Financial Data and Key Metrics Changes - Revenues increased by 26% to 1.7 million, attributed to improved efficiencies in the antimony business despite increased costs in the zeolite segment [4][6] - Operating expenses increased by 2 million, mainly due to noncash stock compensation, project costs, and salary expenses [4][5] Business Line Data and Key Metrics Changes - Antimony business sales increased by 36% year-over-year, with gross margins more than double compared to last year, reflecting higher efficiencies [5][6] - Average antimony sales price per pound was 10.54 per pound [6] - Zeolite business sales grew by 26%, but gross profit decreased by 432,000 in Q1 to 1.1 million in revenue from antimony inventory sales, but still incurred a loss of $150,000 from discontinued operations [8][9] - Inventory levels decreased due to planned downtime from the main antimony supplier, but efforts are underway to increase inventory and meet demand [9] Company Strategy and Development Direction - The company is focused on a turnaround strategy, emphasizing operational changes leading to financial improvements [3][4] - Significant capital expenditures were made to enhance the zeolite processing facility, achieving a 94.3% runtime, which is a record for the company [11][12] - New product initiatives like CattleMax are being developed to expand market reach, particularly in the cattle industry [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing challenges but expresses optimism about the company's direction and potential for growth in both antimony and zeolite markets [9][30] - The company is actively engaging with government officials to secure support for critical mineral supply chains, particularly for antimony [24][28] Other Important Information - The company has restructured its management team to enhance operational efficiency and market presence [28] - A new mineral resource study for the zeolite business is anticipated to be completed this year, which will inform future growth strategies [5] Q&A Session Summary Question: How big could Bear River Zeolite become and in what time frame? - The company sees significant growth potential, particularly in the cattle industry and water treatment sectors, but will not expand facilities until there is confirmed business [31][32] Question: How do you plan to be successful with CattleMax while facing competition? - The strategy involves targeting new customers and working with nutritionists to promote zeolite, ensuring no conflict with existing customers [33] Question: Is there potential for zeolite sales in mining companies for air filtration? - The company has a sales presence in Canada and recognizes the need to improve marketing efforts in that region [34] Question: What is the status of zeolite acquisitions mentioned last year? - The company is currently in standby mode regarding an acquisition due to identified issues that may be insurmountable [37] Question: How will you bring back the BRZ business to profitability? - Profitability is expected through increased sales and operational efficiencies, with capital improvements already made [38][39] Question: Can you still produce trisulfide to military specifications? - The company is confident in its ability to meet military specifications with new sources and expertise being developed [40][42] Question: What is the probability of a reverse split? - The topic was not discussed in the recent board meeting, indicating no immediate plans for a reverse split [43]
United States Antimony (UAMY) - 2024 Q2 - Earnings Call Transcript