VANCOUVER, BC – BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the year ended December 31, 2007. All figures are in Canadian dollars and are in accordance with Canadian GAAP.
BioteQ reported stable revenues of $4.6 million, with positive cash flow from operating activities of $2.3 million, prior to general and administrative costs and other expenses. After all expenses, cash flow from operating activities was $192,000 for the year. The Company maintained a strong balance sheet, ending the year with $25 million in cash and short-term investments and $23 million in working capital.
Brad Marchant, BioteQ’s CEO, stated, “2007 was a year of growth for BioteQ, with significant investments in new plants in the latter half of the year, entry into new geographic markets, expansion of our customer base, and the application of new strategic technologies for longer term growth. The Company has maintained a balanced portfolio of revenues from metal recovery and water treatment fees, and continues to look for a three year pay-back on capital on new projects. We expect that new operating plants which are currently coming online will contribute to a profitable 2008.”
BioteQ invested $11.1 million in new plants during 2007. Two plants are in the final stages of commissioning, located in Australia, and China, and are expected to contribute to revenue in Q2 2008. Five other projects, at locations in the US, Mexico, and Chile, are in design and construction, including two plants that will deploy BioteQ’s new Sulf-IX™ technology to remove sulphate from water. The Company expects to invest $6 million in capital projects in 2008, which will be funded from existing cash and short-term investments. The Company continues to pursue new business development opportunities to add to its project pipeline.
The Company reported an overall net loss of $4.1 million for 2007. The loss is primarily due to non-cash accounting items, including stock-based compensation ($1.83 million) and a one-time adjustment for a change in escrow share release criteria ($2.1 million).
A conference call to discuss the financial results is scheduled for Friday March 14, at 11:00 am Eastern. Participants may call 1-888-789-9572 or 416-695-7806, and enter access code 3254044. A replay of the call will be available until March 28 by dialing 1-800-408-3053 or 416-695-5800, access code 3254044. A recording of the call will be available within three days on the BioteQ website at www.bqewater.com.
BioteQ Corporate Profile
BioteQ builds, owns and operates water treatment plants for the world’s mining companies and utility operators, reducing environmental liabilities while generating revenue from waste. The Company’s commercially proven technology treats acid mine drainage and other metal-laden waste water by sequentially removing metals and sulphate, producing saleable metal products and clean water that can be discharged safely to the environment. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, go to www.bqewater.com.
On behalf of the Board of Directors
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.