Wall Street Newscast:
Good afternoon, today we are speaking with Larry McNabb, he is the President of Welwind Energy, which is traded under the symbol WWEI. The Company is involved with the development and operations of wind farm projects in China, and Canada. Larry, welcome to the program.
WWEI President Larry McNabb:
Thank you for having me.
Wall Street Newscast:
To start off, I see the company recently announced a letter of financing for Phase 1 of the A La Shan Zuo Qi Windfarm project, can you tell us a little about this project, and how if any this financing may effect shareholders of Welwind Energy common stock?
WWEI President Larry McNabb:
A La Shan Zuo Qi Windfarm is a 49.5 MW wind farm. The partnership will give Welwind a 49% interest in the entire project. The project has a signed Power Purchase Agreement (PPA price: 0.08 cents USD/KWH) dated August 5, 2008 from the Neimeng Provincial Development and Planning Commission.
Welwind has received a commitment for financing up to $120,000,000 from Global Financial & Capital. The financing will not impact the common stock of the company as it is debt financing and not through the issuance of stock. If anything this should add value to the share price of the stock.
On September 30, Welwind announced an additional interest in A La Shan Zuo Qi Windfarm Phase II development. Welwind Management met with the owners of the project to visit the site and committed to an additional 49% interest in the Phase II 49.5 MW Windfarm. Ningxia anticipates a PPA for Phase II within 5 weeks time.
Wall Street Newscast:
Can you provide us, once completed, the revenue projections for this Phase 1 wind farm project?
WWEI President Larry McNabb:
Based on NEP's signed Power Purchase Agreement (PPA price: 0.08 cents USD/kWH) with Neimeng Provincial Development and Planning Commission, Welwind estimated the revenues as follows:
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Yearly Cash Flows
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Year Pre-tax After-tax Cumulative
# $ $ $
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1 6,786,499 6,786,499 -11,820,252
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3 7,784,995 7,784,995 614,671
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5 8,859,314 8,859,314 17,786,274
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10 10,540,563 10,540,563 69,658,530
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15 4,642,927 4,642,927 95,721,477
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20 14,379,361 14,379,361 170,840,885
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25 18,267,480 18,267,480 257,830,153
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The figures reflect projected revenues on a 49 megawatt install only. The company's build out of 49 megawatts is the first phase of a four hundred (400) megawatt wind farm. The yearly projections are based on the historical wind speed for the area, size of turbines installed and wind speeds.
Wall Street Newscast:
Regarding the Zhanjiang windfarm project, is there any update you can provides us on a power purchase agreement, and what have been the delays holding this up?
WWEI President Larry McNabb:
De Delley will fly to Zhanjiang to meet with government officials regarding the Zhanjiang Windfarm next week. His intention is to fully understand the delay and try to have a commitment date on the PPA. The Urban Planning and Development Commission caused the delay from Welwind receiving their PPA. UPDC had development plans they wanted to present to government that potentially infringed on the company’s windfarm. The local mayor has assured the Welwind Directors in China that this issue has been resolved and the PPA is moving forward. The development of a Windfarm in this province is a new concept for each level of government. Getting each level to cooperate and push documents to the next level has been the biggest challenge.
Wall Street Newscast:
In recent announcements you mentioned Welwind and Ningxia Electric Power Group were in additional discussions on cooperating on the development of windfarm equipment manufacturing, as well as production of silicon-based solar panels, and solar power plants, is there any additional information you can provide on this relationship and what it may mean for the company in the coming years?
WWEI President Larry McNabb:
Due to the sensitivity of current negotiations, the company is not prepared to discuss this issue in depth at this time. When discussions become more concrete, the company will issue appropriate press releases and file necessary 8K’s filings with SEC.
Wall Street Newscast:
As of today can you give us a general count on the shares issued and outstanding on Welwind Energy's common stock?
WWEI President Larry McNabb:
As of Oct. 31, 2008, the Company currently has 198,464,837 shares issued and outstanding.
Wall Street Newscast:
Finally, how can investor obtain additional information on your company? (website, phone, etc)
WWEI President Larry McNabb:
Investors interested in additional information on the company can contact Robert Bragg at NetGain Financial Investor Relations by calling 866-636-0252 or rob@netgain-financial.com
Wall Street Newscast:
Larry, thank you once again for joining us on our program
WWEI President Larry McNabb:
Thank you Sarah.
Wall Street Newscast:
Once again, we were talking with Larry McNabb, the President of Welwind Energy, which is traded under the symbol WWEI, and this has been Wall Street Newscast
