Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Nine Months Ended September 30, 2010
TORONTO, ONTARIO, Nov 10, 2010 (MARKETWIRE via COMTEX News Network) --
Pinetree Capital Ltd. ("Pinetree") (TSX: PNP) today announces its unaudited financial results for the three and nine months ended September 30, 2010.
During the three months ended September 30, 2010, Pinetree had net income of $114.2 million, as compared to $63.8 million for the same period last year. The net income was primarily from net investment gains of $141.9 million in the quarter, comprised of $136.9 million in unrealized gains on investments and realized gains on dispositions of investments of $5.2 million. Earnings per share were $0.84, as compared to $0.48 per share in the three months ended September 30, 2009.
For the nine months ended September 30, 2010, Pinetree had net income of $66.9 million, as compared to $137.1 million in the same period last year. The net income was primarily from net investment gains of $91.2 million in the period, comprised of $75.5 million in unrealized gains on investments and realized gains on dispositions of investments of $16.2 million. Earnings per share were $0.49, as compared to $1.04 per share in the nine months ended September 30, 2009.
The composition of Pinetree's investment portfolio (accounted for at fair value) by sector as at September 30, 2010, as compared to December 31, 2009, is outlined in the following table:
-------------------------------------------------- September 30, 2010 December 31, 2009 --------------------------------------- Sector ($'000) % of Total ($'000) % of Total--------------------------------------------------Resources: Precious Metals 203,863 43.6 158,027 43.1 Base Metals 82,272 17.6 71,711 19.5 Uranium and Coal 84,313 18.0 49,066 13.4 Oil & Gas 46,078 9.9 34,404 9.4 Potash, Lithium and Rare Earths 30,421 6.5 27,103 7.4 --------------------------------------Total Resources 446,947 95.6 340,311 92.8 --------------------------------------Technology/Other 20,420 4.4 26.413 7.2--------------------------------------------------
As at September 30, 2010, total investments [b]at fair value was $467.4 million, as compared to $366.7 million as at December 31, 2009[/b], while the total number of investments decrease to 420 from 429 as at December 31, 2009. Three hundred and seventy-eight of the investments or 90.0% (December 31, 2009 - 383 or 89.3%) were in the resource sector, consistent with Pinetree's primary investment strategy.
[b]Net asset value per [color=red]share increased to $3.04 [/color]as at September 30, 2010, from $2.19 as at June 30, 2010, and from $2.53 as at December 31, 2009.[/b]
"During the quarter, we saw some stability return to the Canadian equity markets and many of our portfolio investments began to yield positive returns. We have been cautiously optimistic over the last several quarters and are now starting to see the benefits of our longer-term approach to investing in the small and micro-cap commodities sector", commented Sheldon Inwentash, Pinetree's Chairman and CEO. "Our early investments in lithium and rare earths, as examples of our 'ahead-of-curve' investing, have started to gain momentum and we are also starting to see a return to the uranium sector, where we continue to have leverage through what we think are some of the preferred junior-cap names".
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: Uranium and Coal, Oil & Gas, Precious Metals, Base Metals 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.
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 shareholders' equity 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.
Contacts:Pinetree Capital Ltd.Sheldon InwentashChairman & CEO416-941-9600Investor Relations: Pinetree Capital Ltd.Richard PatricioVice President, Legal and Corporate Affairs416-941-9600ir@pinetreecapital.comwww.pinetreecapital.com
SOURCE: Pinetree Capital Ltd.
mailto:ir@pinetreecapital.com [url]www.pinetreecapital.com[/url]
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