2008 operating and financial highlights:
BioteQ processed more than 9.4 billion liters of contaminated water during 2008, and removed over 3 million pounds of metal contaminants, more than double the quantities in 2007.
The increase in revenues is due to contributions from new operations in China, Australia, and Mexico.
BioteQ continues to maintain working capital of CAD10.1 million and remains debt free.
BioteQ applied new SART technology for gold mining operations, improving gold yields while removing metal contaminants from the gold leach process.
BioteQ piloted its new Sulf-IX technology to remove sulphate, proving that the technology can deliver lower capital and operating costs compared to competing technologies.
BioteQ expanded its operating activities during 2008, adding 4 new plants to its operating portfolio. The company’s 2008 financial performance reflects results from 6 operations – water treatment plants at Bisbee, Raglan, Dexing, Mt. Gordon, Lluvia de Oro, and Wellington Oro.
The rapid decline in global commodity markets during the fourth quarter of 2008 significantly impacted BioteQ’s financial results, offsetting strong revenue growth in the first three-quarters of the year. While annual revenues are up by 67% to CAD7.8 million for 2008, revenues for the fourth quarter softened to CAD1.3 million. Revenues were impacted by falling commodity prices for all metal-based operations, and lower than expected production at the Lluvia de Oro site.
Although commodity prices fell during the fourth quarter, input costs remained high. This contributed to significantly higher than expected plant operating costs. Plant operating costs for 2008 were CAD8 million, compared to CAD2.3 million in 2007. This has resulted in a negative cash flow from plant operations of CAD240,000, compared to a positive cash flow from plant operations of CAD2.3 million in 2007.
Brad Marchant, BioteQ’s chief executive officer stated, Although BioteQ’s operations have performed well technically, they have not generated the financial results that we expected because of the sharp and rapid downturn in the commodity markets. We are responding to this change in market conditions by working to preserve cash, reduce costs all of our operations, and adjust some of our operating contracts to fee-based structures. We are also exploring ways to take our technologies to other markets such as water treatment in the power generation sector, and government infrastructure investments.
