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2009

Pinetree Capital Ltd. Announces Unaudited Financial Results For The Three And Six Months Ended June 30, 2009


August 12, 2009

TORONTO , Ontario (August 12, 2009) – Pinetree Capital Ltd. (“Pinetree”) (TSX: PNP) today announces its unaudited financial results for the three and six months ended June 30, 2009.

During the second quarter, Pinetree generated net income of $44.6 million, as compared to $4.8 million for the same quarter last year.  The net income was primarily from net investment gains of $58.5 million in the quarter, comprised of $79.0 million in unrealized gains on investments and $305,000 in gains from equity accounted investments, partially offset by realized losses on dispositions of investments of $20.8 million.  Earnings per share were $0.34, as compared to $0.04 per share in the three months ended June 30, 2008.

For the six months ended June 30, 2009, Pinetree generated net income of $73.2 million, as compared to a net loss of $51.6 million in the same period last year.  The net income was primarily from net investment gains of $103.2 million in the period, comprised of $127.0 million in unrealized gains on investments, realized losses on dispositions of investments of $26.7 million and $334,000 in losses from equity accounted investments.  Earnings per share were $0.56, as compared to a loss per share of $0.45 in the six months ended June 30, 2008.

The composition of Pinetree’s investment portfolio (accounted for at fair value) by sector as at June 30, 2009, as compared to December 31, 2008, is outlined in the following table: 

 
June 30, 2009
December 31, 2008
Sector
($’000)
% of Total
($’000)
% of Total
Resources:
       
        Precious Metals
131,079
48.3
50,540
37.7
        Uranium
61,681
22.7
26,953
20.1
        Base Metals
30,175
11.1
23,529
17.6
        Oil & Gas
21,349
7.9
10,066
7.5
        Molybdenum
5,068
1.9
3,159
2.4
        Potash and Rare Earths
4,257
1.6
3,658
2.7
Total Resources
253,609
93.5
117,905
88.0
Technology/Other
9,576
3.4
8,205
6.1
Biotechnology
3,428
1.3
5,493
4.1
Energy Related Technology
4,799
1.8
2,366
1.8

As at June 30, 2009, total investments at fair value stood at $271.4 million, as compared to $134.0 million as at December 31, 2008, and the aggregate number of investments decreased to 422 from 427 as at the end of the last year.  Three hundred seventy-two of the investments or 88.1% (December 31, 2008 – 87.5%), were in the resource sector, consistent with Pinetree’s primary investment strategy.  

Net asset value per share increased to $1.91 as at June 30, 2009, from $1.33 as at December 31, 2008.  

“Following last year’s challenges, the first half of 2009 has been quite positive for many resource issuers.  We are pleased with the progress made in recapturing some of the value in our portfolio, as a result of improved market sentiment which is consistent with our long term view of the resource sectors that form the focus of our investing activity”, said Sheldon Inwentash, Chairman and CEO of Pinetree.

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, Oil & Gas, Molybdenum, Precious Metals, Potash and Rare Earths, and Base Metals.  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.

Investor Relations:
Larry Goldberg, C.A.
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2500
Toronto, Ontario, Canada, M5X 1A9
Phone: 416-941-9600
Email: ir@pinetreecapital.com
Web Site: www.pinetreecapital.com

©Copyright 2012 Pinetree Capital Ltd.