Welcome!

News Feed Item

BioteQ Reports Q1 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/14/14 -- BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in industrial wastewater treatment, releases its financial and operating results for the three months ended March 31, 2014. Further information on the quarterly results can be obtained from the Company's Q1 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 May 15 at 11:00 AM EDT to discuss results for the first quarter. Participants can dial in as follows:


North America: 1-416-644-3415 or toll free at 1-877-974-0445
United Kingdom: 44-20-7190-1595 or toll free at 0800-358-5256
Switzerland: 41-22-592-7311 or toll free at 0800-560-749
Participant pass code: 4682671

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 current and future 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 Q1 2014 MD&A.

Q1 2014 Financial Results


--  Revenues for the quarter as reported under GAAP were $154,000 compared
    $796,000 in 2013, a decline of 80% compared to the prior year;
--  Proportional revenues, which include the Company's joint venture
    activities, were $553,000 compared to $2 million in 2013, a decline of
    76% compared to the prior year;
--  Adjusted earnings before interest, tax, depreciation and amortization
    ("adjusted EBITDA") was a loss of $2 million compared to a loss of
    $755,000 in Q1 2013;
--  Net loss for the quarter as reported under GAAP was $2.1 million
    compared to $1 million in 2013; and
--  Cash and cash equivalents and short-term investments, including its
    share held in joint ventures, was $2.7 million compared to $3.2 million
    at the end of 2013.

Management Changes

In February 2014, BioteQ announced changes to its executive management team and roles on its Board of Directors as follows:


--  Jonathan Wilkinson stepped down from his positions as Chief Executive
    Officer and Board member;
--  David Kratochvil, previously BioteQ's President and Chief Technology
    Officer, rejoined the Company in the capacity of Interim Chief Executive
    Officer;
--  George Poling stepped down from his capacity as Board Chair for personal
    reasons, although he will remain on the BioteQ Board; and
--  Peter Gleeson, previously a non-executive member of the Board, assumed
    an executive management role as Executive Chairman.

The management and board changes are part of a plan that will include a renewed emphasis on the development and provision of innovative technical solutions for the mining sector.

Water Treatment Operations

Water treatment operation at the Dexing mine site, a joint venture with mine site owner Jiangxi Copper Company ("JCC"), treated 1.3 million cubic metres of water and recovered a total of 212,000 pounds of copper compared to Q1 2013 when BioteQ treated 2.2 million cubic metres of water and recovered 511,000 pounds of copper. The decline in water volume and copper production were anticipated and meet budgeted projections. The decrease in volume of water treated and pounds of copper recovered is due to lower than expected rainfall in the region and lower concentrations of copper in the feed water. In recent weeks, both the volume of water at the site and copper concentration levels have increased back to historical levels and we now anticipate that the plant is expected to recover approximately 1.6 million pounds of copper for the year.

New Plant Construction Update

BioteQ is completing construction of two new plants in China with joint venture partner JCC. The copper recovery plants are in the final stages of construction and commissioning and will commence operations in the second quarter.


--  The plant at JCC's Yinshan mine site is currently being commissioned.
    The plant has started to receive wastewater into the plant to allow
    final process and mechanical adjustments to be completed. Once fully
    operational, the plant is expected to recover approximately 900,000
    pounds of copper on an annual basis.
--  A second copper recovery plant at JCC's Dexing mine site is in the final
    construction phase and expected to begin commissioning and operations
    later in Q2. 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

The management changes announced during the quarter were implemented to refocus the company to pursue opportunities that will lead to the generation of recurring revenues and that will allow BioteQ to play the role of a technical expert and a technology partner to customers seeking to manage technical risks associated with achieving cost effective compliance with new, challenging, environmental regulations. These partnerships will better align the interests of BioteQ and its customers in the success of projects over the long-term while utilizing the Company's core strengths and expertise. Since the personnel changes, management has been actively engaging existing and potential new customers with this objective as a primary focus. In addition, BioteQ continued to work closely with existing business partners in advancing joint business opportunities and identified and started working with several new partners who will broaden BioteQ's outreach and capacity to execute projects using the new business model. Finally, management engaged well established and highly reputable service providers to the mining industry who could open up potential new channels in the future. While the initial response has largely been very positive, it will take time for relationships to develop, suitable sites to be identified, and projects to be awarded.

The following is an update on key opportunities in progress:

Selenium Removal - Selen-IX™

BioteQ is currently in the process of working with its existing partners and potential new customers on deploying its Selen-IX™ pilot plant, constructed and successfully operated as part of the work performed under contract with Teck in 2013, on streams where nitrate removal is not required. The objective is to select those opportunities that combine the right technical fit with the customers' needs that are often customer and site specific.

EcoMetales Limited - BioSulphide® Plant Design

Subsequent to the end of the quarter, BioteQ started to provide paid technical services to BioteQ's Chilean partner EcoMetales Limited ("ECL") focused on advancing the design of a treatment plant using BioteQ's BioSulphide® process to improve the removal of arsenic from wastewater originating at one of the smelter operations in Chile. The objective of the project is to reduce the hazardous wastes, in terms of mass and volume, and to enhance water reuse. The support from BioteQ is part of a broader effort to complete environmental assessment and economic evaluation of the treatment 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's 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.

Other Items:


--  In December 2013, BioteQ began a financing under a Share Rights Offering
    to raise gross proceeds of approximately $1.2 million ($960,000 net of
    expenses). The proceeds from the offering will be used to fund operating
    expenses and other general working capital needs. The financing closed
    in January 2014.
--  BioteQ continues to be engaged in its ongoing litigation with Aditya
    Birla Minerals in Australia. The courts have set a mediation date for
    both parties in late June 2014. BioteQ's legal position has not changed
    since the inception of the litigation: BioteQ does not believe Birla's
    allegations have merit and are vigorously defending its position. BioteQ
    will also continue to pursue legal action against Birla for breach of
    contract related to water treatment operations at the Mount Gordon site.
--  During the quarter, BioteQ amended the payment terms of its legal
    settlement with NWM Mining. The final $700,000 payment originally due
    April 30, 2014 is now due as follows: $50,000 due March 31, 2014,
    $50,000 due April 15, 2014, and the final $600,000 balance will be due
    no later than June 30, 2014. All other terms and conditions remain
    unchanged. The March and April payments totaling $100,000 have been
    received.

2014 Outlook

BioteQ entered 2014 with a limited backlog in new project bookings. Projects that were expected to be closed and executed by this time of the year have not materialized or have been delayed. 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. Although the Company believes it can manage its working capital through this period, non-operational sources of capital may be required in the short-term.

The company is reviewing and actively pursuing all options to avoid a short-term working capital deficiency including the repatriation of funds available in its joint venture ahead of schedule and pursing amounts owed. However, the results of these initiatives are uncertain at this time.

BioteQ Corporate Profile

BioteQ is an innovative clean technology leader in global industrial water treatment, serving the mining and energy markets. The company has technology expertise and proven operational capabilities in sulphide precipitation, ion exchange, alkali/lime precipitation, leaching, sulphate removal and SART technology. Over the past decade, BioteQ has designed and commissioned wastewater treatment plants at mine sites for leading organizations including Glencore Xstrata, Freeport McMoran, Jiangxi Copper and the US EPA. These plants recover dissolved metals and/or remove substances such as sulphate and selenium, producing clean water and minimizing or eliminating residual waste. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

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 www.sedar.com (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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Cloud resources, although available in abundance, are inherently volatile. For transactional computing, like ERP and most enterprise software, this is a challenge as transactional integrity and data fidelity is paramount – making it a challenge to create cloud native applications while relying on RDBMS. In his session at 21st Cloud Expo, Claus Jepsen, Chief Architect and Head of Innovation Labs at Unit4, will explore that in order to create distributed and scalable solutions ensuring high availa...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.