Canada: NaiKun Releases Financial Results
NaiKun Wind Energy Group Inc. (the “Company” or “NaiKun Wind”) announced its financial results for the year ended September 30, 2012, a fiscal period during which the Company continued to explore ways to forward the NaiKun Wind Project while controlling its costs.
A substantial restructuring effort was undertaken in fiscal 2010 and the Company has maintained both the expense profile and the strategic efforts as laid out by the Board of Directors. NaiKun Wind remains confident that these undertakings 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, 2012, NaiKun Wind had $5.3 million in cash and cash equivalents, compared to $6.8 million at the end of September 2011.
- For the fiscal year ended September 30, 2012, NaiKun Wind incurred a net loss of $2.4 million ($0.06 per share), compared to $2.5 million ($0.06 per share) for the year ended September 30, 2011.
- For fiscal 2013 the Company has budgeted cash expenditures of $1.2 million which, given the Company’s existing cash position, could sustain operations into 2015 and beyond.
On December 20, 2012 NaiKun Wind signed a Preferred Supplier Agreement with Siemens Canada Limited. Siemens is the largest manufacturer of offshore wind turbines and the Company looks forward to having their assistance in the development of the project with the Siemens New SWT-4.0-130 4MW Turbine. In the months ahead Siemens and NaiKun will be presenting the 400 MW Phase I project to the government and interested parties in BC.
With the new turbine and other improvements in the project development, NaiKun estimates the plant gate levelized cost for its Phase I project will be competitive.
NaiKun advised that the Company’s use permits are expected to be consolidated and extended to 2018.
NaiKun Wind remains optimistic that the significant energy demand forecasts for the North Coast of B.C. will benefit NaiKun. The NaiKun Wind project is the only project of significant scale in the Prince Rupert/Kitimat area, where the proposed LNG projects will be built, that is permitted and essentially ‘shovel-ready’. It is difficult to not foresee the need for locally generated electricity to supply a portion of this incremental demand.
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 130,862 shares to its directors for the quarter ended December 31, 2012. Additionally, the Company issued 156,250 common shares to the Company’s CEO, for the quarter ended December 31, 2012, as the share portion of his compensation. All shares were issued at the closing share price for December 31, 2012 of $0.08.
Press release, January 17, 2013; Image: alpha ventus