TORONTO, Feb. 27, 2014 /CNW/ - Dacha Strategic Metals Inc.
(TSX-V: DSM) ("Dacha") today released its unaudited financial
results for the three and nine months ended December 31, 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. Unless otherwise
noted, dollar references below are to U.S. funds.
During the three months ended December 31, 2013, Dacha reported a net loss of
$5.0 million (or $0.07 per basic share), compared to a net loss of
$22.6 million (or $0.30 per basic share) during the three months
ended December 31, 2012. The
net loss during the three months ended December 31, 2013 was largely as a result of
pricing declines in Dacha's metals investments.
As at December 31,
2013, Dacha held 33,950 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
$5.4 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 December 31,
2013, Dacha had net assets of $13.5
million (or $0.18 per basic
share), principally comprising cash of $5.7
million, metals inventories with an estimated fair market
value of $5.4 million, accounts
receivable of $2.8 million, prepaid
expenses and deposits of $65,377,
accounts payable and accrued liabilities of $312,885, income taxes payable of $122,375 and deferred income taxes of
$34,764.
Subsequent to December
31, 2013, Dacha entered into agreements to sell 9,950 kgs of
Gadolinium Oxide and 10,000 kgs of Yttrium Oxide for aggregate
proceeds of $179,500. Market
conditions at the time of these sales were such that these metals
were sold for less than their estimated fair market value as at
December 31, 2013 as reflected in
Dacha's financial statements. Dacha continues to evaluate
Dacha's inventory positions and may make future sales of rare earth
metals depending upon market conditions and other relevant
facts.
Dacha also announced today that the term of the
consulting agreement whereby Mr. Graham
Warren serves as Dacha's Chief Financial Officer has been
extended to December 31, 2014,
subject to the continuing right of Mr. Warren or Dacha to terminate
such consulting agreement upon 90 days' prior notice. The
annual fee for Mr. Warren's services under this agreement remains
at Cdn. $90,000.
About Dacha
Dacha is an investment company whose objective
is to enhance shareholder value over the long term. 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 investment policy
and intentions, Dacha's ability to source and make attractive
investments, Dacha's ability to trade in rare earth elements, the
realization value of Dacha's physical inventory portfolio, 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.