RE: RE: NAV- 91 CentsMost warrants & options (except 1.8 million at 72 cents) are at 42 and 45 cents.
The effect excluding the 72 cent ones (out of the money) would if we assume 91 cents NAV be to bring us down to 80 cents. When that is mentioned one should however know that Dacha also holds other assets currently not in the NAV update. This is a loan + interest to another Forbes company which fd would add about 3.5 cents. My personal assumption is that this will be settled before most of the warrants are exercised. Looking at it this complete way would put the fd NAV with all assets at 83.5 cents assuming the standard NAV 91 cents.
The tax effect of the REE appreciation is very low, 2.5% for holdings outside of China which is another reason Dacha wants to focus on that.
I stick to 91 cents NAV including the tax effect.
I also want to say that I believe that management will be open to the idea of one day liquidating the company in order for shareholders to gain the full NAV. Personally I do not want to see that happen now. I believe that the absolute lack of new supply of Terbium and Dysprosium will bring much much higher prices as inelastic demand grows 2011, 2012 and 2013. 2014 is the year we could see substantial additions of supply, but I would actually guess that these companies will fail with their timelines.