United States Antimony Corporation Reports Third Quarter and Nine Months Ended September 30, 2024 Results

Rhea-AI Summary

United States Antimony (NYSE:UAMY) reported Q3 and nine months 2024 financial results, showing revenue growth of 23% to $8.066 million for the first nine months. Gross profit increased 107% to $2.157 million, while operating expenses rose by $1.764 million to $3.285 million. The company reported a net loss of $653k from continuing operations.

Notable developments include improved operations at Bear River Zeolite with 93% efficiency runtime, and antimony prices surging from $5.31 to $17 per pound. The company has ceased operations in Mexico and maintains a strong cash position of $12.97 million. UAMY is actively pursuing new mining leases in Ontario and Alaska for antimony and other critical minerals.

Positive

• Revenue increased 23% YoY to $8.066 million for nine months
• Gross profit grew 107% YoY to $2.157 million
• Cash position improved to $12.97 million, up $1.07 million from December 2023
• Bear River Zeolite achieved 93% efficiency runtime
• Antimony prices increased from $5.31 to $17 per pound

Negative

• Net loss of $653k from continuing operations for nine months
• Operating expenses increased by $1.764 million to $3.285 million
• Loss from continuing operations widened to $683k in Q3 2024 vs $185k in Q3 2023
• Mexico operations shut down and reported as discontinued operations

Insights

Financial Analyst

The Q3 results show mixed performance with some positive developments and challenges. Revenue growth of 23% YOY to $8.07M and gross profit increase of 107% demonstrate operational improvements. However, increased operating expenses of $3.29M led to a net loss of $653k.

Key positives include a strong cash position of $12.97M and strategic moves to secure antimony supply amid global shortages, with antimony prices surging from $5.31 to $17 per pound. The company's pivot to mining in Canada and Alaska, along with 93% efficiency at Bear River Zeolite, positions it well for future growth.

The decision to discontinue Mexican operations eliminates a cash drain, though increased operating costs and project development expenses need monitoring. The balance sheet remains solid, providing flexibility for expansion plans.

Mining Industry Expert

The strategic shift toward North American mining operations is important given the current antimony market dynamics. China's export restrictions and global supply constraints create a significant opportunity for UAMY to establish itself as a key Western supplier. The focus on properties with proven resources rather than exploration reduces risk.

The company's approach to targeting sites with existing infrastructure is pragmatic, potentially leading to faster production timelines. The expansion into seven additional critical minerals beyond antimony diversifies the resource portfolio. However, execution risks remain as the company transitions back into active mining operations.

"The Critical Minerals and ZEO Company"

Revenues Up 23% YOY

Cost of Sales Up 7% YOY

Gross Profit Up 107% YOY

THOMPSON FALLS, MT / ACCESSWIRE / November 12, 2024 / United States Antimony Corporation ("USAC" or the "Company" or "U.S. Antimony Corporation"), (NYSE:UAMY) reported today its third quarter and nine months ended September 30, 2024 financial and operational results.

Revenues for the first nine months of 2024 increased 23%, or $1.527 million, to $8.066 million, compared to the first nine months of 2023, while cost of sales only increased 7%, or $409k, during the same period. This in-turn allowed gross profit to increase 107%, or $1.118 million. Operating expenses increased $1.764 million to $3.285 million for the first nine months of 2024. This is compared to the first nine months of 2023, of which $454k of the increase was non-cash stock compensation. Additionally, $446k was costs associated with new project development in a number of different areas. These projects and initiatives are part of the planned growth and improved overall strategy of the Company. The Company reported a net loss from continuing operations of $653k for the nine months ended September 30, 2024.

When comparing the three months ended September 30, 2024 to the three months ended September 30, 2023, revenues were up 17% to $2.421 million. Gross profit also increased 65% to $426k. Loss from continuing operations was $683k for the three months ended September 30, 2024 compared to a loss of $185k in the prior year. This is directly related to your Company's expanded scope of operations.

We continued to enhance overall operations at Bear River Zeolite during the third quarter of 2024 with both mechanical and equipment improvements, which has led to a 93% efficiency run time and has obviously allowed for higher production throughput. Additionally, substantially improved customer delivery timing has occurred along with the increased facility runtime. These improvements at Bear River Zeolite allow us to grow our zeolite business overall, which has not been the case in the past.

Antimony continues to be a scarce commodity worldwide due to supply issues and trade restrictions imposed on certain countries. This in-turn has caused the worldwide antimony metal market price to increase from $5.31 per pound on December 31, 2023 to approximately $17 per pound as of November 8, 2024 (see attached chart enclosed). During the third quarter of 2024, we have been in contact with many international suppliers of raw ore to increase our processing of antimony for our customers, most of which only wish to purchase from U.S. suppliers.

As announced on March 11, 2024, the Company completely shut down its operational activities in Mexico and those operations are now reported as a "Discontinued Operations". The historical cash drain of these operations on the Company ceased with this decision. The Company continues to maintain an excellent balance sheet with our cash position of the Company at September 30, 2024 of $12.97 million, up $1.07 million from December 31, 2023.

Commenting on the Third Quarter 2024 operational and financial results, Mr. Gary C. Evans, Chairman and Co-CEO of U.S. Antimony Corporation stated, "Your management team and board have been extremely busy during the third quarter of this year in improving both divisions of the company, as well as the future prospects of U.S. Antimony. However, I give us a C+ or B- grade on our financial results reported today.

It has become evident that antimony ore worldwide is in short supply. Otherwise, you would not see almost a tripling in value of this commodity just in the last 90 days. China has stopped shipments of antimony to other countries, including the USA as of September 15, 2024.

"HOUSTON, WE HAVE A PROBLEM!"

Over the past several months, your management team has interacted with no less than 54 different parties spanning 16 different countries in our goal of sourcing new antimony supply. There is currently none available in the USA. Our competition is the People's Republic of China, the 1,000-pound gorilla in the room. U.S. Antimony made the decision in the third quarter to become a miner again. New mining leases have been taken in Ontario, Canada and the state of Alaska for not only antimony, but seven other critical minerals. We are not done. Expect more announcements concerning our active leasing program in the near future.

Telling our story to Wall Street has been a significant objective during the third quarter. Your management team participated in five institutional and retail investor conferences during the third quarter. Shareholders should anticipate new equity research coverage on your Company occurring from investment banking firms prior to year-end. Our story is being told and heard, hence both share price and volume improvements were achieved in a significant way during the quarter. A minimum of two more investor conferences are planned prior to year end.

We are seeking both governmental and private capital funding to significantly expand our footprint as a miner and mid-stream/downstream processor. We are only seeking existing mining properties where antimony and other critical minerals have already been found. We are not explorers but harvesters of existing known resources. Infrastructure being in place is paramount to our business plan whether it be roads, railroads, or waterways. The raw material must be able to economically reach our facilities located in Philipsburg and Thompson Falls, Montana. We are on a fast track and need material like yesterday. It is our goal to be bringing raw antimony material to our Montana processing facilities in 2025.

Other accomplishments during the third quarter include adding bench strength to our management team. Two new Vice Presidents, one in the Antimony Division and one in IR and Global Sales were added. We also brought on board a new Technical Advisory Director, Dr. Fred L. "Pete" Bunger, a world renown zeolite specialist and expert. We can and will do better. We have the assets, we have the talent, we have the money as well as access to additional capital when needed, and we have an environment that will allow success. Now is the time to execute!"

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

		For the three months ended								For the nine months ended
		September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2023
REVENUES		$	2,421,020			$	2,063,558			$	8,066,190			$	6,539,519
COST OF REVENUES			1,995,252				1,805,150				5,908,877				5,499,709
GROSS PROFIT			425,768				258,408				2,157,313				1,039,810
OPERATING EXPENSES:
General and administrative			588,816				290,045				1,521,576				678,735
Salaries and benefits			429,438				228,967				956,402				502,071
Professional fees			165,839				103,127				564,525				340,194
(Gain) loss on sale or disposal of property, plant and equipment, net			(16,252	)			-				1,242				-
Other operating expenses			102,970				-				240,961				-
TOTAL OPERATING EXPENSES			1,270,811				622,139				3,284,706				1,521,000
LOSS FROM OPERATIONS			(845,043	)			(363,731	)			(1,127,393	)			(481,190	)
OTHER INCOME (EXPENSE):
Interest and investment income			157,757				176,656				460,529				466,809
Trademark and licensing income			6,553				6,117				21,281				25,023
Other miscellaneous income (expense)			(2,364	)			(3,827	)			(7,117	)			74,922
TOTAL OTHER INCOME			161,946				178,946				474,693				566,754
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			(683,097	)			(184,785	)			(652,700	)			85,564
Income tax expense			-				-				-				-
INCOME (LOSS) FROM CONTINUING OPERATIONS			(683,097	)			(184,785	)			(652,700	)			85,564
Discontinued operations:
Loss from discontinued operations before income taxes			(44,412	)			(1,459,743	)			(194,785	)			(2,873,541	)
Income tax expense			-				-				-				-
Loss from discontinued operations			(44,412	)			(1,459,743	)			(194,785	)			(2,873,541	)
Net loss			(727,509	)			(1,644,528	)			(847,485	)			(2,787,977	)
Preferred dividends			(1,875	)			(1,875	)			(5,625	)			(5,625	)
Net loss available to common stockholders		$	(729,384	)		$	(1,646,403	)		$	(853,110	)		$	(2,793,602	)
Basic and diluted earnings per common share:
Income (loss) from continuing operations		$	(0.01	)		$nil				$	(0.01	)		$nil
Income (loss) from discontinued operations		$nil				$	(0.01	)		$nil				$	(0.03	)
Net income (loss)		$	(0.01	)		$	(0.01	)		$	(0.01	)		$	(0.03	)
Weighted average shares outstanding:
Basic			108,438,984				107,647,317				108,262,091				107,519,786
Diluted			108,438,984				107,647,317				108,430,139				107,519,786

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)

		September 30, 2024				December 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	12,969,132			$	11,899,574
Certificates of deposit			22,257				72,898
Accounts receivable, net			791,557				625,256
Inventories, net			966,814				1,019,154
Prepaid expenses and other current assets			177,283				92,369
Current assets held for sale			74,560				366,955
Total current assets			15,001,603				14,076,206
Properties, plants and equipment, net			7,751,348				7,765,045
Operating lease right-of-use asset			764,035				-
Restricted cash for reclamation bonds			98,234				55,061
Other assets			20,217				18,098
Noncurrent assets held for sale			6,117,610				6,180,585
Total assets		$	29,753,047			$	28,094,995
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	1,212,397			$	330,147
Accrued liabilities			164,917				109,341
Accrued liabilities - directors			159,165				124,810
Royalties payable			105,174				153,429
Current portion of operating lease liability			483,211				-
Long-term debt, current portion			131,105				28,443
Current liabilities held for sale			148,833				151,288
Total current liabilities			2,404,802				897,458
Noncurrent liabilities:
Noncurrent operating lease liability			299,435				-
Long-term debt, net of current portion			228,921				-
Stock payable to directors			-				38,542
Asset retirement obligations			1,156,374				1,101,561
Noncurrent liabilities held for sale			536,466				536,466
Total liabilities			4,625,998				2,574,027
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock $0.01 par value, 10,000,000 shares authorized:
Series A: 0 shares issued and outstanding			-				-
Series B: 750,000 shares issued and outstanding (liquidation preference $973,125 and $967,500, respectively)			7,500				7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both years)			1,779				1,779
Series D: 0 shares issued and outstanding			-				-
Common stock, $0.01 par value, 150,000,000 shares authorized; 108,438,984 and 107,647,317 shares issued and outstanding, respectively			1,084,389				1,076,472
Additional paid-in capital			64,299,485				63,853,836
Accumulated deficit			(40,266,104	)			(39,418,619	)
Total stockholders' equity			25,127,049				25,520,968
Total liabilities and stockholders' equity		$	29,753,047			$	28,094,995

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)

		For the nine months ended
		September 30, 2024				September 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES OF CONTINUING OPERATIONS:
Net income (loss) from continuing operations		$	(652,700	)		$	85,564
Adjustments to reconcile net income (loss) from continuing operations to
net cash provided (used) by operating activities of continuing operations:
Depreciation and amortization			340,217				247,882
Accretion of asset retirement obligation			54,813				1,125
Noncash operating lease expense			23,442				-
(Gain) loss on sale or disposal of property, plant and equipment, net			1,242				-
Write-down of inventory to net realizable value			63,574				-
Share-based compensation			453,566				-
Allowance for doubtful accounts on accounts receivable			(30,746	)			43,560
Other noncash items			(16,107	)			(11,573	)
Changes in operating assets and liabilities:
Accounts receivable			(135,555	)			(649,540	)
Inventories, net			(11,234	)			(77,749	)
Prepaid expenses and other current assets			(84,914	)			(99,367	)
Other assets			(2,119	)			-
Accounts payable			882,250				(63,005	)
Accrued liabilities			55,576				(51,773	)
Accrued liabilities - directors			34,355				206,282
Stock payable to directors			(38,542	)			-
Change in operating lease liability			(4,831	)			-
Royalties payable			(48,255	)			(327,138	)
Net cash provided (used) by operating activities of continuing operations			884,032				(695,732	)
CASH FLOWS FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS:
Proceeds from redemption of certificates of deposit			50,641				-
Proceeds from sale of properties, plants and equipment			314,125				-
Purchases of properties, plant, and equipment			(223,058	)			(1,337,398	)
Net cash provided (used) by investing activities of continuing operations			141,708				(1,337,398	)
CASH FLOWS FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS:
Payments on dividends payable			-				(787,730	)
Principal payments on long-term debt			(71,139	)			(70,049	)
Net cash used by financing activities of continuing operations			(71,139	)			(857,779	)
Net cash flows provided (used) by continuing operations			954,601				(2,890,909	)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Net cash provided (used) by operating activities			158,130				(3,122,155	)
Net cash used by investing activities			-				(182,322	)
Net cash flows provided (used) by discontinued operations			158,130				(3,304,477	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH			1,112,731				(6,195,386	)
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		$	13,067,366			$	12,922,280
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Common stock buyback and retirement		$	-			$	202,980
Conversion of Preferred Series D to Common Stock			-			$	16,927
Equipment purchased with note payable		$	402,722			$	-
Noncash recognition of new leases		$	787,477			$	-

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. 

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 and Form 10-Q 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 Corp.
PO Box 643
47 Cox Gulch Rd.
Thompson Falls, Montana 59873-0643
Jonathan Miller, Vice President - IR
E-Mail: Jmiller@usantimony.com
Phone: 406-606-4117

SOURCE: United States Antimony Corporation

View the original press release on accesswire.com

FAQ

What was UAMY's revenue growth in the first nine months of 2024?

UAMY's revenue grew 23% to $8.066 million in the first nine months of 2024 compared to the same period in 2023.

How much did UAMY's antimony prices increase in 2024?

Antimony prices increased from $5.31 per pound on December 31, 2023, to approximately $17 per pound as of November 8, 2024.

What was UAMY's cash position as of September 30, 2024?

UAMY's cash position was $12.97 million as of September 30, 2024, up $1.07 million from December 31, 2023.

What happened to UAMY's Mexico operations in 2024?

UAMY completely shut down its operational activities in Mexico as announced on March 11, 2024, and these operations are now reported as Discontinued Operations.