VANCOUVER, BC, Aug. 27, 2024 /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 and six months ending June 30, 2024.
"In Q2 2024, we continued to see year-over-year growth in both our share of revenue from our Chinese joint venture and from recurring operation revenues in Canada and in the US," said David Kratochvil, President & CEO of BQE Water. "Growing such recurring revenue streams remains a strategic priority for us as we expand through additional plant operations over time. While our technical services for the first half in 2024 decreased when compared to the same period in 2023, we expect it to catch up to 2023 levels over the remainder of the year as several new large projects are being initiated during Q3 2024."
FINANCIAL HIGHLIGHTS
Recorded Proportional and GAAP revenues of $6.1 million and $3.4 million in Q2 2024 respectively, compared to $5.7 million and $4.2 million in Q2 2023.
Gross margin of $1.6 million in Q2 2024 compared to $2.0 million in Q2 2023, a $417,000 or 21% decrease.
Net income of $560,000 in Q2 2024 compared to $615,000 in Q2 2023, a $55,000 or 9% decrease.
Adjusted EBITDA of $1.3 million in Q2 2024 compared to $1.5 million in Q2 2023, a $109,000 or 8% decrease.
Net cash and cash equivalents of $7.8 million at June 30, 2024, compared to $7.9 million at December 31, 2023.
Working capital of $9.9 million at June 30, 2024, compared to $10.5 million at December 31, 2023.
Selected financial results for the three and six months ended June 30, 2024 are as follows:
(in '000s)
3 months ended Jun. 30
6 months ended Jun. 30
2024
2023
2024
2023
Revenue from Operation Services
2,561
1,434
4,350
2,269
Revenue from Technical Services
856
2,752
1,574
4,608
Revenue from joint ventures in China
2,666
1,586
3,568
2,454
Proportional Revenues
6,083
5,772
9,492
9,331
Net income
560
615
70
274
Adjusted EBITDA
1,342
1,451
1,219
1,372
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
Minto Mine for Government of Yukon
Yukon, 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 the three and six months ended June 30, 2024 are as follows:
(in '000s)
3 months ended Jun. 30
6 months ended Jun. 30
2024
2023
2024
2023
Water treated (cubic metres)
8,249
7,538
12,452
10,437
Copper recovered (pounds)
919
725
1,299
1,016
Zinc recovered (pounds)
430
-
532
-
In Q2 2024, all three plants met mechanical availability and process performance targets set by the Company. The volume of water treated increased by 9% and the mass of copper recovered increased by 27% compared to Q2 2023. 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. In 2024, the Yinshan water treatment plant began to recover zinc as part of their normal operations and recovered 430,000 pounds in Q2 2024.
MWT-BQE Joint Venture Operations
Our 20% share in 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 the three and six months ended June 30, 2024 are as follows:
