TORONTO, Aug. 27, 2013 /CNW/ - Dacha Strategic Metals Inc.
(TSX-V: DSM) ("Dacha") today released its unaudited financial
results for the three months ended June 30,
2013. For more information, please see Dacha's
condensed interim consolidated financial statements and
management's discussion and analysis filed under Dacha's profile on
SEDAR at www.sedar.com. All dollar references below are to
U.S. funds.
During the three months ended June 30, 2013, Dacha reported a net loss of
$8.1 million (or $0.11 per basic share), compared to a net loss of
$16.7 million (or $0.22 per basic share) during the three months
ended June 30, 2012. The net
loss during the three months ended June 30,
2013 was largely as a result of losses on Dacha's metals
investments including declines over the period in the estimated
fair market value of Dacha's metals inventories.
As at June 30,
2013, Dacha held 47,450 kilograms of rare earth metals with
an estimated fair market value, based upon pricing reported by two
independent news sources for the strategic metals industry, of
$15.2 million. The true
realizable value of the rare earth metals held by Dacha may
significantly differ from the prices reflected on these market
websites. Further, due to the illiquidity of rare earth
metals markets and the significant volatility of prices at which
Dacha's metals investments may be sold, there may be significant
differences between the prices that may actually be realized in a
sale of Dacha's metals and estimated values as reflected in Dacha's
financial statements.
As at June 30,
2013, Dacha had net assets of $17.4
million (or $0.23 per basic
share), principally comprising its metals inventories with an
estimated fair value of $15.2
million, cash of $2.6 million,
accounts receivable of $276,974,
prepaid expenses and deposits of $57,408, accounts payable and accrued liabilities
of $424,001, income taxes payable of
$122,375 and deferred income taxes of
$124,011.
Subsequent to June 30,
2013, Dacha sold a portion of its inventory of Terbium
Oxide. These metals were sold for an amount approximating
their original cost, although market conditions at the time of this
sale were such that the metals were sold for less than their
estimated fair market value as at June 30,
2013 as reflected in Dacha's financial statements.
Since the reconstitution of Dacha's board on
November 28, 2012, Dacha has been
reviewing its opportunities and prospects to create shareholder
value from both its existing metals inventories and its rare earth
metals business going forward. As part of that review, which
is ongoing, Dacha continues to evaluate Dacha's inventory positions
and may make future purchases or sales of rare earth metals
depending upon market conditions and other relevant facts. In
seeking to best utilize its capital so as to maximize long-term
value for shareholders, Dacha may also make other investments from
time to time unrelated to the rare earth metals business, or seek
to undertake one or more merger, amalgamation or other transactions
involving Dacha.
Dacha is scheduled to hold its annual and
special meeting of shareholders at 10:00
a.m. (Toronto time) on
September 27, 2013. The record
date for purposes of notice and voting at that meeting has been
fixed as the close of business on August 27,
2013, and meeting materials will be sent to shareholders
shortly.
About Dacha
Dacha has invested in physical strategic
minerals and, in particular, indirectly owns an inventory of
physical strategic minerals with a focus on rare earth
elements. Its shares are listed on the TSX Venture Exchange
under the symbol "DSM".
Except for statements of historical fact
relating to Dacha, 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 Dacha's ability to trade in
rare earth elements, the realization value of Dacha's physical
inventory portfolio, the proposed investment strategy of Dacha, 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.
Certain information on parties other than Dacha
contained in this press release has been obtained or quoted from
publicly available sources, independent publications, media
articles or third party websites (collectively, the
"Publications"). In certain cases, these sources make no
representations as to the reliability of the information they
publish. Further, the analyses and opinions reflected in these
Publications are subject to a series of assumptions about future
events. There are a number of factors that can cause the results to
differ materially from those described in these publications. None
of Dacha or its representatives independently verified the accuracy
or completeness of the information contained in the Publications or
assume any responsibility for the completeness or accuracy of the
information derived from these Publications.
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.
SOURCE Dacha Strategic Metals Inc.