http://www.poloresources.com/Investors_MajorShareholders.htmI...

http://www.poloresources.com/Investors_MajorShareholders.htm

I counted about 12% shareholding in Polo that is directly and indirectly associated with SD, GCM Resources and Regent Pacific. My past readings from comments and also actions of SD is that he is an investor and do not hold any assets to the mining stage. So why is Polo selling EXT shares so cheap? or Why doesn't he sees much more value in EXT?

I am speculating that its the Laxley Partners attempt at securing ownership of Polo that is the main driver to monetise their investments. If they could liquidate all the valuable assets and pay out by way of dividends, SD would directly/indirectly benefit from this transaction before Laxley Partners get their hands on the split up. A 3Pence divvy on a 4.7Pence share price is a very hefty payout for existing SH. This way it may actually boost the SP as a defence and also collecting the hedge for Laxley to think again on the available assets whether it is worth TO.

I am also speculating that the common talk of U spot have to wait until 2013 for the US/Russia warheads recycle agreements to run out could be another reason why SD doesn't see much more potential in this sector. He is widely known to be investing in coal sector from the attempted Caledon TO until recent events.

I have no idea in the near future how the other sovereign investors including BHP sees their options on getting a piece of EXT. The fact that EXT management is fast tracking infill drilling to raise the inferred to indicated resource level may offer some clues. They are,

1. preparing the ground work for mining with the DFS to advance to the mining stage

2. getting economic figures ready for other suitors to plug into their individual risk assessment and valuations

Recent jv between Kores and Chinese is also interesting. They also have similar agendas to Itochu so I am not discounting them. Are they also trying to get economies of scale? They are some suggesting that KAH will be the next point of focus and I also tend to agree. Quietly accumulating on EXT shares on the ASX is a long process from the 9% of free float. Accumulating KAH offers exposure of the 40% EXT holding indirectly.

Just my opinion only.