SOURCE: Longview Capital Partners Incorporated

November 14, 2007 20:36 ET

Longview Capital Partners Announces Results for the Three and Nine Months Ended September 30, 2007

VANCOUVER, BC--(Marketwire - November 14, 2007) - Longview Capital Partners Incorporated (TSX: LV) today announced its unaudited financial results for the three and nine months ended September 30, 2007.

In the third quarter of fiscal 2007 Longview Capital Partners recorded net investment losses of $15.9 million and other revenues of $1.4 million compared to net investment gains of $10.4 million and other revenues of $0.4 million for the same period in 2006.

For the nine months ended September 30, 2007 Longview Capital Partners recorded net investment gains of $2.9 million and other revenues of $2.9 million compared to net investment gains of $19.0 million and other revenues of $0.5 million for the same period in 2006.

Longview Capital Partners recorded a net loss for the fiscal 2007 third quarter of $11.6 million ($0.10 per share) compared to a net income of $6.0 million ($0.08 per share) in the third quarter of 2006.

For the nine months ended September 30, 2007 Longview Capital Partners recorded a net loss of $4.3 million ($0.04 per share) compared to a net income of $11.1 million ($0.16 per share) in the same period in 2006.

Longview Capital Partners' net investment losses in the fiscal 2007 third quarter include realized net gains on disposal of investments of $2.5 million and net unrealized losses of $18.4 million compared to net realized gains of $2.8 million and net unrealized gains of $7.6 million for the same period in 2006.

Longview Capital Partners' net investment gains for the nine months ended September 30, 2007 include realized net gains on disposal of investments of $6.7 million and net unrealized losses of $3.8 million compared to net realized gains of $6.6 million and net unrealized gains of $12.4 million for the same period in 2006.

"Our results for the first nine months of 2007 have been negatively impacted by general market factors," says Damien Reynolds, Chairman and CEO of Longview Capital Partners. "We continue to focus on the long-term prospects for the resource sector and are confident that the correction in the market, though having a significant impact on our current results, will prove healthy for our core business in the future. We continue to advance our plans to take a number of our private investments public over the next three months. We have also been very pleased by the strong performance of some of our more senior investments such as Waratah Coal and Nevada Copper."

Mr. Reynolds noted that "There continues to be a temporary disconnect between robust demand and prices for resources with the valuations of promising junior companies. With gold prices in the range of $800 an ounce and tungsten and molybdenum continuing at the upper end of their historical price range, we are certain that our investments in companies such as Buffalo Gold and Oriental Minerals will provide substantial value in the coming weeks and months."

About Longview Capital Partners

Longview Capital Partners is an investment company creating long-term shareholder value by capitalizing on early stage opportunities in the natural resource sector, and having the resultant earnings growth recognized in its share price. Longview Capital Partners first began trading on September 5, 2005 and graduated to the TSX senior Exchange on September 24, 2007 under the same symbol "LV." The company was recently named to both the Top 50 Fastest Growing Companies and the Top 50 Strongest Companies for 2006 by the Vancouver Sun newspaper.

Attached are the Consolidated Balance Sheet, Statement of Operations and Retained Earnings, and Statement of Cashflows for the three and nine months ended September 30, 2007 and 2006. For more information on Longview Capital Partners Incorporated, please contact Mr. Spiro Kletas, Investor Relations, at (604) 681-5755 or visit our website at www.longviewcp.com.

Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

LONGVIEW CAPITAL PARTNERS INCORPORATED
CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 2007 AND DECEMBER 31, 2006
(Unaudited)

-----------------------------------------------------------------------
                                  September 30, 2007  December 31, 2006
-----------------------------------------------------------------------
ASSETS

Cash and cash equivalent                    $948,191         $2,734,605
Investments, at fair value                83,499,561         87,539,741
Accounts receivable                        1,623,835            756,782
Deposits and prepaid expenses                140,852            111,910
Income taxes recoverable                   2,100,068                 -
Deferred costs                               815,396            612,119
Fixed assets                                 305,576            232,660
                                   ------------------------------------
                                         $89,433,479        $91,987,817
-----------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
Accounts payable and accrued liabilities  $1,095,216         $2,053,136
Income taxes payable                              -           2,363,215
                                    -----------------------------------
                                           1,095,216          4,416,351
Future tax liabilities                    14,160,382         16,520,596

                                   ------------------------------------
                                          15,255,598         20,936,947
                                   ------------------------------------
Shareholders' equity

Share capital                             37,606,362         28,299,289
Contributed surplus                        7,987,079          6,882,074
Retained earnings                         28,584,440         35,869,507
                                   ------------------------------------
                                          74,177,881         71,050,870
                                   ------------------------------------
                                         $89,433,479        $91,987,817
-----------------------------------------------------------------------



LONGVIEW CAPITAL PARTNERS INCORPORATED
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Unaudited)


------------------------------------------------------------------------
                             Three Months Ended        Nine Months Ended
                                September 30,            September 30,
                             2007          2006        2007         2006
------------------------------------------------------------------------
REVENUES

Gain on disposal of
investments, net       $2,467,747    $2,849,693  $6,715,263   $6,563,205

Unrealized (loss)/gain
on investments, net   (18,390,910)    7,574,496  (3,828,887)  12,426,809

Interest and
rental income              78,282         2,800     231,021        3,669

Other income            1,299,815       391,945   2,655,293      535,123
         ---------------------------------------------------------------
                      (14,545,066)   10,818,934   5,772,690   19,528,806
         ---------------------------------------------------------------

EXPENSES

Operating, general
and administrative      2,318,094       740,082  10,174,095    1,400,340

Depreciation               19,427         2,718      52,044        3,549

Foreign exchange
loss (gain)               490,176       (88,855)  1,091,918    (110,620)

Interest                   26,734         9,060      53,409       22,789

tock-based compensation   113,580       614,700   1,694,059      967,050
        ----------------------------------------------------------------
                        2,968,011     1,277,705  13,065,527    2,283,108
        ----------------------------------------------------------------

(Loss)/Income before
income taxes          (17,513,077)    9,541,229 (7,292,835)   17,245,698

Recovery of
(provision for)
income taxes            5,929,736    (3,514,285) 3,023,497   (6,163,373)
        ----------------------------------------------------------------

Net (loss)/income
for the period        (11,583,341)    6,026,944 (4,269,338)   11,082,325
        ----------------------------------------------------------------

Retained earnings,
beginning of period,
as previously reported 40,167,781     9,107,953 35,869,507     2,097,555

Change in accounting           -     (2,340,192)(3,015,729)    (385,175)
        ----------------------------------------------------------------

Retained earnings,
beginning of period,
as adjusted            40,167,781     6,767,761 32,853,778     1,712,380
        ----------------------------------------------------------------

Retained earnings,
end of period         $28,584,440   $12,794,705 28,584,440   $12,794,705
------------------------------------------------------------------------
Basic (loss)/earnings
per share                  $(0.10)        $0.08     $(0.04)        $0.16
------------------------------------------------------------------------

Diluted (loss)/earnings
per share                  $(0.10)        $0.08     $(0.04)        $0.16
------------------------------------------------------------------------


Weighted average number of
common shares outstanding

  Basic                112,045,027   74,729,719 106,086,359   67,241,761
  Diluted              112,045,027   77,837,591 106,086,359   70,143,502
------------------------------------------------------------------------




LONGVIEW CAPITAL PARTNERS INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Unaudited)


------------------------------------------------------------------------
                             Three Months Ended        Nine Months Ended
                                September 30,            September 30,
                             2007          2006        2007         2006
------------------------------------------------------------------------
CASH FLOWS FROM (USED IN)
OPERATING

ACTIVITIES

Net (loss)/income
for the period       $(11,583,341)   $6,026,944  (4,269,338) $11,082,325

Items not affecting
cash:

Gain on disposal of
investments, net       (2,467,747)   (2,849,693) (6,715,263) (6,563,205)

Unrealized loss/(gain)
on investments, net    18,390,910    (7,574,496)  3,828,887 (12,426,809)

Provision for income
taxes-future           (6,230,987)    2,612,823  (2,360,214)   4,286,628

Shares issued in
exchange for accrued
  liabilities                   -            -    1,750,000           -

Stock-based
compensation              113,580       614,700   1,694,059      967,050

Depreciation               19,427         2,718      52,043        3,549

Changes in non-cash
working capital items:

(Decrease)/increase in
accounts receivable and  (518,559)     (109,055) (2,967,120)   (104,040)

income taxes recoverable

Increase/(decrease)
in deposits and prepaid   (50,138)      135,722     (28,943)    (62,546)

expenses

Increase/(decrease) in
accounts payable and

accrued liabilities      (377,207)      572,875    (957,920)     607,480

(Decrease)/increase in
income taxes payable            -       901,463  (2,363,215)   1,876,746
                --------------------------------------------------------

Net cash (used in) from
operating activities    (2,704,062)     334,001 (12,337,024)   (332,822)
                --------------------------------------------------------

CASH FLOWS FROM (USED IN) INVESTING
ACTIVITIES

Purchase of
investments            (14,810,801) (20,713,781)(41,508,997)(35,418,119)

Proceeds from disposal
of investments          17,361,346   16,194,373  45,419,824   29,231,830

Deferred costs            (273,340)    (221,827)   (203,277)   (221,827)

Purchase of fixed
assets                     (25,368)     (94,603)   (124,959)   (118,712)
                --------------------------------------------------------

Net cash from (used in)
investing activities     2,251,837   (4,835,838)  3,582,591  (6,526,828)
                --------------------------------------------------------

CASH FLOWS FROM (USED IN) FINANCING
ACTIVITIES

Shares and warrants
issued for cash                 -     4,458,402   3,000,000    7,180,236

Proceeds from exercise
of options                 47,500            -      261,000            -

Proceeds from exercise
of warrants                     -            -    3,707,019            -
                --------------------------------------------------------

Net cash provided by
financing activities       47,500     4,458,402   6,968,019    7,180,236
                --------------------------------------------------------

(Decrease)/increase in
cash and cash
equivalents              (404,725)      (43,435) (1,786,414)     320,586
during the period

Cash and cash
equivalents,
beginning of period     1,352,916       515,250   2,734,605      151,229
                --------------------------------------------------------

Cash and cash
equivalents,
end of period            $948,191      $471,815    $948,191     $471,815
------------------------------------------------------------------------

Contact Information

  • For more information on Longview Capital Partners Incorporated, please
    contact:
    Mr. Spiro Kletas
    Investor Relations
    (604) 681-5755
    www.longviewcp.com