News

March 13, 2008

Polo And Caledon Dance Around The Ring

By Alastair Ford

Same issues, same company, back round the treadmill a few years on. That’s oversimplifying the current tussle over Caledon Resources, but in one sense it’s quite patently true – that old past master at market mischief Steve Dattels is back in the ring throwing punches around and bloodying a few noses. He was involved in a scrap at Caledon some years ago that involved much gnashing of teeth in the bars of St. James’s, as well as some fairly choice words. That disagreement also knocked seven bells out of the share price, much to the discomfort of directors. This time round, if he’s not yet landed a knock-out blow, it’s in part simply because his current vehicle Polo Resources suffered a share suspension for slightly longer than had been anticipated, which cramped his style, and temporarily restricted his room for manouevre. He also didn’t emerge from Polo’s recent fundraising with as big a war-chest as he’d originally hoped for, but credit to Mr Dattels, even if he isn’t quite Mohammed Ali, he does know how to dance around the ring, and he knows how to keep his opponent guessing.

At issue are his plans for Polo Resources’s stake in Caledon Mining, the Aim-traded Australian coking coal specialist that’s sitting on some choice assets in a market to die for, but which, due to a slight late running of the production schedule, has something of a funding shortfall. The answer? A dual listing in Australia, which will not only provide additional funding, but will also - at least according to analysts and virtually everyone with a close interest in the company - generate a...