NEW YORK, July 9, 2013 (GLOBE NEWSWIRE) -- SMG Indium Resources LTD. (the "Company") (OTCBB:SMGI) (OTCBB:SMGIW) reported its net market value ("NMV") 1, at June 30, 2013 was approximately $30.21 million, or $3.43 per share2. On June 26, 2013, the Company paid a special cash distribution to stockholders in the amount of U.S. $0.10 per share of common stock of the Company. The record date for stockholders entitled to receive the special cash distribution was June 21, 2013. The distribution will be treated as a return of capital for tax purposes. The Company intends to continue returning capital to shareholders on a quarterly basis, subject to prevailing market conditions. As of June 30, 2013, The Company's inventory of indium consisted as follows:
| Quantity3(Kilograms) | Original Cost4($US '000s) | Market Value5 ($US '000s) | |
| Indium held in inventory | 47,021 | $28,638 | $25,744 |
| (99.99% purity ingots) | |||
| Average Original Cost | Market Value | |
| Indium held in inventory | $609.05 / Kilogram | $547.50 / Kilogram |
In addition, the Company reported the following activity related to common stock repurchases and indium purchases for the month of June 2013:
| Quantity | Average Price | Cost ($US '000s) | |
| Monthly stock repurchases | None | N/A | N/A |
| Monthly indium purchase | None | N/A | N/A |
As of June 30, 2013, there were 8,802,697 shares of common stock outstanding and the share price closed at $2.81. In June 2013, the Company increased the amount reserved for its authorized common stock repurchase plan from $1.0 million to $3.0 million. Approximately $2.9 million remains available under the common stock repurchase plan.
1 We use the term NMV per share when we discuss the value of the Company. We define the term NMV, as used in this release, as the product of multiplying the number of kilograms of indium held by the Company at any given date by the spot price for indium as published by Metal Bulletin PLC and posted on Bloomberg L.P. for such date, plus cash and other Company assets, less any liabilities divided by the common stock outstanding as of such date. The use of the term NMV is a non-US generally accepted accounting principle (GAAP)financial measurement. The Company's GAAP net book value (NBV) per share of common stock was approximately $3.082on June 30, 2013.The difference between such GAAP NBV and NMV at June 30, 2013 is attributable to the excess of the indium spot price over GAAP book value of indium.
2 Calculated based on the number of shares of common stock outstanding exclusive of all options and warrants outstanding because their effect would be anti-dilutive.
3Reflects indium we have physically stored in our third-party storage facility. Also reflects indium we are committed to buy back under an unconditional sale and purchase agreement and indium leased to a third party.
4The original cost per kilogram of indium is different from the carrying value determined under GAAP as a result of lower of cost or market adjustments due to changes in the spot price of inventory recorded on a quarterly basis.
5Market value of indium inventory is determined based on the spot price of indium ($547.50 per kilogram) published by Metal Bulletin PLC and posted on Bloomberg L.P. (Bloomberg L.P. is not regulated or government approved) times the 47,021 kilograms held in inventory at June 30, 2013. Such amount differs from the carrying amount of inventory under GAAP.
6All financial information is unaudited.
About SMG Indium Resources Ltd.
SMG Indium Resources Ltd. purchases and stockpiles the metal indium and believes it maintains the largest strategic stockpile of indium held outside of the People's Republic of China. Our strategy is to achieve long-term appreciation in the value of our indium stockpile, and not to actively speculate with regard to short-term fluctuations in indium prices. Our indium is insured and physically stored at a Brink's Global USA facility located in the United States. Our shareholders have the ability to effectively purchase an interest in indium in a manner that does not directly include the risks associated with ownership of companies that explore for, mine or process indium. For more information please contact: info@smg-indium.com
Please visit our website at http://www.smg-indium.com to view the NMV which is posted bi-weekly.
Disclosure Notice
This press release may contain forward-looking statements regarding SMG Indium Resources Ltd. current expectations of future events that involve risks and uncertainties, including, without limitation, and not limited to indium price volatility from supply and demand factors, international export quotas that could affect the availability of indium and our ability to purchase or sell indium, lack of any internationally recognized exchanges for indium, limited number of potential suppliers of indium and potential customers who purchase indium, disruption of mining operations, technological obsolescence, substitution of other materials decreasing the demand for indium, regulatory requirements regarding indium, risks associated with international economic and political events, lack of operational liquidity, lack of investment liquidity, factors affecting our NMV, and changes in interest rates. Such statements are based on management's current expectations and are subject to a number of substantial risks and uncertainties that could cause actual results or timeliness to differ materially from those addressed in the forward-looking statements. Factors that may cause such a difference are listed from time to time in reports filed by the Company with the U.S. Securities and Exchange Commission (SEC), including but not limited to risks described in our Annual Report on Form 10-K for the fiscal year ended 2012, as filed with the Securities and Exchange Commission under the caption "Risk Factors." We undertake no obligation to publicly update any forward-looking statements. http://www.smg-indium.com.