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Toledo Mining Corporation Investor Presentation June 2010

Toledo Mining Corporation Investor Presentation June 2010



Investor Presentation June 2010

Investor Presentation June 2010




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  • NO TO MINING IN PALAWAN and other Key Biodiversity Areas, Natural Forests, Island Ecosystems, Critical Watersheds and Agricultural Areas!
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  • Ang yaman ng Palawan ay yaman ng Pilipinas It is known as the Philippines’ Last Ecological Frontier. It has 40% of our country’s remaining mangrove areas, 30% of our coral reefs, at least 17 Key Biodiversity Areas (KBAs), 2 UNESCO World Heritage Sites, and 8 declared Protected Areas (PAs). It is unmatched anywhere in the country
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    Toledo Mining Corporation Investor Presentation June 2010 Toledo Mining Corporation Investor Presentation June 2010 Presentation Transcript

    • DisclaimerThe information contained in this presentation (“Presentation”) is confidential to Toledo Mining Corporation PLC (“Toledo” or “the Company”). Itis not intended for and should not be distributed to any other person other then as permitted herein. By viewing this Presentation, theRecipient agrees that he/she will not transmit, reproduce or make available the Presentation (or any information contained herein) to anyoneother than to his/her professional advisers without the prior consent of Toledo. Any such disclosure to the advisers of the Recipient must beon a confidential basis, for the purpose only of assessing the information contained herein as adviser to the Recipient.This Presentation has been prepared as a summary only and does not contain all information about the Company’s assets and liabilities,financial position and performance, profits and losses, prospects and rights and liabilities. The information contained in this Presentation orsubsequently provided to the Recipient of this Presentation whether orally or in writing by or on behalf of Toledo and its directors, officers,employees, advisers, agents or consultants (“Information”) is provided to the Recipients on the terms and conditions set out in this notice.The purpose of this Presentation is to provide Recipients with Information relating to Toledo. The Presentation has been prepared by Toledoand each Recipient must make his/her own independent assessment and investigation of Toledo and its business and assets and should notrely on any statement or the adequacy and accuracy of any Information contained in this Presentation.Toledo makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the Information. Toledo and its directors, employees, agents or consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or any omissions from the Presentation, except liability under statute that cannot be excluded.The Presentation contains reference to certain intentions, expectations and plans of Toledo. These intentions, expectations and plans may ormay not be achieved. They are based on certain assumptions which may or may not be met or on which views may differ. The performanceand operations of Toledo may be influenced by a number of factors, many of which are outside the control of Toledo. No representation orwarranty, express or implied, is made by Toledo any of its directors, officers, employees, advisers, agents or consultants that any intentions,expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. This Presentation does notconstitute in any way an offer or invitation to subscribe for securities in Toledo.The technical information contained in this presentation has been reviewed and approved by Mr Tim Ashworth. Mr Ashworth has sufficientexperience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertakingto qualify as a Qualified Person under the AIM Note for Mining, Oil and Gas Companies. Mr Ashworth holds the position of General Manager,Philippines, Toledo Mining Corporation. Mr Ashworth consents to the inclusion of his name in this presentation in the form and context inwhich it appears. 2
    • FundamentalsTicker TMC.LM/Cap £10mShare Price 24pISC 41.54mOptions 0.79mFully Diluted 42.35mCash £3.55MBoardChairman Reg EcclesNon Executive Directors Felix Pole Simon Purkiss Major Shareholders Constantine Thanassoulas Daintree Resources Limited 24.01% Jason Cheng Fevamotinico SARL 9.77%TMM Management Inc, Manila, Philippines European Nickel PLC 7.68%Ken Stein Chief Operating Officer Exploration Capital Partners 4.81%Rufo Cabanlig General Manager – Projects Manager: Resources & Technical Services Union Bancaire Privee 4.09%Ramon FloresDr Keith Halford Environmental Consulting Manager Alfred Ramos 3.13%Marissa Nicdao Chief Accountant Baker Steel 2.95% 3
    • Overview  Toledo Mining is focused on nickel laterites in the Philippines  Large, nickel resource base in 4 * TMC interest 56.1% deposits on Palawan Island * * *  Focused on ‘value add’ downstream processing (TMC interest 52%)  Supportive major shareholders Sumitomo’s Coral Bay 4
    • Strategy  Maintain Toledo’s substantial asset base and good standing with local partners and government  Negotiate binding agreements with third party investors and consumers for value added processing  Be ready to resume economic direct ore shipping (DOS) operations to satisfy demand  Ongoing drive to reduce operating and overhead expenses 5 5
    • The Philippines  Proximity to Asian markets  2004 marked clarity and legal certainty with the Mining Act   2004 Minerals Action Plan   2005 formation of the Minerals Development Council  Foreign direct ownership of projects currently restricted to 40% of mining operations and investments of less than US$50 million, but no limit on economic ownership  Palawan Island is stable & has history of mining and beneficiation, e.g. Sumitomo’s Coral Bay nickel laterite HPAL plant  Successful election of new President Noynoy Aquino, who is pro-mining 6 6
    • Berong Nickel Corporation (BNC)  Current JORC resource of 10Mt @1.55% Ni (155,000t contained Ni) sufficient to supply DOS operation for 15 years  Exploration programme underway to prove up additional 30Mt – 40Mt resource required to support 20,000tpa nickel processing operation  DOS: suspended in 2009 due to market conditions, actively seeking long term contracts  Mining can recommence at short notice  Ongoing discussions with potential strategic partners   Metallurgical test work has confirmed Berong ore highly amenable to leaching process 7 7
    • Berong Exploration Programme•  Exploration programme targeting increase in JORC resource to 40Mt •  Programme commenced late 2009, anticipated completion Q4 2010 •  20,000m drill programme with 6 rigs on site & mobilised •  Resource Upgrade due Q1 2011 •  Drilling commenced in Parcel 4, the largest of 6 parcels granted under the Exploration Permit•  Infill drilling in existing pit area: 54 holes drilled, possibility to drill more holes once interpretation of 54 holes completed – this is expected to increase the current reserve tonnage  Long Point drilling to commence once Local Government (LG) approval is received, which is anticipated Q3 2010  Dangla drilling to commence once LG approval is received, which is anticipated Q4 2010 8
    • Current Berong ExplorationDrilling Programme EXPLORATION UPDATE Particulars (Feb) (March) (April) (May) (June) YTD Meterage1. LVP 189.50 897.90 0.00 157.25 155.60 1400.252. Parcel 4 0.00 1276.25 1361.30 1155.60 123.90 3917.053. Parcel 3 0.00 0.00 0.00 0.00 3.00 3.00 TOTAL 5317.30 No of DH Completed1. LVP 8.00 46.00 0.00 14.00 13.00 81.002. Parcel 4 0.00 130.00 165.00 137.00 18.00 450.003. Parcel 3 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 531.00As at 5 June 2010 9
    • Results to Date From Parcel 4 >2.2 <= 2.2 <= 1.9 <= 1.6 <=1.3 < =1.0 Assay results received to date 10
    • In Pit Drilling   In pit drilling was performed in preparation for production recommencement   54 holes drilled 11
    • EXAMPLE CROSS SECTION OF IN-PIT DRILLING Some new drilling has confirmed profile depthSome has shownsignificant increase inprofile depth 8m @ 2.37% Old exploration holes Ni finishing in good grade 12
    • EXAMPLE CROSS SECTION OF IN-PIT DRILLING New Drilling – 17m thick Old interpretation 7m thickNew Drilling Old exploration holes 13
    • EXAMPLE CROSS SECTION OF IN-PIT DRILLING And also show a lot deeper profile in the thin areas 18m @ 2.14%Ni 24m @ 1.90% NiNew Drilling has confirmedthe profile in the thickerareas 14
    • Ipilan Nickel Corp (INC)  Current JORC resource: 30.6Mt @ av. grade 1.36% Ni at a 1% grade cut-off (416,000t contained nickel)  Sufficient to support long life mining and processing operation   Potential to increase the size of the resource  Recently obtained crucial municipality endorsement for a mining operation   This, along with endorsement of the four local councils (barangay) demonstrates community support for the project  Final step in permitting is the endorsement of the Palawan Provincial government and the Palawan Sumitomo’s Coral Bay Council for Sustainable Development  DOS operation could commence in 2011 if warranted by market conditions 15
    • The DOS Market  Chinese imports of nickel ore recovered in early 2010 BUT import demand now for 2 product groups:   Iron substitute: high iron(>40%) / low nickel (<1%)   Ferrous nickel production: high nickel (>2+%)  Prices for traditional product (+/-1.5% Ni, 30% Fe) remain weak  BUT evidence Japanese demand beginning to exert upward price pressure 1616
    • Moving Forward  Complete exploration programme at Berong  Complete permitting process at Ipilan  Actively pursue DOS contracts - currently in negotiations with 2 major nickel producers for long term nickel ore supply  Reinvigorate discussions with strategic partners regarding value adding   European Nickel, now merger with Rusina completed   JXTC, now involved with financially strong partner Chinalco 17