Pinetree Capital Ltd.

Pinetree Capital Ltd.

August 14, 2007 09:56 ET

Pinetree Capital Ltd. Announces Results for the Three and Six Months Ended June 30, 2007

- Net Realized Gains on Disposal of Investments of $76.8 Million in Q2, $173.5 Million For The Six Months Ended June 30, 2007. - Fair Value of Investments Rises to $809.0 million, a 15.7% Increase in Q2, the Ninth Consecutive Quarter of Growth. - NAV per Share Increases to $4.97 From $4.24 at December 31, 2006.

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2007) - Pinetree Capital Ltd. (TSX:PNP), a Canadian investment company, today announced its unaudited results for the three and six months ended June 30, 2007.

During the second quarter, Pinetree continued to generate significant realized gains on disposal of its investments totaling $76.8 million, as compared to $19.3 million in the same quarter last year, a 298% increase. Pinetree had a net investment loss in the quarter of $51.1 million, including unrealized losses on investments of $127.9 million, as compared to $18.1 million of net investment loss in the second quarter of fiscal 2006. The current quarter's unrealized losses of $127.9 million are comprised of $54 million in reversals of prior period unrealized gains and a $73.9 million write-down of our investments to Fair Value as at the end of the quarter.

For the six months ended June 30, 2007, Pinetree generated realized investment gains of $173.5 million as compared to $39.2 million in the same period last year, a 343% increase. The net investment gain of $36.2 million in the six months ended June 30, 2007 ($80.4 million in the six months ended June 30, 2006) includes net unrealized losses on investments of $137.3 million. The net unrealized losses during the current period were primarily from the reversal of prior period unrealized gains of $137.3 million and by a $0.03 million write-down to market.

The composition of Pinetree's investment portfolio as at June 30, 2007
compared to the end of the previous two quarters is outlined in the
following table.

June 30, 2007 March 31, 2007 December 31, 2006
Fair Value % of Fair Value % of Fair Value % of
Sector ($'000) Total ($'000) Total ($'000) Total
Precious Metals 281,610 34.7 222,217 31.8 179,076 32.4
Uranium 211,118 26.1 214,058 30.7 187,881 34.0
Base Metals 108,274 13.4 59,126 8.5 34,894 6.3
Oil & Gas 77,413 9.6 102,611 14.7 77,848 14.1
Molybdenum 42,604 5.3 19,794 2.8 -- --
Total Resources 721,019 89.1 617,806 88.5 479,699 86.8
Biotechnology 18,554 2.3 19,795 2.8 10,958 2.0
Energy Related
Technology 10,443 1.3 9,302 1.3 20,284 3.7
Technology/Other 59,015 7.3 51,797 7.4 41,436 7.5

Fair Value of Investments at the end of the second quarter rose to $809.0 million from $698.7 million as at March 31, 2007, a 15.7% increase, the ninth consecutive quarter of growth in the Fair Value of Investments. The number of investments increased to 509 from 394 at the end of the last quarter and from 298 as at December 31, 2006, demonstrating Pinetree's high level of investment activity. Of these 509 investments, 447, or 87.8% (March 31, 2007 - 86.8%), were in the resource sector, reflecting Pinetree's continued focus on the resource market.

Net loss in the second quarter was $44.3 million ($0.47 per basic share) versus $18.3 million ($0.22 per basic share) in the second quarter of 2006.

Net income for the six months ended June 30, 2007 was $2.9 million ($0.03 per basic share) as compared to $48.0 million ($0.67 per basic share) for the six months ended June 30, 2006.

Net Asset Value (NAV) per share rose to $4.97 from $4.84 as at March 31, 2007, a 2.7% increase. "NAV per share" is a non-GAAP measure defined as shareholders' equity divided by total number of common shares outstanding. The term NAV 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.

"We are very pleased to record another quarter of growth, given the softness in the resource markets that we have all been experiencing," commented Sheldon Inwentash, Chairman and CEO of Pinetree Capital. "The diversity of our investments across a number of different sectors allows us to weather market downturns while providing us with additional investment opportunities at attractive valuations."

About Pinetree

Pinetree Capital Ltd. ("Pinetree" or the "Company") was incorporated under the laws of the Province of Ontario and is publicly traded on the Toronto Stock Exchange ("TSX") under the symbol "PNP" and is included in the Standard & Poor's/Toronto Stock Exchange composite index. 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, Molybdenum, Precious Metals and Base Metals. 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

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.

Contact Information

  • Investor Relations:
    Pinetree Capital Ltd.
    Larry Goldberg, C.A.
    Executive Vice President and Chief Financial Officer
    (416) 941-9600
    Media Relations:
    Pinetree Capital Ltd.
    Wanda Cutler
    Director of Corporate Communications
    (416) 860-1717