Yesterday, Pinetree Capital (OTCPK:PNPFF) announced that the non-GAAP, unaudited January 31 NAV is C$4.68. Currently the stock is trading for C$4.16 on the Canadian market, an approximately 12.5% discount to the non-GAAP, unaudited January 31 NAV.
For those investors not familiar with Pinetree Capital, it is wise to give a brief background on the company and its history.
Pinetree Capital was founded in 1992 by Sheldon Inwentash as a vehicle to invest in technology companies. After navigating the technology bubble Pinetree switched its focus to the precious metals area after realizing the potential China and emerging markets would have on the commodity and precious metals industries.
Pinetree's strategy is to invest in companies with good potential properties at the seed level, continue to add investments as metrics are achieved, and follow them through the exploration process.
Some of their current success stories include AfriOre Limited, Summit Resources, Gold Eagle, Aurelian Resources, and Potash One.
Current successful positions include companies such as Colossus Minerals, Evolving Gold, Cline Mining, and Lithium Americas Corp. (spinoff from Latin American Minerals in which Pinetree was a seed investor).
While there are some companies which did not work out as expected a small investor can leverage the knowledge and success of Sheldon Inwentash and the team at Pinetree Capital.
One advantage to Pinetree's setup and focus is that they are not beholden to sunset issues or investment minimums or maximums.
Pinetree also acts as a merchant banker helping junior companies, in which they have invested, secure additional funding.
Investors looking to get access to junior mining companies often find the process a bit difficult. How does one decipher the management's competency, drill results, and understand their business plan and pick the one stock amongst hundreds that will eventually become a ten bagger?
While the portfolio has its share of winners and losers investors would be well served to take advantage of the knowledge base of Mr. Inwentash and staff of Pinetree Capital.
With the stock currently selling at a greater than 10% discount to the non-GAAP, unaudited January 31 NAV investors looking for exposure to the junior mining sector would be well advised to take a look at Pinetree Capital.