Polo Resources Share Price (POL)

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Share Name Share Symbol Market Type Share ISIN Share Description
Polo Resources Limited LSE:POL London Ordinary Share VGG6844A1158 ORD NPV (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  -0.015 -0.92% 1.615 207,717 16:35:25
Bid Price Offer Price High Price Low Price Open Price
1.56 1.67 1.58 1.58 1.58
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining -3.30 -1.06 6
Last Trade Time Trade Type Trade Size Trade Price Currency
16:11:18 AT 50,000 1.58 GBX
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Polo Resources (POL) Latest News

Polo Resources News

Date Time Source Headline
31/7/202017:26UKREGPolo Resources Limited Notice Reconvening Adjourned AGM
31/7/202017:25UKREGPolo Resources Limited Resignation of Nominated Adviser
04/5/202018:06ALNCPolo Resources Investee Hibiscus Inks Supply And Collaboration Deal
04/5/202014:21ALNCFAlliance News Flash Headline
04/5/202014:20UKREGPolo Resources Limited HIBISCUS PETROLEUM -- INVESTMENT UPDATE
16/4/202011:40UKREGPolo Resources Limited Holding(s) in Company
16/4/202011:35UKREGPolo Resources Limited Holding(s) in Company
16/4/202011:30UKREGPolo Resources Limited Holding(s) in Company
15/4/202010:20UKREGGCM Resources PLC Holding(s) in Company
07/4/202017:30UKREGPolo Resources Limited Update re GCM and other matters
More Polo Resources News
Polo Resources Takeover Rumours

Polo Resources (POL) Discussions and Chat

Polo Resources Forums and Chat

Date Time Title Posts
06/8/202009:11POLO RESOURCES16,660
20/8/201912:09FORGIVE ME IF I AM BEING STUPID BUT ...........17
23/3/201619:00Ban cadbury-
05/3/201517:02get your snout in this trough.5
18/9/201411:29please god make jocks vote YES!-

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Polo Resources (POL) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-08-06 15:11:181.5850,000790.00AT
2020-08-06 15:10:201.5850,000790.00O
2020-08-06 14:17:151.5850,000787.50O
2020-08-06 08:29:411.5850,000787.50O
2020-08-06 08:26:351.587,717121.54O
View all Polo Resources trades in real-time

Polo Resources (POL) Top Chat Posts

DateSubject
06/8/2020
09:20		Polo Resources Daily Update: Polo Resources Limited is listed in the Mining sector of the London Stock Exchange with ticker POL. The last closing price for Polo Resources was 1.63p.
Polo Resources Limited has a 4 week average price of 1.55p and a 12 week average price of 1.55p.
The 1 year high share price is 4.20p while the 1 year low share price is currently 1.40p.
There are currently 356,156,946 shares in issue and the average daily traded volume is 1,012,823 shares. The market capitalisation of Polo Resources Limited is £5,751,934.68.
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03/8/2020
10:56		888icb: I do not think it is in the best interests of the company and its shareholders for Polo and Tang to be continually attacked on this bb. How does that help our investments by allowing it to be portrayed to potential investors and existing investors as a basket case. We will never get the share price to rise unless we bring in new investors. Polo has some good investments and continues to trade a a large discount to NAV which is as disappointing to me as I am sure it is to other investors. I have said many times that I do not think Tang is without his faults and in particular I think the level of remuneration he has taken from Polo is excessive and not justifiable in any event but particularly in view of the decline in the share price However Hibiscus is a good investment and it is not Tang’s fault that there has been a global oil price crisis. He has also put great efforts into bringing GCM to a successful conclusion for approval of Phulbari. If that succeeds Polo’s fortunes will be restored as will its share price. He has done a good job of taking it forward without having to raise cash. The consultants have been paid in shares so if they don’t succeed they have effectively been working for nothing. It demonstrates their confidence in success. The end game with GCM would appear to be close but has been slightly delayed due to COVID. I just don’t think it is in anyone’s best interest to try to remove Tang at this point in time and risk destabilising GCM. The people trying to remove him do not have a plan that has been disclosed to anyone as to what would happen if Tang was removed. We need people to be constructive in their comments not destructive.
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04/5/2020
15:05		888icb: I have said on a number of occasions that I think the remuneration Tang has taken and continues to take is a disgrace in any event but particularly in view of the decline in the share price. The shares have for most of the time been at a very large discount to NAV and he should have addressed that. I think the issue has been trying to get the green light for GCM which is obviously taking longer than anyone could imagine but is now closer than it’s ever been. So my concern with attempts to remove Tang now is would we be shooting ourselves in the foot in relation to GCM where Tang has been the driver and it’s been his reason for wanting Polo? If he can get the green light for GCM he will to a large part redeem himself as long as he delivers a big increase in Polo’s share price and/or a large dividend. So your contention that the large drop in the share price constitutes destruction of shareholder value is correct in relation to the share price ( even though the NAV has been much higher we can’t realise it as no dividends have been paid). Tang is responsible particularly as he has been paid so much. His remuneration should have been in shares so he was aligned with the shareholders.
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18/4/2020
14:15		spights: KUALA LUMPUR: Hibiscus Petroleum Bhd announced yesterday that it had secured London Stock Exchange’s AIM-listed Polo Resources Ltd as a new substantial shareholder, with an 8.4% stake. In a statement to Bursa Malaysia, Hibiscus said it had entered into a share placement agreement with Polo. Under the deal, Hibiscus issued 90 million new shares at 23.5 sen each to Polo, which invests in mining assets. “Although the oil and gas (O&G) industry is languishing in an environment of oversupply and low prices, Hibiscus is on track to generate positive cash flows and grow its high-quality asset base. We are very excited about the prospects of our investment in Hibiscus,” Polo executive chairman Datuk Michael Tang Vee Mun said. Tang, 42, qualified as a barrister in London and holds a Bachelor of Laws degree from the London School of Economics and Political Science. He was formerly with legal firm Shearn Delamore & Co from 2001 to 2004, and was the youngest partner ever in the firm’s history. In April 2006, he emerged as a substantial shareholder of QSR Brands Bhd — which owned KFC Holdings (M) Bhd — with 18 million shares or about a 7.5% stake, held via his vehicle, British Virgin Islands-registered Giganite Ltd. Tang upped his stake to as high as 29.7 million shares or 12.2% in December 2006, and ceased to be a substantial shareholder of QSR in June 2009, after slowly disposing of his stake. Market talk then was that a tussle was brewing between parties aligned to Datuk Soh Chee Wen and another faction close to Datuk Ishak Ismail for control of QSR’s cash cow, KFC Holdings. Tang was also involved in quite a few large deals, namely the acquisition of Nanyang Press Holdings Bhd by Huaren Holdings Sdn Bhd back in 2001, and the injection of Mid Valley Megamall held under Mid Valley City Sdn Bhd into Kriss Components Bhd (since renamed Kriss Assets Bhd) in 2003. Interestingly, he was also a shareholder of Single Malt Sdn Bhd, a company involved in the sale of single malt whisky. His partner in this business was Datuk Ling Hee Leong, son of former MCA chieftain Tun Dr Ling Liong Sik. Tang is also an independent non-executive director of Tropicana Corp Bhd; he was appointed to the board on Nov 13, 2009. More recently, he founded Mettiz Capital Ltd, an investment company with a 14.55% stake as at June 30, 2014 in Polo. Tang took over the helm of Polo back in mid-2013. In the financial year ended June 30, 2014 — the first financial year under his purview — the company’s loss widened to US$19.01 million from US$16.2 million the year before. According to Hibiscus’ statement, Polo invests in O&G, coal, gold, iron ore, copper and phosphate projects. The 90 million Hibiscus shares placed out to Polo forms a portion of Hibiscus’ private placement exercise. Hibiscus had earlier proposed to place out up to 326.94 million new shares or 25% of its enlarged issued and paid-up share capital. On Aug 6 this year, Hibiscus announced that it is acquiring a 50% stake in Shell UK Ltd, Shell EP Offshore Ventures Ltd, and Esso Exploration and Production UK Ltd in the Anasuria Cluster of O&G fields for US$52.5 million. Together with Ping Petroleum Ltd, which is acquiring the remaining 50% interest, it has jointly entered into conditional sale and purchase agreements for the said purchase. According to the joint statement, the Anasuria Cluster is located 175km east of Aberdeen in the UK Central North Sea, and comprises a 100% interest in three producing fields, namely Teal, Teal South and Guillemot A, and a 38.65% stake in the Cook oilfield, together with the related field facilities. The assets have a proven and producing resource base which provides a platform for further development. Hibiscus, which was originally an O&G special-purpose acquisition company, graduated from the category on May 16, 2012, after it completed its qualifying acquisition to buy a 35% stake in Lime Petroleum plc for RM165 million. Lime Petroleum is an early-exploration outfit and owns three oil exploration concessions in the Middle East. Subsequently, Hibiscus (fundamental: 1.55; valuation: 0.9) also managed to close several deals, which expanded its presence to as far as Norway. However, the independent O&G exploration and production company had been incurring losses for six consecutive quarters since the first quarter ended March 31, 2014, before it turned profitable in the first quarter ended Sept 30, 2015 on gains from foreign exchange due to the appreciation of the US dollar against the ringgit. Year to date, Hibiscus’ share price has plunged 72.41% to close at 24 sen yesterday, with a market capitalisation of RM240.3 million.
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09/4/2020
00:05		888icb: The point of using today’s mark to market is simply to demonstrate how undervalued Polo is on its current market cap but also the potential of GCM to make a massive difference to Polo’s value. Obviously I am fully aware of GCM’s past volatility but also that volatility occurs at times when investors sense the green light may be close. Polo’s RNS yesterday indicates that Tang, Polo and Dyani are very confident that GCM is close to the green light as there seems no other explanation for their actions. People have read the RNS and can form their own view. Today’s share price rise suggests a number of investors are inclined to that view. The coming days and weeks will be interesting as the prize for success is many multiples of today’s share price for both GCM and Polo. I am not impressed with the corporate governance at Polo but in reality there is little that can be done about it and you have to factor that in to whether you want to invest. My view is that Tang is important to GCM succeeding and if it does succeed the rewards will be at such a level they will more than compensate for the dilution.
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24/12/2019
13:50		alpal2: 888: If the value to Polo of Hibiscus is 7p then there is good reason to think NAV might drop to that. GCM and Celamin have been disasters for many years and [together with Nimini, Weatherly and Blackham] may well be valueless. Not sure if 'Humble Pie' will be on my diet in 2020 but, if I am wrong I shall be so pleased to eat it as I celebrate a higher POL share price.
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24/8/2019
15:58		shawzie: RNS Number : 2528G Polo Resources Limited 19 November 2015 19 Nov 2015 Polo Resources Limited ("Polo" or the "Company") polo increases DIrECT interest in blackham resources Polo Resources Limited (AIM: POL), the natural resources investment company with interests in gold, oil and gas, coal, iron ore, copper and phosphate, is pleased to announce an increase in its direct interest in Blackham Resources Limited ("Blackham") (ASX: BLK), an Australian gold exploration company listed on the Australian Stock Exchange. Polo has agreed to acquire 10,000,000 ordinary shares of Blackham for AUD$2.1 million (approximately GBP980,000) or AUD$0.21 per share, a 10.6 per cent discount from Blackham's closing share price on 18 November 2015, from Perfectus Management Ltd ("Perfectus") by way of issuing and allotting 25,016,484 new Polo ordinary shares at an agreed price of 3.92 pence per share to Perfectus, a 36.11 per cent premium to Polo's closing share price of 2.88p on 18 November 2015. Perfectus is a 49 per cent owned associate of Polo. Blackham had audited net assets of AUD$17.75 million as at 30 June 2015. The new shares will represent 8.28 per cent of Polo's enlarged issued share capital, bringing Perfectus' total holding in Polo to 10.92 per cent. Upon completion, Polo's undiluted interest in Blackham will increase from its current direct holding of 2.37 per cent to 7.36 per cent, resulting in a combined direct and indirect holding of 10.3 per cent, of which 8.8 per cent is attributable to Polo. Application will be made for the 25,016,484 new ordinary shares, which rank pari passu with Polo's existing issued ordinary shares, to be admitted to trading on AIM. Admission is expected to become effective on or around 24 November 2015, following which Polo's enlarged issued share capital will amount to 301,956,793 ordinary shares. The Company does not hold any ordinary shares in treasury. Datuk Michael Tang, Executive Chairman, commented: "Our increased interest in Blackham demonstrates confidence in the potential for this company to generate strong shareholder returns. "The recently released Pre-Feasibility Study for Blackham's Maltida Gold Project demonstrates robust economics and a relatively low capital requirement to reach production. Blackham's management team expects to complete the Definitive Feasibility Study by first Quarter 2016 and continues to add significant tonnages and grades to the gold inventory."
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24/8/2019
15:31		shawzie: Glavey - This could be your starting point :- RNS Number : 1654I Polo Resources Limited 28 May 2014 28 May 2014 Polo Resources Limited ("Polo" or the "Company") polo increases interest in blackham resources Polo Resources Limited (AIM: POL), the natural resources investment company with interests in gold, oil and gas, coal, iron ore and phosphate, is pleased to announce an agreement to increase its interest in Blackham Resources Limited ("Blackham") (ASX: BLK), an Australian gold exploration company listed on the Australian Stock Exchange. Polo has agreed to subscribe for 49 per cent of the enlarged capital of Perfectus Management Limited ("Perfectus"), which in turn owns 15,888,495 ordinary shares (or 15 per cent) of Blackham's issued fully paid ordinary share capital. In consideration the Company will pay AUD 1 million in cash and AUD 2 million by way of issuing and allotting 7,317,564 new ordinary shares at an agreed price of 15 pence per share to Perfectus, an 18 per cent premium to Polo's closing share price on 27 May 2014. The new shares will represent 2.64 per cent of Polo's enlarged issued share capital. Upon completion, Polo's undiluted interest in Blackham will increase from its current direct holding of 4.2 per cent to a combined direct and indirect holding of 11.85 per cent. In addition, the Company has the right to purchase a further 49 per cent of Perfectus within the next two years for AUD 3 million to be satisfied by the issue or transfer to the vendor of ordinary shares in Polo at an agreed price of 15 pence per share. Exercise of the option would increase Polo's interest in Blackham's current issued share capital to approximately 19.2 per cent. As part of the agreement a call option has also been placed on Polo's interest in Perfectus with an exercise price set at the higher of 49 per cent of the net asset value of Perfectus or AUD 4.5 million, representing a premium of at least 50 per cent to Polo's headline entry price. Application will be made for the 7,317,564 new ordinary shares, which rank pari passu with Polo's existing issued ordinary shares, to be admitted to trading on AIM. Admission is expected to become effective on, or around, 2 June 2014, following which Polo Resources' enlarged issued share capital will amount to 276,940,309 ordinary shares. Michael Tang, Executive Chairman, commented: "Our increased interest in Blackham demonstrates our confidence in the potential of its gold exploration assets and of its management to generate strong shareholder returns."
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11/4/2019
09:49		donkey15a: Received an e-mail from: sjohn@phronimoscap.com Dear Fellow Polo Resources Shareholder, Despite numerous attempts to resolve matters amicably, the Board and management of Polo Resources have not complied with our requests for: The shareholder register (which we have a statutory right to inspect under section 100 of the BVI Business Companies Act); An explanation regarding the appropriateness of Chairman Michael Tang’s ~$2 million annual total remuneration; and The time frame deemed necessary by the Board to evaluate any shareholder value unlocking proposals currently being contemplated. We firmly believe the underlying value in Polo is significantly higher than the current share price and that the stubborn adherence to the Board's current investment policy is detrimental to the interests of shareholders as a whole. The market’s lack of faith in the stated investment policy is evidenced by the greater than 70% discount of Polo’s share price to its Net Asset Value (“NAV”) per share. The persistently large discount of Polo’s share price to net asset value precludes shareholders from realizing anything remotely close to its fair value through open-market transactions. The status-quo, which has resulted in significant realized and unrealized losses for past and present shareholders of Polo, is unacceptable. We believe there will be broad shareholder support for a substantial cash distribution or share buyback if the proposal to return capital were put to a vote at a requisitioned meeting of the shareholders of Polo. Consequently, in preparation for requisitioning a shareholder meeting for a vote on our proposals (none of which are board control seeking) to unlock value via a significant buyback or distribution and improve corporate governance via the appointment of a shareholder representative to the Board, we'll need each concerned shareholder to provide us with confirmation of: the number of Polo Resources shares held and owned by you confirmation that you can exercise the voting rights on the above-mentioned shares (Yes Or No will suffice); and the name and address of the Broker and Nominee account in which the shares are actually held (if not in paper form). Please note that you will likely have to contact your account manager or liaison at your broker/custodian to obtain the name of the nominee/registered shareholder. Your written confirmation is critical to our efforts to requisition a shareholder meeting, so please make every effort to provide the requested information as soon as possible. If any aspect of this message is unclear, please feel free to call me. Thank you for your support. Best Regards, Sam John, CFA Managing Member Phronimos Capital, LLC sjohn@phronimoscap.com
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13/3/2019
21:35		st96dgx8: https://docs.google.com/a/phronimoscap.com/viewer?a=v&pid=sites&srcid=cGhyb25pbW9zY2FwLmNvbXx0M3N0aW4xfGd4OjU5YzI3MGQ1MGM2OGQ4Y2I Phronimos Urges Polo to Respond to Shareholder Requests and Concerns March 13, 2019—Subsequent to the publication of Phronimos Capital's (“Phronimos”) letter to the Board of Directors of Polo Resources (“Polo” or the “Company”), on February 13th, we have heard from numerous other Polo shareholders supportive of our cause and, consequently, the concerned shareholder group has grown significantly. We believe there will be broad shareholder support for a substantial cash distribution or share buyback if the proposal to return capital were put to a vote at a requisitioned meeting of the shareholders of Polo. Fellow Polo shareholders supportive of a significant share buyback or distribution are encouraged to contact us at sjohn@phronimoscap.com. Phronimos transmitted a follow-up letter to the Polo Board of Directors today. The full text of the letter can be found below or at: www.phronimoscap.com/news March 13, 2019 Polo Resources Limited Craigmuir Chambers, P O Box 71 Road Town, VG1110 British Virgin Islands To the Board of Directors: We are disappointed with Polo’s response to the proposals put forth in our letter dated January 28th, 2019. We write to you again so that the Board and the Company’s shareholders fully understand our viewpoint and the reasons for our concern. We firmly believe the underlying value in Polo is significantly higher than the current share price and that the stubborn adherence to the Board's current investment policy is detrimental to the interests of shareholders as a whole. The market’s lack of faith in the stated investment policy is evidenced by the greater than 70% discount of Polo’s share price to its Net Asset Value (“NAV”) per share. The persistently large discount of Polo’s share price to net asset value precludes shareholders from realizing anything remotely close to its fair value through open-market transactions. The status-quo, which has resulted in significant realized and unrealized losses for past and present shareholders of Polo, is unacceptable. Consequently, we request that the Board: 1. Provide fellow concerned shareholder Nicholas Greenwood with the register of members within five business days. As you are aware, Section 100 of the BVI Business Companies Act grants shareholders a statutory right to inspect and make copies of the register of members. The Company has denied Mr. Greenwood’s request to exercise his statutory right, citing “data privacy” concerns. The right to inspect shareholder lists for the purpose of communicating with shareholders with regards to a proper purpose, being in this case the exercise of shareholder rights in the form of gathering support for a potential requisition of a shareholder meeting, is enshrined in company law. We urge the Board to respect this right. 2. Provide an explanation and/or the remuneration committee minutes regarding the appropriateness of Chairman Michael Tang’s total compensation (including the 2018 share option grant of 20 million shares at a greater than 70% discount to NAV.) We note that Chairman Tang’s consulting fees of ~USD 1 million per year from Polo Resources and its investee company GCM Resources is many multiples above the norm. According to BDO’s AIM Directors Remuneration Report 2018, the median average total salary for CEOs of AIM constituents was approximately GBP 150,000. The QCA Remuneration Committee Guide for Small and Mid-Size Quoted Companies states: “Companies should communicate their decisions and supporting rationale clearly to shareholders and other stakeholders, most importantly through the report of the remuneration committee chairman. A company will face severe criticism if it rewards failure. Just as important is to ensure that mediocre performance is not rewarded as if it were good performance. It is fair that executives are offered the opportunity for higher levels of remuneration if they produce good results and excellent long-term sustainable value creation. Companies should avoid paying their executive directors more than is necessary to remunerate and motivate them. … No board should allow any executive director to be, or to consider himself or herself to be, irreplaceable: amongst other governance challenges that will inevitably arise, this may lead to demands for excessive remuneration.” Furthermore, we note that in 2018, the Company issued share based payments granting Chairman Tang the option to purchase 20,000,000 shares at a greater than 70% discount to NAV. We believe the valuation methodology chosen by the Company significantly understates the fair value of the grant. The choice of a particular valuation method to determine fair value is not “fair and reasonable” if it does not take into account information material to the value of the corporation. With regards to investment companies (like Polo) in particular, the Net Asset Value per share is of paramount importance in determining “fair value.” Had the NAV per share been used to determine the fair value of the share based payment, we calculate the value of the grant to be ~USD 2.9 million (or ~USD 1 million annually considering that the options vest in equal instalments over a three year period.) Summing up the 2018 consulting fees and the share based payments using NAV as the fair value in pricing the options, total annual compensation for Chairman Tang was approximately USD 2 million (or GBP 1.5 million.) Even if we were to exclude Chairman Tang’s ~USD 400,000 salary from Polo’s investee company, GCM Resources, his total annual compensation of approximately USD 1.6 million (or GBP 1.2 million) is significantly above the median average total remuneration of GBP 248,000 for CEOs of companies trading on the AIM (as cited in BDO’s AIM Directors Remuneration Report 2018). As we stated in our previous letter, we do not begrudge management teams being adequately compensated when they have helped to create shareholder value. However, Chairman Tang’s significantly above market compensation (approximately 5-6 times the median) stands in stark contrast to the historical returns of Polo’s shareholders, who have witnessed c.80% decline in the share price and received no dividends or return of capital since his appointment in May 2013. 3. Engage in a thoughtful dialogue regarding potential financing to help unlock value for shareholders. Subsequent to the publication of Phronimos’ letter to the Board of Directors on February 14th, we have heard from other Polo shareholders supportive of our proposals, and, consequently, the concerned shareholder group has grown significantly. Furthermore, we have also heard from other investors willing to provide non-dilutive financing to help unlock value for Polo shareholders. 4. Provide shareholders with the time frame deemed necessary by the Board to evaluate any shareholder value unlocking proposals currently being contemplated. We strongly urge the Board to respond to our requests and concerns without further delays. Sincerely, Sam John, CFA Managing Member of Phronimos Capital, LLC Investor Contact: Sam John (sjohn@phronimoscap.com/+1 (424) 781-7871/www.phronimoscap.com) SOURCE: Phronimos Capital, LLC Important Information This document sets out the views of Phronimos Capital, LLC (“Phronimos”). This document does not constitute a financial promotion of any kind by Phronimos or any affiliate, and the receipt of this document in no way renders you a client of Phronimos or any affiliate. The information contained in this document should not be construed as investment or tax advice, nor should it be construed as an invitation to purchase or sell any of your shares in Polo Resources Limited (“Polo” or the “Company”) (LON: POL). If you are in any doubt as to the action you should take, you should seek advice from an appropriately qualified independent financial or other adviser. The information contained in this document (which may include price or other data) is for illustrative purposes only and may not be comprehensive or up to date. In preparing this document, Phronimos has relied upon and assumed, without independent verification, the accuracy, reliability and completeness of all information available from public sources. No responsibility is accepted and no representations, undertakings or warranties are made or given, in either case expressly or impliedly, by Phronimos or any affiliate as to the reliability, accuracy, timeliness, completeness or fitness for a particular purpose of information contained in this document or as to the reasonableness of any assumptions on which any of the same is based. Additionally, neither Phronimos nor any affiliate accepts any direct or consequential liability for any errors in or reliance upon the contents of this document. Neither Phronimos nor any affiliate will be responsible for updating any information contained within this document and opinions and information contained herein are subject to change without notice. Certain figures included in this document have been subject to rounding adjustments. The release, publication or distribution of this document in jurisdictions other than the United Kingdom may be restricted under the laws of those jurisdictions and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Failure to comply with any such restrictions may constitute a violation of the securities laws of any such jurisdiction. Phronimos is not affiliated with Polo. However, as at the date of this document, clients of Phronimos hold a long position in shares of Polo. We acquired interests in the securities of the Company based on the belief that such securities, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to Phronimos, and the availability of securities of the Company at prices that would make the purchase or sale of such securities desirable, Phronimos may seek to increase or decrease its clients’ long position in the Company.
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20/2/2019
02:18		barnetpeter: 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.
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