United States Antimony Corporation Reports First Quarter 2024 Results
United States Antimony (NYSE American: UAMY) reported a strong first quarter 2024, with revenues up 28% to $2.83 million compared to Q1 2023. Despite an 11% increase in cost of sales, gross profit surged 108%. However, operating expenses rose by 183% to $892k, including $205k in non-cash stock compensation. Net income for the quarter was $86k. No federal grant income was reported this quarter, unlike $85k in Q1 2023. The company ceased Mexican operations, now classified as discontinued. As of March 31, 2024, USAC's cash position increased to $11.94 million. The company is optimizing its Bear River Zeolite operations despite experiencing downtime, and the global antimony metal price rose 34% since December 2023. Management is also exploring new acquisitions and mineral leasing activities.
- Revenues increased by 28% to $2.83 million compared to Q1 2023.
- Gross profit surged by 108%, or $428k, quarter over quarter.
- Net income of $86k reported for Q1 2024.
- Cash position increased by $42k to $11.94 million as of March 31, 2024.
- Ceased unprofitable Mexican operations, reducing overhead costs.
- Global antimony metal price increased by 34% since December 2023.
- Operating expenses rose by 183% to $892k, including $205k in non-cash stock compensation.
- No federal grant income reported in Q1 2024, unlike $85k in Q1 2023.
- Bear River Zeolite operations experienced over 30 days of downtime in Q1 2024.
Insights
The first quarter 2024 results for U.S. Antimony Corporation show significant financial improvements. Revenues increased by
However, operating expenses surged by
The company reported net income of
The cash position improved slightly to
In conclusion, the financial performance shows a mixed but generally positive picture. The revenue and gross profit growth are promising, although the spike in operating expenses needs to be monitored closely. Overall, the financials suggest that the company is on a stable path but must continue to manage costs effectively.
The company's decision to cease operations in Mexico and label them as 'Discontinued Operation' is a strategic move aimed at reducing overheads and focusing on more profitable U.S.-based operations. This decision eliminates a historical financial drain, potentially boosting overall profitability and operational efficiency. The move should positively affect the company's long-term sustainability.
The strong cash position of
The operational improvements at Bear River Zeolite, despite some downtime, suggest a focused effort on enhancing production capabilities and customer service. These improvements are likely to yield better financial outcomes in future quarters.
Overall, these strategic shifts and operational improvements are likely to strengthen the company's market position and financial health in the long term.
The operational highlights from U.S. Antimony Corporation indicate important changes that could impact future performance. The discontinuation of Mexican operations, which were a historical drain, is a significant move to streamline focus and minimize losses. This decision reflects a shift towards more efficient operations.
The reported downtime at Bear River Zeolite is a concern, but the company's proactive measures by improving mechanical and equipment processes are steps in the right direction. Enhancements in throughput, order delivery times and safety are vital for long-term operational stability and efficiency.
The rise in antimony prices also bodes well for the company's U.S. operations, providing a more favorable market environment. These factors combined suggest a potentially more resilient and efficient operational structure moving forward.
In summary, while some challenges remain, particularly with operational downtime, the strategic decisions and ongoing improvements may set a stronger foundation for future growth and efficiency.
THOMPSON FALLS, MT / ACCESSWIRE / May 15, 2024 / United States Antimony Corporation ("USAC" or the "Company" or "U.S. Antimony Corporation"), (NYSE American:UAMY) reports today its first quarter 2024 financial and operational results. Revenues for the first quarter of 2024 increased
Additionally, the company reported federal grant income in the first quarter of last year of
As the Company announced on March 11, 2024, all operational activities in Mexico have ceased and this subsidiary is now reported as a "Discontinued Operation". Overhead was substantially reduced, and business brokers are currently being interviewed to handle future disposition of these assets and/or entities. The historical drain of these operations on USAC have ceased with this decision.
The cash position of the Company at March 31, 2024 was
Commenting on the First Quarter 2024 operational and financial results, Mr. Gary C. Evans, Chairman and Co-CEO of U.S. Antimony Corporation stated, "We believe this first quarter of 2024 was truly a turning point for the Company. We discontinued the historical money losing operations in Mexico and continued to improve the operational performance of the U.S. based assets. The financial results reported today exemplify that occurrence. Most importantly, we have also protected our strong cash position and continue to maintain an extremely liquid balance sheet."
While we are active in making necessary management and supervisor changes at Bear River Zeolite (three new hires since January 29, 2024) and continue to enhance operations with both mechanical and equipment changes having been made, we still experienced over 30 days of downtime during the first quarter of 2024. This is unacceptable. However, we are seeing a dramatic improvement in the overall operating environment at Bear River Zeolite which is leading to higher throughput, improved customer order delivery times, and safety. These necessary improvements will be further observed in future financial reports to our shareholders. The demand for this universally accepted hard mineral continues to expand with a wide diversity of customers. It is also noteworthy that the worldwide antimony metal market price has increased over
As mentioned in our most recent conference call held on April 17, 2024, management is actively pursuing potential acquisition(s) in addition to new mineral leasing activities for both antimony and zeolite within the United States. Due to confidentiality and competitive reasons surrounding these ongoing activities, the Company is not yet in a position to further disclose these various transactions.
About USAC:
United States Antimony Corporation and its subsidiaries in the U.S. and Mexico ("USAC", the "Company", "Our", "Us", or "We") sell processed antimony, zeolite, and precious metals products in the U.S. and Canada. The Company processes antimony ore primarily into antimony oxide, antimony metal, and antimony trisulfide. Our antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Our antimony metal is used in bearings, storage batteries, and ordnance. Our antimony trisulfide is used as a primer in ammunition. In its operations in Idaho, the Company mines and processes zeolite, a group of industrial minerals used in soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications. We recover certain amounts of precious metals, primarily gold and silver, at our plant in Montana from antimony concentrates.
United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| For the three months ended | ||||||||
| March 31, 2024 | March 31, 2023 | |||||||
REVENUES | $ | 2,831,390 | $ | 2,210,844 | ||||
COST OF REVENUES | 2,008,486 | 1,816,001 | ||||||
GROSS PROFIT | 822,904 | 394,843 | ||||||
OPERATING EXPENSES: | ||||||||
General and administrative | 455,394 | 141,271 | ||||||
Salaries and benefits | 241,605 | 127,692 | ||||||
Professional fees | 177,157 | 46,004 | ||||||
Loss on disposal of property, plant and equipment | 17,494 | - | ||||||
TOTAL OPERATING EXPENSES | 891,650 | 314,967 | ||||||
INCOME (LOSS) FROM OPERATIONS | (68,746 | ) | 79,876 | |||||
OTHER INCOME (EXPENSE): | ||||||||
Interest and investment income | 150,851 | 122,372 | ||||||
Trademark and licensing income | 6,368 | 7,525 | ||||||
Other miscellaneous income (expense) | (2,372 | ) | 83,608 | |||||
TOTAL OTHER INCOME | 154,847 | 213,505 | ||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 86,101 | 293,381 | ||||||
Income tax expense | - | - | ||||||
INCOME FROM CONTINUING OPERATIONS | 86,101 | 293,381 | ||||||
Discontinued operations: | ||||||||
Loss from discontinued operations before income taxes | (408,869 | ) | (1,100,365 | ) | ||||
Income tax expense | - | - | ||||||
Loss from discontinued operations | (408,869 | ) | (1,100,365 | ) | ||||
Net loss | (322,768 | ) | (806,984 | ) | ||||
Preferred dividends | (1,875 | ) | (1,875 | ) | ||||
Net loss available to common stockholders | $ | (324,643 | ) | $ | (808,859 | ) | ||
Basic and diluted earnings per common share: | ||||||||
Income from continuing operations | $ | nil | $ | nil | ||||
Loss from discontinued operations | $ | nil | $ | (0.01 | ) | |||
Net loss | $ | nil | $ | (0.01 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic | 107,908,306 | 107,260,472 | ||||||
Diluted | 107,908,306 | 107,260,472 | ||||||
United States Antimony Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
| March 31, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 11,941,298 | $ | 11,899,574 | ||||
Certificates of deposit | 22,216 | 72,898 | ||||||
Accounts receivable, net | 1,057,742 | 625,256 | ||||||
Inventories, net | 653,010 | 1,019,154 | ||||||
Prepaid expenses and other current assets | 117,167 | 92,369 | ||||||
Current assets held for sale | 215,110 | 366,955 | ||||||
Total current assets | 14,006,543 | 14,076,206 | ||||||
Properties, plants and equipment, net | 7,709,812 | 7,765,045 | ||||||
Restricted cash for reclamation bonds | 55,060 | 55,061 | ||||||
Other assets | 18,098 | 18,098 | ||||||
Non-current assets held for sale | 6,215,574 | 6,180,585 | ||||||
Total assets | $ | 28,005,087 | $ | 28,094,995 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 403,441 | $ | 330,147 | ||||
Accrued liabilities | 117,822 | 109,341 | ||||||
Accrued liabilities - directors | 167,059 | 124,810 | ||||||
Royalties payable | 52,527 | 153,429 | ||||||
Long-term debt, current portion | 7,170 | 28,443 | ||||||
Current liabilities held for sale | 158,103 | 151,288 | ||||||
Total current liabilities | 906,122 | 897,458 | ||||||
Stock payable to directors | 38,542 | 38,542 | ||||||
Asset retirement obligations | 1,119,832 | 1,101,561 | ||||||
Non-current liabilities held for sale | 536,466 | 536,466 | ||||||
Total liabilities | 2,600,962 | 2,574,027 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock | ||||||||
Series A: 0 shares issued and outstanding | - | - | ||||||
Series B: 750,000 shares issued and outstanding (liquidation preference | 7,500 | 7,500 | ||||||
Series C: 177,904 shares issued and outstanding (liquidation preference | 1,779 | 1,779 | ||||||
Series D: 0 shares issued and outstanding | - | - | ||||||
Common stock, | 1,084,389 | 1,076,472 | ||||||
Additional paid-in capital | 64,051,844 | 63,853,836 | ||||||
Accumulated deficit | (39,741,387 | ) | (39,418,619 | ) | ||||
Total stockholders' equity | 25,404,125 | 25,520,968 | ||||||
Total liabilities and stockholders' equity | $ | 28,005,087 | $ | 28,094,995 | ||||
United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| March 31, 2024 | March 31, 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES OF CONTINUING OPERATIONS: | ||||||||
Net income from continuing operations | $ | 86,101 | $ | 293,381 | ||||
Adjustments to reconcile net income from continuing operations to net cash | ||||||||
provided (used) by operating activities of continuing operations: | ||||||||
Depreciation and amortization | 106,147 | 69,332 | ||||||
Accretion of asset retirement obligation | 18,271 | 375 | ||||||
Loss on disposal of property, plant, and equipment | 17,494 | - | ||||||
Write down of inventory to net realizable value | 80,143 | - | ||||||
Share-based compensation | 205,925 | - | ||||||
Other non-cash items | (15,695 | ) | 2,041 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (432,486 | ) | (919,819 | ) | ||||
Inventories, net | 286,001 | (76,504 | ) | |||||
Prepaid expenses and other current assets | (24,798 | ) | (141,852 | ) | ||||
Accounts payable | 73,294 | 158,942 | ||||||
Accrued liabilities | 8,481 | (55,425 | ) | |||||
Accrued liabilities - directors | 42,249 | 19,746 | ||||||
Royalties payable | (100,902 | ) | (419,191 | ) | ||||
Net cash provided (used) by operating activities of continuing operations | 350,225 | (1,068,974 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS: | ||||||||
Proceeds from redemption of certificates of deposit | 50,682 | - | ||||||
Purchases of properties, plant, and equipment | (52,713 | ) | (501,202 | ) | ||||
Net cash used by investing activities of continuing operations | (2,031 | ) | (501,202 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS: | ||||||||
Payments on dividends payable | - | (787,730 | ) | |||||
Principal payments on long-term debt | (21,273 | ) | (23,022 | ) | ||||
Net cash used by financing activities of continuing operations | (21,273 | ) | (810,752 | ) | ||||
Net cash flows provided (used) by continuing operations | 326,921 | (2,380,928 | ) | |||||
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||||||||
Net cash used by operating activities | (285,198 | ) | (1,204,818 | ) | ||||
Net cash used by investing activities | - | (113,568 | ) | |||||
Net cash flows used by discontinued operations | (285,198 | ) | (1,318,386 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 41,723 | (3,699,314 | ) | |||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 11,954,635 | 19,117,666 | ||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 11,996,358 | $ | 15,418,352 | ||||
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||||||||
Common stock buyback and retirement | - | $ | 202,980 | |||||
Conversion of Preferred Series D to Common Stock | - | $ | 16,926 | |||||
Forward-Looking Statements:
Readers should note that, in addition to the historical information contained herein, this press release may contain forward-looking statements within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon current expectations and beliefs concerning future developments and their potential effects on the Company including matters related to the Company's operations, pending contracts and future revenues, financial performance, and profitability, ability to execute on its increased production and installation schedules for planned capital expenditures, and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-K, Form 10-Q, and Form 8-K with the Securities and Exchange Commission.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "pro forma" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance.
Contact:
United States Antimony Corporation
PO Box 643
47 Cox Gulch Rd.
Thompson Falls, Montana 59873-0643
406-606-4117
E-Mail: info@usantimony.com
SOURCE: United States Antimony Corporation
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FAQ
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