End of California Drought Puts this Small-Cap Stock in the Spotlight
One weekend in February this year, the national news cycle became fixated on the Orville Dam in Northern California. Excessive rain had led to a failure of the dam’s spillway, threatening millions downstream, and providing the first clear indication for many that the state’s six-year long drought was coming to an abrupt halt.
At the height of the drought in 2015, California’s agriculture business saw production drop 17% to $45 billion. This is significant as the state accounts for around one-third of the country’s vegetable production, nearly two-thirds of fruit and nut production, and about 20% of milk production.
With the sharp reversal of fortunes this winter, California farmers are gearing up for a banner year. And with expectations high, demand for fertilizer is on the rise.
Reno-based Itronics (OTC: ITRO), manufacturer of GOLD’n GRO fertilizers, reported sales up 54% in the first 10 weeks of the year.
The company has built a solid business supplying its environmentally-friendly, award-winning liquid fertilizers to the agriculture industry in California.
But the real story is the technology Itronics uses to make their fertilizer. It’s game changing.
The feedstock for Itronics’ fertilizer production is spent silver-bearing photographic liquids, a hazardous material. Using its proprietary technology, Itronics eliminates the entire waste stream, producing fertilizer, silver bullion, and silver-bearing glass.
The company’s operation in Reno is the only fully-permitted “beneficial use” plant in the U.S. that converts 100% of spent photoliquids into resalable products.
Itronics R&D team continues to work on extensions of its technology to address other large-scale market opportunities.
One promising area for Itronics is a new venture into e-scrap recycling. The company reported its first shipment of silver bullion produced by this breakthrough technology in January.
The e-scrap refining technology uses silver as a collector of the metals contained in the e-scrap. Itronics believes that it is the only company in the world to use this method of recovering the metals contained in the e-scrap.
With Itronics using the silver it recovers from spent photographic liquids, significant value is added to each ounce of silver used.
This break-through technology is successfully capturing all the base and precious metals contained in the ground up circuit boards that are being refined.
Itronics is aggressively advancing development of its portfolio of "zero waste" technologies.
As the company gains traction with its e-scrap refining, its establishing a great foundation that should reduce or even eliminate the effects of seasonality from its fertilizer business.
Base and precious metals prices are expected to continue to increase, so with e-scrap refining adding gold, palladium, and copper to the sales mix, revenue should expand significantly in the quarters and years ahead.
Add in the expectations of a banner year for California’s farm industry, and the near-term upside for Itronics’ stock could be substantial.
Watch our interview with Itronics’ Dennis Bradley to learn more about this exciting opportunity.
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