Great Plains Metals Corp. press release
Pristine Power releases first quarter results - Company updates construction and development activities
TSXV - TSX Venture Exchange · Gold · Copper · Molybdenum · Rare Earth Elements · Uranium · Canada
CALGARY, May 14 /CNW/ - Pristine Power Inc. ("Pristine" or the "Company") (TSX: PPX) today announced its financial results for the quarter ending March 31, 2008 and provided updates to its construction activities at the East Windsor Cogeneration Centre and Enpower projects as well as its development initiatives in British Columbia and Ontario. "The first quarter of 2008 marked several key milestones for Pristine," said Mr. Jeffry M. Myers, President and Chief Executive Officer. "The successful completion of our Initial Public Offering for gross proceeds of $55 million (including overallotment) and commencement of trading on the TSX has provided the financial foundation and flexibility to deliver on our growth strategy."
Construction of the Enpower Projects and East Windsor Cogeneration Centre remain on schedule and on budget with commercial operation expected to commence in the third quarter of 2008 and 2009 respectively. "We are pleased with the progress on our leading projects and also pleased with the advancement of our development activities, particularly in British Columbia and Ontario. In British Columbia, Pristine expects to bid in Bioenergy Call for Power - Phase 1 announced by BC Hydro in the first quarter of 2008. In Ontario, Pristine and its proposed partner plan to bid a project into the upcoming Northern York Region Request for Proposals by the Ontario Power Authority for approximately 350 MW of peaking generation, with the submission expected in the fourth quarter of 2008," Mr. Myers said.
Financial and Operating Highlights
Quarter ended Quarter ended
March 31, March 31, ($000s) 2008 2007 Revenue 179 257 Expenses 1,730 758 Net income (loss) (1,848) (501) Net income (loss) per share Basic (0.10) (0.05) Diluted (0.10) (0.05) Total assets 173,052 6,781 Long term debt 88,425 Nil Shareholders' equity 58,122 5,450 Funds from operations(1) (1,267) (475) Funds from operations per share Basic(1) (0.07) (0.05) Diluted(1) (0.07) (0.05) (1) Non-gaap measure
In the three months ended March 31, 2008, Pristine incurred a net loss of $1.8 million ($0.10 per share basic and fully diluted) compared to a loss of $0.5 million ($0.05 per share basic and fully diluted) in the same period of 2007, reflecting increased development and general and administrative costs and higher stock-based compensation expense, partially offset by unrealized gains on derivative financial instruments and unrealized foreign exchange gains. Increased development activities primarily related to the BC BioEnergy Network(TM) projects and the Ontario Northern York Region project resulted in higher development costs for the first quarter of 2008. Higher general and administrative costs reflect increased salaries and wages due to an increased staff complement to support the Company's development and construction initiatives and upcoming operations. The increase in stock-based compensation expense reflects options issued to directors of the Company that vested upon issuance in lieu of cash compensation for the 2008 year. Funds used in operations in the first quarter of 2008 were $1.3 million ($0.07 per share basic and fully diluted) compared to $0.5 million ($0.05 per share basic and fully diluted) in the first quarter of 2007, reflecting the aforementioned higher development and general and administrative costs.
On March 18, 2008, Pristine completed its initial public offering, issuing 12,500,000 common shares at $4.00 per share for net proceeds of $45.8 million. Subsequently, on April 18, 2008, the Company's agents exercised their over-allotment option and an additional 1,250,000 common shares were issued for net proceeds of $4.7 million.
Projects under Construction
East Windsor Cogeneration Centre
Construction of the 84 MW East Windsor Cogeneration Centre continues to be on track for the commencement of commercial operations in the third quarter of 2009. Foundation pours are currently in process and the once-through steam generators were delivered to site and commenced installation in April 2008. The gas turbines and generator sets are expected to be delivered to site in the second and third quarter of 2008. At March 31, 2008, $96.4 million of the total expected project costs of $207.0 million had been incurred with $27.1 million spent in the first quarter of 2008. Through its 50% interest in Pristine Asset LP ("PALP"), Pristine holds an effective 25% working interest in the project.
EnPower Projects
Construction of the EnPower Projects continued in the first quarter of 2008 with commercial operations expected to commence in the third quarter of 2008. At the 5 MW Savona project, ground was broken in March 2008 and foundation pours have commenced. At the 5 MW 150 Mile House project, ground was broken in April 2008 and excavation activities are ongoing. As of March 31, 2008 $14.4 million of the total expected project costs of $31.5 million had been incurred with $6.1 million spent in the first quarter of 2008. Pristine holds a 50% working interest in the projects until close of the non-recourse financing at which point the projects will be transferred into PALP and the Company's effective working interest will be reduced to 25%. Upon transfer to PALP, Pristine will recover capital and development costs incurred to date on the project under the terms of its Equity Contribution Agreement with CFI Infrastructure Opportunities LP, PALP's other 50% limited partner.
Projects under Contract
Mackenzie Green Energy Centre
Development of the proposed 65 MW (thermal equivalent) Mackenzie Green Energy Centre, in which the Company holds a 35% working interest, continued in the first quarter of 2008. In late 2007, Pope & Talbot Inc., the current owners of the host Mackenzie pulp mill, filed for creditor protection under the Companies' Creditors Arrangement Act (Canada) and Chapter 11 U.S. Bankruptcy Code. During the quarter, Pristine commenced discussions with a potential owner of the Mackenzie pulp mill so that the Mackenzie Green Energy Centre can be constructed and operate as presently envisaged. On May 5, 2008, Pope & Talbot Inc. announced that it was winding down operations at its Mackenzie pulp mill after it failed to close a purchase agreement for the pulp mill, but advised that it is still negotiating with the potential buyer. Pristine is continuing to monitor the status of the mill and the related impacts, but is also continuing to examine other potential sites available in the immediate vicinity of the Mackenzie pulp mill and other cost effective sources of fibre that might be available.
Conference Call
Pristine Power will hold a conference call at 9:00 a.m. Mountain time (11:00 a.m. Eastern time) on May 15, 2008 to discuss the first quarter results of 2008. The call can be accessed at 1-800-814-4941 or 1-416-646-3096. A replay will be available shortly thereafter at 1-877-289-8525 or 1-416-640-1917. The access code in each case is 21272025 followed by the pound sign.
Pristine has filed with Canadian securities regulatory authorities its unaudited financial statements and related Management's Discussion and Analysis for the three months ended March 31, 2008. These filings are available for review on the Corporation's SEDAR profile at www.sedar.com and on Pristine's website at www.pristinepower.ca.
Cautionary Statement Regarding Forward Looking Information
Certain statements in this news release may constitute "forward-looking information" or "forward-looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this news release, such information uses such words as "estimates", "expects", "plans", "anticipates" and other similar terminology. This information reflects the Company's current expectations regarding future events and operating performance and speaks only as of the date of this news release. Forward-looking information involves significant risks uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information. Although the forward-looking information in this news release is based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is provided as of the date of this news release, and, subject to applicable securities laws, the Company assumes no obligation to update or revise such information to reflect new events or circumstances.
About Pristine
Pristine was founded in 2002, and is in the business of developing, owning and operating independent power plants that will produce and sell electricity and in some cases, sell process steam to industrial users. Pristine capitalizes on opportunities in the independent power market by actively pursuing the development of dependable, cost-effective and environmental responsible power generation facilities utilizing technology with proven past performance. Pristine pursues a mix of large gas-fired electricity generation and hydroelectric projects and small replicable waste heat recover ERG(C) and bioenergy gasification electricity generation projects. Pristine currently has three projects under construction, and is actively developing projects in Ontario, British Columbia and Alberta.
PRISTINE POWER INC. Consolidated Balance Sheets
March 31, December 31, ($) 2008 2007 (Unaudited) ASSETS Current assets Cash and cash equivalents 43,614,864 1,567,275 Accounts receivable 1,422,013 2,030,638 Due from related parties 1,338,790 392,116 Prepaid expenses 726,214 624,593 Derivative financial instruments asset 418,435 49,111 47,520,316 4,663,733
Restricted cash 65,024,625 75,235,475 Land 1,609,334 1,421,459 Investments 2,282,452 2,282,452 Assets under construction 52,297,540 36,921,237 Deferred development costs 3,838,574 2,881,079 Administrative assets 479,277 191,617 173,052,118 123,597,052
LIABILITIES Current liabilities Accounts payable and accrued liabilities 12,597,779 8,340,816 Deferred leasehold inducements - 3,293 12,597,779 8,344,109
Asset retirement obligation 305,766 211,049 Long-term debt 88,424,595 88,443,876 88,730,361 88,654,925
Non-controlling interest 13,602,146 13,309,051
SHAREHOLDERS' EQUITY Share capital 62,771,667 16,947,656 Contributed surplus 1,316,440 463,551 Deficit (5,966,275) (4,122,240) 58,121,832 13,288,967
173,052,118 123,597,052 Commitments and guarantees Subsequent events
PRISTINE POWER INC. Consolidated Statements of Loss, Comprehensive Loss and Deficit (Unaudited)
($) Three months ended March 31, 2008 2007
REVENUES Consulting fees 104,588 227,936 Interest and other income 74,199 29,188 178,787 257,124
EXPENSES Project development costs 529,167 88,456 General and administrative 890,279 640,724 Stock-based compensation 852,889 16,955 Interest and bank charges 11,479 - Unrealized gain on derivative financial instruments (369,324) - Unrealized foreign exchange gain (206,399) - Realized foreign exchange loss 8,156 - Depreciation, amortization and accretion 13,480 11,960 1,729,727 758,095 Net loss before the undernoted (1,550,940) (500,971)
OTHER ITEMS Income from equity accounted for investment - 1,028 Partnership loss - (1,030) (2) Net loss before non-controlling interest (1,550,940) (500,973)
Non-controlling interest 296,678 -
Net loss and comprehensive loss (1,847,618) (500,973)
Deficit, beginning of period (4,122,240) (5,395,900) Adoption of financial instruments 3,583 - Deficit, end of period (5,966,275) (5,896,873)
Net loss per share Basic ($0.09) ($0.05) Diluted ($0.09) ($0.05)
PRISTINE POWER INC. Consolidated Statements of Cash Flows (Unaudited)
($) Three months ended March 31, 2008 2007
OPERATING Net loss and comprehensive loss (1,847,618) (500,973) Add (deduct) non-cash items: Unrealized foreign exchange gain (206,399) - Stock-based compensation 852,889 16,955 Amortization of deferred leasehold inducements (3,293) (2,775) Depreciation and amortization 13,480 11,960 Non-controlling interest contribution 293,095 - Unrealized gain on derivative financial instruments (369,324) - Loss from investments - 2 Funds used in operations (1,267,170) (474,831) Change in non-cash working capital 8,765 (188,341) Cash used in operating activities (1,258,405) (663,172)
FINANCING Advances to partners (946,674) - Proceeds from issuance of shares (net of share issue costs) 45,824,011 - Change in non-cash working capital 450,058 - Cash provided by financing activities 45,327,395 -
INVESTING Restricted cash 10,417,249 - Advances to related parties - 6,869 Capital expenditures (301,140) (12,536) Assets under construction (15,297,284) (1,271,156) Deferred development costs (957,495) (121,801) Land acquisition (187,875) - Change in non-cash working capital 4,305,144 - Cash used in investing activities (2,021,401) (1,398,624)
Increase (decrease) in cash and cash equivalents 42,047,589 (2,061,796) Cash and cash equivalents, beginning of period 1,567,275 3,978,427 Cash and cash equivalents, end of period 43,614,864 1,916,631