Australia-based independent power producer Zenith Energy has surpassed its own targets in its first full financial year as a listed entity, recording a net profit after tax of A$8.47 million ($6.28 million).
The company only listed in May, but, since debuting, has won contracts with Newmont Mining for its Tanami gold mine, Gascoyne Resources for its Dalgaranga gold project and Dacian Gold’s recently opened Mt Morgans gold mine.
This has seen the company more than double its Build Own Operate contracted capacity from 88 MW when it listed in Australia to 189 MW this month.
“Zenith currently has 12 contracts in place representing 420 MW of generation capacity under control, and a robust pipeline of remote power generation opportunities,” it said.
Revenue for its 2018 financial year to the end of June came in at A$51.43 million, up 64% on the previous year, while EBITDA of A$18.22 million was 85% ahead of FY2017.
The A$8.47 million in net profit was not only 171% up from its previous financial year, but was ahead of the A$3.52 million forecast Zenith guided in its listing prospectus last year.
Zenith says it specialises in tailored, reliable, cost-effective solutions using gas, diesel, solar and hybrid generation.
Its 10-year power purchase agreement with Newmont at Tanami will see Zenith build, own and operate a 62 MW power station comprising 52 MW of gas-fired generation and around 10 MW of diesel back-up power. It is due to begin in the March quarter of next year.
Zenith Managing Director Hamish Moffat said the company was setting itself a goal of converting a “significant portion” of its current 380 MW pipeline to contracted capacity, as well as exploring “early opportunities in renewable power, smart-grid and storage”.
Zenith, founded in 2006, also has contracts in place with Northern Star Resources (Kundana and Jundee), Pantoro (Halls Creek), Independence Group (Nova), Incitec Pivot (Phosphate Hill), Billabong Gold (Plutonic) and OK Tedi Mining.