RENO, NV--(Marketwire - April 1, 2011) - Ram Power, Corp. (
Concurrent with today's release, Walt Higgins, Interim President and CEO of Ram Power, said, "Ram Power is currently in a much better position to execute its strategic business plan. We are taking positive steps to better control our business of developing, producing and selling geothermal energy through the engagement of resource experts and the addition of qualified professionals to the Company's staff. We are very pleased with the results we have seen recently in the development of our San Jacinto resource, and further believe the steps we have taken are in the best interest of our Company and our shareholders."
FINANCIAL RESULTS
The financial results of Ram Power for the year ended December 31, 2010 and 2009 are summarized below:
| For the Three | For the Three | For the Twelve | For the Twelve | ||||||||||||
| Months Ended | Months Ended | Months Ended | Months Ended | ||||||||||||
| (All figures in U.S. dollars) | December 31, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |||||||||||
| Total revenue | $ | 1,230,553 | $ | 1,147,642 | $ | 4,282,742 | $ | 5,424,220 | |||||||
| Direct cost of energy production | 422,531 | 328,307 | 1,697,137 | 1,322,233 | |||||||||||
| Expenses | 5,539,427 | 7,560,442 | 21,719,184 | 13,707,820 | |||||||||||
| Other income (loss) | 209,975 | (8,645,232 | ) | (3,208,967 | ) | (27,857,573 | ) | ||||||||
| Income tax and non-controlling interest | 1,078,593 | (21,817 | ) | 1,818,476 | 55,842 | ||||||||||
| Net loss | (3,442,837 | ) | (15,408,156 | ) | (20,524,070 | ) | (37,407,564 | ) | |||||||
| Loss per share | (0.03 | ) | (0.13 | ) | (0.14 | ) | (0.37 | ) | |||||||
| As at | As at | ||||||||||||||
| December 31, 2010 | December 31, 2009 | ||||||||||||||
| Total assets | $ | 481,808,786 | $ | 370,298,161 | |||||||||||
| Long-term debt | 68,000,000 | 849,688 | |||||||||||||
| Total liabilities | 129,354,157 | 28,515,147 | |||||||||||||
| Cash and short term investments | 29,517,574 | 96,471,261 | |||||||||||||
| Working capital | (12,415,330 | ) | 113,011,009 | ||||||||||||
For the fiscal year ended 2010, the Company reported a net loss of approximately $20.5 million ($0.14 per share). On a cash basis, for the same period, the Company had a negative cash flow of about $14.4 million from operating activities and spent approximately $132.2 million on additions to geothermal properties and capital assets, including approximately $84 million on the Phase I and II San Jacinto-Tizate expansions, approximately $23 million on the Geysers Project, approximately $19 million on the Orita Project and $6.2 million on other development projects. At December 31, 2010, the Company had free cash of approximately $29.5 million, and long-term (non recourse) debt of approximately $68 million.
OUTLOOK
The events for the year ended December 31, 2010, and the subsequent events in the first quarter of 2011, continue to demonstrate management's desire to deliver long term shareholder value through its extensive pipeline of projects.
The Company plans to continue to focus on the expansion of the San Jacinto Project. Based on current projections, the Company expects to incur additional expenses of approximately $175 million in 2011-2012 to complete Phase I and Phase II of the of the San Jacinto Project expansion. The Company has approximately $185 million of credit facilities and contingency reserves to cover the projected expenditures. The availability of the Phase II Credit Facility (approximately $160 million) is subject to increasing the certified resource from 59 MW to 82 MW (gross). The Company anticipates that its current drilling program will result in obtaining the necessary certified resource capacity to enable it to utilize the full available amount under the Phase II Credit Facilities. Should there be a timing difference between the certification of the resource to obtain access to the Phase II Credit Facility funding and projected project expenditures, the Company may seek alternative sources of funding.
For the year 2011, the Company expects to record revenue from the sale of energy generated from the Phase I expansion of the San Jacinto Project. Revenue from Phase I will go to supplement the continued construction and development of the Phase II expansion which is expected to be completed in the second quarter of 2012.
With respect to the Geysers property, the Company is in discussions with an engineering, procurement, and construction ("EPC") contractor for the development of the 26 MW Geysers Project in Northern California and expects a final EPC contract in the second half of 2011. In addition to the recent announcement of the revised and amended PPA with the Northern California Power Agency ("NCPA"), the Company plans on executing a debt financing for the project in the third quarter of 2011.
Advancing of the 49.9 MW Orita Project in the Imperial Valley, California will continue in 2011. The Company plans to spend an additional $10.7 on drilling associated with the development of the resources.
Development will continue for the Company's advanced exploration properties at Casita, Nicaragua and Clayton Valley, Nevada. Casita activities will include building additional infrastructure and the drilling of two slim hole wells to confirm the resource. Clayton Valley development will include continued surface exploration and permitting activities throughout 2011.
Antony Mitchell, Executive Chairman of Ram Power concluded, "While we have encountered some unique challenges and delays in the construction of the Phase I and Phase II expansions of our San Jacinto-Tizate 72 MW project, I am very pleased with the progress we have made to date and look forward to the commissioning of the first phase later this year. Our continued commitment to develop our Orita and Geysers properties in 2011 will bring us closer to our goal of building a large, sustainable, geothermal energy company."
Ram Power, Corp. will hold its earnings call to discuss the year end 2010 financial and operating results on Friday, April 1, 2011 at 8:30am EDT (5:30am PDT). To listen to the call, please dial 1-888-789-9572 with participant pass code 6036830, or on the web at http://www.bellwebcasting.ca/audience/index.asp?eventid=86933534.
About Ram Power, Corp.
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties and has interests in geothermal projects in the United States, Canada, and Latin America.
Cautionary Statements
This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "predicts," "intends," "targets," "aims," "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may," "could," "should," "would," "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in this news release. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power, Corp. assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.
Contact Information:
Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email:
www.ram-power.com