (loss)/profit on disposal of associate |
(100,669) |
- |
62,536 |
|
|
Share of operating loss of associate |
(146,629) |
(10,590) |
(207,566) |
|
|
Loss on ordinary activities before taxation |
(13,820,827) |
(943,795) |
(2,287,030) |
|
|
Income tax expense |
5 |
- |
- |
- |
|
Loss on ordinary activities after taxation from continuing operations |
(13,820,827) |
(943,795) |
(2,287,030) |
|
|
Profit from discontinued operations |
- |
2,909,890 |
3,081,567 |
|
|
(Loss)/Profit for the period attributable to equity shareholders of the parent |
(13,820,827) |
1,966,095 |
794,537 |
|
|
Earnings per share for (loss)/profit attributable to the ordinary equity holders of the company |
||||
|
(Loss)/Profit per Share (cents) |
||||
|
Basic |
3 |
(20.61c) |
4.21c |
1.42c |
|
Diluted |
(20.61c) |
3.41c |
1.24c |
|
|
Earnings per share for (loss)/profit from continuing operations attributable to the ordinary equity holders of the company |
||||
|
(Loss) per Share (cents) |
||||
|
Basic |
3 |
(20.61c) |
(2.03c) |
(4.07c) |
|
Diluted |
(20.61c) |
(2.03c) |
(4.07c) |
Restatement - The comparatives for the year ended 30 June 2008 have been restated to reclassify $22,329 of foreign exchange losses from administrative expenses to finance expenses as this more accurately reflects the nature of the loss.
GROUP BALANCE SHEET (UNAUDITED) AS AT 31 DECEMBER 2008
|
6 months to |
6 months to |
Year ended |
|||||
|
31 Dec 2008 |
31 Dec 2007 |
30 June 2008 |
|||||
|
Unaudited |
Unaudited |
Audited |
|||||
|
US$ |
US$ |
US$ |
|||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
8,325,147 |
19,891,837 |
16,123,957 |
||||
|
Trade and other receivables |
676,210 |
1,126,813 |
576,838 |
||||
|
Total current assets |
9,001,357 |
21,018,650 |
16,700,795 |
||||
|
Non-current assets |
|||||||
|
Property, Plant and Equipment |
236,385 |
92,569 |
240,356 |
||||
|
Intangible assets |
11,210,093 |
11,056,343 |
13,560,718 |
||||
|
Other financial assets |
86,338 |
- |
921,028 |
||||
|
Investments in associates |
1,036,051 |
3,956,621 |
4,199,040 |
||||
|
Total non-current assets |
12,568,867 |
15,105,533 |
18,921,142 |
||||
|
TOTAL ASSETS |
21,570,224 |
36,124,183 |
35,621,937 |
||||
|
LIABILITIES |
|||||||
|
Current Liabilities |
|||||||
|
Trade and other payables |
369,201 |
499,901 |
512,563 |
||||
|
Loans and Borrowings |
6,313 |
13,163 |
14,551 |
||||
|
Total current liabilities |
375,514 |
513,064 |
527,114 |
||||
|
Non-current Liabilities |
|||||||
|
Borrowings |
7,950 |
16,556 |
9,342 |
||||
|
Total non-current liabilities |
7,950 |
16,556 |
9,342 |
||||
|
TOTAL LIABILITIES |
383,464 |
529,620 |
536,456 |
||||
|
NET ASSETS |
21,186,760 |
35,594,563 |
35,085,481 |
||||
|
CAPITAL & RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY |
|||||||
|
Share Capital |
1,339,528 |
1,301,284 |
1,315,952 |
||||
|
Share premium reserve |
31,152,953 |
30,670,343 |
30,502,794 |
||||
|
Merger reserve |
6,827,772 |
6,827,772 |
6,827,772 |
||||
|
Other reserves |
1,553,863 |
1,490,136 |
2,305,492 |
||||
|
Retained Losses |
(19,687,356) |
(4,694,972) |
(5,866,529) |
||||
|
TOTAL EQUITY |
21,186,760 |
35,594,563 |
35,085,481 |
||||
STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE 6 MONTHS ENDING 31 DECEMBER 2008
|
Consolidated |
Share |
Share |
Merger |
Retained |
Other Reserves |
Total |
|
|
Capital |
Premium |
Reserve |
Losses |
Equity |
|||
|
Reserve |
Foreign |
Equity |
|||||
|
exchange |
settled share |
||||||
|
options |
|||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
|
|
Changes in equity for period to 30 June 2008 |
|||||||
|
Balance at 1 July 2007 |
888,707 |
12,360,524 |
6,827,772 |
(6,661,066) |
(62,991) |
1,517,127 |
14,870,073 |
|
Profit for the year |
- |
- |
- |
794,537 |
- |
- |
794,537 |
|
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
315,335 |
- |
315,335 |
|
Total recognised income and expenses for the year |
- |
- |
- |
794,537 |
315,335 |
- |
1,109,872 |
|
Recognition of share based payments |
- |
- |
- |
- |
- |
122,370 |
122,370 |
|
Issue of shares |
427,245 |
19,932,772 |
- |
- |
- |
- |
20,360,017 |
|
Share issue expenses |
- |
(1,790,502) |
- |
- |
- |
413,651 |
(1,376,851) |
|
Balance at 30 June 2008 |
1,315,952 |
30,502,794 |
6,827,772 |
(5,866,529) |
252,344 |
2,053,148 |
35,085,481 |
|
Changes in equity for period to 31 December 2008 |
|||||||
|
Balance at 1 July 2008 |
1,315,952 |
30,502,794 |
6,827,772 |
(5,866,529) |
252,344 |
2,053,148 |
35,085,481 |
|
Loss for the half year |
- |
- |
- |
(13,820,827) |
- |
- |
(13,820,827) |
|
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
(1,125,133) |
- |
(1,125,133) |
|
Total recognised income and expenses for the half year |
- |
- |
- |
(13,820,827) |
(1,125,133) |
- |
(14,945,960) |
|
Recognition of share based payments |
- |
- |
- |
- |
- |
373,504 |
373,504 |
|
Issue of shares |
23,576 |
650,159 |
- |
- |
- |
- |
673,735 |
|
Balance at 31 December 2008 |
1,339,528 |
31,152,953 |
6,827,772 |
(19,687,356) |
(872,789) |
2,426,652 |
21,186,760 |
GROUP CASH FLOW STATEMENT (UNAUDITED) FOR THE 6 MONTHS ENDING 31 DECEMBER 2008
|
6 months to |
6 months to |
Year ended |
||||||
|
31 Dec 2008 |
31 Dec 2007 |
30 June 2008 |
||||||
|
Unaudited |
Unaudited |
Audited |
||||||
|
US$ |
US$ |
US$ |
||||||
|
Cash flows from operating activities |
4 |
(1,993,812) |
(1,503,615) |
(2,642,597) |
||||
|
Interest paid |
(1,235) |
(2,344) |
(4,298) |
|||||
|
Net cash flows from operating activities |
(1,995,047) |
(1,505,959) |
(2,646,895) |
|||||
|
Cash flows from investing activities |
||||||||
|
Finance Income |
258,063 |
87,083 |
537,101 |
|||||
|
Payments for property, plant & equipment |
(50,261) |
(5,058) |
(97,941) |
|||||
|
Payments for exploration assets |
- |
(746,071) |
(2,333,599) |
|||||
|
Payments for exploration and evaluation |
(3,361,610) |
(922,794) |
(2,931,953) |
|||||
|
Acquisition of options in associate |
- |
- |
(80,089) |
|||||
|
Cash flows from investing activities |
(3,153,808) |
(1,586,840) |
(4,906,481) |
|||||
|
Cash flows from financing activities |
||||||||
|
Proceeds from issue of share capital |
673,734 |
19,558,721 |
20,360,017 |
|||||
|
Share issue expenses paid |
- |
(1,394,508) |
(1,376,850) |
|||||
|
Proceeds from borrowings |
- |
- |
1,860 |
|||||
|
Repayments of borrowings |
(9,631) |
(7,743) |
(15,429) |
|||||
|
Cash flows from financing activities |
664,103 |
18,156,470 |
18,969,598 |
|||||
|
Net (decrease)/increase in cash and cash equivalents |
(4,484,752) |
15,063,671 |
11,416,222 |
|||||
|
Cash and cash equivalents at start of the period/year |
16,123,957 |
4,814,704 |
4,814,703 |
|||||
|
Effect of foreign exchange rate differences |
(3,314,058) |
13,462 |
(106,968) |
|||||
|
Cash and cash equivalents at end of period/year |
8,325,147 |
19,891,837 |
16,123,957 |
|||||
NOTES TO THE INTERIM REPORT
1. BASIS OF PREPARATION
The accounts of the Group of the 6 months ended 31 December 2008 were approved by the Board on 27 March 2009. The interim results have not been audited, but were the subject of an independent review carried out by the Company's auditors, BDO Stoy Hayward LLP. The unaudited results do not constitute statutory accounts of the Company or the Group. These accounts have been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of Churchill Mining PLC for the year ending 30 June 2009. The statutory accounts for the year ended 30 June 2008 have been filed with the registrar of Companies. The auditor's report on those accounts was unqualified, did not include any references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
The consolidated financial statements incorporate the results of Churchill Mining PLC and its subsidiary undertakings as at 31 December 2008, using the acquisition method of accounting. The corresponding amounts are for the year ended 30 June 2008 and the 6 month period ended 31 December 2007.
Effective 1 July 2008, the Company's functional currency changed from pounds sterling to the US dollar ("US$"). This change was made due to significant balances being denominated in US$ and the directors considered the USD$ to most faithfully represent the economic effects of the underlying transactions, events and conditions in the Company. Concurrent with this change in functional currency, the Group adopted the US$ as its presentation currency.
In accordance with International Accounting Standards, this change in functional currency has been accounted for prospectively by translating all items using the pounds sterling/US$ exchange spot rate on that date, being US$1.99351:£1. In the parent company accounts the resulting translated amounts for non monetary items at this date have been treated as their historic cost. Additionally the comparatives for the period ended 31 December 2007 and 30 June 2008 have been translated at this rate.
For the purposes of changing the Group's presentation currency, the comparatives for the period ended 31 December 2007 were translated using pound sterling/US$ exchange spot rate on that date, being US$1.99351:£1 while the comparatives for the period ended 30 June 2008 have been translated at the rate of US$1.99351:£1. There is no material difference between the average exchange rate for the period and the translation rate used.
2. DIVIDENDS
The Directors do not recommend the payment of a dividend for the period.
3. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of Ordinary Shares outstanding during the period.
In order to calculate diluted earnings per share, the weighted average number of Ordinary Shares in issue is adjusted to assume conversion of all dilutive potential Ordinary Shares according to IAS 33. Dilutive potential Ordinary Shares include share options granted to employees and Directors where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company's Ordinary Shares during the period.
|
6 months to |
6 months to |
Year ended |
|
|
31 Dec 2008 |
31 Dec 2007 |
30 June 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
US$ |
US$ |
US$ |
|
|
(Loss)/Profit attributable to ordinary shareholders |
(13,820,827) |
1,966,095 |
794,537 |
|
Number of Shares |
Number of Shares |
Number of Shares |
|
|
Weighted average number of shares used in the calculation of basic (loss)/earnings per share |
67,067,713 |
46,667,432 |
56,118,847 |
|
Effect of dilutive share options |
6,064,379 |
10,983,027 |
7,832,055 |
|
Weighted average number of shares used in the calculation of diluted (loss)/earnings per share |
73,132,092 |
57,650,459 |
63,950,902 |
|
Basic (loss)/earnings per share |
(20.61c) |
4.21c |
1.42c |
|
Diluted (loss)/earnings per share |
(20.61c) |
3.41c |
1.24c |
|
Earnings per share (Continuing Operations) |
|||
|
Loss from continuing operations |
(13,820,827) |
(943,795) |
(2,287,030) |
|
Basic loss per share (cents) |
(20.61c) |
(2.03c) |
(4.07c) |
|
Diluted loss per share (cents) |
(20.61c) |
(2.03c) |
(4.07c) |
|
Earnings per share (Discontinued Operations) |
|||
|
Profit from discontinued operations |
- |
2,909,890 |
3,081,567 |
|
Basic earnings per share (cents) |
- |
6.24c |
5.49c |
|
Diluted earnings per share (cents) |
- |
5.05c |
4.82c |
For continuing operations the effect of all potential ordinary shares arising from the exercise of options going forward is considered to be anti-dilutive.
The total number of shares in issue at 31 December 2008 amounted to 67,202,714. The total amount of options held over the shares at 31 December 2008 was 15,477,286. These options are exercisable at prices that range between 12p (8.3c) and 80p (55.3c).
For the prior periods, the effect of 1,000,000 potential ordinary shares at 31 December 2007, and 3,850,000 potential ordinary shares at 30 June 2008 arising from the exercise of options is considered to be anti-dilutive and have been excluded from the above calculation.
4. NOTES TO THE CASH FLOW STATEMENT
|
6 months to |
6 months to |
Year ended |
|
|
31 Dec 2008 |
31 Dec 2007 |
30 June 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
US$ |
US$ |
US$ |
|
|
Reconciliation of (loss)/profit on ordinary activities after tax to cash from operating activities |
|||
|
(Loss)/Profit on ordinary activities after tax |
(13,820,827) |
1,966,095 |
794,537 |
|
Share option expense |
360,202 |
- |
122,370 |
|
Net exchange differences |
3,371,733 |
13,462 |
135,696 |
|
Depreciation |
27,243 |
6,361 |
27,479 |
|
Impairment expense |
5,715,365 |
- |
904,757 |
|
Interest revenue in investing activities |
(258,063) |
(87,082) |
(537,101) |
|
Loss/(Gain) on fair value of financial assets |
2,649,504 |
- |
(840,938) |
|
Gain on disposal of subsidiary |
- |
(3,202,209) |
(3,354,750) |
|
Deemed loss/(profit) on disposal of associate |
100,669 |
- |
(62,536) |
|
Share of associate loss |
146,629 |
10,590 |
207,566 |
|
Increase in accounts receivable |
(111,351) |
(129,809) |
(191,961) |
|
(Decrease)/Increase in creditors and accruals |
(174,916) |
(81,023) |
152,284 |
|
Cash flow from operating activities |
(1,993,812) |
(1,503,615) |
(2,642,597) |
5. TAXATION
No taxation has been provided due to losses in the period. No deferred tax asset has been recognised for past or current losses as the recoverability of any such assets is not probable in the foreseeable future.
6. POST BALANCE SHEET EVENTS
On 20 March 2009 Churchill announced that Mr Jan Castro was appointed as a Director of the Company.
7. FORWARD LOOKING STATEMENTS
This report contains certain forward looking statements, which include assumptions with respect to future plans, results and capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this report are made as at the date of this report
8. INTERIM REPORT
Copies of this interim report for the six months ended 31 December 2008 will be available from the offices of Churchill Mining PLC, Suite 1, 346 Barker Road, Subiaco, WA, 6008, and on the company's website www.churchillmining.com
Shareholder Information on the Internet
The Company maintains a website which allows access to certain useful Investor information. The website address is www.churchillmining.com
Related Shares:
Cloudified Holdings Limited