DynaMotive Technologies Files Quarter 2000 Report and Comments on Highlights for the Quarter
15 August 2000
DynaMotive Technologies Files Quarter 2000 Report and Comments on Highlights for the Quarter
VANCOUVER, Aug. 15 /CNW-PRN/ - DynaMotive Technologies Corporation (OTCBB:
DYMTF) today filed its financial results for the second quarter of 2000.
President & CEO Andrew Kingston outlined highlights during the quarter.
``During second quarter 2000, DynaMotive made significant progress
towards achieving its annual corporate goals in both the BioOil and DynaPower
divisions,'' said Mr. Kingston. ``In accordance with the Company's strategic
development plan, we focused primarily on four areas: scale up of our BioOil
technology, fuel testing and market development, sustained marketing of
DynaPower metal cleaning systems and corporate restructuring to effectively
capitalize on potential markets for our technologies.
``The Company believes that in order to fully exploit commercial
opportunities, we must consolidate our technological advantage through the
scale up of the BioOil pilot plant which will further validate our economic
projections for commercial BioOil plants. Concurrently, DynaMotive must
position itself in key markets and develop local capabilities to effectively
deliver commercial contracts. The evolution of our corporate organization
reflects the strategic requirements for future growth. It provides for a
centralized corporate entity with responsibility for strategic and technical
development, finance and other administrative functions, while establishing
regional operating companies to provide local and specialized knowledge for
the effective development of regional markets.''
The second quarter performance reflects the Company's increased
activities. Revenues improved marginally on a quarter-to-quarter basis to
$201,681 compared with $185,526 in 1999. Use of cash in operating activities
on a quarter-to-quarter basis increased in line with the Company's projections
to $952,261 from $677,931 during second quarter of 1999. The loss for the
second quarter of 2000 increased marginally to $902,710 compared to $872,596
for the same period in 1999 as the Company expanded its staff in preparation
for construction of the new 10 tonne per day BioOil pilot plant.
The total assets of the Company as at June 30, 2000 increased to
$5,429,327 from $2,312,435 as at December 31, 1999, while cash and term
deposits for these dates increased to $3,053,877 compared with $223,769 and
liabilities decreased to $881,479 from $892,850. The increases in total assets
and cash and term deposits resulted primarily from a round of financing
concluded in first quarter of 2000.
Highlights from the 2nd Quarter 2000:
BioOil Plant Scale Up:
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10 Tonne Per Day Plant is On Time and On Budget. Work continued on the
new 10 tonne per day BioOil pilot plant including completion of detailed
design engineering and major equipment procurement. Construction of this plant
is scheduled for completion in late fall followed by commissioning by the end
of 2000. Engineering and technical staff have been added to the Technology
Group to provide the necessary skills to execute this project. The Company
continues to work closely with engineering and supply partners in preparation
for the roll out of commercial size plants.
BioOil Fuel Testing:
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Agreement with Genergy/Solar Turbines. In June 2000, the Company entered
into an agreement with Genergy plc of the UK to test DynaMotive's BioOil as a
clean fuel to generate ``green'' power in a Solar Taurus 60 unit gas turbine.
The tests are being conducted in San Diego, California by Solar Turbines, a
wholly owned subsidiary of Caterpillar Inc. and the world leader in industrial
turbines in the 1-15 megawatt (MW) capacity. This test program further
underscores the interest in BioOil as a green fuel for power generation by
turbine manufacturers for power generation. Genergy has been packaging gas
turbines in the U.K. under their Dale brand for thirty years and Solar
Turbines for twenty years. Orenda Aerospace: Testing continues on wood-based
and most recently, bagasse-based BioOil that DynaMotive has shipped to Orenda.
Research & Development:
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Grant Received by the Company: In May 2000, DynaMotive was awarded a CDN
$250,000 research grant from the Canadian government's NRCan department to
assist in the development of its two tiered R&D program in partnership with
Resource Transforms International Ltd. Through this program, it expects to
further advance its technological leadership position and expand the market
for its technology through research into BioOil applications as well as char,
an additional product of the BioOil production process.
DynaPower Metal Cleaning Division:
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Sales: The DynaPower division sold an additional three systems in second
quarter, bringing the total to six systems ordered in the first six months.
The division also commissioned its third demonstration unit, expanding its
capabilities to provide in-plant trials. In addition, DynaPower signed new
agency agreements with Outokumpu WTT of Norrkoping, Sweden and Gold Line
International Co., Ltd. of Seoul, Korea. New Applications: Patents were also
filed in the USA and Canada for a new application of its DynaSonics(R)
cleaning technology that the Company believes has significant commercial
potential for ultrasonic cleaning of diamond or tungsten carbide wire drawing
dies. Subsidiary Established: Progress over the past year has enabled the
Company to establish the DynaPower division as an independent operating
subsidiary named DynaPower, Inc. with a mandate to increase sales and expand
both applications and market reach for the technology.
Conferences & Trade Fairs.
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The Company participated in two important international conferences and
trade fairs during the quarter. Chief Technology Officer Keith Morris
presented a BioOil technical paper and the Company exhibited at the 1st World
Conference & Exhibition On Biomass For Energy & Industry in Seville, Spain.
DynaPower staff showcased the Company's wire cleaning technology at Wire Expo
2000 in Nashville, TN.
For a detailed discussion on DynaMotive's performance over the past
quarter, please refer to our 2nd Quarter Financial Report. A printed copy of
the report is available from the Company. An electronic, PDF version of the
report is posted on our website.