Polo Resources Share Discussion Threads

[alpal2] 17/12/2019 11:30

cfb2: Yes, the execs [and specifically Tang] should have their salaries adjusted to reflect the value of their performance. However, this would probably require them to pay Polo rather than them being paid by polo.
Yes, Hibiscus shares hould be sold and the money returned to shareholders.

But I don't like our chances of either of these.

[cfb2] 17/12/2019 11:19

Shouldn't the executive directors take a pay cut in line with their performance? As their salary is the main source of outgoings for POLO this approach should leave the fund with cash almost indefinitely.

[888icb] 17/12/2019 10:40

It is worth noting that Hibiscus has been performing well in December as the value of Polo’s 8.75% has risen by £1 million to £19.77 million. Polo’s current market cap is £12.1 million. Hibiscus is a listed company and so if Polo needed any cash it has an easy source with Hibiscus. Also Hibiscus is considering a dividend which would be good for Polo.

[legionnaire2] 13/12/2019 14:21

How much cash has Polo got left ?
It will be interesting to see from the upcoming annual report.Polo has significant salaries to pay for directors and they are directly subsidising GCM salaries and other GCM related financial requirements.Perhaps a disposal is on the cards...

[888icb] 13/12/2019 11:05

Hibiscus which has a number of North Sea assets and issued an update yesterday is up 6% today which is good for Polo.

[scoots] 12/12/2019 23:45

Where is Spights these days. Hope she is ok.

[888icb] 09/12/2019 23:18

If you take the figures I posted above relating to Hibiscus then just taking the value of Hibiscus, Polo is trading at a 56% discount to the NAV of Hibiscus. All other investments would need to be added on. In my world 56% is a massive discount but is only part of the story and accounts for 6p per share of NAV. NAV per share was stated as 15.59p as at 21st March 2019 in the last Interim report so the company does not agree with your 7p.

[shawzie] 09/12/2019 19:45

888ICB - what do you mean by massive discount? I still think that the real value of NAV per share is around 7p.

[bossman1978] 09/12/2019 15:29

It seems like the discount to Nav has little appetite for anyone to invest in Polo. Gone are the days of Dattels

[888icb] 03/12/2019 22:37

Hibiscus is currently off its recent highs and is currently valued at £214 million. Therefore Polo’s 8.75% is worth circa £18.75 million. So not currently north of £20 million but it has been around there fairly recently. But as Polo’s current market cap is £11.66 million it shows the massive discount to NAV that Polo is currently trading at.

[jamesss1] 03/12/2019 21:46

Im invested alright....from the 15p days ha ha ha what an idiot i am

[shawzie] 03/12/2019 20:54

Can anyone confirm that the value of the Polo holding in Hibiscus Petroleum is north of £20 million?

[888icb] 03/12/2019 18:40

So presumably you are not invested here or in any Tang related investments which begs the obvious question as to why you are wasting your time posting here.

[jamesss1] 03/12/2019 10:56

Tang is just draining everything he can...Simple.No progress No leadership No results No reason to be in anything he is in.

[shawzie] 02/12/2019 20:24

As far as I am aware, Tang has no personal shareholding in GCM.
He does have 7,250,000 options and fees/salary of more than £303,000 mainly paid into his management company.

[rinaldo19] 27/11/2019 16:22

Apparently some peolple trust him since a decade....

[888icb] 27/11/2019 14:23

I have had some good special dividends in the past from Polo when they disposed of major investments. That was under Dattels but GCM is a very long-standing Polo Investment and Dattels brought Tang in to help GCM before Tang got involved in Polo. It is certainly possible that a special dividend could be paid and a big share of that would go to Tang.
Turning to today Polo is up 4.6% on volume of 667000. Most of the trades are being shown as sells but as the share price has risen and the 2 buys are at a lower price than the sells I suspect that the trades are wrongly designated.

[bossman1978] 27/11/2019 13:44

Unfortunately I don't trust Mr Tang and if the green light is given to GCM do you honestly think Mr Tang would award shareholders with a special dividend... Etc?

[1solstace] 26/11/2019 18:15

Wait for the loan and Polo will go down...(what a rhyme)

[888icb] 26/11/2019 13:50

So can we have a commitment from you that you won’t post again on the Polo or GCM bb until at least November 2029. Clearly there is no point in you making further comment as nothing is going to happen in the next 10 years.

[1solstace] 26/11/2019 13:40

I would say a very, very, very long investment. Wait another 10 years for final decision...

[888icb] 26/11/2019 10:56

GCM is a very long term investment for Polo. Tang bought His Polo shares because of the GCM investment. Polo and Tang clearly continue to believe that GCM will be a success and will obviously continue to support it to protect its investment and stop dilution of its shareholding by having the option to convert the loans to shares. I don’t think £300000 per quarter is any problem to Polo and the potential reward is massive.

[shawzie] 26/11/2019 09:53

Where is Polo getting the cash from, to gamble further on GCM.?
Is Polo NAV overstated being non-recoverable loans to other "investments"?
If GCM has no cash, how could it repay loans in 90 days, if demanded by Polo?

To finance its operations during the year, on 30 November 2018, GCM agreed an amendment to the short-term loan facility with Polo Resources Limited ("Polo") (the "Polo Loan Facility"). The Polo Loan Facility was increased by GBP1,200,000 to GBP2,300,000 and provides that the lender has the option to convert all or part of the balance of the Polo Loan Facility at a conversion price of 11 pence per share, subject to Polo's maximum holding not exceeding 30% of the Company's enlarged share capital (See Note 12 for detailed terms).

As at the date of this report, the Company had fully drawn down on the increased Polo Loan Facility and the Company currently has approximately GBP315k in available cash resources, which the Director's believe will only be sufficient to fund the Company's cash requirements for the next two months, assuming the Company's currently forecast cash costs. The Company has received a non-binding commitment from Polo, whereby Polo has confirmed its willingness to enter into an agreement to increase the Polo Loan Facility by an additional GBP1,200,000 from the end of January 2020 should alternative financing not be secured by then (the "Agreed Facility Increase") which, at the Group's current cash burn levels, would provide sufficient financing for at least the following 12 months.

The Directors also note that, under the terms of the existing Polo Loan Facility, repayment can be requested upon 90 days' notice or, alternatively, the balance converted to shares at 11 pence per share at Polo's sole election. The Company does not currently have secured funding arrangements in place to cover the repayment of the existing Polo Loan Facility or further potential expenditure which would be needed to advance the Project, therefore, should the Agreed Facility Increase not materialise for any reason, or Polo requests repayment of the Polo Loan Facility, the Company would urgently need to secure additional capital in order to continue as a going concern, which may not be available on terms acceptable to the Board or on a workable timeframe.

However, the Directors are confident that the Agreed Facility Increase can be entered into by the end of January 2020 and a further announcement will be made as and when appropriate. As Polo is a substantial shareholder, holding 17.8% of the Company's issued share capital, entering into the Agreed Facility Increase documentation will constitute a related party transaction pursuant to Rule 13 of the AIM Rules for Companies.

[888icb] 25/11/2019 23:19

An RNS including GCM’s annual report released by GCM this evening states as one would expect Polo will provide working capital for the next 12 months. GCM expect to do a deal with a miner soon and then submit their proposal to the Government of Bangladesh.

[888icb] 22/11/2019 13:08

If he succeeds in getting the green light for GCM at Phulbari which is why he bought Polo then he will fill all our pockets. Incidentally GCM has had a good morning and is UP 16% on volume of 1.8 million.