Pinetree Capital Ltd. Announces Unaudited Financial Results For The Three And Nine Months Ended September 30, 2010
November 10, 2010
TORONTO, Ontario (November 10, 2010) – 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:
As at September 30, 2010, total investments at fair value was $467.4 million, as compared to $366.7 million as at December 31, 2009, 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.
Net asset value per share increased to $3.04 as at September 30, 2010, from $2.19 as at June 30, 2010, and from $2.53 as at December 31, 2009.
“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”.
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
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