5. Inventories

12 Months Ended

Dec. 31, 2012

InventoriesAbstract

5. Inventories

The major components of the Company's inventories at December 31, 2012 and 2011 were as follows:

	2012		2011
Antimony Metal	$	152,821	$	152,026
Antimony Oxide		295,613		180,404
Antimony Concentrates		46,008
Antimony Ore		500,192		644,113
Total antimony		994,634		976,543
Zeolite		197,555		90,270
	$	1,192,189	$	1,066,813

At December 31, 2012 and 2011, antimony metal consisted principally of recast metal from antimony-based compounds, and metal purchased from foreign suppliers.  Antimony oxide inventory consisted of finished product oxide held at the Company's plant. Antimony concentrates and ore was held primarily at sites in Mexico and is essentially raw material, carried at cost.   The Company's zeolite inventory consists of salable zeolite material held at BRZ's Idaho mining and production facility, and is carried at cost.

As we processed purchased ore from our inventory n Mexico, we became aware that, due to analytical problems, we were over paying for direct shipping ore.  We received credits from some of our Mexican ore suppliers for previously purchased ore.  As part of the negotiations, we exercised our option to purchase the Soyatal mine properties for approximately $1.3MM.  We are obligated to make payments of $200,000 annually through 2018, and a final payment of $100,000 is due in 2019.  This obligation is recorded in long-term debt as Soyatal Mine. We have credits of approximately $342,000 recorded in other assets for advances to the previous Soyatal operator which can be used as a payment on our debt at a rate of $100,000 per year, or offset from future ore purchase payments which may become due to the suppliers.