Dacha Strategic Metals Inc. (TSX-V: DSM) is pleased to announce that it has sold 2,900 kilograms of Lutetium Oxide from its inventory held in Jurong, Singapore at a price ofUS$1,750 per kg for gross proceeds of US$5,075,000. Based on the original purchase price of US$309.60 per kg, the Company realized a pre-tax gain of $4.1 million. As at March 31 2012, Dacha held Lutetium at a mark-to-market price of $1,600 per kg.
This transaction marks the 13th consecutive sale of inventory by Dacha above its mark to market carrying value of its inventory.
Scott Moore, President and CEO commented, “Dacha has continually provided investors with a transparent valuation of its inventory based on the published pricing available in Metal Pages and Asian Metals. In addition Dacha has a consistent track record of selling inventory above the carrying value of the inventory at the time. This transaction should further reinforce to shareholders that our inventory has realizable value at or above its published value and that the current discount attributed to our share price is not reflective of the true value of the NAV”.
As at March 31, 2012 Dacha’s inventory was valued at $84.8 million or Net Assets of $1.16 per share.
Looking forward to your report, David. Scott addressed directly what troubles DSM shareholders, the current net realizable value, and for that matter the future NRV when they get off their behind to sell some more inventory. I sold my position last fall, but IMO a large dose of belief is required to own it. (OTOH it doesn’t need a couple of hundred million and a 5 year time line to develop a property, so that is the good part of the story).
@31Floors
Don’t get too excited. I’ve been trying to contact the company for over a month with no success. So much for shareholder friendly! I finally got a nod from Scott that he’d give me a call and that too has come and gone.
Pity none of us noticed that annual FR mentioned the intention to buy back another 10% of the shares, would have made adding a few more a consideration, or at least watching the price, now up 30% off early July lows with some volume.
Although I can see that the “not returning phone calls” is a bit of a bummer.
PS: Admin: Re search, could you include the “Overview” pages? Perhaps results from there could appear at the top of any search results?
And as they claim assets of $84m they are still at 50% discount (at .55), or is there some debt or other liabilities or fd count I haven’t bothered to look for.
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For the year ended March 31, 2011, Dacha reported net earnings of US$23.8 million or US$0.33 per share from total revenues of US$31.0 million (US$27.7 million from gain on its metals investments, US$2.9 million from gain on its security investments).
As of March 31, 2012, the Company’s metals inventory, which has a cost basis of US$20.5 million, had an estimated market value of US$84.8 million. During the year then ended, Dacha purchased US$3.1 million of metals and executed trades of US$3.9 million for realized profit of approximately US$3.1 million as at fiscal year end.“
Dacha’s assets aren’t currently that high, probably due to a combination of sales and REE price decline. Their website lists $62M in metals and add in $3M cash for $65M asset value. They have 75M shares($0.87) and 94M shares diluted($0.79). Using the higher value of $0.87 for assets and a stock price of $0.50 Canadian the stock trades at 57% of asset value. It’s always traded at a large discount.
They list the spot prices of the 6 rare elements they hold, 90% in Terbium Ox, Dysprosium Ox, and Dysprosium Fe, with minor holdings in Neodymium Ox, Yittrium Ox, and Gadolithium Ox.
Dacha inventory —> http://www.dachametals.com/Inventory/default.aspx