Vancouver, Canada
May 24, 2007
Dynamotive Reports 1st Quarter 2007 Results
Dynamotive Energy Systems Corporation (“Dynamotive”) (OTCBB: DYMTF), a leader in biomass-to-biofuel technology, today reported its first quarter 2007 results.
For the three months ended March 31, 2007, the company reported a loss of $3.2 million or $0.02 per share, compared with a loss of $3.3 million or $0.03 a share for the same period a year earlier. When stock-based compensation is excluded, Dynamotive’s Q1 2007 net loss was $2.4 million, compared with $2.0 million during 2006. The slightly lower loss for the quarter is due mainly to the lower stock based compensation, largely offset by increased activity in most business areas. (All figures are in US dollars.)
As at March 31, 2007, the company had cash and cash equivalents of $4.4 million, compared to $11.7 million at March 31, 2006. The lower cash level is mainly due to capital expenditures for building the new, modular intermediate BioOil® production plant at Guelph, Ontario, and upgrading the established West Lorne, Ontario, facility.
Commenting on the company’s activities during the quarter President and CEO Andrew Kingston said: “We continued our steady progress in the first quarter of 2007 with the commissioning of our Guelph plant under way and work on West Lorne accelerating. We have now completed our initial production run of intermediate-grade biofuel - BioOil Plus - at Guelph and we expect to have both plants operational in the third quarter; signalling full commercial operation. Furthermore, our activities in Europe, the U.S., Latin America and China continued at an increased pace, with commercial project prospects in each of these markets.
“Strategically, we continue to have constructive discussions with Mitsubishi, and we are consolidating our partnerships with Consensus Business Group, Evolution Biofuels and Tecna. Internally, we continue to grow our capabilities in every area of the Dynamotive organization, and our progress can be easily monitored through our website, which we update regularly,” continued Kingston.
Outlook
“During the balance of 2007, we expect to achieve key milestones with our existing project opportunities and add to them. Having two plants in operation later this year will give us a strong competitive advantage in the marketplace, demonstrating the production of cellulose-based fuels at commercial levels well ahead of our competitors. We have noted, too, that there has been specific growing interest in fast pyrolysis in the marketplace, as well as an increasing recognition that this technology can co-exist and support ethanol and biodiesel operations,” concluded Kingston.
Recent Highlights for 2007
- Hot commissioning commenced at new Guelph plant, followed by completion of first intermediate-grade BioOil® production run May 23.
- Major equipment delivered to West Lorne site as upgrading of plant begins
- Dynamotive announces project for up to six biofuel plants in Argentina, subject to financing
- First Resources Corporation developing partnerships with First Nations People in Canada
- Dynamotive contracts with Ontario Power Authority for green electricity supply from West Lorne
Summary Financial results are presented as follows:
| Consolidated Statement of Loss |
| (Expressed in 000's of US Dollars) |
| |
| |
| |
| Expenses |
|
|
| Marketing and business development |
346 |
573 |
| Research and development |
894 |
1,021 |
| General and administrative |
2,094 |
1,551 |
| Depreciation and amortization |
30 |
23 |
| Interest expense |
- |
269 |
| Exchange gain |
(17) |
(99) |
| |
|
|
| Total expenses |
3,347 |
3,338 |
| |
|
|
| Other (income) and expenses |
(79) |
(40) |
| Loss before minority interest |
3,268 |
3,298 |
| |
|
|
| Non-controlling interest |
(29) |
|
| |
|
|
| Loss for the period |
3,239 |
3,298 |
| |
|
|
| Weighted avg. number of common shares outstanding (in thousands) |
177,602 |
131,906 |
| |
|
|
| Loss per Common Share for the Period |
$0.02 |
$0.03 |
Disclaimer Statement
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