VANCOUVER, B.C.– BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in the treatment of industrial waste water, has provided an update for current operations, development projects, and corporate goals for 2010. The Company’s first quarter financial results for the three months ended March 31, 2010 will be released after market close on Tuesday May 11, with a conference call scheduled for 11:00 am Eastern on Wednesday May 12, 2010. Brad Marchant, Chief Executive Officer, and Paul Kim, Chief Financial Officer will be available to discuss BioteQ’s operating and financial results, and answer questions.
Outlook for Balance of 2010
- The Mt. Gordon operation in Australia remains on stand-by due to force majeure events. BioteQ is currently in negotiations with the site owner, Aditya Birla, and is optimistic that an agreement for a revised operating contract based on water treatment fees will be reached which will allow re-start of operations during the third quarter.
- Re-start of the Bisbee operation in Arizona is now in progress and during the current quarter is expected to return to previous production levels, with lower operating costs as a result of changes made during the furlough period.
- The Lluvia de Oro project is now accruing lease-fee earnings and earning interest income as a result of a revised agreement signed last year, which provides for a fixed monthly lease fee and loan repayments, in addition to operating fees. The project is expected to generate net cash flow from repayment of the loan and lease of $1.1 million in 2010.
- All other operations are expected to meet or exceed budgeted performance for 2010, with Dexing in China leading the way with another record performance during Q1, recovering 487,000 pounds of copper during the quarter. Preparations are underway to commence operations for the summer season at the Raglan site in Quebec, which will include an expanded scope of services for the season.
BioteQ already has three plant commissioning projects scheduled this year: one currently in progress in Europe, one scheduled to start during Q2 in the US, and one in progress in Canada which also includes a long term operating contract for water treatment services that will generate recurring fee-based revenue.
BioteQ announced its 2010 goals in early January and now reports:
- 2 New Plants with Operating Contracts: One plant construction project has been completed, on time and within budget, and commissioning is in progress at a mine site in Canada, as noted in the “Project Pipeline” discussion above. The project is a fee-based design-supply-operate contract where the customer has paid for the design and capital cost of the plant and where BioteQ will charge water treatment fees. A second plant is in the engineering stage and is scheduled for completion this year in China, subject to approvals. That project will be a joint venture build-own-operate project where BioteQ will share in the capital and operating cost and the revenue will be based on nickel and cobalt recovered from wastewater. BioteQ’s share of the capital cost is estimated to be $1 million, which will be financed from current cash reserves. These projects are consistent with BioteQ’s goal to generate recurring revenues that contribute to overall profitability, and provide a balance between fee-based contracts and commodity-based revenue sources.
- 2 Pilot Projects: The Company currently has two fee-for-service pilot projects planned for 2010, subject to final approvals, with additional pilot projects in the development pipeline. The pilot projects include new applications for its metal recovery technology, introduction of its new Sulf-IX™ sulphate removal technology to the mining, energy and waste management sectors, and a contract for specialty water treatment services for a new customer in Chile. The projects in the pipeline at this time are not anticipated to require capital from BioteQ. Pilot projects enable BioteQ to prove its technology to new markets and new customers, building a foundation for future operating projects that can contribute to long-term growth.
- 2 New Strategic Alliances: The Company has announced two new strategic alliances so far this year – Newalta and Lanxess. It is anticipated that the Newalta and Lanxess relationships will extend BioteQ’s water treatment technologies to new industrial sectors and add a significant marketing force to develop new opportunities, both internally and with third party customers of both partners.
Brad Marchant, BioteQ’s Chief Executive Officer, stated, “We made a conscious decision in 2009 to diversify BioteQ’s markets, generate more revenue from fee-based contracts, and maintain our core operating platform which generates recurring revenues. At the same time, we have been somewhat silent about our new projects in order to protect our competitive position and to respect of the wishes of our customers. It is our policy to provide accurate information about the Company’s activities that reflects meaningful guidance for performance. In the short term, this will create a gap in reporting of project details as we develop projects to completion rather than speculate about possible outcomes. We remain debt-free, we have operating capital, our technologies and operating expertise are proven and we have a healthy pipeline of new projects, new customers, and potential new markets. The economic changes during the final months of 2008 and the first half of 2009 created difficult times for many, and I feel BioteQ has responded to change with a solid plan that strengthens the company and positions us to generate sustainable profits and reward our shareholders.”
BioteQ’s financial statements and the Company’s MD&A will be released after market close on Tuesday May 11. The statements will be 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 Wednesday May 12 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 May 26 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 9 plants at sites in Canada, the US, China, Australia and Mexico, with additional projects in design and construction.
BioteQ has been named one of Canada’s Top 50 Most Socially Responsible Corporations by Jantzi Research and Maclean’s, and the company’s sustainable water treatment solutions have been recognized with the Canada Export Achievement Award, 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