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Magma CEO Ross Beaty (JOHN LEHMANN/JOHN LEHMANN/GLOBE AND MAIL)
Magma CEO Ross Beaty (JOHN LEHMANN/JOHN LEHMANN/GLOBE AND MAIL)

Magma loss deepens in second quarter Add to ...

Magma Energy Corp. , a Vancouver-based geothermal power company, says second quarter losses deepened to $9.1-million from $5.3-million a year earlier partly on higher expenses.

Energy sales increased in the three months ended Dec. 31 to $18.8-million from $1.4-million a year earlier.

Production soared but so did expenses.

Its Soda Lake operation contributed revenue of $1.7-million and accounted for $1.1-million of production costs, while HS Orka contributed $17.1-million of revenue and accounted for $12.2-million of production costs.

In September, the company acquired a 98.5-per-cent interest in HS Orka to expand in Iceland after acquiring an 84.2-per-cent interest in the power plant operations the month before.

Iceland's HS Orka power plant operations to 84.2 per cent last August and to 98.5 per cent the following month.

It says it is in discussions with a group of Icelandic pension funds to sell their minority interest in HS Orka.

It also completed an expansion at its Soda Lake, increasing annual output from about 60,000 megawatts per hour to 84,000 megawatts per hour.

The company is preparing a grant application to the U.S. Treasury Department for payment of up to 30 per cent of the eligible project costs.

Magma operates, develops, explores and acquires geothermal energy projects, with properties in the western United States, Iceland and Latin America, including one operating power plant in Nevada and two in Iceland.

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