8-K: US Antimony Q2 2026: Revenue Drops 25% Amidst Price Slump

United States Antimony Corporation reported a 25% year-over-year revenue decline in Q2 2026 to $7.9 million, primarily due to a 52% drop in realized antimony prices, though zeolite segment revenue surged 110%.

Summary

• United States Antimony Corporation (USAC) reported Q2 2026 revenue of $7.9 million, a 25% decrease from $10.5 million in Q2 2025, largely due to a 52% decline in average antimony selling prices.
• Antimony revenue was $5.9 million, with pounds sold increasing 26% to 428,425, but average selling price fell to $13.70 per pound from $28.32.
• The zeolite segment showed strong growth, with revenue increasing 110% year-over-year to $1.9 million, driven by a 114% increase in tons sold.
• Gross profit was $0.6 million (7% margin) compared to $2.8 million (27% margin) in the prior year quarter, impacted by lower antimony prices.
• Operating expenses increased to $7.6 million from $2.8 million, mainly due to higher non-cash share-based compensation and increased salaries.
• The company reported a net income of $0.1 million, which included a $6.8 million unrealized gain from its investment in Larvotto Resources.
• Cash and cash equivalents significantly increased to $41.4 million, with total liquidity (including Treasuries) reaching $62.2 million.
• Inventory increased to $21.6 million, reflecting a strategy to build feedstock for DLA contracts and anticipated commercial demand.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed to negative quarter due to significant revenue decline driven by lower antimony prices, despite strong zeolite growth and improved liquidity. The company faces ongoing price volatility and operational challenges.

Positives

• Zeolite segment revenue increased by 110% year-over-year to $1.9 million, with tons sold up 114%.
• Cash and cash equivalents grew substantially to $41.4 million, and total liquidity reached $62.2 million.
• Working capital doubled to $70 million.
• Total liabilities decreased to $9.6 million with de minimis debt.
• The company delivered its first two shipments of antimony ingots to the DLA in June, totaling approximately 82,000 pounds.
• Institutional ownership increased to over 57%.
• The company is actively developing new mining claims in Alaska and Montana, and advancing its tungsten project in Ontario.
• The company's investment in Larvotto Resources appreciated by $2.7 million post-quarter end.

Negatives

• Revenue for Q2 2026 decreased by 25% year-over-year to $7.9 million, primarily due to lower antimony prices.
• Average realized antimony selling prices declined by approximately 52% to $13.70 per pound.
• Gross margin compressed significantly to 7% from 27% year-over-year.
• Operating expenses more than doubled to $7.6 million, driven by increased non-cash share-based compensation and salaries.
• The company reported an operating loss of approximately $7 million.
• The DLA contract deliveries, initially expected in Q2, were delayed in final acceptance until July, impacting reported revenue.
• The company lowered its full-year revenue guidance to $60 million-$75 million due to antimony price volatility.

Risks

• Fluctuations in world antimony prices, which are outside of management's control, significantly impact revenue and profitability.
• The company's reliance on the DLA contract and the timing of government acceptance and payment processes.
• Potential delays in the development and ramp-up of new mining operations in Alaska and Montana.
• The company's investment in Larvotto Resources, while currently showing gains, is subject to market volatility.
• Geopolitical factors, such as the Iranian war, have impacted fuel supply and transport difficulties in Bolivia.
• The company faces challenges in securing acquisitions that meet its stringent geological, engineering, and financial criteria within its desired timeframe.
• The potential for continued price manipulation of antimony by China.

Future Outlook

The company has lowered its full-year revenue guidance to $60 million-$75 million, primarily due to the significant drop in antimony prices. Management anticipates that antimony prices will remain around $10 per pound for the remainder of 2026. Margin expansion is expected in the third and fourth quarters as DLA shipments are realized.

Management Comments

• "This is my first full quarter with the company, and I continue to be extremely impressed with our senior management, our outstanding operating team, and working closely with our high quality advisors."
• "The margin compression is almost entirely attributable to antimony price declines, as previously discussed."
• "The company acquired by claims staking this past year, a large land package in the Dubreuilville area north of Lake Superior, northwest of Wawa, Ontario, after a review of Ontario government reports."
• "United States Antimony Corporation continues to execute successfully under its $245 million sole source antimony contract with the Defense Logistics Agency."
• "The quarterly financial and operating results will be bumpy. They're bumpy this quarter. We have pros and cons."
• "The key metric should be pounds of product delivered. We delivered from antimony, our deliveries were up 26% from last year... For zeolite, we're up 114% from last year."
• "Institutional ownership in U.S. Antimony now exceeds 57%, compared with just over 42% at the end of Q1."
• "We are generating revenues, we are generating EBITDA, we are generating cash flow."

Industry Context

StockSavvy.ai notes that the significant decline in antimony prices, a key driver of USAC's revenue, reflects broader market conditions. The company's efforts to diversify with its zeolite segment and secure government contracts (DLA) are strategic responses to this commodity price volatility, a common challenge for resource-based companies.

Comparison to Industry Standards

• The company's zeolite segment revenue growth of 110% significantly outpaces typical growth rates for specialty mineral segments in the chemical and agricultural industries.
• The average antimony selling price of $13.70 per pound is approximately 52% lower than the prior year's $28.32, indicating a severe market downturn for antimony compared to broader industrial commodity trends.
• The company's ability to secure a $245 million sole source contract with the DLA is a unique and substantial advantage, not commonly seen among smaller mining operations which often rely on open market sales.
• The increase in institutional ownership to over 57% suggests growing investor confidence, potentially aligning with a trend of increased investment in critical minerals and domestic supply chains, though specific comparable companies are not detailed in the filing.

Stakeholder Impact

• Shareholders: Potential dilution from future equity raises, but also potential upside from DLA contract execution and asset development. Increased institutional ownership may lead to greater market stability.
• Employees: Increased operational infrastructure and leadership team expansion suggest potential for job growth and stability.
• Suppliers: Continued demand for feedstock and processing services to support DLA contracts and expanded operations.
• Creditors: Company's debt remains de minimis, indicating low financial risk from creditors.

Next Steps

• Complete the $57 million DLA order in 2026.
• Continue to build inventory for DLA contracts and anticipated commercial demand.
• Advance the Thompson Falls expansion, Radersburg mill upgrades, and the Idaho hydromet initiatives.
• Continue marketing efforts to expand institutional investor base domestically and internationally.
• Begin bulk sampling at the Fostung tungsten deposit in Ontario.
• Resume mining at the Montana Stibnite Hill mine.
• Continue trenching and drilling operations at Ester Dome, Alaska.
• Complete a core drilling program at the MK copper deposit in Alaska.

Key Dates

Recommendation

The company shows positive operational progress in its zeolite segment and significant improvements in liquidity and institutional ownership. However, the substantial revenue decline due to volatile antimony prices, coupled with lowered guidance and delays in DLA contract revenue recognition, presents considerable risk. While the DLA contract and strategic asset development offer long-term potential, the near-term financial performance is concerning, warranting a cautious 'hold' stance until price stabilization and consistent DLA revenue are demonstrated.

Keywords

antimony, DLA contract, zeolite, mining, critical minerals, Thompson Falls, Radersburg mill, Nolan Creek