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Platsearch (ASX.PTS)

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Hi all


Thought I'd write a bit up on this company. For the record, PTS has been listed on the ASX since the dawn of time (August 1987) and hasn't really done anything (a very large understatement).


However I think things are starting to get interesting and have personally taken a small shareholding in the company.


Basically the way PTS operates is that it does grass roots exploration (tenement acquisition, sampling etc) and then JV its projects to interested parties...I would estimate that it currently has around 20-30 JVs at the moment.


It generally then retains a interest of 10-30% in these projects with the JV partner funding the more advanced exploration, ie drilling of targets identified by PTS first pass.


Unfortunately, to date no 'big ones' have even been found. However the potential is there.


But what makes it more interesting than previously is that it spun off a company called Western Plains gold which has performed amazingly and is now at around $1.30...PTS retained 10 million shares as well as around 5 million oppies in WPG...so they are effectively worth around $16 million (After 20c option exercise cost).


With a fully diluted market cap of only 23.5 million (thats fully diluted), there is only 7.5 million attributed to their JV interests plus their grassroots exploration assets.


Obviously undervalued.


And now they have released their quarterly in which they state that they have incorporated a new company called Eastern Iron which will be looking for iron in NSW. The quarterly goes on to say that subject to initial results of exploration, they will look at listing Eastern Iron...ie as they did with WPG (which went iron ore soon after).


So we have a company capped at $23.5 million which has:


- an investment in a listed company worth around 16 million

- 20-30 joint ventures where the JV partner solely funds exploration

- and possible another spinoff where you would expect like WPG they will retain a significant interest...and you would expect PTS shareholders may get priority access too


Add to this quality management and in my opinion you have a company that could finally, after many years in the wilderness, put some decent runs on the board in terms of shareprice appreciation.



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