Pinetree Capital Ltd. Announces Unaudited Financial Results
For The Three And Six Months Ended June 30, 2012
Pinetree Capital Ltd. (�Pinetree�)
(TSX: PNP) today announces its unaudited financial results for
the three and six months ended June 30, 2012.
During
the second quarter of fiscal 2012, Pinetree had a net
loss of $116 million, as compared to $145 million for the same quarter last
year. Net loss generated was primarily the result of net investment
losses of $115 million in the quarter, comprised of $105 million in unrealized
losses on investments and realized losses on dispositions of investments of $10
million. Loss per share was $0.85, as compared to $1.06 per share in the
three months ended June 30, 2011.
For the
six months ended June 30, 2012, Pinetree had a net
loss of $121 million, as compared to $156 million for the same period last
year. Net loss generated was primarily the result of net investment
losses of $116 million in the current period, comprised of $111 million in
unrealized losses on investments and realized losses on dispositions of
investments of $5 million. Loss per share was $0.88, as compared to $1.14
per share in the six months ended June 30, 2011.
The
composition of Pinetree�s investment portfolio by
sector at the end of the quarter as compared to the end of last year is
outlined in the following table:
Sector
|
June
30, 2012
|
December 31, 2011
|
($�000)
|
% of Total
|
($�000)
|
% of Total
|
Resources:
|
|
|
|
|
Precious metals
|
154,653
|
53.3
|
233,771
|
54.7
|
Base
metals
|
37,645
|
13.0
|
61,050
|
14.3
|
Oil and gas
|
30,571
|
10.5
|
43,125
|
10.1
|
Potash,
lithium and rare earths
|
27,825
|
9.6
|
38,840
|
9.1
|
Uranium
|
24,170
|
8.3
|
28,272
|
6.6
|
Coal
|
5,643
|
1.9
|
5,320
|
1.2
|
Total resources
|
280,507
|
96.6
|
410,378
|
96.0
|
Technology and other
|
9,496
|
3.4
|
17,291
|
4.0
|
Total investments
|
290,003
|
100.0
|
427,669
|
100.0
|
As at June 30, 2012, total investments at fair value was $290 million, as
compared to $428 million as at December 31, 2011, a decrease of 32%.
Net
asset value per share decreased 33% to $1.74 as at June 30, 2012, from $2.61 as
at December 31, 2011.
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-GAAP Measures
NAV (net asset value per share) is a non- GAAP (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 GAAP and therefore may not be comparable to
similar measures presented by other companies. There is no comparable
GAAP measure presented in Pinetree�s consolidated
financial statements and thus no applicable quantitative reconciliation for such
non-GAAP 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.