Toronto Stock Exchange (Venture) Symbol: "WND"
Issued and Outstanding: 59,061,994
VANCOUVER, May 31, 2011 /CNW/ - Western Wind Energy Corp. (TSXV: WND)
(the "Company") announced today, its consolidated financial results
for the interim period ended March 31, 2011.
Highlights for Quarter 1 2011
The Company signed a 20-year fixed price power purchase agreement with
the Puerto Rico Electric Power Authority ("PREPA") for a 30 MW solar
project in Yabucoa, Puerto Rico.
Construction on both our Kingman and Windstar Wind Farms are going well
and both projects are on budget and close to schedule. Initial
operations are expected to commence in quarters three and four 2011,
The Company engaged Rabobank as its exclusive financial advisor to
provide financial advisory services in connection with the potential
placement of tax equity and debt financing for the Yabucoa project. The
Company intends to close the financing by the fourth quarter of 2011
and begin construction before the end of 2011 with the intention of
qualifying the project for the US Federal Government's 30% cash grant.
Effective January 1, 2011, the Company reports under US Generally
Accepted Accounting Principles ("US GAAP") and in US dollars.
Quarter 1 2011 Results
The Company generated a loss of $398,098 for the three months ended
March 31, 2011 compared to a loss of $1,037,526 for the three months
ended March 31, 2010. Basic and diluted loss per share was ($.01) per
share for the three months ended March 31, 2010 compared to a loss of
($.02) per share for the three months ended March 31, 2010.
For the three months ended March 31, 2011, the Company's Mesa and
Windridge wind farm sales were $511,350 compared to $491,140 for the
three months ended March 31, 2010. The increase in energy sales was
primarily due to a 38% increase in energy production partially offset
by a 25% decrease in price due to lower natural gas prices. The
increase in energy production was due to a slightly higher than normal
wind year during quarter 1 2011 (2% above the 10 year average) compared
to a low wind year in quarter 1 2010 (26% below the 10 year average).
For the three months ended March 31, 2011, the Company incurred
$2,153,164 in continuous operating expenses compared to $1,675,230 for
the three months ended March 31, 2011. The increase in continuous
operating expenses primarily related to an increase of $333,338 in
general and administrative expenses and an increase of $103,065 in
interest on loans payable.
The Company's general and adminstrative expense increased primarily
related to an increase in stock based compensation expense related to
the issuance of 3,100,000 options to the Company's contractors,
employees and directors in December 2010 and additional professional
fees, salary and consulting fees required to accommodate the additonal
work load relating to the construction of our Windstar and Kingman wind
The Company's interest expense increased relating to new corporate debt
received in December 2010.
Mark to market gain (loss) on Canadian dollar warrants
For the three months ended March 31, 2011, the Company recorded $834,472
in mark to market gain (loss) on Canadian dollar warrants compared to
$NIL for the three months ended March 31, 2010. The gain is reported
in the statement of operations in accordance with US GAAP which was
adopted by the Company as of January 1, 2011.
Income Tax Recovery
For the three months ended March 31, 2011, the Company incurred a income
tax recovery of $404,533 for the three months ended March 31, 2011, up
from $123,716 for the three months ended March 31, 2010. The increase
was directly related to an increase in non-capital loss carry forwards
during the quarter that are now being recognized as a deferred income
tax asset ("DITA").
CHANGE IN FUNCTIONAL CURRENCY
Due to the successful completion of its construction financings obtained
in 2010 for its 120MW Windstar and 10.5MW Kingman Wind Farms the
Company changed its functional currency to US dollars effective
December 31, 2010 to reflect the Company's primary economic environment
and operating currency.
Susbequent to the release of our annual consolidated financial
statements for the year ending December 31, 2010 the Company identified
a disclosure difficiency in its annual consolidated financial
statements relating to the change in functional currency. The
previously released annual consolidated financial statements for the
year ending December 31, 2010 complied with all of the disclosure
requirements of Canadian Generally Accepted Accounting Principles
("GAAP"), however Note 24 to the annual consolidated financial
statements related to the reconciliation of Canadian and United States
generally accepted accounting principles ("US GAAP") did not contain
the necessary disclosure relating to "Share Purchase Warrants."
Under GAAP, all of the Company's outstanding share purchase warrants
should be classified and accounted for as equity on the Company's
financial statements. Under US GAAP, in accordance with ASC 815, Derivatives and Hedging, all share purchase warrants with an exercise price denominated in a
currency other than the Company's functional currency are to be
classified and accounted for as a financial liability and measured at
fair value. As a result, the Company has restated its December 31,
2010 US GAAP retained deficit to reflect the mark to market impact
related to the fair value of these warrants as disclosed in note 24 by
increasing the deficit by $1,417,702. Basic and diluted earnings per
share remain unchanged as previously reported. The Company is
releasing the restated annual consolidated financial statements
concurrenlty with its interim consolidated financial statements for the
period ending March 31, 2011. The March 31, 2011 interim consolidated
financial statements contain a mark to market fair value warrant gain
of $834,472, partially off setting the retained deficit adjustment
reported as at December 31, 2010. This adjustment has no impact on the
cash flow of the Company.
About Western Wind
Western Wind is a vertically integrated renewable energy electrical
production company that currently owns over 500 wind turbines with 165
MW of net rated capacity either in production or in construction in the
States of California and Arizona. Western Wind further owns additional
development assets for both solar and wind energy in California,
Arizona, and Ontario, Canada; and in the Commonwealth of Puerto Rico.
Western Wind is in the business of owning and acquiring land sites and
technology for the production of electricity from wind and solar
energy. Management of Western Wind includes individuals involved in the
operations and ownership of utility scale wind energy facilities in
California since 1981.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeffrey J. Ciachurski
President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this press release constitute "forward-looking
statements" under applicable securities laws, which involve known and
unknown risks, uncertainties and other factors that may cause actual
results to be materially different from any future results, performance
or achievements expressed or implied by such statements. Words such as
"expects", "anticipates", "intends", "projects", "plans", "will",
"believes", "seeks", "estimates", "should", "may", "could", and
variations of such words and similar expressions are intended to
identify such forward-looking statements. Such statements in this news
release include, but are not limited to, the Company's discussion
concerning the Offer. These statements are based on management's
current expectations and beliefs and actual events or results may
differ materially. There are many factors that could cause such actual
events or results expressed or implied by such forward-looking
statements to differ materially from any future results expressed or
implied by such statements. Such factors include, but are not limited
to, the state of the Company's business activities and various factors
discussed in the Company's annual report and annual information
contained in the Company's 20F Annual Report filed with the United
States Securities and Exchange Commission and securities regulators in
Canada. Forward-looking statements are based on current expectations
and the Company assumes no obligation to update such information to
reflect later events or developments, except as required by law.
SOURCE Western Wind Energy
For further information:
| 1326 - 885 WEST GEORGIA STREET || || || || || || TELEPHONE: 604.685.WIND (9463) |
| VANCOUVER, BC V6C 3E8 || || || || || || FACSIMILE: 604.685.9441 |
| || || || || || || www.westernwindenergy.com |