8-K: US Antimony Corp Reports Q3 Growth Amidst Net Loss

United States Antimony Corporation announced a 16% revenue increase to $10.1 million and a 113% rise in gross profit to $4.3 million for Q3 2026, driven by DLA shipments and zeolite market growth, though a net loss of $9.5 million was reported.

Summary

• United States Antimony Corporation (USAC) reported Q3 2026 results with revenues of $10.1 million, a 16% increase year-over-year.
• Gross profit surged 113% to $4.3 million, with gross margin improving to 42% from 23% in Q3 2025.
• Antimony pounds sold increased 68% to 468,842 pounds, including 162,000 pounds of metal ingots accepted by the DLA, contributing $5.1 million in revenue.
• Zeolite segment revenue grew 55% to $1.0 million, with tons sold up 54%.
• The company reported a net loss of $9.5 million for the quarter, impacted by non-cash expenses and an unrealized loss on an investment.
• USAC expects to sell 1.68 to 1.81 million pounds of antimony in full-year 2026, a 24% increase from 2025.
• Liquidity remains strong with approximately $90 million in cash, marketable securities, and authorized grant funding.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive report, highlighting significant revenue and gross profit increases, improved margins, and strong liquidity, despite a net loss. The company is making strategic progress in critical minerals and vertical integration.

Positives

• Revenue increased 16% to $10.1 million in Q3 2026 compared to Q3 2025.
• Gross profit increased 113% to $4.3 million in Q3 2026, with gross margin expanding to 42% from 23%.
• Antimony pounds sold increased 68% year-over-year in Q3 2026.
• Zeolite segment revenue grew 55% year-over-year to $1.0 million.
• The company has strong liquidity, with approximately $90 million in cash, marketable securities, and authorized grant funding as of September 30, 2026.
• Significant capital expenditures of $28.4 million were invested in expanding the domestic antimony platform.
• The company published an Initial Assessment-level Technical Report Summary for its Nolan Creek project, reporting significant resource values.
• A $100 million share repurchase program was authorized, with $98.3 million remaining as of September 30, 2026.

Negatives

• The company reported a net loss of $9.5 million for Q3 2026.
• The net loss for the nine months ended September 30, 2026, was $20.7 million.
• Operating expenses increased to $10.3 million in Q3 2026 from $6.9 million in Q3 2025, primarily due to higher mineral exploration and G&A costs.
• The average antimony selling price declined 34% to $18.83 per pound in Q3 2026 compared to $28.72 per pound in Q3 2025.
• An unrealized loss of $3.8 million was recorded on the investment in Larvotto Resources Limited in Q3 2026.
• The company withdrew its prior 2026 revenue guidance of $60 million to $75 million.

Risks

• Forward-looking statements are subject to risks and uncertainties, including fluctuations in market prices and demand for antimony and zeolite.
• Dependence on the DLA contract and the U.S. government's ability to modify, delay, reduce, or terminate orders.
• Delays in the sampling, inspection, or acceptance of shipments by the DLA.
• The risk that assumptions underlying sales volume guidance prove incorrect.
• Challenges in completing capital projects on time and budget and achieving expected production rates.
• Availability, quality, and cost of third-party antimony feedstock.
• Volatility in the market value of and currency exposure relating to the investment in Larvotto Resources Limited.
• Changes in domestic and global economic conditions and geopolitical developments.

Future Outlook

The company expects to sell 1.68 million to 1.81 million pounds of antimony in full-year 2026, an increase of approximately 24% from 2025. This includes projected DLA metal ingots and industrial antimony products. Zeolite sales are expected to be between 17,500 to 18,500 tons. The company anticipates further expansion of antimony product volumes in 2027 and beyond due to increased capacity utilization and new processing capabilities.

Management Comments

• "During the third quarter, we began to see the progress we have made across all of our operations translate into stronger financial results."
• "That pace [DLA shipments] was slower than we anticipated back in August, when we expected $9 to $10 million of DLA revenues during the third quarter."
• "Since then, we have cut the time from sampling to payment from as long as 124 days to about 70 days, and while the timing of each approval and acceptance ultimately rests with the DLA, we expect the process to continue to become more routine as we move into fiscal year 2027."
• "With antimony prices down more than 60% from a year ago, and revenue timing tied to government acceptance dates, we are moving to volume-based guidance beginning today, which better reflects what we do control producing and delivering antimony."
• "As we advance Nolan Creek and Fostung Tungsten, we expect both gold and tungsten to become an increasingly important part of our business."
• "Maintaining our high liquidity is paramount to our success."
• "We believe these investments provide a strong foundation for growth and move us closer to our long-term goal of building a fully vertically integrated U.S. antimony and critical minerals supply chain, the only one existing in the free world."

Industry Context

StockSavvy.ai notes that USAC's focus on critical minerals, particularly antimony, aligns with increasing governmental and industrial demand for secure domestic supply chains. The company's vertical integration strategy, from mining to processing, positions it uniquely outside of China and Russia in the global antimony market.

Comparison to Industry Standards

• The company's gross profit margin of 42% in Q3 2026 is significantly higher than its own margin of 23% in Q3 2025, indicating improved operational efficiency or pricing power on certain contracts.
• The average cost per pound for antimony declined by 51% to $10.19 in Q3 2026 from $20.89 in Q3 2025, reflecting lower feedstock costs and higher throughput, which is a positive trend compared to potential industry-wide increases in raw material costs.
• The company's projected 2026 antimony sales volume of 1.68 to 1.81 million pounds represents a 24% increase over 2025, suggesting growth that may outpace some competitors in the antimony market, especially given the strategic importance of domestic production.
• The average realized price for industrial antimony sales in Q3 2026 was $12.16 per pound, a substantial decrease from $28.72 per pound in Q3 2025, mirroring a broader market trend of declining antimony prices from historic highs, impacting revenue generation across the industry.

Stakeholder Impact

• Shareholders: The net loss and withdrawal of revenue guidance may negatively impact investor sentiment, while strong liquidity and strategic progress offer potential long-term value.
• Employees: Increased operating expenses include higher salaries and benefits, potentially reflecting growth and investment in personnel.
• Suppliers: The company is investing in feedstock and building inventory, indicating continued engagement with suppliers.
• Government (DLA): Continued fulfillment of DLA contracts is a key revenue driver and supports national security objectives.
• Creditors: The company has no borrowings outstanding under its margin credit line and maintains strong liquidity, suggesting a low risk of default.

Next Steps

• Fulfill outstanding DLA orders.
• Increase shipments to industrial customers.
• Continue ramping up domestic processing capabilities.
• Grow the zeolite business.
• Plan for an approximately 1,000-ton exploration bulk sample at Nolan Creek.
• Continue planning for the hydrometallurgical joint venture with Americas Gold and Silver Corporation.
• Further modernize existing machinery and equipment.
• Continue developing the critical minerals portfolio in the U.S. and Canada.

Key Dates

Recommendation

The company shows significant operational improvements with increased volumes and margins, and maintains strong liquidity. However, the widening net loss, withdrawal of revenue guidance, and delays in DLA acceptance introduce considerable uncertainty. A 'hold' recommendation reflects a balance between these positive operational developments and the ongoing financial challenges and execution risks.

Keywords

antimony, critical minerals, zeolite, DLA, Defense Production Act, revenue, gross profit, net loss