Initial pilot undertaken in a market vertical outside of hard rock mining
BioteQ completed construction of a mobile Sulf-IX™ unit that will provide pilot scale testing for sulphate removal. The mobile pilot plant, a joint initiative with Newalta Corporation, provides on-site field testing for sulphate removal from wastewater. Subsequent to year end, the parties announced the successful commissioning of the unit at a Newalta site. BioteQ also announced it had secured the first test contract for the unit with a US based industrial (non-hard rock mining) customer.
2012 FINANCIAL RESULTS
With the exception of Adjusted EBITDA figures, all figures are in accordance with International Reporting Standards (IFRS). Adjusted EBITDA is a non-GAAP measure that is utilized by the Company to provide appropriate transparency of financial results to interested observers. Please refer to the Company's 2012 year end Management's Discussion and Analysis for further details.
Key 2012 financial results were:
-- Total revenues for the year were $9.4 million compared to $7.4 million in 2011 which represents 27% growth over 2011. The increase in revenue over the prior year was mainly due to higher revenue from engineering services and plant sales.-- Gross margin for the year was $3.7 million, compared to $2.8 million in 2011.-- Adjusted EBITDA in 2012 was ($1.9) million compared to ($3.7) million in 2011 - a 49% improvement over 2011.-- Net loss for the year was $3.4 million, or $0.05 per share, compared to a loss of $5.1 million in 2011, or $0.07 per share - a 34% improvement.-- Cash used in operating activities, after changes in working capital, was $1.5 million compared to $2.5 million in 2011 - a 43% improvement year over year.-- Working capital at the end of 2012 was $7.4 million which included $7.5 million in cash and short-term investments.
OPERATIONS
BioteQ had three active water treatment operations contributing to revenue during the fourth quarter - plants in Arizona, Quebec, and China. BioteQ had concluded its water treatment operations at a fourth site in the Yukon in mid July. Combined, the plants treated 2.2 million cubic metres of water during the quarter, and removed over 288,000 pounds of metals from the environment, bringing total production for the 2012 year to over 10.6 million cubic metres of water treated and 2.5 million pounds of metal recovered.
The Bisbee, Arizona operation produced approximately 123,000 pounds of copper and treated 253,000 cubic metres of water during the quarter, bringing total production to 492,000 pounds of copper and 974,000 cubic metres of water treated for the year. Revenues for this operation are based on the sale of copper recovered.
The Dexing, China operation produced approximately 165,000 pounds of copper and treated 1.7 million cubic metres of water during the fourth quarter, bringing total production to 2 million pounds of copper and 8.7 million cubic metres of water treated for the year. The operation was inactive for a portion of Q4 due to routine annual plant maintenance. Revenues from this operation are based on the sale of copper recovered.
The Raglan, Quebec ChemSulphide® plant concluded its operating season in late November and treated 241,000 cubic metres of water during the fourth quarter. Year-to-date treatment volumes were 864,000 cubic metres, slightly lower than originally forecast, due to lower than expected precipitation levels over the treatment season. Revenues for this seasonal operation are based on fees for the volume of water treated.
