Executive Summary
Polo Resources Limited (LON:POL) is a coal exploration and mining company with interests in Mongolia, where it is strategically positioned to meet the needs of key emerging markets such as China and Russia. The country is estimated to have proven coal reserves of 100 Bt that have not yet been developed, and current annual coal production there is approximately 5 Mt. The company also has interests in uranium in Mongolia. Listed on the AIM of the London Stock Exchange, Polo Resources did not earn any revenue in the period ending 30 June and it made an operating loss of $54.9m.
Company History
Current Events
- NI 43-101 Technical Report Completed for the Union Coal Mine in Mongolia - Polo Resources Limited (AIM: PRL) announced on March 10 2009 that it has received a completed Technical Report on its Union Project from Micromine Pty Ltd of Australia. The report demonstrates Measured and Indicated coal resources of 44.5 and 50.2 million tonnes (Mt), respectively, for a total of 94.7 Mt. An additional 38.4 Mt are classified as Inferred.
Business Model
Polo is committed to creating a major international coal mining and exploration group with a diversified portfolio of numerous coal and uranium licenses in Mongolia.
Polo seeks to acquire, explore and develop coal projects that are strategically located to serve the increasing global demand for both thermal coal for power generation and coking coal for steel production. In Asia, this growth has been particularly robust, most notably in China where the demand for imported coal has tripled since 2003.
Polo holds a significant portfolio of coal assets in Mongolia and the strategic location of its licences in relation to the Asian markets.
Polo also holds a portfolio of uranium licences in Mongolia which will allow the Company to take advantage of the new construction of nuclear power reactors currently concentrated in Asia and the growing supply-demand imbalance in the uranium market.
Polo is also focused on several attractive potential acquisition opportunities consistent with its vision of rapidly building a significant global coal company, and with its strategy of acquiring coking and thermal coal assets at all stages of development.
The Company’s key criteria in identifying potential acquisitions and joint ventures are:
- for producing assets, those which offer the scope for management to utilise its experience to increase performance and profitability; and
- for development and exploration projects, licences that are in…
