BQE Water Reports Audited Year End 2025 Results

• Event: Audited Year End 2025 Results released on April 23, 2026.
• Financials: GAAP revenue surged 107% to $35.5 million; Net income increased 68% to $8.1 million.
• Margins: Gross margin expanded to $15.3 million (up 81%); Net margin reached 23%.
• Balance Sheet: Cash position grew 61% to $19.0 million; Working capital up 70% to $21.4 million.
• Operations: Key milestones include emergency treatment at Eagle Mine, Selen-IX commissioning at Wharf Mine, and a new 3-year contract at Nunavik Nickel.
• Outlook: Management cites secured multiyear contracts (including the 20-year Britannia Mine agreement) as drivers for continued growth in 2026.

• Validation of Strategy: The results confirm that the strategic pivot toward long-term operations and maintenance contracts (e.g., Britannia, Nunavik) is translating into tangible revenue growth rather than just pipeline announcements.
• Earnings Quality: A net margin of 23% on $35.5 million revenue indicates high operational efficiency and pricing power in niche water treatment technologies like Selen-IX™ and SART.
• Expectation vs. Reality: While the Britannia contract was announced in December 2025, the full-year revenue doubling (107%) exceeds typical growth trajectories for established service firms, suggesting successful execution across multiple projects simultaneously.
• Risk Mitigation: The increase in cash reserves ($19M) and working capital reduces immediate dilution risk, contrasting with many junior miners or tech firms that burn cash during expansion phases.

• Overview: BQE Water Inc. provides water treatment solutions specifically for the mining industry, focusing on heavy metal removal, selenium reduction, and acid mine drainage management.
• Flagship Technology: Selen-IX™ (Selenium Removal) and SART (Sulfidization, Acidification, Re-precipitation, and Treatment). These are proprietary technologies allowing compliance without dilution.
• Key Projects:
  • Britannia Mine (BC): 20-year O&M contract (largest in company history).
  • Wharf Mine (SD): Selen-IX™ plant commissioned October 2025.
  • Eagle Gold Mine (Yukon): Emergency treatment completed; long-term design selected.