VANCOUVER, Sept. 10 /CNW/ - The Company made significant advances in
fiscal 2007 with activity in operations, project development, engineering
services and capitalization. In operations, the 3.8 MW Mears Creek
hydroelectric plant had its highest annual generation since commencement in
January 2004 while the Kyuquot electrical utility completed its first full
year of operation. In project development, the construction of the 2.8 MW
Cypress Creek hydroelectric plant was advanced and electricity purchase
agreements with BC Hydro were executed for three additional hydroelectric
plants totaling 16.8 MW of installed capacity. The value of engineering
services exceeded the levels of any of the last five years. Regarding
capitalization, the Company received $1.29 million from the sale of shares of
Coast Mountain Power Corp. ("Coast") and NovaGold Resources Inc ("NovaGold")
and closed a private placement of shares for gross proceeds of $2.30 million
in June 2007.
Revenue increased to $2,304,375 in fiscal 2007 from $1,713,537 in fiscal
2006 while net income before discontinued operations increased to $1,015,053
from $49,964 in fiscal 2006. Net income decreased to $1,015,053 in fiscal 2007
from $1,647,198 in fiscal 2006 (discontinued operations, net of taxes in 2006
was $1,597,234 in fiscal 2006, which includes the Michigan plants that were
sold in March 2006). Earnings per share in fiscal 2007 were $0.04 per share as
compared to $0.07 earnings per share in fiscal 2006.
As at June 30, 2007, the cash and cash equivalent balance was $1,748,653.
In addition, the subscription receivable in the amount of $1,023,000 that was
outstanding at June 30, 2007 was received by the Company in July 2007. On June
28, 2007 the Company announced the signing of a commitment letter with the
Canadian Western Bank for a loan of up to $3.5 million relating to the
construction of the Cypress Creek hydroelectric plant.
The Company presently owns and operates a 3.8 MW hydroelectric plant and
an electrical utility both located on Vancouver Island, British Columbia.
Construction of the 2.8 MW Cypress Creek Hydro Project is well advanced and is
expected to be operational in early 2008.
The provincial government in British Columbia has endorsed the
development by private industry of environmentally sound hydroelectric plants.
In this regard, BC Hydro has recently announced the draft conditions of a
Standing Offer Electricity Purchase Agreement for Projects under 10 MW, which
it intends to formalize in early 2008. The Company anticipates that the
Cypress Creek Hydro Project will be one of the earliest plants being awarded
this offer. In addition, the Company has applied for the proposed annual
payments of $10 per MWH under the Federal ecoEnergy Initiative.
The Company expects to advance a number of other projects that have
signed EPAs under the BC Hydro 2006 Call or as projects to be submitted to BC
Hydro under the Standing Offer or other Calls.
Synex International Inc. is a public company listed on the TSX with
businesses that cover the development, ownership and operation of electrical
generation facilities and the provision of consulting engineering services in
water resources, particularly hydroelectric facilities.
Greg Sunell, President
For further information:
For further information: 400 - 1444 Alberni Street, Vancouver, BC, V6G
2Z4, Phone (604) 688-8271 Ext. 309, Fax (604) 688-1286, E-mail:
email@example.com, Web Site: www.synex.com