NaiKun Wind Energy Group Inc. (the “Company” or “NaiKun Wind”) announced its financial results for the three months ended March 31, 2013, 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. NaiKun Wind remains confident that this direction represents the best available opportunities to support the advancement of the project and maximize shareholder value.
For the three months ended March 31, 2013, NaiKun Wind incurred a net loss of $0.4 million ($0.01 per share), compared to $0.6 million ($0.02 per share) for the three months ended March 31, 2012. As at March 31, 2013 NaiKun Wind had $4.5 million in cash and cash equivalents, compared to $5.3 million at the end of September 30, 2012. These numbers are consistent with the Company’s planned operations.
For fiscal 2013, 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 2015 and beyond.
The Company advises that it has set July 30, 2013 as the date for its next AGM.
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.
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 if an electricity purchase agreement can be secured.
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Press release, May 28, 2013; Image: alphaventus