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United States Antimony (UAMY) - 2024 Q1 - Quarterly Results
UAMYUnited States Antimony (UAMY)2024-05-20 19:07

Financial Performance - Revenues for the first quarter of 2024 increased by 28% compared to the same period last year, with gross profit dollars more than doubling [8]. - Cash provided by operating activities from continuing operations was 350,000,withtotalcashflowfromcontinuingoperationsat350,000, with total cash flow from continuing operations at 327,000 [8]. - The cash balance at March 31, 2024, was 11.9million,reflectingamodestincreaseinthecashposition[15].−Operatingexpensesincreasedbyapproximately11.9 million, reflecting a modest increase in the cash position [15]. - Operating expenses increased by approximately 577,000 in the first quarter, with 200,000attributedtofront−loadedstockcompensationandaudit/legalfees[19].−Thecompanyexperiencedasignificantproductionloss,withathirdofitsproductioncapacityaffectedinonequarter,impactingcashflow[39].−Themanagementisoptimisticaboutthesecondquarter′sperformance,expectingimprovednumbersandpotentialprofitability[39].−Themanagementisoptimisticaboutthecompany′sfuture,projectinglargerrevenuesandhighermarketcapitalizationwithinthenext12months[57].MarketConditions−Antimonymarketpricerosetoapproximately200,000 attributed to front-loaded stock compensation and audit/legal fees [19]. - The company experienced a significant production loss, with a third of its production capacity affected in one quarter, impacting cash flow [39]. - The management is optimistic about the second quarter's performance, expecting improved numbers and potential profitability [39]. - The management is optimistic about the company's future, projecting larger revenues and higher market capitalization within the next 12 months [57]. Market Conditions - Antimony market price rose to approximately 7.44 per pound, a 40% increase since the end of 2023, marking the highest price in over five years [17]. - Significant inquiries for antimony oxide have been received, indicating a severe market shortage, with sales prices ranging from 6.75to6.75 to 7 per pound [30]. - The company sold more antimony and zeolite in the first quarter compared to the previous year, with zeolite inventory down by about 20% and antimony inventory down by about 50% [16]. Strategic Initiatives - The company is actively leasing new antimony properties in the U.S. to meet increasing demand due to reduced global supply from China and Russia [29]. - A drone survey and an ore definition drilling program are scheduled to enhance the mining and reclamation plan for the Bear River Zeolite operation [25]. - The company plans to file a Universal Shelf Registration statement in July, alongside an Annual Shareholder Meeting [32]. - The filing of a universal shelf in July provides financial flexibility for potential acquisitions or capital raising opportunities [49][50]. - The company is exploring new hard mineral opportunities, which are considered critical minerals, in addition to antimony and zeolite [47][48]. Asset Management - The company is in the final stages of engaging a broker to market its Mexican assets, with higher-than-expected land valuations noted [45][46]. - There is no royalty from BLM lands, but a royalty agreement exists with Webster Ranch for materials processed from BLM onto their property [43]. Investor Relations - The company is actively marketing its stock to institutional investors, with recent interest from individuals managing between 40millionand40 million and 2 billion in capital [41]. - Zeolite is currently in a loss position, with ongoing efforts to improve profitability despite challenges from older machinery and equipment [38]. - The company aims to significantly contribute to U.S. antimony needs, contingent on securing government funding for development [59].