Humboldt Capital Corporation

Humboldt Capital Corporation

August 28, 2012 09:00 ET

Humboldt Reports Earnings for the Six Months Ended June 30, 2012

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2012) - Humboldt Capital Corporation (TSX VENTURE:HMB)

Humboldt is pleased to report a net gain on sale of investments of $5.5 million, for the first half of 2012. As a result of these sales Humboldt reported cash and equivalents had increased to $8.5 million by the end of Q2 2012, the Company's highest level of liquidity in over two years. This provides the Company with ample flexibility for new investments during this protracted period of weak stock prices in commodity related industries.

Due to an overall reduction of the value of Humboldt's shareholdings, the Company's equity was reduced to $38.6 million or $3.19 per share, fully diluted, compared with $48.0 million or $3.95 at the end of Q1 2012 and $44.3 million and $3.64 at the end of 2011.

The market continues to be in a cyclical downturn or "sell in May" event. This has been triggered by concerns over European sovereign debt and uncertainty regarding worldwide growth prospects. Specifically, the market has been negatively impacted by monetary tightening in China and a concern that Chinese growth could significantly slow. In addition, the debt liquidation fear in Europe has led to a softening of demand across the commodity spectrum. The foregoing concerns have spilled over into the pricing of most commodity stocks and resulted in a reduction in their values. The market decline in mid-2012 has been the most significant since 2009.

Humboldt anticipates that these extremely low stock valuations will be corrected this fall and that an upward move in the US economy will lead to significantly higher stock prices by the end of the current year.


Humboldt is currently in an enviable position, with a cash balance of over $8.0 million which will allow it to benefit from any significant economic and stock market set back. From this position of strength Humboldt plans to continue to upgrade the quality of its holdings while reducing its portfolio diversity over the next year.

Humboldt Financial Statements and Management's Discussion and Analysis for the six months ended June 30, 2012 have been filed on SEDAR and can be found on Humboldt's website at

Six Months Ended June 30
(Thousands, except per share amounts) 2012 2011 2010
Net gain on sale of investments $ 5,516 $ 3,919 $ 1,312
Unrealized increase (decrease) in investment value $ (10,788 ) $ (13,460 ) $ (2,831 )
Earnings and comprehensive earnings for the period $ (5,601 ) $ (8,830 ) $ (1,727 )
Earnings per share, diluted $ (0.47 ) $ (0.74 ) $ (0.14 )
Share capital $ 2,062 $ 2,012 $ 2,015
Retained earnings $ 35,875 $ 51,134 $ 59,964
Shareholders' equity $ 38,566 $ 53,805 $ 62,605
Cash and cash equivalents $ 8,510 $ 843 $ 6,497
Shares outstanding 11,957 11,990 12,008
Net asset value per share, diluted $ 3.19 $ 4.34 $ 5.01

Forward-looking statements - the press release today contains "forward-looking" information. Actual results could differ materially from the conclusions, forecasts or projections in the forward-looking information. Certain material factors and assumptions were applied in drawing the conclusions or making the forecasts or projections as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and the material factors or assumptions that were applied in drawing the conclusion or making the forecast or projection as reflected in the forward-looking information is contained in the press release.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).


Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

    R.W. Lamond
    Chairman of the Board
    (403) 269-9889
    (403) 269-9890 (FAX)

    C.A. (Tony) Teare
    Executive Vice President
    (403) 269-9889
    (403) 269-9890 (FAX)