toledo mining corporation plc 
 
 
registered number 5055833    
 
 
 
 
 
 
 
 
 
 
 
financial statements 
 
for the year ended 31 march 2011 
 
 
 
 
 
 
 
  1 
 
contents  
    
  
page
highlights 2
chairman’s statement 3
chief executive officer’s review 6
in the community 9
directors and senior management  11
report of the directors 13
statement of directors’ responsibilities 19
independent auditors’ report  20
consolidated income statement 22
consolidated statement of comprehensive income 23
consolidated balance sheet 24
company balance sheet 25
consolidated statement of changes in equity 26
company statement of changes in equity                       28
consolidated cash flow statement 30
company cash flow statement 31
notes to the financial statements 32
corporate directory 58
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  2 
 
highlights 
 
 
operational 
• recommencement of mining operations at the berong mine 
• sales contract secured for stockpiled ore of approximately 150000 wmt 
• targeted production of 450000 wmt of ore containing 18 nickel by q4 2011  
• sales and production target of 750000 wmt for 2012 
 
financial 
• settlement of atlas loan total of us45 million to be received by end september 2011 
• consolidated loss before tax £44 million 2010 £198 million 
• loss per share including associates1016p 2010 474p 
• cash balances £188 million as at 31 march 2011 
 
 
corporate 
• appointment of victor kolesnikov as chief executive officer 
• appointment of pierre charlent as chief operating officer 
• successful placing of 8307 million shares at a price of 23 pence to raise £19 million net of 
expenses  
  3 
 
 chairman’s statement 
 
 
in the 18 months since the beginning of toledo’s 2011 financial year our management has worked 
tirelessly to extract greater value from our nickel investments located in the philippines 
 
it was very pleasing therefore to be able to announce in april that sales contracts had been 
secured to finance the reopening of the berong mine which duly occurred in may 
 
the intention is now to produce 450000 wet metric tonnes wmt of nickel ore this calendar year 
rising to 750000 wmt annually thereafter the expected net revenue generated from ore sales will 
be more than sufficient at current nickel prices for the joint owners of berong to fund an exploration 
programme of the area around berong and undertake engineering studies to improve ship loading 
capability and determine the optimal technology for local processing of ore 
 
at the ipilan project on the eastern and opposite side of palawan island to berong significant 
progress has been made towards being able to mine the deposit last december we announced 
that statutory licencing obligations had been progressed to the point where only a mine feasibility 
plan and related documents required official sign off before mining operations could begin the 
feasibility plan has been submitted to the minerals and geosciences bureau and it is understood 
that their initial review has drawn no negative feedback 
 
at the beginning of our financial year we had just commenced an exploration programme on the 
moorsom prospect lying within a 14 kilometre radius of the berong mine the stated aim was to 
prove up sufficient ore capable of supporting a processing operation producing 20000 tonnes per 
annum of contained nickel 
 
although the initial results were encouraging the programme was curtailed when it became 
apparent that whilst the requisite tonnage undoubtedly exists the nickel grade is less than hoped 
inhouse analysis of the assay data indicates a total resource of 43 million tonnes grading just over 
08 nickel using a 0 cutoff grade further work is required to determine whether any part of 
this huge resource has the potential of commercial development 
 
as mentioned in my half yearly statement the area long believed to offer significant exploration 
potential is the coastal portion of the long point prospect located some 20 kilometres to the north 
east of the berong mine this area which lies within an environmental critical area network 
ecan is presently off limits to exploration however we remain hopeful that with the support of 
the local council which has petitioned for the ecan map to be redrawn we will be granted 
permission to explore  
 
palawan is a particularly environmentally sensitive island within which to operate often described 
as the philippines last ecological frontier it has been accorded special status under the 
constitution it is not surprising therefore that obtaining permits to explore and mine on palawan 
requires extensive review and cooperation with local authorities management of both berong and 
ipilan has ensured that very careful attention to community social and environmental issues has 
enabled the restart of the berong mine and successful ratification of the environmental plans for 
the development of ipilan 
 
more detailed operational information on both berong and ipilan is contained in the chief 
executive’s review 
 
for the financial year to 31 march 2011 toledo reported a pretax loss of £44 million as compared 
to a loss of £20 million in the 2010 financial year of the £24 million increase in pretax losses 
£16 million is due to noncash provisions with respect to the early settlement by atlas 
consolidated mining and development corporation atlas of a loan from toledo to atlas a partner 
in berong and a reduction in the carrying value of our investment in ipilan a further £021 million 
was due to foreign exchange losses on us denominated loans to philippine partners associated  4 
 
company losses rose by £036 million and administrative expenses were £046 million higher 
principally as a result of negotiations with the jinchuan group during the financial year 
 
with no income during 2010 and for most of this year toledo has relied on the loyal support of 
shareholders last december the company placed 8307 million shares to raise £19 million net of 
expenses as a result of the issue toledo now has 49845333 fully paid ordinary shares in issue 
of which daintree limited whose major shareholder jason cheng sits on the toledo board holds 
22 and fevamotinico sarl a company related to kostyantin zhevago holds 20 the issue 
also saw mr jason cropper increase his equity holding to 67 since when through on market 
purchases his holding has risen to 16 meanwhile toledo’s once most significant shareholder 
european nickel plc now has just a little over 5 equity holding although it still retains its 187 
voting interest in berong nickel corporation 
 
presently financial matters look a lot better for both toledo and its shareholders the berong mine 
should now be selffinancing for the foreseeable future whilst toledo still has a commitment to 
fund on a recoverable basis ipilan up to mine development your company is well funded as a 
result of the early settlement of the atlas loan referred to earlier and which will add us45 million 
to toledo’s cash holdings   
 
it is quite natural that strong commodity prices draws the attention of mineral rich countries to the 
wealth beneath their feet and heightens the debate as to how best these resources be developed 
for the benefit of the country concerned  
 
the philippines with its exceptional endowment of mineral resources is no exception to such 
debate the current focus being on the pros and cons of limiting ore exports in preference to 
domestic processing and on whether to tighten or relax the legislation limiting foreign ownership of 
mineral properties toledo welcomes clarification and resolution on both these issues 
 
meanwhile your company considers it wise to recognise philippine nationals’ desire to process 
minerals within the country and accordingly to plan for a more restrictive environment on ore 
exports we do not see such an outcome as necessarily financially damaging for toledo equally 
we believe that any change to the legislation on foreign ownership will recognise the important 
contribution foreign investment makes to the philippine economy 
 
as toledo became more confident that developments in the nickel market and in particular the 
explosive growth in demand for nickel ore primarily from china but also elsewhere would support 
a reopening of the berong mine and accelerate value added ambitions we moved to strengthen 
our management capabilities  
 
in january 2011 we welcomed victor kolesnikov to the toledo board in march we appointed him 
chief executive officer victor is a metallurgist with over 22 years’ experience in mining and sales 
in the nonferrous metals industry including eight years with norilsk nickel the world’s largest 
nickel producer in the short time since his appointment as ceo victor has made a very positive 
impact on our business including overseeing the commencement of operations at berong 
 
in may 2011 we appointed pierre charlent chief operating officer based in the philippines 
pierre replaces ken stein who returned to australia for personal reasons as a geologist and 
mining engineer pierre not only complements victor’s metallurgical expertise but also comes to 
toledo with over 25 years’ experience in the mining industry including 14 years in nickel laterite 
exploration mining and development in new caledonia 
 
we are very fortunate to have been able to recruit two such high calibre and experienced 
individuals 
 
with the commitment of the staff of the manilabased management company of berong and ipilan 
and the employees at the respective sites we have significantly advanced the reactivation of 
berong and made substantial progress in the permitting at ipilan the toledo board owes all of 
them a huge debt of gratitude  5 
 
 
i would also like to thank felix pole who stood down from the toledo board at the end of june 
felix was my companion in guiding toledo through some very challenging times fortunately 
although felix resigned from the board because of the heavy demands of his business interests 
he remains available should we need to tap his wise counsel 
 
finally i would like to extend my thanks to our shareholders for their continued support we have 
made much positive progress this year and i look forward to updating you as we continue to realise 
further goals over the coming year 
 
 
reginald eccles 
chairman 
24 august 2011  6 
 
chief executive officer’s review 
 
the berong nickel mine in which toledo has a 561 economic interest successfully 
recommenced operations in may 2011this became possible due to favourable market conditions 
for high grade saprolite nickel ores and strong nickel prices which have stayed above 
us20000tonne since august 2010 prior to reopening the berong mine toledo developed a 
new strategy with its jv partners in berong nickel corporation bnc to target production of nickel 
ore containing 18 nickel which is currently being implemented  
 
the 18 plan was developed consistent with growing market demands for this ore type  the 
recent significant changes in market demand for high grade saprolite nickel ore have opened up 
sound prospects for our deposits historically the development of exports of high grade saprolite 
nickel ore began from new caledonia during the 1950s by japanese ferronickel producers later 
they extended their ore source market to indonesia and the philippines the requirement for nickel 
content in the ore in 2001 was very high at 245 which is why only a few nickel ore producers in 
the philippines could compete in this market 
 
from 2003 the european manufacturers of ferronickel also started using high grade saprolite ore 
from asia in their electric arc furnace eaf production thereby competing with japanese 
consumers by the end of 2006 the typical nickel content of high grade saprolite ores exported 
from new caledonia indonesia and the philippines had fallen to 22 nickel due to a general 
decline in the grade of existing deposits and also due to the increased demand for ore the most 
significant changes in the market began in 2006 when china began to use nickel ore for the 
production of nickel pig iron npi in blast furnaces which were previously used for iron production  
 
as the technology for production of pig iron in blast furnaces requires high iron content in raw 
materials the chinese manufacturers mainly used limonitic nickel ores with high iron content 45
55 and low nickel content 091 the proportion of high grade saprolitic ore in the blast 
furnaces production of npi was relatively small at the time of the crash in nickel prices at the end 
of 2008 china did not yet have substantial numbers of eaf plants for ferronickel production and 
had not yet created competition in the market for high grade ores however it rapidly became clear 
to the chinese ferronickel and npi producers that the use of eaf for ferronickel production using 
high grade ores was much more competitive compared to npi production in blast furnaces 
  
by early 2011 china had already built significant numbers of eaf plants for the production of 
ferronickel this dramatically increased the demand for high grade saprolitic ore resulting in a 
decrease in the average available grade from 22 to 18 nickel content all of this has led to the 
berong deposit with its substantial reserves of 18 nickel ore grade becoming very competitive 
against the previous market leaders in high grade ore production from new caledonia indonesia 
and the philippines 
 
the restart of the berong mine by bnc was facilitated by the sale of the existing stockpile of low 
grade ore produced in 2008 the proceeds of which are being used as working capital to support 
mining operations currently 103530 wet metric tonnes wmt of nickel ore with an average grade 
of 154 nickel has been shipped from the existing stockpile yielding a revenue of us257 million 
to bnc 
 
to date a further 160569 wmt of ore with a nickel content of 18 has been mined and delivered 
to the stockpile we anticipate producing a total of 450000 wmt of ore containing 18 nickel by 
the end of this year from which we expect to ship 200000250000 wmt in this shipping season 
because berong uses barges to load ships offshore sea conditions typically limit shipments to 
between march and october  it is planned that shipments will be resumed at the beginning of 
march 2012 when sea conditions again become conducive to barge ship loading we have revised 
our projected shipping target for bnc as announced on 27 may 2011 downwards by 50000 
tonnes  
  
the berong mine is targeting production of 750000 wmt of 18 nickel ore during 2012 to 
address the constraints of the limited shipping window bnc has recently engaged an engineering  7 
 
company to look into the possibility of increasing the shipping period the successful outcome of 
which would increase the capacity of the berong port to 1000000 wmt per year among the range 
of possible measures being considered in the engineering study are the extension of the pier to 
accommodate bigger barges and the construction of a protective sea wall 
 
the jorccompliant resource for berong was prepared by snowden mining industry consultants 
in june 2007 the total resource over the area drilled was stated at 992 million dry tonnes 
averaging 155  ni at a 1 cutoff grade this resource included a subset of high grade resource 
of 488 million dry tonnes grading 188 ni at a 15 cutoff grade 
 
currently following the 2006 to 2008 direct shipping ore operation the balance of this high grade 
resource is approximately 468 million dry tonnes equivalent to approximately 698 million wet 
tonnes of ore which will support a 9year life of mine at the present rate of production of 750000 
wmt of 18 nickel grade per annum for every tonne of highgrade ore produced approximately 
two tonnes of low grade ore with nickel content averaging 13 will be produced alongside this 
will be stored at the mine site area in anticipation of future value added processing operations or 
for sale should favourable market conditions prevail 
 
a mining project feasibility study for ipilan in which toledo holds a 52 economic interest was 
carried out in august 2010 and the relevant documents were compiled and submitted to the mines 
and geosciences bureau for review and approval in november 2010 these included a 
declaration of project mining feasibility dmf environmental protection and enhancement 
program final mine rehabilitation and decommissioning plan social development and 
management plan and a health and safety plan clearance of the allimportant strategic 
environmental plan sep has been received from the palawan council for sustainable 
development pcsd 
 
a comprehensive sintering test has been undertaken on ipilan’s ore which has highlighted an 
opportunity to upgrade the ore especially its limonitic part this study has opened up the possibility 
of upgrading the iron and nickel content of ipilan’s limonitic ore to make it more suitable for npi 
blast furnace production as berong’s ore is similar to ipilan’s the results of the study could also be 
extended to berong’s low grade limonitic ore capital and operating costs of the process are being 
evaluated mine experience gained in the development and operation of berong will be applied to 
ipilan once full permitting for mine development has been secured 
 
past works have confirmed the possibility of using all the available leaching technologies such as 
high pressure acid leaching hpal atmospheric leaching al and heap leaching hl for 
processing the ores of our deposits we continue to assess the viability of these technologies in 
line with changing market conditions we are also expanding our study on pyrometallurgical 
technologies such as looking into regional eaf production of ferronickel to evaluate which is the 
most viable and sustainable value added process for our ore  
 
berong continues to set the benchmark in best practice for its environmental work within the 
community the mine rehabilitation area is now home to 45 hectares of rubber trees which should 
provide the community with a sustainable source of income for years to come  alongside this 
toledo is dedicated to preserving its relationships with the local government units lgus and 
schools in support of the national greening project to deliver our commitment to plant 50 new 
trees for every one tree cut  in this regard numerous species of value added trees fruit trees and 
grasses continue to be planted 
 
funds from royalty payments made to the indigenous peoples continue to provide essential 
services to the community as well as establishing livelihood projects which aim to empower the 
local community in generating its own income  we are consistently investing more time and 
money into corporate social responsibility csr projects than is our obligation as mandated by 
law and continue to strive to contribute positively to the local environment and communities 
amongst which we operate   
  8 
 
finally it would not have been possible to resume operations at berong at such short notice or 
indeed at all without the continued  support and hard work of all of our stakeholders including the 
local community the lgus the provincial and national government and of course our staff and 
management both locally in the philippines and in the uk i would like to take this opportunity to 
congratulate them all and look ahead to continued success in the months and years to come 
 
 
victor kolesnikov 
chief executive officer 
24 august 2011 
 
 
 
competent person statement  
the resource information in this statement is based on information reviewed by mr pierre charlent 
chief operating officer of toledo mining corporation who is a member of the australasian 
institute of mining  metallurgy mr charlent has sufficient experience which is relevant to the style 
of mineralisation and type of deposit under consideration and to the activities undertaken to qualify 
as a competent person as defined in the 2004 edition of the “australasian code for reporting of 
exploration results mineral resources and ore reserves” the jorc code mr charlent 
consents to the inclusion in this statement of the matters based on this information in the form and 
context in which they appear 
 
 
 
 
 
 
 
  9 
 
in the community 
 
toledo is very mindful of its duty to manage the environmental and social impact of its mining 
operations in a responsible and sensitive manner all businesses are part of the wider society and 
we believe they have both the responsibility and the capability to make a positive contribution to 
the communities in which they operate  
 
berong nickel corporation bnc recognises that the efficient operation of its business depends on 
the support of the local authorities and of the community as a whole and seeks to provide 
significant and sustainable benefits through its presence bnc’s community relations officer joy 
asignacion ensures that everyone within the local community has a say in identifying and 
participating in projects backed by the company there are currently two main focus areas for 
these projects – the social development and management programme and community 
programmes 
 
bnc’s social development and management programme sdmp was launched in 2007 following 
extensive consultation with the community and local government to ensure that the programme 
would be fully aligned with their interests and aspirations since then the sdmp has funded a 
number of very successful initiatives including a scholarship scheme a parateachers programme 
improved medical services and a potable water system 
 
the community programmes are wide ranging and are selected and run with the active 
involvement of members of the community recent programmes include 
• livelihood 
backyard gardening scheme tilapia festival manufacture of cocobased products buying 
station for recyclable materials 
• education 
readalong scheme berong elementary extension school science month celebration at 
berong national high school  
• health  
cooking contest supplemental feeding personal hygiene demonstration community garden 
and beautification “dumi mo linis mo” construction of comfort rooms new mothers’ classes 
school garden 
 
adoptamountain 
bnc devised its adoptamountain programme as a proactive and imaginative response to a 
directive issued by the environmental management bureau of the philippine department of 
environment and natural resources denr relating to the rehabilitation by mining operators of 
denuded forests or mountains outside of currently approved mining areas along with restoration 
and conservation the programme also aims to provide livelihoods to local people by planting tree 
species that can generate sustainable income in the future 
 
the barangay district of berong is home to indigenous peoples called “tagbanua” and migrants 
from the visayan islands the tagbanua are the aborigines of quezon and have inhabited the land 
for centuries slash and burn farming known locally as “kaingin” and fishing are the main sources 
of livelihood of the nomadic tagbanua and this has had a detrimental effect on the environment 
within the district 
 
bnc’s community relations team faced a real challenge in finding denuded areas to adopt since 
most of them are still being used as “kaingin” by the tagbanua who understandably do not want to 
leave unless they can sell the land at a very high price to bnc however following a series of 
negotiations conducted with the helpful guidance of the denr the first tree planting event under 
the adoptamountain programme was able to take place on 11 september 2010 hundreds of 
people from the community including schoolchildren along with their teachers and mothers 
government officials and local civic groups converged and planted around 6000 seedlings  
  10 
 
the adoptamountain initiative is not only helping to rehabilitate the local environment but also to 
promote better understanding and relationships throughout the community bnc will continue to 
fund and extend this initiative and the barangay of berong has declared that 11 september will 
from now on be designated adoptamountain day  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  11 
 
directors and senior management 
 
 
board of directors 
 
reginald eccles 
chairman 
mr eccles has extensive experience in the mining industry specialising in the areas of planning 
strategy and finance he has worked for major international mining houses anglo american 
corporation and consolidated goldfields plc cofounded a successful minerals consultancy and a 
publishing business and served as head of global mining equities for both sbc warburg now 
ubs and abn amro 
 
victor kolesnikov 
chief executive officer 
mr kolesnikov is a qualified metallurgical engineer with over 22 years’ experience in the non
ferrous metals industry including eight years with norilsk nickel the world’s largest nickel 
producer although based in london he spends extended periods in the philippines working with 
the local management and joint venture partners utilising his specialist expertise to maximise the 
potential inherent in toledo’s nickel assets 
 
simon purkiss 
nonexecutive director 
mr purkiss is a metallurgical engineer with over 25 years’ experience in the base metals and 
platinum group metals industries he has held various operational and business development roles 
at impala platinum ltd and bhp billiton mr purkiss was one of the founders of european nickel 
plc a uk registered company that has developed the heap leach process for application to nickel 
laterites 
 
constantine thanassoulas 
nonexecutive director 
mr thanassoulas was the chief executive officer of larco sa the largest ferronickel company in 
europe from 20042008 prior to this he held a number of senior positions in the banking 
industry mr thanassoulas is currently a partner of eilon associates ltd an investment banking 
consultancy and is a past president of the european finance association and president of the 
european financial management association 
 
jason cheng 
nonexecutive director 
mr cheng is based in hong kong and is the managing director of kerogen capital ltd a private 
equity firm which invests in the energy sector previously he worked in investment banking in the 
resources sector at schroders and jp morgan in australia and was also based in beijing 
undertaking investment and advisory activities at jade international capital partners mr cheng 
holds a bachelor of commerce from melbourne university and a masters of commerce from 
sydney university  
 
senior management in the philippines 
 
pierre charlent 
chief operating officer 
mr charlent is a geologist and mining engineer with over 25 years’ experience including 14 years 
with nickel laterite exploration mine development and mining in new caledonia his experience 
covers project generation exploration resource and reserves calculations mine design 
development and optimisation mine planning mine management for direct shipping ore and onsite 
processing he holds a masters in geology and geophysics from the university of montpellier and 
a degree in mining engineering from école des mines d’alès france and is a member of the 
australasian institute of mining and metallurgy and a member of the society of economic 
geologists usa  12 
 
rufo s cabanlig jr 
general manager for projects 
employed by tmm mr cabanlig has been a mining engineer for over 30 years and has extensive 
experience in the design engineering and operations of surface mines he was previously head of 
operations for philippines pyrite corporation a wholly owned subsidiary of the state owned 
philippines phosphate fertiliser corporation and also held senior positions with the philippines 
national oil company pnoc and its subsidiaries he undertook postgraduate studies in mineral 
economics from the university of the philippines where he also obtained his degree in mining 
engineering 
 
ramon antonio l flores 
resource development  technical services manager 
employed by tmm mr flores is a geologist with over 30 years’ international experience covering 
exploration consulting research computing and management he held positions previously with 
gold fields newcrest and anglo american and has consulted for clients worldwide he holds a 
masters in environment and natural resources management from the university of the 
philippines and a degree in geology as well as postgraduate diplomas in remote sensing and 
research and development management 
 
marissa s nicdao 
officer in charge accounting 
employed by tmm ms nicdao has extensive accounting experience including 15 years in senior 
positions she was chief accountant for metals mineral resources corporation and for minoro 
mining and exploration corporation her responsibilities include the production of regular 
management reports budgeting reconciliation of account balances review of mine site 
performance and analysis of costsvariances she has a degree in business administration with 
major in accounting and is a certified public accountant 
 
 
tmm management inc is the company responsible for managing the daytoday operations in the 
philippines on behalf of toledo and its partners  
 
  13 
 
report of the directors 
for the year ended 31 march 2011 
 
the directors present their report with the audited group financial statements for the year ended 31 
march 2011 
 
principal activities and review of business 
 
the principal activity of the group is investment directly and indirectly in and operation of mining 
exploration and development projects the group is comprised of the toledo mining corporation 
plc “the company” its subsidiaries and associated undertakings 
 
during the year the group’s main undertaking was the continuing development of the berong 
nickel project in which the company has a 561 economic interest and the ipilan nickel project 
in which the company has a 52 economic interest 
 
loss before taxation for the year was £4377343 2010  £1982823 and basic loss per share 
including share of associated results was 1016 pence 2010 474 pence 
 
during the year the company incurred a large foreign exchange translation loss principally arising 
on the retranslation of loan investments and receivables held at the balance sheet date the loan 
investments are denominated in us dollars and the exchange loss arose on the unfavourable 
movement of the us dollar to the british pound the total foreign exchange translation loss for the 
year was £905973 2010 loss £693255  
 
the company has continued to advance its prorata share of funds as required to meet the 
ongoing development costs at berong the loan to berong nickel corporation bnc has been 
advanced as an interestfree unsecured loan and has no fixed terms of repayment 
 
under the terms of loan agreements entered into with atlas consolidated mining and development 
corporation acmdc and brooks nickel ventures inc brooks to fund their shares of required 
ongoing development costs respectively at berong and ipilan the company advanced 
us177369  to acmdc 2010 nil and us1140000 to brooks 2010 us845146 during the 
year on 4 july 2011 the company and acmdc reached an agreement for acmdc to repay by 30 
september 2011 the amount of us4449880 in full and final settlement of acmdc loan resulting 
in a charge of 1197893 £746767 included in the loss before taxation for the year  
 
details of these loan agreements and the acmdc settlement are contained in note 13 to the 
financial statements  
 
the berong mine remained on care and maintenance throughout the year no shipments were 
made to year end in may 2011 the mine was returned to production and direct ore shipments 
resumed 
 
the company continued legal action on behalf of bnc against queensland nickel pty arising from 
the attempted cancellation of ore shipments and failure to meet the contractual minimum 300000 
wmt annual offtake through to 2012 
 
on 24 december 2010 the company raised £19 million after costs from the placing of 8307000 
ordinary shares at £023 each by dilution european nickel plc reduced its equity interest in the 
company from 77 to 64 while maintaining its 187  direct interest in bnc owner of the 
berong nickel mine and project immediately following the placing daintree’s holding was 
decreased by dilution to 2201 fevamotinico sarl increased their holding to 2018 and mr j 
cropper increased his holding to 667 
 
further details of the company’s activities for the year are set out in the chairman’s statement and 
in the chief executive officer’s review 
  14 
 
key performance indicators 
 2011 2010 
   
revenue  growth decline 26 70 
loss  before taxation £4377343 £1982823 
loss per share  basic   
 including share of associates’ results 1016 pence 474 pence 
 excluding share of associates’ results   732 pence 243 pence 
 
 
results and dividends 
the loss for the year from ordinary activities before tax amounted to £4377343 2010  
£1982823 the directors do not recommend the payment of a dividend 
 
share capital 
details of share capital are given in note 20 to the financial statements 
 
risk management 
see note 29 to the financial statements 
 
future developments 
the directors anticipate the company’s major future developments will revolve around further 
investment in and development of the berong and ipilan nickel projects in particular the company 
is executing an exploration programme at berong to prove up resources sufficient to support value
adding processing projects the mining at berong will continue along with the direct ore shipping 
which recommenced in may 2011 being supplied from the existing jorc delineated reserves at 
the same time we continue to evaluate and progress strategic valueadded processing 
opportunities for the entire resource managed by the company 
 
principal risks and uncertainties facing the group 
the principal risks faced by the group are as follows 
• the company’s ability to raise sufficient funds through the issue of equity or debt in order to 
continue to fund its share of the group’s planned exploration costs and other operating 
expenditure 
• the exploration for and development of mineral deposits involves significant risks which even a 
combination of careful evaluation experience and knowledge may not eliminate there can be 
no guarantee that the estimates of quantities and grades of minerals disclosed will be available 
to extract  with all mining operations there is uncertainty and therefore risk associated with 
operating parameters and costs resulting from the scaling up of extraction methods tested in 
pilot conditions 
• nonrepayment of significant loans advanced and recovery of interest accrued 
• the operations of the group may be disrupted by a variety of risks and hazards which are 
beyond the control of the group these may include geological geotechnical and seismic 
factors environmental hazards industrial accidents occupational and health hazards technical 
failures labour disputes unusual or unexpected rock formations flooding and extended 
interruptions due to inclement or hazardous weather conditions explosions and other acts  
these risks and hazards could also result in damage to or destruction of production facilities 
personal injury environmental damage business interruption monetary losses and possible 
legal liability 
• the group’s future success is substantially dependent on the continued services and 
performance of its key personnel  their loss or the inability to recruit personnel of the 
appropriate calibre could have a significant adverse effect on the business of the group 
• the selling price of the nickel ore produced by the group’s operations varies in line with 
movements of the price of nickel as quoted on the london metal exchange 
                   
  15 
 
• some or all of the operating and exploration licences issued in respect of the projects may be 
subject to conditions which if not satisfied may lead to the revocation of such licences 
• the group may have minority interests in the companies partnerships and ventures in which it 
invests and may be unable to exercise control over the operations of such companies 
• the operations of the group are located in the philippines where there may be a number of 
associated risks over which it will have no control  these may include economic social or 
political instability or change terrorism hyperinflation currency nonconvertibility or instability 
changes of laws affecting foreign ownership government participation taxation working 
conditions rates of exchange exchange control and exploration licensing 
• the group’s total return and net assets can be significantly affected by currency movements 
 
directors and their interests 
the directors who served during the year and their interests in the company’s ordinary shares 
were as follows 
   5p ordinary shares 
   at 31 march 2011 at 31 march 2010 
     
r eccles   50000 50000 
f pole 
1
 resigned 30 june 2011  
 
20000 20000 
s purkiss     
c thanassoulas     
j cheng 
2
    10972250 9972250 
v kolesnikov appointed 1 february 2011  
 
 
 
1
 held by family interests 
2
 j cheng is a managing director and controlling shareholder of daintree resources ltd  
 
directors’ remuneration 
 
the remuneration of the directors during the year was comprised as follows  
 
year ended  
31 march 2011 
salary 
 
 
£ 
fees 
 
 
£ 
share 
based 
payments  
£ 
total  
emoluments 
 
£ 
consulting 
 services 
 
£ 
total 
 
 
£ 
r eccles  38400  38400 106050 144450 
f pole  26400  26400 43000 69400 
s purkiss  24000  24000  24000 
c thanassoulas  26400  26400 34000 60400 
j cheng  24000  24000  24000 
v kolesnikov 18333 2000  20333 12000 32333 
 18333 141200  159533 195050 354583 
  
year ended  
31 march 2010 
salary 
 
 
£ 
fees 
 
 
£ 
share 
based 
payments  
£ 
total  
emoluments 
 
£ 
consulting 
 services 
 
£ 
total 
 
 
£ 
r eccles  34800  29400 64200  79300  143500 
f pole  25200  29400 54600  58800  113400 
s purkiss  24600   24600  10800  35400 
c thanassoulas  25200   25200  22600  47800 
j cheng  17400   17400   17400 
  127200 58800 186000 171500 357500 
    
the sharebased payments arose on options granted to directors on 14 september 2009 
no options were granted to the directors during the year directors’ options at 31 march 2011 and 
2010 were  16 
 
 
director grant date number exercise 
price 
vesting date expiring date 
r eccles           14092009 150000 50p 14092009 14092012 
f pole 14092009 150000 50p 14092009 14092012 
 
note 
1 at the discretion of the board mr pole’s share options will not expire 90 days after his 
resignation on 30 june 2011 but will continue to vest until their full expiry date 
 
events since the balance sheet date 
subsequent to 31 march 2011 
the company has advanced a further 
• £68700 as us112200 to berong nickel corporation as an interestfree unsecured advance 
under the berong venture agreement 
• £317329 as us520000 to brooks nickel ventures inc to meet that company’s share of 
ipilan project expenditure  
• £248433 as us400000 to berong nickel corporation as an interestfree bridging loan for 
shortterm working capital the bridging loan was repaid in full on 1 august 2011 
the company received 
• £121552 as us195000 from china nickel corporation as an interest free loan the loan 
was repaid in full on 29 july 2011 
 
on 4 july 2011 the company and acmdc reached an agreement for acmdc to repay by 30 
september 2011 the amount of us4449880 in full and final settlement of acmdc loan the first 
of three staged repayments in the amount of us1500000 was received by the company on 29 
july 2011 details of the financial impact of this settlement are set out in note 13 
 
substantial shareholdings 
at 19 august 2011 the following shareholders held 3 or more of the issued share capital of the 
company 
 number of percentage issued 
 ordinary shares ordinary shares 
daintree resources limited 10972250 2201 
fevamotinico sarl   10060000 2018 
j cropper 7966771 1598 
european nickel plc 2501019 502 
barclays wealth retail 1562989 313 
   
 
 
 
  17 
 
corporate governance 
as toledo mining corporation plc is not a fully listed company it is not required to comply with the 
code of best practice published by the committee on the financial aspects of corporate 
governance “the combined code” however the directors do place a high degree of importance 
on ensuring that high standards of corporate governance are maintained as a result most of the 
relevant principles set out in the combined code have been adopted during the period and these 
are summarised below 
 
directors 
the company supports the concept of an effective board leading and controlling the company  
the board is responsible for approving the company’s policies and strategies it meets frequently 
and receives and reviews on a timely basis financial and operating information appropriate to 
being able to discharge its duties directors are free to seek any further information they consider 
necessary all directors submit themselves for reelection every three years by rotation in 
accordance with the articles of association all new appointments to the board are subject to 
resolution of the shareholders at the following annual general meeting 
 
relations with shareholders 
the company values the views of its shareholders and recognises their interest in the company’s 
strategy and performance the board is available to discuss current events with its institutional and 
private shareholders and positively encourages attendance at general meetings 
 
audit committee 
the company has established an audit committee comprised of the nonexecutive directors  it is 
responsible for making recommendations to the board on the appointment of auditors and the 
audit fee it is also responsible for ensuring that the financial performance of the company is 
properly monitored and reported on and receives and reviews reports from management and the 
auditors relating to the interim report the annual report and accounts and the internal control 
systems of the company 
 
nomination committee 
this committee was responsible for overseeing the selection and appointment of directors the 
committee makes recommendations to the board on the appropriate skill mix personal qualities 
expertise and diversity of each position with effect from 1 july 2011 the function of the 
nomination committee has been incorporated into the scope of the remuneration committee 
 
remuneration committee 
the company has established a remuneration committee comprised of the nonexecutive 
directors it is responsible for the review and recommendation of the scale and structure of 
remuneration for key management personnel including any bonus arrangements or the award of 
share options details of the directors’ emoluments are set out in the financial statements  
however there is no separate report of the remuneration committee it is the company’s policy 
that the remuneration of directors should be commensurate with services provided by them to the 
company 
 
internal financial control and risk management 
the directors are responsible for the company’s system of internal financial control and also for 
identifying the major business risks faced by the company  the system of internal financial control 
is designed to provide reasonable but not absolute assurance against material misstatement or 
loss in fulfilling these responsibilities the board has reviewed the effectiveness of the system of 
internal financial control the directors have established procedures for planning budgeting and for 
monitoring on a regular basis the performance of the company and for determining the 
appropriate course of action to manage any major business risks the board has considered the 
need for an internal audit function but has decided the size of the company does not justify it at 
present this decision will be reviewed annually 
 
 
  18 
 
supplier payment policy 
it is the company’s policy to agree terms of payment with all suppliers at the time of the 
transaction and to pay suppliers as and when they fall due for payment or alternatively to agree 
revised terms of payment no distinction is made between different classes of suppliers at the 
year end trade payables amounted to 21 days 2010 18 days 
 
political and charitable donations 
no political or charitable donations were made during the year 
 
indemnity provision 
directors and officers insurance is in place to indemnify the directors against liabilities arising from 
the discharge of their duties as directors of the company 
 
auditors 
length of service of audit assignment partner 
w k sawin has been the audit assignment partner for six years under apb ethical standard 3 
the audit partner should be rotated after five years but may continue for a sixth year in cases where 
changes and developments within the company make a change of audit partner inadvisable at that 
time the audit committee fully endorsed the oneyear extension on the understanding that a 
rotation of audit partner takes place before the next annual audit 
 
reappointment of auditors 
sawin  edwards have indicated their willingness to continue in office  a resolution to reappoint as 
auditors sawin  edwards for the ensuing year will be proposed at the 2011 annual general 
meeting 
 
by order of the board 
 
 
reginald eccles 
chairman 
24 august 2011 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  19 
 
statement of directors’ responsibilities 
for the year ended 31 march 2011 
 
the directors are responsible for preparing the annual report and the financial statements in 
accordance with applicable law and regulations 
 
company law requires the directors to prepare financial statements for each financial year under 
that law the directors have elected to prepare the financial statements in accordance with 
international financial reporting standards and applicable law the financial statements are 
required by law to give a true and fair view of the state of affairs of the company and group and of 
the profit or loss of the group for that period in preparing those financial statements the directors 
are required to 
a select suitable accounting policies and then apply them consistently 
b make judgments and estimates that are reasonable and prudent 
c state whether applicable accounting standards have been followed subject to any material 
departures disclosed and explained in the financial statements 
 
 
d prepare the financial statements on the going concern basis unless it is inappropriate to 
presume that the company and group will continue in business  
 
the directors are responsible for keeping adequate accounting records that disclose with 
reasonable accuracy at any time the financial position of the company and of the group and to 
enable them to ensure that the financial statements comply with the companies act 2006  they 
are also responsible for safeguarding the assets of the company and group and hence for taking 
reasonable steps for the prevention and detection of fraud and other irregularities 
 
the directors are responsible for the maintenance and integrity of the corporate and financial 
information included on the company website  legislation in the united kingdom governing the 
preparation and dissemination of financial statements may differ from legislation in other 
jurisdictions
 
 
the directors confirm that so far as they are aware there is no relevant audit information as 
defined by section 4183 of the companies act 2006 of which the company’s auditors are 
unaware they have taken all the steps that they ought to have taken as directors in order to make 
themselves aware of any relevant audit information and to establish that the companys auditors 
are aware of that information 
 
 
 
 
 
 
 
 
 
 
 
 
  20 
 
independent auditors’ report 
to the shareholders of toledo mining corporation plc 
 
 
we have audited the financial statements of toledo mining corporation plc for the year ended 31 
march 2011 which comprise the consolidated income statement the consolidated statement of 
comprehensive income the consolidated and company balance sheets the consolidated and 
company statements of changes in equity the consolidated and company cash flow 
statements and the related notes numbered 1 to 31 the financial reporting framework that has 
been applied in their preparation is applicable law and international financial reporting standards 
ifrss as adopted by the european union and as regards the parent company financial 
statements as applied in accordance with the provisions of the companies act 2006 
 
this report is made solely to the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 our audit work has been undertaken so that we might state to 
the company’s members those matters we are required to state to them in an auditor’s report and 
for no other purpose to the fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body for our 
audit work for this report or for the opinions we have formed 
 
respective responsibilities of directors and auditors 
as explained more fully in the directors’ responsibility statement set out on page 19 the directors 
are responsible for the preparation of the financial statements and for being satisfied that they give 
a true and fair view 
 
our responsibility is to audit the financial statements in accordance with applicable law and 
international standards on auditing uk and ireland those standards require us to comply with 
the auditing practices board’s ethical standards for auditors 
 
scope of the audit 
an audit involves obtaining evidence about the amounts and disclosures in the financial statements 
sufficient to give reasonable assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an assessment of whether the 
accounting policies are appropriate to the group’s and the company’s circumstances and have 
been consistently applied and adequately disclosed the reasonableness of significant accounting 
estimates made by the directors and the overall presentation of the financial statements in 
addition we read all the financial information and nonfinancial information in the annual report to 
identify material inconsistencies with the audited financial statements if we become aware of any 
apparent material misstatements or inconsistencies we consider the implications for our report 
  
opinion 
in our opinion 
• the financial statements give a true and fair view of the state of the group’s and the parent 
companys affairs as at 31 march 2011 and of the group’s  loss for the year then ended  
• the group financial statements have been properly prepared in accordance with ifrss as 
adopted by the european union  
• the parent company financial statements have  been properly prepared in accordance with 
ifrss as adopted by the european union and as applied in accordance with the provisions of 
the companies act 2006 and 
• the financial statements have been prepared in accordance with the companies act 2006  
 
opinion on other matters prescribed by the companies act 2006 
in our opinion the information given in the directors’ report for the financial year for which the 
financial statements are prepared is consistent with the financial statements 
         
  21 
 
matters on which we are required to report by exception 
we have nothing to report in respect of the following matters where the companies act 2006 
requires us to report to you if in our opinion 
• adequate accounting records have not been kept or returns adequate for our audit have not 
been received from branches not visited by us or 
• the company’s financial statements are not in agreement with the accounting records and 
returns or 
• certain disclosures of directors’ remuneration specified by law are not made or 
• we have not received all of the information and explanations we require for our audit 
 
 
witold k sawin senior statutory auditor              15 southampton place 
for and on behalf of sawin  edwards               london  
statutory auditors                                 wc1a 2aj 
 
24 august 2011 
 
 
 
 
 
 
 
 
 
 
  22 
 
consolidated income statement 
for the year ended 31 march 2011 
 
  year year 
  ended ended 
  31 march 2011 31 march 2010 
 notes £ £ 
    
revenue 3 457949  362098 
    
gross profit  457949 362098 
    
administration expenses  2023351 1567371 
    
foreign exchange losses   946775 693255 
    
other operating income  153179 92711 
    
unrealised losses on noncurrent 
investments 1213 1619527  
    
share of results of associates  1225830 863997 
    
loss from operations 4 5204355 2669814 
    
investment income 8 827012       686991 
    
loss before taxation  4377343 1982823 
    
income tax credit 8          198100 
    
loss for the year  4377343  1784723 
    
attributable to    
equity holders of the parent  4388197 1772838 
minority interest  10854      11885 
       
  4377343  1784723 
loss per share in pence  including 
share of associates’ results     
basic 9 1016 474 
diluted 9 1016 474 
    
loss per share in pence  excluding 
share of associates’ results    
basic 9 732 243 
diluted 9 732 243 
 
the company has taken advantage of section 408 of the companies act 2006 not to publish its 
own income statement account 
  23 
 
consolidated statement of comprehensive income 
for the year ended 31 march 2011 
 
 year  year 
 ended  ended 
 31 march 2011  31 march 2010 
 £  £ 
lossprofit for the year 4377343  1784723 
    
foreign currency translation differences    
for foreign operations 55551  57799 
    
other comprehensive expense income        
for the year        55551    57799 
    
total comprehensive expenseincome     
for the year 4321792  1842522 
    
attributable to    
equity holders of the parent 4357033  1810097 
minority interest 35241  32425 
    
 4321792  1842522 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  24 
 
consolidated balance sheet 
as at 31 march 2011 
 
  31 march 2011 31 march 2010 
 notes £ £ 
assets    
noncurrent assets    
property plant and equipment 10 1184 281 
investment in associated undertakings 12 8435801 10409711 
loans and receivables 13 16127408 14451634 
trade and other receivables 14                40036 
total noncurrent assets  24564393 24901662 
    
current assets    
trade and other receivables 15 964934 901623 
taxation 16 11741 211512 
cash and cash equivalents 17 1877242 3916603 
total current assets  2853917 5029738 
    
total assets  27418310 29931400 
    
equity and liabilities    
    
current liabilities    
trade and other payables 18 678396 682392 
taxation 19   11772                   
total current liabilities      690168      682392 
    
total liabilities      690168      682392 
 
equity     
share capital 20 2492267 2076917 
share premium account 21 28714157 27218897 
sharebased payments reserve 22 193801 233183 
translation reserve  78806 109970 
retained lossprofit  5133449 786052 
equity attributable to equity holders 
of the parent  26345582 28852915 
minority interest 23 382560 396093 
total equity  26728142 29249008 
    
total equity and liabilities  27418310 29931400 
 
the financial statements were approved by the board of directors on 24 august 2011 and signed 
on their behalf by  
 
 
 
r eccles 
director 
  25 
 
company balance sheet 
as at 31 march 2011 
 
 
equity     
share capital 20 2492267 2076917 
share premium account 21 28714157 27218897 
share based payments reserve 22 193801 233183 
retained loss  4857011 1721572 
equity attributable to equity holders of 
the parent  26543214 27807425 
   
total equity  26543214 27807425 
   
total equity and liabilities  27212952 28479986 
 
the financial statements were approved by the board of directors on 24 august 2011 and signed 
on their behalf by  
 
 
r eccles 
director 
toledo mining corporation plc  company number 5055833
  31 march 2011 31 march 2010 
 notes £ £ 
assets    
noncurrent assets    
property plant and equipment 10 1184 281 
investment in subsidiary undertaking 11 10286 10286 
investment in associated undertakings 12 9122027 9870107 
loans and receivables 13 16127408 14451634   
trade and other receivables 14         40036 
total noncurrent assets  25260905 24372344 
    
current assets    
trade and other receivables 15 81035 43549 
taxation 16 11741 211512 
cash and cash equivalents 17 1859271   3852581 
total current assets  1952047   4107642 
    
total assets  27212952 28479986 
    
equity and liabilities    
    
current liabilities    
trade and other payables 18 657966 672561 
taxation 19   11772                               
total current liabilities  669738      672561 
    
total liabilities  669738      672561  26 
 
consolidated statement of changes in equity 
for the year ended 31 march 2011  
 
 
 
   share   trans  
   based retained  lation  
31 march 2011 share share payments profit  minority exchange  
 capital premium reserve loss interest reserve total 
 £ £ £ £ £ £ £ 
balance at 1 april 
2010 2076917 27218897 233183 786052 396093 109970 29249008 
        
total 
comprehensive        
expense for the 
year        
        
profitloss    4388197 10854  4377343 
        
total other         
comprehensive  
expense     24387 31164 55551 
        
total 
comprehensive        
expense for the 
year                                          4388197 13533 31164 4432894 
        
        
transactions with        
owners         
issue of new 
shares 415350 1495260     1910610 
        
transfer from 
reserve   
 
40800 40800    
        
share options 
granted in year   
 
1418    1418 
        
balance at 31 
march 2011 2492267 28714157 193801 5133449 382560 78806 26728142 
 
 
 
   
        
 
 
   
  27 
 
consolidated statement of changes in equity continued 
for the year ended 31 march 2011 
 
 
 
   share   trans  
   based retained  lation  
31 march 2010 share share payments profit minority exchange  
 capital premium reserve loss interest reserve total 
 £ £ £ £ £ £ £ 
balance at 1 april 
2009 1476917 24570675 307899 795810 433352 142395 27727048 
        
total 
comprehensive        
expense for the 
year        
        
loss    1772838 11885  1784723 
        
total other         
comprehensive  
expense     25374 32425 57799 
        
total 
comprehensive        
expense for the 
year                                          1772838 37259 32425 1842522 
        
        
transactions with        
owners         
issue of new 
shares 600000 2648222     3248222 
        
transfer from 
reserve   
 
190976 190976    
        
share options 
granted in year   
 
116260    116260 
        
balance at 31 
march 2010 2076917 27218897 233183 786052 396093 109970 29249008 
 
 
 
 
 
 
 
   
  28 
 
company statement of changes in equity  
for the year ended 31 march 2011 
 
 
 
 
  
share 
based 
 
 
31 march 2011 share share payments retained  
 capital premium reserve loss total 
 £ £ £ £ £ 
balance at 1 april  
2010 2076917 27218897 233183 1721572 27807425 
      
total comprehensive      
expense for the year      
loss    3176239 3176239 
      
transactions with      
owners       
issue of new shares 415350 1495260   1910610 
      
transfer from reserve   40800 40800  
      
share options granted 
in year   
 
1418  1418 
      
balance at 31 march 
2011 2492267 28714157 193801 4857011 26543214 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  29 
 
company statement of changes in equity continued 
for the year ended 31 march 2011 
 
 
 
  
share 
based   
31 march 2010 share share payments retained  
 capital premium reserve loss total 
 £ £ £ £ £ 
balance at 1 april  
2009 1476917 24570675 307899 1018895 25336596 
      
total comprehensive      
expense for the year      
loss    893653 893653 
      
transactions with      
owners       
issue of new shares 600000 2648222   3248222 
      
transfer from reserve   190976 190976  
      
share options granted 
in year   
 
116260  116260 
      
balance at 31 march 
2010 2076917 27218897 233183 1721572 27807425 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  30 
 
consolidated cash flow statement 
for the year ended 31 march 2011 
 
 
  year year 
  ended  ended 
  31 march 2011 31 march 2010 
 notes £ £ 
    
net cash outflow from operating 
activities 
24 
1454070 1291874  
    
investing activities    
investment income  17813 22560 
investments  124680  
loan investments advanced  2586390 747723 
    
net cash outflow from investing activities  2693257   725163 
    
financing activities    
issue of equity share capital  1910610 3248222 
      
net cash inflow from financing activities  1910610   3248222 
    
taxation    
refundpayment of corporation tax  197356 197356 
    
net increasedecrease in cash and cash 
equivalents 
 
2039361 1033829 
    
cash and cash equivalents at 1 april  3916603 2882774 
    
cash and cash equivalents at 31 march 17 1877242   3916603 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  31 
 
company cash flow statement 
for the year ended 31 march 2011 
 
 
  year year 
  ended  ended 
  31 march 2011 31 march 2010 
 notes £ £ 
    
net cash outflow from operating 
activities 
 
24 1408019 1185417 
    
investing activities    
investment income  17813 22560 
investments  124680  
loan investments advanced  2586390 747723 
    
net cash outflow from investing activities  2693257   725163 
    
financing activities    
issue of equity share capital  1910610 3248222 
    
net cash inflow from financing activities  1910610  3248222 
    
taxation    
refundpayment of corporation tax  197356 197356 
    
net increasedecrease  in cash and 
cash equivalents 
 
1993310 1140286 
    
cash and cash equivalents at 1 april   3852581 2712295 
    
cash and cash equivalents at 31 march  17 1859271 3852581 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  32 
 
notes to the financial statements 
for the year ended 31 march 2011 
 
1 general information 
 
toledo mining corporation plc is a company incorporated in england and wales under the 
companies act 1985 the company’s registered office is ground floor 11 albemarle street 
london w1s 4hh the registration number of the company is 5055833 
 
the principal activity of the group is the investment in and exploration and development of 
mining projects specifically in the philippines 
 
the group’s principal activity is carried out in us dollars the financial statements are 
presented in pounds sterling as this is the currency of the country the uk where the 
company is incorporated and its ordinary shares are admitted for trading 
 
the board of directors has authorised the issue of these financial statements on the date of 
the statement as set out on page 18 
 
2 accounting policies 
 
 basis of accounting 
the financial statements have been prepared in accordance with international financial 
reporting standards ifrss 
 
 the financial statements have been prepared on the historical cost basis except that certain 
financial instruments are accounted for at fair values the principal accounting policies 
adopted are set out below 
  
 new standards applied 
the group has applied the following relevant standards which are effective for annual 
reporting periods beginning on or after 1 april 2010 
 
ifrs 2 revised   sharebased payment vesting conditions and 
cancellations      
ifrs 3 revised   business combinations 
ifrs 7   financial instruments  disclosures 
ifrs 8   operating segments                                                                  
ias 1 revised and amended   presentation of financial statements                           
ias 7 amended   statement of cash flows 
ias 16 amended   property plant and equipment 
ias 19 amended   employee benefits 
ias 23 revised and amended   borrowing costs                                                                           
ias 27 amended   consolidated and separate financial statements 
ias 28 amended   investments in associates 
ias 32 amended   financial instruments  presentation 
ias 36 amended   impairment of assets 
ias 38 amended   intangible assets 
ias 39 amended   financial instruments recognition and measurement  33 
 
the adoption of these standards did not have a material impact on the group and 
company’s financial position or performance ias 1 revised resulted in a change in the 
manner in which the statements are presented 
 
new standards not applied 
the iasb has issued the following relevant standards which are not yet effective and 
have not been adopted early for these financial statements 
 
ifrs 3 amended  business combinations effective date 1 july 2010 
ifrs 7 amended  disclosures effective date 1 january 2011 
ifrs 9  financial instruments effective date 1 january 
2013 
ias 1 amended  presentation of financial statements effective date 
1 january 2011 
ias 24 revised  related party disclosure effective date 1 january 
2011 
ias 27 amended  consolidated and separate financial statements 
effective date 1 july 2010 
ias 34 amended  interim financial reporting effective date 1 january 
2011 
  
the directors do not anticipate that adoption of these standards will have a material impact on 
the group and company’s financial position or performance 
 
 going concern 
 the financial statements have been prepared on a going concern basis which contemplates 
continuity of normal business activities and the realisation of assets and settlement of liabilities 
in the ordinary course of business 
 
 the directors believe that it is appropriate to prepare the financial report on a going concern 
basis as they are confident that the company will be able to raise additional funds through 
further debt or equity raisings when required the directors are of the opinion that the 
proposed debt or equity raising measures and the existing cash resources will provide 
sufficient funds to enable the company to continue its operations for at least the next 12 
months 
 
 basis of consolidation 
 the consolidated financial statements incorporate the financial statements of the company 
and all group undertakings control is achieved when the company has the power to govern 
the financial and operating policies of an investee entity so as to obtain benefits from its 
activities 
 
 on acquisition the assets and liabilities and contingent liabilities of a subsidiary are measured 
at their fair values at the date of acquisition any excess of the cost of acquisition over the fair 
value of the identifiable net assets acquired is recognised as goodwill  
 
 any deficiency of the cost of acquisition below the fair value of the identifiable net assets 
acquired ie discount on acquisition is credited to the income statement in the period of 
acquisition the interest of minority shareholders is stated at the minority’s proportion of the 
fair values of the assets and liabilities recognised subsequently any losses applicable to the 
minority interest in excess of the minority interest are allocated against the interests of the 
parent  34 
 
the results of subsidiaries acquired or disposed of during the year are included in the 
consolidated income statement from the effective date of acquisition or up to the effective date 
of disposal as appropriate 
 
 where necessary adjustments are made to the financial statements of subsidiaries to bring 
the accounting policies used into line with those used by the group 
 
 all intragroup transactions balances income and expenses are eliminated on consolidation 
  
 investments in associates 
 an associate is an entity over which the group is in a position to exercise significant influence 
but not control or joint control through participation in the financial and operating policy 
decisions of the investee 
 
 the results and assets and liabilities of associates are incorporated in these financial 
statements using the equity method of accounting investments in associates are carried in the 
balance sheet at cost as adjusted by postacquisition changes in the group’s share of the net 
assets of the associate less any impairment in the value of individual investments losses of 
the associates in excess of the group’s interest in those associates are not recognised 
 
 where a group company transacts with an associate of the group unrealised profits and 
losses are eliminated to the extent of the group’s interest in the relevant associate losses 
may provide evidence of an impairment of the asset transferred in which case appropriate 
provision is made for impairment 
 
 the group and its associated undertakings have complied with the requirements of ifrs 6 
exploration for and evaluation of mineral resources  
 
 upon commencement of commercial production operation of a mining property the investment 
in the associate company relating to that property is amortised on the basis of ore body 
extracted as a proportion of the ore body estimate of that property 
 
 revenue recognition 
revenue and other operating income represent the provision of consultancy management 
and office services for the year 
 
interest income is accrued on a time basis by reference to the principal outstanding and at the 
effective interest rate applicable which is the rate that exactly discounts estimated future cash 
receipts through the expected life of the financial asset to that asset’s net carrying amount 
 
losses on current asset investments represent realised and unrealised losses 
 
foreign currencies 
transactions in currencies other than pounds sterling are recorded at the rates of exchange 
prevailing on the dates of the individual transactions for practical reasons a rate that 
approximates to the actual rate at the date of the transaction is often used at each balance 
sheet date assets and liabilities that are denominated in foreign currencies are retranslated at 
the rates prevailing on the balance sheet date gains and losses arising on retranslation are 
included in net profit or loss for the period 
  35 
 
on consolidation the assets and liabilities of the group’s overseas operations are translated 
at exchange rates prevailing on the balance sheet date income and expense items are 
translated at the average exchange rates for the period unless exchange rates fluctuate 
significantly exchange differences arising if any are classified as equity and transferred to 
the group’s translation reserve such translation differences are recognised as income or as 
expenses in the period in which the operation is disposed of 
 
the following rates of exchange have been applied 
 2011 2010 
1 us dollar to 1 british  pound   
closing rate 06234 06637 
average rate 06433 06276 
1 philippine peso to 1 british pound   
closing rate 00144 00147 
average rate 00144 00135 
 
 taxation 
the income tax expense represents the sum of the tax currently payable and deferred tax  
the tax currently payable is based on taxable profit for the year taxable profit differs from net 
profit as reported in the income statement because it excludes items of income or expense 
that are taxable or deductible in other years and it further excludes items that are never 
taxable or deductible the group’s liability for current tax is calculated using tax rates that 
have been enacted or substantively enacted by the balance sheet date 
  
deferred tax is the tax expected to be payable or recoverable on differences between the 
carrying amounts of assets and liabilities in the financial statements and the corresponding tax 
bases used in the computation of taxable profit and is accounted for using the balance sheet 
liability method deferred tax liabilities are generally recognised for all taxable temporary 
differences and deferred tax assets are recognised to the extent that it is probable that taxable 
profits will be available against which deductible temporary differences can be utilised such 
assets and liabilities are not recognised if the temporary difference arises from the original 
recognition of other assets and liabilities in a transaction that affects neither the tax profit nor 
the accounting profit  
 
the carrying amount of deferred tax assets is reviewed at each balance sheet date and 
reduced to the extent that it is no longer probable that sufficient taxable profits will be available 
to allow all or part of the asset to be recovered 
 
deferred tax is calculated at the tax rates that are expected to apply in the period when the 
liability is settled or the asset is realised deferred tax is charged or credited in the income 
statement except when it relates to items charged or credited directly to equity in which case 
the deferred tax is also dealt with in equity 
 
no recognition has been made for the deferred tax asset arising in respect of current losses as 
the directors are of the opinion that this may not be realisable in the foreseeable future 
  36 
 
 financial instruments 
financial assets and financial liabilities are recognised on the balance sheet when the 
company becomes a party to the contractual provisions of the instrument 
 
 noncurrent intangible assets 
noncurrent intangible assets are shown at cost less any provisions made in respect of 
impairment  
 
 asset impairments 
assets are reviewed for impairment at each balance sheet date or if events or changes in 
circumstances indicate that the carrying amount may not be recoverable when a review is 
conducted the recoverable amount is assessed by reference to the net present value of 
expected future cash flows of the relevant income generating unit or disposal value if higher 
 
if an asset is impaired a provision is made to reduce the carrying amount to its estimated 
recoverable amount 
 
 noncurrent asset investments 
loan investments are shown at cost less provision for any permanent diminution in value 
loan investments are recognised as an asset when sums are advanced 
 
property plant and equipment 
office equipment and furniture are shown at cost less accumulated depreciation and any 
recognised impairment loss depreciation is charged so as to write off the cost of assets over 
their estimated useful lives using the straight line method on the following basis 
 
office furniture and fittings  33  50 
computer and office equipment 33  100 
 
cash and cash equivalents 
cash and cash equivalents comprise cash held at bank and on short term deposits 
 
trade payables 
trade payables are not interest bearing and are stated at their nominal value 
 
trade receivables  
trade receivables do not carry any interest and are stated at their nominal value as reduced 
by appropriate allowances for estimated irrecoverable amounts 
 
investments 
investments are recognised and derecognised on a trade date where a purchase or sale of an 
investment is under a contract whose terms require delivery of the investment within the 
timeframe established by the market concerned and are initially measured at cost including 
transaction costs  
 
investments are classified as heldfortrading and are measured at subsequent reporting dates 
at fair value where securities are held for trading purposes gains and losses arising from 
changes in fair value are included in net profit or loss for the period 
 
equity instruments 
equity instruments issued by the company are recorded at the proceeds received except 
where those proceeds appear to be less than the fair value of the equity instruments issued in 
which case the equity instruments are recorded at fair value the difference between the 
proceeds received and the fair value is reflected in the share based payments reserve 
 
the costs of issuing new equity are charged against the share premium account 
  37 
 
 operating leases 
rental costs under operating leases are charged to the income statement on a straight line 
basis over the term of the lease where an incentive to sign the lease has been taken the 
incentive is spread on a straight line basis over the lease term 
 
pension costs 
the company makes defined contributions to the independent pension scheme of its 
employees 
 
sharebased payments 
the group has applied the requirements of ifrs 2 sharebased payments 
 
the group issues equitysettled sharebased payments to directors staff and certain 
professional advisors of the group equitysettled sharebased payments are measured at fair 
value at the date of grant the fair value determined at the grant date of the equitysettled 
sharebased payment is expensed on a straightline basis over the vesting period based on 
the group’s estimate of shares that will eventually vest 
 
fair value is measured using a blackscholes model the expected life used in the model has 
been adjusted based on management’s best estimate for the effects of nontransferability 
exercise restrictions and behavioural considerations 
 
       critical accounting judgments and key sources of estimation uncertainty  
in the process of applying the group’s accounting policies above management necessarily 
makes judgments and estimates that have a significant effect on the amounts recognised in 
the financial statements changes in the assumptions underlying the estimates could result in 
a significant impact to the financial statements the most critical of these accounting judgment 
and estimation areas are as follows 
 
 impairment of assets   
the group reviews the carrying amounts of assets as at each balance sheet date or if events 
or changes in circumstance indicate that the carrying amount may not be recoverable to 
determine whether there is any indication of impairment if any such indication exists the 
asset’s recoverable amount or value in use is estimated determining the value in use requires 
the determination of future cash flows expected to be generated from the continued use and 
ultimate disposal of the asset this requires the company to make estimates and assumptions 
that can materially affect the financial statements any resulting impairment loss could have a 
material adverse impact on the group’s financial position and results of operations 
 
 
 
  38 
 
3 segmental analysis 
 
the turnover and loss before tax are attributable to the principal activities of the group  
 
segmental information on a geographical basis is set out below 
 
 year ended 31 march 2011 
  
 uk philippines china total 
 £ £ £ £ 
revenue          7299                          450650 457949 
     
profitloss for the year 3176239                            24725 3151514 
     
share of associates’ results                    1225830                   1225830 
     
depreciationamortisation 612                                     612 
     
total assets 1045018 25471424 901868 27418310 
     
total liabilities 233358  436380      20429  690168 
     
loan investment additions                  1800454                  1800454 
 
year ended 31 march 2010 
  
 uk philippines china total 
 £ £ £ £ 
revenue           6380                        355718     362098 
     
loss for the year  893653                       27073   920726 
     
share of associates’ results                        863997                    863997 
 
depreciation           1348                                                                                           1348 
     
total assets 4147678 24861626  922096 29931400 
     
total liabilities      207971      464590       9831   682392 
     
loan investment additions                     1410568                   1410568 
 
details of associated companies’ results are shown in note 30     
     
 
 
 
 
 
 
 
 
 
 
  39 
 
4 loss from operations 
  
 loss from operations is stated after charging 
 
 year ended year ended 
 31 march 2011 31 march 2010 
 £ £ 
auditors remuneration   
auditing of the financial statements of the company   
pursuant to legislation 48490 43690 
  as reporting accountants  18750 
  taxation compliance 1950 820 
audit fees  other auditor 24316 15067 
operating lease  office rent 69186 69186 
foreign exchange losses  946775 693255 
directors’ fees and emoluments see note 6 159533 247205 
depreciation         612 1348 
  
5 particulars of employees 
 
 the average number of staff employed by the group during the financial year amounted to 
  
 year ended year ended 
 31 march 2011 31 march 2010 
 no no 
administrative staff           1           2 
 
 the aggregate costs of the above were 
 £ £ 
wages and salaries 29664 43404 
social security costs 4450 1115 
share based payments  1418 57640 
     
 35532 99929 
  
sharebased payments charge relates to share options granted during the year to 
management and employees of tmm management inc in the philippines 
 
6 directors’ emoluments and fees 
 
the company also employed six 2010 five directors during the year with aggregate 
emoluments in respect of qualifying services as follows 
 
 year ended year ended 
 31 march 2011 31 march 2010 
 £ £ 
directors’ emoluments 42333 25200 
directors’ fees 54800 42600 
amounts paid to third parties for the provision of 
directors’ services 62400 59400 
sharebased payments and related costs  58800 
   
 159533 186000 
 
 £ £ 
highest paid director 38400 64200 
  40 
 
amounts paid in respect of professional consulting services are not included above these are 
disclosed in the report of the directors on page 15 and the related party transactions note 26 
discloses the full amounts paid to directors directly and to third parties for directors’ fees 
consulting fees and expenses  
 
7 investment income 
 
year ended year ended 
31 march 2011  31 march 2010 
  group  group 
  £  £ 
interest on bank deposits  17813  24146 
interest on loan investments   809199  662845 
     
  827012   686991 
 
8    income tax expense 
 
 group group 
 year ended year ended 
 31 march 2011 31 march 2010 
 £ £ 
taxation credit  198100 
   
current tax reconciliation   
loss for the year before taxation 4377343 1982823 
   
 
   
   
    group group 
 year ended year ended 
 31 march 2011 31 march 2010 
 £ £ 
loss for the year multiplied by standard 
rate of uk corporation tax 28 
1225656 
 
555190 
 
effects of 
expenses not deductible for tax purposes 454584 16624 
excess of capital allowance over depreciation 3655 4299 
overseas lossprofit 6923 7581 
share of associates’ results 343232 241919 
increase in potential tax credits 438418 95265 
   
tax  credit  198100          
   
potential uk tax credits available multiplied by   
standard rate of corporation tax 28 818527 217296 
   
 
no recognition has been made of the deferred tax asset in respect of the losses shown above 
as the directors are of the opinion that this may not be realisable in the foreseeable future 
  41 
 
9 loss per share 
  
 including share of associates’ results 
loss per share has been calculated by dividing the loss for the year after taxation including 
share of associates’ losses of £1225830 2010 £863997 attributable to the equity holders of 
the parent company of £4388197 2010  £1772838 by the weighted average number of 
shares in issue at the year end of 43176974 2010 37439972 
 
diluted loss per share has been calculated using the weighted average number of shares in 
issue at the year end diluted for the effect of share options in existence at the year end of 
665000 2010 790000 
 
excluding share of associates’ results 
loss per share has been calculated by dividing the loss for the year after taxation excluding 
share of associates losses of £1225830 2010 £863997 attributable to the equity holders of 
the parent company of £3162367 2010 £908841 by the weighted average number of 
shares in issue at the year end of 43176974 2010 37439972 
 
diluted loss per share has been calculated using the weighted average number of shares in 
issue at the year end diluted for the effect of share options in existence at the year end of 
665000 2010 790000  42 
 
 
 
10 property plant and equipment 
 company and group 
 
 computer and 
 office equipment 
furniture fixtures 
 and fittings 
total 
 £ £ £ 
cost    
balance at 1 april 2010 39986 38105 78091 
additions in year 1515  1515 
    
balance at 31 march 2011  41501 38105 79606 
    
depreciation    
balance at 1 april 2010 39705 38105 77810 
charge for the year 612  612 
    
balance at 31 march 2011 40317 38105 78422 
    
net book value    
at 31 march 2011 1184  1184 
    
at 31 march 2010 281  281 
  
computer and 
 office equipment 
 
furniture fixtures 
 and fittings 
 
total 
 £ £ £ 
cost    
balance at 1 april 2009 39986 38105 78091 
    
balance at 31 march 2010  39986 38105 78091 
    
depreciation    
balance at 1 april 2009 39102 37360 76462 
charge for the year 603 745 1348 
    
balance at 31 march 2010 39705 38105 77810 
    
net book value    
at 31 march 2010       281                  281 
    
at 31 march 2009       884       745   1629 
 
 
 
 
 
  43 
 
 11 investment in subsidiary undertakings 
  
company 2011 2010 
 £ £ 
cost   
balance brought forward 10286 10286 
   
balance carried forward 10286 10286 
 
subsidiary country of holding proportion of  nature of 
undertaking incorporation  voting shares 
held 
business 
     
china nickel  
corporation 
british virgin 
islands 
ordinary 
shares 561 
consultancy 
services 
china nickel   
steel corporation 
british virgin 
islands 
ordinary 
shares 100 
 
dormant 
 
 
12  investment in associated undertakings 
  
group 2011 2010 
 £ £ 
cost   
balance brought forward 11005854 11869851 
addition 124680  
share of associate undertakings’ results     1225830     863997  
       
balance carried forward 9904704 11005854 
 
amortisationimpairment   
balance brought forward 596143 596143 
impairment charge 872760  
   
balance carried forward 1468903 596143 
 
net book value 8435801 10409711 
 
   
company 2011 2010 
 £ £ 
cost   
balance brought forward 10466250 10466250 
addition 124680  
                               
balance carried forward 10590930 10466250 
 
amortisationimpairment   
balance brought forward 596143 596143 
impairment charge 872760  
    
balance carried forward 1468903 596143 
 
net book value 9122027 9870107 
  44 
 
13 loans and receivables  
 
company and group 2011 2010 
 £ £ 
balance brought forward 14451634 13755986 
additions 3395590 1410568 
impairment charge 746767  
translation exchange movement 973049 714920 
balance carried forward 16127408 14451634 
 
in april 2006 the company subscribed for up to us5 million in a threeyear loan note in 
atlas consolidated mining and development corporation acmdc secured over acmdc’s 
share of the berong nickel project the note bears interest at the rate of 10 cumulative per 
annum and was repayable three years from each drawdown it  is repayable out of acmdc’s 
share of the berong nickel project cash flow or is convertible into acmdc shares or repayable 
in us cash at the election of the company 
 
the principal amount advanced at 31 march 2011 was us4967676 2010 us4803616 
on 7 july 2010 the agreement was amended to extend repayments to four years from each 
drawdown on 4 july 2011 the company accepted an offer to settle the loan note in the 
amount of us4499880 to be paid by acmdc in three equal instalments at the ends of july 
august and september 2011 the first instalment of us1500000 was received on 29 july 
2011 the balance at 31 march 2011 of us5693464 was written down to us4499880 
resulting in an impairment charge for the year of us1193584 £746767     
   
in 2007 the company entered into an agreement to make a loan facility available to brooks 
nickel ventures inc brooks of up to us25 million secured over brooks’ share of the ipilan 
nickel project this facility was subsequently increased in 2007 and in 2010 to us10 million 
and terms extended from three to four years from each drawdown to meet continuing pre
operational exploration and working capital requirements the loan bears interest at 10 
cumulative per annum and is repayable out of brooks’ share of the ipilan nickel project 
operating cash flow the principal amount advanced at 31 march 2011 was us9314930 
2010 us8174930 at 31 march 2011 amounts totalling us3206602 made up of 
principal drawn of us2137421 and accrued interest of us1069181 were due to be repaid 
the company is in discussions with brooks in respect of addressing the repayments falling 
due  
 
 company and group 
as repayments are linked to successful commercial exploitation of the berong and ipilan nickel 
projects respectively the directors are of the opinion that it would be impractical to predict 
when these repayments might occur the receivables are therefore shown at historical cost 
 
under the celestial joint venture agreement the company has the option to take a 40 
holding in celestial nickel mining and exploration corporation cnmec in august 2007 the 
board agreed to an advance of us900000 against the option exercise amount if the 
company decides not to exercise the option to purchase or is prevented by any cause from 
exercising the option to purchase then the borrowers are required to reimburse the advance 
the advances are interestfree and guaranteed by cnmec but are otherwise unsecured due 
to the uncertainty as to when or if the company will exercise this option the receivable has 
been shown at historical cost 
 
under the berong venture agreement the company has advanced funds to berong nickel 
corporation bnc to meet ongoing mine development costs the total amount advanced at 
31 march 2011 was us7953005 2010 us5554181 the loan amounts advanced are 
interestfree unsecured and have no fixed terms of repayment  as repayments are linked to 
successful commercial exploitation of the berong nickel project the directors are of the opinion 
that it would be impractical to predict when this receivable will be repaid and it is therefore 
shown at historical cost  45 
 
14 trade and other receivables – noncurrent 
 company and group 
 
 2011 2010 
  £ £ 
rent deposit           40036 
 
15 trade and other receivables – current 
 
 group company group company 
 2011 2011 2010 2010 
 £ £ £ £ 
trade receivables 903771 19872 879887 21813 
rent deposit 40063 40063   
prepayments and accrued income  21100   21100   21736   21736 
 964934 81035 901623   43549 
 
16 taxation 
 
 group company group company 
 2011 2011 2010 2010 
 £ £ £ £ 
corporation tax recoverable   197356 197356 
net payroll taxes recoverable 5060 5060 6314 6314 
vat recoverable 6681 6681 7842 7842 
     
 11741 11741 211512 211512 
 
17 cash and cash equivalents 
 
 group company group company 
 2011 2011 2010 2010 
 £ £ £ £ 
cash held in trust bank account 13381 13381 14246 14246 
cash at bank and in hand 1863861 1845890 3902357 3838335 
 1877242 1859271 3916603 3852581 
 
 
18 trade and other payables 
 
 group company group company 
 2011 2011 2010 2010 
 £ £ £ £ 
trade payables 98111 81419 84639 74808 
accruals 143905 140167 133163 133163 
other payables 436380 436380 464590 464590 
 678396 657966 682392 672561 
 
other payables relate to the company’s remaining expenditure commitments which have been 
capitalised as part of the cost of acquiring the equity interests in the fixed asset investments as 
follows 
 group company group company 
 2011 2011 2010 2010 
 £ £ £ £ 
ulugan nickel project 436380 436380 464590 464590 
  46 
 
19 taxation liabilities 
 
 group company group company 
 2011 2011 2010 2010 
 £ £ £ £ 
payroll taxes 11772 11772   
corporation tax     
     
 11772 11772                         
 
20 called up share capital 
 company and group  
 
 number £ number £ 
ordinary shares of 5p each 2011 2011 2010 2010 
     
authorised 55879500 2793975 55879500 2793975 
     
allotted and fully paid 49845333 2492267 41538333 2076917 
 
 the company has one class of ordinary shares which carry no right to fixed income 
 
on 18 january 2011 the company undertook a placement of 8307000 ordinary shares at 23 
pence per share  
 
share options in existence at 31 march 2011 are as follows 
 
number description exercise price expiry date 
150000 ordinary shares  150 30 november 2011 
300000 ordinary shares £050 13 september 2012 
140000 ordinary shares  £050 11 february 2013 
  75000 ordinary shares  £050 9 november 2013 
 
the share options vested on the date of grant and are capable of being exercised at any 
time from the date of grant until the earlier of  
1 the third anniversary of the date of grant  
2 12 months after the death of the optionholder or 
3 90 days after the optionholder ceases to hold office or employment with the company or 
any subsidiary of the company other than at the discretion of the board or by reason of 
his death 
 
21 share premium account 
 
company and group   
 2011 2010 
 £ £ 
balance brought forward 27218897 24570675 
premium arising on issue of equity shares 1495260 2648222 
       
balance carried forward 28714157 27218897 
 
 
 
  47 
 
22 sharebased payments reserve 
company and group   
 2011  2010 
 £ £ 
balance brought forward 233183 307899 
share options granted in year  1418 116260 
transfer to retained loss 40800 190976 
     
balance carried forward 193801  233183 
 
the sharebased payments reserve relates to share options granted to directors staff and 
certain professional advisors 
  
the share options vest on the date of grant and are capable of being exercised at any time 
between the date of grant and the expiry date share options granted since 1 april 2009 shall 
expire on the earlier of the date of expiry and 90 days after the date the grantee ceases to be a 
director or employee of the company or of its associate this can be amended at the discretion 
of the directors 
 
 movement on share options was as follows 
   
 2011 2010 
 no of options no of options 
options at beginning of year 790000 395000 
options granted 75000 640000 
options lapsed 200000 245000 
   
options at end of year 665000    790000 
   
   
options exercisable at year end 665000 790000 
 
weighted average exercise prices were as follows   
options at beginning of year £066 £150 
options granted £050 £047 
options lapsed £040 £150 
options at end of year £073 £066 
options exercisable at year end £073 £066 
 
 2011 2010 
weighted average remaining contracted life of options 
outstanding at the year end years 15 28 
   
exercise prices of options outstanding at the year end   
 no of options no of options 
exercise price per share   
£040  200000 
£050 515000 440000 
£150  150000  150000 
  665000  790000 
   
weighted average fair value of options granted in the 
period £002         £018 
 
 
  48 
 
the option pricing model used in calculating the fair value of options granted was the black 
scholes model  
 
inputs into the model for share options granted in the year were as follows 
  
 2011 2010 
weighted average share price £023 £033 
weighted average exercise price £050 £047 
average expected volatility 44 89 
average option life years 30 36  
average riskfree rate  063 267 
expected dividends nil nil 
 
expected volatility was determined by calculating the actual volatility of the company’s share   
price based on historical movement        
  
23 minority interest – group 
 
 the minority interest is in relation to a 439 share in china nickel corporation  
 
 2011 2010 
 £ £ 
share of current assets 391530 400409 
share of current liabilities 8970   4316 
 382560  396093 
 
 
  49 
 
24 cash flows from operating activities 
  
group 2011 2010 
 £ £ 
net lossprofit from operations 5204355 2669814 
adjustments for   
share of associate undertakings’ losses  1225830 863997 
unrealised losses on investments 1619527  
foreign exchange movements 917497 657121 
depreciation 612 1348 
sharebased payments charge 1418 116260 
   
operating cash flows before movements in working 
capital 
 
1439471 
 
1031088 
capital expenditure 1515  
decreaseincrease in trade and other receivables 20860 52934 
decreaseincrease in trade and other payables         7776    313720 
cash outflow from operations  1454070 1291874 
 
   
company 2011 2010 
 £ £ 
net  lossprofit from operations 4003251 1778741 
adjustments for   
unrealised losses on investments 1619527  
foreign exchange movements 973049 714919 
amortisation   
depreciation 612 1348 
sharebased payments charge 1418 116260 
loss on disposal of fixed assets   
   
 1408645 946214 
capital expenditure 1515  
increasedecrease in trade and other receivables 4964 12551 
decreaseincrease in trade and other payables 2823 251754 
   
cash outflow from operations 1408019 1185417 
 
25 controlling party 
 
 there is no ultimate controlling party of the company 
 
26 related party transactions 
 
the company was charged £155437 2010 £120708 by metal analysis limited for the 
provision of services of r eccles £38600 2010 £34800 for services as chairman and 
director of the company and £106050 2010 £78300 for services as a consultant to the 
company metal analysis limited also incurred expenses and recharged to the company 
£10787 2010 £7608 
 
at the year end the company owed £2800 2010 £4000 to metal analysis limited 
 
during the year the company was charged £nil 2010 £12600 by bhm limited for the 
provision of services of s purkiss £nil 2010£12600 for services as director of the company 
and £nil 2010 £nil for services as a consultant to the company 
 
  50 
 
at the year end and at 31 march 2010 the company owed £nil to bhm limited 
 
during the year the company was charged £24000 2010 £22800 by consolidated mines  
metals limited for the provision of services of s purkiss £24000 2010 £12000 for services 
as director of the company and £nil 2010 £10800 for services as a consultant to the 
company 
 
at the year end the company owed £2000 2010£11600 to consolidated mines  metals 
limited 
 
the company was charged £77748 2010 £92476 by f pole £26400 2010 £25200 for 
services as director of the company and £43000 2010 £58800 for services as a consultant 
to the company f pole also incurred expenses and recharged to the company £8348 2010 
£8476 
 
at the year end the company owed £12400 2010 £12100 to f pole 
 
the company was charged £60400 2010 £48364 by c thanassoulas £26400 2010 
£25200 for services as director of the company and £34000 2010 £22600 for services as 
a consultant to the company c thanassoulas also incurred expenses and recharged to the 
company £nil 2010 £564 
 
at the year end the company owed £2400 2010 £7364 to c thanassoulas 
 
simon purkiss resigned as executive deputy chairman and a director of european nickel plc 
on 31 january 2011 
 
atlas consolidated mining and development corporation acmdc and european nickel plc 
are joint venture partners with the company under the berong venture agreement 
 
brooks nickel ventures inc brooks and celestial nickel mining and exploration corporation 
cnmec are joint venture partners with the company under the celestialipilan venture 
agreement   
 
atlas consolidated mining and development corporation acmdc is joint venture partner 
with the company under the ulugan venture agreement 
 
under the berong celestial and ulugan venture agreements the company has through the 
expenditure of qualifying costs of £10464306 acquired equity interests in the following 
philippines’ registered companies 
 
  
tmm 
management 
inc 
ulugan 
resources 
holdings 
inc 
 
ulugan 
nickel 
corp 
nickeline 
resources 
holdings 
inc 
nickel 
laterite 
resources 
inc 
 
berong 
nickel 
corp 
 
ipilan 
nickel 
corp 
direct 40 30 40 40 20 213 40 
indirect               18 18        348 12 
total 40 30 58 58 20 561 52  51 
 
in april 2006 the company subscribed for up to us5 million in a threeyear loan note in 
atlas consolidated mining and development corporation acmdc secured over acmdc’s 
share of the berong nickel project the note bears interest at the rate of 10 cumulative per 
annum and was repayable three years from each drawdown it  is repayable out of acmdc’s 
share of the berong nickel project cash flow or is convertible into acmdc shares or repayable 
in us cash at the election of the company the principal amount advanced at 31 march 
2011 was us4967676 2010 us4803616 on 7 july 2010 the agreement was amended 
to extend repayments to four years from each drawdown on 4 july 2011 the company 
accepted an offer to settle the loan note in the amount of us4499880 to be paid by 
acmdc in three equal instalments at the ends of july august and september 2011 the first 
instalment of us1500000 was received on 29 july 2011 
 
during the year the company made further advances of us177369 2010 usnil to 
acmdc under the loan note this amount forms part of total principal amount advanced as 
shown under noncurrent loan investments see note 13   
 
in 2007 the company entered into an agreement to make a loan facility available to brooks 
nickel ventures inc brooks of up to us25 million secured over brooks’ share of the ipilan 
nickel project this facility was subsequently increased in 2007 and in 2010 to us10 million 
and terms extended from three to four years from each drawdown to meet continuing pre
operational exploration and working capital requirements the loan bears interest at 10 
cumulative per annum and is repayable out of brooks’ share of the ipilan nickel project 
operating cash flow the principal amount advanced at 31 march 2011 was us9314930 
2010 us8174930 
 
under the celestial venture agreement the company has the option to take a 40 holding in 
cnmec  during the year ended 30 march 2007 the company agreed to an advance of 
us900000 as shown in note 13 against the option exercise amount if the company 
decides not to exercise the option to purchase or is prevented by any cause from exercising 
the option to purchase then the borrowers are required to reimburse the us900000  the 
advance is interestfree and guaranteed by cnmec and its guarantors but is otherwise 
unsecured 
 
cnmec owns 40 of the issued share capital of nickel laterite resources inc   
 
during the year the company paid cnmec us200000 on completion of the definitive 
mining feasibility study there is an agreement in place such that the company has a 
commitment to make certain further payments to cnmec as described in note 27 
 
a potential claim for an unspecified sum for breach of contract has been notified to the 
company in respect of a dispute with celestial nickel mining exploration corporation  the 
directors are firmly of the opinion that the claim is without foundation and no provision has 
been made in these accounts in that respect 
 
the company’s expenditure commitment under the ulugan venture agreement at the year 
end and at 31 march 2010 is us700000 
 
under the berong venture agreement the company has advanced funds to berong nickel 
corporation bnc to meet ongoing mine development costs of which us6129258 was 
repaid in 2007 during the year the company advanced us2398824 2010 us327789 
to bnc this amount forms part of the total amount advanced as shown under noncurrent 
loan investments see note 13 the loan amounts advanced are interestfree unsecured and 
have no fixed terms of repayment 
 
the company has two subsidiaries details of which are given in note 11  52 
 
during the year china nickel corporation charged berong nickel corporation us339659 
2010 us524195 in respect of consulting fees at the year end berong nickel corporation 
owed china nickel corporation us1134887 2010 us1182197 
 
during the year china nickel corporation charged ipilan nickel corporation us334225 
2010 us116040 in respect of consulting fees at the year end ipilan nickel corporation 
owed china nickel corporation us282954 2010 us110667 
 
27 commitments and contingencies 
 
under a royalty agreement the company has made a commitment to make certain payments 
to cnmec as follows 
  
upon completion of positive bankable feasibility study us500000 
upon the commencement of construction of plant us1200000 
 
a potential claim for an unspecified sum for breach of contract has been notified to the 
company in respect of a dispute with cnmec  the directors are firmly of the opinion that the 
claim is without foundation and no provision has been made in these accounts in respect of 
this 
 
28 post balance sheet events 
 
subsequent to 31 march 2011 
the company has advanced a further 
• £68700 as us112200 to berong nickel corporation as an interest free unsecured 
advance under the berong venture agreement 
• £317329 as us520000 to brooks nickel ventures inc to meet that company’s share of 
ipilan project expenditure 
• £248433 as us400000 to berong nickel corporation as an interestfree bridging loan 
for shortterm working capital the bridging loan was repaid in full on 1 august 2011 
the company received 
• £121552 as us195000 from china nickel corporation as an interestfree loan the 
loan was repaid in full on 29 july 2011 
 
on 4 july 2011 the company and acmdc reached an agreement for acmdc to repay by 30 
september 2011 the amount of us4498880 in full and final settlement of acmdc loan the 
first of three staged repayments in the amount of us1500000 was received by the 
company on 29 july 2011  
              
29  financial assets and liabilities 
 
 the group’s financial instruments comprise cash and cash equivalents loan investments and 
financial assets and various items such as trade receivables trade payables accruals and 
prepayments that arise directly from its operations 
 
 the main purpose of these financial instruments is to finance the group’s operations 
 
 the board regularly reviews and agrees policies for managing the level of risk arising from the 
group’s financial instruments  these are summarised below 
 
   53 
 
credit risk 
 credit risk refers to the risk that a counterparty will default on its contractual obligations 
resulting in financial loss to the company and group and arises principally from the 
consolidated entity’s loan receivables which are considered by the directors to be recoverable  
 
 the carrying amounts of the financial assets recognised in the balance sheet best represents 
the company and group’s maximum exposure to credit risk at the reporting date in respect of 
certain of the loans receivable the amounts are repayable from the borrower’s share of cash 
flows from the related mining projects see note 13 no other collateral or security is held by 
the company or group in respect of these assets the credit quality of all financial assets that 
are neither past due nor impaired is appropriate and is consistently monitored in order to 
identify any potential adverse changes in credit quality there are no financial assets that have 
had renegotiated terms that would otherwise without that renegotiation have been past due 
or impaired at the balance sheet date 
 
 liquidity risk 
 liquidity risk is the risk that the company and group will not be able to meet its financial 
obligations as they fall due  
 
 the company and group’s policy throughout the year has been to ensure that it has adequate 
liquidity to meet its liabilities when due by careful management of its working capital 
 
  
  
 
 
 
 
 
 
 
 
 
 
           
  54 
 
the following are the contractual maturities of financial liabilities 
 
group     
31 march 2011  
carrying 
amount 
 
 
cash flows 
 
3 months or 
less 
greater 
than 3 
months 
 £ £ £ £ 
trade and other payables 242016 242016 242016  
project expenditure commitment 436380 436380  436380 
     
 678396 678396 242016 436380 
  
31 march 2010 
 
 
carrying 
amount 
 
 
 
cash flows 
 
 
3 months or 
less 
 
greater 
than 3 
months 
 £ £ £ £ 
trade and other payables 217802 217802 217802  
project expenditure commitment 464590 464590  464590 
tax liabilities      
    682392    683392 217802    464590          
   
company     
31 march 2011  
carrying 
amount 
 
 
cash flows 
 
3 months or 
less 
greater 
than 3 
months 
 £ £ £ £ 
trade and other payables 221586 221586 221586  
project expenditure commitment 436380 436380  436380 
     
 657966 657966 221586 436380 
company     
31 march 2010  
carrying 
amount 
 
cash flows 
 
3 months or 
less 
greater 
than 3 
months 
 £ £ £ £ 
trade and other payables 207971 207971 207971  
project expenditure commitment 464590 464590  464590 
tax liabilities     
     
    672561    672561 207971    464590         
 
market risk 
 market risk is the risk that changes in market prices such as commodity prices foreign    
exchange rates interest rates and equity prices will affect the company’s and group’s income 
or the value of its holdings in financial instruments 
 
 commodity price risk 
 the principal activity of the company and the group is the development of nickel mining 
properties in the philippines and the principal market risk facing the group is an adverse 
movement in the commodity price of nickel 
 
 any longterm adverse movement in this price would affect the commercial viability of the 
mining properties and hence the value of investments by the company and the group as a 
whole 
 
 
 
   55 
 
 foreign currency risk 
 the group undertakes transactions principally in sterling and us dollars while the group 
continually monitors its exposure to movements in currency rates it does not utilise hedging 
instruments to protect against currency risks the main currency exposure risk to the 
company is in relation to the us dollar loan investments which are repayable in us dollars 
 
 interest rate risk 
 the group utilises cash deposits at variable rates of interest for a variety of shortterm periods 
depending on cash requirements the rates are reviewed regularly and the best rate obtained 
in the context of the group’s needs  
 
 extent and nature of financial instruments 
 the financial assets and liabilities held by the company and group at the period end are 
shown below together with their fair values fair values have been arrived at after due and 
careful consideration by the company’s directors  
  
group 31 march  31 march  31 march  31 march  
 2011 2011 2010 2010 
 £ £ £ £ 
assets carrying net fair carrying net fair 
 amount value amount value 
loans and receivables 16127140 16127140 14451634 14451634 
trade and other receivables 964934 964934 941659 941659 
taxation 11741 11741 211512 211512 
shortterm deposits 1816436 1816436 2517686 2517686 
cash at bank and in hand 60806 60806 1398917 1398917 
     
 18981057 18981057 19521408 19521408 
        
group 31 march  31 march  31 march  31 march  
 2011 2011 2010 2010 
 £ £ £ £ 
liabilities carrying net fair carrying net fair 
 amount value amount value 
trade and other payables 242016 242016 217802 217802 
project expenditure 
commitment 
 
436380 
 
436380 
 
464590 
 
464590 
taxation 11772 11772   
     
 690168 690168    682392    682392 
 
  56 
 
 
company 31 march  31 march  31 march  31 march  
 2011 2011 2010 2010 
 £ £ £ £ 
assets carrying net fair carrying net fair 
 amount value amount value 
loans and receivables 16127140 16127140 14451634 14451634 
trade and other receivables 81036 81036 83585 83585 
taxation 11741 11741 211512 211512 
shortterm deposits 1816436 1816436 2517686 2517686 
cash at bank and in hand 42835 42835 1334895 1334895 
     
 18079188 18079188 18599312 18599312 
 
company 31 march  31 march  31 march  31 march  
 2011 2011 2010 2010 
 £ £ £ £ 
liabilities carrying net fair carrying net fair 
 amount value amount value 
trade and other payables 221586 221586 207971 207971 
project expenditure 
commitment 
 
436380 
 
436380 
 
464590 
 
464590 
taxation 11772 11772   
     
 669738 669738    672561    672561 
 
 capital management 
 the company’s capital consists wholly of ordinary shares there are no other categories of 
shares in issue and the company does not use any other financial instruments as capital 
substitutes or quasi capital the company manages its issued capital by considering future 
capital requirements of the group which are largely dictated by the exploration and 
development of the mining properties in the philippines and the head office overhead costs of 
the company in london the company’s board of directors as a whole manages the capital by 
considering the need to raise further capital to meet the above costs on a rolling 12 month 
basis so as to enable the accounts to be prepared on a going concern basis but without 
unnecessary dilution of existing shareholder interests the board always places a priority on 
maximising the return to existing shareholders before raising further capital 
 
 there are no externally imposed capital requirements on the company 
 
 details of the ordinary share capital are set out in note 20 
 
 
 
 
 
    57 
 
30 associate undertakings 
  
 the company has equity holdings in the following associate undertakings 
 
  
tmm 
management 
inc 
ulugan 
resources 
holdings 
inc 
 
ulugan 
nickel 
corp 
nickeline 
resources 
holdings 
inc 
nickel 
laterite 
resources 
inc 
 
berong 
nickel 
corp 
 
ipilan 
nickel 
corp 
direct 40 30 40 40 20 213 40 
indirect               18 18        348 12 
total 40 30 58 58 20 561 52 
 
the principal place of business and country of incorporation of the associate undertakings is the 
philippines 
  
 summarised results of the associate undertakings as translated into sterling are as follows 
 
 
 
 berong nickel 
corporation 
ipilan nickel 
corporation 
remaining 
associates total 
year ended 31 march 2010 £ £ £ £ 
     
revenue    2387297                    405612   2792909 
     
profitloss for the year 1402435  174709      14517 1562627 
     
total assets  13187476 6425163 2176616 21789255 
     
total liabilities    7520371    104218 1728040   9352629 
     
 
31 operating lease commitments 
 
the company and group had outstanding operating lease commitments falling due as follows 
 
land and buildings 
 
 
2011 
 
2010 
 £ £ 
within one year  38131 76895 
within 2 – 5 years         38131 
total  38131 115026 
 
on 23 april 2010 the company entered into a new lease to occupy its offices at ground floor 11 
albemarle street london w1s 4hh for a period expiring on 28 september 2011 
 
 berong nickel 
corporation 
ipilan nickel 
corporation 
remaining 
associates total 
year ended 31 march 2011 £ £ £ £ 
     
revenue   392796 392796 
     
profitloss for the year 2028577 180460 16164 2192873 
     
total assets 12218121 6961851 2285953 21465925 
     
total liabilities 8695249 253780 1830367 10779396  58 
 
corporate directory 
 
 
directors reg eccles chairman 
  victor kolesnikov chief executive officer 
  simon purkiss nonexecutive director 
  constantine thanassoulas   nonexecutive director 
  jason cheng       nonexecutive director 
 
secretary thrings llp 
 
registered office ground floor 11 albemarle street  
   london 
   w1s 4hh 
 
nominated adviser 
and broker  ambrian partners limited 
   old change house 
   128 queen victoria street 
   london 
   ec4v 4bj 
 
solicitors  thrings llp 
   kinnaird house  
   1 pall mall east 
   london 
   sw1y 5au 
 
auditors sawin  edwards 
  15 southampton place 
  london 
  wc1a 2aj 
 
financial adrian harvey fcca 
  ghcp services limited 
  second floor 81 piccadilly 
  london 
  w1j 8hy 
 
principal bankers coutts  co 
   188 fleet street 
   london 
   ec4a 2ht 
  
registrars  capita irg plc 
   bourne house 34 beckenham road 
   beckenham 
   kent 
   br3 4tu 
 
website  wwwtoledominingcom  
 
 
 
 
 
 


Summary:
 3 
 
 chairman’s statement 
 
 
in the 18 months since the beginning of toledo’s 2011 financial year our management has worked 
tirelessly to extract greater value from our nickel investments located in the philippines 
 
it was very pleasing therefore to be able to announce in april that sales contracts had been 
secured to finance the reopening of the berong mine which duly occurred in may 
 
the intention is now to produce 450000 wet metric tonnes wmt of nickel ore this calendar year 
rising to 750000 wmt annually thereafter the expected net revenue generated from ore sales will 
be more than sufficient at current nickel prices for the joint owners of berong to fund an exploration 
programme of the area around berong and undertake engineering studies to improve ship loading 
capability and determine the optimal technology for local processing of ore 
 
at the ipilan project on the eastern and opposite side of palawan island to berong significant 
progress has been made towards being able to mine the deposit last december we announced 
that statutory licencing obligations had been progressed to the point where only a mine feasibility 
plan and related documents required official sign off before mining operations could begin the 
feasibility plan has been submitted to the minerals and geosciences bureau and it is understood 
that their initial review has drawn no negative feedback 
 
at the beginning of our financial year we had just commenced an exploration programme on the 
moorsom prospect lying within a 14 kilometre radius of the berong mine the stated aim was to 
prove up sufficient ore capable of supporting a processing operation producing 20000 tonnes per 
annum of contained nickel 
 
although the initial results were encouraging the programme was curtailed when it became 
apparent that whilst the requisite tonnage undoubtedly exists the nickel grade is less than hoped 
inhouse analysis of the assay data indicates a total resource of 43 million tonnes grading just over 
08 nickel using a 0 cutoff grade further work is required to determine whether any part of 
this huge resource has the potential of commercial development 
 
as mentioned in my half yearly statement the area long believed to offer significant exploration 
potential is the coastal portion of the long point prospect located some 20 kilometres to the north 
east of the berong mine this area which lies within an environmental critical area network 
ecan is presently off limits to exploration however we remain hopeful that with the support of 
the local council which has petitioned for the ecan map to be redrawn we will be granted 
permission to explore  
 
palawan is a particularly environmentally sensitive island within which to operate often described 
as the philippines last ecological frontier it has been accorded special status under the 
constitution it is not surprising therefore that obtaining permits to explore and mine on palawan 
requires extensive review and cooperation with local authorities management of both berong and 
ipilan has ensured that very careful attention to community social and environmental issues has 
enabled the restart of the berong mine and successful ratification of the environmental plans for 
the development of ipilan 
 
more detailed operational information on both berong and ipilan is contained in the chief 
executive’s review 
 
for the financial year to 31 march 2011 toledo reported a pretax loss of £44 million as compared 
to a loss of £20 million in the 2010 financial year of the £24 million increase in pretax losses 
£16 million is due to noncash provisions with respect to the early settlement by atlas 
consolidated mining and development corporation atlas of a loan from toledo to atlas a partner 
in berong and a reduction in the carrying value of our investment in ipilan a further £021 million 
was due to foreign exchange losses on us denominated loans to philippine partners associated  4 
 
company losses rose by £036 million and administrative expenses were £046 million higher 
principally as a result of negotiations with the jinchuan group during the financial year 
 
with no income during 2010 and for most of this year toledo has relied on the loyal support of 
shareholders last december the company placed 8307 million shares to raise £19 million net of 
expenses as a result of the issue toledo now has 49845333 fully paid ordinary shares in issue 
of which daintree limited whose major shareholder jason cheng sits on the toledo board holds 
22 and fevamotinico sarl a company related to kostyantin zhevago holds 20 the issue 
also saw mr jason cropper increase his equity holding to 67 since when through on market 
purchases his holding has risen to 16 meanwhile toledo’s once most significant shareholder 
european nickel plc now has just a little over 5 equity holding although it still retains its 187 
voting interest in berong nickel corporation 
 
presently financial matters look a lot better for both toledo and its shareholders the berong mine 
should now be selffinancing for the foreseeable future whilst toledo still has a commitment to 
fund on a recoverable basis ipilan up to mine development your company is well funded as a 
result of the early settlement of the atlas loan referred to earlier and which will add us45 million 
to toledo’s cash holdings   
 
it is quite natural that strong commodity prices draws the attention of mineral rich countries to the 
wealth beneath their feet and heightens the debate as to how best these resources be developed 
for the benefit of the country concerned  
 
the philippines with its exceptional endowment of mineral resources is no exception to such 
debate the current focus being on the pros and cons of limiting ore exports in preference to 
domestic processing and on whether to tighten or relax the legislation limiting foreign ownership of 
mineral properties toledo welcomes clarification and resolution on both these issues 
 
meanwhile your company considers it wise to recognise philippine nationals’ desire to process 
minerals within the country and accordingly to plan for a more restrictive environment on ore 
exports we do not see such an outcome as necessarily financially damaging for toledo equally 
we believe that any change to the legislation on foreign ownership will recognise the important 
contribution foreign investment makes to the philippine economy 
 
as toledo became more confident that developments in the nickel market and in particular the 
explosive growth in demand for nickel ore primarily from china but also elsewhere would support 
a reopening of the berong mine and accelerate value added ambitions we moved to strengthen 
our management capabilities  
 
in january 2011 we welcomed victor kolesnikov to the toledo board in march we appointed him 
chief executive officer victor is a metallurgist with over 22 years’ experience in mining and sales 
in the nonferrous metals industry including eight years with norilsk nickel the world’s largest 
nickel producer in the short time since his appointment as ceo victor has made a very positive 
impact on our business including overseeing the commencement of operations at berong 
 
in may 2011 we appointed pierre charlent chief operating officer based in the philippines 
pierre replaces ken stein who returned to australia for personal reasons as a geologist and 
mining engineer pierre not only complements victor’s metallurgical expertise but also comes to 
toledo with over 25 years’ experience in the mining industry including 14 years in nickel laterite 
exploration mining and development in new caledonia 
 
we are very fortunate to have been able to recruit two such high calibre and experienced 
individuals 
 
with the commitment of the staff of the manilabased management company of berong and ipilan 
and the employees at the respective sites we have significantly advanced the reactivation of 
berong and made substantial progress in the permitting at ipilan the toledo board owes all of 
them a huge debt of gratitude  5 
 
 
i would also like to thank felix pole who stood down from the toledo board at the end of june 
felix was my companion in guiding toledo through some very challenging times fortunately 
although felix resigned from the board because of the heavy demands of his business interests 
he remains available should we need to tap his wise counsel 
 
finally i would like to extend my thanks to our shareholders for their continued support we have 
made much positive progress this year and i look forward to updating you as we continue to realise 
further goals over the coming year 
 
 
reginald eccles 
chairman 
24 august 2011