Polo Resources Share Discussion Threads

[dekle] 27/2/2019 10:12

Alliance news correction?

[jamesss1] 27/2/2019 09:44

Obviously not ....fkin thing

[philjeans] 22/2/2019 17:32

'cos it's pointing that way.

[jamesss1] 22/2/2019 12:10

Maybe this will start ticking up slowly now.

[shawzie] 20/2/2019 09:31

Glencore is reported as now divesting itself of coal investments. Some of which it purchased from Rio Tinto in 2017.
Polo investments in coal may end up being worthless as renewable energy continues to increase market share.

[barnetpeter] 20/2/2019 05:12

If this is to be a long term investor in a small number of companies polo runs itself. The costs to shareholders currently are just too high in my personal opinion!

[barnetpeter] 20/2/2019 04:50

Well I sold some of my holding at over 4.6p on this note from Tang....for a reasonable profit. Been in at 3p and lower since 2016.

The discount is of course crazy but "Chair Michael Tang, it continued, has received around USD1 milli on a year, and his compensation through 2018 to 2020 is estimated to be 35% of Polo's market cap".

So it appears he wont sell any of the Hib stake and return it to shareholders because I think he considers this is mainly his money. What is wrong with returning cash I wonder?

I have kept half my stock on the hope that Phronimos will try to force a vote and get Tang out even though they only have 14%.

Just my personal opinion!

[barnetpeter] 20/2/2019 02:18

LONDON (Alliance News) - Phronimos Capital LLC on Wednesday said it wrote to Polo Resources Ltd ...
Alliance News13 February, 2019 | 9:26AMEmail Form
LONDON (Alliance News) - Phronimos Capital LLC on Wednesday said it wrote to Polo Resources Ltd in January requesting a tender offer to return 10 to 12 pence per share to shareholders.

Shares in resources investor Polo were 16% higher on Wednesday at a price of 4.76 pence each. In early 2014, they stood much higher, at 20.63p.

Polo has stakes in gold, oil and gas, coal, iron ore, and phosphate projects across five continents.

The investment advisory firm wrote on January 28 to Polo on behalf of some of its clients who are Polo shareholders, with a 14% stake in total.

"The persistently large discount of Polo's stock price to net asset value precludes shareholders from realizing anything remotely close to its fair value through open-market transactions," said Phronimos.

"Consequently, we believe the next logical step to protect and unlock shareholder value entails a tender offer at 12 pence per share."

Phronimos said funds could be sourced from a sale of some or all of Polo's "successful" investment in Hibiscus Petroleum, with the entire stake double Polo's market capitalisation.

Selling one-third of the Hibiscus stake, the advisor continued, could allow Polo to buyback 20% of its shares at 12p, a significant premium to its current share price. It believes there would be widespread shareholder support for the move.

Phronimos does not dispute Polo's right to "generously" pay its leadership when they help create shareholder wealth, but it noted Polo's share price has fallen 80% over the past five years with no returns whatsoever.

Chair Michael Tang, it continued, has received around USD1 million a year, and his compensation through 2018 to 2020 is estimated to be 35% of Polo's market cap.

Phronimos lastly urged Polo to stop making new investments into resources explorers who cannot fund their capital expenditure needs.

"Phronimos has studied the returns of publicly traded natural resource companies across the globe from 2005 to 2018 and the results indicate shareholder returns from resource companies with assets producing free cash flow were more than quadruple their free-cash-flow-negative

counterparts," Phronimos said.

"This empirical study, combined with the anecdotal evidence from Polo's investments in the junior resource exploration companies that resulted in the aforementioned two-thirds decline in NAV since May 2013, leads us to conclude there are better alternatives to deploying capital in resource companies that lack the balance sheet wherewithal and near-term free-cash-flow generation to fund their capital expenditure needs."

A spokesperson for Polo Resources contacted by Alliance News didn't have an immediate response from the company.



Copyright 2019 Alliance News Limited. All Rights Reserved.

[philjeans] 19/2/2019 15:18

Very good update there for Hibiscus.

All very reassuring for POLO holders.

[alpal2] 19/2/2019 10:05

If Phronimos has only one employee, does it really speak for 14% of shares. Or is this just a 'pump-n-dump' scam?

[scoots] 19/2/2019 09:16

Anyone awake?

[jamesss1] 15/2/2019 15:56

Why the hike?

[888icb] 14/2/2019 20:54

Polo UP 4.82% on volume of 650000. Can we end the week over 5p?

[ceaserxzy] 14/2/2019 17:33

Now there is someone standing up to the BODs, should PIs pledge their support to Phronimos Capital?

The response from polo is feeble. It says its long term strategy is to grow the company capital but that strategy has obviously failed spectacularly. The alternative strategy of partial return of some capital by crystallizing some successful investment before it may fade and curbing the extravagant compensation of a failed management certainly makes good sense.

[shawzie] 14/2/2019 15:44

Phronimos Capital has one employee, SAM JOHN. Has one client and six accounts.
Polo might find it difficult to track him down.
From the Phronimos web-site, it appears that the last activity of the kind taken with Polo was in 2015 and that company (S i2i) was quoted on the Singapore exchange.

[dixi] 14/2/2019 15:25

It's because it's registered in Bermuda or something like that. You can sell through BSL but not buy.

[atholl91] 14/2/2019 15:23

Smojoe. I sold our subsidiary in China in the early 90's and took my profit when an old China hand said to me if you are a minority shareholder in a Chinese controlled entity you deserve to lose your investment. Hello Mr Tang ?

[celeritas] 14/2/2019 15:19

Barc dont actually offer polo.

[dixi] 14/2/2019 14:36

Shareholder returns through timely transactions - bit like the one in WTI?

[philjeans] 14/2/2019 14:30

Time will not be on his side now - we'll need to see some action and/or significant share price appreciation.

Tang is taking huge sums for nothing!

[mister md] 14/2/2019 13:59

No wonder he's happy with his current strategy ;)