BQE Water (BQE) investor relations material

Business model and operating footprint

• Building recurring revenue through proprietary water-treatment solutions and plant operations for mining and metallurgy; 32 plants built, with four technologies commercially proven since 2003.

• Current annual output includes 1,700 tons of cyanide and 20 million cubic metres of water; 4,000 tons of metals recovered, mostly returned to miners.

• Operating model spans technical services, design, construction and plant operations, using site-level learning to improve performance as ore bodies and water conditions change.

• 33% of revenue is recurring; management cited recurring revenue up sixfold over five years and described operations as a growing part of the business.

Technologies and market demand

• SART recycles cyanide and recovers soluble metals; management said the process recycles ~85% of soluble metals passing through cyanide and has participated in ~80% of projects built in the field.

• Selen-IX is positioned as the only commercially available non-biological selenium treatment; SART and Detox demand has accelerated amid stronger gold prices and interest in gold projects.

• Mining demand for clean water is supported by regulatory enforcement, social acceptance and sustainability requirements; management emphasized tailored solutions over cookie-cutter plants.

• Nitrogen treatment is a potential future innovation area; research is conducted alongside clients who contribute funding, and development may take years.

Financial profile and growth plans

• A typical project was described as generating CAD 4 million before construction and CAD 25 million over operations if it runs for more than 15 years; operating contracts are generally signed for three to five years.

• Adjusted EBITDA to GAAP revenue was cited at 27%; five-year growth figures included 36% working-capital CAGR, 25% income growth and 15% EBITDA growth.

• Management said recurring revenue increased sixfold, market capitalization fourfold and working capital sevenfold over five years; it also aims to fill the CAD 500 million to CAD 1 billion market gap through organic growth or M&A.

• Workforce grew 25% in 2026, and management expects workload to require further staffing growth in 2027; current demand exceeds the workload previously anticipated.

• First M&A activity is in aquatic toxicity, intended to add early-stage water diagnostics, create operational leads and support a future aquatic-toxicity guarantee; further M&A is under consideration.