(All production figures are approximate)
Vancouver, B.C., Canada, February 8, 2010 - Magma Energy Corp. (TSX:MXY) reports that Icelandic geothermal company HS Orka hf, held 41% by Magma, today released its audited financial and operating results for the year ended December 31, 2009. These results may be accessed at:
While HS Orka reports significant earnings for the year, Magma Energy cautions that the impact of HS Orka's 2009 results on Magma's financial results will be limited as Magma only acquired its 41% interest in HS Orka on December 14, 2009. Furthermore, the HS Orka results were calculated pursuant to IFRS accounting standards and will be translated by Magma into Canadian GAAP accounting standards which differ in a number of respects.
Magma's quarterly results for the period ending December 31, 2009 will be announced after markets close on February 15, 2010.
About HS Orka:
HS Orka is the largest privately owned energy company in Iceland. Installed geothermal power capacity in total is 175 MW from the Svartsengi and Reykjanes power plants. Svartsengi also generates 150 MW of thermal energy for district heating. The electrical supply is partly sold in USD to industrial users under long-term power purchase agreements. HS Orka is adding 90 MW to existing facilities in Reykjanes and is on track with development of an additional 140 MW in other geothermal areas.
About Magma Energy Corp:
Magma Energy Corp is a geothermal power company which operates, develops, explores and acquires geothermal energy projects. We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and an interest in two other operating power plants in Iceland.
For further information, please contact:
Alison Thompson, Vice President, Corporate Relations
Magma Energy Corp.
Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding our growth, results of operations, revenues, requirements for capital, future demand for and prices of electricity, business prospects and opportunities, exploration and development, geothermal resources, recoverable geothermal energy or energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
In addition, it is worthy of note that the financial results of HS Orka represent the first operating year of the company in its present form. As such, future results could differ materially from those reported or anticipated. Accordingly, prospective investors should not place undue reliance on the current reported financial results. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.
There can be no assurance that the forward-looking information 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 applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.