NaiKun Wind Energy Group Inc. (“the Company” or “NaiKun Wind”) announced its financial results for the three months ended March 31, 2012, a fiscal period in which the Company continued to explore ways to forward the NaiKun Wind Project while controlling its costs.
A substantial restructuring 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 remains confident that these undertakings represent the best available opportunities to support the advancement of the project and maximize shareholder value.
For the three months ended March 31, 2012, NaiKun Wind incurred a net loss of $0.6 million ($0.02 per share), compared to $0.6 million ($0.02 per share) for the three months ended March 31, 2011. As at March 31, 2012 NaiKun Wind had $5.9 million in cash and cash equivalents, compared to $7.5 million at the end of March 31, 2011. These numbers are consistent with the Company’s planned restructuring.
For fiscal 2012, the Company expects cash operating expenditures to be approximately $1.5 million. On this basis, the Company has sufficient financial resources to sustain operations into 2014 and beyond.
NaiKun Wind Energy Group Inc. 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 396MW 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 over $400 million in direct expenditures in the province during construction, of which $250 million will benefit North Coast communities.
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 if an electricity purchase agreement can be secured.
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Offshore WIND staff, May 23, 2012; Image: alpha-ventus