Nevada Geothermal Power Inc. (NGP.V) today announced results for
the three months ended September 30, 2012.
The company recorded a profit from continuing operations of
$42,326 for the quarter ended September 30, 2012. This was the
result of cost reductions, in particularly in staff costs and
resource property expenses, and a gain on $1,000,000 recorded in
respect of the earlier sale of 50% of the Crump Geyser project.
On August 10, 2012, NGP and Ormat reached an agreement to extend
the time period in which Ormat is required to complete the initial
development spending of $15 million to maintain their interest in
the Crump Geyser project to June 30, 2014. In return the total cash
installments payable under the agreement were increased from $2.5
million to $3.0 million.
A payment of $500,000 was received during August 2012, and a
further guaranteed payment of $500,000 was received during November
2012. The final payment of $1.7 million is due on June 30, 2014.
Ormat has the right to early termination of the agreement, in which
case the $1.7 million is no longer payable and 100% of the project
reverts to NGP.
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