United States Antimony (UAMY) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Sales for the first nine months of 2025 were $26.2 million, up $16.9 million, or 182% over the prior year, primarily due to price increases and some volume increase in the zeolite business [6][7] - Gross margin increased by 4 percentage points from 24% last year to 28% this year, although there will be pressure on gross margins in the fourth quarter due to declining antimony market prices [6][7] - Consolidated net loss was $4.1 million for the first nine months, including $5.2 million of non-cash expenses, but operating activities generated positive cash flow when excluding working capital changes [7][8] Business Line Data and Key Metrics Changes - Antimony sales volume increased in October, with consolidated sales of $5.6 million for the month compared to third quarter sales of $8.7 million [6][7] - The company secured a three-year supply agreement for antimony ore and a five-year sole source sales contract with the DLA, enhancing sales capabilities [9][10] Market Data and Key Metrics Changes - The company has developed and executed over 15 separate supply contracts for materials sourced from 10 different countries, with ongoing negotiations with over 30 other parties [28] - Approximately 330 tons of antimony feedstock were received at the smelter in Mexico, with additional shipments expected to ramp up significantly [28][30] Company Strategy and Development Direction - The company aims to be the preferred provider of critical minerals, focusing on growth, diversification, and sustainability [9][10] - Plans include expanding the processing facility in Montana and exploring opportunities in cobalt and tungsten, with a focus on securing government contracts similar to the DLA contract [24][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating a significant increase in production capacity from 100 tons to 500-600 tons per month [32][60] - The company is focused on overcoming challenges related to material quality and supply chain issues, with expectations of improved efficiency and throughput as new materials are integrated [65][66] Other Important Information - The company reported a significant increase in share price, climbing from about $3.08 to $7.62 per share, marking the best-performing quarter in its history [35][36] - Institutional ownership has increased from almost zero to about 30% over the past year and a half, indicating growing investor interest [36][37] Q&A Session Summary Question: What is the difference between the two types of antimony in the contracts? - The DLA contract is for metallic antimony in ingot form, while the commercial supply contract is for antimony trioxide, which is a white powder [54][55] Question: Is management considering building an additional smelter or processing facility? - The current expansion in Thompson Falls is the maximum possible due to land constraints, but there is potential for expansion in Mexico [56][58] Question: What is the expected production volume ramp for Montana and Mexico? - Production is expected to ramp up significantly in 2026, with a goal of reaching 500-plus tons a month, although the process may be bumpy [60] Question: Can you quantify efficiencies or technological improvements in processing? - There will be some mechanical efficiencies with the expansion, but the type of feed material will also significantly impact efficiency [64] Question: How close are current smelting operations to running at full capacity? - Montana is running close to capacity, but quality issues with material have been a challenge, which the company is addressing [65][66]