VANCOUVER, Nov. 6 /CNW/ - Revenue for the three months ended September
30, 2007 increased to $502,363 as compared to $349,363 in the corresponding
period in the previous year. The increase was a result of higher revenue from
the Engineering Division as well as increased electricity sales from both the
3.4MW Mears Creek Hydro Plant and the Kyuquot Utility. The Mears Plant
generated 128% of the average generation of the last three fiscal years and
the Kyuquot Utility, now in its second year of operation, had a 37% increase
in revenue over the corresponding period in the previous year.
The net loss for the three months ended September 30, 2007 was $68,083 as
compared to net income of $110,103 in the corresponding period in the previous
year. During the first quarter of 2008, the Company did not sell any of its
shares of NovaGold Resources Inc., whereas in the first quarter of 2007, the
Company had a gain on sale of NovaGold and Coast Mountain Power Corp. shares
of $262,142. The Company held 51,563 share of NovaGold at an acquisition cost
of $12,447. The share price has recently improved beyond the price of $16.24
at September 30, 2007 and the Company is selling some shares at the higher
During the first quarter of 2008, capital expenditures totaling $1.3
million were mostly spent advancing the Cypress Creek Hydro Plant. As at
September 30, 2007, the Cypress Creek Hydro Plant was about 60% complete with
work progressing on each of the intake, penstock and powerhouse substructure.
Construction of the plant is scheduled to be complete during March 2008, which
is about the time that BC Hydro is expected to make available its Standing
Offer Call for proposals for electricity purchase agreements. The Company
intends to submit a proposal promptly after the Standing Offer is available.
During the first quarter, the Company continued to advance the 3.4 MW
McKelvie Creek Hydro Project, the 4.0 MW Barr Creek Hydro Project and the 10
MW Victoria Lake Hydro Project, all located on Vancouver Island, British
Columbia. An electricity purchase agreement with BC Hydro was executed for
each of these three projects on August 31, 2006 and with target commercial
operation dates of October 1, 2008, May 1, 2009 and May 1, 2010 respectively.
On July 26, 2007, the Company announced that electricity purchase agreement
for the 3.4MW McKelvie Creek Hydro Project was terminated due to a significant
increase in estimated capital costs. Work is continuing at a reduced rate
while the Company works towards an alternative electricity purchase agreement
including the potential increase in installed capacity to 5MW.
For additional information, the Financial Statements and Management
Discussion and Analysis for the Company are available at www.synex.com or at
Synex International Inc. is a public company trading on the Toronto Stock
Exchange (TSX) with businesses involved with the development, ownership and
operation of electrical generation facilities, as well as the provision of
consulting engineering services in water resources, particularly for
hydroelectric and other power facilities.
Greg Sunell, President
This press release contains forward-looking statements that involve risks
and uncertainties. These statements reflect our current expectations and are
subject to change. They are subject to a number of risks and uncertainties
including, but not limited to, changes in economic conditions, risks
associated with the construction and operation of hydroelectric facilities and
changes in government policies.
For further information:
For further information: Greg Sunell, President, 400 - 1444 Alberni
Street, Vancouver, BC, V6G 2Z4, Phone (604) 688-8271 Ext. 372, Fax (604)
688-1286, E-mail: email@example.com, Web Site: www.synex.com