Alterra presentation DEC

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Transcript of Alterra presentation DEC

  • 1. TSX : AXY1 DEC 2011COMPANY PRESENTATION

2. Forward-Looking InformationThis Presentation contains certain forward-looking information within the meaning of Canadian securities laws, which may include, but isnot limited to, statements with respect to future events or future performance, managements expectations regarding Alterras productioncapacity, results of operations, cash flows, revenues and requirements for capital, future demand for and prices of electricity, and Alterrasbusiness prospects and opportunities.These statements reflect the current views of Alterra with respect to future events and are necessarily based upon a number ofassumptions and estimates that, while considered reasonable by Alterra, are inherently subject to significant business, economic, politicaland social uncertainties and contingencies. Many factors, both known and unknown, could cause Alterras actual results, performance orachievements to be materially different from the results, performance or achievements that are or may be expressed or implied by suchforward-looking statements contained in this presentation, and Alterra has made assumptions based on or related to many of thesefactors. Such factors include, without limitation: fluctuations in currency markets (particularly with respect to the Icelandic krona, the U.S.dollar and Canadian dollar); risks related to the technological and operational nature of Alterras business; changes in national or regionalgovernments, legislation, regulation, permitting or taxation; political or economic developments in Canada, the United States, Iceland orother countries where Alterra may carry on business; risks and hazards associated with the business of renewable energy generation;risks relating to the creditworthiness and financial condition of suppliers and other parties which Alterra will deal with; inadequateinsurance or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with and claims by localcommunities and First Nations; availability and costs of equipment and labour; litigation; the success and timely completion of plannedexpansion and development programs; the growth rate in net electricity consumption; support and demand for renewable energy;government initiatives to support the development of renewable energy generation; the reliability of technical data and capital expenditureestimates; and availability of capital to fund development and expansion programs. Forward-looking information and statements are alsobased upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur.Although Alterra has attempted to identify important factors that could cause actual results to differ materially, there may be other factorsthat cause results not to be as anticipated, estimated, described or intended. There can be no assurance that the forward-lookinginformation will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicablesecurities laws, Alterra does not assume any obligation to update or revise such forward-looking information to reflect new events orcircumstances.2 3. Alterra Power Strategy and AssetsOur mission: to be a leading global renewable energy companyClean energy: permanent, stable cash flow with zero fuel cost/exposure Incentives are great (USA, Chile, Europe) but not essential (Iceland) Core infrastructure business once built, permanent valueOur assets today: Generation: Hydro Two large run-of-river plants in BC - 235 MW (40% Alterra)Wind BCs largest wind farm - 144 MW (51% Alterra) GeothermalTwo power plants in Iceland - 175 MW (75% Alterra) One power plant in Nevada - 16 MW (100% Alterra) Pipeline: 509 MW development pipeline in wind, hydro, geothermal Balance Sheet: $1.1 billion total assets Management Team: Deep experience in wind, hydro, geothermal3 4. Recent Growth MetricsMagma Energy (founded 2008) acquired Plutonic Power in 2011; namechanged to Alterra Power CorpCAPACITY (end of year)PRODUCTION 3501,8001,600 3001,400 2501,200 2001,000 GWhMW 150 800 600 100 40050 200 0 020092010 2011e 2012e2009 2010 2011e 2012eREVENUE EBITDA $120$70 $60 $100 $50Millions USD$80 Millions USD$40$60$30 $20$40 $10$20 $- $- $(10) 2009 2010 2011e 2012e2009 2010 2011e 2012e4 5. Balanced Portfolio - Global Exploration and OperationsICELAND: 2 geothermal power plants with 175 MW capacity (75% Alterra) Additional 130 MW of defined expansion plans 80 MW of expansions underwayWESTERN CANADA: Toba-Montrose hydro plants with 235 MW capacity (40% Alterra) Dokie wind farm with 144 MW capacity (51% Alterra) 124 MW Upper Toba expansion and 156 MW Dokie 2 expansionWESTERN USA: 16 MW geothermal power plant with expansion potential Excellent government support for geothermal projects 6 other early stage propertiesCHILE Very large (320 MW) inferred resource discovered at low cost Emerging renewable power markets with world-class potential Strong government support for geothermal projects Active exploration concessions covering in excess of 158,000 haFURTHER GROWTH ASSETS IN ONTARIO, BC, ITALY AND PERU5 6. Assets and Pipeline CapacityProjectGross AXY Share TechnologyOperating (2011)Soda Lake 16 MW 16 MWGeothermalSvartsengi75 MW 56 MWGeothermalReykjanes 1 & 2100 MW 75 MWGeothermalEast Toba & 235 MW 94 MWHydroMontroseDokie 1144 MW 73 MWWindTotal Capacity570 MW 315 MWAnnual Net Generation 1,529 GWhOperating Additions (2016)Upper Toba 124 MW62 MW HydroOntario Solar 50 MW 5 MW SolarReykjanes 3 & 4 80 MW60 MW GeothermalDokie 2156 MW80 MW WindMcCoy 15 MW15 MW GeothermalMariposa50 MW50 MW GeothermalEldvrp 50 MW38 MW GeothermalOther (e.g. Chile, Iceland)200 MW200 MWGeothermalPipeline Total 725 MW509 MWTotal Capacity1,295 MW 824 MW6 7. Outstanding Developer Track RecordSuccessful developer track record across renewabletechnologies Proven ability to develop and deliver large new assets at greenfield locations Development teams from all these projects remain substantially intactRecent project successesWindDokie 144 MW2011 CODHydro Toba Montrose 236 MW2010 CODGeothermalReykjanes 100 MW2006 CODNear term organic growth - all near existing operationsWindDokie 2 156 MW COD 2014EHydro Upper Toba124 MW COD 2015EGeothermalReykjanes 3/480 MW COD 2013-14E7 8. Leading Growth Profile Alterra has one of Canadas largest clean energy development pipelines 9006,000 800 1535,000 700 600 1564,000153Net MW 500GWh3,000 400 153156 300732,000 73 7394 510 94 94 200 94 94295 1,000 100191185 2071471470 0 20102011201220132014 2015 2016 GEOTHERMAL HYDRO WINDSOLARExisting Generation Capacity Additions Soda LakeDokie 1 ABW Solar Reykjanes 3 Reykjanes 4 EldvrpPipeline HS OrkaDokie 2 Maule Toba MontroseUpper Toba8 9. Analyst Coverage and Capital Structure C APITAL S TRUCTURE : PRO- FORMA NET INTERESTMARKET CAPITALIZATION (30 NOV 2011) C$ 184 MMCASH (30 SEP 2011) US$ 41 MMTOTAL ASSETS (30 SEP 2011)US$ 907 MMLONG TERM DEBT (30 SEP 2011)US$ 513 MMFIRMCONTACTEMAILCanaccord Genuity Jared Alexanderjalexander@canaccordgenuity.comCormark SecuritiesMacMurray Whalemwhale@cormark.comJacob SecuritiesJohn McIlveenjmcilveen@jacobsecurities.comMackie Research Capital Matthew Gowing matthew.gowing@researchcapital.comMirabaud Securities Gus Hochschild gus.hochschild@mirabaud.co.ukNational Bank Financial Jeremy Mersereau jeremy.mersereau@nbfinancial.comPritchard Capital PartnersVeny Aleksandrov valeksandrov@pritchardcapital.comRaymond James SecuritiesSteven Listeven.li@raymondjames.caSalman Partners Mike Plaster mplaster@salmanpartners.comINDEX COVERAGEArdour Global Alternative Energy IndexS&P/TSX Clean Technology IndexRENIXX Renewable Energy Industrial Index9 10. Value Proposition Summary / Next MilestonesVALUE PROPOSITION Core Producing Assets - long term, stable cash flow Diversified Assets - by geography & generation type Larger Size - better liquidity, lower cost of capital Outstanding Project Pipeline - geothermal, hydro, wind assets could triple output by 2016 Exceptional operating, financial and development teamsNEXT MILESTONES Iceland PPA and financing for next 130 MW expansion Chile partner financing and next phase of drilling at Maule Exploration of new Peruvian and Italian concessions Continuing expansion at Soda Lake and US assets Advancement of Dokie 2 and Upper Toba projects Ongoing M&A opportunities10 11. TSX : AXY11 DEC 2011 www.alterrapower.ca 12. TSX : AXY12 DEC 2011 www.alterrapower.ca 13. Senior Management Outstanding development, financial and operations expertise Ross Beaty: Executive Chairman Geologist and resource company entrepreneur with 40 years experience in the international minerals industry. In early 2008, Mr. Beaty founded Magma Energy Corp to focus on international geothermal energy development. In 2011 Magma and Plutonic Power merged to create Alterra Power. Mr. Beaty is the Director of the Nature Trust B.C. and patron of the Beaty Biodiversity Center at the University of B.C. Recipient of numerous awards, including the prestigious Viola Macmillan Award. Donald McInnes: Executive Vice-Chairman Mr. McInnes was the founder, Vice-Chair and CEO of Plutonic Power Corp. He currently serves as Vice-Chair of the Clean Energy Association of British Columbia and is a director of Prostate Cancer Canada, the Powell River Economic Development Society, the Duke of Edinburghs Award-British Columbia and Yukon Division and is a governor of the British Columbia Business Council. John Carson: Chief Executive Officer Mr. Carson is a highly experienced renewable energy business leader with a core expertise in structuring and leading financial transactions. His financing experience includes senior