Nevada Geothermal Power Inc. (NGP) announced results yesterday for the year ending June 30, 2010. Gross margin for the year was $4.2 million and net loss increased to $18.0 million.
Company highlights include the Faulkner 1 power plant start up October 10, 2009. A U.S. federal government cash grant was received ($57.9 million) during November 2009. Power production increased to average 37 MW by the fourth fiscal quarter. Highlights also include an application with John Hancock for a loan guarantee under the FIPP (Federal Institutions Partnership Program) and conditional commitment June 15, 2010.
Nevada Geothermal Power Inc.’s President and CEO Mr. Brian Fairbank said, “We are pleased with the performance of the Faulkner 1 power plant at Blue Mountain and the transition of the Company from a developer to a significant power producer. Revenue from power sales increased steadily from start up through each of the last three quarters. The plant generated approximately 37 MW (net) on average during the fourth fiscal (April – June) quarter and gross margin increased to $3.7 million, or 60% of the $6.2 million revenue. The Company expects further improvement in plant output going forward with further drilling.”
Subsequent to the Company’s year end, the John Hancock $98.5 million loan closed with fixed interest at 4.14% for a 20 year term, permitting further development. An $8.4 million drilling fund was included in the John Hancock loan facility, and a $10.4 million equity issue closed during September 2010.
Mr. Fairbank said, “NGP is continuing to drill at Blue Mountain in order to further distribute re-injection fluid, increase power production and offset a potential 2.5% per year power production decline. The Company has also been assessing low-cost capital by monetizing its tax benefits and/or from a potential cash grant related to additional construction since the plant was placed in partial service. NV Energy and TCW, the Company’s power off-taker and mezzanine lender, continue to work cooperatively with us to optimize the operation of the Blue Mountain ‘Faulkner 1’ power plant.”
The Company’s full financial results are available at www.sedar.com.
Headquartered in Vancouver, British Columbia, Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1 geothermal plant in Nevada. It is a growing, renewable energy developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources in the United States. The Company currently owns a 100 percent leasehold interest in five properties. These five are Blue Mountain, Pumpernickel Valley, Edna Mountain and Black Warrior in Nevada, and Crump Geyser in Oregon.
These properties are at different levels of exploration and development. NGP estimates a potential of between 150 MW and 300 MW from their current leaseholds.
For more information visit: www.nevadageothermal.com
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