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Results Announcement For Year To 30 June 2007

Action Packed Year For NZ Windfarms Ltd

Highlights

  • Net result of $352,000, including a one off gain of $1.1million

  • First electricity sales, from Stage 1 of the Te Rere Hau wind farm

  • Confirmation of the Te Rere Hau joint venture with NPBB Pty

  • Asset base grown to $81 million through $75 million capital

  • Development programme focused on completing Te Rere Hau 2

 

 

In December 2006, NZ Windfarms transferred the Te Rere Hau Wind project to a 50/50 joint venture between itself and NPBB Pty Limited which is owned by NP Power and Babcock & Brown Windpower.

 

Following careful evaluation of the performance of the Stage 1 turbines, the joint venture placed two further orders totalling 28 turbines, (14 in December 2006 and 14 in June 2007). Confirmation of an order for a further 64 turbines (being Batches 3 & 4) is presently being evaluated. Subject to a favourable independent report on progress towards IEC certification of the Windflow turbine, an order may be placed by 30 September 2007. Completion of all four stages (programmed for mid 2009) will see Te Rere Hau with 97 turbines in place and generation capacity of 48.5 megawatts.

 

The work programme at Te Rere Hau for the 2007/2008 year includes the completion of the remaining site roads, foundations and underground electrical reticulation for Stage 2, followed by installation of the next 28 new turbines, bringing the total of turbines installed on site to 33.

 

In June 2007 the Company completed a $75 million share issue and moved its listing from the NZAX to the NZSX. As part of the issue, Vector Limited became a cornerstone shareholder in NZ Windfarms, with a 19.9 percent shareholding.

 

The Company is in a strong financial position, with a cash balance of $72 million at year end and no term debt. The cash balance is held across six registered banks and will be drawn as needed to fund the Company’s development programme.

 

Future focus and outlook

 

NZ Windfarms is committed to building smaller-scale wind farms that, where possible, make use of existing capacity in local lines and roading networks. Such developments provide economic benefits to local communities and assist efficient electricity generation and distribution.

 

The Company is focused on completing the Te Rere Hau wind farm over the period up to June 2009, and on duplicating its success in other locations. It has a 16 percent stake in WindPower Maungatua Ltd, which holds the development rights to a wind farm site in the Otago region with the potential for approximately 20 megawatts of capacity. Feasibility studies are almost complete on this site. A number of other sites are in various stages of evaluation.

 

The Board believes the longer-term outlook for the Company is strong, given expanding demand for electricity in New Zealand, as in other countries, and increasing demand for electricity from renewable sources.

 

For further information contact

Derek Walker

Chairman

(03) 943 5410