VANCOUVER, B.C.– BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in the treatment of industrial wastewater, today released its second quarter operating and financial results for the six months ended June 30, 2010. All figures are in Canadian dollars and are in accordance with Canadian GAAP, unless otherwise noted.
Operating and Financial Highlights for Q2 2010
- BioteQ treated approximately 3.75 billion litres of water during the first half of 2010. The Company’s water treatment plants removed approximately 638,000 kilograms (1.4 million pounds) of metal contaminants from the environment.
- During the quarter, BioteQ had active water treatment operations at Raglan, Bisbee, Dexing, and Wellington Oro. In addition, the Company provided commissioning services for a new SART plant, and completed construction and commissioning of a new plant at the Minto Mine site which commenced water treatment operations in July.
- BioteQ’s revenues from water treatment operations were $1,949,000 in Q2 2010, compared to revenues of $1,207,000 in the same quarter last year, an increase of 62%. In the first half of the year, revenues totaled $4,487,000, more than double compared to the previous year revenues of $2,137,000. In addition to revenue from operations, BioteQ reported lease-fee income from the Lluvia de Oro project in Mexico of $247,000 for the quarter and $486,000 for the half year.
- The Company has reported positive cash flow of $295,000 from operations for the quarter.
- Working capital at June 30, 2010 was $12 million compared to $8.2 million at June 30, 2009 and $7.7 million at December 31, 2009. The Company has no debt.
- BioteQ continues to stabilize revenues by expanding fee-based contracts and reducing exposure to commodity price fluctuations, and balancing the mix of recurring revenues and one-time project revenues. Fee-based revenues now account for about 51% of total revenues, compared to 29% of revenues in the first half of 2009.
- BioteQ is maintaining an active development and marketing program to expand the Company’s water treatment technologies into new market sectors. New contracts were signed during the quarter for fees, to construct pilot demonstration plants for new customers that could lead to larger commercial scale facilities in the future. The Company expects to meet its project development goals for 2010.
- During the quarter, BioteQ along with joint venture partner Jiangxi Copper Company, approved construction of a new water treatment facility at the Dexing mine in China. The new plant is designed to recover cobalt and nickel using innovative ion exchange technology developed by BioteQ. BioteQ’s share of the capital costs are expected to be approximately $1.5 million USD, which will be drawn from existing cash reserves in China. Construction is expected to be complete in late 2010 with operations to begin in early 2011.
- The Mt Gordon site has been mainly inactive since January 2009 when a significant rainfall event flooded the mine site and damaged a portion of BioteQ’s plant. In early 2009 BioteQ served notice to the owner under force majeure provisions of the agreement and the agreement has expired. BioteQ has been unable to negotiate an acceptable contract with the site owner to resume water treatment operations.
Brad Marchant, BioteQ’s Chief Executive Officer stated, “BioteQ’s operating and financial results are continuing to improve, as we see the effect of strategic changes made over the past 18 months. We have stabilized our revenue mix, initiated market diversification activities, re-started inactive operations, and added new projects. These changes, along with new projects in development, position the Company to deliver strong operating and financial results for our shareholders.”
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 Tuesday August 17 at 11:00 am Eastern. Participants may call 416-695-7806 or 1-888-789-9572 and enter reference number 3650101. A replay of the call will be available until August 31 by calling 416-695-5800 or 1-800-408-3053, reference number 6877431. A recording will be available within two days of the call on the BioteQ website at www.bqewater.com.
BioteQ Corporate Profile
BioteQ is a water treatment company that applies innovative technologies and operating expertise to solve challenging water treatment problems, reducing environmental liabilities while delivering lower life cycle costs for water treatment. The Company’s commercially proven technologies treat industrial wastewater contaminated with dissolved heavy metals and sulphate, producing saleable by-products and clean water that can be discharged safely to the environment. BioteQ has built 10 plants at sites in Canada, the US, China, Australia and Mexico, with additional projects in design and construction.
BioteQ’s sustainable water treatment solutions have been recognized with the CIM/Syncrude Award for Excellence in Sustainable Development, the Canada Export Achievement Award, the Jantzi/Maclean’s Most Socially Responsible Corporations in Canada, the Globe Award for Environmental Excellence, the PDAC Award for Environmental and Social Responsibility, the China Mining Environmental Protection Award, and the Mines & Money Sustainable Development Award. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bqewater.com.
On behalf of the Board of Directors