Toledo Mining confirms latest shipment of nickel ready to depart
Toledo Mining (LON:TMC) today confirmed that a last shipment this year of 55,000 wmt (wet metric tones) of 1.8 per cent nickel grade material from the Berong mine is loaded and ready to depart for China.
Including this latest load, total high grade shipments from Berong since the mine recommenced operations in May now total 195,000 wmt and the total shipped tonnage of both newly mined and stockpiled ore exceeds 315,000 wmt.
The shipments should generate revenue of US$13.8 million the company said alongside its interim results yesterday.
No more shipments are expected until March, but Toledo has a current stockpile of 247,000 wmt of approximately 1.8 per cent high grade ore already mined in preparation for 2012 shipping window, which equates to potential revenue in excess of US$10 million.
The Philippines-based mine, where Toledo has a 56.1 per cent economic interest, ramped up to full production capacity in June and to date total 442,000 wet metric tonnes of ore grading at 1.83 per cent nickel have been produced.
House broker Ambrian yesterday put a 44p price target on Toledo shares, saying it remained comfortable that the Berong mine will be a straightforward and profitable operation.
Toledo chairman Reg Eccles added: "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."
Shares rose by 3 per cent to 24.95p.
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