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

[steeplejack] 03/3/2010 11:55

Exciting times ,another farthing on the price and i'll be making a profit!!

[soundbuy] 03/3/2010 11:33

I like the part 'within the next two months'

News flow soon.

'London-listed Polo, which has appointed BMO Capital Markets to advise on its strategic options, will likely decide whether to sell its 9.29% stake in A$1.8 billion-valued Extract within the next two months, managing director Neil Herbert said.'

[someuwin] 03/3/2010 11:26

Took a few this morning.

[2viewer] 03/3/2010 11:22

about bloody time azalea - some of us have been here a good while realising the potential and waiting for the rest to realise it. hopefully not another false dawn

[azalea] 03/3/2010 11:17

Looks like a few PI are beginning to catch on to the potential for imminent developments.

[soundbuy] 03/3/2010 10:54

Well, reduced my holding a few weeks ago in KAH and added here. Considering reducing further and increasing here and EML. More immediate and long term value here perhaps with discounts etc.

Edit: Not to ignore possible immediate news flow here re EXT holding, GCM etc. (which of course may rub off on KAH).

[katylied] 03/3/2010 10:14

Which report was that marben100? I would be interested to read it.

[marben100] 03/3/2010 10:10

I, for one, would be rather disappinted if Polo thought that a 30% premium to the current share price was an adequate reflection of the value of its stake in Extract Resources.

Interesting times ahead, but seem likely to be positive for investors in Polo.

BTW, GCM currently represents only 11% of Polo's NAV (and that's discounting the Mongolian assets) - but obviously that would change if Phulbari got the go-ahead.


katylied... no idea where your supposed consensus came from. Extract does not NEED a partner - and has said so repeatedly. Its market cap (over US$1.5bn) & access to funding is sufficient for the company to go it alone. Around US$1bn is likely to be sufficient to develop the mine, which I have little doubt could be raised through a combination of equity & debt. A recent analyst report suggested that a JV would be value destructive & saw no reason for the company to enter into one (but everything has a price, of course ;0)).

Mark

[azalea] 03/3/2010 10:05

If there are bidders for Extract as a whole, then any of them would be happy to have PRLs stake under its belt in order to strengthen its case.

[katylied] 03/3/2010 09:50

Quite. The 'Rossing South Feasibility Study' is due in June, and the concensus seems to be that a JV at least, will be required to move on from that milestone...

[soundbuy] 03/3/2010 09:44

Extracts new presentation

You can 'feel' the potential and they know it. That's why I expect a 30% premium minimum or would be against the interest of shareholders to sell when 12 months down the line EXT's potential is better understood with perhaps much more in the bag to come.



Of course, PRL could simply be putting its EXT stake up to indirectly flush out bidders for EXT.

[azalea] 03/3/2010 09:07

There will new coal and steel contracts in April which should see a significant rise in prices. PRL coal assets are a mere 150km from China's border where demand for coal to feed its power stations is insatiable.

I am almost surprised but very pleased that our thinking on the Extract stake has been publicly validated by no less than the MD Neil Herbert

I can wait for a couple of months to make circa 100% profit, in the meantime just added 100k @ 4.299P.

[hoveactually] 03/3/2010 08:52

i agree with Barry, what a crazy situation.
there are many scenarios but using 'Soundbuy's' number i like the idea of returning 2.7p cash per share to holders and using the balance of the cash for further earnings enhancing acquisitions. the NAV would still be around 6.5p even after returning the cash.
all this potential for 4.25p per share.

[katylied] 03/3/2010 08:50

Would this be about PRL looking to dispose of its EXT stake in an isolated transaction, or about pledging support to some third party looking to take on extract more comprehensively? The article say 'within 2 months', but isn't EXT's whole future under review for a ~June timeframe anyway?...

[soundbuy] 03/3/2010 08:43

Would expect a minimum 20% premium. Would be looking to secure at least 30% considering highs of EXT plus the resource upgrades which we know are forthcoming.

So looking for 5.8p per share plus other assets.

[barryrog] 03/3/2010 08:27

yes its a crazy situation.
Polo's stake in Extract at todays share price is worth around £105 mill or 4.48p a share. a sale at a 20% premium would be worth around 5.4p a share.
their other assets are around 3.75p per share with the Mongiolian JV in at cost only.

[roger the dodger2] 03/3/2010 08:21

Interesting comments, looks to me like they are going to sell their stake and concentrate on coal. That could be very positive for the share price IMHO.

[azalea] 03/3/2010 08:08

"Given em the money Mabel",I say!

[steeplejack] 03/3/2010 07:58

azalea - 2 Mar'10 - 15:58 - 6369 of 6373

"The only disposal I'm interested in, is Extract. That could do a Hughie Greene (Double your money) for the share price "

Well,you've shown your age there azalea,a trip down memory lane!!I was keener on "Take Your Pick" myself with Michael Miles.I guess my target price has to be 5 bob and i mean that sincerely folks.

[kerrie3] 02/3/2010 23:28

lots of discussion on the GCM thread re impending breakout.
Polo holds 29.8% nearly £20 mill so would be big beneficiaries.

[katylied] 02/3/2010 21:31

Brian Gilbertson (of Pallinghurst) launched his 'steel feed' project 'Jupiter Mines' ASX:JMS just a couple of days ago. He has iron-ore (Yilgarn) and manganese (philbara plus South-African Tshipi). Seems coking-coal is very much on his agenda now. Caledon did cross my mind, but whether it would have crossed BG's....?...