VANCOUVER, B.C.– BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in the treatment of industrial waste water, reports its unaudited financial and operating results for the three and six months ended June 30, 2011. All figures are in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.
Operating and financial results highlights for Q2 2011
- BioteQ has active water treatment operations in China and the US and seasonal operations in Canada; these operations generate recurring revenues. The Company is also involved in several engineering, design, construction and piloting projects at various stages of completion; these projects generate one-time revenues. Recurring revenues for the quarter were generated by copper recovery at the Dexing plant in China, and fee-based water treatment operations at the Raglan site in Quebec. One-time revenues were driven by engineering projects for new plants that are expected to enter into construction later in 2011 and in 2012.
- Total revenues for the period were $1.4 million compared to $1.9 million in 2010. Year to date, revenues totaled $2.7 million compared to $4.5 million in 2010. The decrease in revenue was mainly attributable to lower copper production at the Dexing plant in China during 2011, and higher one-time revenues in 2010 from a plant sale. Management anticipates that new projects currently in development will drive significant revenue growth in the last half of 2011 and into next year to meet the Company’s revenue growth targets.
- Operating income for the quarter was $569,000 compared to $995,000 in 2010. Year to date, operating income is $787,000 compared to $1.6 million in 2010. The decrease was largely due to the same items that impacted revenue.
- The net loss for the quarter was $737,000, compared to a loss of $567,000 in 2010. The comprehensive loss for the quarter was $915,000 compared to $152,000 in 2010. Year to date, the comprehensive loss is $2.2 million compared to $863,000 in 2010.
- BioteQ ended the period with $11.3 million in working capital which included $11 million in cash and short-term investments. At December 31, 2010, those balances were $13.8 million and $12.6 million respectively. The Company has no debt.
- During the quarter, BioteQ commenced commissioning of a new 800 cubic meter per hour ion exchange plant for recovery of cobalt and nickel from low-grade solution at the Dexing site in China. Commissioning is progressing, with completion expected by the end of the third quarter.
- BioteQ entered into a fee-based contract with Compania Minera Maricunga, a wholly-owned subsidiary of Kinross Gold, to provide process review and commissioning services for a SART plant currently under construction at the Maricunga Mine located in Chile. BioteQ’s services include engineering and operations review, preparation of operating manuals and procedures, training of local operators, and on site engineering supervision of the SART plant operation during commissioning. Services under the contract began during the quarter and are expected to be completed in early 2012.
- BioteQ has completed engineering for a 6,500 m3/h zinc recovery plant with capacity to recover 130 million pounds of zinc, on behalf of a mining customer. BioteQ has earned engineering and design fees. Project execution is subject to customer approvals and schedule.
- BioteQ is continuing its litigation efforts for the plants in Mexico and Australia to recover the value of the Company’s assets.
- During the quarter, the Company announced the retirement of its Chief Executive Officer and director (“CEO”). The CEO will remain with the Company in his current role until a permanent successor is appointed. The Board of Directors has established a CEO Search Committee, and has retained the services of an international executive search firm, with a mandate to seek out a seasoned leader who can accelerate BioteQ’s growth. The Board has reviewed the qualifications of potential candidates, developed a short-list, and carried out initial interviews. A final decision is expected early this fall.
- Subsequent to quarter end, BioteQ signed an agreement with a European engineering firm to advance a cyanide regeneration and recovery project that incorporates a SART process plant to be designed and provided by BioteQ at a gold mine site in Central Asia. Test work followed by process design is expected to commence in the third quarter. Negotiations of the final commercial terms and timeline for construction are expected by the end of the year pending customer requirements.
- In July 2011, BioteQ entered into a framework agreement with Minera México, S.A. de C.V., a subsidiary of Grupo México S.A.B. de C.V., to provide water treatment solutions at their selected sites. Under the agreement BioteQ will provide process design and commissioning services as well as plant equipment on a process fee basis, in return for a license to use BioteQ’s technology for each treatment project. Minera México will provide for construction of the treatment plants. The companies have initiated the review of the first ten potential treatment projects at three of Minera México’s sites in Mexico.
- BioteQ has 12 additional projects in the development pipeline for 2011, 2012, and 2013 which are subject to customer approval, including three additional SART projects, expansion of an existing water treatment plant for a current customer, a new water treatment plant at an active mine to treat up to 650 m3/h, a new water treatment plant for a new mine to treat up to 730 m3/h, two multi-stage water treatment plants for a new mine to treat up to 1,800 m3/h, two Sulf-IX™ projects ranging in size from 30 to 300 m3/h, and two portable metal recovery plants.
BioteQ’s financial statements and the Company’s MD&A have been filed on SEDAR, www.sedar.com, and will be available on the BioteQ website at www.bqewater.com.
A conference call to discuss the financial results is scheduled for Friday August 5th at 11:00 am Eastern. Participants can access the call by dialing 416-340-2217, or 1-866-696-5910, reference number 3277435. A playback of the call will be available until August 19th by dialing 905-694-9451, reference number 2127682. A recording will be available on the BioteQ website within two days of the call.
BioteQ Corporate Profile
BioteQ creates custom water treatment solutions to recover dissolved metals and remove sulphate from water impacted by mining, energy and industrial activities. The company’s clean technologies convert wastewater into a useful resource while delivering lower life cycle costs for water treatment. BioteQ has designed and commissioned 14 plants at sites in Canada, the US, Mexico, Australia and China, with additional projects in development.
BioteQ continues to diversify its technology offering to address challenging water treatment problems in mining, oil and gas, and power generation. The Company is actively marketing its new Sulf-IX™ technology to address tightening regulations for sulphate discharge. The Company’s portfolio of metal recovery technologies has expanded to include specialty applications of ion exchange to recover valuable metals. In addition, BioteQ maintains an active research and development program to develop new treatment technologies for emerging water treatment concerns.
BioteQ’s sustainable water treatment solutions have been recognized with national and international awards for innovation and sustainability. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please visit our website at www.bqewater.com.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain information contained herein constitutes “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “might” or “will” occur. 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 and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled “Risks” in the Company’s Annual Report for the Year Ended December 31, 2010. Circumstances or management’s estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.