BioteQ Reports Q2 2011 Operating and Financial Results

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Source: BioteQ Environmental Technologies

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/04/11 -- 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 and six months ended June 30, 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 Q2 2011:

--  BioteQ has active water treatment operations in China and the US and
    seasonal operations in Canada; these operations generate recurring
    revenues. The Company is also involved in several engineering, design,
    construction and piloting projects at various stages of completion;
    these projects generate one-time revenues. Recurring revenues for the
    quarter were generated by copper recovery at the Dexing plant in China,
    and fee-based water treatment operations at the Raglan site in Quebec.
    One-time revenues were driven by engineering projects for new plants
    that are expected to enter into construction later in 2011 and in 2012.
--  Total revenues for the period were $1.4 million compared to $1.9 million
    in 2010. Year to date, revenues totaled $2.7 million compared to $4.5
    million in 2010. The decrease in revenue was mainly attributable to
    lower copper production at the Dexing plant in China during 2011, and
    higher one-time revenues in 2010 from a plant sale. Management
    anticipates that new projects currently in development will drive
    significant revenue growth in the last half of 2011 and into next year
    to meet the Company's revenue growth targets.
--  Operating income for the quarter was $569,000 compared to $995,000 in
    2010. Year to date, operating income is $787,000 compared to $1.6
    million in 2010. The decrease was largely due to the same items that
    impacted revenue.
--  The net loss for the quarter was $737,000, compared to a loss of
    $567,000 in 2010. The comprehensive loss for the quarter was $915,000
    compared to $152,000 in 2010. Year to date, the comprehensive loss is
    $2.2 million compared to $863,000 in 2010.
--  BioteQ ended the period with $11.3 million in working capital which
    included $11 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.
--  During the quarter, BioteQ commenced commissioning of a new 800 cubic
    meter per hour ion exchange plant for recovery of cobalt and nickel from
    low-grade solution at the Dexing site in China. Commissioning is
    progressing, with completion expected by the end of the third quarter.
--  BioteQ entered into a fee-based contract with Compania Minera Maricunga,
    a wholly-owned subsidiary of Kinross Gold, to provide process review and
    commissioning services for a SART plant currently under construction at
    the Maricunga Mine located in Chile. BioteQ's services include
    engineering and operations review, preparation of operating manuals and
    procedures, training of local operators, and on site engineering
    supervision of the SART plant operation during commissioning. Services
    under the contract began during the quarter and are expected to be
    completed in early 2012.
--  BioteQ has completed engineering for a 6,500 m3/h zinc recovery plant
    with capacity to recover 130 million pounds of zinc, on behalf of a
    mining customer. BioteQ has earned engineering and design fees. Project
    execution is subject to customer approvals and schedule.
--  BioteQ is continuing its litigation efforts for the plants in Mexico and
    Australia to recover the value of the Company's assets.
--  During the quarter, the Company announced the retirement of its Chief
    Executive Officer and director ('CEO'). The CEO will remain with the
    Company in his current role until a permanent successor is appointed.
    The Board of Directors has established a CEO Search Committee, and has
    retained the services of an international executive search firm, with a
    mandate to seek out a seasoned leader who can accelerate BioteQ's
    growth. The Board has reviewed the qualifications of potential
    candidates, developed a short-list, and carried out initial interviews.
    A final decision is expected early this fall.
--  Subsequent to quarter end, BioteQ signed an agreement with a European
    engineering firm to advance a cyanide regeneration and recovery project
    that incorporates a SART process plant to be designed and provided by
    BioteQ at a gold mine site in Central Asia. Test work followed by
    process design is expected to commence in the third quarter.
    Negotiations of the final commercial terms and timeline for construction
    are expected by the end of the year pending customer requirements.
--  In July 2011, BioteQ entered into a framework agreement with Minera
    Mexico, S.A. de C.V., a subsidiary of Grupo Mexico S.A.B. de C.V., to
    provide water treatment solutions at their selected sites. Under the
    agreement BioteQ will provide process design and commissioning services
    as well as plant equipment on a process fee basis, in return for a
    license to use BioteQ's technology for each treatment project. Minera
    Mexico will provide for construction of the treatment plants. The
    companies have initiated the review of the first ten potential treatment
    projects at three of Minera Mexico's sites in Mexico.
--  BioteQ has 12 additional projects in the development pipeline for 2011,
    2012, and 2013 which are subject to customer approval, including three
    additional SART projects, expansion of an existing water treatment plant
    for a current customer, a new water treatment plant at an active mine to
    treat up to 650 m3/h, a new water treatment plant for a new mine to
    treat up to 730 m3/h, two multi-stage water treatment plants for a new
    mine to treat up to 1,800 m3/h, two Sulf-IX? projects ranging in
    size from 30 to 300 m3/h, and two portable metal recovery plants.

BioteQ's financial statements and the Company's MD&A have been filed on SEDAR, www.sedar.com, and will be available on the BioteQ website at www.bioteq.ca.

A conference call to discuss the financial results is scheduled for Friday August 5th 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 August 19th by dialing 905-694-9451, reference number 2127682. 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 visit our website at www.bioteq.ca.

BioteQ Environmental Technologies Inc.
Consolidated Statement of Financial Position
Unaudited
---------------------------------------------------------------------------

                                                Jun 30, 2011   Dec 31, 2010
                                                           $              $
Assets
Current assets
Cash and cash equivalents                          7,333,682      4,653,465
Short-term investments                             3,686,902      7,957,391
Trade receivables                                  1,437,143      1,676,963
Receivable from joint venture partners               129,532        180,204
Net insurance proceeds receivable (note 8)           629,256        618,248

Taxes recoverable                                          -         15,469
Inventory (note 9)                                    80,099         54,723
Prepaid expenses                                     208,908        241,089
                                             ------------------------------
                                                  13,505,522     15,397,552

Non-current assets
Property, plant and equipment (note 10)            7,240,234      6,671,046
Intangible asset                                      85,168        100,654
                                             ------------------------------
Total assets                                      20,830,924     22,169,252
                                             ------------------------------
                                             ------------------------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities           2,129,733      1,544,901

Taxes payable                                         76,118              -
Deferred lease inducement                             33,153         47,362
                                             ------------------------------
                                                   2,239,004      1,592,263

Non-current liabilities
Long-term liabilities                                107,487         46,884
                                             ------------------------------
Total liabilities                                  2,346,491      1,639,147
                                             ------------------------------

Shareholders' Equity
Capital stock and warrants (note 11)              55,269,417     55,182,229
Contributed surplus (note 11)                      8,085,925      8,045,826
Accumulated other comprehensive loss              (1,603,247)    (1,482,945)
Deficit                                          (43,267,662)   (41,215,005)
                                             ------------------------------
Total shareholders' equity                        18,484,433     20,530,105
                                             ------------------------------
Total liabilities and shareholders' equity        20,830,924     22,169,252
                                             ------------------------------
                                             ------------------------------

Commitment (note 18)

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the three and six months ended June 30, 2011 and 2010
Unaudited
---------------------------------------------------------------------------

                            3 months ended June 30,  6 months ended June 30,
                                  2011        2010         2011        2010
                                     $           $            $           $

Revenue                      1,406,041   1,949,090    2,729,971   4,486,995
Plant and other operating
 costs (other than
 depreciation)                 837,061     953,795    1,943,099   2,872,764
                          ------------------------ ------------------------

                               568,980     995,295      786,872   1,614,231

General and administration   1,051,191     722,029    1,987,595   1,441,615
Marketing and development      217,717     262,699      340,725     568,509
Stock-based compensation
 (note 11)                      27,903     150,590       70,403     280,128
Depreciation of property,
 plant and equipment (note
 10)                           151,843     209,478      300,490     416,480
Amortization of intangible
 asset                           7,743       7,743       15,486      15,486
                          ------------------------ ------------------------

Loss before the under-
 noted                        (887,417)   (357,244)  (1,927,827) (1,107,987)

Interest income                 23,780       9,763       50,778      14,650
Other income                         -      33,082            -      72,444
Lease fee income                     -     247,119            -     485,890
Foreign exchange gain
 (loss)                        204,747    (403,308)        (597)   (496,365)
                          ------------------------ ------------------------

Loss before income taxes      (658,890)   (470,588)  (1,877,646) (1,031,368)

Income taxes (note 12)          78,316      95,840      175,011     183,296
                          ------------------------ ------------------------

Net loss for the period       (737,206)   (566,428)  (2,052,657) (1,214,664)

Other comprehensive income
 (loss)
Cumulative translation
 adjustment                   (178,182)    415,180     (120,302)    350,739
                          ------------------------ ------------------------

Comprehensive loss for the
 period                       (915,388)   (151,248)  (2,172,959)   (863,925)
                          ------------------------ ------------------------
                          ------------------------ ------------------------


Net loss per share
Basic and diluted                (0.01)      (0.01)       (0.03)      (0.02)

Weighted average number of
 shares outstanding
Basic                       69,955,188  69,854,752   69,930,714  69,391,903
Diluted                     70,207,985  69,932,596   70,292,453  69,679,433

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.
Consolidated Statement of Changes in Equity
For the three and six months ended June 30, 2011 and 2010
Unaudited
---------------------------------------------------------------------------

                                       Accumulated
                                             other
                     Share                  compre-
                   capital                 hensive
                       and Contributed      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
Stock-based
 compensation            -      70,403           -            -      70,403
Exercise of
 options (note
 11)                87,188     (30,304)          -            -      56,884
Net loss for
 the period              -           -           -   (2,052,657) (2,052,657)
Other
 comprehensive
 income for the
 period                  -           -    (120,302)           -    (120,302)
               ------------------------------------------------------------
Balance - June
 30, 2011       55,269,417   8,085,925  (1,603,247) (43,267,662) 18,484,433
               ------------------------------------------------------------
               ------------------------------------------------------------

Balance -
 January 1,
 2010           51,148,380   7,586,362           -  (30,286,323) 28,448,419
Issuance of
 capital stock
 and warrants
 (note 11)       4,000,000           -           -            -   4,000,000
Stock-based
 compensation            -     280,128           -            -     280,128
Exercise of
 options (note
 11)                25,018      (8,585)          -            -      16,433
Net loss for
 the period              -           -           -   (1,214,664) (1,214,664)
Other
 comprehensive
 loss for the
 period                  -           -     350,739            -     350,739
               ------------------------------------------------------------
Balance - June
 30, 2010       55,173,398   7,857,905     350,739  (31,500,987) 31,881,055
               ------------------------------------------------------------
               ------------------------------------------------------------

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.
Consolidated Statement of Cash Flow
For the three and six months ended June 30, 2011 and 2010
Unaudited
---------------------------------------------------------------------------

                           3 months ended June 30,   6 months ended June 30,
                                 2011        2010         2011         2010
                                    $           $            $            $
Cash flow provided by
 (used in)

Operating activities
Net loss for the period      (737,206)   (566,428)  (2,052,657)  (1,214,664)
Items not affecting cash:
 Depreciation of property,
  plant and equipment         151,843     209,478      300,490      416,480
 Amortization of
  intangible asset              7,743       7,743       15,486       15,486
 Amortization of deferred
  lease inducement             (7,104)          -      (14,209)           -
 Unrealized foreign
  exchange (gain) loss        (72,462)    615,255     (124,275)     567,112
 Stock-based compensation
  charge (note 11)             27,903     150,590       70,403      280,128
                          -----------------------  ------------------------

                             (629,283)    416,638   (1,804,762)      64,542
Change in non-cash working
 capital items (note 13)      372,391    (187,818)     976,202      (38,023)
                          -----------------------  ------------------------
Net cash provided by (used
 in) operating activities    (256,892)    228,820     (828,560)      26,519
                          -----------------------  ------------------------

Investing activities
Purchase of property,
 plant and equipment         (332,969)   (312,853)    (868,922)    (317,586)
Purchase of short-term
 investments               (3,679,908) (6,038,444)  (6,072,880) (12,083,469)
Proceeds from sale of
 short-term investments     5,557,673   6,044,369   10,340,881    8,892,310
Repayment of loan
 receivable                         -     150,000            -      300,000
                          -----------------------  ------------------------
Net cash provided by (used
 in) investing activities   1,544,796    (156,928)   3,399,079   (3,208,745)
                          -----------------------  ------------------------

Financing activities
Proceeds from exercise of
 options                       30,652       1,934       56,884       16,434
Proceeds from issuance of
 capital stock and
 warrants                           -           -            -    4,000,000
Increase (decrease) in
 long-term liabilities       (64,342)           -       60,603            -
                          -----------------------  ------------------------
Net cash provided by
 financing activities        (33,690)       1,934      117,487    4,016,434
                          -----------------------  ------------------------

                            1,254,214      73,826    2,688,006      834,208
Effect of exchange rate
 changes on cash and cash
 equivalents                  (70,225)    (70,060)      (7,789)      (2,273)
                          -----------------------  ------------------------
Increase in cash and cash
 equivalents                1,183,989       3,766    2,680,217      831,935
Cash and cash equivalents
 Beginning of period        6,149,693   3,319,471    4,653,465    2,491,302
                          -----------------------  ------------------------
 End of period              7,333,682   3,323,237    7,333,682    3,323,237
                          -----------------------  ------------------------
                          -----------------------  ------------------------

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

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.

Contacts:
BioteQ Environmental Technologies Inc.
Tanja McQueen
VP Corporate Development
604-685-1243 or 1-800-537-3073
604-685-7778 (FAX)
investor@bioteq.ca
www.bioteq.ca

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