RENO, NV, March 31 /CNW/ - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), today reported its financial and operating results for the fourth quarter and fiscal year ended December 31, 2009. This earnings release should be read in conjunction with Ram Power's MD&A and financial statements, which are available on the Company's website at www.ram-power.com and have been posted on SEDAR at www.sedar.com.
Concurrent with today's release, Hezy Ram, CEO of Ram Power, commented, "This has been an exciting start for Ram Power since its inception on October 20, 2009. The merger of the three predecessor companies, Polaris Geothermal Inc., Western Geothermal Corp. and Ram Power, Inc. along with an equity financing of CDN $179.4 million has provided our company with critical mass and a promising future. We have an established management team, an extensive inventory of geothermal properties and the balance sheet to develop them. We expect the first of our projects, the 36 MW San Jacinto Phase I expansion in Nicaragua to be on-stream in early 2011 and the second 36 MW Phase II expansion by year end 2011. In California, drilling of the 49.9 MW Orita project in the Imperial Valley started this month and successful drilling could allow construction to start in 2011. Other projects are under active investigation and we expect to be able to make further announcements during the year ahead."
He continued, "While the year end loss of $37 million is significant, it is largely due to the many pre-acquisition costs incurred by Polaris and Western before the merger, which are non-recurring. Losses of such magnitude are unlikely to be encountered going forward this year. We look forward to being able to report substantial progress in subsequent quarterly releases."
Ram Power's results for the fourth quarter and for the twelve months ended December 31, 2009 were negatively impacted by one time charges originated from its subsidiary Polaris and from the business combination completed on October 20, 2009. The summarized financial results of Ram Power for the three and twelve months ended December 31, 2009 and 2008 are summarized below:
For the For the For the For the
Three Three Twelve Twelve
Months Ended Months Ended Months Ended Months Ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
Total revenue $ 1,147,642 $ 1,240,370 $ 5,424,220 $ 4,758,360
Direct cost of
energy production 328,307 336,647 1,322,233 1,601,905
Expenses 7,519,676 1,214,760 13,707,820 5,565,061
Other loss 8,707,815 (947,256) 27,801,731 2,225,371
Net income/(loss) (15,408,156) 636,219 (37,407,564) (4,633,977)
share (0.15) 0.01 (0.37) (0.06)
Total assets 357,787,707 80,937,732 357,787,704 80,937,732
Total liabilities 16,001,693 28,602,064 16,001,393 28,602,064
Cash and cash
equivalents 123,341,372 748,336 123,341,372 748,336
Working capital 115,150,121 (21,836,677) 115,150,121 (21,836,677)
For the purpose of this summary, the results of Polaris for the three and
twelve months ended December 31, 2008 are used as comparatives because
for accounting purposes, the financial statements of the Company are
deemed to be a continuation of the financial statements of Polaris.
Included in the Company's net loss are the following Polaris' carry-over transactions: $1,239,000 in consulting fees related to Polaris financings; $1,275,870 (3 months - $566,416) of a write-down in Polaris' investment in Geysir Green Europe GmbH; $10,715,350 (3 months - $1,801,107) in accretion charges related to Polaris' CDN$27 million bridge loan and $10 million preferred share financings; $3,857,261 (3 months - $492,918) in foreign exchange losses due to the conversion of the CDN$27 million bridge loan financing by Polaris to US dollars; and $4,171,357 in interest and penalties.
Other transactions that had a negative impact on Ram Power's earnings and are not expected to recur in 2010 include a foreign exchange loss of $5,102,672 on the conversion of Ram Power's equity financing to US dollars and $1,305,780 in professional fees related to the business combination that closed on October 20, 2009.
Ram Power expects that without these one-time charges the Company will show improved results in 2010, while increasing its asset base at its geothermal power projects in Nicaragua and the United States.
Since October the Company has completed a project financing facility of $77 million for the Phase I expansion at the San Jacinto project in Nicaragua and construction is well underway and within budget for this 36 MW expansion. International Finance Corporation (IFC) is leading a syndicate to provide a project debt facility for the Phase II expansion phase to 72 MW. Construction of Phase II is planned to be conducted in parallel to Phase I. Planning and engineering for Phase II is already at an advanced stage. The Orita project is expected to go on line by the end of 2012 with 49.9 MW of generation capacity. The Company's New River project and other potential projects in the Imperial Valley, California are currently under consideration. Permitting has commenced for the Clayton Valley project in Nevada that has a 32 MW power purchase agreement with NV Energy.
With respect to the Geysers property acquired through Western, the Company expects to make an announcement shortly about plans to develop this project in the most beneficial way for the Company. Other geothermal concessions will continue to be evaluated in Nicaragua and Chile during 2010.
For the year 2010, Ram Power expects to record revenue from the sale of power and carbon credits of approximately $6 million. Ram Power is still in the early development stage and 2010 will be characterized by extensive development and construction activities. Ram Power plans to spend approximately $178 million in 2010 to advance its geothermal projects. Ram Power has sufficient financial resources through a combination of its funds and the committed loan proceeds to meet all of its anticipated obligations in the year 2010.
Hezy Ram, CEO of Ram Power, concluded, "Ram Power's mission is to be a world leader in geothermal power supply, and to this end, we are continuing on our course to bring our projects closer to their commercial operation and to bring clean, renewable energy to the people of North and Latin America."
About Ram Power, Corp.
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties and has an interest in geothermal projects in the United States, Canada, and Latin America.
Ram Power, Corp. will hold its inaugural earnings call to discuss the
2009 Year End and First Quarter financial and operating results on
Thursday, May 13, 2010 at 10:00am EST (7:00 am PST). Participant
information will be published in early May.
This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in this news release. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power, Corp. assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.
SOURCE Polaris Infrastructure Inc.
For further information: For further information: Steven Scott, Director of Investor Relations, Ram Power, Corp., Phone: (775) 398-3711, Email: email@example.com, www.ram-power.com