Polo Res.(See LSE:POL) Share Discussion Threads

[kaos3] 19/3/2010 07:02

maybe he wants to get canadian curreny for M&A on their territory. Coal is where his heart is.

[steeplejack] 19/3/2010 06:58

Hello!Extract up a short 15% in Aus. last night.

[buck581] 18/3/2010 20:03

If he wants a listing in Canada there must be a long term game plan ?

[katylied] 18/3/2010 19:55

And Dattels may have a 'cunning plan'...

[barryrog] 18/3/2010 18:23

In simple terms if the Co. decided to wind up tomorrow and sell all its assets they would be repaying each shareholder around 8p/8.5p per share.

[barryrog] 18/3/2010 18:23

that of course won't happen but they look to be close to selling their stake in Extract Resources which would probably bring in cash to the value of 5p on its own.

[bryet] 18/3/2010 16:09

Why is this undervalued Johnma?.

[marben100] 18/3/2010 15:53

"Nevertheless, PRL does look a little like a resources investment trust."

Yup, it certainly does and I think that's how a large part of the market perceives it. It's even classified in the "financial services" sector and not mining!

Concerning the "PR machine", I suspect that Dattels has his reasons for keeping a relatively low profile right now. I also suspect that that will change when he and the rest of the Board want it to. Something we have to live with as shareholders in the company.

Cheers,

Mark

[nil pd] 18/3/2010 14:31

Not now! I'm referring to when it WAS. Some time around Genesis, I think...

[katylied] 18/3/2010 14:16

lol! I am struggling to imagine Torotrak as ever a 'Wow! standard'... :o)

[nil pd] 18/3/2010 14:11

marben, I agree with your sentiments - and with yours steeplejack and probably most on this thread. Nevertheless, PRL does look a little like a resources investment trust.

In the past I used to invest profits in ITs and one in particular did extremely well for me - GPE, which is a way in to private equity for the small PIs. GPE acquired unlisted assets as small concerns having massive potential. When they sold them after carefully managing the businesses to Wow! standard the share price responded accordingly. Torotrak was the best example.

Now I don't for one minute classify PRL as an IT but I do believe we can expect a significant gap up in the share price once a deal is announced regarding the EXT stake (in my opinion). This will accrue in a similar way as it did for GPE when they sold significant assets because the valuation will be 'real' and will have to be PROPERLY added to the share price

While we wait and while the deal-making is going on, a little lubrication of the publicity machinery wouldn't do any harm. I would have thought, provided that specific areas of a potential deal were not visited, PRL's PR company could easily arrange for broker notes that highlight its undervaluation. Or am I being dim here? I don't think so - I have marketing experience too long to mention and I think the company is missing a trick.

[marben100] 18/3/2010 12:40

The problem is that no-one knows for sure what Dattels is going to do and whether it will benefit shareholders. Markets hate uncertainty.

Once it becomes clear what the plan is, and assuming that the market likes it, Mr Market might take a different view.

I believe that a long and deep game is being played and I'm prepared to stick with it, as long as the undervaluation persists. I suspect that the ambition is to do more than run an investment trust.

Cheers,

Mark

[steeplejack] 18/3/2010 11:15

And with GCM marching up today,the discount widens.It's a total enigma.Investment trusts sometimes linger on a discount to assets of approaching 30% but only in a bear market.This is a natural resource bull market!!Anyway,somewhere over the rainbow,skies are blue...

[johnma] 17/3/2010 16:55

This stock is hugely under valued based on NAV.

[roger the dodger2] 17/3/2010 16:45

Mark, fair comment, probably the wrong choice of words.:-)

[nil pd] 17/3/2010 16:04

..and CDN is +2.1% too. CDN's chart is saying 'up'.

[marben100] 17/3/2010 15:38

"and a nice little rerating"

Without wishing to be a smartass, it's not actually a rerating for Polo. If anything, Polo's even cheaper than it was, standing now at a 40% discount to its assets (excluding Mongolia - so that's in for free).

Extract, constituting nearly 60% of Polo's tangible assets and with an asset value only slightly below Polo's entire market cap, rose more than 5% last night, whereas Polo is only up 1.7% today.

I remain confident that patience will be rewarded in due course.

Cheers,

Mark

[roger the dodger2] 17/3/2010 14:25

Agreed, and a nice little rerating, :-)

[barryrog] 17/3/2010 14:06

It looks like Phulbari is a given for GCM as the discussions are now covering the detail of the project and its implementation.
however i believe the sale of the Extract holding will be the next big thing for PRL and with maybe upwards of £125 mill in the bank it will open up a whole host of options for Dattels and crew.

[katylied] 17/3/2010 13:19

Those 'unpalatable/communities' being largely not the peoples most directly affected. For the poor local dirt farmers, GCM's project is the opportunity of a lifetime. New homes, schools and other modern infrastructure, plus new employment prospects (as the region is transformed) previously only the stuff of dreams...

[azalea] 17/3/2010 09:23

It's possible that the government of Bangladesh is beginning to grasp the serious consquences for its economy if the chronic shortage of electricity supplies continues and that there is a medium term solution, albeit not palatable to some communities.

[nil pd] 17/3/2010 08:42

PRL interims due around end-March (I believe?)

[nil pd] 17/3/2010 08:40

The market seemed to like the GCM interims today:

Interim Results for the six months ended 31 December 2009
· The Bangladesh Government has consulted widely during the last nine
months, and a consensus has developed within both the Government and the country
as a whole that coal resources have a key role to play in meeting the country's
energy needs and that open cut mining is an appropriate method for their
extraction. GCM has facilitated Ministerial visits to a coal mine in Cologne,
Germany, to demonstrate that the environmental and social impacts of modern-day
coal mining can be effectively minimised and managed.

· The Bangladesh Government is actively encouraging the development of a
coal based power sector. The State owned Power Development Board has recently
formed a joint venture for the development of coal fired power stations in
Bangladesh.

· GCM continues to work with the Government of Bangladesh and other
stakeholders and remains ready to move the Phulbari Project forward when the
Government approves the Scheme of Development. Discussions with the Government,
which are now covering the detail of the Project and its implementation, are
progressing well.

· The Group made a loss of GBP350,000 after tax for the six months ended 31
December 2009 (31 December 2008: GBP5,249,000). During the period GCM disposed
of its investment in Regent Pacific Group for proceeds of GBP1,217,000 resulting
in an accounting profit of GBP297,000 before tax. The loss for the comparative
period includes an impairment charge of GBP5,182,000 before tax, predominantly
in relation to the investment in Regent Pacific Group which has since been sold.

· As at 15 March 2010 GCM has GBP30.8 million in cash and listed equity
investments, equivalent to 60p per share.

[nil pd] 17/3/2010 08:16

Strong performance of ASX:EXT last night.

[gero67] 17/3/2010 03:22

Australian Financial Review 17/03/2010

Page 20 Street Talk


Extract keeps suitors in suspense

Uranium hopeful Extract Resources is nudging closer to the completion of its strategic review, with the outcome of the process, run by Rothschild, expected within the next month.

Extract owns the Rossing South deposit –considered one of the worlds most promising uranium projects –adjacent to Rio Tinto's Rossing mine in Namibia (Rio owns 16% of Extract).

As part of the review process, Extract has been talking to miners and uranium buyers about deals ranging from a stake in the project and a offtake agreement to a full takeover.

It had launched the project after receiving unsolicited expressions from several parties and the expectation is that the best proposals - of varying sorts –will be put forward soon to allow it to make a decision.

Interestingly, the parties involved are believed to have signed standstill agreements, which presumably would expire, once Extract chose its path, paving the way for a takeover later if another deal is done at this stage.

At the moment, some think the most likely outcome is that a utility will take about a 15% stake to help develop the project. As Uranium One noted this week, with a $1.8 billion market value and no operating mine yet, Extract isn't a cheap proposition.

Extract has delayed the issue of an updated resource statement until the third quarter but there are suggestions it could a figure of up to 400 million tonnes of ore at a time.