AXcess News: Green Silver Refiner Bullish on Revenue Outlook
August 10 2010 - 4:07PM
Marketwired
Reno-based Itronics, Inc. (PINKSHEETS: ITRO) gave a more bullish
outlook towards future revenue Tuesday when the company released
its second quarter results, saying its line of liquid fertilizers
would see growth while silver recovered through its photochemical
recycling plant would climb 50% to 100% in the third quarter.
Spot silver prices have averaged greater than $18 per ounce over
the last quarter and with global demand for commodities showing
steam, those prices will more than likely continue. Higher silver
prices are benefiting Itronics through the recovery of heavy metals
in its photochemical recycling process which is about to expand
ten-fold through the installation of Itronics' long-awaited phase 1
silver refinery plant expansion.
The company announced in July that the silver refining capacity
would increase ten-fold to 2.4 million ounces on an annualized
basis, forecasting $42 million in sales as a result, when fully
implemented. Yet today's news revealed third quarter silver sales
would increase 50% to 100% -- without consideration to the phase 1
refinery expansion.
While silver is sexy, fertilizer isn't. Yet in examining
Itronics' development, its GOLD'n GRO line of liquid fertilizers
holds more promise than the company reaching its $42 million silver
sales goal.
Itronics boasts the only EPA-approved photochemical recycling
plant in the United States and over the last four to five years the
company has slowly opened up new markets in adding no less than 10
states where EPA approvals to sell its GOLD'n GRO line of
fertilizers have been granted. While California remains its core
market, bulk fertilizer sales have continually climbed for two
reasons. First, nitrate and phosphate fertilizers have doubled in
cost and continue to cause pollution through surface water runoff.
Second, GOLD'n GRO fertilizers are pollution-free and actually
improve soil conditions, reducing overall fertilizer costs over
time. So the bottom line has been lower costs and better crop
yields that can be found in repeat orders in California where
Itronics' GOLD'n GRO line of fertilizers is more established.
The company says that its new phase 1 silver refinery expansion
will lower costs 90%, making Itronics the low-cost leader of any
silver refiner in the nation. Part of that development includes
phasing in a new source of raw material in keeping with Itronics'
'green' business, metal canisters used in the photo processing
industry. Those canisters contain large amounts of silver, iron and
other materials which Itronics will recover through its silver
refinery plant expansion. The materials both replace and add to the
mix needed to manufacture Itronics' line of liquid fertilizers
which will lower fertilizer production costs and generate new
GOLD'n GRO products.
While Itronics prepares for the future, the company just
recently completed a 1,000-to-1 reverse of its common stock and is
now looking for new financing to meet its growth plan. Only time
will tell at what pace Itronics will grow, but in examining its
survival capability, I wouldn't bet against it reaching its market
peg or attract capital.
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