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Nevada Geothermal releases results for 2010 financial year

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 29 Sep 2010

Canadian listed Nevada Geothermal Power announces financial results for the year ended June 30, 2010 with a gross margin of US$4m and a net loss of US$17.5m.

In a release, “Nevada Geothermal Power Inc. (NGP) announced results for the year ending June 30, 2010. Gross margin for the year was $4.2 million and the net loss increased to $18.0 million. The full financial resultsare available at www.sedar.com and on the Company’s website at http://www.nevadageothermal.com.

Commenting on the results, the Company’s president and CEO Mr. Brian Fairbank said, “We are pleased with the performance of the Faulkner 1 power plant at Blue Mountain and the transition of the Company from a developer to a significant power producer. Revenue from power sales increased steadily from start up through each of the last three quarters. The plant generated approximately 37 MW (net) on average during the fourth fiscal (April – June) quarter and gross margin increased to $3.7 million, or 60 % of the $6.2 million revenue. The Company expects further improvement in plant output going forward with further drilling.”

Some of the highlights include: Faulkner 1 power plant start up October 10, 2009; US federal government cash grant received ($57.9 million) during November 2009; Power production increased to average 37 MW by the fourth fiscal quarter; Application with John Hancock for a loan guarantee under the FIPP (Federal Institutions Partnership Program) and conditional commitment June 15, 2010

Subsequent to year end: John Hancock $98.5 million loan closed with fixed interest at 4.14% for a 20 year term, permitting further development, $8.4 million drilling fund included in John Hancock loan facility, $10.4 million equity issue closed during September 2010

Mr. Fairbank said, “NGP is continuing to drill at Blue Mountain in order to further distribute re-injection fluid, increase power production and offset a potential 2.5% per year power production decline. The Company has also been assessing low-cost capital by monetizing its tax benefits and/or from a potential cash grant related to additional construction since the plant was placed in partial service. NV Energy and TCW, the Company’s power off-taker and mezzanine lender, continue to work cooperatively with us to optimize the operation of the Blue Mountain ‘Faulkner 1’ power plant.”

Source: Company release via iStockAnalyst