Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

November 10, 2010 07:00 ET

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Nine Months Ended September 30, 2010

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2010) - Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its unaudited financial results for the three and nine months ended September 30, 2010.

During the three months ended September 30, 2010, Pinetree had net income of $114.2 million, as compared to $63.8 million for the same period last year. The net income was primarily from net investment gains of $141.9 million in the quarter, comprised of $136.9 million in unrealized gains on investments and realized gains on dispositions of investments of $5.2 million. Earnings per share were $0.84, as compared to $0.48 per share in the three months ended September 30, 2009.

For the nine months ended September 30, 2010, Pinetree had net income of $66.9 million, as compared to $137.1 million in the same period last year. The net income was primarily from net investment gains of $91.2 million in the period, comprised of $75.5 million in unrealized gains on investments and realized gains on dispositions of investments of $16.2 million. Earnings per share were $0.49, as compared to $1.04 per share in the nine months ended September 30, 2009.

The composition of Pinetree's investment portfolio (accounted for at fair value) by sector as at September 30, 2010, as compared to December 31, 2009, is outlined in the following table:

    September 30, 2010   December 31, 2009
Sector   ($'000)   % of Total   ($'000)   % of Total
Resources:                
  Precious Metals   203,863   43.6   158,027   43.1
  Base Metals   82,272   17.6   71,711   19.5
  Uranium and Coal   84,313   18.0   49,066   13.4
  Oil & Gas   46,078   9.9   34,404   9.4
  Potash, Lithium and Rare Earths   30,421   6.5   27,103   7.4
Total Resources   446,947   95.6   340,311   92.8
Technology/Other   20,420   4.4   26.413   7.2

As at September 30, 2010, total investments at fair value was $467.4 million, as compared to $366.7 million as at December 31, 2009, while the total number of investments decrease to 420 from 429 as at December 31, 2009. Three hundred and seventy-eight of the investments or 90.0% (December 31, 2009 – 383 or 89.3%) were in the resource sector, consistent with Pinetree's primary investment strategy.

Net asset value per share increased to $3.04 as at September 30, 2010, from $2.19 as at June 30, 2010, and from $2.53 as at December 31, 2009.

"During the quarter, we saw some stability return to the Canadian equity markets and many of our portfolio investments began to yield positive returns. We have been cautiously optimistic over the last several quarters and are now starting to see the benefits of our longer-term approach to investing in the small and micro-cap commodities sector", commented Sheldon Inwentash, Pinetree's Chairman and CEO. "Our early investments in lithium and rare earths, as examples of our 'ahead-of-curve' investing, have started to gain momentum and we are also starting to see a return to the uranium sector, where we continue to have leverage through what we think are some of the preferred junior-cap names".

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 and Coal, 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.

Contact Information

  • Pinetree Capital Ltd.
    Sheldon Inwentash
    Chairman & CEO
    416-941-9600
    or
    Investor Relations: Pinetree Capital Ltd.
    Richard Patricio
    Vice President, Legal and Corporate Affairs
    416-941-9600
    ir@pinetreecapital.com
    www.pinetreecapital.com