Marketwire
CALGARY, ALBERTA--(Marketwired - Aug. 29, 2013) - Humboldt Capital Corporation (TSX VENTURE:HMB)
For the first half of 2013 Humboldt recorded a loss of $10.4 million, or $0.88 per share. Humboldt lost $435 thousand on the sale of investments and a reduction in the unrealized value of the balance of its investment portfolio of $9.6 million. The Company's net asset value at June 30, 2013 was $22.8 million, or $1.92 per share compared to $33.3 million or $2.77 per share at the beginning of the year.
Humboldt ended the period with cash reserves of $7.2 million. This should provide the Company with financial flexibility for new investments during this period of weak stock prices in commodity related entities.
Subsequent to the end of Q2 2013 a significant event involving two of Humboldt's related portfolio holdings was completed. Tuscany Energy Ltd. acquired all the outstanding shares of Diaz Resources Ltd. in exchange for common shares of Tuscany, and consolidated its common shares on the basis of one new share for every eight common shares outstanding. Humboldt holds approximately 8.0 million post consolidated shares, representing 43% of Tuscany's outstanding common shares.
Humboldt believes this is a very positive development for the companies as it results in a larger, more adequately financed company that should have increased operating efficiencies and reduced overhead. Subsequent to the completion of the acquisition Tuscany has drilled three heavy oil development wells in the Macklin and Evesham area of Saskatchewan which are now on production.
Humboldt Financial Statements and Management's Discussion and Analysis for the six months ended June 30, 2013 have been filed on SEDAR and can be found on Humboldt's website at www.humboldtcapital.com
| HIGHLIGHTS | |
| | |
| | Six months ended June 30, | |
| (Thousands, except per share amounts) | | 2013 | | | 2012 | | | 2011 | |
| Net gain (loss) on sale of investments | $ | (435 | ) | $ | 5,516 | | $ | 3,919 | |
| Unrealized decrease in investment value | $ | (9,568 | ) | $ | (10,788 | ) | $ | (13,460 | ) |
| Loss and comprehensive Loss for the period | $ | (10,479 | ) | $ | (5,601 | ) | $ | (8,830 | ) |
| | Loss per share, diluted | $ | (0.88 | ) | $ | (0.47 | ) | $ | (0.74 | ) |
| Share capital | $ | 2,060 | | $ | 2,062 | | $ | 2,012 | |
| Retained earnings | $ | 20,155 | | $ | 35,875 | | $ | 51,134 | |
| Shareholders' equity | $ | 22,871 | | $ | 38,566 | | $ | 53,805 | |
| Cash and cash equivalents | $ | 7,271 | | $ | 8,510 | | $ | 843 | |
| | | | | | | | | | |
| Shares outstanding | | 11,932 | | | 11,957 | | | 11,990 | |
| Net asset value per share, diluted | $ | 1.92 | | $ | 3.19 | | $ | 4.34 | |
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.
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).
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