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

[kerrie3] 23/3/2010 18:01

It is incredible isn't it.
i can understand people getting bored/frustrated with a share (even if is clearly undervalued) when nothing much is happening and/or news is not expected.
but here, we know something big is happening and while we wait their biggest holding is fast becoming one of the most sought after Cos in the world.

[azalea] 23/3/2010 17:18

Impatience is the investor's worst enemy.

[barryrog] 23/3/2010 16:46

I agree.
impatient sellers are leaving at the wrong time in my opinion.
imagine selling and waking up to a 7 am RNS saying they have reliquished their holding in Extract for the equivalent of 5.5p per share cash.

[soundbuy] 23/3/2010 14:25

Not a share to be out of at the moment I'd have thought. I personally wouldn't like to be out of this overnight.

Newsflow re EXT holding and news from EXT itself forthcoming.

CDN, GCM, AEE making moves.

[soundbuy] 23/3/2010 14:03

Posted by Gero67 KAH thread

Australian Financial Review - March 23 - Page 27

Uranium Play Extracting Some Gains

By David Ciampa

Investors in small uranium play Extract Resources may not be too deterred by the Indian central banks decision late last week to raise interest rates, which accordingly caught the commodities markets off-guard. While the move may have clouded the global growth picture, Extract investors will be concentrating on the long-term demand for energy increasing especially from countries like India and the viability of the energy sources technology.

The stock was the standout performer in the S&P/ASX200 Resources index last week rising as much as 15 per cent, boosted by a 14 per cent jump on Friday amid reports that two Korean groups may make a joint bid for the Australian explorer. Extract owns the Rossing South deposit considered on of the world�s most promising uranium projects adjacent to Rio Tintos Rossing mine in Namibia, which both Korea Electric Power Corp and state-run Korea Resources Corp may make a joint bid for, or even extract itself.

As part of a soon-to-be completed strategic review, Extract has been talking to miners and uranium buyers about deals ranging from a stake in the project and an offtake agreement to a full takeover.

Extract, which is 16 per cent owned by Rio, was one of the best performers on the S&P/ASX200 index last financial year, surging more than six-fold.

But it has run out of puff in recent months and last weeks gain had the stock at its best level in about two months. Among other fast-growing economies, South Korea is one of a group of Asian countries with soaring energy needs and plans to add eight atomic plants by 2016 and export 80 reactors by 2030.

Korea Electric Power vice president Chang Joe Ok said the company was interested in the Rossing South mine in Namibia owned by Extract, but added that �pricing is the most important factor. The South Korean group is reported to be undecided whether to bid for a stake in the Rossing South mine or Extract Resources itself.

Canadian broker Haywood Securities has placed a $10.10 price target on the company.

Rio Tinto-controlled uranium producer Energy Resources of Australia also rose last week after noting that the global financial crisis had created a slump in new mine development that may lead to improved prices for the nuclear fuel.


I assume the Haywood Price Targget is in C$?

If so would be ~A$10.80.

Regards

Steve

[marben100] 23/3/2010 13:27

Dattels & Mellon making a new investment in Venturex (ASX:VXR) via Regent Pacific:

"We consider a strategic investment in Venturex as complementary to our existing VMS deposits held via our 40 per cent. equity interest in the Dapingzhang Mine and our 97.5 per cent. equity interest in the Yinzishan Mine, both located in Yunnan Province, China and a sensible diversification of our existing coal projects.

The Board is of the view that the long term outlook for copper and zinc continues to strengthen with the growing realisation that demand from China (the world's largest consumer of copper and zinc) will remain strong in the foreseeable future."

May give some insight into their thinking.

Cheers,

Mark

[soundbuy] 23/3/2010 12:48

Perhaps update on EXT holding etc. with interims.

[marben100] 23/3/2010 12:31

Interims due any time now. They were issued on 31st March last year.

[pappupops] 23/3/2010 09:08

anyone know if any results due soon?

[marben100] 22/3/2010 21:01

Thanks for all your work on this, JF.

Personally I'm happy with the thread as it stands, for now.

Best of luck with your new interests.

Kind regards, Mark

[jonny flame] 22/3/2010 18:58

marben100, et al - I no longer have a holding in PRL, wish I had more funds and could build a stake in PRL as I believe that sentiment, prospects and fundamentals are now looking very encouraging, however such is life. I worry that as my attention is elsewhere perhaps regulars of this board may feel the need to set up a new thread due to my lack of attention, if so please feel free to source any material from this thread when setting up a new one. If not and you are happy with the current board but want some links etc added either now or in the future you can find me on the FND bb, no one ever posts there so just drop me a message and I'll update the PRL header as and when needed.
I just thought I would mention this. Best of luck with PRL.
Kind Regards, JF

[marben100] 22/3/2010 18:26

Nothing for the BKY options, so they're a potential bonus as is the Mongolian JV. There is no call option on Caledon, other than the converts themselves, unless you know otherwise? The announcement re the recent loan note purchase is here: .

The converts entitle Polo to buy 9.4m CDN @ 50p (based on Polo's earlier purchase) and 5.2m @ 47.5p. There are currently 210.5m CDN shares in issue, which would rise to 263.9m if all converts were converted and outstanding options exercised. Polo currently owns 54.4m CDN shares, according to my records.

Cheers,

Mark

[8662] 22/3/2010 18:14

With regard to the NAV, have you included anything for PRL`s 24 million options in berkeley at 25 cents or their rights to buy 166 million CDN ( at what price I don`t know) that they got at the time they bought CDN`s 8 1/2 % convertible debt, and whatever that`s worth.

I am a new holder, If I am behind the times in terms of holdings, my apologies,

[marben100] 22/3/2010 18:06

Fully marked to market Polo's NAV, excluding Mongolian assets, is currently 8.0p/share (undiluted), 7.2p fully diluted. The Extract holding alone is currenly worth 4.8p/share. The gains on Extract outweigh the losses on Caledon by some margin.

Despite the discount (which as Katy suggests would probably reduce somewhat if PRL realised a substantial amount of cash), doing an all-share deal for a cash-poor company that is at a similar or larger discount to assets... and then using Polo's cash to develop that company's assets would make a lot of sense for both the acquirer and the target. ;0)

Cheers,

Mark

[phillis] 22/3/2010 14:14

mark it to market

[azalea] 22/3/2010 10:37

The share price is not conforming with the 'normal' idea of a 'seller's overhang'. I am not going to torture myself trying to second guess what PRL might do with the proceeds from Extract. However, IF the Board is intent on putting it into coal, my favourite would be to buy CHL(I hold), before a Chinese/Indian company does. DYOR

[dbno] 22/3/2010 10:33

How do you calculate the huge loss?

[phillis] 22/3/2010 10:17

sitting on a huge loss with CDN
Probably not reflected in the accounts although I haven't looked

[steeplejack] 22/3/2010 08:41

One thing is clear .Mr Dattels plays it long ,a good deal longer than our perception ,well mine anyway.He's not that active when it comes to deal making ,not as active as APF for example.Anyway,there's clearly been a seller over-hanging this stock and we can only hope they're largely finished.Often when you get these sellers it tells you nothing ie in the context of the fund concerned the holding is not that significant albeit it's a pain to watch indiscriminate selling.Good fund managers are few and far between.

[humbugg] 22/3/2010 08:31

morning katy,
cunning plan....i wonder?

[katylied] 22/3/2010 08:21

The discount is a consequence of market perception. PRL is without doubt, a resources 'investment company'. I think a discount of some sort is not unusual in such cases at the best of times and post 2009, the market isn't especially rational. Cash (assuming they get cash) from EXT will make a difference, as cash is unlikely to be discounted. However, logically, the obvious way to turn a discount into a premium, is to change that 'investment company' perception... So what is Dattels' cunning plan?...

Good Morning humbugg... :o)

[humbugg] 22/3/2010 08:09

barry,
im certain they'll be NO dividend. acquisition would be another certainty. but what do i know.

[barryrog] 22/3/2010 08:08

someone bought 4.25 mill after close on Friday - just showing on 'moneypm'.

[sitiain] 22/3/2010 08:00

there is no value to shares holder though is there?
not with everything trading with so much discount to nav.
what the point of him going off and buying a coal mine for 100 mio quid , when it will only be valed at 50 mio quid in the polo company .
there is just no value unless you sell it and give cash

[barryrog] 22/3/2010 07:43

I'm not sure.
I expect the Extract holding to go to the highest bidder in the near future.
if they realise 5.25p + per share in cash, part of this as a 'one off' payment would be nice but could Dattels maybe spring another surprise acquisition that would bring even more value to shareholders?
I wouldn't put it past him - we shall see.