Dacha Reports Net Income of US$0.94 Per Share and Financial Results for the Six Months Ending September 30, 2011
November 24 2011 - 7:15AM
Marketwired
Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX
VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce that it has
released its interim financial results for the three and six months
ended September 30, 2011. For more information please see the
Company's interim financial statements and Management's Discussion
and Analysis ("MD&A") posted on SEDAR at www.sedar.com.
Dacha reported net earnings of US$70.8 million or US$0.94 per
basic share for the six months ended September 30, 2011 from total
revenue of US$77.5 million (US$80.1 million from gain on its metal
investments offset by US$2.6 million loss on security investments).
For the six months ending September 30, 2010, Dacha reported net
income of US$3.6 million or US$0.05 per basic share from total
revenue of US$7.5 million (US$6.9 million from gain on its metal
investments offset by US$0.4 million loss on security
investments).
As of September 30, 2011, its metals inventory, with a cost
basis of US$20.5 million, had an estimated market value of US$121.0
million. During the six months ended September 30, 2011, Dacha
purchased US$3.1 million of metals and disposed of US$3.9 million
of metals for realized profit of approximately US$3.0 million. A
physical inventory count was also conducted by the Company's
auditors with the Company's entire inventory held at Pacorini
Metals, in two separate LME approved warehouses in Busan, Korea.
Subsequent to the quarter end Dacha has opened a third warehouse in
Singapore, also operated by Pacorini Metals.
Dacha's net assets at September 30th are US$125.3 million or
US$1.60 per share based on 78.1 million shares outstanding, or,
US$1.37 per share on a fully diluted basis of 98.7 million shares
outstanding.
Outlook on Rare Earth Market and Hong Kong Rare Earth Conference
update
Dacha attended the Roskill Rare Earth conference in Hong Kong
last week to meet with existing customers, potential new customers
and industry participants. A major theme from the conference is the
severe impact of flooding in Thailand on two significant users of
rare earth magnets, namely Japanese auto makers and the Hard Disk
Drive manufacturers. This has severely weakened an already slow
market as Japan draws down inventories in hopes of falling
prices.
The lack of export buying has the potential to impact export
quotas for 2012. Speculation in Hong Kong had the year end use as
much as 10,000 tonnes short of the quota. Industry participants
would not be surprised if 2012 quotas were reduced in the first
half of 2012.
In addition to potentially lower export quotas, the
consolidation of the Rare Earth market continues inside China and
the number of exporters with quotas is expected to fall from the
current 26. Chinese rare earth mining and processing seems to be
headed for an oligopoly situation with much of the industry falling
under the control of a few state owned enterprises.
2012 Export Quotas and approved exporters will likely be
released sometime around Christmas with the Lunar New Year falling
on January 23rd in 2012.
Normal Course Issuer Bid
During the six months ended September 30, 2011, the Company
purchased and cancelled 3,450,000 common shares at an average cost
of $0.91. Subsequent to September 30, 2011, an additional 1,300,000
common shares have been purchased for cancellation at an average
cost of $0.62. Dacha expects to continue to purchase shares over
the remainder of the fiscal year, depending on market conditions
and other investment opportunities that may be available.
About Dacha
Dacha Strategic Metals Inc is an investment company focused on
the acquisition, storage and trading of strategic metals with a
primary focus on Rare Earth Elements. Dacha is in the unique
position of holding a commercial stockpile of Physical Rare Earth
Elements. Its shares are listed on the TSX Venture Exchange under
the symbol "DSM" and on the OTCQX exchange under the symbol
"DCHAF".
Except for statements of historical fact relating to the
Company, certain information contained herein constitutes
"forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements with respect to the Company's ability to
trade in rare earth elements, the realization value of Dacha's
physical inventory portfolio, proposed investment strategy of the
Company, and general investment and market trends. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates
of management as of the date such statements are made.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Dacha to be
materially different from those expressed or implied by such
forward-looking information. Although management of Dacha has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. Dacha does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
The market value of the Company's physical inventory is
estimated using price quotes published by two of the largest
independent news sources for the metals industry, namely, Asian
Metal (www.asianmetal.com) and Metal-Pages (www.metal-pages.com).
In cases where these websites do not provide a price quote on the
type or quality of metal held in the Company's physical inventory,
the Company relies on a price quote provided by independent
third-party industry participants.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Dacha Strategic Metals Inc. Scott Moore President and
CEO (416) 861-5903smoore@dachametals.com Dacha Strategic Metals
Inc. Darcie Ladd Manager of Marketing & Communications (416)
861-5938dladd@dachametals.comwww.dachametals.com
Deep South Resources (TSXV:DSM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Deep South Resources (TSXV:DSM)
Historical Stock Chart
From Jul 2023 to Jul 2024