BioteQ Reports Q2 2014 Financial and Operating Results

VANCOUVER, BC – BioteQ Environmental Technologies, Inc. (TSX : BQE), a leader in the treatment of mine impacted waters, releases its financial and operating results for the three and six months ended June 30, 2014. Further information on the quarterly results can be obtained from the Company’s Q2 2014 Quarterly Report which includes the Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis (“MD&A”).

BioteQ will hold a conference call on August 13 at 11:00 AM EDT to discuss results for the quarter. Participants can dial in as follows:

North America: 1- 416-204-9271 or toll free at 1-800-505-9568
United Kingdom: toll free at 0800-279-0444
Switzerland: toll free at 0800-200-345

Participant pass code: 3771618

As noted at the beginning of 2013, due to changes in Generally Accepted Accounting Standards (“GAAP”), the results of the Company’s joint ventures are accounted for as equity investments in BioteQ’s financial statements. In prior years before 2013, the results of the Company’s joint ventures were accounted for through proportionate consolidation.

To ensure clarity and comparability with historic results, certain statements in this news release and in the MD&A are characterized as BioteQ’s “proportional” share, which means the effective portion of results that BioteQ would have reported if each of its joint ventures had been reported in accordance with past accounting standards. For further details, please see “Non-GAAP Financial Measures” in the Company’s Q2 2014 MD&A.

Q2 2014 Financial Results

  • Revenues for Q2 2014 as reported under GAAP were $697,000 compared to $924,000 in 2013, a decline of 25% compared to the prior year;
  • Proportional revenues for Q2 2014 were $1,873,000 compared to $2,008,000 in 2013, a decline of 7% compared to the prior year;
  • Earnings for the current quarter include a recovery of $300,000 from a bad debt expense originally recognized in 2010;
  • Adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”) for Q2 2014 was income of $203,000 compared to a loss of $468,000 in 2013;
  • Net loss for the quarter as reported under GAAP was $16,000 compared to a loss of $844,000 in 2013; and
  • Cash and short-term investments, including our share held in joint ventures, was $1.9 million compared to $3.2 million at December 31, 2013.

Other Items

  • During the second quarter, BioteQ further amended the payment terms of its legal settlement with NWM Mining Corporation (“NWM”). Under the amended terms, the final $600,000 balance due June 30, 2014 is now due as follows: $300,000 has been paid and the remaining $300,000 by no later than September 30, 2014. All other terms and conditions remain unchanged.
  • During the quarter, BioteQ and Aditya Birla Minerals (“Birla”) met for court ordered mediation related to lawsuits commenced in 2010. The parties failed to come to an agreement and the litigation continues to be in progress.

Water Treatment Operations

  • In June, BioteQ commenced operations at its plant at the Raglan mine site in Quebec. The current operating season is expected to continue until the end of October. BioteQ staff will also be operating a lime treatment plant for water that is not treated by BioteQ’s ChemSulphide® plant. During the quarter, BioteQ treated and discharged 72,000 cubic metres of water.
  • Water treatment operation at the Dexing mine site, a joint venture with mine site owner Jiangxi Copper Company (“JCC”), treated 2.6 million cubic metres of water and recovered a total of 681,000 pounds of copper compared to Q2 2013 when BioteQ treated 3.4 million cubic metres of water and recovered 592,000 pounds of copper.

New Plant Construction Update

During the second quarter, BioteQ completed construction and commissioning of one of the two new plants in China with joint venture partner JCC. The second copper recovery plant is in the final stages of commissioning and will commence operations in the third quarter.

  • The plant at JCC’s Yinshan mine site began operations in early June. During the quarter, the plant processed 260,000 cubic metres of wastewater and recovered 44,000 pounds of copper. The plant is expected to recover approximately 450,000 pounds of copper to the end of the year and 900,000 pounds of copper on an annual basis.
  • A second copper recovery plant at JCC’s Dexing mine site is in the final commissioning phase and expected to begin operations later in Q3. Once in operation, the plant is also expected to recover approximately 900,000 pounds of copper on an annual basis.

Sales and New Technology Development

Since the personnel changes announced at the beginning of the year, management has been actively engaging existing and potential new customers to advance joint business opportunities and have been working with several new channel partners to broaden BioteQ’s outreach and capacity to execute projects.

The following is an update on key opportunities in progress:

Selenium Removal – Selen-IXTM
During the quarter, BioteQ secured a contract with a Canadian company to conduct pilot scale testing of our Selen-IX™ technology for selenium removal. The current value of the contract is $890,000 and work is already under way to allow the pilot plant to begin operating in August and complete the pilot campaign by the end of October 2014.

EcoMetales Limited – BioSulphide® Plant Design
During the quarter, BioteQ secured a technical services contract with its Chilean strategic partner EcoMetales Limited (“ECL”) for the detailed process engineering of a smelter effluent treatment plant using our BioSulphide® process.

Consulting Contracts – Latin America
BioteQ has also entered into several small contracts for the supply of technical services to a number of customers and sites across Latin America. The scope of these contracts range from technical feasibility studies, to operational reviews including on-site operations assistance, and laboratory testing. While the financial amounts to be received from these contracts are limited, BioteQ has performed rigorous screening of the sites and customer requirements to ensure a long-term strategic fit with the new business strategy, and as a result BioteQ is optimistic that these service contracts will prove to be a catalyst for larger contracts in the future.

As previously noted, the new sales model being implemented by management will take time to begin bringing cash flow into the Company. This shortfall in near term sales has brought working capital resources to lower than expected levels. In recent months, BioteQ has completed various short-term measures to manage working capital through the next three to six months including: a repatriation of funds from our Chinese joint venture, receipt of funds from our legal settlement with NWM Mining, and cost deferrals and reductions. Although the Company believes it can manage its working capital through this period, non-operational sources of capital may be required beyond this period.

For the current fiscal year, BioteQ projects Proportional Revenues to be in the range of $6.8 million to $7.3 million. BioteQ projects Adjusted EBITDA loss to be in the range of $2.1 million to $2.6 million. In the prior year, BioteQ had Proportional Revenues of $7.6 million and an Adjusted EBITDA loss of $2.3 million. The current year’s forecast include the impact of significant one-time restructuring costs and provisions incurred in the first quarter. Projections also include anticipated earnings from two new plants in China as well as successful completion of the selenium removal piloting contract recently awarded.

David Kratochvil, President & Interim CEO, said, “Our results for the second quarter are beginning to reflect the impact of cost savings through internal restructuring and our new sales model and strategy to rebuild our sales pipeline. This, in combination with the working capital initiatives implemented earlier in the year have stabilized our short-term financial position. We intend to carry this momentum to ultimately generate long-term, sustainable, profitability for the company.”

Q2 2014 Financial Highlights Summary
For a complete set of Financial Statements and Management Discussion and Analysis, please go to

(unaudited, in $’000 except for per share amounts) 3 months ended Jun. 30 6 months ended Jun. 30
2014 2013 2014 2013
$ $ $ $
Revenues 697 924 851 1,720
less: Plant and other operating costs (excluding depreciation) 463 654 615 1,262
234 270 236 458
General and administration 484 1,067 1,540 2,038
Sales and development 337 449 862 923
Share of results of equity accounted joint ventures (399) (184) (322) (317)
(188) (1,062) (1,844) (2,186)
Depreciation and amortization 55 126 119 272
Stock-based compensation (27) 31 13 65
Loss before other (expense) income (216) (1,219) (1,976) (2,523)
Other (expenses) income – net (15) 14 1 107
Bad debt recovery (expense) 300 200 (78) 400
Gain on disposal of equipment 3 239 3 239
Income tax (88) (78) (88) (80)
Net loss for the quarter (16) (844) (2,138) (1,857)
Translation (loss) gain on foreign operations (61) 406 113 553
Comprehensive (loss) for the quarter (77) (438) (2,025) (1,304)
Net loss per share (basic and diluted) $- $(0.01) $(0.02) $(0.03)
Proportional Revenues1 1,873 2,008 2,426 3,946
Adjusted EBITDA1 203 (468) (1,783) (1,222)

BioteQ Corporate Profile
(1)     see “Non-GAAP Financial Measures” in the Company’s Q2 2014 MD&A

BioteQ is an innovative clean technology leader in global mine water treatment, serving the mining, metal smelting, refining and hydrometallurgical sectors. The company has commercially proven patented technologies and operational capabilities to help customers achieve compliance with stringent regulations cost effectively while minimizing waste and maximizing water recovery. Over the past decade, BioteQ has designed and commissioned plants at mine sites for leading organizations including Glencore-Xstrata, Freeport McMoran, Jiangxi Copper and the US EPA and is currently operating four plants under long-term contracts. These plants remove dissolved metals and sulphate to well below the required regulatory discharge limits while reducing or eliminating the production of waste sludge and/or recovering valuable metals from waste streams for sale which reduces the life cycle cost of water treatment. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at for additional information.


The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

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, 2013 and the section entitled “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2013). 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.