Geothermal energy company Magma loses US$2.7 million in first quarter

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By The Canadian Press


VANCOUVER, B.C. - Magma Energy Corp. (TSX:MXY), a Vancouver-based geothermal energy producer, reports it lost nearly US$2.7 million or one cent a share in the fiscal first quarter ended Sept. 30. That compared with a loss of $829,860 or one cent for the same year earlier period.


Revenues from energy sales were just over $1 million in the quarter, the first three-month period of the energy producer's 2010 fiscal year, the company reported. Magma generated no operating revenue for the same period a year earlier.


Ross Beaty, chairman and CEO, said Magma grew quickly in the latest quarter, with acquisitions in Iceland, Nevada and a promising exploration succees in South America, as well as the company's initial public offering.


"We completed our initial public offering on July 7, which raised $88 million net of costs," said Beaty. "We also added seven new geothermal exploration properties in Nevada, announced discovery of a 140 megawatt geothermal resource on our Maule property, Chile, and entered into agreements in Iceland that, when completed, will result in Magma becoming a 43 per cent owner of Iceland's largest private geothermal power company.


"These transactions will all help us achieve our mission of becoming one of the world's pre-eminent geothermal power producing companies."


Magma Energy has one operating power generation plant, the Soda Lake operation in Nevada, and an extensive portfolio of exploration properties throughout the western United States and Latin America.

Geothermal energy company Magma loses US$2.7 million in first quarter as company builds business - Yahoo! Canada News