Toronto Venture Exchange Symbol: "WND"
Issued and Outstanding: 49,248,781
VANCOUVER, April 1 /CNW/ - Western Wind Energy Corp. ("Western Wind" or the "Company") announced today its financial results for the year ended December 31, 2009.
Highlights for the Year:
- Raised $6.3 million in new equity.
- Received zoning approval for its 120MW Windstar wind energy project.
- Engaged a senior lender to provide $200m in financing for Windstar
subject to final lender approval.
- Entered into a turbine reservation order for Windstar with a leading
- Received a 24 year extension of the Mesa land lease and the right to
repower and expand.
- Secured an 11MW PPA for a combined wind and solar project in Arizona.
- Signed an amendment to the Windstar PPA that updates the terms to
reflect the current market conditions and completion schedule.
- Secured additional prime wind and solar resource land in Tehachapi,
Subsequent to the year end:
- Closed two loan agreements with institutional investors for a total
of $2.5 million.
- Selected a Institutionally recognized EPC - BOP contractor for
- Commenced Engineering, design and preliminary construction on
2009 FINANCIAL RESULTS
The Company is pleased to announce a 10% increase in electricity production to 58,859 MWh for the year ended December 31, 2009 compared to 53,579 MWh for the year ended December 31, 2008. However lower natural gas prices led to a decrease in the average Short Run Avoided Cost electricity selling prices which resulted in revenues decreasing 45% to $2,798,496 compared to $5,116,652 for the year ended December 31, 2009. Net loss from continuing operations increased from $4,993,000, or fifteen cents ($0.15) per share, for the year ended December 31, 2008 to a net loss of $5,023,162, or twelve three cents ($0.12) per share. The slight increase in net loss from continuing operations for the period was due to lower revenues and no interest recovery in 2009, which were mostly offset by a $1,400,182 (34%) decrease in general and administration costs and decreases in foreign exchange losses and amortization. Net loss for the year was $5,023,162, or twelve cents ($0.12) per share, compared to a net loss of $2,269,275, or seven cents ($0.07) per share, for the prior year. Net loss last year included income from discontinued operations of $2,724,047 primarily relating to a one-time US$3,000,000 reduction of the loan principal due to the Mesa loan repayment before the agreed upon repayment date of June 24, 2008. The net gain recorded was $2,900,000 after taking into account a Mesa Loan extension fee of $100,000.
Although electricity production for the three months ended December 31, 2009 was similar to the same period in the prior year, the decrease in average Short Run Avoided Cost electricity selling prices resulted in revenues decreasing 53% to $321,952 from $687,666 for the three months ended December 31, 2008. Despite the drop in revenues, net loss for the three months ended December 31, 2009 improved 33% to $1,512,001 or two cents ($0.02) per share compared to a net loss of $2,251,537 or seven cents ($0.07) per share for the comparable period in 2008 due primarily to a reduction in amortization, stock based compensation and travel expenses.
The Company's financial position continued to strengthen as cash increased from $1,817,371 as at December 31, 2008 to $1,882,152 as at December 31, 2009. Shareholders equity improved 11% from $22,442,493 last year to $24,843,162 primarily as a result of $6.3 million of new equity from the issue of shares and warrants.
The information in this news release should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2009, prepared in accordance with Canadian generally accepted accounting principles, and the Management Discussion and Analysis for the year ended December 31, 2009. The financial statements and MD&A will be available at the Company's website at www.westernwindenergy.com and at www.sedar.com.
Western Wind is a vertically integrated renewable energy electrical production company that currently owns over 500 wind turbines with 34.5 MW of rated capacity and a further 131MW of expansion power purchase agreements in the States of California and Arizona. Western Wind further owns additional development assets for both Solar and Wind Energy in California, Arizona, Ontario, Canada and a development team 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 Energy 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
Chief Executive Officer and DIRECTOR
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 intended use of proceeds from the Offering. 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 Company's ability to profitably utilize the lands as planned and the other 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: For further information: 1326 - 885 WEST GEORGIA STREET, VANCOUVER, BC, V6C 3E8, TELEPHONE: (604) 685-WIND (9463), FACSIMILE: (604) 685-9441, www.westernwindenergy.com