Presentation on theme: "Silver and Fertilizer from Photo Wastes Dr. John W. Whitney Founder, Chairman, President, Itronics Inc. (OTCBB: ITRO; Frankfurt and Berlin:ITG) Recycling."— Presentation transcript:
Silver and Fertilizer from Photo Wastes Dr. John W. Whitney Founder, Chairman, President, Itronics Inc. (OTCBB: ITRO; Frankfurt and Berlin:ITG) Recycling Used Photographic Liquids to Pure Silver and GOLDn GRO liquid Fertilizers February 26, 2008 Presented at the Chartwell/Envirobiz Waste Industry Summit Grand Hyatt Tampa Bay Tampa, Florida
Safe Harbor Statement "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This presentation 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 presentation 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.
Itronics - Participating in the Digital Technology Revolution Image capture technology is changed –Digital capture now partially replaces film capture Kodak is no longer the dominant U.S. camera company Hewlett Packard, Sony, Motorola, Nokia, Cannon, Google, Yahoo, Shutterfly, and others have entered the industry Consumer use of returnable 35 mm cameras continues to grow - 5% growth in 2007 Image print technology is changing –Inkjet printing is being marketed to replace silver halide prints Consumers are taking more pictures and buying more silver halide prints using returnable, conventional, and digital cameras Silver halide photo prints are cheaper, better quality, and more permanent than inkjet photoprints; consumers continue to buy price and quality - 6% growth in 2007
Itronics - Converts Photowaste to Pure Silver and GOLDn GRO® fertilizers Operates photochemical recycling and GOLDn GRO liquid fertilizer manufacturing facility in Reno, Nevada - Only fully permitted facility of this type in the United States, and the world In early stages of long term expansion guided by an eight part growth plan that is updated annually In 2005 completed 15 years of R & D with a cumulative expenditure of $30 million Current Market Cap - $3.7 million
The Markets -- Photowaste Services, Silver, and Fertilizer The U.S. Environmental Protection Agency says silver bearing photoliquids were a 100 million gallon toxic waste stream in the U.S.; today 50 million. Management of silver bearing waste streams required under U.S. EPA RCRA because EPA data shows silver in water is toxic to fish. Regulatory authorities are encouraging development of recycling technologies that increase the amount of materials used beneficially.
Photosilver Disposal in the US 45 million troy ounces of silver is used in photography in US; 10 million ounces end up in liquid photo waste Silver must be removed from photo waste; methods include: – Partial de-silvering on site followed by discharge to sewer –Capture at the source, de-silvering off site, transport to sanitary or hazardous waste land fill –Capture at the source, de-silvering and concentration off site followed by incineration Itronics has pioneered Silver Thiosulfate recycling, a new option for completely converting liquid photo waste to beneficial use
Photowaste in the U.S.A Photo waste is generated by medical, dental, veterinary, and consumer photo processing. Well known companies such as Walmart and Costco and many drug and grocery store chains offer digital and conventional photo print production. Hauling and disposal services are provided by national Companies such as Safety-Kleen and Philip Environmental Services and by smaller regional companies.
The Markets --Photowaste Services Silver and Fertilizer Using Itronics technology, 50 million gallons of waste photoliquids are sufficient to manufacture 100 million gallons of GOLDn GRO fertilizers, or 500,000 tons 50 million gallons of photowaste contains about 10 million ounces of silver; today worth about $170 million Itronics estimates the market targeted for its services and products is approximately $1 billion in the U.S. The total fertilizer market in the U.S. is 50 million tons, a market of approximately $18 billion
Itronics Recycling Technology Advantages Achieves complete resource use!! Only fully permitted photo waste to silver and fertilizer facility in the United States!!! Removes 100% of silver and converts residuals to usable products. Environmentally compatible GOLDn GRO fertilizer manufactured from liquid portion. Silver extracted from solid portion. Solid residual can be converted to non-toxic tile products.
Itronics GOLDn GRO® Fertilizer Advantages GOLDn GRO is priced to compete with existing fertilizers making it cost effective for the farmer GOLDn GRO is 1.5 to 3 times more effective than other products –More economical for farmer because less fertilizer is needed Crop production is increased by up to 40% Environmentally friendly - reduced fertilizer requirement decreases - surface run-off - soil accumulation - risk of groundwater pollution
Itronics - Award Winning Creative Environmental Technology 2000--John Whitney was selected as Nevadas Inventor of the Year. 2001--One of five finalists for the 2001 Kirkpatrick Chemical Engineering Award 2005--Awarded second place (IChemE), Worldwide Environmental Awards in London, England 2005--Awarded USA Gold at the International Green Apple Environmental Awards in London, England 2005--GOLD'n GRO® was named one of the top 10 new technologies representing the best of agricultural innovation by the Canadian Association of Agri-Retailers 2006- Itronics named International Green Hero by the Green Organization, London, England 2007-Dr. John Whitney named Entrepreneur of the Year, Agriculture/Environment by The Business Report of Northern Nevada, published by the Reno Gazette-Journal
Itronics Intellectual Property Intellectual Property Entry Barriers EPA, State, County, and City hazardous waste permits required 15 years R & D and cumulative expenditure of $30 million to create proprietary technology 10 years to create a fully commercial fertilizer - 5 years to perfect product. - 5 years to commercialize. - 10 years of evaluation before obtaining clearance to use on food crops. - Each fertilizer must be registered in each state where it is sold. Liquid fertilizer distribution is specialized and requires long lead time to establish
Itronics Business Model Vertical integration generates three basic revenue streams: Paid to transport and process photowaste $$$$$$$$$$ Recover, refine, and sell the silver on the open market $$$$$$$$$$ Manufacture and sell GOLDn GRO® fertilizers and Guardian –Base liquid$$$$ –Chelated Micro-nutrients$$$$ –Chelated Multi-nutrients$$$$ –Developing GOLDn GRO® Guardian, a deer repellent fertilizer -future $$$$$
Itronics Markets Itronics Metallurgical, Inc. --------------- Photochemical Processing Photo-by-product Fertilizer Manufacturing Silver Recovery and Refining Current Applications: Cotton Fruit and Nut Trees Grapes Vegetables Silver Sales Photography X-Ray Graphic Arts Motion Picture Micro Reproduction Miscellaneous Future Applications: Alfalfa Soybeans Corn (silage) Corn (grain) Nurseries Ornamental plants Timber seedlings
Distribution of GOLDn GRO® Chelated Liquid Fertilizers Developing GOLDn GRO as a national fertilizer brand The GOLDn GRO product line has a total of 12 fertilizers Fertilizers sold bulk wholesale through distributors 1 Biopesticide - GOLDn GRO Guardian liquid deer repellant fertilizer- (in for registration) Sell to Landscapers/Nurseries Consumer Fertilizers Available through the Itronics web site
Itronics Recycling Services Sales Model Selling photowaste management services –Retail services to all categories of small and large photo facilities in northern Nevada and California Selling Photochemical Waste Water Treatment Units and sludge processing service to large military, medical, and consumer photo processing facilities throughout the U.S. Wholesale photo liquid recycling to medium and large environmental service companies throughout the U.S. Two large service contracts signed in fall 2006. Negotiating additional agreements in 2008.
Beneficial Use Photochemical Recycling Photo-Imaging Processor Solution Pick-up and Delivery Services Recycling, Inc. X Treatment Plant Benefits: Improved Biosolids Compliance with NPDES Limits Rivers Itronics GOLDn GRO ® Fertilizer Silver X Recycling, Inc. Photo/Medical/Industrial Waste 80% volume reduction Licensed Processing Facility
IMI Wastewater Treatment Units IMIWWTU-30-SS SHIPBOARD IMIWWTU-1000-L LAND BASED
Itronics GOLDn GRO fertilizer Sales Model Focus is on Bulk 5,000 Gallon Tank Truck Sales. -Also sell 250 gallon totes, 55 gallon drums and 2.5 gallon bottles Multi-year licensing, manufacturing, and distribution agreement with Western Farm Services for 5 western states, - more than 100 agriculture retail stores Western Farm Services is a wholly-owned subsidiary of Agrium, Inc. - the largest agricultural fertilizer retailer in the United States, - more than 800 agriculture retail stores nation wide. GOLDn GRO Guardian will be sold through distributors in the landscape maintenance market throughout the United States.
Reno Facility Capacity 35,000 square foot structure on 3.5 acres 7,500 ton annual current fertilizer capacity Capable of producing 36,000 tons of fertilizer Commenced operations in January 2000
IMIs Production Facility We pick-up photo chemicals and distribute liquid fertilizer.
Impure Silver Initial separation of silver from impurities Silver button with gold Glass for decorative tile!
.999 Silver Pouring molten silver into molds Loaves of.999+ silver Hot work
Silver Nevada Miner 5 Troy Oz. Pure Silver Bar 2006 5 Oz. Silver Nevada Miner Bars
One Happy Customer Dayton Valley Golf Club needed to kick-start its greens and tees out of winter dormancy. Three days after applying GOLDn GRO® 20-1-7 formulation with Iron and chelates.
The Markets --GOLDn GRO Guardian Deer Repellent Fertilizer Deer damage in the U.S. today exceeds $5 billion, creating a new and growing market. Deer population has grown from 500,000 nationwide in early 1900s to more than 15 million today. Itronics estimates the market targeted for deer repellent services and products is approximately $1 billion in the U.S. Existing deer repellents are topical - treatments last 2-3 weeks and wash off with rain. GOLDn GRO Guardian is systemic, doesnt wash off, treatments last up to 3 months. The total deer repellent fertilizer market in the U.S. growing rapidly and is expected to exceed $200 million.
Itronics GOLDn GRO Fertilizer Divison Sales are Expanding Sales up 25% for full year 2007 at $2.3 million. Positive gross profit for full year 2007. Expect sales to increase in 2008 to about $4 million. Targeting a 35% gross margin with increase to 60% when GOLDn GRO Guardian sales established. Registering GOLDn GRO Guardian, the deer repellant fertilizer in 2008.