-- In the second quarter 2008 the parent company of our distributor
acquired a major competitor. Early in the second quarter the parent
company disclosed plans to integrate the acquired company and its
retail outlets into its existing retail distribution system, increasing
the number of its nationwide retail outlets from more than 500 to more
than 800. Our distributor will manage some of the new retail outlets
opening up opportunities for increased GOLD'n GRO liquid fertilizer
sales.
-- High grain crop prices and high and increasing fertilizer prices
are producing a need for improved fertilizers. One of the emerging
needs is to be able to apply manganese fertilizer in glyphosate (Round
Up) spray mixes on "Round Up Ready" corn and soybeans. Tests are
underway to evaluate the suitability of GOLD'n GRO 10-0-1+3% Manganese
for this use. Initial tests in the fall of 2007 produced very
satisfactory result on "Round Up Ready" corn. This year Itronics is
working with one of our fertilizer raw material suppliers who has put
out trials on "Round Up Ready" soybeans in several states. Results are
not complete, but the supplier has an extensive nationwide liquid
fertilizer distribution system and is fully capable of introducing the
GOLD'n GRO fertilizer in relevant markets in the midwest and southern
United States where both corn and soybeans are major crops.
-- In the second quarter the Company's agronomy staff was nearly
finished with a peer reviewed research summary of how GOLD'n GRO
fertilizers should be able to increase the availability of phosphorous
and nutrient metals applied as fertilizers to the soil for growing
crops. The research, which has been done by others over a period of
many years, suggests that the unique chemistry of the GOLD'n GRO
fertilizers is beneficial when applied to the soil by improving the
availability of phosphate and the nutrient metals including iron, zinc,
manganese, calcium, and magnesium. A related benefit is that fertilizer
residuals, to the extent they occur, are used as a nutrient source by
soil microbes providing virtually complete use of the fertilizers.
-- Large scale applications of GOLD'n GRO 8-8-8+4% Sulfur fertilizer in
drip systems on crops in the coastal areas in California are
demonstrating that this fertilizer can be used safely in fertigation
applications in locations that have hard water. This is not normally
possible using conventional fertilizers.
-- The GOLD'n GRO nutrient technology is now providing economic and
environmental benefits that are expected to drive expanded use at a
time of high and increasing fertilizer prices, and greatly increased
environmental concerns. Expanded use in fertigation reduces application
costs and quantities required. Improved soil availability of
phosphorous and nutrient metals is expected to reduce the amount of
fertilizer needed to provide satisfactory plant nutrition, which
produces both economic and environmental benefits.
-- The Company, working with its distributor, has completed
development of a new chelated micronutrient fertilizer, "GOLD'n GRO 9-0-
0 Iron Man Z." This fertilizer, which was developed in response to
customer requests, fills a nutrient gap, and is targeted for use in the
turf and ornamental market, and for use on vegetables, trees and vines.
With addition of this chelated micronutrient, the Company now offers
five chelated micronutrient fertilizers, for a total of 13 GOLD'n GRO
multi-nutrient specialty fertilizers.
-- The Company has completed registration of GOLD'n GRO Guardian Deer
Repellent in Nevada, Utah, Colorado, Maryland, Massachusetts, New
Jersey, and Rhode Island. The Company has identified qualified
distributors in several of these states.
-- In the second quarter the Company initiated photo liquid recycling
service with a large national waste hauling company. This agreement is
expected to provide an increase in photo liquids that will support
increased GOLD'n GRO liquid fertilizer sales and that will require an
increase in silver refining capacity.
-- The Company recently announced a breakthrough in the Iron (FeLix) and
Sulfur (SuLix) leaching technology that it is developing which reduces
the bulk volume of silver-bearing material being sent to the Company's
silver refinery and increases the per melt refining capacity up to 10
times, producing a 90 percent reduction in per melt refining cost. The
technology also reduces waste by recovering and converting nutrient
metals into liquid form that can be used in the manufacture of the
Company's GOLD'n GRO liquid fertilizers.
-- The Company believes that the FeLix and SuLix technology will be
useable for processing several different types of materials, including
concentrates produced by silver-zinc mines. Each type of material will
require its own leaching circuit, and in certain cases where large
volumes could be involved, separate processing plants may be necessary.
Itronics has the business infrastructure in place to support on-going
sales growth that is being guided by the Company's eight part long term
growth plan. The primary focus for sales growth is on expanding
fertilizer sales which are now the driver for overall growth in the
GOLD'n GRO fertilizer segment. Incremental manufacturing facility
expansion to support GOLD'n GRO fertilizer production and to expand
silver sales is underway.
"The projects we have underway are converting Itronics into a viable
operating clean technology company with enormous growth potential," said
Dr. John Whitney, Itronics President. "Probably the largest challenge we
are now facing is to obtain less costly long term debt and equity financing
to support our growth. We have a five year business plan and a three year
funding plan. Going forward, one of management's highest priorities is to
implement the Company's three year funding plan which includes
restructuring its balance sheet."
Results for the three and six months ended June 30, 2008, together with
comparative figures for 2007 are summarized below:
ITRONICS INC.
For the Quarter For the 6 Months
Ended June 30 Ended June 30
2008 2007 2008 2007
REVENUE
Fertilizer $ 1,114,865 $ 745,214 $ 1,560,443 $ 1,158,937
Silver $ 80,953 $ 52,050 $ 198,018 $ 120,897
Photo Services $ 36,672 $ 42,646 $ 71,318 $ 87,978
Mining Technical
Services $ 31,373 $ 1,675 $ 87,215 $ 6,628
Total Revenues $ 1,263,863 $ 841,585 $ 1,916,994 $ 1,374,440
Gross Profit (Loss) $ 319,651 $ 111,049 $ 425,635 $ 123,970
Operating Income
(Loss) $ (291,959) $ (622,582) $ (735,330) $(1,295,951)
Other Income
(Expense) $ (324,550) $ (301,881) $ (586,888) $ (239,266)
(including interest)
Gain (Loss) on
Derivative
Instruments $ 6,169,281 $ (311,142) $ 2,516,212 $ (168,753)
(non cash item
related to financing)
Net Income (Loss) $ 5,552,772 $(1,235,605) $ 1,193,994 $(1,703,970)
Net Income (Loss)
Per Share $ 0.005 $ (0.003) $ 0.001 $ (0.005)
About Itronics
Headquartered in Reno, Nevada, Itronics Inc. is a "Creative Clean
Technology" company. Itronics, through its subsidiary, Itronics
Metallurgical, Inc. is the only company with a fully permitted "Beneficial
Use Photochemical, Silver, and Water Recycling" plant in the United States
that can convert used photoliquids into pure silver and GOLD'n GRO liquid
fertilizers. The Company also provides environmentally compatible mining
technology development, project planning, and technical services to the
gold mining industry. Itronics Reports 2008 2nd Quarter Results and
operates the popular InsideMetals.com web site,
http://www.insidemetals.com. which provides a value-added WORLD VIEW of
Gold Producer Stocks, Mineral Producer Stocks, Junior Gold Stocks, and
Junior Mineral Stocks. Itronics has received numerous domestic and
international awards that recognize its ability to successfully create and
implement new environmentally clean recycling and fertilizer technologies.
The Company's environmentally friendly GOLD'n GRO liquid fertilizers, which
are extensively used in agriculture, can be used for lawns and houseplants,
and are available, along with 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.
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.)
Contact Information: Contact: Paul Knopick 888-795-6336