Hydro & Geothermal Energy

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Nov 8, 2013 (3 years and 5 months ago)

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Renewable Energy in South East Europe



Hydro & Geothermal Energy

November 2013

TSX
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V:

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Forward Looking
S
tatements

This

presentation

contains

forward
-
looking

statements

and

factual

information

that

are

current

as

of

the

date

the

presentation

was

originally

delivered
.

Reservoir

Capital

Corp
.
,

and

its

subsidiaries

disclaim

any

intention

or

obligation

to

update

or

revise

any

forward
-
looking

statements,

whether

as

a

result

of

new

information,

future

events

or

otherwise
.

Forward
-
looking

statements

include,

but

are

not

limited

to,

statements

with

respect

to

the

timing

and

amount

of

estimated

future

development

activities,

expenditures,

permitting,

and

requirements

for

additional

capital

and

access

to

data
.


Forward

looking

statements

involve

known

and

unknown

risks,

uncertainties,

and

other

factors

which

may

cause

the

actual

results,

performance

or

achievements

of

the

Company

to

be

materially

different

from

any

future

results,

performance

or

achievements

expressed

or

implied

by

the

forward

looking

statements
.

Such

factors

include,

among

others,

risks

related

to

actual

results

of

project

development

activities
;

changes

in

project

parameters

as

plans

continue

to

be

refined
;

the

ability

to

enter

into

joint

ventures

or

to

acquire

or

dispose

of

projects
;

future

prices

of

electricity
;

accidents,

labor

disputes

and

other

risks

of

the

power

industry
;

ability

to

obtain

financing
;

and

delays

in

obtaining

governmental

approvals

of

financing
.


www.reservoircapitalcorp.com

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Company Overview


Reservoir

Capital

is

a

renewable

energy

company

with

over

80

MW

of

hydroelectric

(HPP)

and

geothermal

projects

(GPP)

under

development

in

Serbia,

Bosnia

and

Montenegro


The

59
.
1

MW

Brodarevo

HPP

in

Serbia

has

a

positive

feasibility

study

(completed

in

June

2012
)

and

is

close

to

being

fully

permitted

to

start

construction


In

February

2013

Reservoir

was

granted

a

Concession

for

the

17
.
75

MW

Cehotina

HPP

in

Bosnia


Vranjska

Banja

GPP

in

Serbia

has

a

tested

5

MW

geothermal

resource

and

potential

for

10
-
20

MW


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Hydro Power & Europe


Clean

and

renewable,

consumes

no

raw

materials


High

capacity

factors

(
45
-
55
%
)

compared

to

wind

and

solar

(
20
-
30
%
)


A

safe

and

proven

technology

in

use

for

over

a

century


Improves

grid

stability

because

of

its

flexibility

and

predictability


The

EU

has

mandated

that

20
%

of

its

power

will

be

renewable

by

2020


Southeastern

Europe

has

the

only

significant

undeveloped

hydropower

potential


Geographical

location

of

the

Balkans

at

the

crossroads

between

east

and

west



4

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Projects Overview

5

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Project

Type

MW

GWh

Status

Brodarevo

HPP

59.1

232.5

Feasibility

Cehotina

HPP

17.75

69.8

Concession

Vranjska

Banja

GPP

5.0

Resource



HPP


Hydro Power Plant



GPP


Geothermal Power Plant

Hydro Projects Location

6

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HPP
Brodarevo

1

HPP
Brodarevo

2

Cehotina

river

Lim river

Brodarevo

Run
-
of
-
River Hydro Projects
-

Serbia

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Two Hydro Projects on the river Lim


59.1 MW total capacity


Estimated capital investment


146 million


Feasibility
studies completed
in June 2012


Feed
-
in Tariff agreed under Serbia
-
Italy
Bilateral
Agreement of


155/
MWh


Power
Purchase Agreement in place with
GdF

Suez


Project permitting approaching completion

Brodarevo

Projects
-

Overview

8

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Project

MW

Flow (m
3
/s)

Head (m)

Capacity
factor

GWh
/year

Capex



Brodarevo

1

26.0

150

19.7

45%

103.4

71.787 M

Brodarevo

2

33.1

150

24.7

46%

129.1

74.043 M

Brodarevo

Projects


Capital Costs

9

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Project

Civil
Works
(

000)

Hydro
-
mechanical

Equipment
(

000)

Mechanical
Equipment
(

000)

Electrical
Equipment
(

000)

Prime
Costs

(

000)

Working
Capital
(

000)

Total
(

000)


B1

19,134

5,184

8,151

12,250

26,358

711

71,787

B
2

23,806

4,911

8,787

11,813

23,993

733

74,043

Total

42,940

10,095

16,938

24,063

50,351

1,444

145,830

% of

Total

29%

7%

12%

17%

35%

1%

100%

Note: Capital expenditure estimates include contingencies of 8% on the civil works, 5% on equipment and roads and 15% on the
con
struction of the
road tunnels

Brodarevo

Projects


Capital Costs

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Type of
Works

1
st

Year

(

000)

2
nd

Year

(

000)

3
rd

Year

(

000)

4
th

Year (

000)

Total (

000)


Civil

Works

10,398

14,422

14,284

3,835

42,939

Equipment

10,339

14,684

14,272

8,801

51,096

Prime Costs

44,385

2,082

2,131

1,753

50,351

Working
Capital

0

0

733

711

1,444

Total

65,122

31,188

34,420

15,100

145,830

% of

Total

45%

21%

24%

10%

100%

Note: Anticipated construction time for
Brodarevo

1 is 4 years, and
Brodarevo

2 is 3 years.

Brodarevo

Projects


Financial Analysis

11

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Leveraged After
-
Tax

Financial Metric

IRR

NPV @ 8% (

000)

NPV @ 10%

(

000)

Combined

24.04%

101,202

71,725

Unlevered

After
-
Tax Financial Metric

Brodarevo

1

Brodarevo

2

Combined

Internal Rate of Return

13.14%

16.79%

15.07%

Net Present Value @ 8% (

000)

34,507

63,869

98,657

Net Present

Value @ 10% (

000)

17,411

41,215

58,797

Note:
Assumption is
debt
will have a 15
-
year term from initial drawdown and be subject to an annual interest rate of 6.5%.

Brodarevo

Projects


3D View

12

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Brodarevo

1

Brodarevo

2

d
am location

d
am location

Brodarevo

Project
-

Advantages

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Brodarevo

is a run
-
of
-
river project, with minimal social
and environmental
impacts,
that will generate clean energy and promote sport and tourism in the Lim
valley.


The projected

146m
capital investment

goes to
one of the poorest regions
of Serbia
,

with the
majority

spent with
local contractors, creating ~
1,000
jobs during the 5
-
year
constructions
period.


Approximately one third of the

investment
will be spent on land purchases,
new
roads and new transmission lines that will be government owned.


The
infrastructure works include 7.5 km of new
public roads
and tunnels that will
shorten the M
-
21 by 2km and improve
its
safety.


Project will generate

electricity and
tax revenues on a long
-
term basis.

Cehotina

Run
-
of
-
River Hydro Projects
-

Bosnia

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3

smaller hydro projects on the river
Cehotina


Minimum impact on the environment


30
-
year concessions granted in February 2013


17.75 MW total
capacity planned


Estimated
Total Production of

70
GWh
/year


Preliminary
Capital Cost Estimates
~

45m


Feasibility Studies starting in 2013


Cehotina

Projects Sites
-

Overview

15

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Project

MW

Flow (m
3
/s)

Head (m)

GWh
/year

Luke

4.85

20.8

21

20

Falovici

9.26

21.0

40

33

Godijeno

3.65

21.8

14

15

Cehotina

Projects
-

Configuration

16

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HPP
Godijeno

HPP
Falovici

HPP Luke

1.

HPP GODIJENO RESERVOIR

2.

HPP FALOVICI RESERVOIR

3.

HPP LUKE RESERVOIR

4.

HPP FALOVICI DERIVATIVE
FACILITY

5.

ROAD FOCA


GODIJENO


CAJNICE

6.

LOCAL ROADS

7.

ROAD FOCA


PLJEVLJA

8.

STATE BORDER BOSNIA
-

MONTENEGRO

HPP
Falovici

HPP Luke

17

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Italy

is

fulfilling

part

of

its

EU

renewable

energy

obligations

by

importing

it

from

the

Balkans

via

new

subsea

cables
.



The

Pescara
-
Tivat

subsea

link

to

be

used

for

Reservoir’s

projects

is

already

under

construction
.


Electricity Transmission to Italy

Management


Miles

Thompson
,

Executive

Chairman



ex
-
Gold

Fields,

+
25

years

natural

resource

project

management

in

oil

&

gas,

mining

and

renewable

energy

in

emerging

markets
.


Miljana

Vidovic
,

President

&

CEO



ex
-
Manager

Business

Development

for

Tractebel

Engineering

(GDF

Suez

Group)

in

Southeast

Europe
.


Chris

MacIntyre
,

Vice
-
President,

Corporate

Development



ex
-
UNX

Energy

Corp
.
,

VP

Corporate

Development

at

Reservoir

Minerals

Inc
.

and

Lara

Exploration

Ltd
.


Milan

Cusic
,

Deputy

Director

REV

Serbia



engineer

with

+
15

years

with

Serbian

State

Utility,

most

recently

as

Chief

Hydro

Engineer
.

Responsible

for

the

Company’s

hydro

projects
.


Aleksandar

Obrenovic
,

Director

SEE

Serbia



geologist

with

+
20

years

experience

in

natural

resource

sector,

ex
-
Geological

Survey
.

Responsible

for

the

Company’s

geothermal

projects
.


Christina

Cepeliauskas

(CFO)



Certified

General

Accountant

with

more

than

15

years

of

financial

accounting

and

treasury

experience

in

the

mineral

exploration

and

mining

industry
.

CFO

of

Eurasian

Minerals

Inc
.

and

Reservoir

Capital

Corp
.


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www.reservoircapitalcorp.com

Independent Directors


Lewis

Reford
,

Lead

Director



ex
-
Head

JP

Morgan

Resource

Banking,

Director

of

several

renewable

energy

companies
.


Mike

Brown
,

Director



ex
-
Development

Manager

Pacific

Hydro,

developed

600
MW

in

Chile
.


Winston

Bennett
,

Director



VP

Helios

Energy

Inc
.

a

developer

of

large
-
scale

solar

energy

based

systems,

and

formerly

VP

Investment

Banking

Cormark

Securities
.


Patrick

Eve
,

Director



Managing

Director

of

TranslateMedia
,

a

language

services

provider,

co
-
founded

and

was

Chief

Operating

Officer

of

ITC

Ventures,

an

active

Venture

Capital

Fund
.


Michael

Winn
,

Director

-

25

years

in

the

natural

resource

sector

and

public

markets
.

Director

and

founder

of

several

junior

natural

resource

companies
.

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Capital Structure

20

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TSX
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Issued Shares


84.3 M

Options



5.3 M

Warrants



37.4M

Fully Diluted Shares



127.1 M