|
Press
Release Archives: 08/15/2006
Itronics
Second Quarter 2006 Sales Up 45 Percent, Reports
$274,000 Profit Due to Gain on Derivative
RENO, Nev., Aug. 15 /PRNewswire-FirstCall/ -- Itronics
Inc. (OTC Bulletin Board: ITRO; Frankfurt and Berlin
Stock Exchanges: ITG) filed its second quarter 2006
report on Form 10QSB and it is available on the U.S.
Securities & Exchange Commission web site at http://www.sec.gov
.
Key accomplishments for the quarter include a 45 percent
increase in sales, a 13 times increase in gross
operating profit, and a $274,000 profit compared to the
2005 second quarter loss of $(819,000). The sales
increase was achieved in spite of significant rainfall
in northern and central California which hampered the
growing season. The profit in the quarter was primarily
due to a non-recurring $986,000 gain on a derivative
instrument related to the $3.25 million financing
completed in July 2005.
Goals outlined by the Company for the balance of 2006
are to continue to expand GOLD'n GRO liquid fertilizer
and silver sales; increase the number of photowaste
services customers to expand photochemical raw material
supply; register GOLD'n GRO Guardian liquid deer
repellant fertilizer as a biopesticide with the U.S.
Environmental Protection Agency; and continue to acquire
financing to support growth. All goals are being
implemented according to Itronics' eight-part, five-year
business plan summarized in a press release on June 3,
2005.
Increases for the second quarter sales of GOLD'n GRO
liquid fertilizers and silver were outlined in a press
release dated July 11, 2006. The Company overcame
inclement weather in its principal market in central
California to achieve a 36 percent second quarter
increase in GOLD'n GRO chelated liquid fertilizer sales.
Silver sales in the quarter increased by 362 percent.
The Company expects fertilizer and silver sales growth
to continue throughout the year.
Silver is continuing to trade in the price range of
$9.50 to $12.50 per troy ounce. If these higher prices
continue, silver sales for the full year 2006 are
expected to be up to 4.5 times greater than 2005 silver
sales.
During the second quarter the Company continued to work
towards implementing its new iron and sulfur leach
process that reduces the amount of solids delivered to
its silver refinery by 50 percent, effectively doubling
refining capacity while reducing refining costs by more
than half. Planning also continued for a further
increase in silver refining capacity which will include
an expansion of material drying, sampling, and
preparation capacity to be implemented in 2007 and 2008.
Photo Service revenues declined modestly in the second
quarter and the Company continued soliciting new
photoprocessing businesses and photowaste service
businesses to supply photochemical raw material for
fertilizer manufacturing. Early in the third quarter
Itronics obtained a new customer whose photochemical raw
material is expected to significantly increase raw
material supply, and service revenues in the third and
fourth quarter of 2006 and in future years.
Mining Technical Services declined in the second quarter
while this division continues to advance its web based
http://www.InsideMetals.com Gold Producer Stocks
information portal. The Company expects subscription
revenues that are beginning to be generated by
InsideMetals.com will continue to increase. Traffic
volume on the InsideMetals.com web page has increased to
levels that make it worthwhile for Gold Exploration
Companies to begin paid advertising on the web page and
a paid advertising program is being developed and will
be offered soon.
Operating loss decreased 26 percent compared to the
prior year, principally due to increased fertilizer and
silver sales. A net profit was generated due primarily
to accruing $986,137 in non cash "gain on derivative
instruments," as required by current accounting
standards.
Results for the second quarter ended June 30, 2006,
together with comparative figures for 2005 are
summarized in this PDF
About Itronics
Itronics, through its subsidiary, Itronics
Metallurgical, Inc., is the only company in the world
with a "Beneficial Use Photochemical, Silver, and Water
Recycling" facility that extracts more than 99 percent
of the silver and virtually all the other toxic heavy
metals from used photoliquids and converts the resulting
liquids into environmentally beneficial, chelated,
multinutrient liquid fertilizer products sold under the
GOLD'n GRO trademark, and 5 troy ounce, 0.999 pure,
Silver Nevada Miner numismatic bars. The environmentally
friendly liquid fertilizers can be used for lawns and
houseplants, and are available, along with GOLD'n GRO
liquid fertilizer injectors, at the Company's "e-store"
catalog at http://goldngro.com . The popular Silver
Nevada Miner bars are available at the Company's
"e-store" catalog at http://www.itromet.com .
Headquartered in Reno, Nevada, Itronics Inc. is a
Creative Environmental Technology company and a world
leader in photochemical recycling. The Company also
provides project planning and technical services to the
mining industry and operates the global Gold Producing
Stocks web site, http://www.insidemetals.com. Itronics
was one of five finalists for the 2001 Kirkpatrick
Chemical Engineering Award, the most prestigious
worldwide award in chemical engineering technologies.
Itronics was awarded second place, Highly Commended in
the Environmental Technology category, at the
prestigious Institution of Chemical Engineers (IChemE)
2005 Worldwide Environmental Award ceremonies at the
Royal Courts of Justice in London, England in September
2005. Itronics was awarded the USA Gold Award at the
House of Commons in London in November 2005 as part of
the International Green Apple Environmental Awards
contest, one of the largest and most prestigious of its
kind in the world and the International Green Hero award
in 2006 for its leadership on environmental issues.
Itronics' GOLD'n GRO fertilizer was named one of the top
10 new technologies representing the best of
agricultural innovation by the Canadian Association of
Agri-Retailers in its December 2005 publication
"Communicator." Dr. John Whitney, Itronics President,
was selected as Nevada's Inventor of the Year for 2000
and is a member of the Inventor's Hall of Fame at the
University of Nevada, Reno.
VISIT OUR WEB SITE: http://www.itronics.com
("Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: This press release
contains or may contain forward-looking statements such
as statements regarding the Company's growth and
profitability, growth strategy, liquidity and access to
public markets, operating expense reduction, and trends
in the industry in which the Company operates. The
forward-looking statements contained in this press
release are also subject to other risks and
uncertainties, including those more fully described in
the Company's filings with the Securities and Exchange
Commission. The Company assumes no obligation to update
these forward-looking statements to reflect actual
results, changes in risks, uncertainties or assumptions
underlying or affecting such statements, or for
prospective events that may have a retroactive effect.)
--------------------------------------------------------------------------------
Source: Itronics Inc. |
