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

[azalea] 12/3/2010 12:27

1m @4.5p. Online buy limit 10k.

[roger the dodger2] 12/3/2010 12:25

A little bit of patience required here and a very nice return to be had. I am also adding as and when funds permit.

[fordtin] 12/3/2010 12:06

Re; selling to transfer the funds into an ISA in preparation of the dual listing.

just an observation, but why not hang onto your shares then bed&Isa them using your ISA allowance for the new tax year?

[azalea] 12/3/2010 11:52

Downturn
Nothing personal, I hope you make loads in your ISA. Looks like buyers have got their teeth into this one in the last half hour.

[spursmatt99] 12/3/2010 11:49

I was hoping that the price would remain in the low 4p's until dual listing so I could buy in ISA. Sadly not to be from my point of view. On the other hand, pleased it is moving since I have a lot in sbets.

[downturn] 12/3/2010 11:34

azalea - I am one of those "silly billies" who sold - this is merely to transfer the funds into my ISA in preparation of the dual listing. I am probably not the only one repositioning their portfolio

[azalea] 12/3/2010 11:02

brian1944
With the value of CDN up 25% in a week, a successful disposal of Extract and a go ahead for GCM would see PRL sitting comfortably at circa 10p. Interesting to see the share price tick up despite the sellers(silly billies)currently leading the buyers.

[zangdook] 12/3/2010 10:46

6512, meet 6503.

[johnma] 12/3/2010 10:25

Polo Resources (PRL, 4.4p, Buy)
Polo Resources (Polo) is a mining investment company focused in uranium
and coal assets. We wrote on Polo in September, highlighting the value in the price
post the rally in the company's two main holdings – Extract (EXT AU) and Caledon
(CDN LN). While both have given back some of these gains, the key point to note is
Polo is still at a significant 44% discount to our eNAV. In fact, with a holding of c.
£112m in Extract and a £104m market cap for Polo, not only is Polo a discounted
way into Extract but you are getting the remainder of the portfolio for free. Given the
wide discount to NAV has been a long-standing feature in Polo, the obvious
question is what is going to close this discount? We believe the announcement this
week of a conditional listing on the Toronto Stock Exchange potentially can act as
the catalyst for tightening.
Polo's portfolio is dominated by one holding – Extract Resources, accounting for
c. 61% of assets. Extract is a Namibian focused uranium miner which is currently
drilling the Rossing South deposit - this is adjacent to Rio Tinto's producing Rossing
uranium mine. We believe Rossing South could prove to be a world class deposit,
that is potentially attractive to Rio, but we have heard that the ore is different to Rio's
Rossing mine. This implies that Rio would have to double up on processing
equipment if they wanted to develop it, thus not obtaining the synergies from running
it through their current mill.
Caledon Resources (c. 17.32% of NAV) is a coking coal producer situated in
Queensland, Australia. It acquired the mothballed Cook Mine in late 2006 and has
since recommissioned the operation. The company had been soliciting interest for
bids in early 2009, however the Board since decided in December 2009 that it was
no longer going to pursue a sale, given the positive outlook for coal and
opportunities at hand. Price suffered initially but has since rebounded.
GCM Resources (c. 11% of NAV) develops coal mines and power plants in
Africa and Asia. Its main asset is the Phulbari coal project which has an estimated
572 Mt of export quality thermal and metallurgical coal. The company has been
waiting since 2005 for governmental approval to develop the project, and rumour in
January was that the company was on the verge of being awarded this licence.
Share price has rallied strongly since this announcement.
Polo also has stakes in other small listed holdings in A-Cap Resource (ACB
AU) and Impact Resources (IPT AU) accounting for c. 2% of NAV. In the unlisted
portfolio Polo has a producing Mongolian coal JV with Peabody accounting for c. 7%
of NAV. We like the Mongolian coal assets in terms of the coal quality and the very
cheap operating costs. Some investment in transport infrastructure by the Mongolian
government could transform the value of these assets given the asset is land locked
– but we acknowledge this is a slow-burner.
Valuation – At a discount of c. 44% to eNAV, Polo currently trades significantly
below the estimated value of their listed portfolio. Effectively we see it as a cheap
access point to Extract with a number of other promising assets thrown in for free.
While Extract and Caledon have sold off since our last note, this has been balanced
with the sharp rise in AUD in the period. We expect 31st December results to be
released at the end of this month which should give more clarity to exact portfolio

[brian1944] 12/3/2010 10:13

what price PRL with the gohead for gcm. 0.10p???

[azalea] 12/3/2010 09:49

With so much invested by Dattels and other directors I have every confidence that they will deliver, next month could see the first instalment.

[someuwin] 12/3/2010 09:39

Moving up.

[kerrie3] 11/3/2010 23:49

well i have been here for 15 months and added on the dips when cash has allowed.
now my biggest holding and i do have the patience.
at some time the asset value and the share price will get much closer together and the sale of the Extract holding (which i also think is imminent) will be the catalyst to that happening.

[jimbobaroony] 11/3/2010 20:49

Been holding here for what feels like an eternity! Still fully believe that patience will be rewarded. Just wondering if I have that patience though..

[barryrog] 11/3/2010 17:11

i'm pretty loaded here too but i have no intention of selling in the foreseeable future.
yes they are well undervalued versus their assets but a sale of the Extract Resource holding is imo not far away and should bring about a quantum leap in the share price.

[nil pd] 11/3/2010 15:58

It all points to a strong buy. I want more but I'm seriously committed elsewhere at the moment. I'm adding to my GKP daily - another under-valued asset.

[kiama] 11/3/2010 13:30

 Polo Resources (PRL, 4.4p, Buy) (pg 12) – a massive buy that will leave a minty fresh taste
The Liberum Small Cap Team (Rory, Steven and Dan)
Polo Resources (PRL, 4.4p, Buy)
Polo Resources (Polo) is a mining investment company focused in uranium
and coal assets. We wrote on Polo in September, highlighting the value in the price
post the rally in the company's two main holdings – Extract (EXT AU) and Caledon
(CDN LN). While both have given back some of these gains, the key point to note is
Polo is still at a significant 44% discount to our eNAV. In fact, with a holding of c.
£112m in Extract and a £104m market cap for Polo, not only is Polo a discounted
way into Extract but you are getting the remainder of the portfolio for free. Given the
wide discount to NAV has been a long-standing feature in Polo, the obvious
question is what is going to close this discount? We believe the announcement this
week of a conditional listing on the Toronto Stock Exchange potentially can act as
the catalyst for tightening.
Polo's portfolio is dominated by one holding – Extract Resources, accounting for
c. 61% of assets. Extract is a Namibian focused uranium miner which is currently
drilling the Rossing South deposit - this is adjacent to Rio Tinto's producing Rossing
uranium mine. We believe Rossing South could prove to be a world class deposit,
that is potentially attractive to Rio, but we have heard that the ore is different to Rio's
Rossing mine. This implies that Rio would have to double up on processing
equipment if they wanted to develop it, thus not obtaining the synergies from running
it through their current mill.
Caledon Resources (c. 17.32% of NAV) is a coking coal producer situated in
Queensland, Australia. It acquired the mothballed Cook Mine in late 2006 and has
since recommissioned the operation. The company had been soliciting interest for
bids in early 2009, however the Board since decided in December 2009 that it was
no longer going to pursue a sale, given the positive outlook for coal and
opportunities at hand. Price suffered initially but has since rebounded.
GCM Resources (c. 11% of NAV) develops coal mines and power plants in
Africa and Asia. Its main asset is the Phulbari coal project which has an estimated
572 Mt of export quality thermal and metallurgical coal. The company has been
waiting since 2005 for governmental approval to develop the project, and rumour in
January was that the company was on the verge of being awarded this licence.
Share price has rallied strongly since this announcement.
Polo also has stakes in other small listed holdings in A-Cap Resource (ACB
AU) and Impact Resources (IPT AU) accounting for c. 2% of NAV. In the unlisted
portfolio Polo has a producing Mongolian coal JV with Peabody accounting for c. 7%
of NAV. We like the Mongolian coal assets in terms of the coal quality and the very
cheap operating costs. Some investment in transport infrastructure by the Mongolian
government could transform the value of these assets given the asset is land locked
– but we acknowledge this is a slow-burner.
Valuation – At a discount of c. 44% to eNAV, Polo currently trades significantly
below the estimated value of their listed portfolio. Effectively we see it as a cheap
access point to Extract with a number of other promising assets thrown in for free.
While Extract and Caledon have sold off since our last note, this has been balanced
with the sharp rise in AUD in the period. We expect 31st December results to be
released at the end of this month which should give more clarity to exact portfolio
values.

[marben100] 09/3/2010 10:32

Just for a bit more background, Jennifer Dattels (Stephen's wife) is president of Regent Mercantile Bancorp of Toronto:

There are some details of SD's biog shown on Regent Pacific's website that aren't on Polo's:

"Stephen Roland Dattels, Canadian, was appointed as non-executive Co-Chairman of the Board on 12 February 2008. Mr Dattels is an experienced senior mining executive, and was one of the key executives at Barrick Gold Corporation (whose shares are listed on the Toronto Stock Exchange and the New York Stock Exchange) during its formative years before leaving in 1987. He has helped to form and finance a number of mining ventures, including UraMin Inc, which was sold to AREVA NP, the French state owned nuclear company for approximately US$2.5 billion in cash in August 2007. Mr Dattels has a Bachelor of Arts degree from McGill University, a law degree (cum laude) from the University of Western Ontario and has completed the Program for Management Development at Harvard University.

Mr Dattels is also a director of Regent Coal. He is also: (i) a non-executive director of Caledon Resources plc; (ii) non-executive co-chairman of the board of Emerging Metals Limited; and (iii) the executive chairman of the board of Polo Resources Limited, all of which are listed on the Alternative Investment Market (AIM) of the London Stock Exchange."


Also some interesting info in this shareholder notice from Extract:

Stephen's address is given as in Malta, whereas Jennifer is in Caledon, Ontario.

We live in a global era. :0)

Cheers,

Mark

[marben100] 09/3/2010 10:12

Dattels & Mellon have another HK Listed venture, Regent Pacific (HK:0575), so are very familiar with the region & undoubtedly have numerous investment contacts there who may be interested in Polo's activities.

Given the recent growth in demand for coking coal, esp in China, Polo's assets would probably be of interest to Far Eastern investors. For convenience, an HK listing would also mean that the shares could be traded around the clock.

If and when the Mongolian licences could be got into production, clearly China would be the main market for the product.

[azalea] 09/3/2010 09:10

M100
Thank you the info, I for one did not know Dattels is a Canadian.Why would PRL list in H Kong, does it have any interests in China with which to catch investors eye there? If PRL and Peabody get their act together and start exporting their Mongolian sourced coal into China, then it would make a lot of sense.

[marben100] 09/3/2010 08:41

The purpose of the TSX listing is to bring Polo to the attention of a wider investment community, which should help reduce the discount to NAV that the stock trades at. Don't forget that Dattels is Canadian and has strong N American connections. See my notes on last year's AGM, where we discussed this:

A Hong Kong listing is also under consideration.

Good to see the company following through on what I was told at the time.

Cheers,

Mark

[sitiain] 09/3/2010 08:31

lets hop eout horrible seller doesnt pop his head up again .
nice to see a rise ealry days though

[nil pd] 09/3/2010 08:30

Yes, I will barry. All looking very positive.

[nil pd] 09/3/2010 08:29

I've re-phrased my last comment - too early in the morning!

Chart looks good for 4.75p today. Look after it, I'm off back to the land of nod. 'evening all.