VANCOUVER, May 13 /CNW/ - Plutonic Power Corporation (the "Company") (PCC: TSX) announced today a progress update and its financial results in Canadian Dollars for the first quarter ended March 31, 2010.
During the first quarter of 2010, construction continued on a timely basis at the East Toba River and Montrose Creek Project ("Toba Montrose"). Construction commenced at the Dokie Wind Project as did the commencement of transportation of the wind towers and turbine equipment to site. In addition, the Company and GE Energy Financial Services ("GE") were offered a 40 year Electricity Purchase Agreement ("EPA") for the 124 MW Upper Toba Project. This EPA was executed with BC Hydro in April.
TOBA MONTROSE UPDATE
Toba Montrose is being built with our partner GE through the Toba Montrose General Partnership ("TMGP") in conjunction with our First Nations partners, the Klahoose, Sliammon and Sechelt First Nations, and is fully financed, on-budget and on-schedule to reach commercial operation during 2010. All the electricity to be generated from Toba Montrose will be sold to BC Hydro under a 35 year EPA
Milestones during the first quarter of 2010 include:
- 93% completion of the engineering, procurement and construction
- Completed work includes the transmission line, East Toba
powerhouse, penstock and intake
- Ongoing work includes commissioning of East Toba plant, and
completion of Montrose powerhouse, penstock and intake
The transmission line from the Toba Montrose Project is expected to be energized in May for commissioning and testing of electrical components related to the project. Original construction schedules called for commercial operation of East Toba for July, and Montrose Creek in November 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 144 megawatt ("MW") Dokie Wind Project in conjunction with our First Nations partners, the Halfway River, West Moberly and Saulteau First Nations and McLeod Lake Indian Band. 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 is located 1,100 kilometres northeast of Vancouver, near Chetwynd, BC and it will use 48 3-MW wind turbines to generate approximately 333 gigawatt hours ("GWh") of electricity annually net of transmission line losses. Completion of construction and commencement of electricity sales to BC Hydro is scheduled for early 2011 under a 25 year EPA.
Mortenson Canada Corporation ("Mortenson") mobilized to site early January to commence the balance of construction on the Dokie Wind Project. As of March 31, subcontractors were active on all unfinished turbine site locations. Deliveries of the remaining 40 turbines are in progress to a lay down area in Chetwynd. All site roads are complete and Mortenson commenced pouring of concrete foundations in mid-April. Support from the community has been very positive.
2010 UPDATES AND FORECASTS
For the remainder of 2010, in addition to commencing commercial operations at Toba Montrose and commencing the commissioning processes at the Dokie Wind Project, Plutonic will continue to have a very busy year. Upper Toba goals to be completed by year end are: to obtain construction permits, licenses and authorizations; commence project financing discussions; select and engage a contractor; conclude an agreement with the Klahoose First Nation and enter into a formal partnership agreement with GE.
As well, an evaluation on the 156 MW Dokie Expansion Project is underway. Once completed and if deemed feasible, Plutonic and GE would seek to obtain an EPA with BC Hydro, obtain construction permits, licenses and authorizations, seek project financing, select and engage a contractor, and finalize First Nations agreements and enter into a formal partnership agreement with GE.
For the first quarter ended March 31, 2010, the Company incurred a net loss of $2.1 million ($0.03 net loss per common share) compared with a net loss of $11.3 million ($0.26 net loss per common share) for the quarter ended March 31, 2009. The Company's net loss for the quarter ended March 31, 2010 is comprised of $2.1 million (March 31, 2009 - $2.1 million) in net cash operating expenditures, and $28,929 in net non-cash operating gains (March 31, 2009 - $9.2 million loss), including share based compensation, share based guarantee fees, and an unrealized gain on the fair value adjustment of interest rate swaps.
As at March 31, 2010, the Company had $10.6 million in consolidated cash, $44.6 million in consolidated cash restricted to construction and consolidated working capital of $43.7 million. Excluding its respective proportionate 40% share of TMGP cash and working capital and 51% share of DGP cash and working capital as at March 31, 2010, the Company had $7.9 million in cash and $10.9 million in working capital.
As at March 31, 2010, the Company had recorded $253.4 million in long term debt, $293.4 million in property plant and equipment and $5.8 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 March 31, 2010 unaudited interim consolidated 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 http://www.plutonic.ca/s/FinancialReports.asp
About Plutonic Power Corporation
British Columbia based Plutonic Power is a Canadian leader in clean energy development. Our vision is to create a legacy through the development of renewable, reliable, clean energy projects. Plutonic is a partner in 340 megawatts of hydro and wind projects that are under construction. In 2010 commercial operations will start at the $660 million, 196 megawatt East Toba River and Montrose Creek run-of-river hydroelectric project. Active construction is also underway on the $227.5 million, 144 megawatt Dokie Wind Project, diversifying Plutonic Power's clean energy portfolio. Plutonic is committed to working in partnership with First Nations, stakeholder groups and local communities in the development of all of its projects. By developing its suite of projects, Plutonic will help British Columbia realize its goal of becoming electricity self-sufficient by 2016 utilizing 90% clean domestic generation sources, will create employment opportunities and will play a significant role in the fight against climate change.
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, Investor Relations, Office: (604) 669-4999 ext 1034, Cell: (604) 314-3362, email@example.com