BQE Water

BQE Water

BioteQ Reports Q1 2011 Operating and Financial Results


Source: BQE Water

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/30/11 -- BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in the treatment of industrial waste water, reports its unaudited financial and operating results for the three months ended March 31, 2011. All figures are in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

Operating and financial results highlights for Q1 2011:

--  BioteQ's first quarter operating and financial results reflect recurring
    copper revenues from active water treatment operations in China,
    engineering services revenues for four plants that are owned by
    customers, and engineering fee revenues for four new projects in
    development. The Bisbee operation was inactive during the quarter due to
    plant repairs. Seasonal fee-based operations in Quebec and the Yukon
    remained inactive during the winter season; operations staff are
    currently preparing both plants for the 2011 operating season.

--  Revenues for the period were $1.3 million compared to $2.5 million in
    2010. Revenues are typically lower in the first quarter because seasonal
    operations are inactive. Revenues during the same quarter last year were
    higher than usual because BioteQ completed construction of a plant for a
    customer in the Yukon, Canada, generating one-time revenues, and the
    Dexing plant in China achieved higher than budgeted production in the
    first quarter 2010.

--  Operating income for the period was $218,000 compared to $619,000 in

--  The comprehensive net loss for the period was $1.3 million compared to
    $713,000 in 2010.

--  BioteQ ended the period with $12.3 million in working capital which
    included $11.7 million in cash and short-term investments. At December
    31, 2010, those balances were $13.8 million and $12.6 million
    respectively. The Company has no debt.

--  In joint venture with Jiangxi Copper, a third water treatment plant was
    under construction during the quarter at the Dexing site in China,
    applying a new ion exchange process to recover cobalt and nickel from
    mine drainage at the site. The plant is presently in commissioning, and
    is expected to enter production during the third quarter. The Company
    has invested a total of $1.4 million in the plant including $635,000 in
    Q1 2011.

--  During the quarter, BioteQ expanded its pipeline of active projects in
    development. Presently, the company is working on 16 projects, including
    plant feasibility evaluations, design, engineering and construction
    projects. Projects underway or completed during the quarter include
    engineering of a 6,500 m(3)/h zinc recovery plant for a mining customer,
    engineering of a molybdenum recovery plant for waste smelter dusts with
    EcoMetales, engineering of a mobile Sulf-IX? plant for removal of
    sulphates with Newalta, and preliminary design of two large, multi-stage
    water treatment plants for a new mine site. In addition, the Company has
    a further twelve projects in the early stages of development. The
    timeline for project execution is subject to key project milestones and
    customer approvals to proceed.

--  Subsequent to the quarter end, BioteQ signed a contract with Compania
    Minera Maricunga, a wholly-owned subsidiary of Kinross Gold, to provide
    process review and commissioning services for a 750 m(3)/h SART plant
    currently under construction in Chile. BioteQ has successfully designed
    and commissioned two other SART plants, and currently has several more
    SART projects in the early design stages. SART is an enabling technology
    that can improve gold yields, reduce operating costs, and enhance
    environmental performance at gold mines where the gold is complexed with
    copper minerals.

The Company held its Annual General Meeting on May 26, 2011. Shareholders re-elected George Poling, Bruce Burton, Kelvin Dushnisky, Clem Pelletier, Ron Sifton, and Chris Fleming as Directors, and added David Kratochvil, BioteQ's President and Chief Operating Officer, to the Board of Directors.

BioteQ's financial statements and the Company's MD&A have been filed on SEDAR,, and will be available on the BioteQ website at

A conference call to discuss the financial results is scheduled for Tuesday May 31 at 11:00 am Eastern. Participants can access the call by dialing 416-340-2217, or 1-866-696-5910, reference number 3277435. A playback of the call will be available until June 14 by dialing 905-694-9451. A recording will be available on the BioteQ website within two days of the call.

BioteQ Corporate Profile

BioteQ creates custom water treatment solutions to recover dissolved metals and remove sulphate from water impacted by mining, energy and industrial activities. The company's clean technologies convert wastewater into a useful resource while delivering lower life cycle costs for water treatment. BioteQ has designed and commissioned 14 plants at sites in Canada, the US, Mexico, Australia and China, with additional projects in development.

BioteQ continues to diversify its technology offering to address challenging water treatment problems in mining, oil and gas, and power generation. The Company is actively marketing its new Sulf-IX? technology to address tightening regulations for sulphate discharge. The Company's portfolio of metal recovery technologies has expanded to include specialty applications of ion exchange to recover valuable metals. In addition, BioteQ maintains an active research and development program to develop new treatment technologies for emerging water treatment concerns.

BioteQ's sustainable water treatment solutions have been recognized with national and international awards for innovation and sustainability. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to

BioteQ Environmental Technologies Inc.
Consolidated Statement of Financial Position

                                  Mar 31 2011    Dec 31 2010     Jan 1 2010
                                            $              $              $
Current assets
Cash and cash equivalents           6,149,693      4,653,465      2,491,302
Short-term investments              5,572,677      7,957,391      2,849,244
Trade receivables                   1,780,445      1,676,963      2,169,978
Receivable from joint venture
 partners                             129,532        180,204         47,288
Current portion of loan
 receivable (note 6)                        -              -        468,424
Net insurance proceeds
 receivable (note 8)                  609,734        618,248              -
Taxes recoverable                           -         15,469         76,597
Inventory (note 9)                     56,319         54,723        673,617
Prepaid expenses                      158,541        241,089        223,009
                                   14,456,941     15,397,552      8,999,459

Non-current assets
Loan receivable (note 6)                    -              -     10,339,235
Property, plant and equipment
 (note 10)                          6,985,438      6,671,046     10,273,858
Intangible asset                       92,911        100,654        131,626
Total assets                       21,535,290     22,169,252     29,744,178

Current liabilities
Accounts payable and accrued
 liabilities                        1,999,085      1,544,901      1,295,759
Taxes payable                         111,538              -              -
Deferred lease inducement              40,257         47,362              -
                                    2,150,880      1,592,263      1,295,759

Non-current liabilities
Long-term liabilities                  43,145         46,884              -
Total liabilities                   2,194,025      1,639,147      1,295,759

Shareholders' Equity
Capital stock and warrants
 (note 11)                         55,222,401     55,182,229     51,148,380
Contributed surplus (note 11)       8,074,386      8,045,826      7,586,362
Accumulated other comprehensive
 loss                              (1,425,065)    (1,482,945)             -
Deficit                           (42,530,457)   (41,215,005)   (30,286,323)
Total shareholders' equity         19,341,265     20,530,105     28,448,419
Total liabilities and
 shareholders' equity              21,535,290     22,169,252     29,744,178

Subsequent event (note 18)

For a complete set of consolidated financial statements including
accompanying notes, go to

BioteQ Environmental Technologies Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the three months ended March 31, 2011 and 2010

                                                        2011           2010
                                                           $              $

Revenue                                            1,323,930      2,537,905
Plant and other operating costs other than
 depreciation                                      1,106,038      1,918,969

                                                     217,892        618,936

General and administration                           936,405        719,586
Marketing and development                            123,008        305,810
Stock-based compensation (note 11)                    42,500        129,538
Depreciation of property, plant and equipment
 (note 10)                                           148,647        207,002
Amortization of intangible asset                       7,743          7,743

Loss before the under-noted                       (1,040,411)      (750,743)

Interest income                                       26,998          4,887
Other income                                               -         39,362
Lease fee income                                           -        238,771
Foreign exchange loss                               (205,344)       (93,055)

Loss before income taxes                          (1,218,757)      (560,778)

Income taxes (note 12)                                96,695         87,456

Net loss for the period                           (1,315,452)      (648,234)

Other comprehensive income (loss)
Cumulative translation adjustment                     57,880        (64,441)

Comprehensive loss for the period                 (1,257,572)      (712,675)

Net loss per share
Basic                                                   0.02           0.01
Diluted                                                 0.02           0.01

Weighted average number of shares outstanding
Basic                                             69,905,968     66,859,449
Diluted                                           79,485,333     76,488,814

For a complete set of consolidated financial statements including
accompanying notes, go to

BioteQ Environmental Technologies Inc.
Consolidated Statement of Changes in Equity
For the three months ended March 31, 2011 and 2010

                   Share                  compre-
                 capital     Contrib-    hensive
                     and        uted      income
                warrants     surplus       (loss)      Deficit        Total
                       $           $           $             $            $

Balance -
 January 1,
 2011         55,182,229   8,045,826  (1,482,945)  (41,215,005)  20,530,105
Issuance of
 and warrants
 (note 11)             -           -           -             -            -
 compensation          -      42,500           -             -       42,500
Exercise of
 (note 11)        40,172     (13,940)          -             -       26,232
Net loss for
 the period            -           -           -    (1,315,452)  (1,315,452)
 income for the
 period                -           -      57,880             -       57,880
Balance -
 March 31,
 2011         55,222,401   8,074,386  (1,425,065)  (42,530,457)  19,341,265

Balance -
 January 1,
 2010         51,148,380   7,586,362           -   (30,286,323)  28,448,419
Issuance of
 (note 11)     4,000,000           -           -             -    4,000,000
 compensation          -     129,538           -             -      129,538
Exercise of
 (note 11)        22,075      (7,575)          -             -       14,500
Net loss for
 the period            -           -           -      (648,234)    (648,234)
 loss for the
 period                -           -     (64,441)            -      (64,441)
Balance -
 March 31,
 2010         55,170,455   7,708,325     (64,441)  (30,934,557)  31,879,782

For a complete set of consolidated financial statements including
accompanying notes, go to

BioteQ Environmental Technologies Inc.
Consolidated Statement of Cash Flow
For the three months ended March 31, 2011 and 2010

                                                        2011           2010
                                                           $              $
Cash flow provided by (used in)

Operating activities
Net loss for the period                           (1,315,452)      (648,234)
Items not affecting cash:
 Depreciation of property, plant and equipment       148,647        207,002
 Amortization of intangible asset                      7,743          7,743
 Amortization of deferred lease inducement            (7,105)             -
 Unrealized foreign exchange loss                    199,525         11,049
 Interest income                                     (26,998)        (4,887)
 Stock-based compensation charge (note 11)            42,500        129,538

                                                    (951,140)      (297,789)
Change in non-cash working capital items
 (note 13)                                           608,620        148,926
Net cash used in operating activities               (342,520)      (148,863)

Investing activities
Purchase of property, plant and equipment           (535,624)        (4,733)
Purchase of short-term investments                (2,392,972)    (6,045,025)
Proceeds from sale of short-term investments       4,783,208      2,847,301
Interest received from short-term investments         21,476          5,527
Repayment of loan receivable                               -        150,000
Net cash provided by (used in) investing
 activities                                        1,876,088     (3,046,930)

Financing activities
Proceeds from exercise of options                     26,232         14,500
Proceeds from issuance of capital stock and
 warrants                                                  -      4,000,000
Decrease in long-term liabilities                     (3,739)             -
Net cash provided by financing activities             22,493      4,014,500

                                                   1,556,061        818,707
Effect of exchange rate changes on cash and
 cash equivalents                                    (59,833)         9,462
Increase in cash and cash equivalents              1,496,228        828,169
Cash and cash equivalents
 Beginning of period                               4,653,465      2,491,302
 End of period                                     6,149,693      3,319,471

For a complete set of consolidated financial statements including
accompanying notes, go to

On behalf of the Board of Directors,

Brad Marchant


Except for statements of historical fact relating to the Company, certain information contained herein constitutes 'forward-looking statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as 'plan ', 'expect', 'project', 'intend', 'believe', 'anticipate' and other similar words, or statements that certain events or conditions 'might' or 'will' occur. 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 and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled 'Risks' in the Company's Annual Report for the Year Ended December 31, 2010. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

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


BioteQ Environmental Technologies, Inc.
Tanja McQueen
Corporate Development
604-685-1243 or 1-800-537-3073
604-685-7778 (FAX)


Customer comments

No comments were found for BioteQ Reports Q1 2011 Operating and Financial Results. Be the first to comment!