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NaiKun Wind
Energy Group Inc. (TSX VENTURE:NKW) today announced its financial results for
the year ended September 30, 2011, a fiscal period during which the Company
continued forwarding the NaiKun Wind Project while
reducing the Company's operating costs as compared to the previous year. A
substantial restructuring effort was undertaken in the third quarter of
fiscal 2010 and the Company has maintained both the expense profile and the
strategic efforts as laid out by the Board of Directors at that time.
NaiKun Wind is confident that the Company's
undertakings, including our corporate restructuring and new strategies for
procuring an electricity supply contract, 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, 2011, NaiKun Wind had $6.75 million in cash and cash equivalents, compared to $7.77 million at the end of September 2010. -- For the fiscal year ended September 30, 2011, NaiKun Wind incurred a net loss of $2.53 million ($0.08 per share), compared to $5.82 million ($0.15 per share) for the year ended September 30, 2010. -- For fiscal 2012 the Company has budgeted cash expenditures of $1.5 million which, given the Company's existing cash position, will sustain operations into 2014 and beyond.
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 newly lowered 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 87,241 shares to its directors for the quarter ended December 31,
2011. Additionally, the Company issued 104,167 common shares to the Company's
CEO, for the quarter ended December 31, 2011, as the share portion of his
compensation. All shares were issued at the closing share price for December
31, 2011 of $0.12.
NaiKun Wind remains optimistic that the very significant energy demand
forecasts for the North Coast of B.C. will benefit NaiKun. The NaiKun Wind
Project is the only sizable permitted project in the area.
The demand for power in the region is dramatically increasing as new projects
are being proposed.
-- At least 3 LNG groups are in active negotiations, advanced planning and preliminary design work in the Kitimat/Prince Rupert area. These facilities will require up to 2500 MW of power to liquefy the natural gas, power that this region does not have. -- Completion of the N.W. Transmission Line to provide power for the resource rich Stewart Cassiar area will also add a further demand of 500-1000MW. -- The Rio Tinto Alcan recent announcement of the new larger Kitimat smelter will consume all the firm power from Kemano, some of which was previously sold to BC Hydro.
Many of
the projects are in the formative stages, however it
is difficult to not foresee the need for locally generated electricity to
supply this incremental demand.
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.
NaiKun Wind is a British Columbia-based renewable energy company with offices
in Vancouver, Masset and Skidegate. 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 396MW offshore wind project would generate enough energy to
provide electricity to 130,000 B.C. homes. 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.
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