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

[soundbuy] 21/10/2009 15:16

Question

would directors be able to buy if they held information that could influence future price ie. takeover at CDN?

[21simthy] 21/10/2009 14:49

I think it's love !

The topinfo and 5pongebob show on the CR thread :-))

Even when exposed he still carries on !

[fordtin] 21/10/2009 14:40

Polo Resources (AIM:PRL) was notified on 20 October 2009 that Stephen
R. Dattels, Executive Chairman of the Company, purchased on the same day
2,000,000 Ordinary Shares of the Company at a price of 5 pence per share.
Polo was further notified on 21 October 2009 that Mr. Dattels purchased on the
same day 3,000,000 Ordinary Shares of the Company at a price of 5 pence per
share.
Following the purchases, Mr. Dattels is interested in a total of 111,676,007
Ordinary Shares, representing approximately 4.76 per cent of the issued ordinary
share capital of the Company.





Polo Resources (AIM:PRL) was notified on 20 October 2009 that Neil Herbert,
Managing Director of the Company, purchased on the same day 1,400,000 Ordinary
Shares of the Company at a price of 5 pence per share.
Following the purchase, Mr. Herbert is interested in a total of
53,132,954 Ordinary Shares, representing approximately 2.26 per cent of the
issued ordinary share capital of the Company.






Polo Resources (AIM:PRL) was notified on 20 October 2009 that Guy Elliott,
Senior Non-Executive Director of the Company, purchased on the same day
3,026,532 Ordinary Shares of the Company at a price of 5 pence per share.
Following the purchase, Mr. Elliott is interested in a total of
31,199,999 Ordinary Shares, representing approximately 1.33 per cent of the
issued ordinary share capital of the Company.

[robson1974] 21/10/2009 11:12

look at that chart, just look at that chart

something big about to happen at some point in the future

[barryrog] 21/10/2009 10:21

in case anyone hasn't noticed, the impatient pi sells are being picked up by a big buyer(s). he/they bought 14 mill yesterday in 1 mill lots and another 4 mill today.

[grimbo] 21/10/2009 08:29

Same argument used to be made about real estate - it was all going to increase over a short period of time. Still traded at a discount (and rightly so). Will the money be returned to investors? How much tax has to paid? Will it be reinvested in he next big thing whilst keeping the directors in the lifestyle they have become accustomed to? All these sorts of considerations keep investment companies below nav no matter what the market. There have been a few exceptions to this rule for short periods - but I can't think of a case where it ultimately ended up well for investors.

I hold Polo. I like the spread of assets they hold. But I'm not expecting some rise to NAV.

[barryrog] 21/10/2009 07:42

eeza,
that isn't true any more - a lot have been trading at a premium to NAV over the past year and their share prices have fallen.
however thats not really an 'apples to apples' comparison to PRL because most investment Cos. are in real estate, insurance or out and out investment trusts.
the fundamental difference is that PRL (and one or two other cos. like XTR for example) have assets that could and probably will increase significantly over a short period of time because of the nature and type of the investments they have made.

[brian1944] 20/10/2009 16:21

t/o 27mill so far ???

[eeza] 20/10/2009 14:17

Most investment/holding Co's trade at a discount to NAV.

[kemorkid] 20/10/2009 12:28

I think 5p is a very strong resistance to break.
Fordtin-I think NAV means sweet shag allin the run of things -alot of stock trade at many times (up or down) to there NAV-more buyers price rises more sellers price drops simple as that but what do I know!!

[fordtin] 20/10/2009 08:58

Re Canaccord Adams' valuation,

it's comforting to see that their figures are very consistent with my own spreadsheet. However, whilst updating my sheet with the latest information it occurred to me that when the warrants and options are exercised, a portion of the cash raised will be 'buying' a part of my EXT exposure from me. I have therefore added another column to calculate the value of each investment including a proportion of the warrant/option money equivalent to the market value of that investment, divided by the total tangible asset value including the monies which would be raised if all 'in the money' options & warrants were exercised.

This results in the following values for EXT per PRL share :-

　

Undiluted = 5.208p

All in the money options exercised = 4.24p

All in the money options exercised including a proportion of the cash raised = 4.741p

I hope this makes sense. If anyone thinks this method is incorrect, can you please explain where you think I'm going wrong as this is an aspect I hadn't considered before. It doesn't make such a huge difference with the other assets, but as the EXT shares currently have a market value greater than PRL's market cap it's quite significant and would certainly have to be a major consideration for anyone exercising warrants .



edit

re "Valuation
· The company's current NAV is 8.02p per fully diluted, in-the-money share.
· At a price of 5.0p/share, it is currently trading at a discount of 38% to its NAV. "

Using current forex my sheet is showing :-

undiluted = 8.87p and at 5p = 43.64% discount
fully diluted = 8.076p and at 5p = 38.09% discount

[robson1974] 19/10/2009 23:10

Canaccord Adams on Polo Resources*

Canaccord Adams maintained its "buy" recommendation on Polo Resources* (PRL) following the company's final results. The broker's note read:

Our view

· We consider that the statement was in line with expectations.
· Although the company reported a large loss, the company is effectively an investment company and therefore its working capital position and the value of its investments are considered to be of the most significance.

Key features

· Polo released results for the year to June 09, on Friday 16 October, after the close of the market.
· The company reported a loss of US$63 million, or 3.2p/share, after a writedown of US$44 million on its Mongolian coal assets.
· Working capital at 14 October 2009 was reported to be US$17 million and the value of its listed investments US$302 million.
· The statement indicates that the company has continued to build its stake in Extract Resources (EXT : ASX | not rated), which now stands at 22.4 million shares, the value of which is equivalent to 4.3p/share, accounting for 53% of the company's NAV or 86% of its share price.
· The company states that it intends 'to make further strategic value-adding investments in advanced staged commodity projects...'.

Valuation
· The company's current NAV is 8.02p per fully diluted, in-the-money share.
· At a price of 5.0p/share, it is currently trading at a discount of 38% to its NAV.

[barryrog] 19/10/2009 22:23

hardly a fall mate.
there was absolutely no surprises in the results whatsoever, the guys here were all very aware of the NAV.
i was pleased with the impairment charge in so far as writing down the value of the Mongolian assets to the value of the JV now guarantees that no assets can be seen to over stated on the Balance Sheet - however those assets in terms of earnings potential are now well undervalued.
you buy shares on the basis of upside potential v downside risk and i think the mgt outlook which i summarised in my previous post allied to Dattels closing comment " I look forward to an exciting year ahead for the Company and it's shareholders" is very positive for the future.

[baldbobby] 19/10/2009 21:52

I take the blame for the share price fall, whenever i buy there is a retrace but then a strong recovery?? BB

[barryrog] 19/10/2009 15:38

the results re-confirmed the significant discount of the current share price to the realisable value of the assets.
"I believe that Polo Resources has the potential to deliver substantial near term production returns" - this points to assets becoming earnings enhancing in the near future.
"Our intention is to make further strategic value adding investments in advanced stage commodity projects - this points to an early acquisition(s).
" and in doing so ,to establish the Company as a significant presence in the sector" - this suggests they see themselves as a far bigger Co. than the current £100 mill capitalisation.
don't be fooled by the streaming screens, i added another 50k @ 4.91p a short while ago.

[tadska] 19/10/2009 14:45

Sorry to hear about your losses Boss.I hope everythink will be good with PRL.I am also holding all my shares here,but my patience is running out.Ehh, will wait some time.
Regards

[5magic] 19/10/2009 11:05

wonder if polo (now that they have got this ind. committee to monitor things) might get cdn to get a move on and give bidders an ultimatum so they can get back to concentrating on their business (since a bid looks unlikely)

gero/brian

i said last week those articles should be taken with a pinch of salt, even if true, and todays trading reaffirms that imo. Dont know why it got some excited

[bossmanuk] 18/10/2009 23:46

"tadska - 16 Oct'09 - 21:32 - 5467 of 5476


Bossman are you still here or have you sold out?"


Tadska,


I'm still here, still got all my holdings at present. Waiting to regain more of last years losses before cashing out.

Not doing too bad at this level, but the story is still unfolding so will continue to play the waiting game not in any hurry.

Regards,

BossmanUK

[robson1974] 18/10/2009 23:41

EYES ON EXTRACT

In light of the high quality of Extract Resources's Rossing South uranium project in Namibia - adjoining Rio Tinto's Rossing mine - there is obviously plenty of corporate interest in the $2.4 billion company.

However, Extract has made clear that while it is interested in strategic partnerships to help develop the $US704 million ($768 million) mine, which could produce 6800 tonnes of uranium a year, it is not looking to be taken over.

Extract has a very concentrated register. Kalahari Minerals of London, now in effect a holding company, owns a 40.9 per cent stake, Rio Tinto owns 15.1 per cent and Polo Resources of London owns 10 per cent.

There are suggestions that as part of the search for a strategic partner, led by Rothschild, the parties that have signed confidentiality agreements have also agreed to standstill arrangements preventing them from buying Extract shares.

Rio is believed to be among those interested in a partnership, because there are obvious cost savings available due to the proximity of Rossing South to the Rossing operation. The Rossing South ore has a higher grade than the material Rio is processing.

Extract will have plenty of uranium to sell once Rossing South enters production in 2013, so its primary concern in a joint venture is being able to place the material with customers rather than raising the funding for construction.

In recent months the uranium miners Uranium One and Denison Mines have partnered with a Japanese consortium and Korea Electric Power respectively for funding and offtake partnerships.

Extract's potential product is already said to have attracted interest from uranium buyers in China, India, South Korea and Japan, so miners may not be the only ones taking part in the search for a partner. Extract is targeting a resource of at least 227,000 tonnes, which would make it the second-largest uranium deposit in the world behind BHP Billiton's Olympic Dam.

[robson1974] 18/10/2009 23:41

EYES ON EXTRACT

In light of the high quality of Extract Resources's Rossing South uranium project in Namibia - adjoining Rio Tinto's Rossing mine - there is obviously plenty of corporate interest in the $2.4 billion company.

However, Extract has made clear that while it is interested in strategic partnerships to help develop the $US704 million ($768 million) mine, which could produce 6800 tonnes of uranium a year, it is not looking to be taken over.

Extract has a very concentrated register. Kalahari Minerals of London, now in effect a holding company, owns a 40.9 per cent stake, Rio Tinto owns 15.1 per cent and Polo Resources of London owns 10 per cent.

There are suggestions that as part of the search for a strategic partner, led by Rothschild, the parties that have signed confidentiality agreements have also agreed to standstill arrangements preventing them from buying Extract shares.

Rio is believed to be among those interested in a partnership, because there are obvious cost savings available due to the proximity of Rossing South to the Rossing operation. The Rossing South ore has a higher grade than the material Rio is processing.

Extract will have plenty of uranium to sell once Rossing South enters production in 2013, so its primary concern in a joint venture is being able to place the material with customers rather than raising the funding for construction.

In recent months the uranium miners Uranium One and Denison Mines have partnered with a Japanese consortium and Korea Electric Power respectively for funding and offtake partnerships.

Extract's potential product is already said to have attracted interest from uranium buyers in China, India, South Korea and Japan, so miners may not be the only ones taking part in the search for a partner. Extract is targeting a resource of at least 227,000 tonnes, which would make it the second-largest uranium deposit in the world behind BHP Billiton's Olympic Dam.

[gero67] 18/10/2009 15:17

INSIDER
October 18, 2009
By Jamie Freed



CALEDON FOCUS

"It seems that the interests of Essar Group of India in the Australian coal sector extend beyond its recent $US150 million bid for Rocklands Richfield, which trumped a rival offer from Jindal Steel & Power of India.

Essar operatives were spotted by astute observers at Emerald airport in the Bowen Basin after their Gulfstream jet broke down. The Essar executives are said to have been visiting projects owned by Caledon Resources.

Caledon, which has a market value of $33 million, in February appointed RBC Capital Markets to conduct a strategic review after it had received an initial non-binding takeover bid from an unnamed party.

In an update last month, Caledon said it had recently opened its data room to more parties than had been allowed in initially due to increased interest in coking coal assets.

Caledon owns the small Cook mine, which produces 400,000 tonnes a year and has 406 million tonnes of resources, and the Minyango project, which has 342 million tonnes of resources."

[e-mail]

Source: The Sydney Morning Herald

[brian1944] 18/10/2009 14:00

MARTIN COLLINS: John Durie | October 17, 2009

Article from: The Australian



"Then there was the team of senior executives from Indian conglomerate Essar whose private jet broke down at Emerald airport in central Queensland, allowing all to see they were in town.

The mission was some due diligence on coal miner Caledon Resources, which is under review from its parent company in a strategic review from Royal Bank of Canada.

The quiet mine visit turned into the talk of the town."

[marben100] 17/10/2009 13:54

Hi VT,

"The downside to nuclear is the radiactive disposal problems."

IMO this is a problem that is grossly overstated by the anti-nuclear lobby. I acknowledge that it is an issue and that it needs careful handling but...

According to this:

"The conditioned waste volume with negligible heat generation amounted to approx. 115,050 m³ at the end of 2006. The volume of heat producing waste amounted to 1,855 m³. According to a current prediction the waste package volume to be expected by the year 2030 is estimated to be approx. 264,000 m³."

Not sure whether this just for Europe or global, nevertheless of 254,000 m³ is about a supertanker full of intermediate and high-level waste. That's for ALL nuclear waste produced up to 2030. Once made immobile, the containers could simply be put down a disused deep mine and encased in concrete. Problem solved.

The main problem seems to be one of NIMBYism - no one wants it anywhere near them! Bit shocked to find significant opposition in Aus to plans to put it down mines in the middle of the desert there. Hard to think of a better place, hundreds of miles away from any population.

Cheers,

Mark