TORONTO, ONTARIO--(Marketwire -03/01/12)- Dacha Strategic Metals Inc. ("Dacha" or the "Company") (TSX-V: DSM.V - News)(OTCQX: DCHAF.PK - News) is pleased to announce that it has released its interim financial results for the three and nine months ended December 31, 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$57.5 million or US$0.76 per basic share for the nine months ended December 31, 2011 from total revenue of US$63.9 million (US$66.4 million from gain on its metal investments offset by US$2.5 million loss on security investments). For the nine months ending December 31, 2010, Dacha reported net income of US$5.2 million or US$0.07 per basic share from total revenue of US$10.9 million (US$7.7 million from gain on its metal investments and US$2.9 million gain on security investments).
As of December 31, 2011, its metals inventory, with a cost basis of US$20.5 million, had an estimated market value of US$107.4 million. During the nine months ended December 31, 2011, Dacha disposed of US$3.9 million of metals inventory for realized profit of approximately US$3.0 million.
During the nine ended December 31, 2011, Dacha purchased 6,350,000 shares through a continuing normal course issuer bid ("NCIB") at an average price of 76 cents. Subsequent to December 31, 2011, Dacha completed its NCIB having purchased for cancellation a total of 6,747,679 shares of the company at an average price of 74 cents per share. Dacha's corporate structure now consists of approximately 74.8 million common shares issued and outstanding or 95.2 million common shares issued and outstanding on a fully diluted basis.
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.