Click here to close now.




















Welcome!

News Feed Item

BioteQ Reports Q2 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/12/14 -- BioteQ Environmental Technologies Inc. (TSX: BQE), a leader in the treatment of mine impacted waters, releases its financial and operating results for the three and six months ended June 30, 2014. Further information on the quarterly results can be obtained from the Company's Q2 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 August 13 at 11:00 AM EDT to discuss results for the quarter. Participants can dial in as follows:

North America: 1- 416-204-9271 or toll free at 1-800-505-9568

United Kingdom: toll free at 0800-279-0444

Switzerland: toll free at 0800-200-345

Participant pass code: 3771618

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 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 Q2 2014 MD&A.

Q2 2014 Financial Results


--  Revenues for Q2 2014 as reported under GAAP were $697,000 compared to
    $924,000 in 2013, a decline of 25% compared to the prior year;
--  Proportional revenues for Q2 2014 were $1,873,000 compared to $2,008,000
    in 2013, a decline of 7% compared to the prior year;
--  Earnings for the current quarter include a recovery of $300,000 from a
    bad debt expense originally recognized in 2010;
--  Adjusted earnings before interest, tax, depreciation and amortization
    ("adjusted EBITDA") for Q2 2014 was income of $203,000 compared to a
    loss of $468,000 in 2013;
--  Net loss for the quarter as reported under GAAP was $16,000 compared to
    a loss of $844,000 in 2013; and
--  Cash and short-term investments, including our share held in joint
    ventures, was $1.9 million compared to $3.2 million at December 31,
    2013.

Other Items


--  During the second quarter, BioteQ further amended the payment terms of
    its legal settlement with NWM Mining Corporation ("NWM"). Under the
    amended terms, the final $600,000 balance due June 30, 2014 is now due
    as follows: $300,000 has been paid and the remaining $300,000 by no
    later than September 30, 2014. All other terms and conditions remain
    unchanged.
--  During the quarter, BioteQ and Aditya Birla Minerals ("Birla") met for
    court ordered mediation related to lawsuits commenced in 2010. The
    parties failed to come to an agreement and the litigation continues to
    be in progress.

Water Treatment Operations


--  In June, BioteQ commenced operations at its plant at the Raglan mine
    site in Quebec. The current operating season is expected to continue
    until the end of October. BioteQ staff will also be operating a lime
    treatment plant for water that is not treated by BioteQ's
    ChemSulphide® plant. During the quarter, BioteQ treated and discharged
    72,000 cubic metres of water.
--  Water treatment operation at the Dexing mine site, a joint venture with
    mine site owner Jiangxi Copper Company ("JCC"), treated 2.6 million
    cubic metres of water and recovered a total of 681,000 pounds of copper
    compared to Q2 2013 when BioteQ treated 3.4 million cubic metres of
    water and recovered 592,000 pounds of copper.

New Plant Construction Update

During the second quarter, BioteQ completed construction and commissioning of one of the two new plants in China with joint venture partner JCC. The second copper recovery plant is in the final stages of commissioning and will commence operations in the third quarter.


--  The plant at JCC's Yinshan mine site began operations in early June.
    During the quarter, the plant processed 260,000 cubic metres of
    wastewater and recovered 44,000 pounds of copper. The plant is expected
    to recover approximately 450,000 pounds of copper to the end of the year
    and 900,000 pounds of copper on an annual basis.
--  A second copper recovery plant at JCC's Dexing mine site is in the final
    commissioning phase and expected to begin operations later in Q3. 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

Since the personnel changes announced at the beginning of the year, management has been actively engaging existing and potential new customers to advance joint business opportunities and have been working with several new channel partners to broaden BioteQ's outreach and capacity to execute projects.

The following is an update on key opportunities in progress:

Selenium Removal - Selen-IX™

During the quarter, BioteQ secured a contract with a Canadian company to conduct pilot scale testing of our Selen-IX™ technology for selenium removal. The current value of the contract is $890,000 and work is already under way to allow the pilot plant to begin operating in August and complete the pilot campaign by the end of October 2014.

EcoMetales Limited - BioSulphide® Plant Design

During the quarter, BioteQ secured a technical services contract with its Chilean strategic partner EcoMetales Limited ("ECL") for the detailed process engineering of a smelter effluent treatment plant using our BioSulphide® 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 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.

OUTLOOK AND GOING CONCERN

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. In recent months, BioteQ has completed various short-term measures to manage working capital through the next three to six months including: a repatriation of funds from our Chinese joint venture, receipt of funds from our legal settlement with NWM Mining, and cost deferrals and reductions. Although the Company believes it can manage its working capital through this period, non-operational sources of capital may be required beyond this period.

For the current fiscal year, BioteQ projects Proportional Revenues to be in the range of $6.8 million to $7.3 million. BioteQ projects Adjusted EBITDA loss to be in the range of $2.1 million to $2.6 million. In the prior year, BioteQ had Proportional Revenues of $7.6 million and an Adjusted EBITDA loss of $2.3 million. The current year's forecast include the impact of significant one-time restructuring costs and provisions incurred in the first quarter. Projections also include anticipated earnings from two new plants in China as well as successful completion of the selenium removal piloting contract recently awarded.

David Kratochvil, President & Interim CEO, said, "Our results for the second quarter are beginning to reflect the impact of cost savings through internal restructuring and our new sales model and strategy to rebuild our sales pipeline. This, in combination with the working capital initiatives implemented earlier in the year have stabilized our short-term financial position. We intend to carry this momentum to ultimately generate long-term, sustainable, profitability for the company."

Q2 2014 Financial Highlights Summary

For a complete set of Financial Statements and Management Discussion and Analysis, please go to www.bioteq.ca


(unaudited, in $'000 except
 for per share amounts)       3 months ended Jun. 30  6 months ended Jun. 30
                                    2014        2013        2014        2013
                                       $           $           $           $
                            ------------------------------------------------
Revenues                             697         924         851       1,720
less: Plant and other
 operating costs (excluding
 depreciation)                       463         654         615       1,262
                            ------------------------------------------------
                                     234         270         236         458
General and administration           484       1,067       1,540       2,038
Sales and development                337         449         862         923
Share of results of equity
 accounted joint ventures          (399)       (184)       (322)       (317)
                            ------------------------------------------------
                                   (188)     (1,062)     (1,844)     (2,186)
Depreciation and
 amortization                         55         126         119         272
Stock-based compensation            (27)          31          13          65
                            ------------------------------------------------
Loss before other (expense)
 income                            (216)     (1,219)     (1,976)     (2,523)
Other (expenses) income -
 net                                (15)          14           1         107
Bad debt recovery (expense)          300         200        (78)         400
Gain on disposal of
 equipment                             3         239           3         239
Income tax                          (88)        (78)        (88)        (80)
                            ------------------------------------------------
Net loss for the quarter            (16)       (844)     (2,138)     (1,857)
Translation (loss) gain on
 foreign operations                 (61)         406         113         553
                            ------------------------------------------------
Comprehensive (loss) for the
 quarter                            (77)       (438)     (2,025)     (1,304)
                            ------------------------------------------------
                            ------------------------------------------------

Net loss per share (basic
 and diluted)                         $-     $(0.01)     $(0.02)     $(0.03)

Proportional Revenues(1)           1,873       2,008       2,426       3,946
Adjusted EBITDA(1)                   203       (468)     (1,783)     (1,222)

(1) see "Non-GAAP Financial Measures" in the Company's Q2 2014 MD&A

BioteQ Corporate Profile

BioteQ is an innovative clean technology leader in global mine water treatment, serving the mining, metal smelting, refining and hydrometallurgical sectors. The company has commercially proven patented technologies and operational capabilities to help customers achieve compliance with stringent regulations cost effectively while minimizing waste and maximizing water recovery. Over the past decade, BioteQ has designed and commissioned plants at mine sites for leading organizations including Glencore-Xstrata, Freeport McMoran, Jiangxi Copper and the US EPA and is currently operating four 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 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
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...