Thorium Power Ltd., a pioneering U.S. nuclear energy company, provided a business update and year-end financial results for the period ending December 31, 2007. The company is focused on developing non-proliferative nuclear fuel technology and provides inclusive advisory services for developmental-stage nuclear energy programs.
“We are quite pleased with the tremendous strides we have made in building awareness for our patented non-proliferative, low waste nuclear fuel designs,” said Seth Grae, CEO of Thorium Power. “In December 2007, Thorium Power reached a major milestone as we entered into our first strategic advisory contract with a foreign government-owned entity generating professional fees totaling $3.7 million USD with a pre-payment of $5 million USD. We subsequently entered into a follow-on agreement, totaling a pre-payment of $4.3 million USD for a project covering an estimated three month period. In our capacity as advisor, we have developed a comprehensive roadmap as the first phase of a feasibility study for the deployment of civilian nuclear power plants. This landmark agreement provides validation for our business model, where strategic advisory services are early revenue drivers as well as important elements that create awareness for our broader offering. We are confident that this is the beginning of a trend toward cleaner and safer nuclear fuels, and safer, transparent and compliant nuclear program development. Thorium Power is ideally suited for the ensuing nuclear renaissance.”
Mr. Grae continued to say, “We continue to attract accomplished leaders from across the industry to join our experienced team. James D. Guerra, formerly of Exelon Corporation, the largest generator of nuclear energy in the United States, was appointed Chief Financial Officer, Executive Vice President and Treasurer of Thorium Power. Dr. Hans Blix, a leading international authority on nuclear safety, joined us as a senior advisor, bringing his valuable global experience to support our mission. And most recently, we appointed Robert Ihde, a veteran nuclear industry executive and fuel expert who headed U.S. subsidiaries of Areva, to our Technical Advisory Board. We are pleased to have such high-caliber individuals join Thorium Power and we will benefit from their valuable expertise, collective experience and business acumen in the nuclear field.”
In conclusion, Mr. Grae notes, “During the fourth quarter, we completed a new formal agreement with Russia’s Kurchatov Institute relating to the irradiation testing program for the company’s fuel designs, a process that provides an important step towards the demonstration of our fuel designs in a full scale commercial reactor. The agreement assigned to Thorium Power Inc., a wholly owned subsidiary of Thorium Power, Ltd., the worldwide rights, title and interest in and to the technical data generated from the ampoule irradiation testing of seed and blanket fuel samples in the Kurchatov research reactor from the past two years. Equally vital to the development of our technology, the agreement allowed us to enter an international patent application relating to our seed and blanket fuel, further bolstering our strong patent portfolio. Our proprietary fuel designs bring a unique and innovative approach to the generation of nuclear power, one that clearly differentiates Thorium Power from all other fuel technologies. We firmly believe the future of the nuclear renaissance will depend on viable solutions to significant concerns such as proliferation, waste, and operating economics.”
Operating loss for the twelve months ended December 31, 2007 was $11.8 million, in contrast to operating loss of $12.3 million for the same time last year. Net loss for the twelve months completed December 31, 2007 was $11.5 million, or $0.04 per share, compared to net loss of $11.7 million or $0.08 per share, for 2006. As of December 31, 2007, the company had roughly $9.9 million of cash and cash equivalents and $3.4 million of working capital. Due to the company’s revenue recognition policy, the contracts signed during this period will be reflected as revenues starting in Q1 2008.
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