Pinetree
Capital Ltd. Announces Unaudited Financial Results For
the Three and Six Months Ended June 30, 2011
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.