Alternative Earth Resources Reports Results for the year ended June 30, 2013
VANCOUVER, Oct. 21, 2013 /PRNewswire/ - Alternative Earth Resources Inc. (formerly Nevada Geothermal Power Inc.) ("Alternative Earth" or "the Company") (TSX.V: AER) today announced results for the year ended June 30, 2013. The Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) are available at www.sedar.com and on the Company's website at http://www.alternative-earth.com.
|For the year ended|
|(millions of US $ unless stated otherwise)||June 30, 2013||June 30, 2012||Variance||%|
|Net loss from continuing operations||$||(1.5)||$||(6.7)||$||5.2||78%|
|Results of discontinued operations:|
|Net profit (loss): discontinued operations||(0.7)||(52.3)||51.6||99%|
|Gain on disposal||80.9||-||80.9|
|Total profit (loss) from discontinued operations||80.2||(52.3)||132.5||253%|
|Total net profit (loss)||78.7||(59.0)||137.7||233%|
|Net profit (loss) per share (basic and diluted) ($)||3.21||(2.41)||5.62||233%|
As at June 30,
As at June 30,
|Cash & cash equivalents||$||2.0||$||2.1||$||(0.01)||(5%)|
Alternative Earth was responsible for the development of the Blue Mountain geothermal resource from exploration through commissioning of the nameplate 49.5 MW (gross), 38.8 MW (net) Faulkner I power plant, and continues to hold interests in four other geothermal properties. The results of the Blue Mountain power plant are included in Alternative Earth's results up to March 28, 2013, on which date the Company transferred its interest in the project to Blue Mountain Power, LLC, a subsidiary of EIG Global Energy Partners ("EIG"), which had been the mezzanine lender on the project. Alternative Earth continues to operate the power plant through its subsidiary, Nevada Geothermal Operating Company ("Opco"), and is providing some management and administrative services during a cooperative transition period.
The transfer of the Company's investment in the Blue Mountain project to EIG resulted in the removal of debt obligations and the recognition of a gain of $80.9 million in the quarter ended March 31, 2013. The gain is offset by previous year losses such that no tax is payable.
The Company is compensated for services provided to the Blue Mountain project during the above mentioned transition period, but management does not expect to be involved with the project for an extended period. The agreement between the Company and EIG provides for Opco's involvement in the project for a maximum period of 12 months, and a minimum of three months from March 28, 2013. The Faulkner I plant operations handover date is expected to be on or before December 31, 2013.
The loss from continuing operations for the year ended June 30, 2013 amounted to $1.5 million, down from $6.7 million in the year ended June 30, 2012. The Company has cut costs and staff numbers dramatically over the last year. The Company plans to improve its cash position by continuing to cut costs and by selling or joint venturing some or all of its geothermal resource properties.
As at June 30, 2013, the Company's assets (consisting primarily of cash and cash equivalents of $2.0 million and resource property interests carried at $1.5 million) exceeded its liabilities (consisting primarily of asset retirement obligations) by approximately $3.6 million.
On April 2, 2013, the Company changed its name from Nevada Geothermal Power Inc. to Alternative Earth, and completed a five for one share consolidation, which leaves the Company in a position to maintain its property portfolio or pursue other opportunities.
About Alternative Earth Resources Inc.: Alternative Earth Resources Inc. is an experienced renewable energy developer focusing on the development of CLEAN electrical power from high temperature geothermal resources in the United States. The Company owns geothermal leaseholds comprising the New Truckhaven property in Imperial Valley, California; the Pumpernickel and North Valley properties in northern Nevada; and a 50% interest in the Crump Geyser property which it owns with Ormat Nevada Inc. in Lake County, Oregon. These properties, at different stages of exploration and development, cover aggregate inferred resources totaling approximately 200 MW.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Alternative Earth Resources Inc.
Brian D. Fairbank, P. Eng. President & CEO
Telephone: 604-688-1553 X110
Toll Free: 866-688-0808 X118
Toll Free: 866-688-0808
SOURCE Alternative Earth Resources Inc.