VANCOUVER, BC – BioteQ Environmental Technologies Inc. (TSX VENTURE:BQE) today reported fiscal first quarter results for the period ended March 31, 2007. All figures are in Canadian dollars and are in accordance with Canadian GAAP.
Revenue for the first quarter of fiscal 2007 was $1,116,572 compared with $744,849 in the first quarter of 2006. Net loss for the quarter was $315,938 or a basic and diluted loss of $0.01 per share compared with a loss of $602,831 or a basic and diluted loss of $0.02 per share in the first quarter of 2006. Plant operating profit for the first quarter of 2007 was $461,000 compared to $4,000 for the first quarter of 2006. Although there was a loss for the quarter of $315,938 non-cash charges totalled $363,210 resulting in a cash surplus for the quarter of $47,272 compared to a loss of $484,521 in the first quarter of 2006.
Financial Highlights for First Quarter 2007
The Company increased revenues by 45% overall compared to the same period last year, primarily due to an 85% increase in production at the Bisbee plant and an average 20% increase in the price of copper compared to the first quarter 2006. These results are a significant improvement considering that they were offset by reduced revenues from Caribou, due to the change in contract structure beginning in the third quarter 2006.
Stock based compensation charges increased by $218,233 to $232,207 in first quarter of 2007, reflecting the fair value charges for stock options, granted mostly in 2006, reaching their vesting periods. Additional non-cash charges in the quarter were largely amortization of property plant and equipment totalling $90,488 compared to $91,193 for same period in 2006.
BioteQ ended the quarter with a strong balance sheet. Cash, cash equivalents and short-term investments totalled $27.5 million with no long term debt. As the Company is very active with new projects in construction in 2007, significant expenditures were initiated in the first quarter and will continue the remainder of the year. The total capital expenditure on new plants this year is expected to be approximately $10 million. The current cash reserves will cover these expenditures and also fund the Company’s anticipated projects for 2008.
Operations Highlights for First Quarter 2007
All of the plant operations reported a profit in the first quarter.
Business Highlights – Fiscal 2006
The Company increased the amount of water treated at Bisbee in the first quarter of 2007, compared to 2006, treating 199 million gallons, up 173%, from 73 million gallons treated same period one year ago. The Raglan plant started discharging treated water on April 13th, which is approximately one month earlier than was anticipated. BioteQ’s operations staff started operating the plant at the beginning of April and started to discharge treated water to the local environment one week later. The plan is to treat 800,000 cubic meters this year.
There are three new construction projects now under way; Mt Gordon in Australia, Dexing in China and Lluvia de Oro in Mexico, which are all expected to be completed this year. A fourth construction project is also in progress, the Wellington Oro project in Colorado, which was initiated last year. During the quarter the Company added new sites for development; recently signing an agreement with Molibdenos y Metales S.A. (Molymet), a leading processor of molybdenum concentrates, for the development of two water treatment plants located at Molymet’s Nos refinery near Santiago, Chile and the company also announced that five other sites have been added to the joint venture with Jiangxi Copper.
“We are pleased to report another quarter with all of our plants operating at profitable levels. Our Bisbee plant recorded a very successful quarter and we were able to restart Raglan one month earlier than expected. The three new plants that are expected to be constructed this year should start contributing to revenues before the end of 2007. Based on current conditions, our existing operations and expected startup of new plants this year, the Company is continuing to forecast a profitable 2007,” stated Brad Marchant, President and CEO. “We are also very excited about our new customer, Molymet, which represents a new potential source of business beyond mining companies, that is, metal refineries. In addition to copper recovery, BioteQ will implement its new ion exchange technology, Sulf-IX™. The application of our technology would replace Molymet’s existing reverse osmosis plant and associated evaporation and crystallization plants offering a significant cost savings to Molymet. We are pleased to add Molymet to our customer base and look forward to a rewarding and long-lasting relationship, similar to our other customers.”
Conference Call for Discussion of First Quarter Results
BioteQ will conduct a teleconference to discuss the first quarter results for the period ended March 31, 2007 on Wednesday, May 16, 2007 at 8:00 a.m. Pacific Time, 11:00 a.m. Eastern Time. To participate in the conference call please dial 416-641-6131 / Canada/USA 866-696-5911 conference ID #32226262, about 5-10 minutes prior to 8:00 a.m. PST. Please refer to the BioteQ earnings teleconference call.
A recording of the conference call will be available on the Company’s website at www.bqewater.com. The call will also be available from May 16, 2007 through June 30, 2007, by dialing (416) 695-5800, conference ID #3222626.
BioteQ is establishing itself as a leader in the treatment of acid contaminated water through the use of its patented BioSulphide® Process and the ChemSulphide™ Process. Focused on the mining industry, BioteQ has partnered with leading metal producers including Phelps Dodge, Breakwater, CVRD-INCO, Jiangxi Copper, Aditya Birla and Xstrata as well as utilities operator EPCOR Water Services, to finance, design, build and operate mine site water treatment plants which recover saleable metals in addition to meeting ever stricter environmental regulations.
On behalf of the Board of Directors