Ram Power reports net loss of $6.5m for Q3 of 2010

Drilling Rig at Orita Well #3, California (source: Ram Power)

Alexander Richter 17 Nov 2010

Ram Power, Corp. reports its financial and operating results for the third quarter ended September 30, 2010. The 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, said, “The third quarter 2010 has been another rewarding and growth oriented quarter. Early in the quarter, we completed the Mayacamas Energy transaction thereby ensuring the development of our Geysers project in Northern California. Additionally, in the later part of the quarter, we completed the Sierra Geothermal Power, Inc. acquisition which adds additional exploration properties to our existing geothermal projects in Clayton Valley, Nevada.

Finally, subsequent to the quarter end, the closing of the San Jacinto-Tizate Phase II Credit Facility ensures the build out of the 72 MW facility in Nicaragua, supplying clean, renewable energy to the region for years to come. Further, the Company enhanced our already experienced management team with the additions of John O’Neill as Vice President and Chief Financial Officer and Gordon Alter as Vice President and General Counsel. We continue to be excited about the future of Ram Power.”

For the purpose of this summary, the results of Polaris Geothermal Inc. for the three and nine months ended September 30, 2009 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 Geothermal Inc.

For the third quarter ended September 30, 2010, the Company reported a net loss of approximately $6.6 million ($0.04 per share). On a cash basis, for the same period, the Company had a negative cash flow of about $4.5 million from operating activities and spent approximately $51.4 million on additions to geothermal properties and capital assets, including approximately $40 million on the Phase I and II San Jacinto-Tizate expansions and approximately $9.1 million on the Orita Project. At September 30, 2010, the Company had cash and short term investments of approximately $42.6 million, and long-term (non recourse) debt, net of debt discount, of approximately $45.6 million.”

To read the full release see link below.

Source: Company release via Marketwatch