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

[azalea] 28/11/2009 09:01

There is far too much activity involving various parties and their stakes to believe that corporate action will not take place in 2010. Think about it, Dattel and co, did not put in all their own money just for fun. It's a 'no brainer'.

[brian1944] 27/11/2009 20:47

Rio Tinto said to be eying Rössing South

Written by Administrator
Friday, 27 November 2009 08:21

Rio Tinto, the mining giant that owns Rössing Uranium is reported to be planning to buy out Rössing South uranium deposit, which is reportedly one of the biggest uranium finds in recent years. According to a well-placed source in Australia who is close to both Rio Tinto and Extract Resources, Rio Tinto wants Rössing South so that it can expand its uranium production capacity. The source told the Economist that the only hurdle at the moment was that some of Extract shareholders are demanding more money.
Jerome Mutumba, manager corporate communications and external relations at Rössing Uranium told the Economist this week that Rio Tinto has acquired on behalf of Rössing,

14.7% interest in Extract Resources Ltd, the company which owns the Rössing South deposit, and 14.1% of Kalahari Minerals which owns 40% of Extract Resources.
"Rio Tinto and Rössing see great potential for Rössing South to be developed and operated together with Rössing as this will provide value to both Rössing and Extract Resources.
Rössing South is only seven kilometres from the Rössing pit, and the mines could share significant infrastructure. Hence we see potential for Rössing South and Rössing working together on a joint development as this will provide value to both Rössing and Extract Resources.
A significant investment will be required dependent upon the nature of the joint development," Mutumba said.
He said Rössing Uranium remain interested in discussing with the board of Extract how it might maximise value for all shareholders in both Extract and our Rössing mine.
"Rössing produces 8% of global primary uranium production and is already a world class
mine. Rössing South has the potential to be a similar scale," Mutumba said.

[jonny flame] 27/11/2009 16:58

I sold most of my holding at 5p, bought in again this afternoon and will now look to build my stake back up again.

[soundbuy] 27/11/2009 14:03

One share i am reluctant to add to. Have done so from initial investment @3.1p, through to 5.2p. Increased vol. held massively from 4.6p .upwards. Now discounts to NAV all very well but many shares share same fate.

However, 4.15p does look extremely tempting, what with CDN (still hopeful), directors' latest purchases at 5p, oh and EXT holding, well just may have one last nibble but are we truely near the bottom..

[orado] 27/11/2009 14:01

Just bought some, naturally showing as a sell.

[death by donut] 27/11/2009 13:26

Just a few more to my sipp.

DbD

[barryrog] 27/11/2009 12:34

who knows if this has bottomed out yet but what is known is that it is now quantifiably undervalued by a significant amount regardless of takeover speculation.
i've been adding today at 4.08p - now my biggest holding.

ps - both of the 2 buys i've made have yet to appear.

[fordtin] 27/11/2009 12:01

LOL, slight understatement.

"Rössing South has the potential to be a similar scale," Mutumba said



Preliminary studies have shown Rössing South's first two zones to be capable of producing nearly three times as much as current production from Rio's pit. Recent discoveries have a very good chance of increasing Extract's production potential to a multiple of five to eight times Rio's output imo.

[azalea] 27/11/2009 11:57

PRL's two pronged approach to energy resources - coal and uranium is very sound. We know that globally there is a vast expansion in building of nuclear plants and many more on the drawing boards. China continues to build coal fired plants until N.plants can meet its energy demands, an objective that could take 20 years or more.

[wolstencroft] 27/11/2009 11:55

wassaper: Sorry it is mentioned, I somehow missed it. I must try harder!

"This means that in six months time, Polo's assets could be predominantly cash plus its JV with Peabody. Polo's BVI status means that it is tax efficient should bids be received, so assuming a speculative A$15 per share bid for Extract and an 80p per share bid for Caledon, this could give Polo £290m in cash and in-the-money options plus the JV with Peabody. This generates a prospective NAV of 10.58p per share"

[gero67] 27/11/2009 11:46

Rio Tinto said to be eying Rössing South

Written by Administrator
Friday, 27 November 2009 08:21

Rio Tinto, the mining giant that owns Rössing Uranium is reported to be planning to buy out Rössing South uranium deposit, which is reportedly one of the biggest uranium finds in recent years. According to a well-placed source in Australia who is close to both Rio Tinto and Extract Resources, Rio Tinto wants Rössing South so that it can expand its uranium production capacity. The source told the Economist that the only hurdle at the moment was that some of Extract shareholders are demanding more money.
Jerome Mutumba, manager corporate communications and external relations at Rössing Uranium told the Economist this week that Rio Tinto has acquired on behalf of Rössing,

14.7% interest in Extract Resources Ltd, the company which owns the Rössing South deposit, and 14.1% of Kalahari Minerals which owns 40% of Extract Resources.
"Rio Tinto and Rössing see great potential for Rössing South to be developed and operated together with Rössing as this will provide value to both Rössing and Extract Resources.
Rössing South is only seven kilometres from the Rössing pit, and the mines could share significant infrastructure. Hence we see potential for Rössing South and Rössing working together on a joint development as this will provide value to both Rössing and Extract Resources.
A significant investment will be required dependent upon the nature of the joint development," Mutumba said.
He said Rössing Uranium remain interested in discussing with the board of Extract how it might maximise value for all shareholders in both Extract and our Rössing mine.
"Rössing produces 8% of global primary uranium production and is already a world class
mine. Rössing South has the potential to be a similar scale," Mutumba said.

[wassapper] 27/11/2009 11:45

it is mentioned specifically in the report wolstencroft. Best wishes to you

[wolstencroft] 27/11/2009 11:38

ok, thanks.

[steeplejack] 27/11/2009 11:36

I think you might find that being registered in the British Virgin Islands might help

Too slow ,sorry.

Anyway,moving on.This drip ,drip selling looks like some broker has got hold of a portfolio and is simply liquidating stock.As mentioned above ,a number of AIM mining stocks have been weak of late and i wonder whether PRL is just one of a number of stocks being sold.At the beginning of the year,the market saw a lot of this type of indiscriminate selling as brokers hacked portfolios to meet redemptions.Maybe redemptions in the current market environment might be wide of the mark,perhaps it's just portfolio reshuffling but i don't think there is any specific reason for this price fall.It lacks finesse.

[fordtin] 27/11/2009 11:30

wolstencroft,

edit-

In the British Virgin Islands there is no capital gains or capital transfer tax, no inheritance tax, and no sales tax or VAT. There are stamp duties on certain transactions, and property taxes.

[wolstencroft] 27/11/2009 11:24

that hanson note seems to take no note of tax payable on gains if the assets are sold. Surely they would be taxed at 30%?

[gurp] 27/11/2009 10:49

.....looks prettier upside down

[humbugg] 27/11/2009 08:47

what an ugly chart.

[haff1] 27/11/2009 08:42

...so on that interesting news the share price falls further!!

[verulamium] 27/11/2009 00:37

From today's Times:

Tiddler to watch

Polo Resources fell ¼p to 41½p but is said to be worth watching. Extract Resources, which is Polo's largest holding, representing nearly 50 per cent of NAV, has requested proposals from all interested parties in its Rossing South uranium project. HansonWesthouse says this could result in an offer for Polo's stake in Extract.

[eeza] 27/11/2009 00:14

There are a lot still nursing large losses from the placing in June 2008 @ 13p, and with 2.5 billion shares in issue there will always be plenty of sellers. This has been under the cosh for over 12 months now and still no end in sight.

[bell011] 26/11/2009 22:24

luxor, millenium, tpg- axon have all reported below 3% in the not too distant past. could get hammered a bit further yet, the frustration of a seller never seems to cease in this stock.
will soon have to add yet again; as said the value gap and margin of safety continues to grow.

[barryrog] 26/11/2009 22:14

AIM shares have been taking a bit of a hammering with most being marked down on small volumes.
i'm not getting 'spooked' by the retrace, i've added at 4.2p and the share price is now some 2.8p per share below the value of the assets.
just a reminder of the broker's note issued only 2 days ago.

[livic1971] 26/11/2009 18:41

There was a lot of sell volume the day of the directors buys at 5p. I think they knew there was a big seller and tried to prop it up somewhat by buying some. It may be that these are hanging around.

Equally it could just be the weakness in EXT and lack of progress with CDN.

[rastapastamasta] 26/11/2009 17:37

Thanks laser for the interesting report.
Most controversial statement was expecting EXT to sell for $12-$15. Size of resource plus ease of extraction suggest a higher take out price, but maybe the lack of bidders for out-right ownership explains such a cautious estimate. In the event of such a low offer I am sure the Dattels group of companies would block any TO.
rpm