Introduction

Polo aims to become a major international coal mining and exploration group with additional interests in uranium and iron ore. The Company is focused on acquiring and developing interests in projects that are strategically located to serve the increasing global demand for coal, in particular to feed the robust demand of Asia.

Polo holds a diversified portfolio of coal and uranium licences in Mongolia. The geology of Mongolia is highly prospective for significant mineral deposits; however, the countrys resources have been vastly under-explored and under-developed. Polo has specifically targeted areas of significant known coal resources that are near the necessary infrastructure to export coal into the growing energy markets of adjacent China and Russia.

Polos strategy in Mongolia is to fast track into development the Union Coal Project and the Ereen Coal Project in 2008. Polo is targeting total production of 1 Mt of coal per annum commencing in the fourth quarter of 2008. Polo also plans to define 1 Bt of high quality coal resources by 2010.

Polo also holds a strategic interest in GCM Resources plc, an AIM listed (ticker code: GCM) resource development company with a wholly owned subsidiary operating in Bangladesh and investments in South Africa. GCM Resources plc is developing a coal mine and power plant project in Bangladesh, the Phulbari Project.

Market cap: 190.408m

Major Shareholders

The Company's issued share capital consists of 1,170,622,425 Ordinary Shares of no par value.

The Company does not hold any Ordinary Shares in Treasury.

As of 17 March 2008 the Company is aware of the following persons who hold, directly or indirectly, voting rights representing 3% or more of the issued share capital of the Company to which voting rights are attached:

Name
Number of Ordinary Shares
Percentage of issued share capital

RAB Capital Plc
97,240,425
8.31%

TPG-Axon Partners (Offshore) Ltd
71,907,000
6.14%

Capital Research and Management Company
65,740,000
5.62%

Angstrom Capital Limited
60,000,000
5.13%

Chiropo Company SA
60,000,000
5.13%

Libra Advisors, LLC*
45,450,000
3.88%

Perella Weinberg Partners Xerion Master Fund Ltd
41,960,000
3.58%

TPG-Axon Capital
37,043,000
3.16%

Seamans Capital Management Ltd.
36,870,000
3.15%

* Note: Libra Advisors LLC is the investment manager of two funds, Libra Fund LP (holding 36,760,000 Ordinary Shares) and Libra Offshore Ltd (holding 8,690,000 Ordinary Shares).

Polo Resources Limited
('Polo' or 'the Company')




Polo Resources (PRL), the AIM listed mining company with uranium and coal interests in Africa, Australia, Europe and Asia, is pleased to announce that West Australian Metals Limited (ASX: WME) in which Polo has an 11.1% interest plans to embark on an extensive drilling campaign at its 80%-owned Marenica Uranium Project in Namibia, in August 2009.




Following WME's recent A$9.9 million fund raising it is setting aside a A$5 million budget to be spent over the next six months. An initial 5,000-metre RC drill programme is designed to infill areas of wide-spaced drilling completed in 2008 to reduce the spacing from 320m by 160m to 120m by 80m. Representatives from SRK Consulting will be on on site to supervise QA/QC procedures. The new campaign will also include a 100-hole exploration program to the west of the known resource. Ground radiometrics and mapping have recently been completed in this area, which will be tested for additional secondary uranium resources.




A further 5,000m is allocated to exploration for primary mineralisation within and north of the Marenica dome following on from successful results achieved in exploration diamond drilling. The company is in the process of obtaining drill clearances, with drilling planned to start in August. Following completion of this exploration programme WME intends to begin a scoping study later this year.




Neil Herbert, Managing Director of Polo Resources, said:




'We look forward to the results from this extensive drill programme. WME has an 80% interest in Marenica and has already announced a JORC compliant Inferred Resource of 111 million tonnes at 140ppm U3O8 for 34 million pounds of contained U3O8 in near-surface palaeochannels, similar to that found at the Trekkopje uranium mine currently being brought to production by Areva which is located within 40kms and which is expected to become one of the world's 10 largest uranium mines by 2011.'
cyril

Speculative Buy rating from Growth Company Investor

http://www.growthcompany.co.uk/recommendations/1061382/polo-resources.thtml

Polo Resources (AIM:PRL), the AIM listing company with uranium and coal interests in Africa, Australia, Europe and Asia, announces that it has disposed of 8,221,893 ordinary shares in Berkeley Resources Ltd ('Berkeley') for A$8,484,276.41, representing 6.66 per cent of Berkeley's issued share capital. Following this disposal Polo has an interest in 10,388,181 ordinary shares in Berkeley as well as options over a further 5,670,037 ordinary shares.




The funds received from the disposal will be used to meet Polo's liquidity requirements and provide resources to focus on other value adding uranium opportunities.




Neil Herbert, Managing Director of Polo Resources, said: 'Polo remains supportive of Berkeley Resources with the substantial resource base at the Salamanca Regional Uranium Project well placed to deliver into the forecast uranium production shortfall for a relatively small capital investment.'




Polo does not presently anticipate making any further sales of Berkeley shares.
cyril

PRL taking up their full entitlement from Extract fund raising, in addition they have expressed a willingness to buy shares from the fund raising that others will forego. Appears to be no shortage of funds at PRL. I'm sure these will make a mint one day. Sorry about that.
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SP progressing well, hope that's not the kod.
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Re rns---that looks like a useful chunk of coal.
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sp responding. I believe this has the makings of a substantial co in the future, with interests in several projects.
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Arather tardy annoucement regarding R/South.

Polo Resources (PRL), the AIM listed mining company with uranium and coal interests in Africa, Australia, Europe and Asia, is pleased to report that Extract Resources Limited ('Extract'), in which Polo holds 21.4 million shares (ASX:EXT A$9.29/share*), has announced confirmation of a new zone of uranium at Rossing South.

But what is interesting is the value,
21.4m *A$9.8 which is the present EXT SP = 119.5
This against a M/Cap of 105.5
add to this CDN +GCM holding along with assets in Mongolia gives a very ubderated company.
cyril

Just got into these after seeing 3 directors investing heavily into this stock...
RNS's just released

1.4m and 3m director buys @ 5p
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for info....sat in my inbox this one but may be pertinant
Canaccord Adams on Polo Resources*
Canaccord Adams maintained its "buy" recommendation on Polo Resources* (PRL) following the company's final results. The broker's note read:
Our view
We consider that the statement was in line with expectations.
Although the company reported a large loss, the company is effectively an investment company and therefore its working capital position and the value of its investments are considered to be of the most significance.


Key features
Polo released results for the year to June 09, on Friday 16 October, after the close of the market.
The company reported a loss of US$63 million, or 3.2p/share, after a writedown of US$44 million on its Mongolian coal assets.
Working capital at 14 October 2009 was reported to be US$17 million and the value of its listed investments US$302 million.
The statement indicates that the company has continued to build its stake in Extract Resources (EXT : ASX | not rated), which now stands at 22.4 million shares, the value of which is equivalent to 4.3p/share, accounting for 53% of the companys NAV or 86% of its share price.
The company states that it intends to make further strategic value-adding investments in advanced staged commodity projects.


Valuation
The companys current NAV is 8.02p per fully diluted, in-the-money share.
At a price of 5.0p/share, it is currently trading at a discount of 38% to its NAV.

for info....sat in my inbox this one but may be pertinant
Canaccord Adams on Polo Resources*
Canaccord Adams maintained its "buy" recommendation on Polo Resources* (PRL) following the company's final results. The broker's note read:
Our view
We consider that the statement was in line with expectations.
Although the company reported a large loss, the company is effectively an investment company and therefore its working capital position and the value of its investments are considered to be of the most significance.


Key features
Polo released results for the year to June 09, on Friday 16 October, after the close of the market.
The company reported a loss of US$63 million, or 3.2p/share, after a writedown of US$44 million on its Mongolian coal assets.
Working capital at 14 October 2009 was reported to be US$17 million and the value of its listed investments US$302 million.
The statement indicates that the company has continued to build its stake in Extract Resources (EXT : ASX | not rated), which now stands at 22.4 million shares, the value of which is equivalent to 4.3p/share, accounting for 53% of the companys NAV or 86% of its share price.
The company states that it intends to make further strategic value-adding investments in advanced staged commodity projects.


Valuation
The companys current NAV is 8.02p per fully diluted, in-the-money share.
At a price of 5.0p/share, it is currently trading at a discount of 38% to its NAV.

More good news from Extract Resources ( PRL has 9% stake)
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Lots of comments here, from a few posters, but I'm concerned that the Co. Polo (PRL) - is listed on AIM, yet I can't find it in (my copy of) REFS, furthermore it is registered in the British Virgin Islands, not known for its ship-tight regulation and has a Registrar in Jersey ( DYOR).

Has anyone (here), been to an AGM - where/when was it?
What was your impression of the meeting . . . . ?

Anyone else got concerns...?

Hangon,theirs a chance for anyone to attend this years AGM on the 18th Nov,its in Paris,it would make a nice break,mixing business with pleasure?
Todays news informing us of an increased stake(22.48m) in EXT amounts to a value of 110m against a M/Cap of just 105m,with a lot more for free.
cyril

hangon.

No concerns here,just look at our holdings in EXT,CDN,GCM,all potential takeover targets in the near future,plus Mongolian assets/Peabody deal.

By the way if you wish to attend the next AGM it is being held on Wednesday 18 November 2009........in PARIS!

Prl taking a tempory hit due to the CDN bid being cancelled imo?

if one checks out its assets then a picture of a very undervalued company becomes visable.
EXT 10.3% of a 983.73m company = 101m (9.26%direct)
CDN 26,2% of 92.39m = 24.2
GCM 29.8& of 35m = 10.4m

Makinf a total of over 135m along with Mongolian assets as from their Finals

Entered into a 50-50 joint venture in Mongolia with Peabody Energy Corporation (NYSE: BTU) ("Peabody"), the world's largest private-sector coal company, to develop Polo's Mongolian assets.

o Completed NI 43-101 Technical Report for the Union Project.

o Announced a positive JORC compliant resource statement for the Erds Project, with thermal coal resources estimated at 254 million tonnes in the Indicated category and 553 million tonnes in the Inferred category.

$16.9m at 14th Oct but have since increased their stake in EXT.

All in all this against a M/Cap of less than 94m

cyril

Some weakness atm in metals, (although not sure how uranium is fairing) so could be a good time for me to add some more PRL as the outlook for uranium is quite positive.
niceonecyril, your sum of the parts also seem to indicate an undervaluation.
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China nuclear power programme will up uranium demand tenfold
China does not see uranium supplies as an obstacle in achieving its massive nuclear energy program which will up demand around ten times.


Author: David Stanway
Posted: Thursday , 10 Dec 2009

BEIJING (Reuters) -


China is driving ahead with an ambitious programme to expand its atomic energy capacity over the next decade, raising questions about its ability to find the uranium it will need, at home or abroad.

Total capacity reached 9.1 gigawatts by the end of 2008, and the government fully expects to hit its official 40 gigawatt target well before the 2020 deadline.

China currently operates 11 reactors and has 17 under construction, but has 124 more on the drawing boards, according to industry group the World Nuclear Association (WNA).

The expansion programme will cause its demand for uranium to rocket 10-fold by 2030, making it the world's second biggest consumer of the radioactive metal following the United States, according the WNA forecasts.

Zhang Guobao, the country's senior energy official, has repeatedly stated that China intends to raise the bar "by a large margin", and those in the know believe it should easily smash its existing targets.

Pan Zhiqiang, director of science and technology at the China National Nuclear Corporation (CNNC), one of the country's two major state-owned nuclear developers, said last month that "reaching 70 GW before 2020 will not be a big problem." [ID:nPEK128796]

"There are also estimates that by 2030, total capacity will reach 200 gigawatts, and by 2050, 1,000 gigawatts," he said.

Concerns have been raised about the availability of sufficient fuel to feed the growing demand in China and elsewhere, but Pan discounted any immediate problems.

He claimed there was "absolutely no problem" finding the uranium to run 40 gigawatts of capacity, either within China's borders or through overseas acquisitions.

Over the longer term, however, others concede that acquiring enough of the key ingredient in nuclear power generation could be a big challenge.

"The uranium market in the future faces a lot of uncertainties with not a small supply shortage," said Zhou Zhenxing, who heads the uranium development unit at the China Guangdong Nuclear Power Corporation (CGNPC), the second of China's big nuclear firms.

RAISING THE BAR

When China announced in a 2006 policy document that it would aim for 40 GW of nuclear capacity by 2020, sceptics noted this meant finding the wherewithal to bring at least two reactors into operation every year. They also pointed out plans were already behind schedule, with no new projects due until 2011, and bureaucratic problems had already delayed others.

But momentum was quickly regained. China had 11 reactors in operation by the end of last year, using a variety of "second-generation" designs from Russia, Canada and France as well as its own research institutes, and there are now another 24 -- with 25.4 GW of capacity -- approved or under construction.

U.S.-based Westinghouse Electric, now owned by Toshiba (6502.T) is building four of its new AP1000 reactors in coastal Zhejiang and Shandong provinces, securing a much-needed showcase for its untested "third-generation" designs. In exchange, China was granted a generous technology transfer agreement that would make the AP1000 the model for its own "localised" reactors.

Meanwhile, France's Areva (CEPFi.PA) agreed to build two of its European Pressurised Reactors for the Taishan nuclear project in southeast China's Guangdong.

China's own nuclear contractors are already looking well beyond the 40 GW target, with Zhou of CGNPC saying his company was already planning to increase capacity.

With every province and region keen to grab a stake in the lucrative nuclear sector, both CGNPC and CNNC have been scouring the country for potential projects. Every province along the eastern coast is building new reactors, and a multitude of cities in China's interior are also lobbying to become the country's first inland nuclear plant.

URANIUM SCRAMBLE

The need to feed such growing capacity has required the two state-owned giants to hunt the globe for new sources of fuel -- with CGNPC chasing uranium reserves in Kazakhstan, Uzbekistan, Australia and Namibia, and CNNC signing deals to explore and develop in Mongolia and Niger.

China has been developing its own uranium mines since the 1950s, mainly in the remote northwest. But total output is a state secret, and it is unclear whether it will be enough to power the dozens of reactors due to go online before 2020.

According to figures from the China Nuclear Industry Association, China has currently developed only a third of the uranium required to fuel 40 gigawatts of capacity by 2020, and exploration needs to be stepped up if China wishes to avoid being exposed to the volatile foreign market.

"The exploitation rate of Chinese uranium mines is actually very low right now, so there is room to improve the supply volume," said He Kun, a professor at the Nuclear and New Energy Technology Research Institute at Tsinghua University.

Zhou of CGNPC said his company alone would need more than 10,000 tonnes of uranium per year by 2020.

With CGNPC likely to control about half of China's nuclear capacity by then, that would put total annual demand at around 20,000 tonnes, a massive increase on the 769 tonnes produced in 2008, according to World Nuclear Association estimates.

Pan of CNNC conceded that there was an urgent need to develop new mines for the longer term.

"Uranium supplies don't constitute an obstacle to the development of nuclear power in China, but we must strengthen our prospecting work, and our research into prospecting technologies. This is absolutely crucial."

Pan said the supply problem has been overstated, however, noting that both Japan and South Korea have managed to keep their reactors running despite having no uranium of their own.

"Uranium is a commodity and we can import it, and also participate in international uranium mining projects. People say that uranium isn't very plentiful, but I don't agree."

(Reporting by David Stanway, Editing by Eric Onstad and Hans Peters.

Hope that 102m was a buy.
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