Nevada Geothermal Power Reports Results for the three months and six months ended December 31, 2012
VANCOUVER, Feb. 28, 2013 /PRNewswire/ - Nevada Geothermal Power Inc. ("NGP" or "the Company") (TSX.V: NGP) today announced results for the three months and six months ended December 31, 2012. The Condensed Consolidated Interim 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.nevadageothermal.com.
|For the three months ended|
|(millions of US $ unless stated otherwise)||
|Net loss from continuing operations||$||(0.7)||$||(1.3)||$||0.6||46%|
|Results of discontinued operations|
|Net loss: operations being disposed of||(0.3)||(2.8)||2.5||89%|
|Effect of services to operations being disposed of||0.3||0.2||0.1||50%|
|Total profit (loss) from discontinued operations||0.1||(2.6)||2.7||104%|
|Total net loss||(0.7)||(3.9)||3.2||82%|
|Net loss per share (basic and diluted) ($)||(0.01)||(0.03)||0.02||67%|
|Cash generated from operating activities||3.2||1.4||1.8||129%|
|Cash & cash equivalents||$||2.0||$||2.1||$||(0.1)||(5%)|
NGP is a geothermal energy company, focused on developing and generating clean, sustainable electrical power from geothermal resources. The Company developed and constructed the Faulkner 1 geothermal power plant, at Blue Mountain, which it currently operates. In addition, the Company holds leases on other properties in various stages of development: two in Nevada, one in California's Imperial Valley and a 50% interest in a joint venture development with Ormat Nevada Inc. ("Ormat") at the Crump Geyser property in Oregon.
On January 11, 2013, the Company entered into an Equity Transfer Agreement ("ETA") under which NGP will transfer its 100% interest in the Blue Mountain power plant to its mezzanine lender, EIG Global Energy Partners ("EIG"). NGP will continue as project operator of the Blue Mountain power plant and will provide management and administrative services during a cooperative transition period of up to twelve months from the BM Holdco equity transfer date. EIG may also exercise an option to purchase the operating company, Nevada Geothermal Operating Company LLC ("Opco"), for a nominal amount plus the value of the then existing working capital (capped at $350,000). The Agreement is subject to certain conditions precedent.
The signing of the ETA represents a significant milestone for the Company, since all assets and liabilities associated with the Blue Mountain project will be derecognized upon closing of the agreement, resulting in a substantial gain and freeing the Company to pursue its other opportunities. The assets and associated liabilities of NGP I and BM Holdco are classified as "held for sale" and the results as "discontinued operations" in the financial statements for the three months and six months ended December 31, 2012. The results of Opco, the operator of the Blue Mountain power plant, are also included in discontinued operations, along with other revenue generated from fees charged to Blue Mountain for services.
The loss from continuing operations for the quarter ended December 31, 2012 amounted to $0.7 million, down from $1.3 million in the three months ended December 31, 2011. The Company has cut costs and staff numbers dramatically, although legal and consulting costs will remain significant until the equity transfer agreement referenced above closes. Cash and cash equivalents in continuing operations amounted to $2.0 million as at December 31, 2012.
Depreciation of the Blue Mountain power plant assets ceased upon classification of the assets as held for sale. Profit from discontinued operations amounted to $0.1 million for the quarter, compared to a loss of $2.6 million in the quarter ended December 31, 2011. NGP Blue Mountain I LLC, which owns the Blue Mountain power plant, continues to make interest and capital payments on its loan from John Hancock Life Insurance Company, which is 80% guaranteed by the United States Department of Energy.
The Company expects that a reorganization plan, involving a one for five reverse split of the stock and a name change to "Alternative Earth Resources Inc", will be implemented soon. Management continues to pursue various strategic options and the advancement of the Company's other projects.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an experienced renewable energy producer focusing on the development of clean electrical power from high temperature geothermal resources in the United States. NGP currently owns a 100% leasehold interest in several properties in Nevada and California, and a 50% interest in Crump Geyser, in Oregon. These properties are at different levels of exploration and development.
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.
SOURCE Nevada Geothermal Power Inc.