NaiKun Wind Energy Group Inc. yesterday announced its financial results for the year ended September 30, 2011, a fiscal period during which the Company continued forwarding the NaiKun Wind Project while reducing the Company’s operating costs as compared to the previous year.
A substantial restructuring effort was undertaken in the third quarter of fiscal 2010 and the Company has maintained both the expense profile and the strategic efforts as laid out by the Board of Directors at that time.
NaiKun Wind is confident that the Company’s undertakings, including our corporate restructuring and new strategies for procuring an electricity supply contract, represent the best available opportunities to support the advancement of the project and maximize shareholder value.
An overview of NaiKun Wind’s year-end results and projected expenditures include:
As at September 30, 2011, NaiKun Wind had $6.75 million in cash and cash equivalents, compared to $7.77 million at the end of September 2010.
For the fiscal year ended September 30, 2011, NaiKun Wind incurred a net loss of $2.53 million ($0.08 per share), compared to $5.82 million ($0.15 per share) for the year ended September 30, 2010.
For fiscal 2012 the Company has budgeted cash expenditures of $1.5 million which, given the Company’s existing cash position, will sustain operations into 2014 and beyond.
Effective April 1, 2010, as stated in the Company’s news release of May 20, 2010, compensation to members of the Board was reduced by 50%. As part of the newly lowered Board compensation it was also decided that going forward 25% of that compensation would be paid in the form of common shares in lieu of cash. Accordingly, the Company has just issued 87,241 shares to its directors for the quarter ended December 31, 2011. Additionally, the Company issued 104,167 common shares to the Company’s CEO, for the quarter ended December 31, 2011, as the share portion of his compensation. All shares were issued at the closing share price for December 31, 2011 of $0.12.
NaiKun Wind remains optimistic that the very significant energy demand forecasts for the North Coast of B.C. will benefit NaiKun. The NaiKun Wind Project is the only sizeable permitted project in the area.
The demand for power in the region is dramatically increasing as new projects are being proposed.
At least 3 LNG groups are in active negotiations, advanced planning and preliminary design work in the Kitimat/Prince Rupert area. These facilities will require up to 2500 MW of power to liquefy the natural gas, power that this region does not have.
Completion of the N.W. Transmission Line to provide power for the resource rich Stewart Cassiar area will also add a further demand of 500-1000MW.
The Rio Tinto Alcan recent announcement of the new larger Kitimat smelter will consume all the firm power from Kemano, some of which was previously sold to BC Hydro.
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
NaiKun Wind is a British Columbia-based renewable energy company with offices in Vancouver, Masset and Skidegate. Located on B.C.’s northwest coast, where the wind resource is one of the strongest and most consistent in the world, NaiKun Wind’s 396MW offshore wind project would generate enough energy to provide electricity to 130,000 B.C. homes. The NaiKun Wind project is at an advanced stage of development with environmental approvals from the Provincial and Federal Governments and agreements in place with key suppliers and First Nations. Given its development status, construction can begin within two years of the award of an electricity purchase agreement.
Offshore WIND staff, January 27, 2012; Image: naikun