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Press
Release Archives: 08/16/2004
Itronics Reports Positive
Gross Profit for First Half of 2004, Key Milestone in
Company's History
Monday August 16, 7:02 am ET - GOLD'n GRO Sales Up 90
Percent -
RENO, Nev., Aug. 16 /PRNewswire-FirstCall/ -- Itronics
Inc. (OTC Bulletin Board: ITRO; Frankfurt and Berlin
Stock Exchanges: ITG) reported today that second quarter
revenue totaled $626,170, a 40 percent increase compared
to the second quarter in 2003. Revenue for the first 6
months in 2004 totaled $1,033,010, a 52 percent increase
compared to the first half of last year. The Company's
photochemical recycling division achieved a positive
gross profit in both the second quarter and in the first
half of the year for the first time in its history.
"The most significant among numerous positive
developments in the first half of 2004 was increasing
sales of the Company's GOLD'n GRO liquid fertilizer by
90 percent compared to the same period in 2003 and 77
percent in the second quarter of 2004 compared to last
year," said Dr. John Whitney, Itronics President.
During the second quarter the Company successfully
installed and started up a heat exchange system which
provides a four times increase in manufacturing capacity
on a single shift basis. "Getting this new heat exchange
system installed and operational removed a major
production bottleneck, reduced manufacturing costs, and
greatly improved the Company's ability to meet ongoing
sales increases," Dr. Whitney said.
Field trials to demonstrate different aspects of GOLD'n
GRO product use compared to standard grower
fertilization practice increased during the second
quarter of 2004 with 12 trials currently in various
stages. Most will be completed during the third and
fourth quarters, but field observations will continue
for up to a year at locations where GOLD'n GRO soil
conditioning effects are being examined.
Preliminary findings indicate that the new GOLD'n GRO
base liquid is helping reduce plugging problems commonly
encountered in drip and micro-sprinkler irrigation. In
certain locations that have poor water quality the
GOLD'n GRO base liquid appears to be improving
proprietary field fertilizer mix stability. At other
locations, use of the GOLD'n GRO base liquid also
appears to be improving plant nutrient uptake from the
soil, especially when used in combination with one or
more of the GOLD'n GRO chelated nutrient metal products.
The target market for GOLD'n GRO base liquid is to have
it become an integral component of distributor
proprietary field mixes with the usage tailored to
achieve specific mix objectives.
Another group of trials is underway to evaluate low rate
(1 to 2 gallons per acre) foliar application of GOLD'n
GRO 8-8-8 + 4% S(sulfur) with one of the GOLD'n GRO
chelated zinc products at second, third, and fourth
cutting for alfalfa being grown for dairy cow feed.
Early indications are that the nutrient content of the
alfalfa is being improved, which benefits the dairy
because less nutrient supplements are required for
feeding the cows, thus reducing dairy operating
expenses. The target market is large with more than 23
million acres of alfalfa grown in the United States.
Another group of trials is evaluating low rate (1 to 2
gallons per acre) foliar application of GOLD'n GRO 8-8-8
+ 4% S and GOLD'n GRO 20-1-7 + 3% S on silage corn and
field corn. Early indications are that a positive growth
response is obtained and in one trial the corn is
putting out tassels earlier. A benefit of accelerated
growth of the corn is earlier harvest, which provides a
number of benefits including lower risk of loss due to
frost and fall rains, and possibly lower drying cost.
Another possible outcome is greater corn stalk mass
which would be beneficial to silage corn being grown for
cattle feed. The target markets for these applications
are large with more than 79 million acres of grain and
silage corn being grown in the United States.
Fertilization applications for corn are expected to
become more important as the use of domestically grown
corn to produce ethanol for fuel continues to increase.
Two large acreage crops that have potential for low rate
foliar fertilization (1 to 2 gallons per acre)
application development for GOLD'n GRO liquid
fertilizers are cotton and soybeans. Some foliar
applications have already been tested on cotton with
positive results, and a small amount of work has been
done on dry beans with positive results. More than 13
million acres of cotton and almost 80 million acres of
soybeans are grown in the United States.
Field evaluation of GOLD'n GRO 9-0-1 + 7% Zn (zinc) and
GOLD'n GRO 9-0-2 + 3% Zn is continuing. GOLD'n GRO 9-0-1
+ 7% Zn was introduced in late 2001 for bulk use and
GOLD'n GRO 9-0-2 + 3% Zn was introduced for bulk use in
early 2004. Large scale usage of GOLD'n GRO 9-0-1 + 7%
Zn is demonstrating up to two times greater
effectiveness when compared to usage of standard
products. Early indications are that GOLD'n GRO 9-0-2 +
3% Zn is comparably effective. Both nutrient content and
nutrient balance are being improved by use of these
products and this demonstrated effectiveness is expected
to continue to drive sales growth. These products are
used on most crops and the Company believes that the
potential annual United States market is in the range of
6 to 10 million gallons.
An environmental benefit that results from the
effectiveness of the GOLD'n GRO chelated zinc products
is a 20 percent to 90 percent reduction in the amount of
zinc metal needed to satisfy the nutrient requirements
of the crops being fertilized. Large scale field soil
sampling is showing that with the lower application
rates there is very little carry over of nutrient metal
to the next crop and nutrient metal accumulation in the
soil is virtually eliminated.
During the second quarter the Company continued its
geographic expansion of GOLD'n GRO liquid fertilizer
sales. Expansion of sales into Washington, Oregon, and
Idaho is being implemented by relocating a senior sales
agronomist to Walla Walla, Washington, and initiating
the GOLD'n GRO fertilizer registration process in Oregon
and Washington. GOLD'n GRO 9-0-1 + 7% Zn is already
registered in Idaho and additional products are being
considered for registration.
GOLD'n GRO product development is continuing with two
new fertilizers being developed, a high magnesium
content liquid fertilizer and a calcium plus magnesium
liquid fertilizer. These liquid fertilizers are
technically more complex than the other GOLD'n GRO
fertilizers and so their development was delayed until
the basic line of GOLD'n GRO fertilizers was completed.
These products will be evaluated for foliar and soil
application in the 3rd and 4th quarters and are expected
to be available for sale during the first quarter of
2005.
Work leading to registering GOLD'n GRO Guardian
fertilizer deer repellant is continuing. On-going
research results are providing the basis for a
fertilizer bird (goose) repellant that will be developed
for small plot field trial and registration after the
registration of GOLD'n GRO Guardian.
The rapid growth in silver halide photofinishing for
digital photographers continued to increase the
Company's volume of used silver-bearing photoliquids,
with a 46 percent increase in the first quarter of 2004
and 36 percent increase in the second quarter compared
to 2003. This growth is occurring within the Company's
existing customer base in northern Nevada and northern
California. This continuing rapid growth in
silver-bearing photoliquids ensures the Company will
continue to have a more than adequate supply to support
the rapid growth in GOLD'n GRO fertilizer sales.
Silver sales increased 168 percent in the second quarter
compared to 2003 totals. More than half of the increase
in silver sales was generated by sales of the Company's
popular 0.999 percent pure 5 troy ounce Silver Nevada
Miner numismatic bars and X-ray film silver. The silver
price fluctuated sharply during the quarter, but was up
significantly. Wide silver price fluctuation at higher
levels is expected during the balance of 2004. Silver
sales are expected to continue to increase through the
end of 2004.
Itronics, through its subsidiary, Itronics
Metallurgical, Inc., is the only company in the world
with the technology to extract more than 99 percent of
the silver and virtually all the other toxic heavy
metals from used photoliquids and to use this
"Beneficial Use Photochemical, Silver, and Water
Recycling" technology to convert the resulting liquids
into environmentally beneficial, chelated, multinutrient
liquid fertilizer products sold under the trademark
GOLD'n GRO, and 5 troy ounce, 0.999 pure, Silver Nevada
Miner numismatic bars. The environmentally friendly
liquid fertilizers, which can be used for lawns and
houseplants and GOLD'n GRO liquid fertilizer injectors
are available at the Company's "e-store" catalog at
http://goldngro.com. The Silver Nevada Miner bars, a
popular souvenir of Nevada's mining history, are
available at the Company's 'e-store' catalog at http://www.itromet.com.
Headquartered in Reno, Nevada, Itronics Inc. is Nevada's
leading "Beneficial Use Recycling" technology company
and a world leader in photochemical recycling. The
Company also provides project planning and technical
services to the mining industry. 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. Itronics was
one of five finalists for the 2001 Kirkpatrick Chemical
Engineering Award, the most prestigious worldwide award
in chemical engineering technologies.
View table data here
VISIT OUR WEB SITE:
www.itronics.com
(Statements in this press release may constitute
forward-looking statements and are subject to numerous
risks and uncertainties, including the failure to
complete successfully the development of new or enhanced
products, the Company's future capital needs, the lack
of market demand for any new or enhanced products the
Company may develop, any actions by the Company's
partners that may be adverse to the Company, the success
of competitive products, other economic factors
affecting the Company and its markets, and other risks
detailed from time to time in the Company's filings with
the Securities and Exchange Commission. The actual
results may differ materially from those contained in
this press release. The Company disclaims any obligation
to update any statements in this press release.)
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Source: Itronics Inc. |
