Ram Power expects to spend US$178m in 2010
Ram Power, Corp. reports its financial and operating results for the fourth quarter and fiscal year ended December 31, 2009, stating a loss of US$37 for 2009 and expectations of spending US$178million in 2010 for further development.
In a release, “Ram Power, Corp. (TSX: RPG) reports its financial and operating results for the fourth quarter and fiscal year ended December 31, 2009. This 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, commented, “This has been an exciting start for Ram Power since its inception on October 20, 2009. The merger of the three predecessor companies, Polaris Geothermal Inc., Western Geothermal Corp. and Ram Power, Inc. along with an equity financing of CDN $179.4 million has provided our company with critical mass and a promising future. We have an established management team, an extensive inventory of geothermal properties and the balance sheet to develop them. We expect the first of our projects, the 36 MW San Jacinto Phase I expansion in Nicaragua to be on-stream in early 2011 and the second 36 MW Phase II expansion by year end 2011. In California, drilling of the 49.9 MW Orita project in the Imperial Valley started this month and successful drilling could allow construction to start in 2011. Other projects are under active investigation and we expect to be able to make further announcements during the year ahead.”
He continued, “While the year end loss of $37 million is significant, it is largely due to the many pre-acquisition costs incurred by Polaris and Western before the merger, which are non-recurring. Losses of such magnitude are unlikely to be encountered going forward this year. We look forward to being able to report substantial progress in subsequent quarterly releases.”
For the year 2010, Ram Power expects to record revenue from the sale of power and carbon credits of approximately $6 million. Ram Power is still in the early development stage and 2010 will be characterized by extensive development and construction activities. Ram Power plans to spend approximately $178 million in 2010 to advance its geothermal projects. Ram Power has sufficient financial resources through a combination of its funds and the committed loan proceeds to meet all of its anticipated obligations in the year 2010.
Hezy Ram, CEO of Ram Power, concluded, “Ram Power’s mission is to be a world leader in geothermal power supply, and to this end, we are continuing on our course to bring our projects closer to their commercial operation and to bring clean, renewable energy to the people of North and Latin America.”
For the full release see link below.
Source: Company release via CNW