Base Carbon Announces Second-Quarter 2022 Financial Results and Provides Operational Update

TORONTO, Ontario, CANADA


TORONTO, Aug. 15, 2022 (GLOBE NEWSWIRE) -- 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 Nair
Manager, Investor Relations
Tel: +1 647 952 3979
E-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.