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Kopiert aus iii, User-Beitrag vom 25.5.10, 13:04 25th May 2010 Analyst: Thomas Jones Email: thomas.jones@gecr.co.uk Tel: 0207 562 3371 Polo Resources – Divestment of Mongolian Assets, Narrower Focus on Coal and Uranium Plays: Buy with 8.3p Target. Key Data EPIC POL Share Price 3.875p Spread 3.8p - 3.95p Total no of Shares 2,346,645,623 Market Cap £ 90.9 million Net Cash US$23 million 12 Month Range 3.53p - 5.825p Market AIM Website www.poloresources.com Sector Resources Contact Neil Herbert, Managing Director Tel: +27 824 043 637 The announcement on the 24th May of a Memorandum of Understanding (MOU) on the sale of its remaining 50% stake in its Peabody-Polo Resources joint venture marks the end of Polo's involvement in its Mongolian coal and uranium assets. The divestment is consistent with Polo's renewed focus on the uranium and coal interests it holds in Extract Resources Limited, GCM Resources plc and Caledon Resources. Agreed with Peabody Energy Corporation and Winsway Coking Coal Holdings, the MOU will see Winsway taking over Polo's 50% stake in the existing joint venture (JV) with Peabody. Winsway will pay Polo a non-refundable deposit of $1.75 million by the 27th of May granting it exclusive rights until the 20th of July. Should Winsway wish to proceed with the transaction, $13.25 million in cash will be payable immediately and a further $20 million in cash or, under certain conditions, Winsway shares will be payable within 12 months. Polo will retain a 1% royalty on the coal sold from the current JV licences, capped at $50 million over 25 years. Polo's original JV with Peabody was signed in January 2009 as the largest private sector coal company acquired its 50% interest in the operation though the promise of up to $25.8 million in investment to develop Polo's Mongolian coal and uranium assets. On the 27th of April Polo announced a possible merger with Caledon Resources, a company in which Polo has long held an equity interest. The in principle agreement will see Polo issuing 11.4 Polo shares for every Caledon share and the creation of a coal-focused natural resources company with a geographically diversified portfolio of exploration, development and production assets. At 3.875p per Polo share, the acquisition values Caledon at £ 96 million. Polo is well funded with $23 million cash in the bank, has zero debt and reported a pre-tax profit of $6.8 million in the 6 months to 31st December 2009 after generating a net gain of $14.1 million on the sale of several investments in junior listed companies. Our valuation of Polo is derived from the market value of the company's Caledon, GCM and Extract investments as at 24th May 2010, the $35 million Winsway has bid for the Mongolian portfolio under the MOU and the company's net cash position. Adding these together and dividing by the 2,347 million shares in issue we derive a target price of 8.3p per share, and thus with the company currently trading at a clear discount to net asset value, we rate Polo a buy. |
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| aus der Diskussion: | Polo: Kohle und Uran |
| Autor (Datum des Eintrages): | updax (26.05.10 08:09:06) |
| Beitrag: | 125 von 212 (ID:39583010) |
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