Polo Resources Limited (AIM and TSX: POL) is a globally focused natural resources and mine development investment company. We select, acquire and manage substantial investments in companies and projects with strong value enhancement potential and attractive growth prospects, and utilise this ability to deliver value-adding returns.
Polo Resources Price and Volume
Previous Close: 23.625p* (real time prices at ADVFN) Previous Range:23.15 - 24.50* Previous Volume:410689 shares (up on average)* Trading:above the 50 day M.A. (2.8322) & above the 200 day M.A. (2.8483)*
£200 million for Signet always looked like a wild punt. I would be ecstatic with half of that, which would represent a decent profit on the various Signet injections. Not many IPOs of junior oil companies raise nine figures in pounds. £200 million was an unattributed quote by an unnamed broker and a number of things need to be remembered.
We haven't seen the 3D on Mnazi Bay which might support a decent IPO, if Jodari or Chaza do clearly extend into Hydrotanz' acreage. (I doubt the broker with that opinion has seen the 3D either, but perhaps he has ....)
Also, regarding Namibia: HRT's announcement, of drilling success concerns results of the first drill of a three-drill campaign starting in Walvis Bay, four hundred miles north of Signet acreage, The IPO will surely wait for the Oranje Basin drill (the third drill scheduled by HRT) even though Signet is not directly involved in the campaign. Success at Walvis Bay means the rig will be delayed and there won't be results from Oranje Basin for months.
On the face of it we shouldn't expect an IPO for months, unless they are ready to prematurely disclose confidential seismic leads to the public. But with SD ...
So it it interesting that an astute investor has been prepared to pay 40 pence a Polo share to get in early. The remark about trebling Polo's sp if there is a successful IPO in Hong Kong is just about consistent with the $200 million valuation because it would raise Signet from a holding-value of £28 million (Spight, . 15/05) to £96 million. A £68 million uplift is equal to present Market Value so the sp should at least double. I have no doubts at all about the value implicit in Nimini, that could be another £50-£100 million in the right market.
Finally, I am mystified by the GCM angle. Michael Tang seems to want a strategic holding in GCM ahead of clearing the political obstacles but why not deal as an outsider directly with Polo for their 30%? Why not sound out what Polo wanted, and bid that to the market? By Wordbodger
I doubt if he would let the company be bought out for a pittance.
Totally agree. I see the recent purchase as being "allowed" to go thru as it is a good deal for both parties. In the longer term the 40P will be a snip. We just need to sit tight.
For those that trade (I rarely do as my timing is invariably rubbish), it would appear that the SP is beginning to follow a fairly simple pattern. I trust that we will be above 27 shortly before any pull back again. I am holding and trying to accumulate. By andyb28m
Hi OC. Commiserations on your position for now. I actually think the situation will resolve itself pretty smartish. I am adding considerably to my long-standing position here. I have always appreciated with Polo that from time to time ordinary private guys like me get a pretty nice pay-out along the way. I think that what we have developing here is at least as good as that as I think the recent RNS' suggest that there are going to be some pretty hefty unlocking of value in the forseeable future. I am trusting that we will be moving North again and our next low will be some way above the 23 level. Today's action tends to suggest this, although it is a bit early to be sure. Best wishes. By andyb28m
Is it possible that Signet is not worth anything like £200 million? Why else would Dattels sell for "only" 40p if he thought the sp could treble on Signet news? Surely, all he'd need to do would be to wait.. By dreamerr
I have no shares in Polo at ATM but its a solid company with solid assets, why would Tang pay 40p a Share for Dattels shares unless he thought it was a good investment, the thing I would probably watch is he trying to gain control and then offer the minority shareholders a stupid price to sell ! Not sure he can do that, but that would be the only reason I can see for Tang to pay over the SP if he thought Polo was overvalued, He bought Dattels shares to avoid any problems in purchasing them in the Market, as if he started buying those shares piecemeal then the Market would react and he could end up paying more than 40 pence !
LB By Leicesterboy
There was recent comment in press reports that Polo's 48% interest in Signet could be worth £200 million.There has also been comment from Polo that Signets interest in Namibia is their most favoured prospect. Todays announcement by HRT that they have discovered oilsource rock and high quality light oil(admittedly in non commercial quantities) on their first Namibian drill has derisked the rest of Namibia and should have increased the value of Signet.
Lets hope we see this is reflected in Polo's sp and in any upcoming IPO of Signet. If that level of value can be unlocked from Signet then Polo could triple on that alone although at the moment 30p would be good! By ICB888
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I was in at the top of the last spike.
So am holding.
Lets see where it goes.
This one has a history of sudden sharp rises.
If there is a spin off of signet / GCM and a special divi from the sale, didn't want to be caught out.
They are an investment trust, not a miner, so have a habit and history of sharing the spoils with shareholders
Gold -- Nimini Holdings Limited -- Sierra Leone -- 90% equity interest -- 2 projects
Nimini with nearly 800,000 ozs high grade gold reserves Indicated and inferred,
Komahun Gold Project nearly 550,000 ozs high grade gold reserves -- PFS to be completed any time now
Oil & Gas -- Signet Petroleum Limited -- Benin, Burundi, Namibia and Tanzania -- 48.21% equity interest -- Planning an IPO spin off and Singapore listing very soon
Coal -- GCM Resources plc -- in Bangladesh -- 29.7% of GCM owened by POL -- GCM sitting on a huge gold reserve, needs Parliament approval for go ahead. The word is POL's largest shareholder Michael Tang has contacts in Bangladesh to ease and hasten the process
Iron Ore -- Ironstone Resources Limited -- In Canada -- 15.7% equity interest -- Not imminent
Estimated Nav 36.32 p
Hope this helps
thanks for the heads up, POLO have been on the peripheries of my radar since before the consolidation, but tbh I haven't really looked that much in to the company.
I am doing a day's worth of research in 20 minutes at the moment (lol!), so if you are able to furnish me with some salient pointers here, their investments and what holders here are in expectation of, in a paragraph or two, I would be most grateful ;)