10-Q: UAMY Q2: Revenue Soars, Net Income Turns Positive

United States Antimony Corporation reports significant revenue growth and a return to profitability in Q2 2025, driven by strong antimony prices and strategic expansions.

Summary

• Total revenues for the six months ended June 30, 2025, increased by 160% to $17,525,128, up from $6,735,044 in the prior year period.
• Net income for the six months ended June 30, 2025, was $728,079, a significant improvement from a net loss of $(119,976) in the same period last year.
• Antimony segment revenue increased by 203% to $15,562,690 for the six months ended June 30, 2025, primarily due to a 282% increase in average sales price per pound to $22.14, despite a 21% decline in sales volume.
• Zeolite segment revenue increased by 24% to $1,982,977 for the six months ended June 30, 2025, driven by higher sales volume and an 8% increase in average sales price per ton to $288.
• Gross profit for the six months ended June 30, 2025, rose by 183% to $5,209,275, compared to $1,839,708 in the prior year.
• Cash and cash equivalents decreased to $5,708,660 at June 30, 2025, from $18,172,120 at December 31, 2024, primarily due to increased inventory and capital expenditures.
• Net cash used in operating activities was $(2,356,986) for the six months ended June 30, 2025, compared to $630,966 provided in the prior year, largely due to a significant increase in antimony inventory.
• Capital expenditures totaled $7,394,073 for the six months ended June 30, 2025, including $5,025,120 for the Fostung Properties in Ontario, Canada.
• The company raised $5,064,483 from the sale of common stock and $2,225,411 from warrant exercises during the six months ended June 30, 2025.
• Shareholders approved an increase in shares reserved for the Equity Incentive Plan from 8,700,000 to 23,700,000 on July 31, 2025.
• The company's common stock began trading on the NYSE Texas on July 1, 2025, in addition to its primary listing on NYSE American.

Sentiment

Score: 8

Explanation: The company demonstrated strong financial performance, turning a net loss into a profit with significant revenue and gross profit growth. Strategic acquisitions and capital raises position it for future expansion. While cash flow from operations was negative due to inventory build-up and capital expenditures, the company successfully raised capital to fund these investments. The disclosed material weakness in internal controls is being actively addressed by management.

Positives

• Significant revenue growth of 160% for the six months ended June 30, 2025, reaching $17,525,128.
• Achieved net income of $728,079 for the six months ended June 30, 2025, reversing a net loss of $(119,976) in the prior year.
• Antimony segment revenue increased by 203%, driven by a substantial 307% increase in average sales price per pound to $28.32 in Q2 2025.
• Zeolite segment revenue grew by 24% for the six-month period, with gross profit turning positive from a loss in the prior year, indicating improved operational efficiency and customer relationships.
• Gross profit increased by 183% for the six-month period, reflecting improved margins.
• Successful capital raising activities, including $5,064,483 from common stock sales and $2,225,411 from warrant exercises.
• Secured a $5,000,000 line of credit facility in April 2025 with no outstanding borrowings as of June 30, 2025, providing additional liquidity.
• Strategic acquisitions of mining claims and leases in Alaska, Montana, and Ontario, Canada, aimed at expanding operations and product offerings.
• Extension of the Bear River Zeolite (BRZ) Lease through December 31, 2034, securing long-term access to a high-quality zeolite deposit.
• Favorable ruling from Mexico's appellate court regarding the 2013 income tax assessment, with no tax due.

Negatives

• Cash and cash equivalents decreased significantly by $12,463,460 from December 31, 2024, to June 30, 2025.
• Net cash used in operating activities was $(2,356,986) for the six months ended June 30, 2025, a shift from cash provided by operations in the prior year, primarily due to a large increase in antimony inventory.
• Working capital decreased by $6,992,739 from December 31, 2024, to June 30, 2025.
• Antimony sales volume declined by 21% for the six months ended June 30, 2025, despite higher prices.
• Zeolite revenue in Q2 2025 declined by 11% compared to Q2 2024, predominantly due to a 17% decrease in tons sold.
• Management concluded that disclosure controls and procedures were not effective due to the small size of the accounting staff, indicating a material weakness in internal controls.

Risks

• The company's properties are in the exploration stage, with no guarantee of mineral resources or reserves for properties without a completed Technical Report Summary (TRS) or feasibility study.
• Mining exploration, development, and production may not be economically viable, especially for properties without established proven or probable reserves.
• Processing and selling ore from new suppliers and internal sources may not be profitable.
• Increased risks associated with non-domestic supply of antimony ore, including credibility/accuracy of information, delivery, and product content/quantity/grade.
• Fluctuations in prices for antimony and precious metals can significantly impact profitability.
• The company's ability to obtain additional capital to develop resources is not assured.
• Exposure to macroeconomic factors, new tariffs, changes in trade policy, or escalation of trade tensions.
• Mineral operations are subject to existing and new government regulations within and outside the United States.
• Potential for continued operational losses (though currently profitable, this is a general risk factor mentioned).
• Possible dilution of common stock from additional financing activities.
• Operational interruptions due to labor disputes, fires, flooding, landslides, power outages, explosions, unscheduled downtime, transportation interruptions, war, and terrorist activities.
• Risks related to global pandemics, natural disasters, or civil unrest.
• Mexican labor and other issues regarding safety and organized control over properties in Mexico.
• Uncertainty regarding the positions and associated outcomes of Mexican and other taxing authorities.
• Cybersecurity and business disruptions.
• Ineffective use of cash and cash equivalents, including proceeds from stock offerings.
• Potential conflicts of interest with the company's management.

Future Outlook

The company intends to fund its cash requirements with existing cash, cash generated from operations, and capital raised from various investment vehicles. It believes these sources are sufficient for the next 12 months. The company is focused on generating cash flow to fund its mission and is considering the acquisition of additional property in Alaska for operating activities. It also notes the potential for U.S. Government funding for facility expansion and mining exploration and development, though this is not assured. The company continues to review operational and financial results for opportunities to improve cash flow.

Management Comments

• Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically and through strategic acquisitions and partnerships to increase shareholder value.
• The Company is focused on generating cash flow to fund its mission.
• We intend to fund our cash requirements with our cash and cash equivalents, cash generated from our operations, and capital raised from various investment vehicles and methods and believe cash from these sources are sufficient to cover our requirements for the next 12 months.

Industry Context

The company operates in the critical minerals sector, with antimony being on the U.S. Critical Minerals List. It positions itself as the only U.S. domestic operating, permitted processor of antimony products and operates the largest and only current antimony smelter in Mexico. Its zeolite product is highlighted as one of the best globally due to its high cation exchange capacity (CEC) and other beneficial properties, indicating a strong competitive advantage in that niche. The company's expansion efforts into Alaska, Montana, and Ontario, Canada, reflect a broader industry trend towards securing domestic and near-shore mineral supplies.

Comparison to Industry Standards

• The company states its BRZ zeolite is regarded as one of the best zeolites in the world due to its high cation exchange capacity (CEC) of approximately 180-220 meq/100 gr., its hardness, high clinoptilolite content, absence of clay minerals, and low sodium content. This positions it favorably against general zeolite products in the market.
• The company claims to be the only U.S. domestic operating, permitted processor of antimony products, and its smelter in Coahuila, Mexico, is described as the largest and only current operating smelter for antimony products in Mexico. This suggests a strong competitive position within the North American antimony market, facing limited direct domestic competition.

Management Changes

Corporate Governance

Legal Proceedings

• The company is not a party to any material legal proceedings.
• A Mexican tax assessment from 2019 (approximately $865,000 USD as of Dec 31, 2019, updated to $1,320,000 USD as of Dec 31, 2023) was ruled in favor of the company by Mexico's appellate court in March 2024, with no assessment due. The lower court issued a final ruling in May 2024, supporting the company's position, though the possibility for SAT to re-open the audit remains open pending a final ruling from the appellate court.

Stakeholder Impact

• **Shareholders**: Positive impact from significant revenue growth, return to profitability, and strategic acquisitions. Potential for future dilution from increased share pool for equity incentives and ongoing capital raises. Texas reincorporation will change governing laws for shareholder rights but is not expected to impact business operations.
• **Employees**: New hires in accounting and finance indicate growth and strengthening of internal functions. Management personnel transferred to Thompson Falls, Montana, for expansion efforts.
• **Customers**: Improved supply reliability and broader customer reach for zeolite products, enhancing customer relationships. Continued ability to provide antimony, a critical mineral, to military and industrial customers.
• **Suppliers**: Increased antimony inventory suggests higher purchasing from suppliers. Risks associated with non-domestic antimony ore suppliers are highlighted, including credibility, delivery, and product quality.
• **Creditors**: The company secured a $5,000,000 line of credit, collateralized by U.S. Treasury Strips, indicating access to additional liquidity. Increased total liabilities reflect growth in accounts payable and asset retirement obligations.

Next Steps

• Complete the Texas Reincorporation, expected to be effective as soon as practicable following the 2025 Annual Meeting.
• Continue exploring and developing newly acquired mining claims and leases in Alaska, Montana, and Ontario, Canada.
• Proceed with the estimated $17,000,000 expansion plans for existing smelting operations in Thompson Falls, Montana.
• Address the identified material weaknesses in disclosure controls and procedures by reviewing accounting software, implementing controls for segregation of duties, automating manual processes, and designing entity-level controls.
• Potentially acquire additional property in Alaska for operating activities, including ore separation and storage, and an office for staff.
• Seek potential U.S. Government funding for facility expansion and mining exploration and development initiatives.

Key Dates

Recommendation

The company has demonstrated exceptional financial turnaround, moving from a net loss to significant profitability driven by robust revenue growth in both its antimony and zeolite segments. Strategic acquisitions of new mining properties in Canada and Alaska, coupled with substantial capital expenditures for smelting operations expansion, indicate a strong commitment to future growth and securing critical mineral supplies. While cash flow from operations was negative due to inventory build-up and investment, the company successfully raised over $7 million through equity and warrant exercises, and has an untapped $5 million line of credit, demonstrating strong access to capital. The identified internal control weakness is being actively addressed by management. Given the strong financial performance, strategic expansion, and the critical nature of its products, the company is well-positioned for continued growth, making it a compelling investment.

Keywords

Antimony, Zeolite, Mining, Critical Minerals, Precious Metals, Mineral Processing, SEC Filing, Quarterly Report, UAMY, Exploration, Industrial Minerals