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SGP Reports Second Quarter 2009 Results
Vancouver, British Columbia - Sierra
Geothermal Power Corp. [TSX-V: SRA] (“SGP”) today disclosed
results for its second quarter ended June 30, 2009.
Q2 2009 and Subsequent Highlights
• Applied for approximately US$46.1 million in US
Government grants
• Ended the second quarter of 2009 with $2.9 million of
working capital
• Completed a $3.78 million financing subsequent to the
end of the quarter
• Received a favorable environmental assessment
decision and drilling permits for its Alum geothermal power project in
Nevada
• Completed the acquisition of Cayley Geothermal Power
Corp.
• Strengthened the Board of Directors with the addition
of Jerry Evans, Managing Partner at Aurion Infrastructure Inc., a company
investing in North American mid-market infrastructure opportunities
“During and subsequent to the second quarter, investor interest in our
company and the geothermal industry accelerated,” said Gary Thompson,
President and Chief Executive Officer of Sierra Geothermal. “We believe
we are well-positioned to benefit from this renewed interest, especially
given the potential for significant US government grants to be
awarded later this year, and available tax incentives and loan guarantees
for geothermal projects. With our $3.78 million financing completed
earlier this month, we are ramping up to complete power purchase
agreements and related transmission studies, along with drilling and
geophysical activities at our two most advanced projects, Silver Peak
and Reese River.”
DOE Grant Applications
SGP has applied under the American Recovery and Reinvestment Act 2009 for
seven US Government cost-sharing geothermal exploration and drilling
grants of which we may be awarded up to US$46.1 million. Any grants
awarded would require SGP to contribute roughly equivalent matching
funds. The DOE has indicated that it intends to give notification
of awards to these grant applicants between September 2009 and November
15, 2009. For further details on SGP’s grant applications, please refer
to its Q2 2009 Management Discussion and Analysis which has been filed on
SEDAR at www.sedar.com
Financial Results
3 months ended 3 months ended 6
months ended 6 months ended
June 30,
2009 June 30,
2008 June 30,
2009 June 30, 2008
Loss
$642,400
$955,676
$1,070,631 $1,672,579
Loss per share
$0.01
$0.01
$0.01
$0.02
Weighted average 75,910,625
68,318,978
75,065,061 68,307,557
common shares
outstanding
The decrease in the net loss in the second quarter of 2009 and the first
half of 2009 compared with a year earlier was mainly due to a decrease in
stock-based compensation expense and the company’s efforts to reduce
expenses.
As at June 30, 2009, SGP had working capital of $2,926,064 compared to
working capital of $4,039,809 as at December 31, 2008. However, cash
reserves were increased by SGP’s August 5, 2009 $3.78 million financing.
Cash used in the second quarter of 2009 and in the six months ended June
30, 2009 decreased to $546,838 and $1,115,400 respectively from
$2,085,379 and $5,248,573 in the second quarter of 2008 and in the six
months ended June 30, 2008. The decrease in SGP’s use of cash
primarily resulted from focussing only on non-drilling exploration
activities, including permitting, power purchase agreement negotiations
and related transmission studies.
The full text of SGP’s Q2 2009 financial statements and Management Discussion
and Analysis is available on the SEDAR website at www.sedar.com.
About Sierra Geothermal Power Corp
Sierra Geothermal Power Corp. (SGP) is a renewable energy company focused
on the exploration and development of clean, sustainable geothermal
power. It is based in Vancouver, British Columbia and listed on the TSX Venture
Exchange under the symbol SRA. Its portfolio of geothermal projects
located in Nevada and California exceeds 365 square
kilometres (90,000
acres) and has a combined total estimated capacity
of greater than 500 MW. The company intends to finance development by
utilizing a combination of corporate equity, joint venture partnerships
and project debt, with the support of US Government grants and loan
guarantees. To find out more about Sierra Geothermal Power Corp. (TSX-V:
SRA) visit our website at www.sierrageopower.com.
On behalf of the Board of Directors
Gary Thompson, P.Geo
President & CEO, Director
Contact Information
Gary Thompson, President & CEO
Ph: (604) 683-0332 / 1-800-563-5631
info@sierrageopower.com
Anthony Srdanovic, Investor Relations
Ph: (604) 642 6179
asrdanovic@sierrageopower.com
Not for distribution to United States newswire services or for
dissemination in the United States. Any failure to comply with this
restriction may constitute a violation of United States securities
law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press
release contains forward-looking statements. Forward-looking statements
are projections of events, revenues, income, future economic performance
or management's plans and objectives for future operations. In some cases
you can identify forward-looking statements by the use of terminology
such as "may", "should", "anticipates",
"believes", "expects", "intends",
"forecasts", "plans", "future",
"strategy", or words of similar meaning. Forward-looking
statements in this press release include statements about accelerated
investor interest in SGP and the geothermal industry, and the Company’s
belief that it is well-positioned to benefit from this renewed interest,
especially given the potential for significant US government grant awards
to be awarded later this year, and tax incentives and loan guarantees for
geothermal projects; and the Company’s intent to finance the development
of its projects through a combination of corporate equity, joint venture
partnerships and project debt with the support of U.S. government grants
and loan guarantees. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors, including the
risks inherent in our industry, the poor capital markets and other risks
identified by us in our periodic filings on SEDAR (which can be viewed at
www.sedar.com). Any of these risks could cause our or our industry's
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking
statements.
While these forward-looking statements and any assumptions upon which
they are based are made in good faith and reflect our current judgment
regarding the direction of its business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested in this press
release. Except as required by applicable law, including the securities
laws of Canada, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.
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