BioteQ Reports Q2 2015 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 second quarter ended June 30, 2015. Further information on the quarterly results can be obtained from the Company’s Q2 2015 Financial Report which includes the Interim Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”).

BioteQ will hold a conference call on August 12, 2015 at 11:00 AM EDT to discuss results for the quarter. Participants can dial in as follows:

North America: toll free at 800-499-4035
United Kingdom: toll free at 08002790444
Switzerland: toll free at 0800200345

Participant pass code: 6231070

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 2015 MD&A.

Q2 2015 Financial Results
The Company has reported improved financial results for the quarter. Highlights of results include:

  • Revenues in Q2 2015 as reported under GAAP were $286,000 compared to $697,000 in Q2 2014, a decrease of 59% compared to the same period in prior year;
  • Proportional revenues for Q2 2015 were $2.3 million compared to $1.9 million in Q2 2014, an increase of 23% compared to the same period in prior year;
  • Adjusted loss before interest, tax, depreciation and amortization (“adjusted EBITDA”) for Q2 2015 was $49,000 compared to income of $203,000 in Q2 2014;
  • Net loss for the quarter as reported under GAAP was $306,000 compared to $16,000 in Q2 2014;
  • During the quarter, BioteQ issued, unsecured, short-term convertible loans to fund general working capital requirements. The unsecured loans totaling $775,000 bear interest at 12% per annum and are repayable in full, at the demand of the lenders, on or after December 9, 2015. This loan has provided BioteQ with the required short term working capital flexibility to complete a delayed, intercompany dividend from its Chinese joint venture without disruption by the end of the year; and
  • Cash and cash equivalents and short term investments, including our share held in joint ventures, was $2.0 million compared to $1.9 million at December 31, 2014.

Water Treatment Operations

  • BioteQ’s joint venture in China with partner Jiangxi Copper Company (“JCC”) treated a total of 6.1 million cubic metres of water and recovered 1.2 million pounds of copper in Q2 2015.
  • BioteQ commenced seasonal operations at the Raglan mine site in northern Quebec.

Sales and New Technology Development
Seabridge Gold – Selen-IX™ Pilot Project
During the quarter, BioteQ concluded its Selen-IX™ pilot testing contract with Seabridge Gold, a Canadian mining company, which originally commenced in mid-2014. The pilot testing results are being used to demonstrate the capacity of the Selen-IX™ process to meet stringent discharge limits for selenium and provide engineering design data required for evaluating the overall capital and operating costs of a full scale plant that would treat up to 43,000 m3/day of wastewater.

New Selen-IX™ Pilot Project
Subsequent to the end of the quarter, BioteQ entered into a contract with a new Canadian mining company to conduct pilot testing operations. BioteQ has begun mobilizing its pilot plant and making the required modifications to meet the discharge limits being targeted. The total value and length of the pilot project is comparable to our past Selen-IX™ pilot projects.

TSX Listing Review
On June 12, 2015, the Toronto Stock Exchange (the “TSX”) notified BioteQ that they would be reviewing the eligibility for continued listing on the TSX of the common shares of BioteQ pursuant to Part VII of the TSX Company Manual. BioteQ and the TSX will continue to monitor the deficiency in the company’s market capitalization during the review period. BioteQ has also begun investigating the Company’s qualifications to list its common shares on other public exchanges in the event they cannot comply with the TSX’s requirements.

BioteQ’s outlook for the upcoming year remains in line with their estimates previously provided. For 2015, based on current copper prices, foreign exchange rates, and project pipeline, BioteQ anticipates its Proportional Revenues to be in the range of $8.0 million to $8.5 million. Adjusted EBITDA loss is expected to be in the range of $400,000 to $700,000.

As previously noted in the last quarter, the mining sector as a whole remains challenging. Metal prices have continued to decline sharply in recent months, many mining companies have announced significant reductions in capital expenditures and curtailed operations, and activities for new or developing mines are limited.

The ability for BioteQ to reach profitability in 2015 and 2016 will depend on the increase in revenue from one time services such as pilot and lab testing, engineering, and/or recurring revenue from new contracts for plant operations or operations support for existing treatment plants outside of BioteQ’s current portfolio of plants. Since capital spending has been seriously curtailed across the mining industry, it is unlikely that the Company will reach profitability in the short term through projects that involve the construction of new treatment plants. In 2014, BioteQ demonstrated that these revenue sources could be significant but they are also very difficult to predict in terms of timing which gives rise to large fluctuations in the Company’s working capital resources.

Q2 2015 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
  2015 2014 2015 2014
$ $ $ $
Revenues 286 697 799 851
less: Plant and other operating costs (excluding depreciation) 280 463 780 615
6 234 19 236
General and administration 456 563 982 1,666
Sales and development 358 337 651 862
Other (recovery) expense (83) (152) 478
Share of results of equity accounted joint venture (446) (478) (526) (448)
(279) (188) (936) (2,322)
Depreciation and amortization 52 55 107 119
Stock-based compensation (19) (27) (18) 13
Loss before other income (312) (216) (1,025) (2,454)
Other income – net 6 (12) 69 4
Recovery of NWM settlement 300 400
Income tax (88) (88)
Net loss for the period (306) (16) (956) (2,138)
Translation gain on foreign operations (90) (61) 403 113
Comprehensive (loss) for the period (396) (77) (553) (2,025)
Net loss per share (basic and diluted) 0.00 0.00 (0.01) (0.02)
Proportional Revenues1 2,301 1,873 3,628 2,386
Adjusted EBITDA1 (49) 203 (612) (1,783)
Jun. 30 Dec. 31
2015 2014
Working capital (198) 1,249
Total assets 8,570 8,195
Total long term liabilities 14 20
Shareholders’ equity 6,395 6,891

(1) See “Non-GAAP Measures” in MD&A

BioteQ Corporate Profile
BioteQ is a service provider that specializes in treating mining wastewater and specific hydrometallurgical streams with the focus on reducing Life Cycle Costs while achieving compliance and introducing sustainability into water management. We have extensive expertise and operations experience in sulphide precipitation, ion exchange, alkali/lime neutralization and SART process technologies. Over the past decade, BioteQ has designed and commissioned plants at mine sites for leading organizations including Glencore Canada, Freeport McMoRan, Jiangxi Copper and the US EPA and is currently operating six 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, 2014 and the section entitled “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2014). 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.