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Press
Release Archives: 11/20/2006
Itronics
Increases Third Quarter 2006 Sales by 22 Percent, Nine
Months Sales Increased 34 Percent
RENO, Nevada, November 20, 2006 -- Itronics Inc. (OTC
BB: ITRO; Frankfurt and Berlin Stock Exchanges: ITG)
said today the Company achieved a 22 percent increase in
sales in the third quarter ended September 30, 2006 and
a 77 percent reduction in gross loss compared to the
2005 third quarter. Nine month sales in 2006 increased
34 percent to $1.4 million.
For the nine month period in 2006, gross profit was
$121,200 compared to a gross loss of $81,800 in the
prior year, an improvement of $202,900. The sales
increase was achieved in spite of a delay in the
northern and central California harvesting season due to
late spring rains which postponed planting. The
reduction in gross loss was achieved as a result of
increased GOLD’n GRO liquid fertilizer sales, which were
up 30 percent in the nine month period, and silver
sales, which were up 161 percent. Itronics’ third
quarter 2006 report on Form 10QSB is now available on
the U.S. Securities & Exchange Commission web site at
www.sec.gov.
“While 2006 is shaping up to be a pivotal year in the
photographic industry with many new participants and
rapid changes in the use of digital cameras to capture
images, the use of silver halide photochemistry to make
photographic prints is continuing to grow as is the use
of returnable 35 mm cameras. The on-going use of silver
halide photo print technology produces the
photochemicals needed for use as base liquids for
production of GOLD’n GRO fertilizers and provides a
positive outlook for the future of Itronics ‘Beneficial
Use Photochemical, Silver, and Water Recycling
Technology.’ Demand for Itronics’ environmentally
beneficial recycling services is expected to continue to
increase as restrictions on alternative methods of
liquid photochemical disposal continue to tighten,” said
Dr. John Whitney, Itronics President.
The Company is meeting its goals outlined for the
balance of 2006, which include continuing to expand
GOLD’n GRO liquid fertilizer sales and silver sales;
increasing the number of photowaste services customers
to expand photochemical raw material supply; registering
GOLD’n GRO Guardian liquid deer repellant fertilizer;
and continuing to acquire financing to support growth.
All goals are being implemented according to Itronics’
eight-part, five-year business plan that was summarized
in a press release on June 3, 2005.
The Company expects to report a positive gross profit
for the GOLD’n GRO fertilizer segment for the full year
2006, a historical first. New photochemical service
contracts that are now in place are expected to produce
a significant increase in photochemical services revenue
in the fourth quarter and through 2007. The increase in
photochemical supplies is expected to support further
increases in silver sales in 2007.
The Company has been performing research to produce a
stable GOLD’n GRO Guardian liquid deer repellant
fertilizer mix. A number of technical challenges have
been overcome and the work is nearing completion. Once
additional test work is completed in early 2007, the
registration process can be implemented.
During the third quarter Itronics 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 again while reducing refining costs by
more than half. Work is underway to size and lay out a
pilot leaching circuit that is planned to be partially
assembled in the fourth quarter 2006 and to begin
intermittent operation. Planning also continued for a
further increase in silver refining capacity which will
include an expansion of material drying, sampling, and
preparation capacity and will be implemented in 2007 and
2008.
The Company began installation of an air purification
system for the refining operation in the third quarter
and this is expected to be completed in the fourth
quarter. Late in the third quarter the Company began
construction of the new liquid fertilizer load out tank
module. Construction of the tank foundation and
containment is expected to be completed by the end of
2006.
Mining Technical Services declined in the third quarter
while this division continues to advance its web based
InsideMetals.com Gold Producer Stocks information
portal: http://www.insidemetals.com . A “Gold
Exploration Shopping Mall” is being developed and can be
accessed through the Inside Metals web page. Traffic
volume on the InsideMetals.com web page has increased to
levels that make it worthwhile for Gold Exploration
Companies to begin paid advertising there. The Company
hired a marketing and sales manager early in the fourth
quarter to be responsible for marketing InsideMetals
advertising and Whitney & Whitney, Inc. mining technical
services. A paid advertising program has been developed
and is now being offered to Gold Exploration Companies.
The Company expects Mining Technical Services8u revenues
to begin to increase in the first quarter 2007 and to
continue to expand throughout 2007.
One of the Company’s business objectives is to establish
revenue growth in each one of its revenue generating
segments. The GOLD’n GRO liquid fertilizer segment has
three revenue generating sub segments: GOLD’n GRO liquid
fertilizers, Silver, and Photochemical Services. With
the recent acquisition of significant new photochemical
services accounts, the Company has now established the
basis for continuing revenue growth in each of the three
sub segments. The Company is now expecting to achieve
revenue growth in each of its revenue segments in 2007
and beyond.
Operating loss decreased 4% and 19% for the three and
nine months ended September 30, 2006, compared to the
prior year periods, principally due to a combination of
the effects of the increased silver and fertilizer sales
and improved margins on silver sales due to a rapidly
increasing silver price. An increased net loss was
generated in the third quarter due to an increase in the
“loss on derivative instruments,” calculated as required
by current accounting standards.
Results for the third quarter and nine months ended
September 30, 2006, together with comparative figures
for 2005 are summarized below:
11/20/2006
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.
("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.) |
