Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

November 11, 2009 16:05 ET

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Nine Months Ended September 30, 2009

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) - Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its unaudited financial results for the three and nine months ended September 30, 2009.

During the third quarter, Pinetree generated net income of $63.8 million, as compared to a net loss of $210.9 million for the same quarter last year. The net income was primarily from net investment gains of $69.5 million in the quarter, comprised mainly of $74.2 million in unrealized gains on investments partially offset by realized losses on dispositions of investments of $5.4 million. Earnings per share were $0.48, as compared to loss per share of $1.63 in the three months ended September 30, 2008.

For the nine months ended September 30, 2009, Pinetree generated net income of $137.1 million, as compared to a net loss of $262.5 million in the same period last year. The net income in the nine month period was primarily from net investment gains of $169.5 million, comprised mainly of $201.2 million in unrealized gains on investments partially offset by realized losses on dispositions of investments of $32.1 million. Earnings per share were $1.04 in the nine months ended September 30, 2009, as compared to a loss per share of $2.21 in the nine months ended September 30, 2008.

The composition of Pinetree's investment portfolio (accounted for at fair value) by sector as at September 30, 2009, as compared to December 31, 2008, is outlined in the following table: 

 September 30, 2009December 31, 2008
Sector($'000)% of Total($'000)% of Total
Resources:     
        Precious Metals136,94345.650,54037.7
        Uranium50,12616.626,95320.1
        Base Metals48,66316.126,68820.0
        Oil & Gas22,3917.410,0667.5
        Potash, Lithium and Rare Earths 25,5228.53,6582.7
Total Resources283,64594.2117,90588.0
Technology/Other7,5092.58,2056.1
Biotechnology4,8511.65,4934.1
Energy Related Technology5,2481.72,3661.8

As at September 30, 2009, total investments at fair value stood at $301.3 million, as compared to $134.0 million as at December 31, 2008, while the total number of investments decreased to 408 from 427 as at the end of the last year. Three hundred and sixty-three of the investments or 88.9% (December 31, 2008 – 87.5%), were in the resource sector, consistent with Pinetree's primary investment strategy. 

Net asset value per share increased to $2.39 as at September 30, 2009, from $1.33 as at December 31, 2008. 

"The third quarter was a very strong one for Pinetree, continuing the performance of our portfolio in the first half of our fiscal year, said Sheldon Inwentash, Chairman and CEO of Pinetree. "The previous market decline has provided us with many excellent investment opportunities, and we are generally very excited about the medium and long term prospects for the resource sectors in which we focus."

About Pinetree
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.

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