Pinetree Capital Ltd. Announces Unaudited Financial Results For The Three Months And Year Ended December 31, 2009
March 9, 2010
TORONTO, Ontario (March 9, 2010) – Pinetree Capital Ltd. (“Pinetree”) (TSX: PNP) today announces its financial results for the three months and year ended December 31, 2009.
During the final quarter of fiscal 2009, Pinetree generated net income of $20.3 million, as compared to a net loss of $93.6 million for the same quarter last year. The net income was primarily the result of net investment gains of $37.7 million in the quarter, comprised mainly of $28.1 million in unrealized gains on investments and realized gains on dispositions of investments of $9.7 million. Earnings per share was $0.15, as compared to a loss per share of $0.71 in the three months ended December 31, 2008.
For the year ended December 31, 2009, Pinetree generated net income of $157.4 million, as compared to a net loss of $356.0 million last year. The net income in the year was primarily from net investment gains of $207.2 million, comprised mainly of $229.3 million in unrealized gains on investments partially offset by realized losses on dispositions of investments of $22.4 million. Earnings per share (basic) was $1.19 in the year ended December 31, 2009, as compared to a loss per share of $2.92 in the year ended December 31, 2008.
The composition of Pinetree’s investment portfolio (accounted for at fair value) by sector as at December 31, 2009, as compared to the prior year, is outlined in the following table:
|December 31, 2009||December 31, 2008|
|Sector||($’000)||% of Total||($’000)||% of Total|
|Oil & Gas||34,404||9.4||10,066||7.5|
|Potash, Lithium and Rare Earths||27,103||7.4||3,658||2.7|
|Energy Related Technology||5,190||1.4||2,366||1.8|
As at December 31, 2009, total investments at fair value stood at $366.7 million, as compared to $134.0 million as at December 31, 2008, while the total number of investments remained relatively constant at 429 as compared to 427 as at the end of the last year. Three hundred and eighty-three of the investments or 89.3% (December 31, 2008 – 87.5%), were in the resource sector, consistent with Pinetree’s primary investment strategy.
Net asset value per share increased 90.2% to $2.53 as at December 31, 2009, from $1.33 as at December 31, 2008.
“We are very pleased with the improvement in the junior resource sector through 2009, and the positive impact it has had on the value of our portfolio”, commented Sheldon Inwentash, Pinetree’s Chairman and CEO. “We have continued investing in these sectors with a long-term perspective, taking advantage of excellent opportunities that have become available to us, including those in emerging sectors like rare earths and lithium. We expect the mineral resource sectors in which we invest to benefit as the global economy continues to improve.”
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, 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
“Net asset value per share” is a non-GAAP measure defined as shareholders’ equity divided by the total number of common shares of Pinetree outstanding.The term net asset value per share does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies.We believe that the measure provides information useful to our shareholders in understanding our performance, facilitates the comparison of the quarterly and year-end results of our ongoing operations and provides a meaningful measure to evaluate our business relative to that of our peers.
Larry Goldberg, C.A.
Executive Vice President and Chief Financial Officer
Pinetree Capital Ltd.
130 King Street West, Suite 2500
Toronto, Ontario, Canada, M5X 1A9
Web Site: www.pinetreecapital.com