reply from Polo30 Jul 2015 18:23
Thank you very much for your email. We can understand your frustrations.
As you are no doubt aware, the company is operating under very challenging circumstances with multiple factors at play, ranging from the steep decline in commodity prices, political instability and health epidemic and global currency and stock market fluctuations. Following this, the market valuations of Polo and other mining public companies have suffered significant declines.
The Financial Times just reported that the world’s big energy groups have shelved $200 billion of spending in an urgent round of cost cutting following the slump in oil prices. The sell-off in oil has been matched by a broader slump in copper, gold and other raw materials.
Gold plunged to the lowest level in more than five years, whilst copper is at its lowest in six years. The Bloomberg Commodities Index is at a six-year low over concerns of weaker Chinese demands and rising supplies across the board.
The Board and management of Polo share your concerns. Our Executive Chairman’s investment cost in Polo shares was at a significant premium to the highest price achieved since January 2013. He is therefore extremely exasperated.
It is unfortunate that the market is in one of its bear phases, where any news is bearish news. Nevertheless, the management of Polo has been working tirelessly in the current difficult environment and is cautiously optimistic of driving higher valuations for Polo.
The Board did consider whether a portion of the funds that are held by Polo ought to be distributed to shareholders. It was felt that this should not be implemented as it would curtail Polo’s future as an investing company. Polo previously distributed substantial dividends following successful exits. Since then, Polo has yet to realise any gain from its current portfolio. Please be assured that the Board will consider this from time to time.
Thank you again for contacting the company and for your continued support over the years.
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