UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025

United States Antimony Corporation’s Quarterly Financial Performance

Overview

United States Antimony Corporation (USAC) is a diversified mining and processing company that produces antimony, precious metals, and zeolite products. The company has two main business segments - antimony and zeolite.

In the first quarter of 2025, USAC reported strong financial results, with revenue increasing 128% to $7 million and net income of $546,524 compared to a net loss of $322,768 in the same period in 2024. This performance was driven by higher sales volumes and prices in both the antimony and zeolite segments.

Antimony Segment Performance

USAC’s antimony segment, which includes its facilities in Montana and Mexico, saw revenue increase 140% to $5.9 million in Q1 2025 compared to the prior year period. This was primarily due to a 232% increase in the average sales price per pound of antimony, which rose from $4.92 to $16.34.

The company’s gross profit in the antimony segment also improved significantly, increasing 167% to $2.4 million. This was driven by the higher selling prices, which more than offset a 211% increase in the average cost per pound of antimony.

However, the volume of antimony sold decreased 28% to 362,647 pounds. USAC attributed this decline to higher demand and pricing, which led the company to prioritize higher-margin sales.

Zeolite Segment Performance

USAC’s zeolite segment, which includes its Bear River Zeolite (BRZ) facility in Idaho, also had a strong quarter. Revenue increased 82% to $1.1 million, while gross profit improved from a loss of $292,833 to a gain of $179,086.

The improvement in the zeolite segment was driven by a 67% increase in sales volume to 3,802 tons, as well as a 39% decrease in the average cost per ton of zeolite. This was partially offset by a more modest 9% increase in the average sales price per ton.

The company noted that in the first quarter of 2024, BRZ had incurred significant maintenance and related costs due to the repair of older machinery and equipment. This was not an issue in Q1 2025, contributing to the segment’s improved profitability.

Capital Resources and Liquidity

As of March 31, 2025, USAC had $18.7 million in cash and cash equivalents, up from $16.1 million at the end of 2024. This increase was primarily due to $2.4 million in net proceeds from the sale of common stock and $806,438 from the exercise of warrants.

However, the company used $1.7 million in cash for operating activities in Q1 2025, compared to generating $65,027 in the prior year period. This was due to increased purchases of antimony ore inventory, coupled with higher ore prices.

USAC also invested $862,011 in capital expenditures during the quarter, up from $2,031 in Q1 2024. This included the purchase of a personal residence for management personnel working in Montana.

The company stated that it believes its current cash, cash flow from operations, and ability to raise capital through stock offerings and other means are sufficient to fund its operations and planned capital expenditures for the next 12 months. However, USAC acknowledged that its ability to access capital when needed is not assured, and if funds are not available, it could be forced to curtail operations or make other difficult decisions.

Strengths and Weaknesses

Strengths:

• USAC is the only domestic, operating, and permitted processor of antimony products in the United States, giving it a competitive advantage.
• The company’s antimony smelter in Mexico is the largest operating smelter for processing antimony products in the country.
• USAC’s zeolite product is regarded as one of the best in the world due to its high cation exchange capacity, hardness, and clinoptilolite content.
• The company has been successful in raising capital through stock offerings and warrant exercises to fund its operations and growth.

Weaknesses:

• USAC’s antimony segment is still reliant on foreign sources of antimony ore, as the company suspended its own mining operations in the U.S. in 1983.
• The company has not yet prepared a technical report on the mineral resources or reserves at its Bear River Zeolite property in Idaho.
• USAC’s ability to access capital when needed is not assured, and if funds are not available, it could be forced to curtail operations.
• The company’s operations in Mexico and potential future operations in Alaska and Canada expose it to additional political, regulatory, and operational risks.

Outlook and Future Prospects

USAC’s strong financial performance in the first quarter of 2025 suggests that the company is well-positioned to capitalize on growing demand for antimony and zeolite products. The company’s antimony segment is benefiting from higher prices, while the zeolite segment is seeing increased sales volumes and improved operational efficiency.

Looking ahead, USAC’s plans to expand its operations through the acquisition of mining claims and leases in Alaska and Ontario, Canada, as well as the leasing of a metals concentration facility in Montana, could further diversify its product offerings and geographic reach. However, these new ventures also introduce additional risks and uncertainties that the company will need to manage effectively.

Overall, USAC’s financial and operational performance in Q1 2025 demonstrates the company’s ability to navigate a challenging market environment and capitalize on opportunities in its core business segments. If the company can continue to execute its growth strategy while maintaining a strong focus on cost control and operational efficiency, it may be well-positioned to deliver long-term value for its shareholders.