TORONTO, ONTARIO--(Marketwire - Nov 9, 2012) - Pinetree Capital Ltd. ("Pinetree") (PNP.TO) today announces its unaudited financial results for the three and nine months ended September 30, 2012.
During the third quarter of 2012, Pinetree had a net profit of $23 million, as compared to a net loss of $136 million for the same quarter last year. Net profit generated was primarily the result of net investment gains of $26 million in the quarter, comprised of $49 million in unrealized gains on investments and realized losses on dispositions of investments of $23 million. Earnings per share was $0.17, as compared to loss per share of $1.00 per share in the three months ended September 30, 2011.
For the nine months ended September 30, 2012, Pinetree had a net loss of $98 million, as compared to $292 million for the same period last year. Net loss generated was primarily the result of net investment losses of $89 million in the current period, comprised of $62 million in unrealized losses on investments and realized losses on dispositions of investments of $27 million. Loss per share was $0.72, as compared to $2.14 per share in the nine months ended September 30, 2011.
The composition of Pinetree''s investment portfolio by sector at the end of the quarter as compared to the end of last year is outlined in the following table:
|September 30, 2012||December 31, 2011|
|Sector||($''000)||% of Total||($''000)||% of Total|
|Potash, lithium and rare earths||29,941||9.3||38,840||9.1|
|Oil and gas||28,855||8.9||43,125||10.1|
|Technology and other||11,425||3.5||17,291||4.0|
As at September 30, 2012, total investments at fair value was $323 million, as compared to $428 million as at December 31, 2011, a decrease of 25%.
Net asset value per share decreased 27% to $1.91 as at September 30, 2012, from $2.61 as at December 31, 2011.
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: Precious Metals, Base Metals, Oil and Gas, Potash, Lithium and Rare Earths, Uranium and Coal. 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. Pinetree is recognized as a value added partner in the resource industry.
Pinetree discloses an unaudited monthly net asset value per share within 15 days after each month-end. For the latest month-end net asset value per share and for more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.
Use of Non-GAAP Measures
NAV (net asset value per share) is a non-GAAP (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP measure presented in Pinetree''s consolidated financial statements and thus no applicable quantitative reconciliation for such non-GAAP financial measure. The Company has calculated NAV consistently for many years and believes that NAV can provide information useful to its shareholders in understanding its performance, and may assist in the evaluation of its business relative to that of its peers.