Announces Fiscal 2010
Financial Results - An 86% Increase In Net Asset Value
Pinetree
Capital Ltd. (�Pinetree�) (TSX: PNP) announces its audited consolidated financial results for the year ended
December 31, 2010.
Net asset value per share increased to $4.71 as at December 31, 2010
from $2.53 as at December 31, 2009, an 86% increase.
For the year ended December 31, 2010, Pinetree
had net income of $296 million, as compared to $157 million last year. The net
income was primarily from net investment gains of $383 million in the year,
comprised of $341 million in unrealized gains on investments and realized gains
on dispositions of investments of $43 million. Earnings per share were $2.18,
as compared to $1.19 per share in the year ended December 31, 2009.
The composition of Pinetree�s investment
portfolio (accounted for at fair value) by sector as at December 31, 2010, as
compared to the prior year, is outlined in the following table:
|
December 31, 2010
|
December 31, 2009
|
Sector
|
($�000)
|
% of Total
|
($�000)
|
% of Total
|
Resources:
|
|
|
|
|
Precious Metals
|
316,667
|
39.9
|
158,027
|
43.1
|
Base
Metals
|
148,063
|
18.6
|
71,711
|
19.5
|
Uranium
and Coal
|
171,112
|
21.6
|
49,066
|
13.4
|
Oil & Gas
|
72,263
|
9.1
|
34,404
|
9.4
|
Potash, Lithium and
Rare Earths
|
66,524
|
8.4
|
27,103
|
7.4
|
Total
Resources
|
774,629
|
97.6
|
340,311
|
92.8
|
Technology/Other
|
19,235
|
2.4
|
26.413
|
7.2
|
As at December 31, 2010, total investments at fair value was $794
million, as compared to $367 million as at December 31, 2009, while the total
number of investments decreased to 428 from 429 as at December 31, 2009. Three
hundred and ninety of the investments or 91.1% (December 31, 2009 � 383 or
89.3%) were in the resource sector, consistent with Pinetree�s
primary investment strategy.
During the three months ended December 31, 2010, Pinetree
had unaudited net income of $229 million, as compared to $20 million for the
same period last year. The net income was primarily from net investment gains
of $292 million in the quarter, comprised of $265 million in unrealized gains
on investments and realized gains on dispositions of investments of $27
million. Earnings per share were $1.68, as compared to $0.15 per share in the
three months ended December 31, 2009.
Sheldon Inwentash, Pinetree�s
Chairman and CEO, stated, �2010 was a very strong year for Pinetree
and the markets in which we invest, as the value of our investment
portfolio more than doubled. We also expanded the portfolio in areas
where we see opportunities for continued growth going forward. Our
outlook for the resource sector remains positive.�
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 venture capital firm focused on the small cap
market. Pinetree�s investments are primarily in
the resources sector: Precious Metals, Uranium and Coal, Base Metals, Oil and
Gas, and Potash, Lithium and Rare Earths. 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 and 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 a
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-GAAP Measures
�Net asset
value per share� is a non-GAAP measure defined as total assets less total
liabilities divided by the total number of common shares of Pinetree
outstanding.The term net asset value per share does
not have any standardized meaning according to GAAP and therefore may not be
comparable to similar measures presented by other companies.We
believe that the measure provides information useful to our shareholders in
understanding our performance, facilitates the comparison of the quarterly and
year-end results of our ongoing operations and provides a meaningful measure to
evaluate our business relative to that of our peers.