Thursday, December 14, 2006

Opportunity in BioteQ

This is not a biotechnology company, or perhaps I should see, I see it as a mining company and a sustainable technologies company. BioteQ (BQE.V, BTQNF) has developed a method to treat acid mine drainage water, producing clean water and salable metals in the process. The amount of metals extracted from the water more than covers the costs of building and operating the plant. The technology has been adopted or is being piloted by Phelps Dodge, Breakwater Resources, Inco, Placer Dome, Columbia Metals, Jiangxi Copper and Codelco. The US EPA approved the use of BioteQ's solution at a superfund site in Colorado.

This week, the company announced a definitive agreement with Jiangxi Copper, the largest copper producer in China. They will run a 50:50 JV venture to build and operate a plant currently under construction, with licensing terms negotiated for an additional five plants. The initial plant was designed to produce 1.5MM - 4.5MM pounds of copper/year. Operating costs are expected to be less than $0.60/pound.

The stock is now at an all-time high and looks like it is ready to make a move to a new level:

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