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Toledo Mining Corporation PLC (TMC)

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Thursday 22 December, 2011

Toledo Mining Corporation PLC

Toledo Mining Corporation Plc Interim Results f...

Toledo Mining Corporation Plc Interim Results for the six month period ended 30 September 2011

The first half of this financial year proved very productive for Toledo as we and our Philippine partners restarted the Berong Nickel Mine in which Toledo has a 56.1% economic interest.  

  • The mine ramped up to full production capacity in June and to date, 442,000 wmt (wet metric tonnes) of ore grading at 1.83% nickel have been mined, consistent with the forecast of 450,000 wmt stated in Toledo's 2011 Annual Report
  • Six shipments of ore are expected to generate total revenues of US$13.8 million for Berong Nickel Corporation (BNC)
  • Toledo Mining Corporation recorded an attributable loss of £310,127 compared to a loss of £1,302,721 for the comparable 2010 period
  • After accounting for attributable losses, total assets as at 30 September 2011 were £27,182,788, equivalent to 54 pence per ordinary share
  • Loan repaid from Atlas Consolidated Mining and Development Corporation to Toledo of US$4.5 million received, Toledo had cash holdings of £3.78 million at 30 September 2011
  • Current stockpile of 247,000 wmt of approximately 1.8% high grade ore already mined in preparation for 2012 shipping window - potential revenue in excess of US$10 million

 Reg Eccles, Chairman, said, "Whilst, given current concerns for global economic growth, it is sensible to be cautious about the prospects for the nickel market in the coming year; the demand from China for laterite nickel ore is expected to remain strong and support, if not recent historically high spot prices, then prices which generate healthy margins for Berong ore".

"Your company and Berong Nickel Corporation together enter the coming year adequately funded to support operations until the shipping window reopens, carry out exploration for more ore, and undertake engineering studies for both  improved ship loading capability at Berong and determining the optimal method for treating the lower grade limonite ore".

Victor Kolesnikov, CEO, adds "We are witnessing a significant change in Chinese stainless steel production practice, which has positive implications for the future of Berong's high grade ore product. The 2011 marketing strategy, to focus on taking advantage of strong spot market prices for high grade ore, has proven to be the right course of action. Despite the recent drop in refined nickel prices, the payable factor of nickel content in the high grade ore has increased significantly this year."

For further information, please visit www.toledomining.com or contact:

Reg Eccles, Chairman, Toledo Mining Corporation  +44 (0) 20 7290 3100
   
Katie Grinham, Toledo Mining Corporation +44(0) 7958 765 745
   
Anthony Rowland / Jen Boorer, Ambrian Partners Ltd +44 (0) 20 7634 4858
   
Anthony Shewell / Alex Glover, Fin Public Relations +44 (0) 20 7608 2280

CONTENTS

 
Page
Chairman's Statement 1-2
Chief Executive Officer's Review 3-5
Independent Review Report 6-7
Condensed Consolidated Interim Income Statement 8
Condensed Consolidated Interim Statement of Comprehensive Income 9

Condensed Consolidated Statement of Financial Position 10-11
Condensed Consolidated Statement of Changes in Equity 12-14
Condensed Consolidated Interim Statement of Cash Flows 15
Notes to the Condensed Financial Statements 16-23

CHAIRMAN'S STATEMENT

Operations

The first half of this financial year proved very productive for Toledo as we and our Philippine partners put into effect plans, formulated in late 2010, to restart the Berong Nickel Mine in which Toledo has a 56.1% economic interest.

A reassessment of the ore reserves at Berong indicated that it would be possible to mine economically the higher grade saprolite ore which lies below the limonite ore, thereby facilitating two product streams - saprolite ore, with an average nickel grade of 1.8%, for immediate sale into the rapidly expanding Chinese ferronickel industry and limonite ore, averaging 1.3% nickel, to be set aside for possible future value added processing.

In April, Berong announced the sale to China of some 150,000 wet metric tonnes (wmt) of stockpiled low grade ore to provide the essential working capital to reactivate the mine; which duly commenced operations in May. July saw the first shipment of stockpiled ore and in September, Berong made its first shipment of high grade 1.8% nickel ore.

The commencement of mining of 1.8% material coincided with historically high spot prices for such ore as demand by Chinese ferronickel producers surged. To take advantage of this development, Berong has, quite rightly, elected to postpone until 2012, discussions with customers regarding potential long term sales contracts.

Given the tropical conditions and the coastal tide patterns, which can seriously disrupt ship loading at Berong, management's best laid plans can be thwarted by the weather. This is what happened during September and early October when ship loading was disrupted by a series of typhoons during what are normally relatively calm sea conditions. Perversely, conditions during late October through to December, when the shipping window can be expected to be well and truly shut, proved amenable to ship loading.  This has enabled Berong to make five shipments since the recommencement of operations, with a further shipment almost fully loaded and expected to sail before the end of December. The  total tonnage including this final shipment  should then exceed 315,000 wmt, and generate a gross revenue for BNC of US$13.8 million.

It is highly unlikely that there will be further shipments between the end of December and March, but Berong enters this period with a 247,000 wmt stockpile of 1.8% material ready for shipment once the shipping window reopens. At current spot prices this stockpile would generate sales revenue well in excess of $10 million.

None of the foregoing could have been achieved without experienced and dedicated employees both in Manila and at Berong. To reinforce local management, we were pleased to announce the appointments of Victor Kolesnikov as Chief Executive of Toledo in March and Pierre Charlent as Chief Operating Officer, based in the Philippines, in May. Between them, Victor and Pierre have almost 50 years experience in the nickel mining and metals industry, of which the majority has been in a variety of technical and commercial positions in the nickel business.

Financial

For the six months to 30 September 2011, Toledo Mining Corporation recorded an attributable loss of £310,127 after accounting for foreign exchange gains of £436,621, and an impairment charge of £304,764 both of which arose primarily from currency translation of the US Dollar denominated loans advanced by Toledo to its Philippine partners. The attributable loss was a significant improvement on the loss of £1,302,721 for the comparable 2010 period.

After accounting for attributable losses, total assets as at 30 September 2011 were £27,182,788, equivalent to 54 pence per ordinary share.

On 11 July 2011, Toledo reported that it had reached agreement for the early redemption of a loan advanced to Atlas Consolidated Mining and Development Corporation to fund its share of development costs of the Berong mine. The settlement involved the payment to Toledo of US$4.5 million payable in three instalments, the last of which was received in September.

As a consequence of this transaction, Toledo had cash holdings of £3.78 million at 30 September 2011.

Ipilan

On 18 October 2011, Toledo announced that it had accepted an offer from Jinchuan Group Ltd, China's predominant producer of refined nickel, to acquire Toledo's 52% economic interest in Ipilan Nickel Corporation. The offer is subject to a 90 day period of due diligence and contract preparation which expires in mid January. The offer is also conditional upon Jinchuan successfully completing separate negotiations with Toledo's Philippine partners in Ipilan.

If the deal proceeds, Toledo will receive US$17.4 million. The exact disposition of the proceeds has yet to be determined although it  will almost certainly include some geographic diversification.

Outlook

Whilst, given current concerns for global economic growth, it is sensible to be cautious about the prospects for the nickel market in the coming year; the demand from China for laterite nickel ore is expected to remain strong and support, if not recent historically high spot prices, then prices which generate healthy margins for Berong ore.

Your company and Berong Nickel Corporation together enter the coming year adequately funded to support operations until the shipping window reopens, carry out exploration for more ore, and undertake engineering studies for both  improved ship loading capability at Berong and determining the optimal method for treating the lower grade limonite ore.

Despite the challenging environment of the past few years, Toledo is firmly back in the business of mining. I am confident that the company and its Philippine partners now have an operating plan which will generate sustainable benefits for Toledo shareholders, our partners and our shared employees.

Reg Eccles

Chairman

Toledo Mining Corporation PLC

CHIEF EXECUTIVE OFFICER'S REVIEW

Operations

At a time of favourable market conditions for high grade saprolite ore, the strategy agreed with our partners in Berong Nickel Corporation (BNC), to target production of ore containing 1.8% nickel, resulted in the Berong mine successfully recommencing operations in May 2011. Toledo has a 56.1% economic interest in BNC.

The mine ramped up to full production capacity in June and to date, 442,000 wmt (wet metric tonnes) of ore grading at 1.83% nickel have been mined, consistent with the forecast of 450,000 wmt stated in Toledo's 2011 Annual Report. To date, Berong has made three shipments of low grade ore totalling 156,000 wmt averaging 1.54% nickel , comprised of 122,000 wmt from the stockpile left over from 2009 augmented by 34,000 wmt of newly mined ore to improve grades, and two shipments of high grade ore totalling 104,000 wmt of 1.83% nickel. A third shipment  of high grade ore is almost fully loaded and due to sail before the end of December, then bringing the high grade shipment total to around 161,000 wmt.  These shipments ware expected to generate total BNC revenues of US$13.8 million. This will  bring the total shipped tonnage of newly produced ore to 195,000 wmt.

This was at the lower end of the revised target for this year of 200,000-250,000 wmt, the main reason being the very difficult weather conditions experienced during September and October when four major typhoons hit the Philippines. Local management is, however currently loading a further shipment which is completely outside of the normal shipping period of March to October.

The successful operations in 2011 have confirmed the validity of the targeted high grade annual production capacity of 750,000 wmt at the Berong mine, which Berong will be targeting from the beginning of 2012 onwards. At this production rate the Berong mine has sufficient known reserves of 1.8% grade ore for 9 years of operation.  We would hope that long before these reserves were depleted, exploration in this highly prospective region would have added significant additional resources.

The 2011 marketing strategy, to focus on taking advantage of strong spot market prices due to increased demand from China for high grade ore, has proven to be the right course of action. Despite the recent drop in refined nickel prices, the payable factor of nickel content in the high grade ore has increased very significantly this year. Together with continuing strong demand from China, this gives us increased confidence for the future of the direct ore shipping operations at Berong. At the same time, we continue to move forward in close and constant co-operation with potential customers for long-term contracts.

Market Conditions

We are witnessing a very significant change in Chinese stainless steel production practice, which has positive implications for the future of Berong's high grade ore product. This new development is the integration of electric arc furnace (EAF) ferronickel production directly into stainless steel operations, when ferronickel in a liquid form goes directly into converters for stainless steel slab production, providing significant energy savings. In this case, high grade saprolite ore, which has an average iron (Fe) content of between 15-20%, becomes an ultimate source of both the nickel and the iron required for stainless steel production.

These recent developments in China of integrated stainless steel production directly from laterite ore, open a new opportunity for Berong as the iron in the ore has an intrinsic value.  We believe that this year's spot price increase reflects the beginning of these new developments. Berong's close proximity to China also gives it a geographical advantage compared with Indonesian and New Caledonian miners.

Value Added Opportunities

Whilst the high grade ore is well placed on the market to provide BNC with a robust return to shareholders, we continue to assess the viability of value added technologies for the lower grade limonite ore, which makes up a substantial portion of our resources. Past studies conducted by SNC Lavalin confirmed that the most suitable and proven technology for this type of low grade ore is high pressure acid leaching (HPAL). Additionally, the existing successful HPAL operation at Coral Bay on Palawan Island in the Philippines on comparable ore types gives us further assurance that this technology is suitable for Berong's ore and for the Palawan environment. At the same time, we will continue to monitor all new developments in Blast Furnace and EAF technology in China to ensure that the strategy is constantly refined and reviewed to align with market demands.   

Social Responsibility

Berong continues to set the benchmark in best practice for its environmental protection and safety. We are pleased to inform our shareholders that BNC recently received a letter from The Mines and Geosciences Bureau (MGB) advising that the Berong mine has been chosen by MGB as an example of high standards of environmental protection and enhancement activities and will be used as a yardstick for other mining companies in the Philippines.  The Berong mine also received a Certificate of Recognition from MGB for two million man-hours without incurring a lost time accident. This certificate attests to the world class safety standards and practices Berong management implements in its mining operations.

Funds from royalty payments made to the indigenous people continue to provide essential services to the community as well as establishing livelihood projects, which aim to empower the local community in generating its own income.  Management consistently invests more time and money into Corporate Social Responsibility (CSR) projects than mandated by law, and continue to strive to contribute positively to the local environment and communities amongst which it operates.  This contribution has been formally recognised by MGB.

Ipilan

Turning to Ipilan, in which Toledo holds a 52% economic interest, the Mining Project Feasibility Study was carried out in August 2010 and the relevant documents were compiled and submitted to the Mines and Geosciences Bureau for review and approval in November 2010. These included a Declaration of Project Mining Feasibility (DMF), Environmental Protection and Enhancement Program, Final Mine Rehabilitation and Decommissioning Plan, Social Development and Management Plan and a Health and Safety plan. Endorsement of the all-important Strategic Environmental Plan (SEP) has been received from the Palawan Council for Sustainable Development (PCSD).  We are awaiting approval of the DMF submissions by MGB next year.

Finally, I take this opportunity to offer my sincere thanks to all of our staff and management both locally in the Philippines and in the UK, without whom the growing success of the operations would not be possible.  In addition, I wish to acknowledge the cooperation of the local community in the Philippines, the Local Government Units and the Provincial and National Government in their support as our operations continue to forge strong relationships. Lastly, I extend my thanks to our shareholders for their sustained support.

We look ahead to 2012 with confidence and the prospect of a rewarding year.

Victor Kolesnikov

Chief Executive Officer

Toledo Mining Corporation plc

INDEPENDENT REVIEW REPORT TO TOLEDO MINING CORPORATION PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 which comprises the Condensed Consolidated Interim Income Statement, the Condensed Consolidated  Interim Statement of Comprehensive Income, the Condensed  Consolidated Statement of Financial Position, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Interim Statement of Cash Flows and the related notes numbered 1 to 9. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

The report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM Rules require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.

As disclosed in note 2, the condensed consolidated interim financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union. The annual financial statements of the group have been prepared in accordance with IFRSs as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

INDEPENDENT REVIEW REPORT TO TOLEDO MINING CORPORATION PLC (continued)

Conclusion

Based on  our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union.

Sawin & Edwards

Chartered Accountants

15 Southampton Place

WC1A 2AJ

22 December 2011

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

Six month period ended 30 September 2011

 

 NoteSix months period ended

 30 September

 2011

 (Unaudited)

£
 Six months period ended

 30 September

 2010

 (Unaudited)

£
 Year ended

 31 March 2011

(Audited)

£
Revenue   98,753   270,186   457,949
             
Gross profit   98,753   270,186   457,949
Administrative expenses   (782,737)   (970,572)   (2,023,351)
Foreign exchange gains/(losses)   436,621   (654,177)   (946,775)
Other operating income   44,763   41,672   153,179
Unrealized losses on investments   (304,764)   -   (1,619,527)
Share of results of associates   178,072   (536,839)   (1,225,830)

(Loss) / profit  from operations
 
(329,292)
 
(1,849,730)
 
(5,204,355)
             
Investment income   9,504   530,820   827,012
                               

(Loss) / profit  before taxation
 
(319,788)
 
(1,318,910)
 
(4,377,343)
Income tax expense   -   -   -
                                           

Loss  for the period
 
(319,788)
 
(1,318,910)
 
(4,377,343)
             
Attributable to:            
Equity holders of the parent   (310,127)   (1,302,721)   (4,388,197)
Minority interest   (9,661)   (16,189)   10,854
 
(319,788)
 
(1,318,910)
 
(4,377,343)
             
(Loss) / earnings  per share (pence) - including share of associates results 4          
Basic   (0.62)   (3.14)   (10.16)
Diluted   (0.62)   (3.08)   (10.16)
             
(Loss) / earnings   per share (pence) - excluding share of associates results 4          
Basic   (0.98)   (1.84)   (7.32)
Diluted   (0.98)   (1.81)   (7.32)

 

The Group has no recognised gains or losses other than the results for the periods as set out above.

CONDENSED CONSOLIDATED INTERIM STATEMENT

OF COMPREHENSIVE INCOME

Six month period ended 30 September 2011

 

 NoteSix months period ended

 30 September

 2011

 (Unaudited)

£
 Six months period ended

 30 September

 2010

 (Unaudited)

£
 Year ended

 31 March 2011

(Audited)

£
Loss for the period   (319,787)   (1,318,910)   (4,377,343)

Foreign currency translation differences for foreign operations
 
22,242
 
(40,714)
 
55,551

Other comprehensive income /(expense) for the period
 
22,242
 
(40,714)
 
55,551

Total comprehensive expense for the year
 
(297,545)
 
(1,359,624)
 
(4,321,792)
Attributable to:            
Equity holders of the parent   (297,649)   (1,325,562)   (4,357,033)
Minority interests   104   (34,062)   35,241


 
(297,545)
 
(1,359,624)
 
(4,321,792)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                     As at 30 September 2011

 

 NoteAs at

30 September 2011

(Unaudited)

£
 As at

30 September 2010

(Unaudited)

£
 As at

31 March 2011

 (Audited)

£
            
ASSETS           
            
Non Current Assets           
Property, plant and equipment   933   423   1,184
Investments in associated undertakings   8,309,112   9,872,871   8,435,801
Loans and receivables   14,127,422   15,601,317   16,127,408
Trade and other receivables   -   40,036   -

Total non-current assets
 
22,437,467
 
25,514,647
 
24,564,393
             
             
Current Assets            
Trade and other receivables   963,800   1,137,563   976,675
Cash and cash equivalents   3,781,521   1,924,050   1,877,242

Total current assets
 
4,745,321
 
3,061,613
 
2,853,917


 

 

 


Total Assets
 
27,182,788
 
28,576,260
 
27,418,310
             
             
EQUITY AND LIABILITIES            
             
Current Liabilities            
Trade and other payables   752,192   670,626   690,168
             

Total current liabilities
 
752,192
 
670,626
 
690,168
           

Total Liabilities
 
752,192
 
670,626
 
690,168
            

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(continued)

As at 30 September 2011

 

            

 
 NoteAs at

30 September 2011

(Unaudited)

£
 As at

30 September 2010

(Unaudited)

£
 As at

31 March 2011

 (Audited)

£
            
Equity and Reserves           
            
Called up share capital 5 2,492,267   2,076,917   2,492,267
Share premium   28,714,157   27,218,897   28,714,157
Share based payments reserve   193,801   229,033   193,801
Translation reserve   91,283   87,129   78,806
Profit and loss account   (5,443,576)   (2,068,373)   (5,133,449)

Equity attributable to equity holders of the parent
  26,047,932   27,543,603   26,345,582
Minority interest   382,664   362,031   382,560
             

Total Equity
 
26,430,596
 
27,905,634
 
26,728,142
             
Total equity and liabilities   27,182,788   28,576,260   27,418,310

 

These interim results were approved by the Board on 22 December 2011 and signed on its behalf by:

Reginald Eccles

Chairman

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six month period ended 30 September 2011

 

          Share           Trans-    
          Based           lation    
  Share   Share   Payments   Retained   Minority   Exchange    
  Capital   Premium   Reserve   Loss   Interest   Reserve   Total
  £   £   £   £   £   £   £
Balance at 1 April 2011 2,492,267   28,714,157   193,801   (5,133,449)   382,560   78,806   26,728,142
Total comprehensive income /(expense)                          
Loss for the period -   -    

-
  (310,127)   (9,661)   -   (319,788)

Total other comprehensive income /(expense)
-     -   -        
9,765
 
12,477
 
22,242

Total comprehensive income /(expense) for the period

-
 
-
 
-
 
(310,127)       
 
104
 
12,477
 
(297,546)
                           

Balance at 30 September 2011

2,492,267
 
28,714,157
 
193,801
 
(5,443,576)
 
382,664
 
91,283
 
26,430,596

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six month period ended 30 September 2010

 

     Share     Trans-  
     Based     lation  
 Share Share Payments Retained Minority Exchange  
 Capital Premium Reserve Loss Interest Reserve Total
 £ £ £ £ £ £ £
Balance at 1 April 2010 2,076,917   27,218,897   233,183   (786,052)   396,093   109,970   29,249,008
Total comprehensive expense                          
Loss for the period -   -    

-
  (1,302,721)   (16,189)   -   (1,318,910)
Total other comprehensive expense -   -   -   -        (17,873)   (22,841)   (40,714)

Total comprehensive expense for the period

-
 
-
 
-
 
(1,302,721)        
 
(34,062)
 
(22,841)
 
(1,359,624)
 

Transactions with owners
                         
Transfer from reserve -   -    

(20,400)
  20,400   -   -   -
Share options granted in year -   -    

16,250
  -   -   -   16,250
                           

Balance at 30 September 2010

2,076,917
 
27,218,897
 
229,033
 
(2,068,373)
 
362,031
 
87,129
 
27,905,634

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY   

Year ended 31 March 2011

 

       Share        Trans-   
       Based        lation   
 Share  Share  Payments  Retained  Minority  Exchange   
 Capital  Premium  Reserve  Loss  Interest  Reserve  Total
 £  £  £  £  £  £  £
Balance at 1 April 2010 2,076,917   27,218,897   233,183   (786,052)   396,093   109,970   29,249,008
Total comprehensive expense                   
Profit/(Loss) for the year -   -    

-
  (4,388,197)   10,854   -   (4,377,343)

Total other comprehensive expense

-
 
-
 
-
 
-        
 
(24,387)
 
(31,164)
 
(55,551)

Total comprehensive expense for the year

-
 
-
 
-
 
(4,388,197)        
 
(13,533)
 
(31,164)
 
(4,432,894)
Transactions with owners

Issue of new shares
415,350   1,495,260   -   -   -   -   1,910,610
Transfer from reserve -   -    

(40,800)
  40,800   -   -   -
Share options granted in year -   -    

1,418
  -   -   -   1,418
                           

Balance at 31 March 2011

2,492,267
 
28,714,157
 
193,801
 
(5,133,449)
 
382,560
 
78,806
 
26,728,142

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

Six month period ended 30 September 2011

 

  Six months period ended

30 September 2011 

(Unaudited)

£
 Six months period ended

30 September 2010 

(Unaudited)

£
 Year ended

31 March 2011 (Audited)

£
             
Net cash outflow from operating activities   (474,326)   (697,653)   (1,454,070)
             
Investing Activities            
Capital expenditure   -   (493)   -
Investment income   9,504   12,100   17,813
Investments   -   -   (124,680)
Loan investments repaid/(advanced)   2,369,101   (1,306,507)   (2,586,390)
             

Net cash flow from investing activities
 
2,378,605
 
(1,294,900)
 
(2,693,257)
             
Financing activities            
Issue of equity share capital   -   -   1,910,610
             

Net cash flow from financing activities
 

 

 
 1,910,610
             
Taxation            
Refund of corporation tax   -   -   197,356


           

(Decrease) / increase in cash and cash equivalents
 
1,904,279
 
(1,992,553)
 
(2,039,361)
             
Cash and cash equivalents brought forward   1,877,242   3,916,603   3,916,603
             

Cash and cash equivalents carried forward
 
3,781,521
 
1,924,050
 
1,877,242

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Six month period ended 30 September 2011

1.   General information

Toledo Mining Corporation Plc is a company incorporated in England and Wales under the Companies Act 1985.  The Company's registered office is First Floor, 10 Dover Street, London, W1S 4LQ. The registration number of the Company is 05055833.

The principal activity of the Group is the investment in and exploration and development of mining projects, specifically in the Philippines.

The Group's principal activity is carried out in US dollars.  The financial statements are presented in pounds sterling as this is the currency of the country (the UK) where the Company is incorporated and its ordinary shares admitted for trading.

The Board of directors has authorised the issue of these interim results on the date of the statement as set out on page 10.

2.   Accounting policies

Basis of accounting

The interim results have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting".

The annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs).

The interim results have been prepared on the historical cost basis except that certain financial instruments are accounted for at fair values.  The same principal accounting policies and methods of computation have been followed in the interim results as compared with the Group's financial statements for the year ended 31 March 2011.

Going Concern

The interim results have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The directors believe that it is appropriate to prepare the financial report on a going concern basis as they are confident that the Company has adequate cash resources for at least the next twelve months.

3. Segmental analysis

The turnover and profit / (loss) are attributable to the principal activities of the Group.

Segmental information on a geographical basis is set out below:

 

 Period ended 30 September  2011
 UK Philippines China Total
 £ £ £ £
Revenue -   -   98,753   98,753
               
Loss for the period excluding associates (475,853)   -   (22,007)   (497,860)
               
Share of associates results -   178,072   -   178,072
               
Total assets 3,848,134   22,452,982   881,672   27,182,788
               
Total liabilities (287,814)   (464,378)   (-)   (752,192)
               
Loan investment net repayments -   1,999,986   -   1,999,986

 

 

 Period ended 30 September  2010
 UK Philippines China Total
 £ £ £ £
Revenue 3,390   -   266,796   270,186
               
Loss for the period excluding associates (745,194)   -   (36,877)   (782,071)
               
Share of associates results -   (536,839)   -   (536,839)
               
Total assets 2,237,558   25,484,188   854,514   28,576,260
               
Total liabilities (198,000)   (442,786)   (29,840)   (670,626)
               
Loan investment additions -   1,149,683   -   1,149,683

 

 Year ended 31 March 2011
 UK Philippines China Total
 £ £ £ £
Revenue 7,299       450,650   457,949
               
Profit/(Loss) for the year excluding associates (3,176,238)   -   24,725   (3,151,513)
               
Share of associates results -   (1,225,830)   -   (1,225,830)
               
Depreciation 612   -     612
               
Total assets 1,045,018   25,471,424   901,868   27,418,310
               
Total liabilities (233,358)   (436,380)   (20,429)   (690,167)
               
Loan investment additions -   1,800,454   -   1,800,454