SOURCE: Ram Power, Corp.

Ram Power, Corp.

November 14, 2011 17:15 ET

Ram Power Announces Third Quarter 2011 Results

RENO, NV--(Marketwire - Nov 14, 2011) - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company") a renewable energy company focused on the development, production and sale of electricity from geothermal energy, today reported its financial and operating results for the third quarter ended September 30, 2011. 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 and have been posted on SEDAR at

Concurrent with today's release, Shuman Moore, President and CEO of Ram Power, stated, "Ram Power has made significant progress over the quarter towards achieving our principal goal of having commercial operation of the 36 MW Phase I expansion at San Jacinto-Tizate by the end of December, 2011. The mechanical completion of the plant along with additional steam resource proven with our SJ 12-3 well create momentum as we begin to test systems on Phase I and continue work on the 36 MW Phase II expansion. Furthermore, the amendment of the terms associated with the Corporate Credit Facility, together with the expansion, allows the Company increased flexibility in the ongoing evaluation of our portfolio of projects. I am confident in our ability to continue to execute at San Jacinto and begin further development of our pipeline of projects."


The financial results of Ram Power for the three and nine months ended September 30, 2011 and 2010 are summarized below:

For the three months ended For the nine months ended
(all figures in U.S dollars) September 30, 2011 September 30, 2010 September 30, 2011 September 30, 2010
Total revenue $ 1,253,362 $ 996,227 $ 3,320,408 $ 3,052,189
Direct cost of energy production 419,228 371,283 1,321,096 1,274,606
Expenses 4,032,596 5,183,707 9,614,741 13,782,347
Other loss 2,838,211 1,414,130 10,547,866 3,763,853
Gain on warrant liability valuation (11,233,341 ) - (8,722,221 ) -
Deferred taxes and non-controlling interest 897,683 147,118 2,469,165 842,885
Net income/(loss) 6,094,351 (5,825,775 ) (6,971,909 ) (14,925,732 )
Income/(loss) per share $ 0.02 $ (0.04 ) $ (0.06 ) $ (0.10 )
As at September 30, 2011 As at December 31, 2010
(As Restated)
Total assets $ 675,706,227 $ 478,232,551
Long-term debt 193,896,116 77,774,011
Total liabilities 271,439,705 123,741,344
Cash 96,670,097 29,517,574
Working capital 25,963,494 (8,475,675 )

For the nine months ended September 30, 2011, the Company reported a net loss of approximately $7.9 million ($0.06 per share). On a cash basis, for the same period, the Company had a negative cash flow of about $19.5 million from operating activities and spent approximately $148 million on additions to geothermal properties and other capital assets, including approximately $123 million on the Phase I and II San Jacinto-Tizate expansions and approximately $18 million on the Orita Project. At September 30, 2011, the Company had free cash of approximately $96.7 million, of which $64 million is held for use in the San Jacinto Project.


Project Evaluation

Given the significant restructuring of the organization and the anticipated start-up in December 2011 of the Company's first power-producing expansion at the San Jacinto facility, management and the Board will be reevaluating each of the Company's projects and pre-exploration prospects to determine whether the Company will either aggressively develop or actively maintain the project based on various criteria including the availability of proven resources, costs of development, availability of financing, and other criteria as appropriate in order to determine the best use of the Company's existing and potential capital.

San Jacinto-Tizate

As previously disclosed, the Company has sufficient cash to complete the Phase I and II expansion of the San Jacinto Project as planned. Phase I is mechanically complete with all major construction activities finished. Plant commissioning activities for the Phase I expansion have commenced and the unit is expected to be in commercial operation in December 2011. The December 2011 date is consistent with the Ministry of Energy and Mines of Nicaragua extension of the commercial operation date deadline for the Phase I expansion of the San Jacinto Exploitation Agreement to December 31, 2011. A number of significant construction milestones have been completed for Phase II and this phase of the expansion is on schedule for completion in December 2012.


The first slim hole at the Nicaraguan Casita project was drilled to a depth of 842 meters with a total loss of circulation and indicated temperature readings exceeding 230° Celsius (446° Fahrenheit). The temperature results obtained and the permeability found indicate that the location has a high probability of being a commercial resource. In the first quarter of 2012, pending confirmation from Sinclair Knight Merz, the company plans to commence drilling of the second slim hole at a location approximately 1.7 km from the first slim hole. The drilling of the slim holes and the interpretation of geo-scientific data is being carried out with the technical support of SKM.

Ram Power, Corp. will hold its earnings call to discuss the third quarter ending September 30, 2011 financial and operating results on Tuesday, November 15, 2011 at 10:00am EST (7:00am PST). To listen to the call, please dial 1-888-789-9572 with participant pass code 7015044, or on the web at

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 an interest in geothermal projects, primarily 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 the Company's Annual Information Form. 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 assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.

Contact Information