Churchill Mining logo

CHL - Churchill Mining News Story

37.75p 0.0  0.0%

Last Trade - 05/12/16

Sector
Energy
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £n/a
Position in Universe th / 1826

Churchill Mining plc - Final Results - Part 2

Tue 17th November, 2015 11:15am
- Part 2: For the preceding part double click  ID:nRSQ9916Fa 

combination and at the
time of the transaction affects neither accounting or taxable profit; and 
 
·      Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the
reversal of the difference and it is probable that the difference will not reverse in the foreseeable future. 
 
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be
available against which the difference can be utilised. 
 
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the
reporting date and are expected to apply when the deferred tax liabilities/ (assets) are settled/ (recovered). 
 
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets
and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either: 
 
·        The same taxable Group company; or 
 
·        Different Group entities which intend either to settle current tax assets and liabilities on a net basis or to
realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of
deferred tax assets or liabilities are expected to be settled or recovered. 
 
Tax consolidation 
 
The Company and its 100% Australian controlled entities have formed a tax consolidation Group.  Members of the tax
consolidated Group intend to enter into a tax sharing arrangement which will allow for the allocation of income tax expense
to the wholly controlled entities on a pro rata basis.  The arrangement will provide for the allocation of income tax
liabilities between the entities should the head entity default on its tax payment obligations.  The head entity of the tax
consolidated Group is Churchill Mining Plc. 
 
Impairment of non-financial assets 
 
Impairment tests on intangible assets and tangible assets with indefinite useful economic lives are undertaken annually on
30 June or when a trigger for impairment is identified.  Where the carrying value of an asset exceeds its recoverable
amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly. 
 
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on
the asset's cash-generating unit (i.e. the lowest level Group of assets in which the asset belongs for which there are
separately identifiable cash flows). 
 
Impairment charges are included within total administration expenses in the statement of comprehensive income, except to
the extent that they reverse gains previously recognised in the statement of changes in equity. 
 
Segment reporting 
 
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker.  The chief operating decision maker, who is the Managing Director, under his delegated board authority, is
responsible for allocating resources and assessing performance of the operating segments. 
 
Investments 
 
In its separate financial statements, the Company recognises its investments in subsidiaries at cost inclusive of share
based payments less any provision for impairment. 
 
Cash and cash equivalents 
 
Cash comprises bank and cash deposits at variable interest rates. Any interest earned is accrued monthly and classified as
interest income. Cash equivalents comprise short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. 
 
Employee benefits 
 
Provision is made for the Company's liability for employee benefits arising from services rendered by employees. Employee
benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the
liability is settled.  Employee benefits payable later than one year have been measured at the present value of the
estimated future cash flows to be made for those benefits. 
 
Key sources of estimation uncertainty 
 
The Group makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on
historical experiences and other factors, including expectations of future events that are believed to be reasonable under
the circumstances. In the future, actual experience may deviate from these estimates and assumptions. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are as follows: 
 
·     While conducting an impairment review of its assets, the Group exercises judgement in making assumptions by
evaluating conditions and events specific to the Group that may be indicative of impairment triggers. Changes in these
estimates used can result in significant charges to the statement of comprehensive income ; and 
 
·     Employee, corporate advisory and consulting services received as well as the corresponding increase in equity, are
measured by reference to the fair value of the equity instruments at the date of grant, excluding the impact of any non
market vesting conditions. The fair value of share options is estimated by using an option pricing model, on the date of
grant based on certain assumptions. Those assumptions are described in the Notes to the accounts where more details,
including carrying values, are disclosed. 
 
NOTE 2:  FINANCE INCOME 
 
                                          Consolidated  
                                          2015          2014   
                                          $'000         $'000  
                                                               
 Finance income - foreign exchange gains  3             304    
 Finance income - Bank interest           1             2      
 Total finance income                     4             306    
 
 
NOTE 3:  LOSS FROM OPERATIONS 
 
                                                                                                                                       Consolidated         
                                                                                                                                       2015          2014     
                                                                                                                                       $'000         $'000    
 Loss before tax includes the following expense items:                                                                                                        
                                                                                                                                                              
 Administrative expenses                                                                                                                                      
 Audit & accounting and other fees                                                                                                     71            91       
 Consulting & professional fees                                                                                                        454           252      
 Legal fees                                                                                                                            1,176         1,462    
 VAT costs unrecovered                                                                                                                 3             6        
 Depreciation & amortisation                                                                                                           4             13       
 Employee salaries and benefits                                                                                                        286           336      
 Operating lease expense                                                                                                               51            60       
 Travel expenses                                                                                                                       67            45       
 Public relations consultancy                                                                                                          27            58       
 Other administrative costs                                                                                                            285           139      
 Equity settled share based payment expense                                                                                            130           249      
 Loss from sale of financial assets                                                                                                    -             46       
                                                                                                                                       2,554         2,757    
 Finance expenses                                                                                                                                             
 Foreign exchange losses                                                                                                               243           7        
                                                                                                                                                              
 Total administrative and finance expenses                                                                                             2,797         2,764    
                                                                                                                                                              
 During the year the following fees were paid or payable for services provided by the Auditors of the parent entity and subsidiaries:                
                                                                                                                                       Consolidated  
                                                                                                                                       2015          2014   
                                                                                                                                       $'000         $'000  
 Fees payable to the Company's Auditor for the audit of the Company's annual accounts                                                  30            31       
 Other services - interim review                                                                                                       6             10       
 Fees payable for the audit of the subsidiaries                                                                                        8             12       
 Total                                                                                                                                 44            53       
                                                                                                                                                                  
 
 
NOTE 4:  SALARIES 
 
                                                                                                Consolidated  
                                                                                                2015          2014   
                                                                                         Note   $'000         $'000  
                                                                                                                     
 Staff costs (including Directors' fees) comprise:                                                                   
 Employee salaries and benefits                                                                 69            144    
 Superannuation/pension costs                                                                   -             7      
 Directors' fees and benefits                                                                   218           186    
 Share-based payments                                                                    17     130           249    
                                                                                                417           586    
                                                                                                                     
                                                                                                Number        
 Average number of employees (including Directors)                                              9             11     
                                                                                                
                                                                                         2015   2014          
 Directors' remuneration and Other Key Management disclosures                            $'000  $'000         
                                                                                                              
 Directors' short term benefits                                                                               
 Directors' fees and benefits                                                            218    186           
 Consultancy fees/Salaries                                                               186    18            
 Sub-Total                                                                               404    204           
                                                                                                              
 Directors'  long  term benefits                                                                              
 Share based payments (options)                                                          96     171           
 Total Director Remuneration                                                             500    375           
                                                                                                              
 Other Key management short term benefits                                                                     
 Consultancy fees                                                                        212    209           
 Sub-Total                                                                               212    209           
                                                                                                              
 Key management long term benefits                                                                            
 Share based payments (options)                                                          28     39            
 Total Other Key Management Remuneration                                                 240    248           
                                                                                                              
 Total Director and Key Management Remuneration                                          740    623           
                                                                                                              
 The amounts set out above include emoluments for the highest paid Director as follows:                       
 Short term benefits                                                                     146    43            
 Long term benefits                                                                      36     57            
 Total                                                                                   182    100           
 
 
Key management consists of the Board of Directors and the Company Secretary/Chief Financial Officer. 
 
The Company provides Directors' & Officers' liability insurance at a cost of $25,069 (2014: $38,125). This cost is not
included in the above table. 
 
NOTE 5:  TAXATION ON LOSS FOR THE YEAR 
 
                                                                                                                                                                                                                                                                       
 Major components of income tax expense for the years ended 30 June 2015 and 2014 are:                                                                                                                                                               
 Current tax expense                                                                                                                                                                                                                                 -        -        
 Deferred tax expense                                                                                                                                                                                                                                -        -        
 Total tax expense                                                                                                                                                                                                                                   -        -        
                                                                                                                                                                                                                                                                       
 A reconciliation of income tax expense  applicable to accounting loss before income tax at the statutory income tax rate to income tax expense at the Company's effective income tax rate for the years ended 30 June 2015 and 2014 is as follows:  
 Accounting loss before income tax                                                                                                                                                                                                                   (2,793)  (2,450)  
                                                                                                                                                                                                                                                                       
 At the statutory income tax rate of 30%                                                                                                                                                                                                             (838)    (735)    
 Effects of:                                                                                                                                                                                                                                                           
 Non-deductible expenses                                                                                                                                                                                                                             514      566      
 Temporary differences and tax losses not brought to account as a deferred tax asset                                                                                                                                                                 330      158      
 Less:                                                                                                                                                                                                                                                                 
 Tax rate differential                                                                                                                                                                                                                               (6)      11       
 Income tax expense                                                                                                                                                                                                                                  -        -        
                                                                                                                                                                                                                                                                       
 Effective income tax rate of 0%                                                                                                                                                                                                                     0%       0%       
 
 
Effective income tax rate of 0% 
 
0% 
 
0% 
 
No amounts of deferred tax assets or liabilities have been charged / (credited) to the consolidated statement of
comprehensive income or reserves. The deductible temporary differences and Australian domestic tax losses being $21,347,000
(2014: $18,405,000) do not expire under current tax legislation. Indonesian tax losses expire after five years. Deferred
tax assets have not been recognised in respect of these items because at this point it is not probable that future taxable
profits will be available against which the Group can utilise the benefits of tax losses. The Group has not offset deferred
tax assets across different jurisdictions. Foreign tax losses in relation to the Indonesian subsidiary PT Indonesia Coal
Development expire as follows: 
 
 Financial Year  Expire (year)  $'000  
                                       
 2010/2011       2016           4,351  
 2011/2012       2017           3,680  
 2012/2013       2018           1,086  
 2013/2014       2019           277    
 *2014/2015      2020           140    
 
 
*Estimate based on the actual loss for 2014/2015 
 
NOTE 6:  LOSS PER SHARE 
 
                                                                                                                                                                                                                                                                     Consolidated  
                                                                                                                                                                                                                                                                     2015          2014         
                                                                                                                                                                                                                                                                     $'000         $'000        
                                                                                                                                                                                                                                                                                                
 Loss attributable to owners of the parent company                                                                                                                                                                                                                   (2,793)       (2,450)      
                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                     Number        
                                                                                                                                                                                                                                                                                                
 Weighted average number of shares used in the calculation of basic loss per share                                                                                                                                                                                   124,755,382   123,383,315  
                                                                                                                                                                                                                                                                     Cents         
                                                                                                                                                                                                                                                                                                
 Basic and diluted loss per share                                                                                                                                                                                                                                    (2.24c)       (1.99c)      
                                                                                                                                                                                                                                                                                   
 The effect of all potential ordinary shares arising from the exercise of options and warrants is considered to be anti-dilutive.  15,202,192 (2014: 13,318,493) potential ordinary shares have been excluded from the above calculations as they are not dilutive.  
                                                                                                                                                                                                                                                                     
 
 
NOTE 7:  PARENT COMPANY LOSS FOR THE FINANCIAL YEAR 
 
The Company has taken advantage of the exemption as allowed by Section 408 of the Companies Act 2006 and has not presented
its own statement of comprehensive income in these financial statements.  The Company loss for the year was $3,860,532
(2014: Loss $2,390,597). 
 
NOTE 8:  SEGMENT INFORMATION 
 
The Group's reportable segments are set out below and include the Indonesian and Australian corporate offices which are
administrative cost centres. 
 
Operating segments are reported in a manner consistent with the reporting provided to the board. 
 
 Consolidated 2015                 Australia - Corporate office  Indonesia - Administration Office  Total    
                                   $'000                         $'000                              $'000    
                                                                                                             
 Finance income                    6                             3                                  9        
 Administration expenses           (2,429)                       (313)                              (2,742)  
 Exchange differences              (60)                          -                                  (60)     
 Loss for the year after taxation  (2,483)                       (310)                              (2,793)  
                                                                                                             
 Non current assets                5                             3                                  8        
 Other receivables                 135                           10                                 145      
 Cash and cash equivalents         2,029                         21                                 2,050    
 Segment assets                    2,169                         34                                 2,203    
                                                                                                             
 Trade and other payables          724                           53                                 777      
 Provisions                        144                           45                                 189      
 Segment liabilities               868                           98                                 966      
                                                                                                             
 Segment net assets                1,301                         (64)                               1,237    
 
 
 Consolidated 2014                 Australia - Corporate office  Indonesia - Administration Office  Total    
                                   $'000                         $'000                              $'000    
                                                                                                             
 Finance income                    5                             5                                  10       
 Administration expenses           (2,479)                       (232)                              (2,711)  
 Loss on sale of financial assets  (46)                          -                                  (46)     
 Exchange differences              304                           (7)                                297      
                                                                                                             
 Loss for the year after taxation  (2,216)                       (234)                              (2,450)  
                                                                                                             
 Non current assets                6                             1                                  7        
 Other receivables                 57                            2,492                              2,549    
 Cash and cash equivalents         2,993                         23                                 3,016    
                                                                                                             
 Segment assets                    3,056                         2,516                              5,572    
                                                                                                             
 Trade and other payables          681                           58                                 739      
 Loans and Borrowings              -                             2,483                              2,483    
 Provisions                        -                             40                                 40       
                                                                                                             
 Segment liabilities               681                           2,581                              3,262    
                                                                                                             
 Segment net assets                2,375                         (65)                               2,310    
 
 
NOTE 9:  OTHER RECEIVABLES 
 
                                    Consolidated  Company  
                                    2015          2014     2015   2014   
                                    $'000         $'000    $'000  $'000  
 Current                                                                 
                                                                         
 Related party receivables          3,000         3,342    -      -      
 Impairment for non-recovery        (3,000)       (859)    -      -      
 Prepayments and other receivables  145           66       135    56     
                                    145           2,549    135    56     
 
 
The Group's exposure to credit and currency risk related to other receivables is disclosed in Note 19. 
 
NOTE 10:  PROPERTY, PLANT AND EQUIPMENT 
 
                                                     Consolidated  Company  
                                                     2015          2014     2015   2014   
                                                     $'000         $'000    $'000  $'000  
                                                                                          
 Plant & Equipment                                                                        
 Cost                                                                                     
 Balance at start of year                            243           255      111    110    
 Written off                                         (82)          (12)     -      -      
 Additions                                           4             -        1      1      
 Effects of movements in exchange rates              (5)           -        3      -      
 Balance at end of year                              160           243      115    111    
                                                                                          
 Accumulated Depreciation                                                                 
 Balance at start of year                            236           234      105    101    
 Depreciation expense for the year                   3             13       2      4      
 Reversal of accumulated depreciation - Written off  (82)          (11)     -      -      
 Effects of movements in exchange rates              (5)           -        3      -      
 Balance at end of year                              152           236      110    105    
 Net book value at end of the year                   8             7        5      6      
                                                                                          
                                                                                          
 Net book value at start of year                     7             21       6      10     
 
 
NOTE 11:  INVESTMENT IN SUBSIDIARIES 
 
The subsidiaries of Churchill Mining Plc, all of which have been included in these consolidated financial statements, are
as follows: 
 
 Name                           Country of Incorporation  Proportion of ownership interest  
                                                                                            
 Planet Mining Pty Ltd          Australia                 100%                              
 PT Indonesia Coal Development  Indonesia                 100%                              
 PT Techno Coal Utama Prima*    Indonesia                 100%                              
 PT Ridlatama Tambang Mineral*  Indonesia                 75%                               
 PT Ridlatama Trade Powerindo*  Indonesia                 75%                               
 PT Ridlatama Steel*            Indonesia                 75%                               
 PT Ridlatama Power*            Indonesia                 75%                               
 
 
*Undertaking held indirectly by the Company. 
 
Churchill Mining Plc owns 95% of the shares in PT Indonesia Coal Development with the balance (5%) held by Planet Mining
Pty Ltd. 
 
Movements of investments in subsidiaries during the period are: 
 
                                                   Company  
                                                   2015     2014   
                                                   $'000    $'000  
                                                                   
 Loans to subsidiaries - Non-current assets                        
 -   Opening Balance                               -        -      
 -   Loans to subsidiaries                         175      60     
 -   Repayment of loans from subsidiaries          (13)     -      
 -   Impairment of subsidiary carrying value       (162)    (60)   
 Total loans to subsidiaries - non-current assets  -        -      
                                                                   
 Equity investment in subsidiaries                                 
 -   Opening Balance                               -        158    
 -   Impairment of subsidiary carrying value       -        (158)  
 Total equity investment in subsidiaries           -        -      
                                                                   
 Total investment in subsidiaries                  -        -      
 
 
The total of subsidiary loans at 30 June 2015 is $49,201,733 (2014: $49,039,912), the recovery of which has been impaired
in full. The intercompany loans are unsecured, non-interest bearing and repayable on demand.  Following impairment of the
underlying assets held within the relevant subsidiaries, Churchill Mining Plc has accordingly reduced the carrying value of
investments held at a parent company level. 
 
NOTE 12: TRADE AND OTHER PAYABLES 
 
                              Consolidated  Company  
                              2015          2014     2015   2014   
                              $'000         $'000    $'000  $'000  
                                                                   
 Current                                                           
 Trade payables               418           67       415    67     
 Accruals and other payables  359           672      354    614    
                              777           739      769    681    
 
 
The Group's exposure to credit and currency risk related to trade and other payables is disclosed in Note 19. 
 
NOTE 13:  LOANS AND BORROWINGS 
 
                                                                                                                                                                                                                                                                                                                                           Consolidated  Company  
                                                                                                                                                                                                                                                                                                                                           2015          2014     2015   2014   
                                                                                                                                                                                                                                                                                                                                           $'000         $'000    $'000  $'000  
                                                                                                                                                                                                                                                                                                                                                                                
 Current                                                                                                                                                                                                                                                                                                                                                                        
 Related party payables                                                                                                                                                                                                                                                                                                                    2,229         2,483    -      -      
 Reassessment of related party loan payable                                                                                                                                                                                                                                                                                                (2,229)       -        -      -      
                                                                                                                                                                                                                                                                                                                                           -             2,483    -      -      
                                                                                                                                                                                                                                                                                                                                                                                
 Included in the loans and borrowings are amounts potentially payable of $2,228,848 due to the non-controlling shareholders of the IUP Companies PT Ridlatama Tambang Mineral, PT Ridlatama Trade Powerindo, PT Ridlatama Steel and PT Ridlatama Power.   During the year ended 30 June 2015 the loan payable has been reassessed to nil.  
 
 
NOTE 14: PROVISIONS 
 
                     Consolidated  Company  
                     2015          2014     2015   2014   
                     $'000         $'000    $'000  $'000  
                                                          
 Current                                                  
 Provision for fine  144           -        144    -      
                     144           -        144    -      
                                                          
 Non-current                                              
 Employee benefits   45            40       -      -      
                     45            40       -      -      
 
 
Current 
 
During the year, Churchill was made aware of an intention by the London Stock Exchange plc ("the Exchange") to commence
proceedings against the Company under the AIM Disciplinary Procedures in relation to alleged breaches of AIM rules 11 and
31 during the period from August 2010 to March 2011. 
 
Whilst the Company disputes the contentions raised by the Exchange and will be defending the disciplinary action which is
based upon alleged breaches of the AIM rules which are disputed and alleged to have occurred over 5 years ago, the Company
has included a provision of $144,000 (£90,000) in relation to any potential fine. The ultimate level of any fine, which
will be determined by the AIM Disciplinary Committee if they find the case in favour of the Exchange, may be materially
higher or lower than the current provision of $144,000 (£90,000). 
 
Non-Current 
 
The Non-current provision relates to the estimated liability for post-employment benefits at year end for staff engaged by
PT Indonesia Coal Development. 
 
NOTE 15:  COMMITMENTS 
 
                                                                                                                                                                             Consolidated  Company  
                                                                                                                                                                             2015          2014     2015   2014   
                                                                                                                                                                             $'000         $'000    $'000  $'000  
                                                                                                                                                                                                                  
 Operating lease commitments                                                                                                                                                                                      
 The total future aggregate minimum lease payments  under non-cancellable operating leases:                                                                                                                       
 Within one year                                                                                                                                                             19            20       19     20     
 Within two to five years                                                                                                                                                    -             18       -      18     
                                                                                                                                                                             19            38       19     38     
                                                                                                                                                                                                                  
 The above amount relates to a property sub-lease for 41 York Street, Subiaco Western Australia with the term expiring on 31 May 2016 with rent payable monthly in advance.  
                                                                                                                                                                                                                  
 Consultant and Key Management compensation commitments                                                                                                                                                           
                                                                                                                                                                                                                  
 Commitments under consulting contracts not provided for in the financial statements and payable:                                                                                                                 
 Within one year                                                                                                                                                             321           204      321    204    
                                                                                                                                                                             321           204      204    204    
                                                                                                                                                                                                                  
 
 
NOTE 16:  SHARE CAPITAL, SHARE PREMIUM AND RESERVES 
 
                                     Company      Company      
                                     2015         2014         2015   2014   
                                     Number       Number       $'000  $'000  
                                                                             
 Allotted, called up and fully paid                                          
 At start of year                    123,619,562  123,168,095  2,237  2,230  
 Additions                           9,156,051    451,467      144    7      
 At end of year                      132,775,613  123,619,562  2,381  2,237  
 
 
                                                                                                                                                                                         Allotted, called up and fully paid  Share premium  
 Date                                  Details                                                                                                                                           Number                              $'000          $'000          
                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                           
 30/6/2013                             Closing balance at 30 June 2013                                                                                                                   123,168,095                         2,230          77,641         
 07/01/2014                            Issue of shares to directors @ 22.23p per share                                                                                                   451,467                             7              150            
 30/6/2014                             Closing balance at 30 June 2014                                                                                                                   123,619,562                         2,237          77,791         
 15/1/201514/5/201514/5/201516/6/2015  Issue of shares to directors @ 27.09p per shareIssue of shares for cash @ 10p per shareShare issue expensesConversion of options @ 15p per share  606,0518,500,000-50,000             9134-1         2611201(29)11  
                                                                                                                                                                                         132,775,613                         2,381          79,235         
 
 
Share premium 
 
The share premium reserve amount arises from subscriptions for or issue of shares in excess of nominal value. 
 
Other Reserves 
 
Other Reserves include 
 
(i)  Foreign exchange reserve 
 
The amount represents gains/losses arising from the translation of the financial statements of foreign operations, the
functional currency of which is different from the presentation currency of the Group. The reserve is dealt with in
accordance with the accounting policy set out in note 1 to these financial statements. 
 
(ii)    Equity settled share options reserve 
 
The amount relates to the fair value of the share options that have been expensed through the statement of comprehensive
income less amounts, if any, that have been transferred to the retained earnings/deficit upon exercise. 
 
Retained deficit 
 
Retained deficit represents the cumulative net gains and losses recognised in the statement of comprehensive income less
any amounts reflected directly in other reserves. 
 
NOTE 17:  SHARE BASED PAYMENTS AND WARRANTS GRANTED 
 
Share options issued as compensation 
 
The Company has issued share options, some of which have vested immediately on grant and others with vesting periods. The
options are unlisted. Share options are exercisable for ordinary shares which when exercised rank equally with existing
ordinary shares. 
 
 Exercise price  Grant date  Outstanding at start of year  (Exercised)/Granted during the year  (Lapsed/ Expired) during the year  Outstanding at end of year  Final exercise date  
                                                                                                                                                                                    
 2014                                                                                                                                                                               
 50p             19/08/2011  4,700,000                     -                                    -                                  4,700,000                   19/08/2016           
 50p             29/10/2012  1,500,000                     -                                    -                                  1,500,000                   29/10/2017           
 28p             21/03/2013  5,400,000                     -                                    -                                  5,400,000                   21/03/2018           
 48p             03/05/2013  50,000                        -                                    -                                  50,000                      03/05/2018           
 50p             09/12/2013  -                             3,000,000                            -                                  3,000,000                   09/12/2018           
                                                                                                                                                                                    
 Total                       11,650,000                    3,000,000                            -                                  14,650,000                                       
 
 
 2015                                                                           
 50p    19/08/2011  4,700,000   -          (800,000)    3,900,000   19/08/2016  
 50p    29/10/2012  1,500,000   -          (250,000)    1,250,000   29/10/2017  
 28p    21/03/2013  5,400,000   -          -            5,400,000   21/03/2018  
 48p    03/05/2013  50,000      -          -            50,000      03/05/2018  
 50p    09/12/2013  3,000,000   -          -            3,000,000   09/12/2018  
 25p    02/04/2015  -           5,000,000  -            5,000,000   02/04/2020  
 15p    20/05/2015  -           100,000    -            100,000     30/06/2018  
                                                                                
 Total              14,650,000  5,100,000  (1,050,000)  18,700,000              
 
 
                                       Weighted average exercise price  Number       Weighted average exercise price  Number      
                                       2015                             2015         2014                             2014        
                                                                                                                                  
 Outstanding at beginning of the year  42p                              14,650,000   40p                              11,650,000  
 Expired during the year               50p                              (1,050,000)  -                                -           
 Issued during the year                25p                              5,100,000    33p                              3,000,000   
 Outstanding at end of the year        37p                              18,700,000   42p                              14,650,000  
                                                                                                                                  
 Exercisable at the end of the year    41p                              13,700,000   40p                              11,650,000  
                                                                                                                                    
 
 
The weighted average share price during the year was 30.61p (2014: 20.31p). 
 
Warrants granted 
 
On 14th May 2015 the Company raised £850,000 before expenses through a placing and subscription of 8,500,000 new Ordinary
Shares of 1p each at a price of 10p per share together with the issue of 4,250,000 warrants exercisable at a price of 15p
per Ordinary Share and expiring on 30 June 2018. 100,000 broker warrants were also issued as part of the fund raise. 
 
Fair value 
 
The fair value of the share options and warrants granted as compensation has been derived using the Black-Scholes model
that takes into account factors such as the option/warrant life, the volatility of share price and expected early exercise
of share options/warrants. Volatility has been based on an estimate of comparable listed companies to Churchill. 
 
 2015                                                                   
 Grant date                2/04/2015                 20/05/2015         
 Granted to                Key Management Personnel  Broker warrants    
                                                                        
 Number granted            5,000,000                 100,000            
 Fair value at grant date  2.77c                     8.76c              
 Assumptions used                                                       
 Share price               16.12c                    24.34c             
 Exercise price            37.00c                    22.81c             
 Expected volatility       65%                       71%                
 Average Option life       2.50                      1.50               
 Risk free interest rate   0.5%                      0.5%               
 
 
 2014                                                
 Grant date                9/12/2013                 
 Granted to                Key Management Personnel  
                                                     
 Number granted            3,000,000                 
 Fair value at grant date  7.47c                     
 Assumptions used                                    
 Share price               34.32c                    
 Exercise price            81.72c                    
 Expected volatility       70%                       
 Average Option life       2.65                      
 Risk free interest rate   2%                        
 
 
Equity settled share based payment expense 
 
The share based payment for the year ended 30 June 2015 was US$130,000 (2014: $249,297). 
 
Shares 
 
On 15th January 2015, the Company issued 606,051 new Ordinary shares to directors, executives and the company secretary at
a deemed issue price of 27.09 pence per share in lieu of the payment of cash fees. 
 
NOTE 18:  NOTES TO THE CASH FLOW STATEMENT 
 
                                                                       Consolidated  Company  
                                                                       2015          2014     2015     2014     
                                                                       $'000         $'000    $'000    $'000    
                                                                                                                
 Reconciliation of (loss) after tax to cash from operating activities                                           
                                                                                                                
 (Loss) after tax                                                      (2,793)       (2,450)  (3,861)  (2,391)  
 Share option expense                                                  130           249      130      249      
 Shares issue in lieu of fees                                          271           157      271      157      
 Depreciation expense                                                  4             13       2        5        
 Impairment expense                                                    -             -        162      218      
 (Gain)/ Loss on exchange rates                                        240           (297)    1,276    (287)    
 Loss on subsidiary loans & investment                                 -             46       -        -        
 Finance income                                                        (1)           (2)      (1)      (2)      
 Reassessment of loan payable                                          2,229         -        -        -        
 Impairment of receivables                                             (2,229)       -        -        -        
 Decrease / (Increase) in receivables                                  2,150         167      (78)     138      
 (Decrease) / Increase  in payables                                    

- More to follow, for following part double click  ID:nRSQ9916Fc
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.