TORONTO, ONTARIO--(Marketwire - March 30, 2012) - Primary Corp. (TSX:PYC) ("Primary" or the "Company") announces that it has reported a total comprehensive loss for the year ended December 31, 2011 of $10.4 million. The loss was due primarily to an unrealized decline in the value of the Company's investment portfolio. As of December 31, 2011, the Company had total assets of $121.0 million, liabilities of $5.9 million, shareholders' equity of $115.1 million and a net asset value per share of $5.96. The financial statements along with management's discussion and analysis can be found on SEDAR (www.sedar.com) or on Primary's website (www.primarycorp.ca).
The Primary portfolio maintained a defensive stance despite the improvement in markets. Cash positions were roughly one half of the portfolio as the Company did not find any acceptable senior secured debt with warrants deals during the quarter. The Company's broad macroeconomic view remains unchanged despite improvements in the European sovereign debt situation. The Company continues to believe the global economy is in the midst of a sovereign debt crisis with Europe only one of the three problem areas. Japan and the U.S. also have elevated debt/GDP ratios and we feel that the world will not be a safer place to invest until the U.S. is on a sustainable path to lower debt/GDP.
Given Primary's broad macroeconomic view, the Company is retaining a defensive stance and continues to look for senior secured debt with equity warrants for early stage or pre production resource projects. The Company believes the risk reward characteristics of these investments are very attractive. It is important to note though that these transactions tend to come available when markets are very difficult and these companies do not have the ability to raise equity capital at acceptable prices.
The Company expects volatility to remain for some time and accordingly plans to maintain a defensive stance. Primary was pleased to complete its first senior secured lending transaction and looks forward to adding similar transactions in the coming quarters.
About Primary Corp.
Primary trades on the Toronto Stock Exchange under the symbol PYC. Primary is focused on natural resource lending.