United States Antimony (US:UAMY)2024-05-15 17:38Operations 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, 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, 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, representing a 108.4% increase from $394,843 in the prior year[110]. - Net income from continuing operations decreased to $86,101, down 70.7% from $293,381 in the previous year[110]. - Gross profit for antimony segment rose significantly to $1,121,591, a 339.6% increase from $255,158 in the same quarter of 2023[100]. - Zeolite revenue increased by $120,912, or 25.1%, totaling $603,005, despite a gross loss of $292,833 compared to a profit of $29,427 in the previous year[102]. - EBITDA for the three months ended March 31, 2024, was $192,899, a decrease from $366,312 in the same period of 2023[106]. - The company’s EBITDA for the consolidated period was $192,899, 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 $314,967 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]. 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 $1,419,199 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 $13,043,414 as of March 31, 2024, compared to $12,963,081 as of March 31, 2023[111]. - Cash flow used by investing activities improved by $499,171 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 $787,730 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].