Ram Power, Corp. (TSX: RPG) announced its operating results for the second quarter ended June 30, 2013. This earnings release should be read in conjunction with Ram Power’s financial statements, and management’s discussion and analysis (“MD&A”), which are available on the Company’s website at www.ram-power.comand have been posted on SEDAR at www.sedar.com.
The achievement of commercial operation of the Phase II expansion at San Jacinto in December 2012 continued to generate strong year-over-year revenue growth for the Company of $13.2 million for the three months ended June 30, 2013, compared to $7 million for the same period in 2012, an 88% increase. Adjusted EBITDA, as defined below, increased 240% to $11.2 million for the three months ended June 30, 2013 compared to $3.3 million for the three months ended June 30, 2012.
Significant accomplishments during the quarter and to date include:
The Company reached an agreement on July 31, 2013, with its project lenders syndicate, led by the International Finance Corporation, to convert its Phase II Credit Facility construction loan for the San Jacinto-Tizate Project (the “Project”) to a term loan amortizing over 11 years through 2024.
The Company, together with Sinclair Knight Merz, finalized its resource remediation plan for the Project, entered into a drilling contract with ThermaSource Inc. to carry out the remediation program drilling, and commenced drilling on July 18, 2013.
The Company has identified a buyer and is currently in discussions to finalize sale of the Geysers project by the end of 2013. Proceeds of the sale, net of selling costs, are expected to be approximately $6.4 million. The Company recognized an impairment loss of $16.5 million during the second quarter 2013 to reflect the current expected purchase price net of selling costs.
Source: Ram Power
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