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News Releases

Pinetree Capital Ltd. Releases Results For The Three Months And Year Ended December 31, 2006 And Announces Two-For-One Stock Split


March 21, 2007

Pinetree Generates Significant Year Over Year Growth:

  • Fair Value of Investments Exceeds $550 Million;
  • Net Asset Value Increases by 127.1% to $8.47 (Basic) Per Share;  
  • Net Income Grows by 254% to $183.1 Million;  
  • Earnings Per Share Increases by 150.2% to $4.63 (Basic) Per Share;

Toronto , Ontario Pinetree Capital Ltd. (TSX: PNP) (“Pinetree”), a Canadian investment company, today announced its audited results for the year ended December 31, 2006.

On July 31, 2006, the Company effected a two-for-one stock split by issuing a stock dividend of one common share for every common share outstanding on the close of business on July 19, 2006.  All current figures and comparative figures reflect the stock split.

Investments at Fair Value stood at $552.4 million as at December 31, 2006 as compared to $420.7 million at the end of the last quarter (a 31.3% increase) and $176.14 million at the end of last fiscal year (a 213.6% increase). 

Net Asset Value per share (basic) was $8.47.  This is an increase of 127.1% over the Net Asset Value per share of $3.73 as at December 31, 2005 and an increase of 35.1% over the Net Asset Value per share of $6.27 as at September 30, 2006.

The composition of Pinetree’s investment portfolio as at December 31, 2006 compared to last quarter and December 31, 2005, is outlined in the following table: 

 

December 31, 2006

September 30, 2006

December 31, 2005

Sector

Fair Value ($)

% of Total

Fair Value ($)

% of Total

Fair Value ($)

% of Total

Resources:

           

            Uranium

187,881,000

34.0

92,252,000

21.9

28,937,000

16.4

            Oil & Gas

77,848,000

14.1

80,322,000

19.2

40,169,000

22.8

            Precious Metals

179,076,000

32.4

154,537,000

36.7

38,239,000

21.7

            Base Metals

34,894,000

6.3

24,303,000

5.8

15,231,000

8.7

Total Resources

479,699,000

86.8

351,414,000

83.6

122,576,000

69.6

Biotechnology

10,958,000

2.0

5,956,000

1.4

5,938,000

3.4

Energy Related Technology

20,284,000

3.7

25,396,000

6.0

19,372,000

11.0

Technology/Other

41,436,000

7.5

37,897,000

9.0

28,256,000

16.0

The largest increases in Fair Value during the year were in the Uranium, Precious Metals, and Base Metals sectors.  Overall, the Fair Value of Pinetree’s Resource investments grew by 291.3% during the year. 

During the fourth quarter, Pinetree generated $156.4 million of net investment gains as compared to $38.4 million in the fourth quarter of fiscal 2005 (a 307.2% increase).  In the twelve months ended December 31, 2006, net investment gains were $291.2 million as compared to net investment gains of $71.4 million in the prior year (a 308.0% increase).  Of the net investment gains during the current year, $94.2 million were realized gains while $197.0 million were unrealized. 

Net income in the fourth quarter was $97.7 million, an increase of 274.7% over the $26.1 million earned in the fourth quarter of 2005.  For the full year, net income was $183.1 million versus net income of $51.7 million in 2005.

“Our resource investments performed very well in 2006 and I am very pleased to report that the fair value of our investments crossed the $500 million mark,” commented Sheldon Inwentash, Chairman and CEO of Pinetree. “Looking into 2007, we remain focused on the resource sector with an eye for new opportunities in other areas. We will continue to execute our investment strategy and identify and invest in growth sectors early to create maximum returns for our investors.”

Subsequent to the quarter, the Standard and Poor’s Canadian Index Group added Pinetree to the S&P/TSX Composite Index, marking an important milestone to the Company. Changes were made as a result of their quarterly review and took effect as of the market open on March 19, 2007. The S&P/TSX Composite is the headline index and the principal broad market measure for the Canadian equity markets.

In addition, Pinetree’s Board of Directors approved a two-for-one stock split of its common shares to be effected by way of a stock dividend.

The board of directors has declared the stock dividend payable to shareholders of record as at the close of business on April 5, 2007 (the “Record Date”).  Such shareholders will be entitled to receive one common share of Pinetree for each common share owned of record on the Record Date.  The stock dividend is payable on April 13, 2007 and certificates evidencing the dividend will be mailed to registered shareholders commencing on that date.

Pinetree’s common shares are expected to commence trading on a post-stock dividend basis on the Toronto Stock Exchange on April 3, 2007.

Sheldon Inwentash, Pinetree’s Chairman and Chief Executive Officer, commented:  “Our share price has appreciated significantly over the last twelve months and we think that the stock dividend will make our shares more affordable to retail investors and generally enhance liquidity.”

About Pinetree

Pinetree Capital Ltd. ("Pinetree" or the "Company") was incorporated under the laws of the Province of Ontario and is publicly traded on the Toronto Stock Exchange (“TSX”) under the symbol “PNP” and is included in the Standard & Poor's/Toronto Stock Exchange composite index.  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, Precious Metals and Base Metals.  Pinetree’s investment approach is to build a macro position in a sector, find the micro-cap opportunities in that sector and work with those companies to build them to commercial production and create an exit.

For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.

This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Pinetree’s results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. Pinetree disclaims any intent or obligation to update these forward-looking statements.

Investor Relations Contact for Pinetree Capital Ltd.:

Larry Goldberg , C.A.

Executive Vice President and Chief Financial Officer

Pinetree Capital Ltd. 

 

130 King Street West, Suite 2810

 

Toronto , ON , Canada , M5X 1A9

416-941-9600

Email: ir@pinetreecapital.com    Web Site: www.pinetreecapital.com

©Copyright 2012 Pinetree Capital Ltd.