annual report 2007
toledo mining corporation plc annual report 2007
toledo mining corporation plc
london
ground floor
11 albemarle street
london w1s 4hh
united kingdom
t 44 0 20 7514 1480
f 44 0 20 7514 1486
e infotoledominingcom
philippines
third floor philam building
100 c palanca street  
cor dela rosa street
legaspi village 
1229 makati city 
metro manila
the philippines
t  63 2 817 7104
f  63 2 817 2357
e infotoledominingcom toledo mining is focused on nickel 
mining and development in the 
philippines it has significant interests 
in three nickel laterite projects on 
palawan in the philippines
the company has a 561 interest  
in the berong deposit comprising 
the berong moorsom and long 
point deposits which has a 
combined prejorc
1
 resource of 
approximately 275 million tonnes of 
nickel ore the company also has a 
52 interest in the celestialipilan 
deposit which has a prejorc 
resource of approximately 75 million 
tonnes of nickel ore
1 our prejorc resource referred to throughout this report is 
defined as being conceptual in nature with insufficient 
exploration to define the mineral resource  and  with uncertainty 
as to whether further exploration will result in the determination 
of a mineral resource highlights
temporary exploration permit tep granted on  
15 november 2005 commenced test pitting  
drilling sampling gpr topographical survey
environmental clearance certificate ecc granted  
on 14 june 2006
priority project status granted in october 2006
special mines permit granted in november 2006
trial metallurgical shipments commenced in january 2007
mpsa granted on 8 june 2007  covering the exploration 
of the 288 hectare area
commercial shipments to china and australia commenced 
may 2007
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operati onal hig hlig hts
01 highlights
02 company overview
04 chairman’s statement
05 chief executive officer’s statement
06 corporate and social responsibility
08 board of directors
09 report of the directors
12 statement of directors’ responsibilities
13 independent auditors’ report
14 consolidated income statement
15 consolidated balance sheet
16 company balance sheet
17 statement of changes in equity
18 consolidated cash flow statement
19 company cash flow statement
20 notes to the financial statements
36 corporate directory
contents
toledo mining corporation plc
annual report 2007 01 company overview
toledo has an interest in the berong deposit comprising 
the berong moorsom and long point deposits as well 
as in the celestialipilan deposit
initial activities are centred on developing a  
directshipping laterite operation at berong 
whereby the ore will be sold fob philippines to 
nickel smelters
the company has a 561 economic interest in the berong 
moorsom and long point deposits referred to collectively as 
the berong deposit all on palawan island which have a 
combined prejorc
1
 resource of approximately 275 million 
tonnes of nickel ore at around 13 nickel ni 
berong is believed to be the fourth largest nickel laterite deposit 
in the world 
a longterm laterite ore supply agreement has been signed with 
queensland nickel pty ltd qnpl a bhp billiton group 
company the supply agreement is for a five year term with an 
option to extend for a further five years at the election of qnpl 
the contract volume is for the supply of up to 500000 tonnes 
per calendar year at a nickel grade of greater than 15 ni 
individual ore shipments will be made to a maximum of 
approximately 70000 tonnes depending upon the size of the 
ship negotiations are continuing between the company and 
several chinese enduser customers for additional longterm 
contracts of similar volumes
a
berong nickel
overview
275
million tonnes
56 1 
economic interest
including berong moorsom and long point 
deposits
berong 
ulugan
celestial
ipilan
c
a
b
b
a
c
locations of our operations
toledo mining corporation plc
annual report 2007 02 the company’s celestialipilan nickel laterite 
property also on palawan island covers an area 
of 2835 hectares and has substantial permitting 
already in place
the company has a 52 economic interest in this project with 
the right to increase this to 712 through future payments 
acid leach metallurgical test work has been conducted on 
the property and a prefeasibility study has demonstrated 
economic viability subject to more detailed work being carried 
out for a bankable feasibility study the property has been well 
explored yielding a current prejorc
1
 resource estimate of 75 
million tonnes of 125 ni and 010 co within an area of 800 
hectares 
preliminary field operations are under way and progressing 
satisfactorily following the approval by the philippines mines  
geosciences bureau of the third extension of the exploration 
licence covering the project area the resampling and 
evaluation programme will ensure that an accurate knowledge 
of grade quality and value is obtained 
a memorandum of understanding has been signed with 
macroasia corporation a company quoted on the philippine 
stock exchange on a study of the possible joint development of 
the companies’ nickel deposits located near brooke’s point 
palawan philippines the study will cover possible collaboration 
in mine development and onsite value added processing of the 
celestial laterite nickel deposit which extends across the 
common boundary of the contiguous mineral production 
sharing agreement mpsa areas held by the company and 
macroasia the company and macroasia have both been drilling 
and test pitting their respective areas to define the extent of the 
nickel laterite mineralisation 
 
a combined resource over the two properties of over 120 million 
tonnes of mineralisation would be more than sufficient to justify 
a processing plant suited to the dominantly limonitic ore type
the company owns a 58 economic interest in 
the ulugan nickel project
this deposit is also located on the island of palawan and consists 
of two exploration permit applications covering more than 
16000 hectares pending granting of the exploration permits 
little work has been undertaken on this property 
together berong celestialipilan and ulugan represent world 
class projects with a combined prejorc
1 
resource of some 
350 million tonnes at 13 ni and an estimated total nickel 
content of more than 45 million tonnes the deposits offer the 
potential to recover both limonite and saprolite ore
c
celestialipilan nickel 
overview
ulugan nickel
overview
b
75
million tonnes
125 ni and 010 co within 
an area of 800 hectares
52
economic interest
58
economic interest
locations of our operations
toledo mining corporation plc
annual report 2007 03 chairman’s
statement
the celestialipilan orebody on the 
eastern side is largely limonite this 
allows us to consider all of the available 
options for value added processing on 
site snc lavalin has been appointed to 
work with us to evaluate these options 
 
with the experience the company is 
gaining in china in the pig nickel industry 
we are looking closely at participating 
with some of our customers in further 
developing their pig nickel businesses 
we feel that this will give us valuable 
experience to build similar facilities in the 
philippines we have recently appointed 
cibc world markets to assist us evaluate 
future financing options and to provide 
other advisory and banking services
we have now signed our first longterm 
supply agreement with queensland 
nickel pty ltd a wholly owned subsidiary 
of bhp billiton for up to 500000 tonnes 
of ore per annum which is another 
milestone for the company however 
demand for similar grade nickel ore 
remains very strong from chinese 
customers and we do see our developing 
relationships here as also very important 
we expect that until we have developed 
our own value added processing on site 
the majority of our exports will be to 
chinese customers longterm contracts 
with a number of these existing customers 
are being negotiated
for calendar 2007 we anticipate 
producing 850000 tonnes of ore and 
subject to the vagaries of the weather 
and availability of vessels shipping 
700000 tonnes annualised production 
is now running in excess of 1 million 
tonnes with a target of 15 million tonnes 
for calendar 2008
 
demand for nickel remains strong world
wide and particularly from china and 
india with stainless steel production 
being the major driver most analysts see 
the supplydemand gap increasing in the 
future with limited supply and increasing 
demand whilst the company’s view is 
one of cautious optimism given the grade 
of our orebodies and their size we expect 
to be able to weather any downturns 
whilst being in a position to reap 
considerable rewards during positive 
market conditions
in march 2007 i was very pleased to 
welcome reg eccles as an independent 
nonexecutive director 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 
publishing business and served as head 
of global mining equities for both sbc 
warburg now ubs and abn amro
 
during the year merfyn roberts resigned 
as a nonexecutive director of the 
company due to other work commitments 
i would like to express my heartfelt thanks 
to mr roberts for his significant 
contribution to the company
chris kyriakou
26 september 2007
demand for nickel 
remains strong 
worldwide particularly 
from china and india 
with stainless steel 
production being  
the major driver
in the year under review toledo mining 
corporation’s activities continued to be 
focused on the development and 
evaluation of several large laterite nickel 
orebodies on palawan island in the 
philippines
without doubt the most exciting time for 
a developing mining company is when it 
commences production and achieves 
positive cash flow in january 2007 we 
delivered our first shipment of laterite ore 
from our berong deposit a milestone for 
the company other shipments followed 
all from the berong orebody and almost 
all has been shipped to china
what makes this a particularly significant 
achievement is that it was done in less 
than three years from the company’s 
formation an outstanding achievement 
and one of which we are extremely proud 
the company’s management team led 
by ceo george bujtor and workforce 
must indeed be congratulated for this 
achievement
 
our orebodies are in total amongst the 
largest in the world with a prejorc
1
 
resource of over 350 million tonnes of 
13 ni and 01 co containing about 
45 million tonnes of ni with an insitu 
value in excess of us127 billion at the 
current price of nickel given the relatively 
high grade of the deposits compared to 
most other nickel laterite ore bodies 
around the world the philippines pro
mining attitude and the sheer size of the 
orebodies it is reasonable to expect that 
they will be developed well ahead of most 
others we also have the advantage that 
the berong orebodies on the western 
side of palawan are largely saprolite and 
toledo mining corporation plc
annual report 2007 04 chief executive officer’s
statement
the company is setting 
new standards in 
responsible mining in  
the philippines and 
pleasingly is being 
recognised as a role 
model for other mining 
operations
place included the coastal stockpile and 
drying areas the offshore ship anchorage 
area and the 50 kilometre approach 
channel lined with eight navigational 
buoys and mine site environmental 
structures
for the coming year permanent facilities 
to be constructed include heavy 
equipment workshops accommodation 
facilities offices assay laboratory and 
the dangla road still under evaluation are 
the trestlepylon conveyor and ship 
loader and development of dangla bay 
as an additional stockpile area and barge 
loading facility
operationally mining activities have been 
concentrated on the trial metallurgical 
sample areas defined to best test the 
various ore types in customers’ plants 
whilst these areas were not the highest 
grade areas the mining practices and 
grade sampling procedures were 
established and tested ore dilution is 
less than 10 of the grade and is 
expected to decrease to less than 3 
through learning and better operator 
training this is not unexpected 
considering much of the operation is 
contractor based
the company is setting new standards in 
responsible mining in the philippines and 
pleasingly is being recognised as a role 
model for other mining operations 
berong nickel corporation takes its 
environmentalsafetyhealth and social 
licence very seriously the company is 
developing the systems for international 
certification in environmental management 
systems iso 14001 and occupational 
health and safety systems iso 18001 
an mou was signed with the local 
indigenous peoples on how the mandated 
1 gross royalty is to be spent for the 
benefit of current and future generations 
similarly a social development and 
management plan is being developed 
with spending directed at priority 
community and livelihood projects the 
company is also an active member of the 
kabuhayan kaunlaran kalikasan inc 
which acts as an advocacy group on 
responsible mining on palawan and 
offers benefits to those people not directly 
impacted by mining operations
the primary markets for berong laterite 
nickel ore include japan china europe 
and australia with historically high nickel 
prices reflecting a shortage of primary 
nickel the chinese market has developed 
exponentially though the innovative use of 
blast furnace technology to produce a 
nickel pig iron for the stainless steel sector 
many smaller steel plants in china have 
converted to nickel pig iron production 
and this has led to the rapid increase in 
demand for laterite nickel ore most 
shipments to date from berong have been 
sold to china on a spot basis targeting the 
blast furnace producers and the electric 
arc furnace producers longer term 
contracts will be negotiated once 
operations stabilise value added 
processing within the philippines is seen 
as a critical component in leveraging off 
the large prejorc
1
 resource of over 350 
million tonnes of nickel laterite managed 
by the company on palawan samples of 
the various ore types have been taken and 
will be tested in the laboratory to assess 
the most viable processing options the 
processing options to be assessed include 
leaching atmospheric and high 
temperature the chinese blast furnace 
process and ferronickel production 
exploration and permitting activities in 
the tenement areas adjacent to the 
berong project and at the celestialipilan 
project area continued in parallel with 
development activities the detailed work 
programme for the celestialipilan project 
was scoped with test pitting and drilling 
commencing in may 2007 
as at the time of writing this review total 
shipments from berong amount to 
approximately 452595 tonnes at an 
average grade of 153 ni the operation 
is currently running at an annualised rate 
of approximately 1 million tonnes and is 
well on the way to the target of 15 million 
tonnes planned for year 2008 
we look forward to another equally 
successful year ahead
g eorge bujtor
26 september 2007
the key achievement in the year under 
review was the successful development 
and bringing into production of the 
berong nickel project mining of laterite 
nickel ore for trial metallurgical samples 
commenced in november 2006 and 
significantly less than one year after the 
start of test pitting and drilling of the ore 
body within the 288 hectare mpsa area 
the first metallurgical sample was 
shipped out in late january 2007 as a 
partial shipment of 18819 tonnes with 
the first full shipment of 51103 tonnes in 
late february 2007 laterite ore shipped 
to the end of march 2007 amounted to 
approximately 121390 tonnes at an 
average grade of 153 ni
testing and evaluation of the laterite nickel 
ore body was undertaken using test 
pitting diamond drilling and industry 
standard software packages 
approximately 10529 metres of test pitting 
and 7627 metres of diamond drilling was 
completed normal check assaying and 
duplicate samples were taken to ensure 
the statistical accuracy of the results 
snowden mining industry consultants 
estimated a jorc compliant ore resource 
of 992 million tonnes at a 155 ni grade 
using a 1 ni cutoff grade
the overriding philosophy in the 
development of the project was “speed 
into production” to capture the benefits of 
the historically high nickel prices to this 
extent many of the facilities put into place 
were of a temporary nature and included 
the barge causeway the barangay–sorex 
road linking the mine to the coastal 
facilities and the accommodation 
facilities permanent facilities put into 
toledo mining corporation plc
annual report 2007 05 corporate and social 
r esponsibility
as a company we believe csr is a tool 
that can be used for ensuring more  
responsible approaches to managing 
social and environmental impacts in the 
mining industry there are respective 
roles that different stakeholders can  
play to improve corporate social 
responsibility practises of mining 
companies operating in the philippines 
through the integration of economic 
progress responsible social development 
and effective environmental management 
toledo mining is committed to contributing 
to the sustained growth and prosperity of  
current and future generations in the  
philippines 
the foundation of this commitment is the 
concept of a “social licence to operate” 
simply defined this licence is an unwritten 
social contract within the communities 
where our company operates beyond 
compliance with government regulation 
for toledo it is about operating in a 
manner that is attuned to the 
community 
the berong nickel project has achieved 
the following 
construction of two world class water 
treatment systems at its stockpile  
facilities that treat wastewater that is 
high in suspended solids and provides 
clean water to local agricultural 
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“the concept of csr is based on the recognition that 
businesses are part of society and that they have the 
potential to make a positive contribution to societal 
goals and aspirations in ways that are both good for 
business and good for development”
toledo mining corporation plc
annual report 2007 06 providers the same system retention 
storage areas have been designed for 
postmining use in freshwater fish 
farming 
development of a sophisticated water 
management system for the mining 
activities that has not impacted on 
downstream environments and in 
fact provides water that is 10 times 
cleaner than the receiving 
environment 
development of a coconut husk 
matting industry to provide the 
product to the mining industry this 
will employ approximately 50 families 
in the project 
development of a berong nickel–
palawan state university research 
facility in the mining areas for future 
rehabilitation and sustainable 
development options 
commencement of its progressive 
rehabilitation programme which 
consists of 12 projects employing 
over 70 people the berong nickel 
project is the first mining operation in 
the philippines to commence 
rehabilitation within six months of 
operation berong nickel has planted 
78000 trees and 65000 stands of 
grass for slope stabilisation there are 
plans for another 100000 trees and 
100000 grasses to be planted over 
the forthcoming year 
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initiation of the berong nickel–
palawan state university bio fence 
project where the berong nickel 
project will provide 40000 trees to 
the palawan state university to fence 
the perimeter of all its university 
campuses with local tree species 
development of a stateoftheart 
nursery facility to provide the species 
development for rehabilitation local 
agriculture exotic timbers and 
projects such as biodiesel 
opportunities 
development of a community park 
which will be constructed on 15 
hectares of ancestral lands formally 
used as a temporary waste rock 
stockpile area 
the park will consist of 
– botanic gardens 
– meeting areas 
– outdoor cinema 
– food preparation area
– local artwork and carvings display
all works here will be done by the 
local community the berong nickel 
project rehabilitation team and 
students and advisors from the 
palawanstate university 
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a reverse osmosis potable water 
system providing clean drinking water 
to the community
a medical centre
a community bridge over the berong 
river
the ongoing development of an 
environment safety and health 
management system that will be 
certified to iso14001 and iso18001
assessment of the berong project’s 
sustainable development initiatives 
and environmental management by 
auditors of jp morgan whilst being 
assessed against the equator 
principles rated the berong nickel 
project operations from this 
perspective as the “best in asia”
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toledo mining corporation plc
annual report 2007 07 board of directors
chris kyriakou 
chairman
chris qualified as a lawyer in 1973 and was in private practice for 
six years before starting pan d’or mining company now 
investika ltd chris has been continuously involved in the mining 
industry and has extensive experience in australia canada 
africa and mexico he has been responsible for the development 
of a number of mines from exploration through to project finance 
and commissioning he has been an executive director of a 
number of mining companies including giant yellowknife mines 
pamour mines west witwatersrand gold holdings bow river 
diamonds and minera roca roja amongst others
r oger s hakesby
nonexecutive director
roger has a degree in geology and geography and began his 
career as a geologist working in australia and the philippines in 
1971 he joined gold fields where he was involved in and 
eventually managed the exploration programme for australia 
philippines indonesia and papua new guinea in 1982 he was 
appointed the general manager for exploration for renison 
goldfields consolidated since 1998 he has been a consulting 
economic geologist working in australia russia the philippines 
and chile
r eginald eccles
nonexecutive director
reg 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 publishing business and served as 
head of global mining equities for both sbc warburg now ubs 
and abn amro
g eorge bujtor
chief executive officer
george has more than 25 years’ experience in the mining and 
metals industry and has held senior positions with rio tinto 
including that of managing director of base metals development 
and managing director external affairs energy and environment 
he was previously ceo of aldoga aluminium smelter pty ltd 
and prior to that he coled the a15 billion comalco alumina 
refinery project
r obert cleary
nonexecutive director
bob graduated as a chemical engineer from the university of 
new south wales australia and has had numerous operational 
and management roles across the petrochemical and mining 
industries in his 18 years’ mining industry experience he has 
held senior positions in operations management government 
liaison major project investment evaluation capital project 
management and administration
toledo mining corporation plc
annual report 2007 08 report of the directors
for the year ended 31 march 2007
the directors present their report with the audited group 
financial statements for the year ended 31 march 2007
princi pal activities an d review of business
the principal activity of the group is investment directly and 
indirectly in and operation of mining exploration and development 
projects
during the year the company’s main undertaking was the 
continuing investment in the berong nickel project in which the 
company has a 561 economic interest the celestialipilan 
nickel project in which the company has a 52 economic 
interest and the ulugan nickel project in which the company has 
a 58 economic interest 
the company commenced direct shipping operations from its 
berong nickel project in january 2007 a total of approximately 
121390 tonnes of laterite nickel ore was shipped to china in the 
financial year ended 31 march 2007 a jorc compliant mineral 
resource prepared by snowdens mining industry consultants 
australia was completed the measured indicated and inferred 
resource within the 288 hectare mpsa area is estimated at 
992m tonnes at an average grade of 155 ni using a 1 nickel 
cutoff grade drilling within the mpsa area is ongoing and is 
aimed at delineating additional tonnage the assessment of 
processing options to add value to the large berong lateritic 
resource continued snc lavalin is undertaking this work and 
covers the metallurgical testing of the various ore types and 
assessing the most suitable processing options covering high 
pressure acid leaching vat leaching ferronickel smelting and 
the chinese nickel pig iron process 
in respect of the celestialipilan nickel project the company 
expended £672642 on project related items thereby meeting its 
commitment to spend us2 million on project development 
activities by midjanuary 2007 field exploration and evaluation 
activities continued throughout the year development concepts 
and options for an initial direct shipping operation continue to 
be assessed and costed 
in respect of the ulugan nickel project limited work was 
undertaken over the financial year
on 12 april 2006 the company announced that it had negotiated 
to subscribe 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 per annum 
and is repayable out of acmdc’s share of the berong nickel 
project cash flow or is convertible into acmdc shares at the 
election of the company during the year the company 
advanced us2753250 on behalf of acmdc to the berong 
nickel project subsequent to 31 march 2007 berong nickel 
corporation repaid amounts advanced to the project in excess 
of capital contributions and at that time the company elected to 
convert its loan to acmdc into shares in that company
the company agreed to make a loan facility available to brooks 
nickel ventures inc “brooks” of up to us3 million to enable 
that company to meet its funding requirements under the 
celestial joint venture agreement secured over brooks’ share of 
the ipilan nickel project the loan bears interest at the rate of 
10 per annum and is repayable out of brooks’ share of the 
ipilan nickel project cash flow by 31 march 2007 us585191 
£340119 had been advanced under this facility
on 4 april 2006 the company successfully completed a placing 
to raise £85 million this was achieved through placing 7870370 
ordinary shares at £108 each on 12 april 2006 the company 
placed 1704630 ordinary shares at £108 each to raise 
£1841000 the raising was on deferred settlement terms with 
settlement due and received in november 2006
in the period january to march 2007 the company allotted 
1040000 ordinary shares to raise £1335000 following the 
exercise of options and warrants
on 6 february 2007 the company participated in the formation 
of china nickel corporation a company which has the same 
ownership structure as the berong nickel project and which 
provides marketing support services to that project 
further details are set out in the chairman’s and chief executive 
officer’s statements
results an d divi den ds
the loss for the year from ordinary activities before tax amounted 
to £1264416 2006 £723633 the directors do not recommend 
the payment of a dividend
s ha re ca pital
details of share capital are given in note 21 to the financial 
statements
risk management
see note 30 to the financial statements
f utu re develo pments
the directors anticipate the company’s major future 
developments will revolve around further investment in and 
development of the berong ipilan and ulugan nickel projects in 
particular the company is planning subject to receipt of all 
required permits and approvals to rampup production at the 
berong nickel project and to commence commercial direct 
shipping operations at the ipilan nickel project during the 2008 
financial year
princi pal risks an d unce rtainties facing  
the gr ou p
the principal risks faced by the company are as follows
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
the operations of the company may be disrupted by a 
variety of risks and hazards which are beyond the control of 
the company 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
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toledo mining corporation plc
annual report 2007 09 report of the directors
for the year ended 31 march 2007
the company’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 of the business of the 
company
the selling price of the nickel ore produced by the company’s operations varies in line with movements of the price of nickel as 
quoted on the london metal exchange
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 company 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 non
convertibility or instability changes of laws affecting foreign ownership government participation taxation working conditions 
rates of exchange exchange control and exploration licensing
the company’s total return and net assets can be significantly affected by currency movements
di recto rs an d thei r inte rests
the directors who served during the year and their interests in the company’s ordinary shares were were as follows
 5p ordinary shares
       at date of
    at 31 march appointment
  appointed resigned 2007 1 april 2006
c kyriakou    1400000 1000000
g bujtor    37037 –
r eccles  13 march 2007   – –
r cleary    200000 –
j m roberts   20 december 2006 – –
r shakesby    9260 –
during the year the following options were granted to the directors
     exercise
  date granted number price expiry date
c kyriakou  22 december 2006 50000 £150 30 november 2011
g bujtor  22 december 2006 150000 £150 30 november 2011
r cleary  22 december 2006 100000 £150 30 november 2011
r eccles  13 march 2007 100000 £175 30 november 2011
options held by directors at 31 march 2007 are as follows
     exercise
    number price expiry date
c kyriakou    50000 £150 30 november 2011
g bujtor    350000 £150 30 november 2007
g bujtor    150000 £150 30 november 2011
r cleary    100000 £150 30 november 2011
r eccles    100000 £175 30 november 2011
r shakesby    100000 £100 7 april 2007
 or 90 days after the director ceases to be engaged by the company if earlier
e vents since the bal ance sheet date
subsequent to 31 march 2007 the company has
recovered us6129259 £3129522 of funds advanced to the berong nickel project
elected to convert its loan to acmdc of us2753250 into shares in that company
advanced a further us19 million to brooks bringing the total amount advanced to that company under the loan facility to 
us25 million 
allotted 600000 ordinary shares to raise £875000 following the exercise of options and warrants
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toledo mining corporation plc
annual report 2007 10 s ubstantial sha rehol dings
on 31 march 2007 the following shareholders held 3 or more 
of the issued share capital of the company
  percentage
 number of issued
 ordinary shares ordinary shares
axa sa 3445000 121
investika limited 3191019 111
fmr corporation 1764544 62
barclays plc 1443868 51
chris kyriakou 1400000 49
throgmorton trust plc 1400000 49
alfredo ramos 1300000 45
mf global uk limited 1162300 41
man financial limited 1156200 40
presidio capital holdings limited 1024762 36
c o rpo r ate g ove rnance
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
di recto rs
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 re
election every three years by rotation in accordance with the 
articles of association given the size of the company it is not 
considered appropriate that there should be a separate 
nomination committee it is the view of the board that the 
appointment of new directors should be a matter for consideration 
by the board as a whole all appointments to the board are 
subject to confirmation by shareholders at the following annual 
general meeting
rel ations with s ha rehol de rs
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
a u dit c ommit tee
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 is 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
remune r ation c ommit tee
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
i nte rnal f inancial c ont rol 
an d 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
s u pplie r 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 26 days 2006 32 days
political an d cha ritable donations
no political or charitable donations were made during the year
a u dito rs
sawin  edwards have indicated their willingness to continue in 
office a resolution to reappoint sawin  edwards for the ensuing 
year will be proposed at the annual general meeting in 
accordance with section 385 of the companies act 1985
by order of the board
j reynolds
company secretary
26 september 2007
toledo mining corporation plc
annual report 2007 11 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 judgements 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 and
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 
statement of directors’ responsibilities
for the year ended 31 march 2007
the directors are responsible for keeping proper 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 1985 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 234za of the 
companies act 1985 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 company’s 
auditors are aware of that information
toledo mining corporation plc
annual report 2007 12 we have audited the group and parent company financial 
statements of toledo mining corporation plc for the year ended 
31 march 2007 which comprise the consolidated income 
statement the consolidated and company balance sheets the 
statements of changes in equity the consolidated and 
company cash flow statements and the related notes 
numbered 1 to 33 these financial statements have been 
prepared under the accounting policies set out therein
this report is made solely to the company’s members as a 
body in accordance with section 235 of the companies act 
1985 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
res pective res ponsibilities of di recto rs 
an d au dito rs
as described in the statement of directors’ responsibilities the 
company’s directors are responsible for the preparation of the 
financial statements in accordance with applicable law and 
international financial reporting standards ifrss as adopted 
for use in the european union 
our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements and 
international standards on auditing uk and ireland
we report to you our opinion as to whether the financial 
statements give a true and fair view and are properly prepared in 
accordance with the companies act 1985 we also report to 
you if in our opinion the company has not kept proper 
accounting records if we have not received all of the information 
and explanations we require for our audit or if information 
specified by law regarding directors’ remuneration and 
transactions with the company is not disclosed
we report to you whether in our opinion the information given  
in the directors’ report is consistent with the financial 
statements
we read other information contained in the annual report and 
consider whether it is consistent with the audited financial 
statements this other information comprises only the chairman’s 
and the chief executive officer’s statements we consider the 
implications for our report if we become aware of any apparent 
misstatements or material inconsistencies with the financial 
statements our responsibilities do not extend to any other 
information
b asis of au dit o pinion
we conducted our audit in accordance with international 
standards on auditing uk and ireland issued by the auditing 
practices board an audit includes an examination on a test 
basis of evidence relevant to the amounts and disclosures in 
the financial statements it also includes an assessment of the 
significant estimates and judgements made by the directors in 
the preparation of the financial statements and of whether the 
accounting policies are appropriate to the company’s 
circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or other irregularity or 
error in forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the financial 
statements
op inion
in our opinion the financial statements
give a true and fair view in accordance with ifrss as 
adopted for use in the european union of the state of the 
group and the company’s affairs as at 31 march 2007 and 
of the group’s loss for the year then ended
have been properly prepared in accordance with the 
companies act 1985 and
the information given in the directors’ report is consistent 
with the financial statements
sawin  edwards 
chartered accountants  registered auditors 
15 southampton place
london wc1a 2aj
26 september 2007
u
u
u
independent auditors’ report to the shareholders  
of t oledo mining c orporation plc
toledo mining corporation plc
annual report 2007 13 c onsolidated income statement
for the year ended 31 march 2007
      year ended year ended
      31 march  31 march
      2007 2006
     notes £ £
revenue     3 186229 187345
gross profit      186229 187345
administration expenses      2098316 1511007
other operating income      143448 132022
realisedunrealised gainslosses on current asset investments    93543 721731
share of results of associates      276289 388865
loss from operations     4 1585893 858774
investment income     7 321477 135141
loss before taxation      1264416 723633
income tax expense     8 – –
l oss for the year      1264416 723633
attributable to
equity holders of the parent      1300374 723633
minority interest      35958 –
      1264416 723633
l oss per share pence – including share of associates’ results 
basic     9 472 479
diluted     9 448 398
l oss per share pence – excluding share of associates results
basic     9 573 222
diluted     9 543 184
the company has taken advantage of section 230 of the companies act 1985 not to publish its own income statement account
toledo mining corporation plc
annual report 2007 14       31 march 31 march
       2007 2006
     notes £ £
assets
noncurrent assets
intangible assets     10 – 50048
property plant and equipment     11 33397 58784
investments in associated undertakings     13 10353674 10077385
loans and receivables     14 1812274 –
trade and other receivables     15 38450 38450
t otal noncurrent assets      12237795 10224667
c urrent assets
trade and other receivables     16 490282 139531
loans and receivables     17 3129520 –
current investments     18 915568 897000
cash and cash equivalents     19 8031291 2847749
t otal current assets      12566661 3884280
t otal assets      24804456 14108947
equity an d liabilities
c urrent liabilities
trade and other payables     20 1659721 1516599
t otal current liabilities      1659721 1516599
t otal liabilities      1659721 1516599
equity 
share capital     21 1429417 898667
share premium account     22 23062908 12523833
share based payments reserve     23 1107326 360571
retained loss      2491097 1190723
equity attributable to equity holders of the parent     23108554 12592348
minority interest     24 36181 –
t otal equity      23144735 12592348
t otal equity an d liabilities      24804456 14108947
the financial statements were approved by the board of directors on 26 september 2007 and signed on their behalf by 
c k yriakou
chairman
c onsolidated balance sheet
as at 31 march 2007
toledo mining corporation plc
annual report 2007 15       31 march  31 march
      2007 2006
     notes £ £
assets
noncurrent assets
intangible assets     10 – 50048
property plant and equipment     11 33397 58784
investments in subsidiary undertakings     12 286 –
investments in associated undertakings     13 10466250 10466250
loans and receivables     14 1812274  –
trade and other receivables     15 38450 38450
t otal noncurrent assets      12350657 10613532
c urrent assets
trade and other receivables     16 407734 139531
loans and receivables     17 3129520 –
current investments     18 915568 897000
cash and cash equivalents     19 8030768 2847749
t otal current assets      12483590 3884280
t otal assets      24834247 14497812
equity an d liabilities
c urrent liabilities
trade and other payables     20 1659068 1516599
t otal current liabilities      1659068 1516599
t otal liabilities      1659068 1516599
equity 
share capital     21 1429417 898667
share premium account     22 23062908 12523833
share based payments reserve     23 1107326 360571
retained loss      2424472 801858
equity attributable to equity holders of the parent     23175179 12981213
t otal equity      23175179 12981213
t otal equity an d liabilities      24834247 14497812
the financial statements were approved by the board of directors on 26 september 2007 and signed on their behalf by 
c k yriakou
chairman
c ompany balance sheet
as at 31 march 2007
toledo mining corporation plc
annual report 2007 16      share based
   share share payments retained
   capital premium reserve loss total
group   £ £ £ £ £
balance at 1 april 2006   898667 12523833 – 1202229 12220271
ifrs transition adjustments see note 31   – – 360571 11506 372077
restated balances 1 april 2006   898667 12523833 360571 1190723 12592348
share issue   530750 10539075 – – 11069825
loss for the period   – – – 1300374 1300374
share based payments   – – 746755 – 746755
balance at 31 march 2007   1429417 23062908 1107326 2491097 23108554
     share based
   share share payments retained
   capital premium reserve loss total
company   £ £ £ £ £
balance at 1 april 2006   898667 12523833 – 813364 12609136
ifrs transition adjustments see note 31   – – 360571 11506 372077
restated balances 1 april 2006   898667 12523833 360571 801858 12981213
share issue   530750 10539075 – – 11069825
loss for the period   – – – 1622614 1622614
share based payments   – – 746755 – 746755 
balance at 31 march 2007   1429417 23062908 1107326 2424472 23175179
     share based
   share share payments retained
   capital premium reserve loss total
group   £ £ £ £ £
balance at 1 april 2005   688667 7393833 – 467090 7615410
share issue   210000 5130000 – – 5340000
loss for the period   – – – 346274 346274
share of associates’ results   – – – 388865 388865
balance at 31 march 2006   898667 12523833 – 1202229 12220271
ifrs transition adjustments see note 31   – – 360571 11506 372077
restated balances at 31 march 2006   898667 12523833 360571 1190723 12592348
     share based
   share share payments retained
   capital premium reserve loss total
company   £ £ £ £ £
balance at 1 april 2005   688667 7393833 – 467090 7615410
share issue   210000 5130000 – – 5340000
loss for the period   – – – 346274 346274
balance at 31 march 2006   898667 12523833 – 813364 12609136
ifrs transition adjustments see note 31   – – 360571  11506 372077
restated balances at 31 march 2006   898667 12523833 360571 801858 12981213
statement of c hanges in equity
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 17       year ended year ended
      31 march  31 march
      2007 2006
     notes  £ £
n et cash outflow from operating activities    25 1143095 412679
investing activities
investment income      193843 107623
purchase of property plant and equipment      11939 66126
investments in associated companies      – 6370060
loan investments advancedrepaid      4925092 270000
development expenditure      – 50048
net cash outflow from investing activities      4743188 6108611
f inancing activities
issue of equity share capital      11069825 5340000
net cash inflow from financing activities      11069825 5340000
n et increasedecrease in cash and cash equivalents    5183542 1181290
cash and cash equivalents at 1 april      2847749 4029039
cash and cash equivalents at 31 march     19 8031291 2847749
c onsolidated c ash f low statement
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 18       year ended year ended
      31 march  31 march
      2007 2006
     notes  £ £
n et cash outflow from operating activities    25 1143331 412679
investing activities
investment income      193842 107623
purchase of property plant and equipment      11939 66126
investments in associated companies      – 6370060
investment in subsidiary      286 –
loan investments advancedrepaid      4925092 270000
development expenditure      – 50048
net cash outflow from investing activities      4743475 6108611
f inancing activities
issue of equity share capital      11069825 5340000
net cash inflow from financing activities      11069825 5340000
n et increasedecrease in cash and cash equivalents    5183019 1181290
cash and cash equivalents at 1 april       2847749 4029039 
cash and cash equivalents at 31 march      19 8030768 2847749
c ompany c ash f low statement
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 19 1 g ene r al info rmation
toledo mining corporation plc is a company incorporated in england and wales under the companies act 1985 the company’s 
registered office is 11 albemarle street london w1s 4hh
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 from which the group operates
the board of directors has authorised the issue of these financial statements on the date of the statement as set out on page 15
2  a ccounting policies
basis of accounting
the financial statements have been prepared in accordance with international financial reporting standards ifrss for the first 
time the disclosures required by ifrs 1 concerning the transition from uk gaap to ifrss are given in note 31 to the financial 
statements
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
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 profit and loss 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
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 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
revenue recognition
revenue and other operating income represents 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
gains and losses on current asset investments represent realised and unrealised gainslosses
notes to the f inancial statements
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 20 2  a ccounting policies continued
f oreign 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 monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing 
on the balance sheet date nonmonetary assets and liabilities that are denominated in foreign currencies are retranslated at the 
rates prevailing at the balance sheet date gains and losses arising on retranslation are included in net profit or loss for the period 
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
deferred taxation
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
f inancial 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
n oncurrent intangible assets
noncurrent intangible assets are shown at cost less any provisions made in respect of impairment 
asset impairments
noncurrent intangible assets are reviewed for impairments 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
n oncurrent 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 straightline method on the following 
basis
office furniture and fittings        33–50
computer and office equipment        33–100
c ash and cash equivalents
cash and cash equivalents comprise cash held at bank and on shortterm deposits
f inancial liabilities and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangement entered into an 
equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities
toledo mining corporation plc
annual report 2007 21 2  a ccounting policies continued
t rade payables
trade payables are not interest bearing and are stated at their nominal value
t rade receivables 
trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated 
irrecoverable amounts
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
o perating leases
rental costs under operating leases are changed to the income statement on a straightline basis over the term of the lease where 
an incentive to sign the lease has been taken the incentive is spread on a straightline basis over the lease term
pension costs
the company makes defined contributions to the independent pension scheme of its employees
s harebased payments
the group has applied the requirements of ifrs 2 sharebased payments
the group issues equitysettled based 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 equity
settled 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
3 s egmental 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  2007
    uk philippines c hina t otal
    £ £ £ £
turnover    103681 – 82548 186229
lossprofit for the year    1622613 276289 81908 1264416
net assets     8925618 14136699 82418 23144735
 year ended 31 march  2006
    uk philippines china total
    £ £ £ £
turnover    187345 – – 187345
loss for the year    334768 388865 – 723633
net assets     2464915 10127433 – 12592348
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 22 4 n et loss f rom o pe r ations
net loss from operations is stated after chargingcrediting
      year ended year ended
      31 march 31 march
      2007 2006
      £ £
auditors’ remuneration
 as auditors      27300 26000
 as reporting accountants      11700 15900
 taxation compliance      2000 2990
audit fees – other auditor      9441 –
operating lease – office rent      69298 65982
realised gains on current asset investments     – 349654
unrealised lossesgains on current asset investments     93543 372077
depreciation      37326 27874
5 pa rticul a rs of em ployees
the average number of staff employed by the group during the financial year amounted to
      year ended year ended
      31 march  31 march
      2007 2006
      n o no
administrative staff      2 3
the aggregate costs of the above were
      £ £
wages and salaries      85001 154354
social security costs      8629 17375
pension costs – defined contribution      2350 3700
share based payments      35078 –
      131058 175429
6 di recto rs’ emoluments
the company also employed six 2006 five directors during the year with aggregate emoluments in respect of qualifying services 
as follows
      year ended year ended
      31 march  31 march
      2007 2006
      £ £
directors’ fees      15000 15000
amounts paid to third parties for the provision of directors’ services    87000 134995
share based payments      342050 –
      444050 149995
number of directors who exercised share options during the year    3 –
7 i nvestment income 
      year ended year ended
      31 march 31 march
       2007 2006
      c ompany company
      and g roup and group
      £ £
interest on bank deposits      302482 112989
interest on loan investments       16703 –
other interest      2292 22152
      321477 135141
toledo mining corporation plc
annual report 2007 23 8 i ncome ta x e x pense
 group
      year ended year ended
      31 march  31 march
      2007 2006
      £ £
taxation charge      – –
due to the taxable losses arising there is no charge to uk corporation tax
current tax reconciliation
loss for the year before taxation      1264416 723633
loss for the year multiplied by standard rate of uk corporation tax 30    379325 217089
effects of
expenses not deductible for tax purposes      223355 126693
non taxable incometax allowable expenses     – 162644
overseas profits      24573 –
share of associate results      82887 116660
increase in potential tax credits      263430 136380
tax charge      – –
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
9 l oss pe r sha re – inclu ding sha re of associates results
loss per share has been calculated by dividing the loss for the year after taxation including share of associates’ profits of £276289 
2006 loss £388865 attributable to the equity holders of the parent company of £1300374 2006 £723633 by the weighted 
average number of shares in issue at the year end of 27529424 2006 15096621
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 1495000 2006 3075000
l oss pe r sha re – e xclu ding sha re of associates results
loss per share has been calculated by dividing the loss for the year after taxation excluding share of associates’ profits of £276289 
2006 loss £388865 attributable to the equity holders of the parent company of £1576663 2006 £334768 by the weighted 
average number of shares in issue at the year end of 27529424 2006 15096621
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 1495000 2006 3075000
10 i ntangible assets
      2007 2006
company and group      £ £
exploration expenditure
c ost
balance brought forward      50048 3132887
additions       – 7643909
transferred to investments in associate companies     – 10464306
disposal      – 262442
write down      50048 –
balance carried forward      – 50048
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 24 10 i ntangible assets continued
      2007 2006
company and group      £ £
impairment
balance brought forward      – 262442
disposal      – 262442
balance carried forward      – –
n et book value      – 50048
the exploration expenditure relates to the company’s development costs and qualifying expenditure under the company’s venture 
agreements relating to the berong celestialipilan and ulugan nickel projects during the year ended 31 march 2006 the company’s 
interests in these projects vested and the total cost of these investments at that date was transferred to fixed asset investments refer 
note 13 additional expenditure incurred of £50048 has been charged to the income statement
11 pro pe rt y pl ant an d equi pment
     computer  furniture
     and office  fixtures and
     equipment fittings total
company and group     £ £ £
c ost
balance at 1 april 2006     52391 36185 88576
additions     7699 4240 11939
disposals     13252 – 13252
balance at 31 march 2007      46838 40425 87263
depreciation
balance at 1 april 2006     18647 11145 29792
charge for the year     23016 14310 37326
disposals     13252 – 13252
balance at 31 march 2007     28411 25455 53866
n et book value
at 31 march 2007     18427 14970 33397
at 31 march 2006     33744 25040 58784
     computer  furniture
     and office  fixtures and
     equipment fittings total
company and group     £ £ £
c ost
balance at 1 april 2005     17450 5000 22450
additions     34941 31185 66126
balance at 31 march 2006     52391 36185 88576
depreciation
balance at 1 april 2005     1778 140 1918
charge for the year     16869 11005 27874
balance at 31 march 2006     18647 11145 29792
n et book value
at 31 march 2006     33744 25040 58784
at 31 march 2005     15672 4860 20532
toledo mining corporation plc
annual report 2007 25 12  i nvestment in gr ou p u n de rtakings
       subsidiary 
       undertakings
company       £
balance at 1 april 2006       –
additions       286
balance at 31 march 2007       286
   proportion  
 country of  of voting  
subsidiary undertaking incorporation holding shares held nature of business
china nickel corporation british virgin islands ordinary shares 561 consultancy services
during the year the company acquired 561 of a newly formed company china nickel corporation
13 i nvestments in a ssociate d u n de rtakings
      2007 2006
company      £ £
c ost
balance brought forward      10466250 1944
transferred from intangibles      – 10464306
balance carried forward      10466250 10466250
      2007 2006
group      £ £
c ost
balance brought forward      10077385 1944
transferred from intangibles      – 10464306
share of associate undertakings’ results      276289 388865
balance carried forward      10353674 10077385
14 l oans an d receivables
      2007 2006
company and group      £ £
balance brought forward      – 270000
additions      1812274 –
disposals      – 270000
balance carried forward      1812274 –
on 12 april 2006 the company announced that it had negotiated to subscribe 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 per annum and is repayable out of acmdc’s share of the berong nickel project cash flow 
or is convertible into acmdc shares at the election of the company the total amount advanced at 31 march 2007 including 
accrued interest of us32737 was us2785987 £1472155
in may 2007 under the terms of the loan agreement the company elected to convert the loan into shares in acmdc
the company entered into an agreement to make a loan facility available to brooks nickel ventures inc brooks of up to us3 
million secured over brooks’ share of the ipilan nickel project the loan bears interest at 10 per annum and is repayable out of 
brooks’ share of the ipilan nickel project cash flow the total amount advanced at 31 march 2007 was us585191 £340119
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 26 15 tr a de an d othe r receivables – noncu rrent
      2007 2006
company and group      £ £
rent deposit      38450 38450
16 tr a de an d othe r receivables – cu rrent
    g roup c ompany group company
    2007 2007 2006 2006
    £ £ £ £
trade receivables    316144 233596 23576 23576
prepayments and accrued income    174138 174138 115955 115955
    490282 407734 139531 139531
17 l oans an d receivables – cu rrent
    g roup c ompany group company
    2007 2007 2006 2006
    £ £ £ £
balance brought forward    – – – –
loan amounts advanced    3129520 3129520 – –
balance carried forward    3129520 3129520 – –
during the year the company advanced £3129520 us6129258 to berong nickel corporation to meet the company’s pro rata 
share of expenditure on the berong nickel project this amount was repaid to the company in may and june 2007
18 c u rrent investments
    g roup c ompany group company
    2007 2007 2006 2006
    £ £ £ £
listed investments market value    915568 915568 897000 897000
19 c ash an d cash equivalents
    g roup c ompany group company
    2007 2007 2006 2006
    £ £ £ £
cash held in trust bank account    29957 29957 174514 174514
cash at bank and in hand    8001334 8000811 2673235 2673235
    8031291 8030768 2847749 2847749
the carrying amount of these approximates to their fair values
2 0 tr a de an d othe r payables
    g roup c ompany group company
    2007 2007 2006 2006
    £ £ £ £
trade payables    103689 103036 100906 100906
taxation    2929 2929 16368 16368
accruals    360937 360937 175525 175525
project expenditure payables    636473 636473 – –
other payables    555693 555693 1223800 1223800
    1659721 1659068 1516599 1516599
toledo mining corporation plc
annual report 2007 27 2 0 tr a de an d othe r payables continued
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
      2007 2006
       £ £
celestialipilan nickel project      – 672800
ulugan nickel project      555693 551000
      555693 1223800
21 c alle d u p sha re ca pital – com pany an d g rou p
    n umber £ number £
authorised    2007 2007 2006 2006
ordinary shares of 5p each    40000000 2000000 40000000 2000000
allotted and fully paid    28588333 1429417 17973333 898667
during the year the company issued the following shares
      nominal  share
date    number price value premium
4 april 2006    7870370 £108 £393519 £8106481
12 april 2006    1704630 £108 £85231 £1755769
17 january 2007     300000 £125 £15000 £360000
12 february 2007     50000 £100 £2500 £47500
13 march 2007     200000 £100 £10000 £190000
13 march 2007     240000 £150 £12000 £348000
22 march 2007    50000 £100 £2500 £47500
23 march 2007     200000 £150 £10000 £290000
t otal    10615000  £530750 £11145250
the company has one class of ordinary shares which carry no right to fixed income
share options and warrants in existence at 31 march 2007 are as follows
    exercise 
number   description price expiry date
100000   ordinary shares £100 7 april 2007
425000   ordinary shares  £150 30 november 2007
250000   ordinary shares  £150 7 march 2009
620000   ordinary shares  £150 30 november 2011
100000   ordinary shares  £175 30 november 2011
 or 90 days after the optionholder ceases to be engaged by the company if earlier
22  s ha re premium account
      2007  2006
company and group      £ £
balance brought forward      12523833 7393833
premium arising on issue of equity shares      11145250 5130000
placing commission      450908 –
placing commission – share warrants granted     155267 –
balance carried forward      23062908 12523833
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 28 23 s ha re base d payments rese rve
      2007  2006
company and group      £ £
balance brought forward      360571 –
options issued to directors staff and professional advisors and charged to the income statement  591488 360571
options issued to professional advisors and charged to share premium account   155267 –
balance carried forward      1107326 360571
24 mino rit y inte rest
the minority interest is in relation to a 439 share in china nickel corporation 
      2007 2006
group      £ £
share of current assets      36468 –
share of current liabilities      287 –
      36181 –
25 c ash flows f rom o pe r ating activities
      2007 2006
group      £ £
net loss from operations      1585893 858774
adjustments for
increasedecrease in trade and other receivables     239596 273844
increase in trade and other payables      143122 171191
write down of intangible expenditure      50048 –
share based payments      746755 360571
share of associate undertakings profitslosses     276289 388865
increase in current investments      18568 776250
depreciation      37326 27874
net cash outflow from operating activities      1143095 412679
      2007 2006
company      £ £
net loss from operations      1944090 469909
adjustments for
increasedecrease in trade and other receivables     157271 273844
increase in trade and other payables      142469 171191
write down of intangible expenditure       50048 –
share based payments      746755 360571
increase in current investments      18568 776250
depreciation      37326 27874
net cash outflow from operating activities      1143331 412679
26 c ont rolling pa rt y
there is no ultimate controlling party of the company
toledo mining corporation plc
annual report 2007 29 27 rel ate d pa rt y t r ansactions
c kyriakou r cleary and r shakesby are directors and r eccles was a director of tarquin resources plc
the company provided and recharged to tarquin resources plc office support staff and expenses of £64463 2006 £67055
tarquin resources plc provided support and consultancy services to the company for £14205 2006 £2758
at the year end tarquin resources plc owed the company £6084 2006 £8225
c kyriakou and r cleary are directors of investika limited an australian investment company
investika limited provided and recharged to the company support staff and expenses of £61372 2006 £80776 and £nil 2006 
£3745 for the provision of the director services of r cleary
the company owed £nil 2006 £29506 to investika limited and which is shown in trade payables
the company was charged £nil 2006 £90000 by capma pty ltd for the provision of the services of c kyriakou as director of  
the company capma pty ltd paid expenses on behalf of the company of £96121 2006 £198369 which was recharged  
to the company
at the year end the company owed £13994 2006 £nil to capma pty ltd
the company was charged £60000 2006 £15000 by resource capital partners inc for the provision of services of c kyriakou 
as director of the company
the company was charged £41557 2006 £26078 by accomplishments pty ltd for the provision of services of r cleary £15000 
2006 £11250 for services as director of the company and £26557 2006 £14828 for services as a consultant to the 
company
the company was charged £11250 2006 £15000 by match number limited for the provision of j m roberts as director of the 
company
the company was charged £750 2006 £nil by metal analysis limited for the provision of r eccles as director of the company
the company was charged £15000 2006 £15000 by r shakesby for the provision of director services
the company was charged £192733 2006 £70312 by g bujtor as consultant and which are included in accruals
the company was charged £64665 2006 £nil for the services of g bujtor as consultant by global resources  marketing 
services sa
the company was charged £2956 2006 £nil for the services of g bujtor as consultant by resource  project commercialisation 
pty ltd
c kyriakou r cleary and g bujtor are directors and j m roberts was a director of umc energy plc
the company provided and recharged to umc energy plc office support staff and expenses of £64462 2006 £78963
umc energy plc provided support staff to the company for £7161 2006 £nil
at the year end the company was owed £6084 by umc energy plc
c kyriakou g bujtor and r eccles are directors of belitung zinc corporation plc
the company provided and recharged to belitung zinc corporation plc office support staff and expenses of £64482 2006 
£20678
belitung zinc corporation plc provided support staff to the company for £7161 2006 £nil
at the year end the company was owed £6084 2006 £nil by belitung zinc corporation plc
the company is joint venture partner with atlas consolidated mining and development corporation “acmdc” under the berong 
venture agreement 
under the berong celestial and ulugan venture agreements the company has through the expenditure of qualifying costs of 
£10464306 2006 £10464306 acquired equity interests in the following philippines’ registered companies
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 30 27 rel ate d pa rt y t r ansactions continued
  ulugan  nickeline nickel 
 tmm  resources ulugan resources laterite  ipilan
 management holdings nickel holdings resources berong nickel
  inc inc corp inc  inc nickel corp corp
direct 40 30 40 40 20 213 40
indirect – – 18 18 – 348 12
total 40 30 58 58 20 561 52
in april 2006 the company entered into an agreement to subscribe 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 cash 
flows the note bears interest at the rate of 10 per annum and is repayable out of acmdc’s share of the berong nickel project 
cash flow or is convertible into acmdc shares at the election of the company in order to fund the note the company placed 
1704630 new ordinary shares at £108 per share to raise £1841000
the company advanced us2753250 to acmdc under the loan note this amount together with accrued interest of us32737 
is shown under noncurrent loan investments at £1472155 see note 14 accrued interest of us100000 arising on the loan note 
was waived during the year
in may 2007 the company consummated an arrangement whereby it agreed to make a loan facility available to brooks nickel 
ventures inc “brooks” of up to us3 million to enable that company to meet its funding requirements to ipilan nickel corporation 
under the celestial joint venture agreement brooks confirmed that the £340119 us585191 already advanced by the company 
in excess of its us2 million funding commitment would be subject to the terms of the agreement this amount is shown under non 
current loan investments see note 14
the company under the celestial venture agreement advanced the remainder of its expenditure commitments of us1160000 
£672800
at the year end the company’s expenditure commitment under the ulugan venture agreement is 950000 £551256
under the berong venture agreement the company has advanced funds to berong nickel corporation to meet ongoing mine 
development costs
the total amount advanced at the year end was £3129520 us6129258 and is shown in current loans and receivables see note 
17 this amount was repaid by june 2007
celestial nickel mining exploration corporation “cnmec” owns 40 of the issued share capital of nickel laterite resources inc 
there is a royalty agreement in place such that the company has a commitment to make certain payments to cnmec as follows
 
upon completion of a feasibility study       us200000
upon completion of a positive bankable feasibility study      us500000
upon the commencement of construction of plant      us1200000
28 c ommitments
under a royalty agreement the company has made a commitment to make certain payments to celestial nickel mining exploration 
corporation as follows
 
upon completion of a feasibility study       us200000
upon completion of a positive bankable feasibility study      us500000
upon the commencement of construction of plant      us1200000
2 9 post bal ance sheet events
subsequent to 31 march 2007 the company has
recovered us6129259 £3129522 of funds advanced to the berong nickel project
elected to convert its loan to acmdc of us2753250 into shares in that company
advanced a further us19 million to brooks bringing the total amount advanced to that company under the loan facility to 
us25 million 
allotted 600000 ordinary shares to raise £875000 following the exercise of options and warrants
u
u
u
u
toledo mining corporation plc
annual report 2007 31 30 f inancial assets an d liabilities
the group’s financial instruments comprise cash and cash equivalents intangible assets 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
f oreign 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 
 
l iquidity risk – the group’s policy throughout the period has been to ensure that it has adequate liquidity by careful management 
of its working capital
c redit risk – the group’s credit risk is primarily attributable to its loan investments the amounts presented in the balance sheet 
are considered by the group’s management to be recoverable in full
extent and nature of financial instruments
the group held the following financial assets at the year end
      2007 2006
      £ £
intangible assets      – 50048
tangible assets      33397 58784
investments in associate undertakings      10353674 10077385
loans and receivables      4941794 –
trade and other receivables      528732 177981
investments in listed securities      915568 897000
shortterm deposits      6915102 2506000
cash at bank and in hand      1116189 341749
t otal      24804456 14108947
shortterm deposits are held on call money market accounts the weighted average rate of interest earned on these deposits was 
4 no funds are held on fixed rate terms
the group held the following financial liabilities at the year end
      2007 2006
      £ £
trade and other payables      464626 276431
tax liabilities      2929 16368
project related payables      1192166 1223800
      1659721 1516599
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 32 31 f i rst time a do ption of if rs 
the financial statements have been prepared in accordance with international financial reporting standards ifrss for the first 
time
a reconciliation between the 2006 income statement and balance sheet as shown under uk gaap is shown below and comprises 
the following reconciling items
       £
share based payments       360571
increase in current asset investments from cost to market value     372077
net decrease in retained loss       11506
i ncome s tatement
     year ended  year ended
     31 march   31 march
     2006 reconciling 2006
     ifrs items uk gaap
     £ £ £
revenue     187345  187345
gross profit     187345  187345
administration expenses     1511007 360571 1150436
other operating income     132022  132022
movementgains on current asset investments    721731 372077 349654
share of results of associates     388865  388865
loss from operations     858774  870280
investment income     135141  135141
loss before taxation     723633  735139
income tax expense     –  –
loss for the year     723633  735139
toledo mining corporation plc
annual report 2007 33 31 f i rst time a do ption of if rs continued 
b al ance s heet
     as at  as at
     31 march   31 march
     2006 reconciling 2006
     ifrs items uk gaap
     £ £ £
assets
noncurrent assets
intangible assets      50048   50048
property plant and equipment      58784   58784
investments in associate undertakings      10077385  10077385
loans and receivables     –  –
trade and other receivables      38450  38450
t otal noncurrent assets     10224667  10224667
c urrent assets
trade and other receivables     139531  139531
loans and receivables     –  –
current investments     897000 372077 524923
cash and cash equivalents     2847749  2847749
t otal current assets     3884280  3512203
t otal assets     14108947  13736870
equity an d liabilities     
c urrent liabilities
trade and other payables     1516599  1516599
t otal current liabilities     1516599  1516599
t otal liabilities     1516599  1516599
equity 
share capital      898667  898667
share premium account     12523833  12523833
share based payments reserve     360571 360571 –
retained loss     1190723 11506 1202229
equity attributable to equity holders of the parent    12592348  12220271
t otal equity and liabilities     14108947  13736870
notes to the f inancial statements continued
for the year ended 31 march 2007
toledo mining corporation plc
annual report 2007 34 32  a ssociate u n de rtakings
the company has equity holdings in the following associate undertakings
  ulugan  nickeline nickel  
 tmm resources ulugan resources laterite berong ipilan
 management holdings nickel holdings resources nickel nickel
 inc inc corp inc inc corp corp
direct 40 30 40 40 20 213 40
indirect – – 18 18 – 348 12
t otal 40 30 58 58 20 561 52
summarised results of the associate undertakings as translated in sterling are as follows
year ended 31 march 2007
    berong ipilan  
    nickel  nickel remaining 
    corporation corporation associates total
    £ £ £ £
revenue    2910323 – 13926 2924249
profitloss for the year    566039 59829 15517 490693
total assets    9797642 1518015 227332 11542989
total liabilities    7692443 140901 68571 7901915
year ended 31 march 2006
    £ £ £ £
revenue    – – 5505 5505
loss for the year    350818 359573 14959 725350 
total assets    2085276 464996 238530 2788802 
total liabilities    102647 4008 128318 234973 
33 op e r ating le ase commitments
the company and group had outstanding operating lease commitments falling due as follows
      2007  2006
      £  £
land and buildings 
within one year      76895 76895
within 2–5 years      153790 230685
total      230685 307580
toledo mining corporation plc
annual report 2007 35 di recto rs 
chrisilios kyriakou chairman
george bujtor chief executive officer
robert cleary nonexecutive director
reg eccles nonexecutive director
roger shakesby nonexecutive director
s ec reta ry
jonathan reynolds
registe re d o ffice
11 albemarle street 
london
w1s 4hh
n ominate d ad vise r
nabarro wells  co limited
saddlers house
gutter lane
london
ec2v 6hs  
br oke r
w h ireland limited
24 martin lane
london
ec4r 0dr   
s olicito rs 
beshoffs solicitors
12 walker avenue 
stratford office village wolverton mill
milton keynes
mk12 5tw 
a u dito rs
sawin  edwards
15 southampton place
london
wc1a 2aj
princi pal b anke rs
coutts  co
188 fleet street
london
ec4a 2ht
 
regist r a rs
capita irg plc
bourne house
34 beckenham road
beckenham
kent
br3 4tu
c orporate directory
toledo mining corporation plc
annual report 2007 36 toledo mining is focused on nickel 
mining and development in the 
philippines it has significant interests 
in three nickel laterite projects on 
palawan in the philippines
the company has a 561 interest  
in the berong deposit comprising 
the berong moorsom and long 
point deposits which has a 
combined prejorc
1
 resource of 
approximately 275 million tonnes of 
nickel ore the company also has a 
52 interest in the celestialipilan 
deposit which has a prejorc 
resource of approximately 75 million 
tonnes of nickel ore
1 our prejorc resource referred to throughout this report is 
defined as being conceptual in nature with insufficient 
exploration to define the mineral resource  and  with uncertainty 
as to whether further exploration will result in the determination 
of a mineral resource annual report 2007
toledo mining corporation plc annual report 2007
toledo mining corporation plc
london
ground floor
11 albemarle street
london w1s 4hh
united kingdom
t 44 0 20 7514 1480
f 44 0 20 7514 1486
e infotoledominingcom
philippines
third floor philam building
100 c palanca street  
cor dela rosa street
legaspi village 
1229 makati city 
metro manila
the philippines
t  63 2 817 7104
f  63 2 817 2357
e infotoledominingcom


Summary:
 chairman’s
statement
the celestialipilan orebody on the 
eastern side is largely limonite this 
allows us to consider all of the available 
options for value added processing on 
site snc lavalin has been appointed to 
work with us to evaluate these options 
 
with the experience the company is 
gaining in china in the pig nickel industry 
we are looking closely at participating 
with some of our customers in further 
developing their pig nickel businesses 
we feel that this will give us valuable 
experience to build similar facilities in the 
philippines we have recently appointed 
cibc world markets to assist us evaluate 
future financing options and to provide 
other advisory and banking services
we have now signed our first longterm 
supply agreement with queensland 
nickel pty ltd a wholly owned subsidiary 
of bhp billiton for up to 500000 tonnes 
of ore per annum which is another 
milestone for the company however 
demand for similar grade nickel ore 
remains very strong from chinese 
customers and we do see our developing 
relationships here as also very important 
we expect that until we have developed 
our own value added processing on site 
the majority of our exports will be to 
chinese customers longterm contracts 
with a number of these existing customers 
are being negotiated
for calendar 2007 we anticipate 
producing 850000 tonnes of ore and 
subject to the vagaries of the weather 
and availability of vessels shipping 
700000 tonnes annualised production 
is now running in excess of 1 million 
tonnes with a target of 15 million tonnes 
for calendar 2008
 
demand for nickel remains strong world
wide and particularly from china and 
india with stainless steel production 
being the major driver most analysts see 
the supplydemand gap increasing in the 
future with limited supply and increasing 
demand whilst the company’s view is 
one of cautious optimism given the grade 
of our orebodies and their size we expect 
to be able to weather any downturns 
whilst being in a position to reap 
considerable rewards during positive 
market conditions
in march 2007 i was very pleased to 
welcome reg eccles as an independent 
nonexecutive director 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 
publishing business and served as head 
of global mining equities for both sbc 
warburg now ubs and abn amro
 
during the year merfyn roberts resigned 
as a nonexecutive director of the 
company due to other work commitments 
i would like to express my heartfelt thanks 
to mr roberts for his significant 
contribution to the company
chris kyriakou
26 september 2007
demand for nickel 
remains strong 
worldwide particularly 
from china and india 
with stainless steel 
production being  
the major driver
in the year under review toledo mining 
corporation’s activities continued to be 
focused on the development and 
evaluation of several large laterite nickel 
orebodies on palawan island in the 
philippines
without doubt the most exciting time for 
a developing mining company is when it 
commences production and achieves 
positive cash flow in january 2007 we 
delivered our first shipment of laterite ore 
from our berong deposit a milestone for 
the company other shipments followed 
all from the berong orebody and almost 
all has been shipped to china
what makes this a particularly significant 
achievement is that it was done in less 
than three years from the company’s 
formation an outstanding achievement 
and one of which we are extremely proud 
the company’s management team led 
by ceo george bujtor and workforce 
must indeed be congratulated for this 
achievement
 
our orebodies are in total amongst the 
largest in the world with a prejorc
1
 
resource of over 350 million tonnes of 
13 ni and 01 co containing about 
45 million tonnes of ni with an insitu 
value in excess of us127 billion at the 
current price of nickel given the relatively 
high grade of the deposits compared to 
most other nickel laterite ore bodies 
around the world the philippines pro
mining attitude and the sheer size of the 
orebodies it is reasonable to expect that 
they will be developed well ahead of most 
others we also have the advantage that 
the berong orebodies on the western 
side of palawan are largely saprolite and 
toledo mining corporation plc
annual report 2007 04