UNITED STATES ANTIMONY CORP Q3 FY2024 earnings call

Management Statement and Operational Highlights

• Consolidated Financials: Sales were $8.1 million for the first nine months of 2024, up 23% y-o-y. Gross profit was $2.2 million, up 107% y-o-y. Operating expenses increased by $1.8 million due to non-cash stock compensation, project costs, salary/board fees, and SEC/annual meeting costs.
• Antimony Business: Efficiencies from higher sales volume and an experienced team in Montana led to higher gross profit and margins. Despite lower average price due to tolling and a supplier shutdown, seeing improvement in Q4.
• Zeolite Business: Improved operations with 93%-96% runtime in the last two quarters, drilled 82 test holes for reserves (costing ~$150,000), and had blasting that will last two years at current production rates. However, increased maintenance and other costs impacted gross profit.
• Mining and Acquisitions: Purchased mineral claims in Canada and Alaska, seeking antimony supply from 54 parties in 16 countries. Evaluating high-grade deposits, avoiding federal lands to sidestep permitting issues, and targeting private/state lands with good infrastructure.
• Investor Relations: Engaged with institutional investors, media outreach (placements in S&P Global, Yahoo Finance, etc.), attended conferences, and worked on government grants and private sector deals for antimony supply.

Segment Performance

• Antimony business: Sales for the first nine months of 2024 increased by 24% over the prior year. Gross profit more than doubled. Average antimony sales price per pound was $4.73, lower due to tolling and a supplier plant shutdown in mid-2024, but seeing improvement in Q4. Revenue contribution: Not explicitly stated as a percentage but was a key driver of sales growth.
• Zeolite business: Sales increased by 17% over the prior year. Gross profit decreased by $255,000, loss from operations worse by $562,000. Improvements in production processes, safety, etc., but with increased maintenance and other costs. Revenue contribution: Not explicitly stated as a percentage but saw sales growth.
• Mexico subsidiary: Generated $1.2 million in revenue from selling antimony inventory during the first nine months, but still had a loss of $195,000.

Guidance

• Expect sales increases in zeolite, with efforts to expand sales and enter new markets. Hopes to start producing antimony in 2025 from acquired leases, though noting the need for permits and weather considerations. Actively working on acquisitions and government funding, optimistic about future exponential growth.

Risks

• Difficulties in sourcing antimony due to Chinese restrictions on mineral exports, making it hard to secure supply from foreign companies. Fraud in the market when prices spike. Permitting challenges on federal lands, which cause delays. Need for permits and weather impacts on mining operations in Alaska and Canada.

Question and Answer

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: Prior management sold most surface rights, but still had mining rights. However, it was deemed not conducive to open back up due to surrounding federal lands and permitting issues.

Q: How close do you feel you are to securing additional feedstock and any color on how quickly we might see some of this material become available for processing once agreements are reached?

A: Getting really close, hopeful to announce small shipments for testing before year-end to ensure material can be processed properly with existing equipment.

Q: What is the condition of the contract mill, and what conditions must be in place before it will be fully operational?

A: The contract mill is fully operational now, just waiting for feed. All necessary equipment sits on the property, and there's no need for rebuilding or reconditioning.

Q: What are the neighbors like in Canada? Are there any significant NI43-101 compliant reserves or operating mines in the near vicinity?

A: The Sudbury area is a major mining hub with significant infrastructure. There are millions of tons of nickel, copper, cobalt, and other minerals in the vicinity, with existing operating mines like Creighton mine.

Q: Is the ore supply that historically came from tech no longer part of your feedstocks, at 50% capacity Thompson Falls is it safe to say that USAC has been able to benefit from higher antimony prices in Q3 2024?

A: Most current material still comes from tech, but they had a shutdown affecting Q2 and part of Q3. Benefit from higher prices was limited due to tolling contracts, but margins expected to improve with third-party material.

Q: What progress is being made in capturing better zeolite margins from middlemen? Can you quantify sales of Cattle Max?

A: Discussions ongoing to buy a middleman's company, with an LOI in final stages. No significant sales of Cattle Max yet due to trademark issues, but seeking a dedicated salesman for the cattle market.

Q: Are you involved with or planning to be involved with any U.S. critical mineral coalitions or mining advocacy efforts?

A: Yes, talking to various parties about critical minerals, seeking partnerships with industry, government, and other mining companies.