Business Segments

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Business Segments

13. Business Segments 

The Company has two operating segments, antimony and zeolite. Management reviews and evaluates the operating segments exclusive of interest and factoring expenses. Therefore, interest and factoring expense is not allocated to the segments. 

The Madero smelter at the Company’s Mexico operation brings antimony up to an intermediate stage, which must then be shipped to the United States operation for finishing. 

Selected information with respect to segments for the years ended December 31, 2011, 2010 and 2009 is as follows: 

	2011		2010		2009
Antimony Division - United States:
Revenues - Antimony	$	10,406,636	$	6,174,062	$	2,526,663
Revenues - Precious metals		667,813		483,307		40,444
		11,074,449		6,657,369		2,567,107
Domestic cost of sales:
Production costs		7,294,421		4,786,197		1,617,041
Depreciation		29,963		27,387		71,929
Freight and delivery		216,668		236,623		121,144
General and administrative		280,853		80,267		78,587
Direct sales expense		64,421		45,447		46,875
Total domestic antimony cost of sales		7,886,326		5,175,921		1,935,576
Cost of sales - Mexico
Production costs		1,182,730		294,391		125,949
Depreciation		169,552		141,421		—
Freight and delivery		121,432		5,578		—
Other mine and mill costs				—		—
General and administrative		158,396		136,498		153,418
Total Mexico antimony cost of sales		1,632,110		577,888		279,367
Total revenues - antimony		11,074,449		6,657,369		2,567,107
Total cost of sales - antimony		9,518,436		5,753,809		2,214,943
Total gross profit - antimony		1,556,013		903,560		352,164
Zeolite Division:
Revenues		2,043,641		2,415,955		1,536,233
Cost of sales:
Production costs		1,221,101		1,254,375		830,065
Depreciation		206,231		187,068		190,523
Freight and delivery		103,630		16,637		68,117
General and administrative		117,420		188,251		158,144
Royalties		197,371		229,352		202,736
Direct sales expense		79,703		70,100		69,766
Total cost of sales		1,925,456		1,945,783		1,519,351
Gross profit - zeolite		118,185		470,172		16,882
Total revenues - combined		13,118,090		9,073,324		4,103,340
Total cost of sales - combined		11,443,892		7,699,592		3,734,294
Total gross profit - combined	$	1,674,198	$	1,373,732	$	369,046

	2011	2010
Capital expenditures:
Antimony
United States	$   160,536	$   31,300
Mexico (1)	1,988,345	927,131
Subtotal Antimony	2,148,881	958,431
Zeolite	324,869	36,300
	$2,473,750	$ 994,731
Total Assets:
Antimony
United States	$1,187,322	$1,379,369
Mexico	4,992,250	2,719,630
Subtotal Antimony	6,179,572	3,599,076
Zeolite	2,813,956	1,763,903
	$8,993,528	$5,862,902

Segment disclosures regarding sales to major customers and for inventories and property, plant and equipment are located in Notes 2, 5 and 6, respectively.