Polo Resources Share Discussion Threads

[cfb2] 28/3/2017 16:07

Blackham resources have only just raised A$35m to develop Wiluna. Anyone more knowledgeable going to suggest what this might be? If it's further fund raising then Polo could soon be getting short of cash to pay Tang...!

[spights] 28/3/2017 08:07

Trading halt

[failedqs] 27/3/2017 11:16

They haven't announced details yet, but it's coming.Apparently a pay and benefits package of over $1m a year isn't enough!

[dbno] 27/3/2017 11:04

No, he just writes a cheque.

[roomb] 27/3/2017 10:54

What does Mr Tang have to achieve to get his bonus? Is it linked to the Share Price?

[failedqs] 27/3/2017 08:15

Interims out later this week?What chances of some good news?Maybe we will get an update of how Tang is awarding himself a large slice of the company at shareholders expense via the new bonus scheme.......

[spights] 26/3/2017 23:10

All we need is the share price to respond
I am on my way home from Dublin

[888icb] 26/3/2017 22:39

Very positive on BLK going forward.

[spights] 26/3/2017 21:21

Here we are almost 1/4 way through 2017 and while March has been a down month so far. The miners continue to outperform on the year. With the recent rise in the AUD gold price coinciding with the decline in Aussie Gold Companies, I thought it may be a good idea to revisit the fundamentals…. (how much money they make!)

Below are my 5 favourite gold miners currently. I have been moving funds away from NST and moving them into RMS and BLK looking for more growth opportunities. While I consider NST to be the #1 gold stock on the ASX, it has becoming a little boring to hold, I would like to see more of an Evolution type business with all that free cash.

Below are the 5 companies which I have listed the costs, profit and revenue based on the numbers in their latest quarterly. For Blackham I have used 120kozpa and also 200kozpa for the future. The gold price I have been conservative with an average of $1600 AUD, currently at $1634.

As you can see the larger cap companies are trading for about 2-3x sales while BLK and RMS are trading near 1x sales. Why is this the case? Gold sentiment is still in the toilet.

As an investor who has been in NST since 90c, RSG at 60c and BLK at 20c would I still buy at these levels? Absolutely – and I am on pullbacks like this week.

While gold in Australian dollar terms slowly rises and the shares get sold off because of USD sentiment, that is the time to strike.

Here are the numbers…

NORTHERN STAR RESOURCES
Current Market Cap – $2.46B

Gold Price AISC Profit Per Oz Oz Produced Revenue Profit
$1,400.00 $1,050.00 $350.00 500,000 $700,000,000 $175,000,000
$1,500.00 $1,050.00 $450.00 500,000 $750,000,000 $225,000,000
$1,600.00 $1,050.00 $550.00 500,000 $800,000,000 $275,000,000
$1,700.00 $1,050.00 $650.00 500,000 $850,000,000 $325,000,000
$1,800.00 $1,050.00 $750.00 500,000 $900,000,000 $375,000,000


RESOULTE MINING
Current Market Cap – $1.0B

Gold Price AISC Profit Per Oz Oz Produced Revenue Profit
$1,400.00 $1,280.00 $120.00 300,000 $420,000,000 $36,000,000
$1,500.00 $1,280.00 $220.00 300,000 $450,000,000 $66,000,000
$1,600.00 $1,280.00 $320.00 300,000 $480,000,000 $96,000,000
$1,700.00 $1,280.00 $420.00 300,000 $510,000,000 $126,000,000
$1,800.00 $1,280.00 $520.00 300,000 $540,000,000 $156,000,000


EVOLUTION MINING
Current Market Cap – $3.44B

Gold Price AISC Profit Per Oz Oz Produced Revenue Profit
$1,400.00 $930.00 $470.00 830,000 $1,162,000,000 $390,100,000
$1,500.00 $930.00 $570.00 830,000 $1,245,000,000 $473,100,000
$1,600.00 $930.00 $670.00 830,000 $1,328,000,000 $556,100,000
$1,700.00 $930.00 $770.00 830,000 $1,411,000,000 $639,100,000
$1,800.00 $930.00 $870.00 830,000 $1,494,000,000 $722,100,000


RAMELIUS RESOURCES
Current Market Cap – $262M

Gold Price AISC Profit Per Oz Oz Produced Revenue Profit
$1,400.00 $1,100.00 $300.00 140,000 $196,000,000 $42,000,000
$1,500.00 $1,100.00 $400.00 140,000 $210,000,000 $56,000,000
$1,600.00 $1,040.00 $560.00 140,000 $224,000,000 $78,400,000
$1,700.00 $1,100.00 $600.00 140,000 $238,000,000 $84,000,000
$1,800.00 $1,100.00 $700.00 140,000 $252,000,000 $98,000,000


BLACKHAM RESOURCES 120KOZPA
Current Market Cap – $186M

Gold Price AISC Profit Per Oz Oz Produced Revenue Profit
$1,400.00 $1,140.00 $260.00 120,000 $168,000,000 $31,200,000
$1,500.00 $1,140.00 $360.00 120,000 $180,000,000 $43,200,000
$1,600.00 $1,140.00 $460.00 120,000 $192,000,000 $55,200,000
$1,700.00 $1,140.00 $560.00 120,000 $204,000,000 $67,200,000
$1,800.00 $1,140.00 $660.00 120,000 $216,000,000 $79,200,000


BLACKHAM RESOURCES 200KOZPA
Current Market Cap – $186M

Gold Price AISC Profit Per Oz Oz Produced Revenue Profit
$1,400.00 $1,140.00 $260.00 200,000 $280,000,000 $52,000,000
$1,500.00 $1,140.00 $360.00 200,000 $300,000,000 $72,000,000
$1,600.00 $1,140.00 $460.00 200,000 $320,000,000 $92,000,000
$1,700.00 $1,140.00 $560.00 200,000 $340,000,000 $112,000,000
$1,800.00 $1,140.00 $660.00 200,000 $360,000,000 $132,000,000


With the cash generating abilities of the above companies and many more on the ASX, how long can the stock prices remain this low? I’m betting not that much longer as long as the AUD gold price remains at elevated levels and sentiment slowly changes.

Edit: I forgot to add the cash positions which make them even more of a bargain. NST – $300M in cash and bullion. RSG $280M in cash investments and bullion. RMS $95M in cash and bullion.

EVN has debt but paying it off quickly. BLK just raised capital and should be net cash positive by the end of the quarter.

[spights] 26/3/2017 21:18

www.chamberofmerchants.com.au/cash-generating-machines/
Posted on iii by Sec
Not my post

[spights] 24/3/2017 08:09

www.businessnews.com.au/article/Blackham-s-plans-to-double-production-boosted-by-latest-drill-results?

[failedqs] 21/3/2017 12:55

Sometimes, but not in this instance!
He is a blundering buffoon who is way out of his depth.

Simon Cawkwell met him, and told him he was either a crook or an idiot......

[failedqs] 21/3/2017 12:23

Almost 4 years of Tang - surely it's time shareholders collectively showed him the door. He's been a disaster.

[888icb] 20/3/2017 11:40

Spights
I am fine thank you.
I am just a little frustrated that the share price has pulled back again just when I thought we were going to push up again. Clearly BLK has seen a big retreat on its share price but the underlying story is very good as it is for a number of the other investments. The general climate for commodities is also positive.
I think that there is so much opportunity elsewhere that Polo is not on peoples radar.
We need a deal to attract attention to us. Clearly green light for Phulbari would be ideal!

[spights] 20/3/2017 10:15

8881CB
Hope you are well
Missed you and your posts

[888icb] 20/3/2017 07:24

What is the source of your information about Phulbari? If it is correct then it would be a game changer for POL and GCM.

[strongbuy] 20/3/2017 07:05

Polo could rise nicely, i herar there is something positive happening with the Phulbari deal which Polo have a stake in.

DYOR but it seems stage 1 approval is nailed on and on the way !

[spights] 20/3/2017 07:01

Blackham
.595

[shawzie] 14/3/2017 17:05

Blackham expects to eliminate borrowings in 2017.
If this is achieved, then Blackham could be an excellent direct investment at the present share price. But, always high risk and not a long term investment.
Spights - thanks for the very prompt info.

[roomb] 14/3/2017 14:00

No it's not "undervalued". It's the price it is.

[spights] 14/3/2017 07:15

Blackham interim