Business Segments

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 8. 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 expense and factoring is not allocated to the segments.  Selected information with respect to segments is as follows:

	As of March 31, 2012		As of December 31, 2011
Properties, plants and equipment, net:
Antimony
United States	$	626,593	$	603,959
Mexico		4,218,042		3,492,296
Subtotal Antimony		4,844,635		4,096,255
Zeolite		1,941,819		1,950,749
	$	6,786,454	$	6,047,004
Total Assets:
Antimony
United States	$	3,706,465	$	1,187,322
Mexico		5,054,517		4,992,250
Subtotal Antimony		8,760,982		6,179,572
Zeolite		2,291,533		2,813,956
	$	11,052,515	$	8,993,528

	For the three months ended
	March 31, 2012		March 31, 2011
Capital expenditures:
Antimony
United States	$	44,768	$	57,222
Mexico		762,840		91,369
Subtotal Antimony		807,608		148,591
Zeolite		40,887		-
	$	848,495	$	148,591

	For the three months ended March 31,
	2012			2011
Antimony Division - United States:
Revenues - Antimony	$	2,202,137		$	2,114,232
Customer discounts - Antimony		(27,328	)
Revenues - Precious metals		180,138			331,200
		2,354,947			2,445,432
Cost of sales:
Production costs		1,487,618			1,689,599
Depreciation		7,135			6,881
Freight and delivery		52,316			64,890
General and administrative		19,451			26,208
Direct sales expense		17,769			12,590
Total cost of sales		1,584,289			1,800,168
Gross profit - United States antimony		770,658			645,264
Antimony Division - Mexico:
Cost of sales - Madero smelter:
Production costs		440,510			225,198
Depreciation		50,418			39,946
Freight and delivery		65,424			804
General and administrative		16,011			30,417
Total Madero smelter		572,363			296,365
Non operating costs :
Corporate		39,216
Puerto Blanco mill		30,738
Los Juarez mine		11,828
Total Mexico costs		654,145			296,365
Gross profit (loss) - Mexico antimony		(654,145	)		(296,365	)
Total revenues - antimony		2,354,947			2,445,432
Total cost of sales - antimony		2,238,434			2,096,533
Total gross profit - antimony		116,513			348,899
Zeolite Division:
Revenues		698,607			392,607
Cost of sales:
Production costs		488,302			273,302
Depreciation		49,817			46,139
Freight and delivery		21,802			(2,280	)
General and administrative		3,505			14,523
Royalties		66,810			44,912
Direct sales expense		21,474			18,390
Total cost of sales		651,710			394,986
Gross profit (loss) - zeolite		46,897			(2,379	)
Total revenues - combined	$	3,053,554		$	2,838,039
Total cost of sales - combined		2,890,144			2,491,519
Total gross profit - combined	$	163,410		$	346,520

Production at the Company’s Mexico operation only brings antimony up to an intermediate stage, which must then be shipped to the United States operation for finishing.  Revenues are not recorded as no sales occur at the intermediate stage.