Pinetree Capital Ltd.
TSX : PNP

Pinetree Capital Ltd.

July 31, 2014 11:28 ET

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Six Months Ended June 30, 2014

TORONTO, ONTARIO--(Marketwired - July 31, 2014) - Pinetree Capital Ltd. ("Pinetree") (TSX:PNP) today announces its unaudited interim consolidated financial results for the three and six months ended June 30, 2014.

For the three months ended June 30, 2014, Pinetree had a net profit of $2.7 million, as compared to a net loss of $63 million for the same quarter last year. Net profit for the three months ended June 30, 2014 was primarily the result of net investment gains of $7 million, comprised of $55 million in unrealized gains on investments offset by realized losses on dispositions of investments of $48 million. Basic earnings per share was $0.02 for the three months ended June 30, 2014, as compared to basic loss per share of $0.44 for the three months ended June 30, 2013.

For the six months ended June 30, 2014, Pinetree had a net profit of $33 million, as compared to a net loss of $110 million for the same quarter last year. Net profit for the six months ended June 30, 2014 was primarily the result of net investment gains of $41 million, comprised of $360 million in unrealized gains on investments offset by realized losses on dispositions of investments of $319 million. Basic earnings per share was $0.21 for the six months ended June 30, 2014, as compared to basic loss per share of $0.77 for the six months ended June 30, 2013.

As at June 30, 2014, the fair value of the Company's total investments was $188 million, as compared to $134 million as at December 31, 2013, an increase of 41%. The composition of Pinetree's investment portfolio by sector as at June 30, 2014 and December 31, 2013 is outlined in the following table:

June 30, 2014 December 31, 2013
Sector ($'000 ) % of Total ($'000 ) % of Total
Resources:
Precious metals 42,679 22.7 52,802 39.5
Oil and gas 12,871 6.8 16,647 12.4
Uranium 10,817 5.7 11,909 8.9
Base metals 10,671 5.7 14,103 10.5
Potash, lithium and rare earths 7,062 3.8 12,299 9.2
Coal 323 0.2 595 0.4
Total resources 84,423 44.9 108,355 80.9
Technology and other 103,790 55.1 25,610 19.1
Total investments 188,213 100.0 133,965 100.0

Net asset value per share ("NAV") was $0.78 as at June 30, 2014, a 20% increase from the December 31, 2013 NAV of $0.65. (See "Use of Non-GAAP Measures" below.)

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 following sectors: Precious Metals, Technology and Uranium. 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. Pinetree is recognized as a value added partner.

Pinetree discloses an unaudited monthly net asset value per share within 15 days after each month-end. For the latest month-end net asset value per share and for more details about Pinetree and its investments, please visit our website at www.pinetreecapital.com.

Use of Non-GAAP Measures

NAV (net asset value per share) is a non-GAAP (international financial reporting standards) measure calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. The term NAV does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. There is no comparable GAAP measure presented in Pinetree's consolidated financial statements and thus no applicable quantitative reconciliation for such non-GAAP financial measure. The Company has calculated NAV consistently for many years and believes that NAV can provide information useful to its shareholders in understanding its performance, and may assist in the evaluation of its business relative to that of its peers.

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