BioteQ Reports Q3 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 third quarter ended September 30, 2015. Further information on the quarterly results can be obtained from the Company’s Q3 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 Monday, November 9, 2015 at 11:00 am EDT to discuss results for the quarter. Participants can dial in as follows:

North America: toll free at 866-530-1554
United Kingdom: toll free at 08002790444
Switzerland: toll free at 0800200345

Participant pass code: 504974

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 Q3 2015 MD&A.

Q3 2015 Financial Results
The Company has reported financial results for the quarter as follows:

  • Revenues as reported under GAAP were $1.6 million compared to $1.7 million in Q3 2014, a decrease of 6% compared to the same period in prior year;
  • Proportional revenues were $3.2 million compared to $3.3 million in Q3 2014, consistent with the prior year;
  • Adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”) was $496,000 compared to $1.4 million in Q3 2014;
  • Net income as reported under GAAP was $279,000 compared to net income of $1.2 million in Q3 2014; and
  • Cash and cash equivalents and short term investments, including its share held in joint ventures, was $2.6 million compared to $1.9 million at December 31, 2014.

Water Treatment Operations

  • BioteQ continued its seasonal operations at the Raglan mine site in northern Quebec. The operations treated and discharged a total of 701,000 cubic metres of water during the quarter.
  • BioteQ’s joint venture in China with partner Jiangxi Copper Company (“JCC”) treated a total of 6.2 million cubic metres of water and recovered 1 million pounds of copper in Q3 2015.

Sales and New Technology Development
New Selen-IX™ Pilot Project
During the quarter, BioteQ entered into a contract with a Canadian mining company to complete a pilot scale demonstration and evaluation of its Selen-IX™ technology to remove selenium from mine impacted water to less than 1 part per billion. BioteQ is currently conducting its field operations and expects to provide final results to the customer by the end of the year. The total value and length of the pilot project is comparable to past Selen-IX™ pilot projects.

This new Selen-IX™ pilot project builds upon the previous pilots completed in 2013 with Teck Resources and 2014 with Seabridge Gold. It demonstrates the increasing need for mining companies to manage selenium concentrations in their mine water and the capabilities of BioteQ’s solutions.

Other items

  • During Q3 2015, BioteQ received gross proceeds of $177,000 (2,227,360 Mexican pesos), $116,000 net of professional fees, of Mexican value added tax (“VAT”) related to past refund claims.
  • Subsequent to the end of the quarter, the Continued Listings Committee of the Toronto Stock Exchange (“TSX”) determined to delist the Company’s common shares effective at the close of market on November 12, 2015. The delisting was imposed for failure by BioteQ to meet the continued listing requirements of the TSX. BioteQ has applied to list its shares on the TSX Venture Exchange (the “TSXV”) to begin trading immediately following the delisting from the TSX subject to BioteQ meeting all the listing requirements of the TSXV.
  • Subsequent to the end of the quarter, BioteQ completed an intercompany transfer from its Chinese joint venture back to its parent company. The proceeds of this transfer will be used to repay the short term convertible notes issued in June of this year. BioteQ expects to complete the repayment prior to the maturity date of the loans.

BioteQ’s outlook for the 2015 year remains in line with their estimates previously provided. 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.

The mining sector as a whole remains challenging. Metal prices have continued to remain at their lowest levels in several years, many mining companies have announced significant reductions in capital expenditures and curtailed operations, and activities for new or developing mines are limited. BioteQ does not expect these market conditions to improve dramatically in the short term.

However in 2015, BioteQ will significantly improve its Proportional revenue growth and reduce its operating losses considerably from prior years. This has largely been achieved through disciplined cost cutting measures and completion of one-time service related contracts such as pilots and lab testing projects. The ability to reach profitability in 2016 will depend on the increase in revenue from these one-time services and/or recurring revenue from new contracts for plant operations or operations support. 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.

Q3 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 Sep. 30 9 months ended Sep. 30
  2015 2014 2015 2014
$ $ $ $
Revenues 1,620 1,722 2,418 2,573
less: Plant and other operating costs (excluding depreciation) 740 684 1,520 1,298
880 1,038 898 1,275
General and administration 472 463 1,454 2,129
Sales and development 248 236 899 1,099
Other (recovery) expense (116) (268) 478
Share of results of equity accounted joint venture (55) (499) (581) (947)
331 838 (606) (1,484)
Depreciation and amortization 57 56 164 174
Stock-based compensation 1 22 (18) 37
Income (loss) before other income 273 760 (752) (1,695)
Other income – net 6 106 34 110
Recovery of NWM settlement 300 41 700
Income tax expense (88)
Net income (loss) for the period 279 1,166 (677) (973)
Translation gain on foreign operations 287 265 690 378
Comprehensive income (loss) for the period 566 1,431 13 (595)
Net loss per share (basic and diluted)
Proportional Revenues1
Adjusted EBITDA1
Sep. 30 Dec. 31
2015 2014
Working capital 35 1,249
Total assets 9,420 8,195
Total long term liabilities 11 20
Shareholders’ equity 6,970 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.