First quarter operating and financial results summary:
BioteQ treated 2 billion liters of water and removed 575,000 pounds of metal contaminants from the environment;
The increase in revenue was due to contributions from the new operation in China, partially offset by declines in revenue at existing sites due to lower metal prices and production volumes;
BioteQ realized a one-time extraordinary item expense of CAD697,000 due to a write down of reagent and concentrate inventory damaged during flooding at the Mt. Gordon site in Australia;
The company ended the quarter with working capital of CAD8.2 million, and no debt.
BioteQ’s first quarter 2009 financial performance reflects results from 6 operating sources – Bisbee, Raglan, Dexing, Mt. Gordon, Lluvia de Oro, and Wellington Oro. Results were impacted by three inactive operations during the quarter: Raglan (plant operates seasonally from May to October), Mt. Gordon (operations temporarily suspended due to force majeure because of flooding at the mine site), and Lluvia de Oro (operations suspended pending resumption of gold mining operations). Revenues are derived from water treatment fees and the sale of metals recovered, and can be impacted by metal prices, the metal content in the water, and the volume of water processed.
Brad Marchant, BioteQ’s chief executive officer stated, “BioteQ has adjusted its operations during the first quarter to reduce costs and preserve capital, in response to market changes in the mining and metallurgy industry. We believe these changes will position BioteQ for profitable operations in the future, and expansion into new markets.”
