Pinetree Capital Ltd. Announces Results For The Three Months And Year Ended December 31, 2007
March 14, 2008
TORONTO, Ontario (March 14, 2008) – Pinetree Capital Ltd. (“Pinetree”) (TSX: PNP) today announces its results for the three months and year ended December 31, 2007.
During the fourth quarter, Pinetree realized a net gain on disposal of its investments totaling $20.3 million, as compared to a net realized gain of $40.3 million in the same quarter last year. For the year ended December 31, 2007, Pinetree generated realized investment gains of $190.8 million as compared to $94.3 million last year.
Pinetree had net investment gains in the fourth quarter of $11.9 million, including unrealized losses on investments of $13.9 million, as compared to net investment gains of $156.5 million in the fourth quarter of fiscal 2006. Unrealized losses of $13.9 million for the three-month period ended December 31, 2007, are comprised of $16.3 million in reversals of prior period recorded unrealized losses and a $30.2 million write-down of our investments to fair value as at December 31, 2007. During the year ended December 31, 2007, the net investment loss of $92 million (versus $291.3 million net investment gains in 2006) includes net unrealized losses on investments of $288.3 million. The net unrealized losses during fiscal 2007 were comprised of the reversal of prior year recorded unrealized gains of $183.1 million and by a $105.2 million net write-down to fair value on our investments.
The composition of Pinetree’s investment portfolio as at December 31, 2007, including both investments at fair value and equity accounted investments, as compared to the end of the prior quarter and the end of the Company’s previous financial year is outlined in the following table:
Total investments, including investments at fair value and equity accounted investments, at December 31, 2007 stood at $611.6 million as compared to $529.6 million as at September 30, 2007 and $552.4 million at December 31, 2006. The number of investments increased to 487 from 467 at the end of the last quarter, up from 298 as at December 31, 2006. Of these 487 investments, 432, or 88.7% (September 30, 2007 – 87.4%), were in the resource sector, reflecting Pinetree’s continued focus on resources.
Net loss in the fourth quarter was $2.2 million ($0.02 per share) versus net income of $97.7 million ($1.14 per share) in the fourth quarter of 2006.
Net loss for the year ended December 31, 2007 was $91.6 million ($0.94 per share) as compared to net income of $183.1 million ($2.31 per share) for the year ended December 31, 2006.
Net asset value per share increased to $4.20 as at December 31, 2007 from $4.05 as at September 30, 2007 and a decrease from $4.24 as at December 31, 2006.
“The second half of 2007 was a challenging period for investors as global financial markets experienced a significant degree of turbulence and instability,” commented Sheldon Inwentash, Chairman and CEO of Pinetree. “Although there was a general weakening in commodity prices, our outlook for resources and commodities remains positive overall, driven largely by continued growth in Asia and India. While we expect some degree of instability in the markets to continue in the near term, we continue to believe in the strength of our long-term investment strategy – finding suitable early-stage companies in the particular sectors we have identified, with a view to achieving primarily longer-term capital appreciation. After doubling our realized investment gains in 2007 (over 2006), we have now reallocated much of our investment proceeds into new early-stage and junior resource companies and we look forward to the execution of their business plans by them. We also continue to assess new sectors within the resource market, such as potash and rare earths, which represent compelling value propositions consistent with our overall strategy.”
For more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.
Use of Non-GAAP Measures
Cautionary Note Regarding Forward-Looking Information
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Pinetree believes the expectations reflected in the forward-looking information is reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this news release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this release include, but are not limited to: risks relating to investment performance, market fluctuations, fluctuations in prices of commodities underlying our interests and equity investments, the strength of the Canadian and US economies, foreign exchange fluctuations, political and economic conditions in the countries in which the Company’s investment’ interests are located and other risks included in the Company’s current annual information form and other public disclosure documents filed with certain Canadian securities regulatory authorities and available at www.sedar.com under Pinetree’s profile.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Although Pinetree has attempted to identify important factors that could cause actual events and results to differ materially from those described in the forward-looking information, there may be other factors that cause events or results to differ from those intended, anticipated or estimated. The forward-looking information contained in this news release is provided as of the date hereof and Pinetree undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law. All of the forward-looking information contained in this news release is expressly qualified by this cautionary statement.
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