[POL] Results look impressive. Forward statements could lead new investors onto a likely winner. Embarking on an acquisition trail, the first of many I suspect.http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10709256
Financial and Operational Highlights 12 months to 30th June 2010
· As at 8 November, the Company's cash balances were US$67 million.
· Net profit for the year ended 30 June 2010 was US$29 million.
· Net asset value per share at 8 November 2010 is 6.86 pence per share.
· Successful listing in the Toronto Stock Exchange under trading Symbol 'POL'.
· Sale of interest in Mongolian Joint Venture for cash consideration of US$35 million, realising a net gain over book value of US$19 million. In addition the company will continue to retain a net 0.5 per cent royalty for coal sold from licences previously held in the JV agreement.
· Subsequent to the 30 June year end Polo disposed of its entire interest of 22,550,849 shares in Extract Resources Limited for US$142 million and realising a gain on disposal of US$62.7 million. The Board utilised proceeds of the Extract Shares to fund a special dividend to shareholders of 3 pence per share for a total of US$112 million.
· Strategic interest of 27.64 per cent in Caledon Resources plc currently valued at US$106.6 million*.
· Possible cash acquisition of Caledon Resources plc by Guangdong Rising (Australia) Pty Limited announced on 8 November 2010 for 112 pence per share would value Polo's equity interest at US$121.6 million.
· Strategic interest of 29.82 per cent in GCM Resources plc currently valued at US$60.7 million*.
* Based on closing prices on 8 November 2010
[POL] Announces that on December 02, 2010 the Company purchased 25,000,000 of its own ordinary shares at a price of 5.205 pence per share. The shares were purchased in accordance with the Company's share repurchase programme as previously announced on 5 August 2010 and these shares will be cancelled in due course. Following the above changes, the Company's issued share capital consists of 2,364,678,955 ordinary shares of no par value each. None of these ordinary shares are held in Treasury.
Net Asset Value ("NAV") per share as at 31 December 2010.
NAV per ordinary share: 7.06 pence1-5
The Company's issued share capital consists of 2,364,678,955 ordinary shares of no par value each. None of these ordinary shares are held in Treasury. The fully diluted share capital of the Company consists of 2,380,678,955 ordinary shares.
The NAV at 31st December 2010 would be restated to 7.43 pence on the basis that the indicated offer price of £1.12p by Guangdong Rising (GRAM) had become unconditional
announce that it has signed a letter of intent (the "Letter of Intent") with Earth Coal Resources Limited ("EarthCoal"), to procure coking coal projects in Indonesia.
Under the terms of the Letter of Intent, Polo will advance up to US$3 million in the form of a convertible loan (the "Convertible Loan") to a newly incorporated Indonesian company ("Polo IndoCoal") to fund due diligence and related project development costs in Indonesia, which is led by Polo's partner in Indonesia, EarthCoal. The Convertible Loan is available to be drawn down in several tranches (each tranche requiring the approval of Polo) and the outstanding loan sum drawn down at any time (the "Outstanding Loan Sum") shall bear no interest. Save with the consent of Polo, the undrawn balance of the Loan shall cease to be available from 31 December 2011 with the drawn down balance at that time either being converted or, if no progress has been made, written off. The Convertible Loan can be drawn down immediately by Polo IndoCoal, and is repayable only with the consent in writing of Polo. On electing to convert the Outstanding Loan Sum to shares in Polo IndoCoal (which election Polo can make at any time after draw-down of the first tranche of the loan), regardless of how much of the US$3 million has be drawn down, the Outstanding Loan Sum shall be converted into new shares of Polo IndoCoal representing 60 per cent. of its issued shares.
EarthCoal is a natural resource investment company focused on investing in coking coal assets and projects in Indonesia with outstanding fundamentals and growth prospects. EarthCoal's leadership team is currently reviewing a number of potential coking coal investment opportunities in Indonesia, in respect of which the Letter of Intent has granted to Polo IndoCoal a right of first refusal should EarthCoal wish to pursue any such project further following completion of their due diligence.
At the date of the Letter of Intent, Polo IndoCoal's shareholders comprise the geology, corporate finance and management team of Polo IndoCoal as agreed by the parties (who shall together in aggregate be interested in 50 per cent. of the issued share capital of Polo IndoCoal) and EarthCoal and its nominees who are also interested in, in aggregate, 50 per cent. of the issued share capital of Polo IndoCoal. At Polo's election, the Convertible Loan can be converted into a 60 per cent. stake in Polo IndoCoal on a fully diluted basis.
Polo IndoCoal shall operate under a management services agreement between the Company and EarthCoal.
Mr. John Benitz, a director of EarthCoal has been appointed as Chairman of Polo IndoCoal. Mr. Peter Ong, a director of EarthCoal, has been appointed as Deputy Chairman and President Director of Polo IndoCoal. Mr. Stephen Dattels and Mr. Neil Herbert shall join the board, as Co-Chairman and Executive Vice-President respectively.
Neil Herbert, Executive Co-Chairman and Managing Director of Polo Resources, said:
"We are very pleased to have reached agreement with EarthCoal regarding the joint appraisal, acquisition and development of coking coal projects in Indonesia. We see EarthCoal as an important strategic partner for Poloand any investment in Indonesia positions the company well given the growing demand for energy in Asia.
"We look forward to working with EarthCoal."
[POL] Corporate numbers statement released. Huge numbers being banded about, awash with cash and major interests..
Company has purchased 25,000,000 of its own ordinary shares at an average price of 5.64 pence per share. The shares were purchased in accordance with the Company's share repurchase programme as previously announced on 5 August 2010 and these shares will be cancelled in due course.
Following the above changes, the Company's issued share capital consists of 2,339,678,955 ordinary shares of no par value each. None of these ordinary shares are held in Treasury.
Therefore the total number of voting rights in the Company is 2,339,678,955. This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.
The fully diluted share capital of the Company now consists of 2,422,178,955 ordinary shares.
[POL] Waas notified on 4 May 2011 that following a purchase on the same day of 2,000,000 ordinary shares of no par value ("Ordinary Shares") of the Company at a price of 5.75 pence per share, Neil L. Herbert, Executive Co-Chairman and Managing Director of the Company, is interested in a total of 81,385,625 Ordinary Shares, representing approximately 3.48 per cent. of the issued ordinary share capital of the Company.
These continuing the theme trades by the Directors of [POL] are extremely interesting, particularly those recent buys by Chairman Stephen Dattels, he that turned Barrick Gold into a minor £5mns tiddler into a near £2bn collosus,and continuing with his exploits in the likes of Caledon Resources, Oriel Resources, Regent Pacific Group and last but not least GCM Resources. My opinion is to follow the pack here and follow the wise director buying spree.
Tangible book value is estimated at £204mns and with an issued share cap of 2.3bns shares equates to 8.7p/shares a massive 50% upside from current share price. A bargain of a share if ever there was one !
[POL] I have been in the market again to buy up a further tranch of shares as I believe [POL] to be significantly undervalued, not only on current prospects, but on future perspectives. With a current upside of at least 50% it is only a matter of time before this is recognised by the Corporate good and powerful. The main directors have been in the market snapping up the cheaply rated stock. GL
Announcement published with respect to an offer by Guangdong Rising (Australia) Pty Ltd ("GRAM") to acquire 100% of the issued shares of Caledon. Polo holds an interest of approximately 29.8% in the issued share capital of Caledon in addition to £2.5 million of Caledon's 8.5% unsecured Convertible Loan Notes issued in 2010. Should GRAM complete its proposed acquisition of Caledon at the announced price of 112p per share, Polo will receive total proceeds on disposal of its interest of approximately £100 million equivalent to approximately 4.36p per issued Polo share.Neil Herbert, Executive Co-Chairman and Managing Director of Polo said:"The disposal of our interest in Caledon will provide the company with £100 million in additional liquidity. Subject to and upon completion of the sale and receipt of cash proceeds, the Board of Polo intends to utilise part of the proceeds to fund a special dividend to shareholders of 1p per share.
"Polo's strategy is to identify assets, listed and private, which have the potential to increase shareholder value. "We are in the strong position of having cash to build on our portfolio of investments which includes; coal, iron ore and gold projects, which have the potential to deliver superior returns to shareholders."Investment update:
Estimated proceeds from the sale of Caledon
Non Listed Investments
Evolution Securities replaces Cannacord as Nomad. This is expected to bring a more dynamic and aggressive approach to Corporeate strategy, the new broom will waste no time in making an impact. Medium to long term profile suggests some dynamic shareholder value upside!
[POL]One to watch: By Bryan Johnston of Brewin Dolphin.
The directors of Polo Resources have been demonstrating their confidence in the group's prospects of late by some relatively substantial share purchases.
Certainly, there appears a reasonably persuasive argument for following suit, the shares trading at quite a significant discount to the company's 7p net asset value. In addition, the company has a near 30 per cent stake in Caledon Resources, which is the subject of a bid at 112p a share from the Chinese group, Guangdong Rising. This deal is conditional on approval by the Chinese authorities but, if it is consummated, Polo could net over £93 million, which compares with a market capitalisation of about £134m and the current cash equivalent balance sheet holding of a little under £30m.
Polo has other interesting holdings including a 24 per cent stake in Asian coal miner GCM Resources, and 10.4 per cent of the issued and outstanding shares of Ironstone, a private Canadian company that owns the Clear Hills iron ore and vanaduim project in Alberta. For those of an adventurous bent, Polo Resources could be worth a look.
Scotsman says BUY
[POL] Share price is coming under pressure and is resisting substantial sustained buying over several sessions, my opinion is the share price will rise above the 6p resistance and then continue to around 15p medium term. Although there are over a billion shares issued, that should not prevent the market cap from increasing here on in on exposure to increasing resource potential. With director confidence growing and their continued willingness to support the co by buying stock. Certainly one to look at on prospects.
[POL]Announced recently that it has entered into an agreement (the "Agreement") with TSX listed Axmin Inc whereby Polo will acquire a 51% interest in a new company which will own AXMIN's Sierra Leone Gold assets (Nimini East and West and Matotoka Exploration Licences - the, for a cash consideration of US$7.5 million which will be payable on completion. Axmin will retain a 49% interest in the new company. Completion of the transaction is subject to technical and legal due diligence to be undertaken by Polo which shall be completed within 60 days from the 1st August 2011. At completion, Polo and Axmin intend to enter into a shareholders agreement to govern their joint venture.Polo, under the terms of the Agreement, will solely fund the first US$2 million of the project exploration expenditures after which both parties are to jointly fund exploration expenditures on a pro rata basis. Parties who elect not to participate will face dilution of their respective interest in the project.Information on the Project: The Prospect Area is situated in the central-west Kono region of Sierra Leone, some 330 km east of the capital Freetown. The principal asset is the Komahun Gold Prospect ("Komahun") which is located within the Nimini Hills West Licence. Komahun has an Indicated Mineral Resource of 370,000 tonnes grading 9.1 g/t Au (110,000 ounces) and an Inferred Mineral Resource of 3.1 million tonnes grading 4.3 g/t Au (435,000 ounces). The in-situ mineral resource, estimated at a plus 1.8 g/t Au cutoff, was undertaken by SRK using robust three dimensional interpretations with grade interpolation carried out using Ordinary Kriging. The cut-off grade reflects modelling parameters suitable for underground mining. The remaining licences in Sierra Leone, being Nimini Hills East and Matotoka are both at an early stage of exploration. In March 2009, Axmin announced the results of a Preliminary Economic Assessment and Scoping Study (the "Scoping Study") for Komahun. The Scoping Study demonstrated that Komahun has potential for development as an underground gold mine with target production levels of about 50,000 ounces per annum, with a present estimated 6 year mine life. In addition, economics for the Prospect could be substantially enhanced by future exploration success that is targeting the immediate vertical extensions to the ore body which remain open beyond the currently investigated depth of 350 metres beneath surface.
In December 2010, the Matotoka Exploration Licence was renewed for a period of two years, until December 2012. Additionally, in April 2011, the Nimini Hills East and West Exploration Licences were granted for a two year period, until March 2013.
[POL] Polo to increase special dividend to 2p per share. upon completion of disposal of interest in Caledon Resources Plc. The Board of Directors of Polo Resources Limited (AIM and TSX: POL) is pleased to announce that it has resolved to increase its proposed 2011 special dividend from 1p to 2p per share (gross), upon the completion of the disposal of its interest in Caledon Resources plc ("Caledon"), previously announced on 23 June 2011.
Neil Herbert, Executive Co-Chairman and Managing Director of Polo said:
"We are delighted to announce the doubling of our proposed special dividend payment to 2p per share as part of our commitment to return value to our shareholders. This follows a special dividend of 3p per share in 2010 following the disposal of Polo's interest in Extract Resources Limited. These successful investments demonstrate management's ability to identify growth opportunities and convert these into realised financial gains for shareholders. "Our ethos is to invest in projects where we can add value, irrespective of geographic location or commodity focus. We are in the enviable position of having enough cash to build on our current portfolio of investments and are actively reviewing attractive new investment opportunities both in mining, oil and gas."
Announces today that following a review by its Independent Investment Committee, the Company has retained advisers to evaluate strategic options with respect to its shareholding in GCM Resources plc ("GCM").
As at today's date, Polo holds 15,220,985 ordinary shares in GCM, representing approximately 29.82% of the issued ordinary share capital of GCM.
Neil Herbert, Executive Co-Chairman and Managing Director of Polo said:
"Polo Resources is currently evaluating options with its advisers with respect to its stake in GCM. Polo is of the view that there are partnership opportunities which it can negotiate with strategic parties who would be critical to the development of the world class Phulbari coal deposit through participation on an appropriate basis with Polo. Polo remains convinced of the significant value potential in GCM and through this process will seek to unlock such value over and above that currently being assigned to GCM by the stock market."
Financial and Operational Highlights to 30 June 2011.
Cash balance of US$37.5 million at 31 August 2011 (30 June 2010: US$37.8 million).Net asset value per share of GBP 6.56 pence at 31 August 2011. Net profit for the year ended 30 June 2011 of US$65.2 million (30 June 2010: US$28.8 million).[POL] completed the sale of its stake in Extract Resources Limited:completed the disposal of its uranium interests, including Extract Resources, for US$142 million and realised a net gain on disposal of US$62.7 million. The Board utilised part of the proceeds of the disposal to fund a special dividend to shareholders of three pence per share for a total of US$113.9 million.US$7.8 million was devoted to the share buy-back programme and a total of 168.4 million shares were cancelled from the Company's share capital during the period.On 12 October 2010, Polo received the US$20 million deferred cash consideration from Winsway Coking Coal Holdings Ltd to conclude the disposal of Polo's 50 per cent interest in the Peabody-Polo Resources Mongolian coal joint venture.Interest in GCM Resources plc [GCM] valued at US$25.9 million at 31 August 2011. Polo holds 29.82 per cent of the company. Subsequent to the financial year end, the interest in Caledon Resources plc [CDN] is being realised:Guangdong Rising (Australia) Pty Ltd ("GRAM") confirmed acquisition of Caledon in an all cash offer of 112 pence per share.[POL] held an interest of approximately 29.8 per cent in the issued share capital of Caledon in addition to £2.5 million of Caledon's 8.5% unsecured Convertible Loan Notes issued in 2010. [POL] sold 8.8 million shares for £9.75 million following announcement of the bid. [POL] will receive total gross proceeds on the disposal of its remaining interest of approximately £90.15 million. The Board of [POL] intends to utilise part of the proceeds to fund a special dividend to shareholders of two pence per share, upon completion of the sale of Caledon and receipt of funds.
[POL] Interesting Corporate update potentially adding to shareholder value upside!