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Genex market update

Genex kidston solar farm

Genex  Power  Limited  provides  the  following market update on its business activities in the context of the uncertain and rapidly unfolding COVID-19 situation. COVID-19 Response:

  • The Company has implemented a mandatory work from home policy with the office only available to employees on a 1 by 1 basis with prior permission from the CEO;
  • Genex management team remains operational with daily management calls to discuss key updates across all areas of the business;
  • The  Company  has  also  implemented  a  policy  to  restrict  visitors  to  our  operating  and accommodation facilities at Kidston such that only essential personnel  approved by the COO are permitted;
  • The COVID-19  situation  continues  to  be  monitored  with  the  Company’s  response  to remain at all times consistent with State and Federal Government directions;
  • To date, the overall impact on personnel has been minimal with staff support continuing to remain the top priority; and
  • The focus remains on the long term delivery of the Company’s projects and value creation for the Company’s stakeholders.

Corporate:

  • Strong cash position with cash at bank of $16.9m at the end of February 2020; and
  • The Company  refinanced  its  debt  facility in  December  2019with  the  next  refinancing milestone of the facility not until December 2024.50MW Kidston Solar Project (KS1);
  • KS1 is operating at full capacity;
  • COVID-19  is  not  expected  to  have  a  direct effect  on  the  revenue  generated  from  KS1 provided key components continue to be available for operation and maintenance; and
  • While the sun is shining in Queensland, KS1 is expected to operate and generate revenue which is hedged pursuant  to a long-term energy  off-take contract  with  the  Queensland State Government.

Jemalong Solar Project (JSP) :

  • The Project is fully funded, and construction activities are underway;
  • Together  with the  JSP  EPC  Contractor, BEON, Genex is in contact with  the relevant delivery supply chain of key components for the project, which, at this stage, appear to be largely unaffected by the current COVID-19 situation (subject to any further changes to Government policy) and market conditions;
  • When fully operational, JSP is expected to produce up to 128,700MWh per year; and
  • The project has the potential to deliver a step change to the Company’s revenues once fully operational. Kidston Pumped Storage Hydro Project (K2-Hydro);
  • The binding Energy Storage Services Agreement (ESSA) signed with EnergyAustralia Pty Ltd represents a significant milestone in the development of the K2-Hydro project;
  • Financial close for the project is expected in Q3 CY2020 subject to COVID-19 and general market conditions; and
  • Genex remains deeply engaged with other K2-Hydro stakeholders, including the Northern Australia  Infrastructure Facility  (NAIF)  to  complete  the  restructuring  of  the  project financing on the basis of the agreed terms of the binding ESSA.

Commenting on the Company’s COVID-19 response and current business activities, Genex Power’s CEO James Harding stated: “Genex has developed a diversified portfolio of renewable energy assets in Australia. The binding  agreement  with  EnergyAustralia  for  the  Kidston  Hydro Project is  a  step change  for  the Company.  The  agreement  provides  clarity  on  the  outlook  for  the development  of our  flagship  project, which  has  an  economic  life  of  over  80  years. “

“Meanwhile, the other assets in our portfolio continue to advance. KS1 provides a stable revenue stream and the commissioning of JSP, expected in Q4CY2020, will provide a step change in the revenue base of the Company.  We have continued to sensibly manage our financial position, and the Company is able to continue our business development and operational activities as usual during these troubled  times  brought  about  by  COVID-19. With  quality  stakeholders  in  our  projects such  as EnergyAustralia, J-POWER,  NAIF,  the  Queensland  Government  and  ARENA, Genex believes it is well positioned to emerge from the current period of macro-economic uncertainty in a healthy position.” James said.

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