NaiKun Wind Energy Group Inc. (TSX-Venture: NKW) today announced its financial results for the year ended September 30, 2013, a fiscal period during which the Company continued to explore ways to forward the NaiKun Wind Project while controlling its costs. A substantial restructuring effort was undertaken in fiscal 2010 and the Company has maintained both the expense profile and the strategic efforts as laid out by the Board of Directors. NaiKun Wind remains confident that these undertakings represent the best available opportunities to support the advancement of the project and maximize shareholder value.
An overview of NaiKun Wind’s year-end results and projected expenditures include:
- As at September 30, 2013, NaiKun Wind had $3.7 million in cash and cash equivalents, compared to $5.3 million at the end of September 2012.
- For the fiscal year ended September 30, 2013, NaiKun Wind incurred a net loss of $1.1 million ($0.03 per share) which included a revised estimate of the decommissioning costs of the Company’s metmast, compared to $2.4 million ($0.06 per share) for the year ended September 30, 2012.
- For fiscal 2014 the Company has budgeted cash expenditures of $1.2 million which, given the Company’s existing cash position, could sustain operations into 2015 and beyond.
In July 2013, the KPMG World Infrastructure Group finalized a report on the NaiKun project. This report confirms the Company’s phase one project can be developed for a cost of $90/MW to $155/MW depending on financing. NaiKun Wind remains optimistic that the significant energy demand forecasts for the North Coast of B.C. will benefit NaiKun. The NaiKun Wind project is the only project of significant scale in the Prince Rupert/Kitimat area, where the proposed LNG projects will be built, that is permitted and essentially ‘shovel-ready’.
Effective April 1, 2010, as stated in the Company’s news release of May 20, 2010, compensation to members of the Board was reduced by 50%. As part of the reduced Board compensation it was also decided that going forward 25% of that compensation would be paid in the form of common shares in lieu of cash. Accordingly, the Company has just issued 149,555 shares to its directors for the quarter ended December 31, 2013. Additionally, the Company issued 178,571 common shares to the Company’s CEO, for the quarter ended December 31, 2013, as the share portion of his compensation. All shares were issued at the closing share price for December 31, 2013 of $0.07.
NaiKun Wind Energy Group is a British Columbia-based renewable energy company. Located on B.C.’s northwest coast, where the wind resource is one of the strongest and most consistent in the world, NaiKun Wind’s 400MW offshore wind project would generate enough energy to provide electricity to 200,000 B.C. homes. If the project does proceed it is expected to result in an estimated 500 jobs during construction, 50 permanent jobs for maintenance and operations and more that $400 million in direct expenditures in the province during construction, of which $250 million will benefit North Coast communities.
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf. The NaiKun Wind project is at an advanced stage of development with environmental approvals from the Provincial and Federal Governments and agreements in place with key suppliers and First Nations. Given its development status, construction can begin within two years of the award of an electricity purchase agreement. For more information on NaiKun Wind, please visit www.naikun.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: NaiKun Wind
For more information on: NaiKun Wind