Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• United States Antimony Corp (UAMY) reported a 23% increase in sales for the first nine months of 2024, driven by higher antimony sales volume and demand.
• Gross profit for the first nine months of 2024 increased by 107% compared to the previous year, attributed to improved efficiencies and higher sales volume.
• The company has made significant operational improvements in its Zeolite business, enhancing production processes, safety, and equipment, which has led to higher product throughput and improved customer delivery timing.
• United States Antimony Corp (UAMY) has stabilized or improved its working capital levels, including inventory, receivables, and payables.
• The company is actively pursuing new antimony supply sources and has narrowed down potential suppliers to four or five, with samples being analyzed for processing compatibility.

Negative Points

• Operating expenses increased by $1.8 million for the first nine months of 2024, primarily due to non-cash stock compensation, project costs, and salary and board fee expenses.
• The Zeolite business experienced a decrease in gross profit by $255,000 and an increase in operational losses by $562,000 due to increased maintenance and operational costs.
• Discontinued operations in Mexico generated a loss of $195,000 for the first nine months of 2024, despite higher sales.
• The company's antimony supplier had a planned shutdown for two months, which lowered antimony sales in the third quarter and affected average sales price per pound.
• United States Antimony Corp (UAMY) is operating at only 50% capacity at its Thompson Falls facility, limiting its ability to fully capitalize on higher antimony prices.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Signs with UAMY.

Q: Are there any Antimony reserves in the ground at Thompson Falls? If so, how much and how soon can this resource be exploited? A: Gary C Evans, CEO: We have some mining rights, but based on the history of the mine, it does not seem conducive to open it back up. Joe Barsz, Co-CEO, added that the claims are surrounded by forest service land, making it a waste of time due to permitting issues.

Q: Regarding the additional sources of feedstock you're evaluating, how close do you feel you are to securing additional feedstock, and how quickly might this material become available for processing? A: Gary C Evans, CEO: We are getting close and might receive a small container for testing soon. We hope to announce something before the end of the year.

Q: What is the condition of the contract mill, and what conditions must be in place before it will be fully operational? A: Joe Barsz, Co-CEO: The mill is fully operational now and just waiting for feed. Aaron, who has been involved with the mill for a long time, confirms that maintenance has been kept up.

Q: Is the ore supply that historically came from Tech no longer part of your feedstocks? At 50% capacity, has USA been able to benefit from higher antimony prices in Q3 2024? A: Gary C Evans, CEO: 100% of our current material comes from Tech. They were down during the second and part of the third quarter, which affected our supply. We have not benefited much from higher prices due to tolling contracts.

Q: It's been noted by management that they would like to capture the better zeolite margins of the middlemen in the space. What progress is being made in this initiative? A: Gary C Evans, CEO: We are having discussions with a middleman representing a significant portion of our business. We are in the final stages of trying to finish up an LOI and an arrangement, which would improve margins.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.