Investor's Champion
How to make your money go further

Polo Resources (AIM:POL) – a bargain waiting to be snapped up?

26/08/2011 · Polo Resources (POL) 
The sale of Caledon Resources will bring in 112p per share to Polo who has a 27% interest in Caledon; Polo has already proposed to pay its shareholders a 2p per share special dividend.
Polo’s 27% interest in Caledon represents 3.93 per share of Polo’s net asset value. In addition to this there is approximately 1.00p/share of cash. Liberum Capital currently estimates that the fully diluted NAV for Polo is 6.57p/share to which the shares currently trade at a 24% discount (5p which does indeed look too wide). Following the Caledon distribution Polo will have free cash amounting to 4.94p/share which is broadly in line with the current share price.  As the shares move ex-div on the 2p per share special dividend, the market cap would be covered 1.25x by the remaining cash and…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login