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

[jonnyboy1] 07/3/2010 12:03

yep i have half a million of these. would be nice if they went to a pound :)

[kerrie3] 07/3/2010 11:35

an extract from the final report suggests that investors are missing a real opportunity here.

'As at 14th october 2009, Polo had a net cash postion of $16.9 mill and listed equity investments of $302.3 mill. The combined value of cash and listed equity investments is $319.2 mill, equal to 7p per Polo share'.

given the changes since then and throw in the Mongolian JV with Peabody and this is now in excess of 9.25p per Polo share.

[marben100] 06/3/2010 15:21

"Does Dattels do South Africa?". Polo shares an office in South Africa with Niger Uranium & Templar Minerals. ;0)

[barryrog] 06/3/2010 12:37

humbugg,
hope you bought in @3.95p.
you are probably right re the cash from an Extract sale but not because Directors,Dattels mates or whoever else bought in at a much higher level cos that is irrelevant as all shareholders would benefit regardless of how much they paid for their shares.
the sale would send the share price soaring as the holding in Extract is already worth more at todays Ext share price than Polo's total capitalisation and a decent premium to that price is highly probable.
however,as you say, he is far more likely to acquire other assets ( the nature of the beast etc) at which time me and just about every other holder will make a judgement on the wisdom of those acquisitions and then make a decision to sell some/all or stay invested.

[azalea] 06/3/2010 11:42

Humbug
Would you not consider that even post sale of its Extract stake, PRL asset base would still be bigger than it has funds to develop them.

Neil Herbert - 25 uranium licences spread across the Dornogovi and Dornod districts in Mongolia are non core assets and could "also be sold". That would still leave it with a 19.9% stake in uranium company A-CAP Resources.

[katylied] 06/3/2010 10:39

Any thoughts on what Dattels will go for humbugg (presumably coal)? I did wonder if he might 'offer' to take GCM's interest in CZA of their hands? Does Dattels do South Africa? SA seems to be getting dodgy for business these days. AcelorMittal got a big shock just a short while ago, when they lost a big iron-ore supply contract as a result of failing to comply with government dictated legal changes...

[humbugg] 06/3/2010 10:30

barry,
still here mate.
could'nt disagree more with your view that dattels might give shareholders a special divi from the sale of exract. thats not what he's about. to many mates in at much higher levels for that to happen. my guess is he'll use the dosh to increase polo's asset base. if it ever happens.
regards H.

[marben100] 05/3/2010 16:15

Errr... SAGEM that was 2007

[freegirl] 05/3/2010 15:30

marketmakers seem to be acting like monkeys yet again.
Have just topped up with a 325799 buy which is reported as a sale - seems we can't trust the buy/sell volumes.

[sagem] 05/3/2010 15:25

GOOD FOR POLO ENERGY ;-

Home » Uranium Price: Chit Chat






Uranium Price: Chit Chat
Print This Post | Email This Page: Topic: Uranium - May 18th, 2007
We take a quick whiz around the world picking up some interesting commentary:

A quote in The Australian from Bob Clearly, chairman of Crossland Uranium Mines:

"Uranium has just reached a selling price of $US120 per pound, and there is nothing on the horizon to dampen the strong market demand for the power plant fuel."

The Globe and Mail has an article by John Partridge investigating the meltdown price of uranium in which the following quote appears:

"Even having uranium cost 10 times as much - on the order of $1,000 a pound - would only increase the cost of nuclear power from 5 cents to 6.2 cents," said CNA spokeswoman Claudia Lemieux.

The CNA is the Canadian Nuclear Association.

Mineweb quotes the U.S. Energy Information Administration as follows:

"In their annual uranium marketing report, the U.S. Energy Information Administration determined a total of 27 million pounds of unfilled uranium contracts exist for contracts for 2007 to 2016."

In a piece on Stock Interview.com we spotted the following comment:

"In a brief interview we had with University of Montana professor of mining engineering Courtney Young, this past February, he encapsulated the entire problem facing the uranium mining and nuclear sector in a few powerful words, "The public doesn't know where their energy comes from." He told us most people just think you just plug the 'thing' in and it works. And he was referring to highly educated college students, not the chefs in fast-food joints."

Just food for thought, but it would appear that uranium is still at least partly undiscovered and that there is more to come by way of investor interest.

[azalea] 05/3/2010 12:31

Positive events are rapidly coming together for PRL, 2010 should indeed be a "defining year"

[missgemgems] 05/3/2010 12:14

will do the same myself come monday Katy, still think cdn will be taken over in the future,little surprised that they havent responded more with the prospect for the price for coking coal.all looking good for polo

[azalea] 05/3/2010 12:13

KL
Me too!

[katylied] 05/3/2010 12:04

Finally... after dithering for weeks now, on the back of that
coal price update, have bought some CDN...

[barryrog] 05/3/2010 11:46

CDN @ 80p? Polo has 55 mill shares there, that would be worth £44 mill!

[soundbuy] 05/3/2010 11:27

Today - Arbuthnot

In breaking news reported by Bloomberg, BHP has agreed a very positive 55% increase in the contract price for coking coal with the major Japanese steel customer, JFE Holdings. The price agreement of $200/t covers only the June 2010 Quarter, but with no stated tonnage. NH8% above our expectations
We had conservatively expected a price for hard coking coal of $185/t to be agreed in 2010 negotiations, therefore this agreement is an 8% improvement on our expectations. Further, the move to a quarterly price vs. a full year term is a major development in the market as suppliers endeavour to move average sales closer to spot prices, and is a positive sign for further price increases from the supply-side

Annualised this increases earnings by over 100%

In a traditionally low-margin, high tonnage business, such increases make a huge impact on earnings. In the junior sector in London, the two companies with direct exposure to the pacific (or Asian) seaborne market for hard coking coal are Western Coal Corp and Caledon Resources. If this agreed prices becomes the benchmark, we expect both Western and Caledon will see an annualised earnings boost of c. 140% on EBITDA and 170% on EPS. If higher contract prices are established over the long term, a 100% increase in the NPV valuations.

BUY WTN and CDN

On this news we re-iterate our Buy recommendations for these two coking coal producers, expecting them to perform well as further positive news-flow on prices is announced. On Western Coal Corp (WTN) we have a buy recommendation, and upgrade our target price to 300p. For Caledon Resources (CDN), we re-iterate our Strong Buy recommendation and 80p target price.

[azalea] 05/3/2010 11:00

Just tried to add online only to find the limit is a piddling 5k, the MM cannot be that short? Anyone having the same problem? The spread is now so narrow that I am treating any trade above 4.45p as a buy.

[barryrog] 05/3/2010 10:42

returning money to shareholders is a distinct possibility.
as an example, if they received say £125 mill thats around 5.4p per share.
they could return 2.7p per share to holders, retain the 2.7p cash which added to the other assets would still give them an NAV in the region of 6.5p.

ps
given the current situation, why does a minor 'tick up' of 0.05p attract pi's into selling? a little patience is likely to reap far bigger rewards.

[azalea] 05/3/2010 10:27

If PRL does sell its Extract stake he could use the proceeds to give shareholders(amongst whom he is a 'major')a special dividend?

[arron_micock] 05/3/2010 10:22

Kenway, cheers for that. Bottom line is the share is undervalued and there is significant upside potential in the near term IMHO, certainly a 50% return, that will do me.

[azalea] 05/3/2010 09:16

KENWAY : Many thanks.

barryrog
A fair summary.

Key point for me is the conclusion "nevertheless the fact of the matter is Polo are way undervalued".

[katylied] 05/3/2010 09:00

Thanks for that KENWAY, very interesting read (author needed a bit more time with the grammar-checker though :o)). Dattels should employ a biographer, his memoirs should make a pretty good read someday. I didn't know about the 4p significance, phew! glad I hold from below that, though hopefully it won't matter...

[barryrog] 05/3/2010 08:35

interesting article although most of it is just a 'potted history' of the Co.
what it is saying regarding the future is that it is pretty much certain that Polo will sell their stake in Extract Resources for a cash sum well above the current market value for the whole of their asset portfolio which would bring about a significant rise in the share price.
at that stage shareholders would be faced with a simple choice whether to take the money and run or trust Dattels and his mgt team (which the article says is very strong) to continue increasing the value of the assets.