BioteQ Reports Net Income in Q2 2012 Operating and Financial Results

VANCOUVER, BC – BioteQ Environmental Technologies, Inc. (TSX : BQE), a leader in the treatment of industrial wastewater, reports its financial and operating results for the three and six months ended June 30, 2012. All figures are in Canadian dollars and are in accordance with International Reporting Standards (IFRS), unless otherwise noted.

Financial and operating results highlights for Q2 2012

  • BioteQ had active operations in Canada, the US, and China during Q2 2012 that together treated 2.9 million cubic meters of contaminated water and recovered 800,000 pounds of metal contaminants from the environment, bringing total production for the first half of 2012 to over 1.3 million pounds of metal and 4.7 million cubic meters of water. The Company’s operations are performing well and are on track to meet expectations for performance in 2012.
  • BioteQ’s revenues include recurring revenues from plant operations generated by sales of metals recovered and water treatment fees, and non-recurring revenues from engineering fees and plant sales. Total revenues for the quarter were $2.4 million compared to $1.4 million during the same period in the prior year. This represents a 71% increase or $992,000 higher than Q2 2011.
  • Total revenues for the first half of 2012 were $4.6 million compared to $2.7 million in the first half of 2011, an increase of 67%. The increase in revenue over the prior half year was due to a 36% increase in metal recovery revenues from $1.6 million to $2.2 million; a 187% increase in treatment fees from $221,000 to $634,000 and a 92% increase in engineering and plant sales from $924,000 to $1.8 million.
  • Operating margin for the quarter was $746,000, compared to $569,000 in Q2 2011.  Year to date, it was $1.5 million compared to $787,000 for the same period in 2011.
  • Net income for the quarter was $75,000 ($0.00 per share), compared to a loss of $737,000 ($0.01 per share) in 2011. The Comprehensive income for the period was $167,000 compared to a loss of $915,000 in Q2 2011. Year to date, the net loss was $913,000 compared to $2.1 million in 2011. The Comprehensive loss was $895,000 compared to $2.2 million in 2011.
  • Cash provided by operating activities, after changes in working capital, was $411,000 compared to cash use of $389,000 in the same quarter last year. Year to date, cash used in operations including working capital, improved by $484,000 to $519,000 compared to cash use of $1 million in 2011.
  • In April, BioteQ and NWM Mining Corporation agreed to settle legal action relating to a plant that BioteQ built at NWM’s Mexican mine site. Under the terms of the settlement agreement, NWM will pay BioteQ $1.3 million in cash over the next two years. The first $200,000 payment has been received. The second payment of $400,000 is due April 30, 2013. The final $700,000 is due April 30, 2014.
  • In addition to the legal settlement with NWM, BioteQ agreed to sell the remaining plant equipment at the Mexico site to NWM Mining for US$650,000. BioteQ has received full payment for the equipment, and transferred ownership to NWM on an “as-is” basis.
  • Net cash used in operating activities and net income for Q2 and the first half of 2012 were impacted by investments made by BioteQ early in the year to build a sales and marketing team and enhance BioteQ’s engineering and technical resources. They were also impacted by a number of non-recurring costs affecting 2012 and that will, to a lesser extent, impact 2013 including: legal fees associated with the Birla and NWM litigations; care and maintenance costs for the Mount Gordon plant; payments and consulting fees owing to BioteQ’s former CEO; and severance pay resulting from an internal efficiency review conducted early in the year.
  • Even accounting for key strategic investments and significant non-recurring costs, financial performance in Q2 and the first half of 2012 was strong. Revenues increased significantly. Cash usage and net income levels improved considerably compared to 2011.
  • Working capital at the end of Q2 2012 was $9 million which included $8.6 million in cash and short-term investments.
  • BioteQ ended the quarter with total assets of $17.9 million compared to $19.3 million as of December 31, 2011.
  • During the quarter, BioteQ made clear progress in executing its strategic plan. The Sales and Marketing team, formed in Q1, has proactively generated new project opportunities. As a result, the sales pipeline is strengthening significantly, particularly in the area of SART technology to enhance gold recovery and reduce gold production costs, and development of new market opportunities in smelter waste remediation. BioteQ has secured three contracts for testing and engineering work that are expected to position the company to complete process technology sales in future quarters.  These contracts include two test work projects with two new international gold mining companies for SART plants, and an engineering design project with channel partner EcoMetales for an arsenic treatment facility in Chile to treat smelter waste.
  • During the quarter, BioteQ made progress with its strategic alliance partners. The arsenic treatment project with EcoMetales achieves two of the company’s milestones – a sales contract in Latin America, and a contract with an alliance partner. In addition to the work with EcoMetales, BioteQ and Newalta advanced the construction of a mobile Sulf-IX™ unit that will provide a pilot scale plant for the partners to introduce and test the technology for new customers and new market verticals. The plant is expected to be commissioned at a Newalta site in September.
  • BioteQ continues to advance its Sulf-IX™ technologies toward commercial applications in the mining and energy sectors. The Company is providing ongoing technical and engineering services to optimize a demonstration scale Sulf-IX™ plant built in 2010 by an international mining customer at a mine site in the southern US.
  • BioteQ continues to work with Kinross Gold, providing engineering review and start-up support for the commissioning of a SART plant located in Chile. The current contract is expected to be complete by the end of August. BioteQ is discussing requirements for additional support services with Kinross.

BioteQ is on track to meet the financial guidance provided in March, 2012. The company expects revenues in 2012 to increase by more than 35% over the prior year to at least $10 million, with cash used in operations (including changes in working capital) to be reduced by at least 40% to less than $1.5 million.

Jonathan Wilkinson, BioteQ’s Chief Executive Officer, stated “BioteQ continues to make significant progress towards its 2012 goals. Revenues and cash figures for the quarter and for the half year have improved significantly compared to 2011. In addition, we have expanded our sales pipeline, and important project opportunities continue to advance toward contract decisions. Based on this progress, we anticipate that the Company will meet its operational and financial milestones for the year, with growth accelerating in 2013 and 2014. We believe that by demonstrating consistent progress, we will ultimately provide strong returns to our shareholders”.

BioteQ’s financial statements and the Company’s MD&A have been filed on SEDAR,, and will be available on the BioteQ website at

A conference call to discuss the financial results is scheduled for Tuesday August 14th at 11:00 am Eastern. Participants can access the call by dialing 416-340-2217 or 1-866-696-5910, reference number 9447043. A playback of the call will be available until September 1st by dialing 905-694-9451 or 1-800-408-3053, reference number 3591824. A recording of the call will be available on the BioteQ website within two days of the call.

BioteQ Corporate Profile
BioteQ is an innovative clean technology leader in global industrial water treatment, serving the mining and energy markets. The company’s proven technologies have been applied at sites around the world to recover dissolved metals and remove sulphate, producing clean water and eliminating residual waste. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at for additional information.


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Certain information contained herein may not be based on historical fact and therefore constitutes “forward-looking information” under applicable Canadian securities legislation. This includes without limitation statements containing the words “plan”, “expect”, “project”, “estimate”, “intend”, “believe”, “anticipate”, “may”, “will” and other similar words or expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company’s technologies, competition, technology risk, the Company’s ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company’s ability to manage growth and other factors described in the Company’s filings with the Canadian securities regulators at (including without limitation the factors described in the section entitled “Risks and Uncertainties” in the Company’s Annual Report for the year ended December 31, 2011 and the section entitled “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2011). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements.  All forward-looking information contained herein is based on management’s current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.