Workflow
United States Antimony (UAMY) - 2024 Q1 - Quarterly Report
UAMYUnited States Antimony (UAMY)2024-05-15 17:38

Operations and Strategic Changes - The Company has shut down operations of its USAMSA subsidiary and plans to sell its assets over the next year[87]. - The Company has initiated an active search for buyers or leasing opportunities for its USAMSA operations and assets[87]. - The company shut down its USAMSA entity on March 11, 2024, due to cumulative losses and plans to sell its operations or assets over the next year[113]. Market Position and Revenue - The Company estimates its share of the domestic market for antimony oxide products is approximately 4% and less than 1% for the international market[86]. - The Company is the only significant U.S. producer of antimony products and has the only operating, permitted antimony smelter in the U.S.[89]. - Antimony revenue increased by 615,746,or38.2615,746, or 38.2%, reaching 2,228,385, primarily due to increased demand for antimony oxide and metal[100]. - Consolidated revenue for the three months ended March 31, 2024, was 2,831,390,anincreaseof28.12,831,390, an increase of 28.1% compared to 2,210,844 for the same period in 2023[110]. Financial Performance - Gross profit for the same period increased to 822,904,representinga108.4822,904, representing a 108.4% increase from 394,843 in the prior year[110]. - Net income from continuing operations decreased to 86,101,down70.786,101, down 70.7% from 293,381 in the previous year[110]. - Gross profit for antimony segment rose significantly to 1,121,591,a339.61,121,591, a 339.6% increase from 255,158 in the same quarter of 2023[100]. - Zeolite revenue increased by 120,912,or25.1120,912, or 25.1%, totaling 603,005, despite a gross loss of 292,833comparedtoaprofitof292,833 compared to a profit of 29,427 in the previous year[102]. - EBITDA for the three months ended March 31, 2024, was 192,899,adecreasefrom192,899, a decrease from 366,312 in the same period of 2023[106]. - The company’s EBITDA for the consolidated period was 192,899,adecreaseof47.3192,899, a decrease of 47.3% compared to the previous year[111]. Cost and Expenses - Total operating expenses increased significantly to 891,650, up 183.1% from 314,967intheprioryear[110].−Theaveragesalespriceperpoundofantimonydecreasedby9.2314,967 in the prior year[110]. - The average sales price per pound of antimony decreased by 9.2% to 4.27, while the average cost per pound dropped by 46.4% to 2.12[100].CashFlowandFinancialPosition−ForthethreemonthsendedMarch31,2024,netcashprovidedbyoperatingactivitieswas2.12[100]. Cash Flow and Financial Position - For the three months ended March 31, 2024, net cash provided by operating activities was 350,225, an improvement of 1,419,199comparedtothesameperiodin2023[112].−AsofMarch31,2024,thecompanyhadcashandcashequivalentsof1,419,199 compared to the same period in 2023[112]. - As of March 31, 2024, the company had cash and cash equivalents of 11,941,298, which is expected to cover cash requirements for the next 12 months[116]. - Working capital increased to 13,043,414asofMarch31,2024,comparedto13,043,414 as of March 31, 2024, compared to 12,963,081 as of March 31, 2023[111]. - Cash flow used by investing activities improved by 499,171forthethreemonthsendedMarch31,2024,primarilyduetofewerfixedassetpurchases[112].−Cashflowusedbyfinancingactivitiesimprovedby499,171 for the three months ended March 31, 2024, primarily due to fewer fixed asset purchases[112]. - Cash flow used by financing activities improved by 789,479 for the three months ended March 31, 2024, mainly due to a dividend payment of 787,730madeonJanuary25,2023[112].OperationalChallengesandFutureOutlook−TheCompanyhasfacedoperationalchallengesduetoinflationoncostsandcompetitivetechnologypositions[80].−Thecompanyisfocusedongeneratingpositivecashflowtofunditsmissionofprofitablegrowththroughorganicmeansandstrategicacquisitions[113].−TheCompanyisexploringMexicoandCentralAmericaforsuppliersofantimonyore,assumingeconomicsareprofitable[85].InternalControlsandCompliance−Managementidentifiedmaterialweaknessesindisclosurecontrolsduetothesmallsizeoftheaccountingstaff,whichmayhinderadequatecontrolsinthefuture[118].−TherehavebeennochangesininternalcontrolsoverfinancialreportingthatmateriallyaffectedthecompanyduringthequarterendedMarch31,2024[119].MineralResourcesandTechnicalReports−TheCompanyhasnotyetpreparedatechnicalreportsummaryfortheBearRiverZeolitepropertyregardingitsmineralresources[81].−Thezeolitesegmentproduceszeoliteusedforvariousapplications,includingwaterfiltrationandsewagetreatment[90].−Theannualroyaltypaymentforthezeoliteleaseisthegreaterof787,730 made on January 25, 2023[112]. Operational Challenges and Future Outlook - The Company has faced operational challenges due to inflation on costs and competitive technology positions[80]. - The company is focused on generating positive cash flow to fund its mission of profitable growth through organic means and strategic acquisitions[113]. - The Company is exploring Mexico and Central America for suppliers of antimony ore, assuming economics are profitable[85]. Internal Controls and Compliance - Management identified material weaknesses in disclosure controls due to the small size of the accounting staff, which may hinder adequate controls in the future[118]. - There have been no changes in internal controls over financial reporting that materially affected the company during the quarter ended March 31, 2024[119]. Mineral Resources and Technical Reports - The Company has not yet prepared a technical report summary for the Bear River Zeolite property regarding its mineral resources[81]. - The zeolite segment produces zeolite used for various applications, including water filtration and sewage treatment[90]. - The annual royalty payment for the zeolite lease is the greater of 60,000 or a tiered payment based on tonnage sold[91]. - The precious metals segment recovers precious metals in conjunction with antimony processing, primarily from a Canadian supplier[95].