Stocks to Double in 2006 - we name them

I'm doing a bit of housekeeping on the 2double site. There is no a button to check that a symbol doesn't already have a prediction associated with it. However, Elric posted a duplicate prediction for TMC before that was working. I am therefore converting his submission into a vote for the existing submission (by Unionhall) and the following is Elric's reasoning for his submission of TMC (which is detailed and actually more detailed that Unionhall's):

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Toledo Mining Corporation (formerly Toledo Copper Corporation) floated on AIM
in April 2004. After dumping its sole asset, Carmen copper mine to focus efforts on its 3 nickel mines, it changed its name. Primary focusing fast tracking its Berong nickel site in to production, thus near term cashflow. The strategy then, is to utilise the cashflow to fund the feasibility of a larger, on site operation to fully exploit the 275mt at Berong and current 77mt at Celestial.

The 3 nickel laterite mine projects on the island of Palawan in the Philippines, have a contained nickel content estimated at 4.6 million tonnes, with significant potential upside. These being Berong, Celestial, and Ulugan, where TMC is well positioned to exploit low cost direct shipping of laterite ore and possible smelting operations.

Berong Nickel Laterite (ownership 58%)

Berong comprises four nickel laterite deposits (Berong, Moorsom, Long Point and
Tagkawayan) which together cover an aggregate area of 10,659 hectares. The
Berong Project has a combined indicated resource of 275 million tonnes at 1.3%
Nickel and 0.074% Cobalt at 0.9% Nickel cutoff, making it one of the largest
unexploited nickel laterite deposits in the world. This estimate is based on 2,069 test pits at 300m spacing. Berong is technically a low risk saprolite resource. At a rate of 300ktpa the initial mineable saprolite resource with direct access to shipping operation for 7 years which, with low mining costs of US$1.30/lb can provide TMC with a positive cash flow of over US$6m at US$7/lb.

TMC already has an agreement with Japanese, Nippon Metals and Alloy Inc to supply 350,000 tonnes pa for 5 years for direct shipping ore at 2.3% Ni FOB Philippines.The base price of the ore shall be FOB on a dry basis and be equivalent to 23% of the quoted price of nickel, (currently $6/lb) on the London Metals Exchange market. The NMA contracts has the potential for an additional 300,000 tonnes pa and a 500,000 ton pa limonite contract with an Australian company. Should these come to pass the annual cashflow to TMC is estimated at £12.8M. The existing agreement will generate significant cashflow in 2006. Mining operations at the site are scheduled for Q1 2006. The beauty of Berong deposits have the major advantage of containing laterite ore of a grade that is suitable for direct shipping, allowing the possibility of an early and low-cost start to mining operations, and the generation of significant early cash flow.


TMC has also been granted one of the key approvals needed ahead of development
work on its planned Berong nickel mine. TMC has an economic interest of 58% in this project, with Investika Ltd. having an 18.7% stake, and ACMDC with 25.2%. Oh, there's the small matter of world-class resource of 275 million tonnes at 1.3% Ni.-equivalent to an estimated total nickel content of more than 4.6 million tonnes. The deposits offer the potential to recover both limonite and saprolite ore. Berong has attracted interest from several parties having expressed in a joint venture. The next step is for TMC to obtain an Environmental Compliance Certificate and Mineral Production Sharing Agreement (MPSA). Executive Chairman Chris Kyriakou is confident this will be obtained within weeks.

Celestial Nickel Laterite (ownership 52%)

The Celestial Nickel Project is a joint venture between TMC (initially 52%, with a right to increase up to 71.2%), Celestial Nickel Mining Exploration Corporation (initially 24%) and Brookes Nickel Ventures Inc. (initially 24%). The project, consisting of a granted Mineral Production Sharing Agreement ("MPSA") covering 2,835 hectares,has been assessed by earlier investigators to have indicated resources of 77 million tonnes at 1.25% Nickel and 0.1% Cobalt, making it comparable in nickel grade with Berong. This estimate covers an 800-hectare portion of the property, containing 408 test pits spaced 100 metres apart, and testing less than a third of the granted MPSA property area. TMC already has substantial permitting already in place.

Previous work established a series of 19 diamond holes to demonstrate ore
thickness of up to 40m, the shallow end of the 15m depth touched on saprolite
horizon where there is a higher grade direct shipping ore. 8 holes intersecting the higher grade saprolite. There is potential to significantly increase the size and the quality of the resource with in-fill drilling and a commitment of US$2m to exploration. The drill holes have an average grade of 1.41% Ni (compared to the estimated resource of 1.25% Ni) over an average thickness of 13.3m. The average overburden is only 1.9m.

The diamond drilling results show six of the eighteen holes contain direct shipping grade material and an average 4.7m at 2.17% Ni and 11.81% Fe and on a pro-rata intercept basis, this indicates a direct shipping potential of eight to nine million tonnes. Further exploration is required to verify this.

Previous operators have already performed metallurgical tests on an atmospheric
vat leach with modest success, achieving a recovery of about 65%. The Company
believes that this method has potential, and is also monitoring the progress of Coral Bay’s HPAL plant just 100km down the road. Simons Engineering carried out a prefeasibility study based on pressure acid leach and production of 40,000 tonnes of nickel metal, 3,130 tonnes of cobalt and 288,000 tonnes of ammonia sulphate was predicated per annum at an operating cost of US$1.38/lb before cobalt credits. Definition of this feasibility programme has now commenced at an estimated cost of over US$10 million. It will include diamond drilling to define the overall resource more accurately and identify metallurgical sample requirements for acid leach and smelting testwork for scoping studies.

Ulugan

The newest expansion of the ACMDC-TMC Joint Venture is the Ulugan Nickel
Project, which materialized from the exchange of TMC's earlier investment in the
Carmen Copper Mine of ACMDC, and a commitment by TMC to an exploration
expenditure of $1m over three years. TMC has a 58% economic interest in the
Ulugan property with the balance in favour of ACMDC and Multicrest Mining
Corporation (Multicrest).

This project consists of an ACMDC Exploration Permit Application over 970 hectares, an ACMDC Mineral Production Sharing Agreement application over 810 hectares, and a 16,200 hectare Exploration Permit Application by Multicrest, located to the north of the Berong Nickel Project area, on the central west coast of Palawan.

Warts and all

The Philippines has endured a turbulent political problems of late. However, there are positive signs which should see mining companies knocking on the door again. Minds within the administration view foreign companies as the answer to socio-economic woes which plague the Philippines.

The 1 for 50 share consolidation earlier this year has made TMC more attractive for institutions. Rab Capital are one of the larger shareholders.
We have also noted a shift in broker attention in the Philippines. No doubt this has been a result in clarity of ownership of assets. Foreign companies need to obtain a “MPSA” (Mineral Production Sharing Agreement), in which the rights and 60% of the capital had to be held by a Philippine company. The 1995 Mining Act was change via the courts in December 2004. The amended Act allowed 100% cent foreign ownership, removing uncertainty and previous barriers to foreign investment.

The Philippines has been exporting nickel ore for many years, and is well located to supply major world markets. Two thirds of global nickel production is used in the manufacture of stainless steel, demand for which continues to grow sharply, with the huge Chinese market now accounting for much of the growth.

London stockbroker have always held a fascination for mining stocks, thus takes a very positive attitude to the mining sector. Like any mining play, investors need to keep an eye on the supporting commodities as these play an important part in mining companies. Rising Nickel prices, a strengthening US$ both help TMC. Unfortunately, US$ shows