DCHAF,, $0.55.. Dacha Reports Assets of US$1.62 Per Share With Inventory Valued at US$121.0 Million as of September 30, 2011 and Provides Com...
Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX VENTURE:DSM)(OTCQX:DCHAF) is pleased to announce the estimated market value of its Rare Earth metals inventory. As of September 30, 2011, the estimated value of its metals inventory was US$121.0 million, a decrease of US$14.2 million, or 10.5%, from the estimated value of US$135.2 million at August 31, 2011, as reported in the Company's September 2, 2011 press release.
Assets include metal inventory, cash and marketable securities. At September 30, 2011, in addition to its metal inventory, which had an estimated fair market value of US$121.0 million, the Company's equity investments had an estimated fair market value of approximately US$1.9 million and cash of approximately US$3.3 million for a total of US$126.2 million, or US$1.62 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.
Company Update
Dacha continues to execute under its Normal Course Issuer Bid and has purchased 1.4 million shares for cancellation since its AGM on September 15th, 2011. As of September 30, 2011, the Company has purchased and cancelled a total of 3,450,000 shares of Dacha at an average price of $0.91 as part of its on-going Normal Course Issuer Bid.
Dacha notes that the market has reacted strongly to the recent pullback in rare earth prices, with Dacha's share price dropping approximately 30% while its inventory value fell only 10% over the same period from the Company's last net asset value update on August 30th 2011. Dacha believes the severe curtailment of heavy rare earth mining and separation combined with speculators exiting the market will have a significant positive influence on heavy rare earth prices in the next 90 days. Moreover, while Asian buyers have been relatively inactive in the market since August, the Company has seen a rise in inquiries in the last two weeks. Dacha maintains its inventory in two London Metal Exchange warehouses in Korea owned and operated by Pacorini Metals, a Glencore company. The Company's inventory is physically audited at the end of each quarter and its auditors were on site on September 30th.
As at September 30, 2011, Dacha's physical inventory portfolio consisted as follows:
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Metals Inventory Grades(i) Quantity Spot Price/kg Market Value
9/30/2011 (Kg) (US$) (US$millions)
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Busan, South Korea
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Dysprosium Oxide 3N+ 15,000 $2,295 $34.4
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Dysprosium Fe Santoku 12,000 $2,450 $29.4
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Gadolinium Oxide 4N5+ 9,950 $265 $2.6
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Lutetium Oxide 4N+ 2,900 $1,150 $3.3
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Neodymium Oxide 4N+ 18,000 $276 $5.0
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Terbium Oxide 4N+ 14,000 $3,153 $44.1
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Yttrium Oxide 5N 14,000 $153 $2.1
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Total: 85,850 $121.0
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(i)Grades:
4N = 99.99%
4N+ = 99.99+%
5N = 99.999%
4N5+ = 99.99%/99.999+%
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Dacha's inventory, including market value, is updated weekly every Monday morning and posted to the "Inventory" tab of its website at www.dachametals.com. Dacha encourages its shareholders and all other interested parties to visit its website regularly and to monitor the ongoing appreciation of its physical inventory of Rare Earth Elements.
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".
