Base Carbon Announces Second-Quarter 2022 Financial Results and Provides Operational Update
August 15 2022 - 8:00AM
Base Carbon Inc. (
NEO:BCBN) (
“Base
Carbon”, or the “
Company”) is pleased to
announce its second-quarter 2022 financials results. All financial
references are denominated in US dollars, unless otherwise noted.
During the second quarter of 2022, amongst other
achievements, the Company announced the execution of a carbon
reduction project involving the distribution of 850,000 cookstoves
and 364,000 water purifiers in Vietnam. Base Carbon facilitated a
contractual project offtake agreement for initial carbon credit
production which is anticipated to result in a payback period of
2.75 years on aggregate capital deployed. The distribution of the
devices in Vietnam is expected to be completed by mid 2023, ahead
of schedule, with approximately 285,000 devices having been
distributed to date. The distribution of cookstoves as part of the
Company’s initial carbon reduction project in Rwanda is also
outperforming initial project timelines with full deployment of
cookstoves currently expected by the end of 2022.
Second-Quarter Corporate and Financial
Highlights as of June 30, 2022
- Base Carbon, through its
subsidiary, executed project documentation related to the
development of a cookstove and water purifier carbon reduction
project in Vietnam with Citigroup Global Markets Limited
contracting as carbon credit off-taker to the project.
- Distribution of Vietnam household
devices is ahead of initial schedule with approximately 285,000
devices distributed to date, with full distribution expected by mid
2023.
- Distribution of cookstoves
associated with the Rwanda project is ahead of schedule with
approximately 54,000 cookstoves distributed to date. Full
distribution of cookstoves is anticipated by year-end
2022.
- The Company had total assets of
$56.4 million, mainly comprised of $37.0 million in cash and cash
equivalents, $5.6 million in investments into carbon reduction
credit projects, $0.9 million in prepaid and other assets, a $1.3
million investment in AirCarbon Pte Ltd. and a $11.4 million
investment in associate company Hardwick Business Climate
Limited.
- $0.2 million in accounts payable
and accrued liabilities, comprising total liabilities.
- During the three-months ended June
30, 2022, the Company incurred a net comprehensive loss of $2.9
million, of which $1.3 million was attributable to an unrealized
foreign exchange loss resulting from the U.S. Dollar strengthening
against the Canadian Dollar by approximately 3%
quarter-over-quarter. Major operating expenses were attributable to
consulting and professional fees, salaries and wages, and
share-based compensation. The Company’s revenue streams are still
being developed.
For more information, please refer to the
Company’s second quarter 2022 financial results and management
discussion and analysis available on www.sedar.com and
www.basecarbon.com.
About Base Carbon
Base Carbon is in the business of providing
capital, development expertise and management operating resources
to projects involved primarily in voluntary carbon markets and the
broader ESG economy. Base Carbon seeks to be the preferred carbon
project partner in providing capital and developmental resources to
carbon projects globally and, where appropriate, will endeavour to
utilize technologies within the evolving carbon industry to enhance
efficiencies, commercial credibility, and trading transparency.
For more information, please visit
www.basecarbon.com.
Investor Relations Contact:
Meghna NairManager, Investor RelationsTel: +1 647 952 3979E-mail:
investorrelations@basecarbon.com
Wes Fulford, Chief Financial Officer, and Ryan
Hornby, Chief Legal Officer are responsible for this press
release.
Cautionary Statements Regarding Forward
Looking Information
This news release contains “forward-looking
information” within the meaning of applicable securities laws
relating to the focus of Base Carbon’s business, the Company’s
carbon reduction project and financial results of the Company. Any
such forward-looking statements may be identified by words such as
“expects”, “anticipates”, “intends”, “contemplates”, “believes”,
“projects”, “plans” and similar expressions. Readers are cautioned
not to place undue reliance on forward-looking statements.
Statements about, among other things, Base Carbon’s strategic plans
and details of development timelines of current projects are all
forward-looking information. These statements should not be read as
guarantees of future performance or results. Such statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be
materially different from those implied by such statements.
In respect of the carbon reduction projects,
certain factors that influence the commercial success of the
projects include, among other things: (i) the Company’s expertise
with respect to the evaluation, planning and negotiation of the
projects, (ii) the conduct of the projects’ counterparties, (iii)
project costs and carbon credit market prices, and (iv) ongoing
project monitoring and issuance of carbon credits by Verra. In
respect of such projects, certain assumptions that influence the
commercial success of the project include, among other things: (i)
the development of the projects remains in line with anticipated
timelines and costs, (ii) project counterparties, including the
in-country developers and Verra, perform their contractual and/or
standard operating procedures, (iii) the manufacturers and
distributors of the cookstoves and water purifiers contracted by
the Company and the in-country developer satisfy their obligations
as expected and on expected timelines, (iv) local participating
households utilize the cookstoves and water purifiers supplied to
them in accordance with the expectations under the projects which
is then reflected by monitor reports accepted by Verra, and (v) the
Company has sufficient funds on hand to make carbon credit purchase
price payments.
Base Carbon assumes no responsibility to update
or revise forward-looking information to reflect new events or
circumstances or actual results unless required by applicable law.
When available, readers are encouraged to refer to the Company’s
management discussion and analysis on www.sedar.com for information
as to certain risks and other factors which may affect Base
Carbon’s business objectives and strategic plans.
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