By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, May 22, 2013

Wastewater is a big concern in the mining and energy sectors. It is the biggest output every day from the oil and gas industry, and not oil and gas as one might think. Regulations are in place to make sure that Companies dispose properly of the more than 60 million barrels of high-salt, polluted water that is brought to the surface every day, but it’s a lofty expense. Further, we have heard stories about how the practice of re-injecting the water into the ground to maintain pressures or below freshwater pools or other disposal methods is not a perfect science. Treating the water with modern technologies is the most environmentally friendly solution. Those technologies have been slowly creeping their way into the industry and likely will continue to until they are the rule, not the exception.

Vancouver’s BioteQ Environmental Technologies, Inc. (TSX:BQE) is an upstart with a $10 million market capitalization focused on industrial water treatment in the mining and energy sectors. While the company doesn’t generate tremendous revenue ($1.94 million in the first three months of 2013) and still operates at a net loss ($1.0 million during Q1), it has a handful of household names spread across the globe in its client portfolio that support brand recognition in the industry and could lead to more substantial revenue – and profitability – in the future.

In 2012, BioteQ treated 10.6 billion liters of wastewater (up 11.6% from 2011) and recovered 2.5 million pounds of metals from the environment (up 19% from 2011). Yearly revenue improved to $9.42 million, up 27 percent from $7.41 million in 2011.

Xstrata PLC (OTCQX:XSRAY), Jiangxi Copper (OTCQX:JIXAY), Freeport McMoran Copper & Gold (NYSE:FCX), Capstone Mining (TSX:CS), and the US Environmental Protection Agency are all customers of BioteQ.

After Tuesday’s closing bell, BioteQ added another big name to that list. The company said that it has secured a contract with Teck Resources Ltd. (TSX:TCK.B) to conduct pilot scale testing of its new Selen-IX™ technology for selenium removal. The company estimates the contract to be valued at approximately CDN$900,000 ($875,000 US), although that amount could vary depending on requirements for testing.

Per the agreement, BioteQ will build and deploy a pilot scale plant for on-site field testing while retaining ownership of the plant and all associated intellectual property.

The work is expected to be completed towards the end of the year.

"The continuing development and deployment of [the Selen-IX] technology leverages BioteQ's existing technology platforms and capabilities. Selenium removal represents an expansion to our existing product portfolio and opens up new, significant market opportunities for the Company," said Jonathan Wilkinson, chief executive at BioteQ.

Technically speaking, BQE is making a double bottom pattern with support at an all-time low of 12.5 cents and more support at 13 cents. Shares closed ahead in Tuesday trading by 15.4 percent at 15 cents on an uptick in volume before the news of the Teck deal hit the wires at 5:00 PM Eastern Time. Technical and fundamental traders alike may be starting to notice what BioteQ brings to the table and the small market cap that it is still carrying. Proper due diligence is, as always, encouraged.

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