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Globe and Mail
7 days ago
- Business
- Globe and Mail
BQE Water Reports Q1 2025 Results
VANCOUVER, BC , May 29, 2025 /CNW/ - BQE Water Inc. (TSXV: BQE), a leader in the treatment and management of mine impacted waters, is pleased to release its interim consolidated financial results for the three months ended March 31, 2025 . "In Q1 2025, we substantially grew our technical services revenues over the same period last year. We provided temporary water treatment operations for the emergency response at Eagle Gold Mine and we advanced several projects into the plant design and construction phase," said David Kratochvil , President & CEO of BQE Water. "We expect strong results over the next two quarters as we continue to make progress and complete these large projects, with potential for generating new recurring revenue from these projects." FINANCIAL HIGHLIGHTS Record revenues under GAAP and Proportional Revenues of $7.4 million and $7.9 million in Q1 2025 respectively, compared $2.5 million and $3.4 million in Q1 2024. Historical high in technical services revenue for a 3-month period of $5.5 million in Q1 2025 compared to $719,000 in Q1 2024. Gross margin of $3.2 million in Q1 2025 compared to $1.1 million in Q1 2024, a $2.1 million increase. Net income of $1.7 million in Q1 2025 compared to a loss of $486,000 in Q1 2024. Earnings per share of $1.34 in Q1 2025 compared to a loss per share of $0.39 in Q1 2024. Adjusted EBITDA of $1.9 million in Q1 2025 compared to a loss of $121,000 in Q1 2024. Working capital of $14.4 million at March 31, 2025 , compared to $12.6 million at December 31, 2024 , a 14% increase. Selected financial results are as follows: (in '000s) 3 months ended Mar. 31 2025 2024 Revenue from operational services 1,962 1,789 Revenue from technical services 5,484 719 Revenue from joint ventures in China 502 902 Proportional Revenues 7,948 3,410 OPERATIONAL SERVICES HIGHLIGHTS Our operational services consist of the operation or technical supervision of water treatment plants, which generate recurring revenues from three main sources: sales of recovered metals, water treatment fees and operations support fees. The Company's operations by source of revenue are as follows: Operations Location Revenue Source JCC-BQE Joint Venture Jiangxi province, China Sales of recovered metals MWT-BQE Joint Venture Shandong province, China Sales of recovered metals Raglan Mine for Glencore Northern Québec, Canada Water treatment fees Zhongkuang Metallurgical Facilities for MWT Shandong province, China Operations support fees Zhaojin Metallurgical Facilities for MWT Shandong province, China Operations support fees Power utility ash pond for WesTech Eastern USA Water treatment fees Base metal project for a metal producer Southwestern USA Water treatment fees JCC-BQE Joint Venture Operations Our 50/50 joint venture with partner Jiangxi Copper Company ("JCC") operates three water treatment plants at Dexing Mine and at Yinshan Mine in Jiangxi province of China . The volume of water treated, and metals recovered by the plants fluctuate seasonally depending on precipitation levels in the region. The operating results for Q1 2025 are as follows: (in '000s) 3 months ended Mar. 31 2025 2024 Water treated (cubic metres) 1,915 4,203 Copper recovered (pounds) 148 380 Zinc recovered (pounds) 177 - In Q1 2025, all three plants met mechanical availability and process performance set by the Company. The volume of water treated decreased by 55% and the mass of copper recovered decreased by 61% when compared to Q1 2024. Starting Q2 2024, the Yinshan Mine began to consistently recover zinc. Such changes in water volume and metal grade in feed water from period to period are largely the result of environmental conditions beyond the control of the joint venture. MWT-BQE Joint Venture Operations Our 20% share of MWT-BQE is with our 80% partner Beijing MWT Water Treatment Project Limited Company ("MWT") and together we operate a water treatment plant at a smelter in Shandong province of China . MWT-BQE generates revenues from the sale of zinc and copper recovered from smelter wastewater. Operating results for Q1 2025 are as follows: (in '000s) 3 months ended Mar. 31 2025 2024 Zinc recovered (pounds) 13 31 Copper recovered (pounds) 63 5 The smelter periodically operated its production lines with ores from different sources which led to varying concentrations of zinc and copper in the feed and a fluctuation in the volume of wastewater treated by the plant. The joint venture has no control over the composition and volume of feed that flows into the plant. In Q1 2025, the plant continued to operate intermittently to reduce costs, as the value of zinc and copper in the feed was lower than the recovery cost of the metals. BQE Water Operations The number of operating days contributing to water treatment or support fees for three months ended March 31, 2025 are as follows: (in days) 3 months ended Mar. 31 2025 2024 Raglan Mine water treatment plants - - Zhongkuang SART plant 90 91 Zhaojin SART plant 85 91 Water treatment plant in Eastern USA 64 67 Water treatment plant in Southwest USA 90 91 The volume of water treated by geographic location for the three months ended March 31, 2025 are as follows: (in '000s cubic metres) 3 months ended Mar. 31 2025 2024 Raglan Mine water treatment plants - - SART plants in China 109 136 Water treatment plants in USA 749 201 The Company, with our Inuit partner Nuvumiut Development, operates four water treatment plants at Raglan Mine for Glencore Canada Corporation ("Glencore"). In the first quarter, the plants at Raglan Mine were shut down as water stored in the outdoor reservoirs was frozen. Consequently, no water was treated and no revenue was generated in Q1 2025 from the Raglan Mine plants. We expect to begin water treatment in June 2025 . In 2021, we began operations of the Zhongkuang SART plant and the Zhaojin SART plant at metallurgical facilities in China . Both plants have been under our technical supervision since the start of full production. Both SART plants operated fully throughout Q1 2025 without disruption. In 2022, we began operations of a treatment plant utilizing our Selen-IX™ process to remove selenium from ash pond water for WesTech Engineering ("WesTech"). In Q1 2025, our team continued at site providing water treatment services with the Selen-IX™ circuit to manage the presence of selenium in the feed. In January 2022 , we completed the commissioning of a treatment plant utilizing a combination of nanofiltration and our proprietary selenium electro-reduction process for the simultaneous removal of selenium and sulphate from mine water for a base metal project in the American Southwest. In August 2023 , our team completed the performance test milestone for a 2nd newly constructed selenium removal water treatment plant which entered the operation phase. In Q1 2025, we continued to provide water treatment operation services for two water treatment plants in the American Southwest. TECHNICAL SERVICES HIGHLIGHTS BQE Water's technical expertise and IP are applicable globally across broad areas of water management. Highlights of some of our technical services and technical innovation projects during Q1 2025 are summarized below. Trusted Advisory Services (Water Management and Water Studies) Initiated the construction of a water treatment facility to support the clean-up of legacy tailings site in the Yukon . Continued to provide ongoing advisory and water treatment services in response to the environmental emergency caused by a heap leach failure at the Eagle Gold Mine in the Yukon . Continued plant operations support and engineering services to an actively producing mine requiring improvements to their existing treatment in the Yukon. Continued with engineering services for the design, procurement, and construction of another selenium removal plant using BQE's Selen-IX™ to meet end-of-pipe limit of less than 2 parts per billion at a gold mine in Central US. Continued assisting an integrated lead smelter-recycling facility in Eastern Canada with completing upgrades to existing treatment system and implementation of new sulphate removal stage to a discharge limit less than 1,500 mg/L and initiated operations support for the newly upgraded facility. Continued selenium stability test program simulating conditions in semi-passive treatment systems to support holistic risk assessment of selenium treatment options for a client based in BC. Cyanide Management (Destruction and Recycle) Implemented cyanide destruction to meet 25 ppb residual cyanide at the end-of-pipe at the Eagle Gold Mine in the Yukon . Continued to provide plant engineering design services to a US project requiring the end-of-pipe cyanide level below 8 ppb. Continued to provide engineering services for Shandong Gold to support the construction of the third SART plant in China . COMMENTARY AND OUTLOOK We are pleased to report our best ever first quarter results in Q1 2025, setting records for GAAP revenue, Proportional Revenue, net income, and Adjusted EBITDA. Highlights of the results are summarized as follows: Recurring revenue from water treatment operations was marginally higher than in Q1 2024 as no new operations were added to the existing portfolio of operating plants. Non-recurring revenue from technical services increased substantially compared to Q1 2024 due to several large projects in various phases of plant design, construction, and temporary operations, including but not limited to: Design and construction of the Valley Tailings plant in the Yukon ; Advisory and water treatment services for temporary emergency response treatment at Eagle Gold Mine; Detailed design of a sulphate removal plant that will subsequently go into construction in BC; and Detailed design of cyanide removal plant in the US. Recurring revenue from our China joint venture fell when compared to Q1 2024 due to a lower quantity of recovered metals caused primarily by a decline in the volume of water treated. In Q1 2025, the Company renewed two operating contracts in the US that were expiring in the next four to twelve months. Although the scope of our operating services under the renewal was reduced, the term was extended for five years with an extension option for an additional two years. With respect to our outlook for the remainder of 2025, we continue to have good visibility and certainty over existing operations contracts and certain large technical services contracts. As such, we expect strong results over the next two quarters based on the following: Commissioning of a third SART plant in China followed by the start of new recurring operations services; Commissioning of the fourth Selen-IX™ plant in the US followed by the start of ongoing operations support services; Pilot demonstration of Selen-IX™ at a mine in the US; Construction and commissioning of the Valley Tailings treatment plant; and Several feasibility, pre-feasibility, and pilot demonstration projects in Chile and Brazil . The anticipated strength in our technical services revenue is expected to mitigate the Company's exposure to geopolitical risks associated with China . In addition, the increase in our technical services revenue is expected to more than offset the reduction in operations revenue due to the two US contract renewals. Looking ahead, some of the large projects listed above have the potential to start generating new recurring revenue upon completion. We are navigating uncertain times that present both new risks and new opportunities. Short and long-term headwinds for our business include a global recession, weak inflows of capital into the mining sector, and geopolitical risks related to China . We remain focused on fiscal prudence, while continuing to actively explore opportunities to accelerate our growth. Our strong balance sheet positions us well on both fronts. SELECTED FINANCIAL INFORMATION For a complete set of Financial Statements and MD&A, please go to (in $'000 except for per share amounts) 3 months ended Mar. 31 2025 2024 $ $ Revenues 7,446 2,508 Operating expenses (excluding depreciation) (4,240) (1,403) Gross margin 3,206 1,105 Share of income from joint ventures 61 332 General and administration (766) (700) Sales and development (676) (924) Share-based payments (83) (273) Depreciation and amortization (127) (101) Income (loss) from operations and joint ventures 1,615 (561) Other income, net 108 87 Income tax recovery (expense) 3 (12) Net income (loss) for the period 1,726 (486) Income (loss) per share (basic) 1.34 (0.39) Income (loss) per share (diluted) 1.33 (0.38) Proportional Revenues (Non-GAAP measures) 7,948 3,410 Adjusted EBITDA (Non-GAAP measures) 1,877 (121) Comprehensive income (loss) 1,735 (443) at Mar. 31 at Dec. 31 2025 2024 $ $ Cash and cash equivalents 11,091 11,771 Working capital 14,357 12,593 Total assets 28,883 27,093 Total non-current liabilities 1,973 1,842 Shareholders' equity 22,430 20,529 About BQE Water BQE Water is a service provider specializing in water treatment and management for metals mining, smelting and refining. We are helping to transform the way the industry thinks about water in the context of natural resource projects by offering services and expertise which enables more sustainable water management practices and improved overall project performance at reduced risks. BQE Water invests in innovation and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world for organizations including Glencore, Jiangxi Copper, Freeport-McMoRan and the US EPA. BQE Water is headquartered in Vancouver, Canada and trades on the TSX Venture Exchange under the symbol BQE. Visit for more information. The Toronto Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. 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, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's MD&A for the year ended December 31, 2024 ). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.
Cision Canada
7 days ago
- Business
- Cision Canada
BQE Water Reports Q1 2025 Results
VANCOUVER, BC, May 29, 2025 /CNW/ - BQE Water Inc. (TSXV: BQE), a leader in the treatment and management of mine impacted waters, is pleased to release its interim consolidated financial results for the three months ended March 31, 2025. "In Q1 2025, we substantially grew our technical services revenues over the same period last year. We provided temporary water treatment operations for the emergency response at Eagle Gold Mine and we advanced several projects into the plant design and construction phase," said David Kratochvil, President & CEO of BQE Water. "We expect strong results over the next two quarters as we continue to make progress and complete these large projects, with potential for generating new recurring revenue from these projects." FINANCIAL HIGHLIGHTS Record revenues under GAAP and Proportional Revenues of $7.4 million and $7.9 million in Q1 2025 respectively, compared $2.5 million and $3.4 million in Q1 2024. Historical high in technical services revenue for a 3-month period of $5.5 million in Q1 2025 compared to $719,000 in Q1 2024. Gross margin of $3.2 million in Q1 2025 compared to $1.1 million in Q1 2024, a $2.1 million increase. Net income of $1.7 million in Q1 2025 compared to a loss of $486,000 in Q1 2024. Earnings per share of $1.34 in Q1 2025 compared to a loss per share of $0.39 in Q1 2024. Adjusted EBITDA of $1.9 million in Q1 2025 compared to a loss of $121,000 in Q1 2024. Working capital of $14.4 million at March 31, 2025, compared to $12.6 million at December 31, 2024, a 14% increase. Selected financial results are as follows: OPERATIONAL SERVICES HIGHLIGHTS Our operational services consist of the operation or technical supervision of water treatment plants, which generate recurring revenues from three main sources: sales of recovered metals, water treatment fees and operations support fees. The Company's operations by source of revenue are as follows: JCC-BQE Joint Venture Operations Our 50/50 joint venture with partner Jiangxi Copper Company ("JCC") operates three water treatment plants at Dexing Mine and at Yinshan Mine in Jiangxi province of China. The volume of water treated, and metals recovered by the plants fluctuate seasonally depending on precipitation levels in the region. The operating results for Q1 2025 are as follows: In Q1 2025, all three plants met mechanical availability and process performance set by the Company. The volume of water treated decreased by 55% and the mass of copper recovered decreased by 61% when compared to Q1 2024. Starting Q2 2024, the Yinshan Mine began to consistently recover zinc. Such changes in water volume and metal grade in feed water from period to period are largely the result of environmental conditions beyond the control of the joint venture. MWT-BQE Joint Venture Operations Our 20% share of MWT-BQE is with our 80% partner Beijing MWT Water Treatment Project Limited Company ("MWT") and together we operate a water treatment plant at a smelter in Shandong province of China. MWT-BQE generates revenues from the sale of zinc and copper recovered from smelter wastewater. Operating results for Q1 2025 are as follows: The smelter periodically operated its production lines with ores from different sources which led to varying concentrations of zinc and copper in the feed and a fluctuation in the volume of wastewater treated by the plant. The joint venture has no control over the composition and volume of feed that flows into the plant. In Q1 2025, the plant continued to operate intermittently to reduce costs, as the value of zinc and copper in the feed was lower than the recovery cost of the metals. BQE Water Operations The number of operating days contributing to water treatment or support fees for three months ended March 31, 2025 are as follows: The volume of water treated by geographic location for the three months ended March 31, 2025 are as follows: The Company, with our Inuit partner Nuvumiut Development, operates four water treatment plants at Raglan Mine for Glencore Canada Corporation ("Glencore"). In the first quarter, the plants at Raglan Mine were shut down as water stored in the outdoor reservoirs was frozen. Consequently, no water was treated and no revenue was generated in Q1 2025 from the Raglan Mine plants. We expect to begin water treatment in June 2025. In 2021, we began operations of the Zhongkuang SART plant and the Zhaojin SART plant at metallurgical facilities in China. Both plants have been under our technical supervision since the start of full production. Both SART plants operated fully throughout Q1 2025 without disruption. In 2022, we began operations of a treatment plant utilizing our Selen-IX™ process to remove selenium from ash pond water for WesTech Engineering ("WesTech"). In Q1 2025, our team continued at site providing water treatment services with the Selen-IX™ circuit to manage the presence of selenium in the feed. In January 2022, we completed the commissioning of a treatment plant utilizing a combination of nanofiltration and our proprietary selenium electro-reduction process for the simultaneous removal of selenium and sulphate from mine water for a base metal project in the American Southwest. In August 2023, our team completed the performance test milestone for a 2nd newly constructed selenium removal water treatment plant which entered the operation phase. In Q1 2025, we continued to provide water treatment operation services for two water treatment plants in the American Southwest. TECHNICAL SERVICES HIGHLIGHTS BQE Water's technical expertise and IP are applicable globally across broad areas of water management. Highlights of some of our technical services and technical innovation projects during Q1 2025 are summarized below. Trusted Advisory Services (Water Management and Water Studies) Initiated the construction of a water treatment facility to support the clean-up of legacy tailings site in the Yukon. Continued to provide ongoing advisory and water treatment services in response to the environmental emergency caused by a heap leach failure at the Eagle Gold Mine in the Yukon. Continued plant operations support and engineering services to an actively producing mine requiring improvements to their existing treatment in the Yukon. Continued with engineering services for the design, procurement, and construction of another selenium removal plant using BQE's Selen-IX™ to meet end-of-pipe limit of less than 2 parts per billion at a gold mine in Central US. Continued assisting an integrated lead smelter-recycling facility in Eastern Canada with completing upgrades to existing treatment system and implementation of new sulphate removal stage to a discharge limit less than 1,500 mg/L and initiated operations support for the newly upgraded facility. Continued selenium stability test program simulating conditions in semi-passive treatment systems to support holistic risk assessment of selenium treatment options for a client based in BC. Cyanide Management (Destruction and Recycle) Implemented cyanide destruction to meet 25 ppb residual cyanide at the end-of-pipe at the Eagle Gold Mine in the Yukon. Continued to provide plant engineering design services to a US project requiring the end-of-pipe cyanide level below 8 ppb. Continued to provide engineering services for Shandong Gold to support the construction of the third SART plant in China. COMMENTARY AND OUTLOOK We are pleased to report our best ever first quarter results in Q1 2025, setting records for GAAP revenue, Proportional Revenue, net income, and Adjusted EBITDA. Highlights of the results are summarized as follows: Recurring revenue from water treatment operations was marginally higher than in Q1 2024 as no new operations were added to the existing portfolio of operating plants. Non-recurring revenue from technical services increased substantially compared to Q1 2024 due to several large projects in various phases of plant design, construction, and temporary operations, including but not limited to: Design and construction of the Valley Tailings plant in the Yukon; Advisory and water treatment services for temporary emergency response treatment at Eagle Gold Mine; Detailed design of a sulphate removal plant that will subsequently go into construction in BC; and Detailed design of cyanide removal plant in the US. Recurring revenue from our China joint venture fell when compared to Q1 2024 due to a lower quantity of recovered metals caused primarily by a decline in the volume of water treated. In Q1 2025, the Company renewed two operating contracts in the US that were expiring in the next four to twelve months. Although the scope of our operating services under the renewal was reduced, the term was extended for five years with an extension option for an additional two years. With respect to our outlook for the remainder of 2025, we continue to have good visibility and certainty over existing operations contracts and certain large technical services contracts. As such, we expect strong results over the next two quarters based on the following: Commissioning of a third SART plant in China followed by the start of new recurring operations services; Commissioning of the fourth Selen-IX™ plant in the US followed by the start of ongoing operations support services; Pilot demonstration of Selen-IX™ at a mine in the US; Construction and commissioning of the Valley Tailings treatment plant; and Several feasibility, pre-feasibility, and pilot demonstration projects in Chile and Brazil. The anticipated strength in our technical services revenue is expected to mitigate the Company's exposure to geopolitical risks associated with China. In addition, the increase in our technical services revenue is expected to more than offset the reduction in operations revenue due to the two US contract renewals. Looking ahead, some of the large projects listed above have the potential to start generating new recurring revenue upon completion. We are navigating uncertain times that present both new risks and new opportunities. Short and long-term headwinds for our business include a global recession, weak inflows of capital into the mining sector, and geopolitical risks related to China. We remain focused on fiscal prudence, while continuing to actively explore opportunities to accelerate our growth. Our strong balance sheet positions us well on both fronts. For a complete set of Financial Statements and MD&A, please go to About BQE Water BQE Water is a service provider specializing in water treatment and management for metals mining, smelting and refining. We are helping to transform the way the industry thinks about water in the context of natural resource projects by offering services and expertise which enables more sustainable water management practices and improved overall project performance at reduced risks. BQE Water invests in innovation and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world for organizations including Glencore, Jiangxi Copper, Freeport-McMoRan and the US EPA. BQE Water is headquartered in Vancouver, Canada and trades on the TSX Venture Exchange under the symbol BQE. Visit for more information. The Toronto Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. 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, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's MD&A for the year ended December 31, 2024). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law. SOURCE BQE Water Inc.
Cision Canada
24-04-2025
- Business
- Cision Canada
BQE Water Reports Audited Year End 2024 Results
VANCOUVER, BC, April 24, 2025 /CNW/ - BQE Water Inc. (TSXV: BQE), a leader in the treatment and management of mine impacted waters, is pleased to release its audited consolidated financial results for the year ended December 31, 2024. "Our 2024 financial results delivered another set of new highs in several key metrics including year-end Proportional Revenue, net income, Adjusted EBITDA, and working capital," said David Kratochvil, President & CEO of BQE Water. "73% of our Proportional Revenue in 2024 was recurring as we increased water treatment operation revenues to $10.5 million and our share of joint venture revenue from the sale of recovered metals to $7.6 million. Our focus in growing recurring revenues from water treatment fees, our dedicated and experience BQE team, and our strong balance sheet position the Company to manage potential impacts from near-term economic uncertainty, and to continue to deliver long-term shareholder value." FINANCIAL HIGHLIGHTS Revenues of $17.2 million in 2024, a decrease of 5% or $959,000 compared to 2023. Achieved record Proportional Revenues of $24.8 million in 2024, a $2.1 million or 9% increase from 2023. Net income and earnings per share for the year were $4.8 million and $3.78, compared to $2.6 million and $2.12 in the prior year, representing increases of 81% and 78%, respectively. Adjusted EBITDA was $5.6 million compared to $4.6 million the year prior, a 20% increase. Increased working capital by $2.1 million, or 20% year-over-year, to $12.6 million as at December 31, 2024. Grew net cash and cash equivalents by $3.8 million, or 48% year-over-year, to $11.8 million as of December 31, 2024. Selected financial results for the 3 and 12 months ended December 31, 2024 are as follows: Selected financial results for the last 5 years are as follows: OPERATIONAL SERVICES HIGHLIGHTS Our operational services consist of the operation or technical supervision of water treatment plants, which generate recurring revenues from three main sources: sales of recovered metals, water treatment fees and operations support fees. The Company's operations by source of revenue are as follows: JCC-BQE Joint Venture Operations Our 50/50 joint venture with partner Jiangxi Copper Company ("JCC") operates three water treatment plants at Dexing Mine and at Yinshan Mine in Jiangxi province of China. The volume of water treated, and metals recovered by the plants fluctuate seasonally depending on precipitation levels in the region. The operating results for the 12 months ended December 31, 2024 and 2023 are as follows: During 2024, all three plants met mechanical availability and process performance set by the Company. The volume of water treated increased by 12% year-over-year and the mass of copper recovered increased by 37%. Starting in 2024, the Yinshan water treatment plant began to recover zinc as part of their normal operations. Such changes in water volume and metal grade in feed water from period to period are largely the result of environmental conditions beyond the control of the joint venture. MWT-BQE Joint Venture Operations Our 20% share of MWT-BQE is with our 80% partner Beijing MWT Water Treatment Project Limited Company ("MWT") and together we operate a water treatment plant at a smelter in Shandong province of China. MWT-BQE generates revenues from the sale of zinc and copper recovered from smelter wastewater. The operating results for the 12 months ended December 31, 2024 and 2023 are as follows: (in '000s) 2024 2023 Water treated (cubic metres) 296 285 Zinc recovered (pounds) 96 162 Copper recovered (pounds) 50 49 Copper recovery remained consistent with the previous year, while the mass of zinc decreased by 41%. The smelter periodically operated its production lines with ores from different sources which led to varying concentrations of zinc and copper in the feed and a fluctuation in the volume of wastewater treated by the plant. The joint venture has no control over the composition and volume of feed that flows into the plant. In 2024, the plant operated intermittently to reduce costs, as the value of zinc and copper in the feed was lower than the recovery cost of the metals. BQE Water Operations The number of operating days contributing to water treatment or support fees for the 12 months ended December 31, 2024 and 2023 are as follows: (in days) 2024 2023 Raglan Mine water treatment plants 202 206 Minto Mine water treatment plant 96 312 Zhongkuang SART plant 356 364 Zhaojin SART plant 358 354 Water treatment plant in Eastern USA 264 238 Water treatment plants in Southwest USA 365 363 The volume of water treated by geographic location for the 12 months ended December 31, 2024 and 2023 are as follows: (in '000s cubic metres) 2024 2023 Raglan Mine water treatment plants 2,075 2,218 Minto Mine water treatment plant 435 938 SART plants in China 652 602 Water treatment plants in USA 1,566 168 The Company, with our Inuit partner Nuvumiut Development, operates four water treatment plants at Raglan Mine for Glencore Canada Corporation ("Glencore"). From May to December 2024, we mobilized our operations team for the 21st operating season at the mine. The total volume of water treated across all four plants at Raglan Mine in 2024 decreased by 6% compared to 2023. Since 2022, the Company is contracted with the Yukon Government to treat and discharge clean water at the Minto Mine in the Yukon in support of environmental protection. In 2024, our operating season was shortened as we demobilized our team in late August to assist with an environmental emergency caused by a heap leach failure at the Eagle Gold Mine in the Yukon. In 2021, we began operations of the Zhongkuang SART (sulphidication-acidification-recycling-thickening) plant and the Zhaojin SART plant at metallurgical facilities in China. Both plants have been under our technical supervision since the start of full production. Both SART plants operated fully throughout 2024 without disruption. In 2022, we began operations of a treatment plant utilizing our Selen-IX™ process in Eastern USA to remove selenium from ash pond water for WesTech Engineering ("WesTech"). In 2024, our operations team continued providing water treatment services with the Selen-IX™ circuit to manage the presence of selenium in the feed. In 2022, we completed the commissioning of a treatment plant utilizing a combination of nanofiltration and our proprietary selenium electro-reduction process for the simultaneous removal of selenium and sulphate from mine water for a base metal project in the American Southwest. In August 2023, our team completed the performance test milestone for a second newly constructed selenium removal water treatment plant which entered the operation phase. In 2024, we continued to provide water treatment operation services for both Selen-IX™ water treatment plants in the American Southwest. TECHNICAL SERVICES HIGHLIGHTS BQE Water's technical expertise and IP are applicable globally across broad areas of water management. Highlights of some of our technical services and technical innovation projects during 2024 are summarized below. Trusted Advisory Services (Water Management and Water Studies) Completed the engineering design and began procurement for a water treatment facility to support the clean-up of legacy tailings site in the Yukon. Provided ongoing advisory and water treatment services in response to the environmental emergency caused by a heap leach failure at the Eagle Gold Mine in the Yukon. Completed lab testing and preliminary engineering for selenium removal plant at a new uranium project in development in Canada. Continued plant operations support and engineering services to an actively producing mine requiring improvements to their existing treatment in the Yukon. Completed a field pilot campaign for thiosalts removal at a mine in Eastern Canada. Continued with engineering services for the design, procurement, and construction of another selenium removal plant using BQE's Selen-IX™ to meet end-of-pipe limit of less than 2 parts per billion at a gold mine in Central US. Assisted an integrated lead smelter-recycling facility in Eastern Canada with completing upgrades to existing treatment system and implementation of new sulphate removal stage to a discharge limit less than 1,500 mg/L and initiated operations support for the newly upgraded facility. Completed the plant automation scope for a new water treatment plant for water recycle at a gold mine in Mexico. Continued selenium stability test program simulating conditions in semi-passive treatment systems to support holistic risk assessment of selenium treatment options for a client based in BC. Cyanide Management (Destruction and Recycle) Continued to provide on-site engineering and laboratory services for cyanide removal from impacted water at the Eagle Gold Mine in the Yukon and proceeded with a chosen method that best integrates into the emergency temporary water treatment at site that targets less than 25 ppb residual cyanide at the end-of-pipe. Completed the engineering design for a cyanide removal facility requiring the end-of-pipe cyanide concentration below 8 ppb in the US. Continued to provide engineering services for Shandong Gold to support the construction of the third SART plant in China. COMMENTARY AND OUTLOOK Our 2024 financial results delivered another set of new highs in several key metrics including year-end Proportional Revenue, net income, Adjusted EBITDA, and working capital. Overall, BQE Water's financial performance in 2024 reflects the success of our long-term business strategy, including growing our recurring revenue from water treatment plant operations. The Company's performance can be summarized as follows: Proportional annual recurring revenue of $18.1 million achieved a record high, with $10.5 million in revenue from operating treatment fees and $7.6 million from our proportional share of joint venture revenue from the sale of recovered metals. Operating fees reached a new record high, while sales of recovered metals returned to their long-term mean following a drop in 2023. Non-recurring technical services revenue decreased by $3.2 million or 32% compared to 2023. The first point demonstrates the progress we have made in executing our business strategy and confirms the growing importance of recurring revenue from water treatment fees in terms of the overall financial performance of the Company. It also highlights the upside potential from our exposure to copper and zinc prices associated with metals recovered from the joint ventures. The second point reaffirms that our technical services revenue is lumpy. This lumpiness stems from the unpredictable timing and progression of mining projects in general, as well as the wide range of technical services contract values – from $30,000 to $3.0 million depending on the stage of the project. Smaller contracts are associated with the earliest stages of a mining project. As the project advances, contract values typically increase, culminating in plant commissioning and ultimately new operating contracts. While one or two larger short-term technical services contracts can boost our fees in any given period, they can also create a temporary drop in fees in subsequent periods. This was the situation in the first half of 2024 when we initiated work on multiple new early-stage projects while certain larger contracts had been completed or delayed. Earning lower fees from many small contracts remains very valuable for the Company's long-term strategic growth. Several items in the consolidated financial statements also deserve commentary and explanation: Recorded deferred revenue of $1.6 million under current liabilities on the statement of financial position, primarily representing milestone payments from a customer for a major project in the Yukon. This deferred revenue will be recognized as technical services revenue in 2025. Recognition of deferred income tax asset of $1.4 million under non-current assets, which also is included in the income tax recovery of $1.3 million. The deferred tax asset stems from the cumulative prior year losses carry forward in Canada available to offset future income taxes. The recognition of a deferred tax asset in 2024 is due to the Company's track record of taxable profits over the past few years and management's forecast of taxable profits in the future. We expect the deferred tax asset and matching income tax recovery may increase in the next few years before declining as the sum of the total accumulated losses are depleted. With respect to our outlook for 2025: We presently have good visibility and certainty over several larger technical services contracts and expect strong results in the first half of the year on this front; specifically, Installation and commissioning of the Valley Tailings plant in the Yukon. Commissioning of the fourth Selen-IX™ plant in the North Central region of the US. Detailed design of a sulphate removal plant that will subsequently go into construction in BC. Commissioning of the third SART plant for Shandong Gold in China. Our operating contract for Minto Mine ended in 2024 and we will not be operating the Minto plant in 2025. The Selkirk First Nation has become the key player in deciding next steps, but no clear direction has been set for the future of this project yet. Our partnership with the Selkirk Development Corporation remains strong and enables us to stay abreast of developments that may benefit from our involvement beyond 2025. In the meantime, our Minto operations team is fully utilized operating the emergency response water treatment system at the Eagle Gold Mine in the Yukon. This contract is set to conclude in June 2025 but may get extended depending on the water situation at site post spring freshet. We anticipate that the Eagle project will more than offset the revenue lossfrom Minto in 2025. We engaged with our customer in the Southwestern US on the renewal and restructuring of our operating contracts for two plants on the same site where the operating term was set to expire in 12 to 18 months, respectively. Our contract was renewed early for a 5-year term, at a lower monthly fee, as we reduced our scope from full operations to operations support. While this may reduce the Company's revenue from operations in the short term, we are pleased to gain certainty and longevity of recurring revenue from these operations over the coming five years. We expect to cover the shortfall in 2025 with revenue from other projects and then increase recurring revenue from new sites such as those undergoing commissioning in 2025. There has been no immediate impact from trade tariffs on BQE Water since we don't manufacture goods and/or generate profit by exporting or importing goods. Services have so far been exempted from tariffs. Nevertheless, tariffs may create economic uncertainty, and this may impact access to funding in the mining sector, which may delay capital projects. The drop in global trade may also produce a global economic recession. As a result, we may see a market slowdown, especially in some of our projects being developed by junior mining companies. In the medium to long term, the shift towards self-dependency may produce growth in the mining and metal extraction sector in Canada and the US. Announcements by various governments aimed at accelerating permitting and/or allocating direct government support for critical minerals projects as well as development of nuclear power generation capacity is an early sign of this. We live in uncertain times and despite our relatively positive outlook for 2025, we caution readers about the risks that may create headwinds for us and our business. These include geopolitical risks with China, weak inflows of capital into the mining sector, a global recession, and/or prolonged weakness in commodity prices. For these reasons, we remain focused on fiscal prudence and maintaining our working capital at a level that allows us to withstand exogenous impacts and even be positioned to take advantage of opportunities. Our strong balance sheet will allow us to navigate the economic uncertainties ahead. About BQE Water BQE Water is a service provider specializing in water treatment and management for metals mining, smelting and refining. We are helping to transform the way the industry thinks about water in the context of natural resource projects by offering services and expertise which enables more sustainable water management practices and improved overall project performance at reduced risks. BQE Water invests in innovation and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world for organizations including Glencore, Jiangxi Copper, Freeport-McMoRan and the US EPA. BQE Water is headquartered in Vancouver, Canada and trades on the TSX Venture Exchange under the symbol BQE. Visit for more information. The Toronto Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. 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, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's MD&A for the year ended December 31, 2024). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law. SOURCE BQE Water Inc.
