CALGARY, ALBERTA--(Marketwired - May 29, 2013) - Humboldt Capital Corporation (TSX VENTURE:HMB) is pleased to report that for the three months ended March 31, 2013, Humboldt recorded a net gain of $1.2 million on the sale of investments and ended the quarter with cash reserves of $6.4 million. This will provide the Company with financial flexibility for new investments during this period of weak stock prices in commodity related entities. During Q1 2013 Humboldt reported a reduction in the unrealized value of its investment portfolio of $6.3. As a result Humboldt reported a loss of $5.3 million, or $0.44 per share for the three months ended March 31, 2013.
The Company's net asset value at March 31, 2013 was $28.0 million, or $2.34 per share compared to $33.3 million or $2.77 per share a year earlier.
Subsequent to the end of Q1 2013 a significant event was announced involving two of Humboldt's related portfolio holdings. Tuscany Energy Ltd and Diaz Resources Ltd. announced that, subject to obtaining shareholder approvals, court approval and regulatory approvals, Tuscany would acquire all the outstanding common shares of Diaz in exchange for common shares of Tuscany, on the basis of 0.31 of a common share of Tuscany for each common share of Diaz. Following the completion of the acquisition Tuscany intends to consolidate its common shares on the basis of one new share for every eight common shares outstanding. Assuming the acquisition is completed as proposed Humboldt will hold 43% of Tuscany's outstanding common shares. Humboldt believes this is a very positive development for the companies as it will result in a larger well financed company with increased operating efficiencies and reduced overhead and Humboldt has agreed to vote its shares in favor of the proposed transaction.
Humboldt Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2013 have been filed on SEDAR and can be found on Humboldt's website at www.humboldtcapital.com .
HIGHLIGHTS
| Three months ended March 31, | |||||||||||
| (Thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||
| Net gain on sale of investments | $ | 1,199 | $ | 3,299 | $ | 2,475 | |||||
| Unrealized increase (decrease) in investment value | $ | (6,340 | ) | $ | 627 | $ | (2,175 | ) | |||
| Earnings (Loss) and comprehensive earnings (Loss) for the period | $ | (5,299 | ) | $ | 3,876 | $ | 220 | ||||
| Earnings (Loss) per share, diluted | $ | (0.44 | ) | $ | 0.32 | $ | 0.02 | ||||
| Share capital | $ | 2,060 | $ | 2,062 | $ | 2,012 | |||||
| Retained earnings | $ | 25,335 | $ | 45,352 | $ | 60,184 | |||||
| Shareholders' equity | $ | 28,048 | $ | 48,003 | $ | 62,803 | |||||
| Cash and cash equivalents | $ | 6,443 | $ | 6,419 | $ | 7,465 | |||||
| Shares outstanding | 11,932 | 11,957 | 11,990 | ||||||||
| Net asset value per share, diluted | $ | 2.34 | $ | 3.95 | $ | 5.04 | |||||
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.
