Pinetree Capital Ltd. Announces Results For The Three Months Ended March 31, 2006 And Proposed Two-For-One Stock Split
May 10, 2006
- Fair Value of Investments increased 71.4% in quarter to $301.9 million from $176.1 million as at
December 31, 2005 ;
- Net Asset Value Per Share increased 52.9% to $11.41 (basic) from $7.46 (basic) as at December 31, 2005;
- Earnings Per Share of $4.27 in the quarter vs. $0.17 in Q1 of 2005;
- Plans 2 for 1 stock split.
Investments at Fair Value stood at $301.9 million as at March 31, 2006 as compared to $176.1 million as at December 31, 2005 (a 71.4% increase).
Net Asset Value per share (basic) was $11.41 as at
During the first quarter, Pinetree generated $98.5 million of net investment gains as compared to $3.7 million in the first quarter of fiscal 2005. Of the net investment gains during the period, $19.9 million were realized gains while $78.6 million were unrealized.
Net income in the first quarter was $66.4 million, versus $2.4 million earned in the first quarter of 2005. Earnings Per Share (basic) in the quarter was $4.27 as compared to $0.17 in the first quarter last year.
The composition of Pinetree’s investment portfolio as March 31, 2006 compared to December 31, 2005, is outlined in the following table.
|
As At
|
As At
|
% Change In Fair Value From Prior Period | ||||
|
Sector |
Fair Value ($) |
% of Total |
Fair Value ($) |
% of Total |
||
|
Resources: |
||||||
|
Uranium/Coal |
65,040,000 |
21.5 |
28,937,000 |
16.4 |
124.8% | |
|
Oil & Gas |
72,937,000 |
24.2 |
40,169,000 |
22.8 |
81.6% | |
|
Precious Metals |
78,155,000 |
25.9 |
38,239,000 |
21.7 |
104.4% | |
|
Base Metals |
19,287,000 |
6.4 |
15,231,000 |
8.7 |
26.6% | |
|
Total Resources |
235,419,000 |
78.0 |
122,576,000 |
69.6 |
92.1% | |
|
Biotechnology |
7,575,000 |
2.5 |
5,938,000 |
3.4 |
27.6% | |
|
Energy Related Technology |
25,655,000 |
8.5 |
19,372,000 |
11.0 |
32.4% | |
|
Technology/Other |
33,314,000 |
11.0 |
28,256,000 |
16.0 |
17.9% | |
In terms of Fair Value, the largest increases since the last fiscal year end were in the Uranium/Coal and Precious Metals sectors. Overall, the Fair Value of Pinetree’s Resource investments grew by 92.1% during the first quarter of 2006.
“The first quarter of 2006 has been very strong for Pinetree, given the continued strength in our sectors of focus,” commented
In addition, Pinetree’s Board of Directors approved a proposed two (2) for one (1) stock split to increase the total number of outstanding common shares. Pinetree thinks that a two-for-one stock split will enhance the liquidity and distribution of Pinetree’s common shares. The stock split is subject to regulatory approval, including without limitation, approval of the TSX, and shareholder approval. A further news release will be issued when the date of the shareholders’ meeting has been established.
About Pinetree
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.:
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
416-941-9600
Email: ir@pinetreecapital.com Web Site: www.pinetreecapital.com