toledo mining corporation investor presentation june 2010
DESCRIPTION
Investor Presentation June 2010 TOLEDO MINING : INVESTOR UPDATETRANSCRIPT
TOLEDO MINING : INVESTOR UPDATE June 2010
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Disclaimer
The information contained in this presentation (“Presentation”) is confidential to Toledo Mining Corporation PLC (“Toledo” or “the Company”). It is not intended for and should not be distributed to any other person other then as permitted herein. By viewing this Presentation, the Recipient agrees that he/she will not transmit, reproduce or make available the Presentation (or any information contained herein) to anyone other than to his/her professional advisers without the prior consent of Toledo. Any such disclosure to the advisers of the Recipient must be on 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 or subsequently 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 Toledo and each Recipient must make his/her own independent assessment and investigation of Toledo and its business and assets and should not rely 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 or may not be achieved. They are based on certain assumptions which may or may not be met or on which views may differ. The performance and operations of Toledo may be influenced by a number of factors, many of which are outside the control of Toledo. No representation or warranty, 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 not constitute 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 sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to 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 in which it appears.
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Fundamentals
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Ticker TMC.L
M/Cap £10m
Share Price 24p
ISC 41.54m
Options 0.79m
Fully Diluted 42.35m
Cash £3.55M
TMM Management Inc, Manila, Philippines Chief Operating Officer General Manager – Projects Manager: Resources & Technical Services Environmental Consulting Manager Chief Accountant
Ken Stein Rufo Cabanlig Ramon Flores Dr Keith Halford Marissa Nicdao
Major Shareholders
Daintree Resources Limited 24.01%
Fevamotinico SARL 9.77%
European Nickel PLC 7.68%
Exploration Capital Partners 4.81%
Union Bancaire Privee 4.09%
Alfred Ramos 3.13%
Baker Steel 2.95%
Chairman Reg Eccles
Non Executive Directors Felix Pole
Simon Purkiss
Constantine Thanassoulas
Jason Cheng
Board
Toledo Mining is focused on nickel laterites in the Philippines
Large, nickel resource base in 4 deposits on Palawan Island
Focused on ‘value add’ downstream processing
Supportive major shareholders
Overview
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Sumitomo’s Coral Bay
(TMC interest 52%)
TMC interest 56.1%
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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
Strategy
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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
The Philippines
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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
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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
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As at 5 June 2010
EXPLORATION UPDATE
Particulars (Feb) (March) (April) (May) (June) YTD
Meterage
1. LVP 189.50 897.90 0.00 157.25 155.60 1400.25
2. Parcel 4 0.00 1276.25 1361.30 1155.60 123.90 3917.05
3. Parcel 3 0.00 0.00 0.00 0.00 3.00 3.00
TOTAL 5317.30
No of DH Completed
1. LVP 8.00 46.00 0.00 14.00 13.00 81.00
2. Parcel 4 0.00 130.00 165.00 137.00 18.00 450.00
3. Parcel 3 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 531.00
Current Berong Exploration Drilling Programme
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Results to Date From Parcel 4
Assay results received to date
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< =1.0
<=1.3
<= 1.6
<= 1.9
<= 2.2
>2.2
In Pit Drilling
In pit drilling was performed in preparation for production recommencement 54 holes drilled
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Old exploration holes finishing in good grade
Some new drilling has confirmed profile depth
Some has shown significant increase in profile depth
8m @ 2.37% Ni
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EXAMPLE CROSS SECTION OF IN-PIT DRILLING
Old exploration holes
New Drilling
New Drilling – 17m thick Old interpretation 7m thick
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EXAMPLE CROSS SECTION OF IN-PIT DRILLING
New Drilling has confirmed the profile in the thicker areas
And also show a lot deeper profile in the thin areas
18m @ 2.14%Ni 24m @ 1.90% Ni
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EXAMPLE CROSS SECTION OF IN-PIT DRILLING
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 Council for Sustainable Development
DOS operation could commence in 2011 if warranted by market conditions
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Sumitomo’s Coral Bay
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
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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
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