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

[azalea] 17/2/2010 16:32

Given the significant stability at the 3.90/3.95p level, with the odds in favour of the share price going up, I am totally puzzled by sellers around the 3.9p mark.

[steeplejack] 17/2/2010 15:00

I missed that gurp,thanks.The pot is bubbling.Dividend or trade sale ,can't be bad for Polo holders either way given the share price's discount to asset value.

[gurp] 17/2/2010 14:26

URU action re its KAH shares

[steeplejack] 17/2/2010 12:40

I'm sure they'll make a mint out of Extract but will this occur during my lifetime
zzzz zzzzz zzzz


PS Kalahari mining up 6.2%,Polo unchanged.Not exactly in the fast lane this one.

[azalea] 17/2/2010 11:42

barryrog
No less than what I have been saying since BMO was appointed.

[barryrog] 17/2/2010 10:24

watch this space.
as far as the Financial Press are concerned, the involvement of BMO Capital Markets in the strategic review of their Extract Resouces share holding is a 'for sale' sign to the highest bidder.

[azalea] 17/2/2010 07:31

The window of opportunity for the big boys to secure uranium resources is closing fast. It is virtually inconceivable that PRL will not make a very handsome profit from its stake in Extract.

[gurp] 16/2/2010 20:51

KL - maybe - but note 'but the next few years will be v' !!

at least a little movement here today - upwards

[azalea] 16/2/2010 17:14

brian1944
I just caught it on TV this pm.

[katylied] 16/2/2010 16:54

What has NRRP got to do with PRL? And note that
(last-line) 'It is early days yet' is code for
'ignore/avoid for the foreseeable future'...

[brian1944] 16/2/2010 16:30

Web Site: North River Resources
Other Articles: 03-02-2010
25-11-2009
20-11-2009


North River Resources.North River Resources plc is an AIM listed multi commodity resource development company, focussed on southern Africa. Its current portfolio includes significant gold and base metal assets in Namibia and uranium, gold and copper assets in Mozambique. The Company has an active development plan with the aim of generating production in the near term. North River Resources is approximately 45% owned by AIM listed Kalahari Minerals plc.

Tuesday, February 16, 2010

North River Resources: resource rich in more than one way
by Michael Welsh

As an investor in AIM listed companies, nerves of steel, patience and a high propensity for risk are normally a must-have pre-requisite particularly when the market is as volatile as it has been in recent times.

Therefore if directors are willing to invest their own money in a company it's normally a pretty good indication that the company is in safe hands with a half-decent outlook. Couple this with a cash-rich balance sheet and you have the initial makings of a possible investment opportunity.

These are the current circumstances of North River Resources (AIM: NRRP) the multi-commodity South Africa based development company.

NRRP has an extensive portfolio of assets comprising: gold and base metal assets in Namibia, uranium, gold and copper assets in Mozambique.

The company is relatively new to the market having listed on AIM just over 3 years ago. Despite joining in arguably the most tumultuous period in the markets history the company have progressed well, though virtually all of this progression has taken place in the last 12 months.

This period has seen NRRP transform from a purely exploratory company with no defined mineral resource to an identification and development company focused on various Sub-Saharan assets with significant mineral resources. In addition a shrewd management team have obtained the financial backing of Kalahari Minerals (AIM: KAH) who now hold a 44.9% interest in the group making them largest shareholder.

This transpired through NRRP acquiring gold and base metal assets off KAH through a share sale agreement. In simple terms this means NRRP assume ownership of KAH's non uranium assets in Namibia and will work in tandem with KAH in exploration, development and production of them. In exchange KAH have received a 45% stake in the company.

This deal is beneficial to both parties though from North River's perspective it means they have a significant interest in base metal reserves and a vast property with bags of potential for further mineral discoveries.

Furthermore their newly established partnership with KAH provides them with substantial in-country presence, plenty of local connections and support from a financial and economical viewpoint such as excellent local knowledge, a skilled development team and effective equipment/machinery.

Looking closer at the Namibian properties these comprise 4 main license areas, these are: the Dordabis Copper Licenses, the Witvlei Copper Licenses, the Namib Lead-Zinc Project and the Ubib Copper-Gold Licenses.

To date NRRP have delineated a JORC-code compliant resource of 1.74 million tonnes (Mt) grading 0.9% copper at the Koperberg prospect which is part of the Dordabis license.

At the Witvlei license, in-house evaluations have been carried out indicating a large potential for copper and KAH have indicated they expect to extract over 250,000 tonnes of copper metal from these 2 combined licenses.

The Namib Lead-Zinc project as yet does not have a JORC-compliant evaluation however previous in-house evaluations have returned very high grades of zinc, lead and silver. The Ubib Copper-Gold license is still being examined though previous evaluations have shown high potential for copper and gold.

To add to the current hive of activity the company are waiting to hear back from a bid they placed for a gold deposit in Namibia. Should the bid be successful, NRRP, using the financial strength of KAH, will work on getting the gold deposit to production as soon as possible to provide cash flow.

This is a good demonstration of the group's new-found ability to act on attractive opportunities when they arise with the financial might of KAH supporting them.

Management have previously stated their intentions to grow the company in Sub-Saharan Africa through identifying and acquiring other assets and Namibia could be a good place to start from.

Namibia is most commonly associated with its prolific diamond industry though has since been recognised as a hot-spot for uranium, base metals and gold prospectors and is now the 5th largest uranium producing country in the world. With an economy that is heavily reliant on export of minerals and a country which is resource rich it seems NRRP have the perfect settings for expansion.

Outside Namibia the company has acquired other interests in Mozambique. This comprises 5 license areas targeting gold and uranium. The company are still at very initial stages with the Mozambique assets and are drawing up work plans for each license area.


North River Resources has all the makings of a potentially very profitable multi-commodity development and production company. The company will almost certainly grow its resource base over the next few years, however, what makes North River unique from many other microcap exploration companies is its partnership with Kalahari Minerals, which should be an immense help in nearly everything they do within Southern Africa and is a luxury not experienced by the vast majority of junior mining companies.

Having completed a placing for £7 million in October 2009 the company is not only resource rich, but has ample cash to aggressively develop its existing assets.

It is early days yet for the company but the next few years will be v

[brian1944] 16/2/2010 16:20

that was in the sunday telegraphy. azale

[azalea] 16/2/2010 16:14

President Obama has announced the building of two new nuclear powered enery plants in Georgia.

[grazzer] 16/2/2010 08:35

Grabbed another 150k this morning. What with all these investment committees, Extract and GCM I'm sure something is likely to happen which will see Polo rerated ... I can't see it falling much, but there is a fair amount of upside. imo,dyor,bbb

[kerrie3] 16/2/2010 07:33

steeplejack,
i agree, Anglo Pacific has been a great buy/hold.
the point about PRL and patience is that one day there is a great chance we will wake up to a 'blockbusting' RNS (on potentially several fronts) that will significantly move the share price and i would want to be holding at the time.
The realisable asset values are 70%/80% higher than the current Market value even ignoring the potential of the Mongolian JV and together with the significant Director holdings the upside potential is far greater than downside risk.

[steeplejack] 15/2/2010 11:12

I don't compare with building society returns ,i compare with the likes of Ferrexpo or, an even more comparable company,Anglo Pacific which is a natural resource investment company and a very active one.Got the timing wrong on Polo ,so did Dattels with his buys at 5p,just going to have to sit it out.Now compare this with one of my largest holdings





You'll get a yield on this stock that will dwarf your building society account returns for starters.

The mistake i made was to make a handsome return on Kalahari and then switched out into the cul-de-sac that is Polo.It's about timing barryrog.Patience is not always a virtue....."best price you get mate...",that could be wishful thinking given they recently slumped to 3.5p when the flagship holding in Extract was a good deal higher than it is currently.Time will tell.Now let's have a look at Patagonia Gold.

[fordtin] 15/2/2010 10:56

Appointment of Kalahari Representative to Extract Board

[barryrog] 15/2/2010 10:05

humbugg,
i suspect that this maybe the best price you can get mate, certainly i have been happy to add more below 3.9p this morning.
it depends on how long your investment horizon is, in my case this is money i would otherwise being putting in the building society so i'm more than happy to accumulate.

[steeplejack] 15/2/2010 09:36

Say what you will about the inherent attractions of PRL,my share purchases have been as awry as the managements share additions.These "sum of the parts/asset value computation" stories ,invariably prove to be a disappointment and whilst i'm sure it'll come right in the end,on an opportunity cost basis this has been an old dog over the last few months.

[humbugg] 15/2/2010 09:12

barry,
its getting closer every day
:-))

[barryrog] 15/2/2010 08:58

very strange mm behaviour this morning - it usually takes large volumes to move the share price.

[azalea] 14/2/2010 09:52

Matt Guarente(Interactive Investor) 12/2/10
Is Uranium the clever 'green' investment?

Extracts(no pun intended)

"Either we start splitting some serious atoms, or the lights go out"

One city based uranium trader(who declined to be named), says "the need for nuclear is clear. Wind and solar -you're in cloud cuckoo land if you think that's the answer. You need base loadpower and the carbon issue means its going to be nuclear".

The simple maths is this: making electricity with advanced nuclear technology
costs circa $16 per megawatt hour. Clean coal is $23; clean gas is $55.

When the U.S.A. stands up and says its time to look at the nuclear option for real safety of sustainable supply, we should all take note. Especially investors. Uranium oxide U308. Yellowcake: the new green fuel.

"Currently there are 45 nuclear reactors being built. Industry analysts UxC says there are plans for 400 new nuclear power stations currently announced -approx the same as those currently in use. By 2015, industry forecasts show uranium demand again exceeding supply. Its a great time to be a uranium miner".

I totally agree on the wind power and solar energy statement. I am surprised that clean gas is so expensive.

It will take 15-20 years for China and India to build enough nuclear power stations to meet their demands for electricity, which leaves coal with a clear field for some years to come- carbon issue or no carbon issue.

PRL and its investors will have their day.

[azalea] 12/2/2010 17:22

Marben100
I think we are. I am just going to sit on my hands with this one and wait for MBO to report to PRL and see what course of action(if any) it decides to take.With directors having bought circa 65m since May 09(Dattels - 40m, total 111m) and at best currently breaking even on those purchases, they will be looking for a profitable return beore the year is out.

[marben100] 12/2/2010 15:44

azalea - I think we're in agreement :0)

z - re "stepping back", this is all to do with strict legal & regulatory compliance. Don't forget, Dattels is a lawyer & Rio Tinto also have one of their lawyers on Extract's Board. Everyone will be watching everyone else like hawks for any slip-ups they can take advantage of.

Boy, those Board meetings must be a bundle of laughs. :0)

Just an anecdotal aside: I saw Dattels & Rio's lawyer (Laurie Kennedy)interacting during the post-meeting chat at Kalahari's last AGM. Though the meeting itself was very tense, with Kalahari having had to make concessions to Rio (though they overcame them at a later EGM), relations between Dattels & Kennedy seemed quite amicable. I think each side knows exactly where the other is coming from.

Cheers,

Mark