ITRONICS PROVIDES OPERATIONS UPDATE AND REPORTS 2012 THIRD QUARTER AND
NINE MONTH REVENUES
RENO, Nevada, November 12, 2012 -- Itronics Inc. (OTC: ITRO), a growing
and diversified fertilizer, silver, and minerals producer, today provided an operations
update and announced sales results for the three months and nine months ended September
The Company reported that for the third quarter ended September 30,
2012 Total Revenues were $198,922 compared to $565,173 in the 2011 third quarter. Total
Revenues for the nine months ended September 30, 2012 were $1,844,619 compared to
$2,471,092 in the same period in 2011.
The third quarter is typically the Companys slowest quarter.
Sales in the first nine months were down compared to 2011 for three major reasons: A
number of Itronics distributors sales branches purchased inventories ahead of
the season in 2011 under the Companys pre-fill program. The 2012 spring season ended
unusually early in July, and some of the retail branches that had restocked inventories in
the third quarter in prior years have delayed re-filling until the fourth quarter.
Itronics is working with its distributor to continue to expand
GOLDn GRO sales going forward. Its fertilizers continue to perform very well and
this performance is expected to continue to attract new customers.
Volumes of silver bearing photoliquids being received continue to
exceed the quantities needed for fertilizer manufacturing. The Company has a substantial
on-site inventory to support seasonal sales requirements and for sales expansion.
Troy ounces of silver sold in the first nine months of 2012 were down
compared to the prior year period and the price of silver was down, so the decrease in
Silver Revenue is due to a combination of lower production and lower silver prices. The
silver is extracted from silver-bearing photo liquids prior to their use in fertilizer
manufacturing. Because of this, silver production fluctuates with fertilizer production.
The Company has been operating the previously announced Itromet FeLix
silver iron separation process, which chemically separates iron from silver as a batch
operation, since August 2010. The immediate focus is on processing internally manufactured
refinery feed materials in order to reduce refining costs and increase refining capacity
while producing a superior iron byproduct for use in the GOLDn GRO fertilizers.
"The iron rich liquid produced by the silver iron separation
process is standardized and used as an ingredient in one of the GOLDn GRO
fertilizers," said Dr. John Whitney, Itronics President. "The use of our own
iron nutrients in the GOLDn GRO fertilizer improves quality and effectiveness while
stabilizing the cost for our customers and generating a positive gross profit for the
The new silver iron separation process is being developed to process
internally produced silver iron bearing chemical precipitates, silver iron matte solids
and to process silver-bearing steel wool solids to the extent that they are available. The
Company plans to expand this cost reducing technology to fully meet its internal needs.
Due to increases in dry silver-bearing solids handling, the Company
needs to expand the refinerys solids
11-12-12 Itronics Inc. Press Release, "Operations Update and
Reports 2012 Third Quarter
handling and processing capabilities. Planning is underway to set up a
small scale dry solids processing circuit
with crushing and screening capabilities. A jaw crusher, a cone
crusher, and a screening machine have been acquired for this. A separate area in the plant
is available for this operation, and a plan and budget are being developed so that the
installation can be completed in 2013.
Expansion of this solids processing capability may make it possible, in
the future, for the Company to begin purchasing and processing silver gold bearing
refinery slags generated by some of the smaller gold and silver mines in Nevada. The
Company is studying the potential for marketing the increased quantities of silver bearing
glass slag that would be generated.
The Company did announce that Whitney & Whitney technical services,
a wholly owned subsidiary, has increased revenues due to expansion of service support for
one of its long term mining clients. This expanded service support is expected to continue
for several years. Continued expansion of the gold mining sector in Nevada may produce
additional opportunities that are attractive to the Company.
Unaudited Revenues for the third quarter, and first nine months ended
September 30, 2012 together with comparative figures for 2011 are presented below: