Pinetree Capital Ltd. Announces Unaudited Financial Results For the Three and Six Months Ended June 30, 2011
August 11 2011 - 4:00PM
Marketwired Canada
Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its unaudited
financial results for the three and six months ended June 30, 2011.
This is the second quarter for which the Company has reported its operating
results and financial position under International Financial Reporting Standards
("IFRS"). All comparative information contained in the June 30, 2011 interim
consolidated financial statements has been restated to conform to the accounting
policies under IFRS.
During the second quarter of fiscal 2011, Pinetree had a net loss of $144.7
million, as compared to $62.1 million for the same quarter last year. Net loss
generated was primarily the result of net investment losses of $162.1 million in
the quarter, comprised of $192.1 million in unrealized losses on investments
offset by realized gains on dispositions of investments of $30.0 million. Loss
per share was $1.06, as compared to $0.46 per share in the three months ended
June 30, 2010.
For the six months ended June 30, 2011, Pinetree had a net loss of $155.9
million, as compared to $48.6 million for the same period last year. Net loss
generated was primarily the result of net investment losses of $174.9 million in
the current period, comprised of $264.6 million in unrealized losses on
investments offset by realized gains on dispositions of investments of $89.7
million. Loss per share was $1.14, as compared to $0.36 per share in the six
months ended June 30, 2010.
The composition of Pinetree's investment portfolio by sector at the end of the
quarter as compared to the end of last year is outlined in the following table:
============================================================================
June 30, 2011 December 31, 2010
-------------------------------------------------
% of % of
Sector ($'000) Total ($'000) Total
----------------------------------------------------------------------------
Resources:
Precious Metals 299,705 49.2 316,667 39.6
Base Metals 117,114 19.2 153,221 19.2
Potash, Lithium and Rare
Earths 61,232 10.0 66,524 8.3
Oil & Gas 56,049 9.2 72,263 9.0
Uranium 43,269 7.1 109,720 13.7
Coal 8,060 1.3 61,392 7.7
-------------------------------------------------
Total Resources 585,429 96.0 779,787 97.5
-------------------------------------------------
Technology and Other 24,350 4.0 19,235 2.5
============================================================================
As at June 30, 2011, total investments at fair value was $609.8 million, as
compared to $799.0 million as at December 31, 2010.
Net asset value per share decreased 23.4% to $3.63 as at June 30, 2011, from
$4.74 as at December 31, 2010.
On July 25, 2011, Steven Gold joined Pinetree as Vice President, Investments,
and is responsible for managing the investment team as well as day to day
portfolio matters, in addition to working directly with Pinetree's executive
management team to coordinate investment processes with the research and trading
divisions. Mr. Gold previously worked at Clarus Securities from 2007 to 2011 as
Vice President and Research Analyst, focusing on special situations and
resources. Prior to that, he worked at a resource focused hedge fund as an
Associate Portfolio Manager. Mr. Gold graduated from McGill University,
receiving a degree in Economics and Industrial Relations. He received his CFA
designation in 2006.
About Pinetree
Pinetree Capital Ltd. ("Pinetree") was incorporated under the laws of the
Province of Ontario and its shares are publicly-traded on the Toronto Stock
Exchange ("TSX") under the symbol "PNP". Pinetree is a diversified investment
and merchant banking firm focused on the small cap market. Pinetree's
investments are primarily in the resources sector: Precious Metals, Base Metals,
Oil and Gas, Potash, Lithium and Rare Earths, Uranium and Coal. Pinetree's
investment approach is to develop a macro view of a sector, build a position
consistent with the view by identifying micro-cap opportunities within that
sector, and devise an exit strategy designed to maximize our relative return in
light of changing fundamentals and opportunities. Pinetree is recognized as a
value added partner in the resource industry.
Pinetree discloses an unaudited monthly net asset value per share within 15 days
after each month-end. For the latest month-end net asset value per share and for
more details about Pinetree and its investments, please visit our website at
www.pinetreecapital.com.
Use of Non-IFRS Measures
NAV (net asset value per share) is a non-IFRS (international financial reporting
standards) measure calculated as the value of total assets less the value of
total liabilities divided by the total number of common shares outstanding as at
a specific date. The term NAV does not have any standardized meaning according
to IFRS and therefore may not be comparable to similar measures presented by
other companies. There is no comparable IFRS measure presented in Pinetree's
consolidated financial statements and thus no applicable quantitative
reconciliation for such non-IFRS financial measure. The Company has calculated
NAV consistently for many years and believes that NAV can provide information
useful to its shareholders in understanding its performance, and may assist in
the evaluation of its business relative to that of its peers.
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