Interesting little company. Did a series of asset swops to leave them with half of the 4th largest Nickel deposit in the world.
The deposit itself is in the Philippines has been known about for 30 years but due to low prices and lack of demand in the Far East it was never exploited. With the explosion in demand from India and China the nickel price has climbed from $2 to $6.50 but oddly enough is still considered low.
The final approval stage for exploitation is just about to be approved and extraction will begin. The company already has one contract with a Japanese smelter and is in discussions with smelters in a series of countries.
Nothing clever about the operation, as the ore is of sufficiently high grade, they dig it up and ship it out. Infrastrucure is already in place for operation.
TMC is currently priced at 18m, the initial Japanese contract is worth 4m and each additional contract will hopefully be at this level or greater.
Final approval turns the company into a producer and each additional contract simply increases their size.
The management is tight with cash and has some good quality mining skills onboard.
The Philippine government is fast tracking the final approval and the company says it expects it shortly.
One to hold for approval and through the series of RNS's as more contracts are won. Company should be worth 50m in 6 months and 100m in 12-18 months.
Buy it, ignore it, just pointing this one out.

From The Times today...

In the know

Rumour of the day
Toledo Mining added 1p to 126p on word that it was poised to secure a permit allowing it to start commercial mining of the Berong nickel project in the Philippines, the fourth-largest undeveloped nickel deposit in the world. Toledo is said to be in advanced negotiations with major customers to supply the metal, with BHP Billiton lined up to buy at least half the output.

http://www.timesonline.co.uk/article/0,,748-2471107.html

Thanks someuwin.

Oily, thanks very much for your calculations.

One question: are not TMC shipping ore, which commands a lower price than the refined metal? I'm not sure they'll get $30k a tonne for just the rock.

S.T. see my entry 90 of 95, the rock that they are shifting at the moment contains approx 1.5% nickel. Therefore 30,000 tonnes contains approx 450 tonnes of pure nickel normally worth 450 x 22000 = 9,900,000. However the samples are being sold at 23% of the current market price which should fetch us 2,277,000.

News leaked to the Financial Times on Saturday about Special Mines Permit, I wonder if the market makers are going to mark it up before trading.

It seems not !

Toledo Mining Corporation PLC
27 November 2006

TOLEDO MINING CORPORATION TO START COMMERCIAL MINING OPERATIONS AT BERONG NICKEL PROJECT

The directors of Toledo Mining Corporation plc (AIM:TMC) advise that the Berong Nickel Project has been issued a Special Mines Permit (SMP), and is now able to commence full scale commercial mining of laterite nickel ore from its Berong project on Palawan Island in the Philippines with immediate effect. The SMP, issued by the Department of Environment and Natural Resources (DENR) headed by Secretary Angelo T. Reyes, has a term of one year (commencing on the 15th November 2006) and is renewable for a further one year.

The issuance of the SMP allows Berong Nickel Corporation (BNC) to commence its mining operations whilst it completes a feasibility report as part requirement for the company's commercial Mineral Production Sharing Agreement (MPSA) application.

The Berong Nickel Project is a Joint Venture between Toledo Mining Corporation plc, Atlas Consolidated Mining & Development Corporation, and Investika Ltd.

Current activities are focused on the extraction of a bulk metallurgical sample of approximately 30,000 dry metric tons (equivalent to approximately 45,000 wet metric tons (wmt) at a grade of approximately 1.7% nickel (includes 10% dilution). To date, approximately 20,000 wmt of ore has been mined. Progress has been slower than anticipated because of heavy rains associated with typhoon activity. This should change considerably with the approaching dry season. The bulk metallurgical sample will be shipped to Hainan Yulai Steel Co. Ltd., a Chinese stainless steel producer.

Commercial mining operations will commence immediately. For the first year of the SMP, an export target of approximately 1 million wet metric tons of ore has been set, weather permitting. The grade of this ore will average greater than 1.85% nickel. Some shipments with grades above 2% nickel can be expected. The mine is expected to be operating at an annual rate of approximately 1.5 million wmt per year by the start of 2008.

Customer demand for the laterite ore is very strong. Negotiations are well advanced for the long term (4+ years) supply of up to 50% of the mine output to the BHP Billiton /QNI (Queensland Nickel) plant at Townsville in Australia. Similarly, negotiations continue with numerous Chinese and Japanese customers for shorter term supply of up to 2 years. Demand far exceeds supply.

Mr George Bujtor, CEO of Toledo Mining Corporation commented, 'The Berong Nickel Project has been developed into a commercial mining operation in under one year from the time we commenced initial test pitting and sampling. Such rapid progress is achievable in the Philippines under the current mining laws, and we can thank the DENR for its diligence and full support'.

George Bujtor, CEO of Toledo Mining, is a member of the Australasian Institute of Mining and Metallurgy and is the qualified person that has reviewed and approved the technical information contained in this announcement

With production increasing to 1,500.000wmt in early 2008 the sale proceeds assuming nickel prices remain strong must make TMC's current market capitalisation of 37million look ridiculously low!

Down 3.5p Ha Ha you don't scare me you silly market maker. I'm going to buy more.

It's not just TMC nearly everything is down

BLESS AMERICA !

The title of this thread intrigues me.

Nothing has a right to "bounce". ;-))

All gone a bit flat since last announcement.