VANCOUVER, Aug. 10 /CNW/ - Plutonic Power Corporation (the "Company") (PCC: TSX) announced today a progress update and its financial results in Canadian Dollars for the three and six month periods ended June 30, 2010.
TOBA MONTROSE UPDATE
Toba Montrose General Partnership ("TMGP"), a partnership between the Company and GE Energy Financial Services, a unit of GE (NYSE: GE), has commenced selling electricity to BC Hydro and Power Authority ("BC Hydro") under an Electricity Purchase Agreement ("EPA") from power generated by the East Toba River and Montrose Creek generation facilities. TMGP received confirmation from BC Hydro that Toba Montrose has met its guaranteed commercial operations date ("COD") commitment under the EPA. Both facilities are now operating at full capacity while their commissioning continues.
The test operations of the two facilities remain under the control of TMGP's contractor Peter Kiewit Sons Co. ("Kiewit"), who has constructed Toba Montrose under a fixed price construction contract. TMGP will sell all of the power generated from the two facilities to BC Hydro under a 35-year agreement. Substantial completion and handover of the facilities to TMGP is expected by the end of the third quarter after further operator training, testing and other commissioning activities. Until substantial completion is achieved, revenues from power sales will be credited against capital costs. As a bonus for early completion, Kiewit is entitled to a portion of electricity sales from the East Toba River facility prior to July 1, 2010, and from the Montrose Creek facility prior to November 1, 2010. TMGP expects the Toba Montrose facilities to be substantially complete before the end of the third quarter of 2010.
DOKIE WIND PROJECT UPDATE
During the fourth quarter of 2009, the Company and GE formed Dokie General Partnership ("DGP"), to acquire, finance, complete the construction of and operate, the Dokie Wind Project. DGP acquired the partially completed and fully permitted Dokie Wind Project from EarthFirst Canada Inc. DGP arranged debt financing of $175 million and the Company and GE contributed $52.5 million of project equity, to finance the completion of the Dokie Wind Project. The Dokie Wind Project, located 1,100 kilometres northeast of Vancouver, near Chetwynd, BC, will use 48 Vestas V90 wind turbines and is expected to generate a long term average of 340,000 megawatt hours of electricity annually. Completion of construction and commencement of electricity sales to BC Hydro are scheduled for early 2011 under a 25 year EPA.
Mortenson Canada Corporation mobilized to site in early January, 2010 to commence the balance of construction on the Dokie Wind Project. Deliveries of the remaining 40 turbines to a lay down area in Chetwynd, along with all site roads and wind turbine foundations were completed by the end of the second quarter. Turbine erection for the remaining 43 units commenced in late June 2010 and this will be the primary site activity during the third quarter of 2010. The substation, the 234 KV transmission line and the 35 KV collector lines are scheduled for completion in the fourth quarter of 2010. Support from the community has been very positive and construction activity continues to be on schedule.
For the second quarter ended June 30, 2010, the Company incurred a net loss of $1.8 million ($0.03 net loss per common share) compared with a net loss of $2.1 million ($0.05 net loss per common share) in the same period in 2009. The Company's net loss for the quarter ended June 30, 2010 is comprised of $1.8 million (June 30, 2009 - $2.4 million) in net cash operating expenditures, and $15,369 in net non-cash operating gains (June 30, 2009 - $214,709), including share based compensation, loss on disposal of investments, and an unrealized gain on the fair value adjustment of interest rate swaps.
As at June 30, 2010, the Company had $13.0 million in consolidated cash, $34.0 million in consolidated cash restricted to construction and consolidated working capital of $32.9 million. Excluding its respective proportionate 40% share of TMGP cash and working capital and 51% share of DGP cash and working capital as at June 30, 2010, the Company had $8.5 million in cash and $8.5 million in working capital.
As at June 30, 2010, the Company had recorded $268.6 million in long term debt, $317.0 million in property plant and equipment and $6.0 million in intangible assets, based on its 40% share in TMGP and 51% share in DGP. The long term debt of TMGP and DGP are secured by the assets of TMGP and DGP respectively and are non-recourse to the other assets of the Company.
This financial summary should be read in conjunction with the Company's June 30, 2010 unaudited consolidated interim financial statements and Management's Discussion and Analysis, both of which are available on www.sedar.com and on the Plutonic Power Corporation web site at
About Plutonic Power Corporation
Plutonic is a Canadian based company developing and operating clean power projects. Plutonic is a partner in 1,700,000 megawatt-hours per year of hydro and wind projects. Commercial operations have now been achieved at the first of two facilities in the Toba Montrose Project. Active construction is also underway on the $227.5 million Dokie Wind Project, diversifying Plutonic Power's clean power portfolio. For additional information please contact:
The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release. Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
SOURCE PLUTONIC POWER CORPORATION
For further information: For further information: Lisa May, Director, Investor Relations, Office: 604-669-4999 ext 1034, Cell: 604-314-3362, email@example.com