United States Antimony (UAMY) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Sales decreased by 21% in 2023 compared to 2022, with 44% of the decline attributed to lower antimony sales prices due to market conditions [7][21] - Gross profit also decreased in 2023, impacted by the sales decline and higher processing costs in Mexico operations [8][23] - Cash and cash equivalents decreased by $7.2 million during 2023, primarily due to operational losses and inventory purchases from Mexico operations [21][82] Business Line Data and Key Metrics Changes - Zeolite revenues at Bear River Zeolite (BRZ) were $2,462,000 in 2023, down $689,000 from 2022, largely due to 18 weeks of downtime [9][22] - The antimony plant in Montana experienced lower gross margins on sales of purchased antimony trioxide, contributing to decreased gross profit [23] Market Data and Key Metrics Changes - The contribution of Mexico operations to antimony sales was under 15% in 2023, leading to the decision to shut down these operations [18] - The company is finding new sources of antimony ore for its Montana processing plant, indicating a shift in supply strategy [18] Company Strategy and Development Direction - The company aims to eliminate cash burn and generate positive cash flow, with a focus on protecting existing cash balances [11][12] - Plans include increasing production volumes at both Thompson Falls and Bear River, with a goal to double or triple production [27][53] - The company is actively pursuing mergers and acquisitions (M&A) and leasing new properties to expand its operations [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving past operational issues and highlighted the importance of new management in driving improvements [28][34] - The company is lobbying for government grants and loans related to strategic metals, adapting its strategy based on recent discussions in Washington, D.C. [33][75] - Management believes the company is well-positioned in the market for antimony and zeolite, with increasing demand from both customers and the U.S. government [34][47] Other Important Information - The company has undergone significant changes in its Board and management team, which are expected to benefit shareholders [52][80] - The company is exploring the sale of its Mexican assets and has engaged firms to assist in this process [72][26] Q&A Session Summary Question: What has management learned from recent lobbying efforts in Washington, D.C. regarding government grants and loans? - Management has tailored its activities to meet the criteria for receiving grants based on discussions held during lobbying efforts [34] Question: When does management expect BRZ to be fully operational with improvements? - BRZ is currently fully operational, producing more zeolite than ever before, with significant changes being implemented [53] Question: Has the company identified a domestic new source of antimony? - Yes, the company is actively looking for new sources of antimony [41] Question: What progress has been made in attracting institutional investors? - The company is focusing on middle-market firms and plans to make a concerted effort once certain operational goals are achieved [43] Question: How does the company plan to address the issue of middlemen making better margins in zeolite sales? - The company recognizes this issue and plans to hire seasoned salespeople and implement marketing strategies to capture more margin [54] Question: What is the current status of the relationship with Ambri? - Ambri is behind on their schedule, and the company is exploring other sources of antimony to fill the supply gap [59]