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UNITED STATES ANTIMONY CORP

UNITED STATES ANTIMONY CORPUAMYEarnings & Financial Report

NYSE · Materials · Primary Smelting & Refining of Nonferrous Metals

United States Antimony Corp is a natural resources firm focused on exploring, mining, processing, and selling antimony, silver, and gold products. It runs production facilities in the U.S. and Mexico, serving global industrial clients in flame retardant, battery alloy, and specialty chemical manufacturing sectors.

What changed in UNITED STATES ANTIMONY CORP's 10-K — 2022 vs 2023

Top changes in UNITED STATES ANTIMONY CORP's 2023 10-K

301 paragraphs added · 315 removed · 154 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

33 edited+33 added−34 removed11 unchanged
Health and Safety We are subject to the regulations of the Mine Safety and Health Administration (“MSHA”) in the United States and the Mexico Ministry of Economy and Mining, and work with these agencies to address issues outlined in any investigations and inspections and continue to evaluate our safety practices.
Health and Safety We are subject to the regulations of the Mine Safety and Health Administration (“MSHA”) in the United States and the Mexico Ministry of Economy and Mining in Mexico, and work with these agencies to address issues outlined in any investigations and inspections and continue to evaluate our safety practices.
In instances where costs required to complete our remaining environmental obligations are clearly determined to be in excess of the existing accrual, we have adjusted the accrual accordingly.
In instances where the costs required to complete our remaining environmental obligations are clearly determined to be in excess of the existing accrual, we have adjusted the accrual accordingly.
Targets at our Los Juarez exploration project in Mexico, our planned exploration at Wadley and Sierra Guadalupe can only be developed if we are successful in obtaining the necessary permits.
Targets at our Los Juarez exploration project in Mexico can only be developed if we are successful in obtaining the necessary permits.
We provide no assurance we will be able to compete in any of our business areas effectively with current or future competitors or that the competitive pressures faced by us will not have a material adverse effect on the business, financial condition and operating results. Employees As of December 31, 2022, we employed 16 full-time employees in Montana.
We provide no assurance we will be able to effectively compete in any of our business areas with current or future competitors or that the competitive pressures faced by us will not have a material adverse effect on the business, financial condition and operating results.
The following is a summary of governmental regulation compliance areas which we believe are significant to our business and may have a material effect on our consolidated financial statements, earnings and/or competitive position.
The following is a summary of governmental regulation compliance areas which we believe are significant to our business and may have a material effect on our consolidated financial statements, earnings and/or competitive position, although other regulations could be issued and/or become more material to our business and have a material effect on our consolidated financial statements, earnings and/or competitive position.
As remediation activity has physically commenced, we have been able to refine and revise our estimates of costs required to fulfill future environmental tasks based on contemporaneous cost information, operating experience, and changes in regulatory requirements.
When remediation activity physically commences, we can refine and revise our estimates of costs required to fulfill future environmental tasks based on contemporaneous cost information, operating experience, and changes in regulatory requirements.
We have complied with regulators’ requirements and do not expect the imposition of substantial additional requirements. We have posted cash performance bonds with a bank and the U.S. Forest Service in connection with our reclamation activities. We believe we have accrued adequate reserves to fulfill our environmental remediation responsibilities as of December 31, 2022 and 2021.
General Environmental Remediation We believe we have accrued adequate reserves to fulfill our environmental remediation responsibilities as of December 31, 2023. We have posted cash performance bonds with a bank and the U.S. Forest Service in connection with our reclamation activities.
Products and Segments Our products consist of the foregoing: · Antimony: includes antimony oxide, sodium antimonite, antimony trisulfide and antimony metal; · Zeolite: includes coarse and fine zeolite crushed in various sizes; and · Precious metals: includes unrefined and refined gold and silver. In our operations in Montana, we produce antimony oxide, antimony metal, and precious metals.
Products, Markets, and Segments Our products consist primarily of the following: · Antimony: includes antimony oxide, antimony metal, and antimony trisulfide; · Zeolite: includes coarse and fine zeolite crushed in various sizes; and · Precious metals: includes unrefined and refined gold and silver.
None of our zeolite properties contains any proven and probable mineral reserves. Page 8 of 91 Table of Contents “Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice.
“Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice.
Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper.
Antimony oxide is a fine, white powder. Our antimony oxide is used in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper. Our antimony oxide is also used as a color fastener in paint and as a phosphorescent agent in fluorescent light bulbs.
BRZ zeolite is regarded as one of the best zeolites in the world due to its high cation exchange capacity (“ CEC”) of approximately 180-220 meq/100 gr., its hardness and high clinoptilolite content, its absence of clay minerals, and its low sodium content.
BRZ zeolite is regarded as one of the best zeolites in the world due to its high cation exchange capacity (CEC) of approximately 180-220 meq/100 gr.
Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fish ponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses. · Animal Nutrition .
The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor. · Gas Separation : Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fishponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses. · Animal Nutrition : According to certain third-party research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours.
Environmental Matters Our exploration, development and production programs conducted in the United States are subject to local, state and federal regulations regarding environmental protection. Some of our production and mining activities are conducted on public lands.
Our exploration, development and production programs conducted in the United States are subject to local, state and federal regulations regarding environmental protection. Some of our production and mining activities are conducted on public lands. We believe that our current discharge of waste materials from our processing facilities is in material compliance with environmental regulations and health and safety standards.
We believe that our current discharge of waste materials from our processing facilities is in material compliance with environmental regulations and health and safety standards. The U.S. Forest Service extensively regulates mining operations conducted in National Forests. Department of Interior regulations cover mining operations carried out on most other public lands.
The U.S. Forest Service extensively regulates mining operations conducted in National Forests. Department of Interior regulations cover mining operations carried out on most other public lands.
None of our antimony properties contains proven and probable mineral reserves. We estimate (but have not independently confirmed) that our present share of the domestic market and international market for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products, while China supplies 92% of the world antimony demand.
Our purchasing consequently requires flexibility regarding supply agreements and is tailored accordingly to specific suppliers. We estimate (but have not independently confirmed) that our present share of the domestic and international markets for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products.
We rely on foreign sources for raw materials, and there are risks of interruption in procurement from these sources and/or volatile changes in world market prices for these materials that are not controllable by us. We have our own sources of antimony in Mexico, but we depend on foreign companies for raw material.
As a result of the mine and mill closure, we have relied on sources outside the U.S. for antimony ore since 1983, and there are risks of interruption in procurement from these sources and volatile changes in world market prices for these materials that are not controllable by us.
Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, fisheries, fish farms, and aquariums. · Sewage Treatment . Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms. · Nuclear Waste and Other Environmental Cleanup .
Our zeolite is used in: · Soil Amendment and Fertilizer : Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops. · Water Filtration : Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, fisheries, fish farms, and aquariums. · Sewage Treatment : Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms. · Nuclear Waste and Other Environmental Cleanup : Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solutions.
Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution. Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium. · Odor Control .
Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium. · Odor Control : A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure.
These include the availability and price of imported metals, the quantity of new metal supply, and industrial demand. If metal prices decline and remain depressed, our revenues and profitability may be adversely affected. Suppliers : We use various antimony raw materials to produce our products. We currently obtain antimony raw material from sources in Canada and Mexico and Central America.
The market price of antimony metal is determined by several variables out of our control. These variables include the availability and price of imported antimony metal, the quantity of new antimony metal supply, and industrial demand for antimony metal. If antimony metal prices decline and remain depressed, our revenues and profitability may be adversely affected.
We believe we are competitive both domestically and world-wide due to the following: · We have a reputation for quality products delivered on a timely basis. · We have the only two operating, permitted antimony smelters in North and Central America. · We are the only U.S. domestic producer of antimony products. · We can ship on short notice to domestic customers. · We are vertically integrated, with raw materials from our own mines, mills, and smelter in Mexico, along with the raw materials from exclusive supply agreements we have with numerous ore and raw material suppliers. · Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States with a current maximum capacity of about 32,600 pounds of feed per day and permitting for 50% to 70% expansion.
We believe we are competitive both domestically and world-wide due to the following: · We are the only U.S. domestic producer of antimony products. · We can ship on short notice to domestic customers. · We have a reputation for quality products delivered on a timely basis. · We have the only operating, permitted antimony smelter in the U.S.
Compliance with environmental regulations, and litigation based on environmental laws and regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities. Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations.
Environmental Our operations are subject to various environmental laws and regulations at the federal and state level. Compliance with environmental regulations, and litigation based on environmental laws and regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities.
Page 10 of 91 Table of Contents Antimony Processing Site We have environmental remediation obligations at our antimony processing site near Thompson Falls, Montana (“the Stibnite Hill Mine Site”). We are under the regulatory jurisdiction of the U.S. Forest Service and subject to the operating permit requirements of the Montana Department of Environmental Quality.
We are under the regulatory jurisdiction of the U.S. Forest Service and subject to the operating permit requirements of the Montana Department of Environmental Quality. Some reclamation activities have been performed under the supervision of the U.S. Forest Service and Montana Department of Environmental Quality.
Antimony Price Fluctuations: Our operating results have been, and will continue to be, related to the market prices of antimony metal, which have fluctuated widely in recent years. The volatility of prices is illustrated by the following table, which sets forth the average prices of antimony metal per pound, as reported by sources deemed reliable by us.
However, our operating results from all our antimony products have been, and will continue to be, related to the Rotterdam antimony metal market price, which has fluctuated widely over the past several years. The Rotterdam average antimony metal market price per pound, as reported by Argus Metals, was $5.50 in 2023 and $5.99 in 2022.
We strive to achieve excellent mine safety and health performance, and attempt to implement reasonable best practices with respect to mine safety and emergency preparedness. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. Environmental Our operations are subject to various environmental laws and regulations at the federal and state level.
We strive to achieve excellent mine safety and health performance, and attempt to implement reasonable best practices with respect to mine safety and emergency preparedness.
Zeolite We own 100% of Bear River Zeolite, Inc. (“BRZ”). BRZ has a lease with Webster Farm, L.L.C. that entitles BRZ to surface mine and process zeolite on property located near Preston, Idaho, in exchange for a royalty payment. In 2010 the royalty was adjusted to $10 per ton sold. The current minimum annual royalty is $60,000.
BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for a royalty payment.
Our principal business is the extraction, processing and sale of antimony, zeolite, silver and gold products. On May 16, 2012, we started trading on the NYSE MKT (now NYSE American) under the symbol UAMY. As a mining company, we are subject to Subpart 1300 of Regulation S-K (“S-K 1300”), a regulation adopted by the U.S. Securities and Exchange Commission (“SEC”).
Our principal business is the production and sale of antimony, precious metals, primarily gold and silver, and zeolite products. In May 2012, our shares of common stock started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY.
We expect to receive raw materials from our owned and leased properties for 2023 and later years. We also work with suppliers in North America (including Mexico) and Central America. The acquisition of antimony ores is technically complex and a function of the country’s laws and regulations. U.S.
We anticipate continuing to receive antimony ore primarily from a supplier in Canada but will continue to explore Mexico and Central America for suppliers of antimony ore, assuming economics are profitable. The acquisition of antimony ore is technically complex and a function of the country’s laws and regulations.
None of our employees are covered by any collective bargaining agreement, Page 11 of 91 Table of Contents Intellectual Property We hold no material patents, licenses, franchises or concessions. However, we consider our antimony processing plants proprietary in nature.
Employees As of December 31, 2023, we employed 83 full-time employees, 16 in Montana, 23 in Idaho, 3 in Missouri, and 41 in Mexico. The number of full-time employees may vary seasonally. None of our employees are covered by any collective bargaining agreement. Intellectual Property We hold no material patents, licenses, franchises or concessions.
Although we extract minerals from several of our properties that we later process and sell, S-K 1300 classifies each of our mining properties as an exploration stage property and our company as an exploration stage issuer because we have not prepared a technical report summary for any of our properties making a determination that the property contains proven and probable mineral reserves.
Although we extract minerals from the Bear River Zeolite property in Idaho that we later process and sell, we have not prepared a technical report summary for the Bear River Zeolite property making a determination on the property’s mineral resources or mineral reserves. Recent Developments The Company has two subsidiaries in Mexico, US Antimony de Mexico, S.A. de C.V.
Precious Metals The Company processes antimony sources that sometimes contain precious metals. In such cases, the metallurgical techniques employed for the recovery of antimony are altered to also recover the precious metals.
Precious metals are recovered in the leach circuit and settling pond after the ore goes through the crushing and flotation cycles. When precious metals are contained in antimony source, the metallurgical techniques employed for the recovery of antimony are altered to also recover the precious metals.
The Puerto Blanco mill in Mexico is the site of our crushing and floatation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant in Montana, where a 99% precious metals mix will be produced.
Our Puerto Blanco plant includes crushing equipment, a flotation mill, and an oxide circuit to process and produce an intermediate stage of antimony and a cyanide leach circuit and settling pond that recovers precious metals after the ore goes through the crushing and flotation cycles.
In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. In March 1998, we formed United States Antimony, Mexico S.A. de C.V. (“USAMSA”), to mine and smelt antimony in Mexico.
Item 1. Business. History United States Antimony Corporation was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, the Company suspended its antimony mining operations in the U.S. but continued to produce antimony products using foreign sources of antimony ore. In April 1998, the Company formed US Antimony de Mexico, S.A. de C.V.
Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States, although the Company does have a sales operation in Canada. For further information regarding our sales, see Note 16 in our consolidated audited financial statements included in this Annual Report.
See Note 9 and Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further information.
Removed
Item 1. Description of Business . General and History AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC”, “U.S. Antimony” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to process and sell antimony products.
Added
(“USAMSA”) to smelt antimony in Mexico, and, in August 2005, the Company formed Antimonio de Mexico, S.A. de C.V. (“ADM”) to explore and develop antimony and precious metal deposits in Mexico. The Company formed Bear River Zeolite Company (“BRZ”) in 2000 for the purpose of mining and producing zeolite in Idaho.
Removed
Bear River Zeolite Company (“BRZ”) was incorporated in 2000, and it is mining and producing zeolite in southeastern Idaho. During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho.
Added
(“USAMSA”) and Antimonio de Mexico, S.A. de C.V. (“ADM”). On March 11, 2024, the Company shut down the operations of USAMSA, terminated a majority of USAMSA employees, the cost of which related to this employee termination was approximately $40,000, and announced its plans to sell, lease, or dispose of its USAMSA subsidiary, operations, or assets.
Removed
In 2001, an operating plant was constructed at the zeolite site and zeolite extraction and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to extract and sell zeolite products. On August 19, 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V.
Added
The USAMSA subsidiary primarily includes the Company’s Madero antimony and precious metals plant in Parras de la Fuente Coahuila, Mexico and its Puerto Blanco antimony and precious metals plant in San Luis de la Paz Guanajuato, Mexico.
Removed
(“AM”), to explore and develop potential antimony and silver deposits in Mexico. During 2006, the Company acquired 100% ownership in USAMSA, which became a wholly-owned subsidiary of the Company. In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc.
Added
The Company intends to sell or lease its USAMSA subsidiary, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets. The Company will maintain its existing Los Juarez mining claims and concessions in Cadereyta de Montes Queretaro, Mexico, which are included in our ADM subsidiary.
Removed
(previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A. de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.
Added
There are presently no active operations at Los Juarez. See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further information.
Removed
Recent Developments In August 2022, the Company entered into an agreement in principle with SB Wadley, S.A. de C.V. contemplating the purchase of the property, deposit, auxiliary infrastructure and equipment at a property in Mexico known as the Wadley property in exchange for an aggregate of $9 million plus tax, of which $2 million would be paid by the Company at execution of the definitive agreement and an additional $1 million would be paid by the Company on each of the first seven anniversaries of the execution of the definitive agreement.
Added
In March 2024, the Company received a favorable ruling with no assessment due related to the audit of USAMSA’s 2013 income tax return by the Mexican tax authority (“SAT”) that began in 2015 and that had been under appeal since 2022.
Removed
The transaction is subject to due diligence which must be completed by April 15, 2023, and definitive agreements which must be completed by April 30, 2023.
Added
All sales of antimony, zeolite, and precious metals products are to customers in the United States and Canada.
Removed
During the due diligence period, the Company has the right to mine, retain sole ownership of all ore extracted from the mining claims, and conduct geological, geophysical and geochemical studies in exchange for monthly payments of $10,000 plus tax.
Added
The Company is organized and managed by the following four segments, which represent our operating units: United States antimony segment, Mexico antimony segment, zeolite segment, and precious metals segment. 5 Table of Contents United States Antimony Segment Our United States antimony segment consists of an antimony plant in the Burns Mining District of Sanders County in Montana, which primarily produces antimony oxide, antimony metal, antimony trisulfide, and precious metals.
Removed
In Feb 2023, because the owners of the Wadley had failed to provide USAC with the fiscal, corporate, and legal documentation they agreed to provide, it was agreed that the 8-month due-diligence period be extended another 8 months until October 15, 2023. This arrangement was accompanied with same monthly lease agreement and ore-rights exclusivity.
Added
Our antimony metal is used in bearings, storage batteries and ordnance. Our antimony trisulfide is used as a primer in ammunition. The precious metals processed at this plant in Montana are included in our Precious Metals Segment. We closed our antimony mine and mill in Montana in December 1983 because antimony ore could be purchased more economically from foreign sources.
Removed
Page 5 of 91 Table of Contents In August 2022, the Company’s 100% owned Mexican subsidiary, United States Antimony de Mexico S.A. de C.V. (“USAMSA”), agreed to pay Soluciones Empresariales Surmit, S.A. de C.V.
Added
Our mine and mill are approximately 1 mile from our current antimony smelter plant in Montana. We hold one patented claim at the mine. The environmental permitting process currently precludes mining at our mine in Montana.
Removed
(“Contractor”) up to approximately $1 million to assist USAMSA in its efforts to acquire surface rights on certain properties on which it holds mining claims [at the Sierra Guadalupe property]. As of June 30, 2023, USAMSA has paid the Contractor a total of $135,726 under this contract.
Added
Mexico Antimony Segment The Company has two subsidiaries in Mexico, USAMSA and ADM.
Removed
Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins and fibers and film, as a catalyst for production of polyethylene phthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains.
Added
As described in the “ Recent Developments ” section in this Annual Report, we shut down the operational activities of USAMSA on March 11, 2024, which primarily includes the following two antimony and precious metals processing plants in Mexico: (1) the Madero smelter in Coahuila, and (2) the Puerto Blanco flotation mill, oxide circuit, and cyanide leach circuit in Guanajuato.
Removed
The Company also sells antimony metal for use in bearings, storage batteries and ordnance. In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer.
Added
Our Madero smelter processes antimony ore primarily into antimony metal and an intermediate stage of antimony.
Removed
Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications. The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.
Added
The intermediate stage of antimony produced at Madero and Puerto Blanco is shipped to our plant in Montana for further processing to produce antimony oxide and metal. The precious metals processed at Madero and Puerto Blanco, which were shut down as well, are included in our Precious Metals Segment.
Removed
The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Montana plant.
Added
The Company intends to sell or lease its USAMSA subsidiary, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets. We will maintain our existing Los Juarez mining claims and concessions in Cadereyta de Montes Queretaro, Mexico, which are included in our ADM subsidiary.
Removed
Antimony Our Montana antimony smelter and precious metals plant is located in the Burns Mining District of Sanders County, Montana, approximately 15 miles west of Thompson Falls, Montana. We hold two patented mill sites where the plant is located. Environmental restrictions preclude mining at this site.
Added
There are presently no active operations at Los Juarez. 6 Table of Contents Combined United States and Mexico Antimony Segments Combined Antimony Sales : Following is a schedule of our antimony sales for the years ended December 31, 2023 and 2022: Year Antimony Sales ($) Antimony Pounds Sold Average Sales Price/Pound Sold 2023 $ 5,904,480 1,269,131 $ 4.65 2022 $ 7,631,670 1,394,036 $ 5.47 Antimony Price Fluctuations: We report our average antimony sales price per pound using the total antimony sales from all our antimony products, which primarily include metal, oxide, and trisulfide.
Removed
Antimony’s policy consequently requires flexibility regarding supply agreements and is tailored on specific suppliers accordingly. Page 6 of 91 Table of Contents We currently own 100% of USAMSA, which was formed in April 1998. We currently own 100% of Antimony de Mexico SA de CV (“ADM”), which owns the San Miguel concession of the Los Juarez property.
Added
Zeolite Segment Our zeolite segment consists of a mine and mill in Preston, Idaho, Bear River Zeolite, Inc. (“BRZ”), which produces zeolite. Our zeolite is used for various purposes including soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications.
Removed
USAMSA has two divisions, (1) the Madero smelter in Coahuila, and (2) the Puerto Blanco flotation mill and oxide circuit in Guanajuato. ADM possesses the Los Juarez mineral deposit. ADM owns all of the mining concessions pertaining to the Los Juarez property except for the San Juan 3 concession, for which we have a long-term lease.
Added
The annual royalty payment is the greater of: (1) the minimum annual royalty of $60,000, adjusted annually for the Consumer Price Index for all Urban Consumers, or (2) $11.00 per ton for the first ten thousand tons, $9.90 per ton for tons in excess of ten thousand up to twenty thousand, and $8.80 per ton for tons in excess of twenty thousand.
Removed
Following is a five-year schedule of our antimony sales: Year Lbs.
Added
This Zeolite LLC lease also requires BRZ to pay $10,000 to the lessor on March 1 of each year during the term of the lease, which ends March 1, 2025. BRZ also pays two other royalties on the sale of zeolite products. On a combined basis, BRZ pays royalties ranging from 8% to 13% on the sale of zeolite products.
Removed
Metal Contained Sales ($) Average Price/Lb. 2022 1,394,036 $ 7,631,671 $ 5.47 2021 911,079 $ 4,815,524 $ 5.29 2020 815,310 $ 2,942,628 $ 3.61 2019 1,566,585 $ 5,450,649 $ 3.48 2018 1,486,120 $ 6,113,014 $ 4.11 Concentration of Sales : During the years ended December 31, 2022 and 2021, the following sales were made to our four largest customers: For the year ended December 31, Sales to largest customers 2022 2021 Company A $ 1,882,667 $ 1,141,608 Company B 1,863,958 - Company C 827,822 - Company D 751,328 518,227 Company E 737,189 474,738 Company F 735,194 850,301 Company G 226,633 $ 1,728,406 7,024,791 4,713,280 % of Total Revenues 64 % 61 % Page 7 of 91 Table of Contents Marketing: We employ full-time marketing personnel and have negotiated various commission-based sales agreements with other chemical distribution companies.
Added
In addition, BRZ can surface mine and process zeolite on property owned by the U.S. Bureau of Land Management that is adjacent to the Company’s Preston, Idaho property after obtaining required permits.
Removed
A five-year range of prices for antimony oxide and antimony metal, per pound, as reported by Argus Metals was as follows: USAC SALES Year Metal Contained Price Rotterdam 2022 $ 5.47 $ 6.01 2021 $ 5.29 $ 4.91 2020 3.61 2.45 2019 3.48 3.03 2018 4.11 3.74 Antimony metal prices are determined by a number of variables over which we have no control.
Added
(which predicts plant nutrient availability and retention in soil), its hardness and high clinoptilolite content (which is an effective barrier to prevent problematic radionuclide movement), its absence of clay minerals, and its low sodium content.
Removed
In addition, BRZ has identified more zeolite located on U.S. Bureau of Land Management land. The Company pays various royalties on the sale of zeolite products. Other royalty holders are paid a royalty that varies from $1 to $5 per ton. On a combined basis, royalties vary from 8%-13% of sales.
Added
Many cattle are currently being fed zeolite in feed lots located in the United States. · Miscellaneous Uses : Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner, traction control, ammonia removal from mining waste, and carriers for insecticides, pesticides and herbicides. 7 Table of Contents Precious Metals Segment Our precious metals segment consists of three precious metals recovery plants, one that is operated in conjunction with the antimony processing plant in Montana and two that were shut down on March 11, 2024 that were operated in conjunction with the antimony processing plants at our Madero and Puerto Blanco operations in Mexico.
Removed
Shortly after inception, BRZ constructed a processing plant on the property which improved its productive capacity. Ground-breaking for an additional warehouse to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop were expected to be completed last year.
Added
In 2023, the principal source of antimony concentrates bearing precious metals came from our Canadian supplier, who also purchases precious metals from the Company.
Removed
A vertical-shaft-impactor crusher was replaced by a hammer mill for crushing line number 1 in 2021 for increased production rate. A replacement jaw crusher was installed and put into service in 2021.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

19 edited+6 added−5 removed11 unchanged
We cannot assure you that we will not experience net losses in the future. Continued losses may have an adverse effect on our cash balances, require us to curtail certain activities and investments, raise additional capital or sell assets.
We cannot assure you that we will not experience net losses in the future. Continued losses may have an adverse effect on our cash balances, require us to curtail certain activities and investments, or may require us to raise additional capital or sell assets.
These are not all of the risks we face, and other factors not presently known to us or that we currently believe are immaterial may also affect our business if they occur Financial Risks We have experienced losses in recent years and may continue to incur losses.
These are not all of the risks we face, and other factors not presently known to us or that we currently believe are immaterial may also affect our business materially if they occur. Financial Risks We have experienced losses in recent years and may continue to incur losses.
Many of the factors affecting our operating results are beyond our control, including, but not limited to, the volatility of metals prices; smelter terms; rock and soil conditions; seismic events; availability of hydroelectric power; diesel fuel prices; interest rates; foreign exchange rates; global or regional political or economic policies; inflation; availability and cost of labor; economic developments and crises; governmental regulations; continuity of orebodies; ore grades; recoveries; performance of equipment; price speculation by certain investors; and purchases and sales by central banks and other holders and producers of gold and silver in response to these factors.
Many of the factors affecting our operating results are beyond our control, including, but not limited to, the volatility of metals prices; smelter terms; rock and soil conditions; seismic events; availability of hydroelectric power; diesel fuel prices; interest rates; foreign exchange rates; global or regional political or economic policies; inflation; availability and cost of labor; economic developments and crises; governmental regulations; continuity of orebodies; ore grades; recoveries; performance of equipment; pandemics; global conflicts; price speculation by certain investors; and purchases and sales by central banks and other holders and producers of gold and silver in response to these factors.
We are subject to the risk of fluctuations in the relative values of the U.S. Dollar and Mexican Peso. We may be adversely affected by foreign currency fluctuations. Certain of our assets are located in Mexico. Our expenses relative to our Mexican assets, and in certain cases those assets themselves, may be denominated in Mexican Pesos.
We are subject to the risk of fluctuations in the relative values of the U.S. and Canadian Dollar and Mexican Peso. We may be adversely affected by foreign currency fluctuations. Certain of our assets are located in Mexico. Our expenses relative to our Mexico assets, and in certain cases those assets themselves, may be denominated in Mexican Pesos.
The more significant areas requiring the use of management assumptions and estimates relate to: · mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; · environmental, reclamation and closure obligations; · permitting and other regulatory considerations; · asset impairments; · valuation of business combinations; · future foreign exchange rates, inflation rates and applicable tax rates; · reserves for contingencies and litigation; and · deferred tax asset and liability valuation allowance.
The more significant areas requiring the use of management assumptions and estimates relate to: · mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; · environmental reclamation and retirement obligations; · permitting and other regulatory considerations; · asset impairments; · valuation of business combinations; · asset valuations; · future foreign exchange rates, inflation rates and applicable tax rates; · reserves for contingencies and litigation; and · deferred tax asset and liability valuation allowance.
If additional financing is raised through the issuance of indebtedness, we will require additional financing in order to repay such indebtedness. Failure to obtain such additional financing could result in the delay or indefinite postponement of further acquisitions, investments, exploration and development, curtailment of business activities or even a loss of property interests.
If additional financing is raised through the issuance of indebtedness, we will require additional financing in order to repay such indebtedness. Failure to obtain such additional financing could result in the delay or indefinite postponement of further acquisitions, investments, exploration and development, curtailment of business activities or even a loss of property interests. Metal prices are volatile.
The range of reasonably possible losses from our exposure to environmental liabilities in excess of amounts accrued to date cannot be reasonably estimated at this time. Our accounting and other estimates may be imprecise.
The range of reasonably possible losses from our exposure to environmental liabilities in excess of amounts accrued to date cannot be reasonably estimated at this time. 12 Table of Contents Our accounting and other estimates may be imprecise.
If the prices of antimony or zeolite decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable ore reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future.
If the prices of antimony or zeolite decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, if the commercial value of fixed assets declines, or if we do not realize the mineable ore reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future.
These factors are largely beyond our control and are difficult to predict. If the market prices for these metals and products fall below our production, exploration or development costs for a sustained period of time, we will experience losses and may have to discontinue exploration, development or operations, or incur asset write-downs at one or more of our properties.
If the market prices for these metals and products fall below our production, exploration or development costs for a sustained period of time, we will experience losses and may have to discontinue exploration, development or operations, or incur asset write-downs at one or more of our properties.
When events or changes in circumstances indicate the carrying value of our long-lived assets may not be recoverable, we review the recoverability of the carrying value by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment must be recognized when the carrying value of the asset exceeds these cash flows.
When events or changes in circumstances indicate the carrying value of our long-lived assets may not be recoverable, we review the recoverability of the carrying value by estimating the future undiscounted cash flows expected to result from the use and eventual salvage values related to the disposition of the assets.
Antimony, zeolite, silver and gold prices fluctuate widely and are affected by numerous factors, including: · speculative activities; · relative exchange rates of the U.S. dollar; · global and regional demand and production; · political instability; · inflation, recession or increased or reduced economic activity; and · other political, regulatory and economic conditions.
Antimony, zeolite, silver and gold prices fluctuate widely and are affected by numerous factors, including: · speculative activities; · relative exchange rates of the U.S. dollar; · global and regional demand and production; · political instability; · inflation, recession or increased or reduced economic activity; and · other political, regulatory and economic conditions. 11 Table of Contents These factors are largely beyond our control and are difficult to predict.
We have experienced a loss from operations and a net loss in each of the fiscal years ended December 31, 2019, 2020, and 2021. We may continue to experience losses in the future.
We have experienced a loss from operations and a net loss in each of the fiscal years ended December 31, 2019 to December 31, 2023 other than the fiscal year ended December 31, 2022. We may continue to experience losses in the future.
Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans. We determined no impairments were required for 2022.
Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans.
Recognizing impairment write-downs could negatively impact our results of operations. Metals price estimates are a key component used in the evaluation of the carrying values of our assets, as the evaluation involves comparing carrying values to the average estimated undiscounted cash flows resulting from operating plans using various metals price scenarios.
Metals price estimates are a key component used in the evaluation of the carrying values of our assets, as the evaluation involves comparing carrying values to the average estimated undiscounted cash flows resulting from operating plans using various metals price scenarios.
We may seek or require additional financing, which may not be available on acceptable terms, if at all. We may seek to source additional financing by way of private or public offerings of equity or debt or the sale of project or property interests in order to have sufficient capital to engage in acquisitions, investments and for general working capital.
We may seek to source additional financing by way of private or public offerings of equity or debt or the sale of project or property interests in order to have sufficient capital to engage in acquisitions, investments and for general working capital.
In the event of an accident, we could be held liable for any damages that result and any liability could exceed our financial resources. We also have one ongoing environmental reclamation and remediation project at our current production facility in Montana.
In the event of an accident, we could be held liable for any damages that result and any liability could exceed our financial resources. We also have ongoing reclamation and retirement projects at our facilities.
Our revenue is derived primarily from the sale of antimony and zeolite products, and to a lesser extent silver and gold products, and, as a result, our earnings are directly related to the prices of these metals and products.
A substantial or extended decline in metals prices would have a material adverse effect on us. Our revenue is derived primarily from the sale of antimony and zeolite products, and to a lesser extent silver and gold products, and, as a result, our earnings are directly related to the prices of these metals and products.
We do not have environmental liability insurance now, and we do not expect to be able to obtain insurance at a reasonable cost. If we incur liability for environmental damages while we are uninsured, it could have a harmful effect on our financial condition and results of operations.
If we incur liability for environmental damages while we are uninsured, it could have a harmful effect on our financial condition and results of operations.
Adequate financial resources may not be available to ultimately finish the reclamation activities if changes in environmental laws and regulations occur, and these changes could adversely affect our cash flow and profitability. We expect to have environmental reclamation obligations, and may be liable for environmental contamination, on our other current and former mining properties and processing facilities.
Adequate financial resources may not be available to ultimately finish the reclamation and retirement activities if changes in environmental laws and regulations occur, and these changes could adversely affect our cash flow and profitability. We do not have environmental liability insurance now, and we do not expect to be able to obtain insurance at a reasonable cost.
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Deferred or contingent payment obligations may create financial risk for our business We are conducting due diligence pursuant to a preliminary agreement to acquire assets located in Mexico known as the Wadley property.
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Macroeconomic factors, including inflation, high interest rates, recession risks, unemployment rates, rising labor costs, fiscal policy, geopolitical events, and the lagging effects of the COVID-19 pandemic, have caused downturns in key markets and created other commercial disruptions, which have and could further adversely impact our businesses.
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If the transaction proceeds on the terms set out in the preliminary agreement, we will be required to make an initial payment of $2 million followed by seven annual payments of $1 million (in each case, plus tax). We cannot assure you that such efforts would be successful. As a result, our business and financial condition could be harmed.
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Many macroeconomic factors affect our business and the industries and companies that purchase our products. As a result, these macroeconomic factors have and could cause further changes to demand for our products.
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Page 12 of 91 Table of Contents Metal prices are volatile. A substantial or extended decline in metals prices would have a material adverse effect on us.
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These factors include: (i) inflation; (ii) high interest rates; (iii) recession risks; (iv) rising labor costs; (v) disruptions to supply chains; (vi) fiscal policy, (vii) geopolitical events, (viii) interruptions of international and regional commerce; and (ix) the lagging effects of the COVID-19 pandemic. Price erosion may occur as competitors become more aggressive in pricing practices.
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See Item 1. Business - Introduction for information on the average price of antimony for the last five years.
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To the extent that these factors increase our costs and/or reduce demand for our products and/or increase competition due to their effects on our customers and vendors, our business, financial position, results of operations and cash flows could be adversely impacted. We may seek or require additional financing, which may not be available on acceptable terms, if at all.
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Page 13 of 91 Table of Contents Our liabilities for environmental reclamation may exceed the amounts accrued on our financial statements.
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Impairment must be recognized when the carrying value of the asset exceeds these cash flows. Recognizing impairment write-downs could negatively impact our results of operations.
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Also, we sell zeolite to customers in Canada in Canadian dollars. Significant fluctuations in the exchange rates between the U.S. Dollar and the Canadian Dollar may therefore have a material adverse effect on the Company’s financial results. Our liabilities for environmental reclamation and retirement and safety may exceed the amounts accrued on our financial statements.

Item 2. Properties

Properties — owned and leased real estate

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Although near-surface rock is easily ripped, it is more economical to drill and blast it. Breakage is generally good. Initial benches are 20 feet high, and each bench is accessed by a road. Haulage is over approximately 4,000 feet of road on an uphill grade of 2.5% to the mill. On higher benches, the grade will eventually be downhill.
Although near-surface rock is easily ripped, it is more economical to drill and blast it as breakage is generally good. Initial benches are 20 feet high, and each bench is accessed by a road. Haulage is over approximately 4,000 feet of road on an uphill grade of 2.5% to the mill. On higher benches, the grade will eventually be downhill.
It is located within 4 kms of the ejido of Los Juarez situated near the top of the mountain. The property is accessible by truck by paved road except for the last 4 kms which is a dirt road made by the Company. Property and Ownership The Los Juarez property consists of: 1.
It is located within 4 kms of the ejido of Los Juarez situated near the top of the mountain. GPS coordinates at the center of the Los Juarez property are 20.86528, -99.67590. The property is accessible by truck by paved road except for the last 4 kms which is a dirt road made by the Company.
On the ridges, the cover is very little, and in the draws the soil is thicker. The overburden is stripped using a tractor dozer, currently a Caterpillar D-8K. It is moved to the toe of the pit, and will eventually be dozed back over the pit for reclamation.
Depending on the location, the zeolite is overlain by 1 to 12 feet of zeolite-rich soil. On the ridges, the cover is very little, and in the draws, the soil is thicker. The overburden is stripped using a tractor dozer, moved to the toe of the pit, and will eventually be dozed back over the pit for reclamation.
San Juan I and II, which are concessions owned by ADM and include 466 hectares (1,152 acres); and 3. The San Juan III mining concession, which is held by a lease agreement by ADM in which we will pay a 10% royalty, based on the net smelter returns from another USAC Mexican subsidiary, named United States Antimony Mexico, S.
San Juan I and II mining concessions, which are concessions owned by ADM and include 1,152 acres (466 hectares); and 3. San Juan III mining concession, which is held by a lease agreement by ADM, the terms of which include a monthly payment of $1,000 and a 10% royalty based on the net smelter returns of USAMSA.
San Miguel I and II, which were purchased by a USAC subsidiary, Antimonio de Mexico, S. A. de C. V (“ADM”), for $1,480,500, which was paid in full as of December 31, 2018. The property consists of 40 hectares (100 acres); [ 2.
San Miguel I and II mining claims, which were purchased by ADM for $1,480,500 and paid in full as of December 31, 2018. The transfer of ownership of the mining claims to ADM is still in process. The property consists of 100 acres (40 hectares); 2.
USAMSA Puerto Blanco Flotation Mill, Guanajuato, Mexico The flotation facility known as Puerto Blanco, is located approximately 15 kms north of the city of San Jose Iturbide along state highway 57 in the state of Guanjuato Mexico. It is accessible by highway to all vehicles. The GPS coordinates of Puerto Blanco are 21.07827,-100.54144 (see attached map with Mexican installations listed).
The Puerto Blanco property is approximately 15 kms (about 9.32 mi) north of the city of San Jose Iturbide along state highway 57 in the state of Guanjuato, Mexico with GPS coordinates of 21.07827, -100.54144 and is located approximately 144 kms (about 89.48 mi) from our Los Juarez property. It is accessible by highway to all vehicles.
However, extraction was halted in 2020 and the Company elected to conduct several rounds of geological study in addition to shipping a previously mined 2,000 metric ton test-batch to our flotation facility. Further study is ongoing and depending upon the results of these studies the Company will decide what course of action to take.
In 2019, we commenced open pit mining on our Los Juarez property and extracted 2,000 metric tons to test at our Puerto Blanco flotation mill in Mexico. However, extraction was halted in 2020 to conduct several rounds of geological study. Further study is ongoing, and depending on the results, the Company will decide what course of action to take.
In 2019, we completed the installation of a caustic leach circuit to process concentrates from the Puerto Blanco cyanide leach plant containing precious metals from our Los Juarez Mining property. The Madero production is either sold as metal to customers directly or crude oxide shipped to our Montana plant to produce finished antimony products and precious metals.
In 2019, we completed the installation of a caustic leach circuit to process concentrates from the Puerto Blanco cyanide leach plant containing any precious metals from our Los Juarez Mining property, which is part of the Mexico portion of the Precious Metals Segment and which has not been used.
Although we extract minerals from the Los Juarez antimony property and the Bear River zeolite property that we later process and sell, S-K 1300 classifies each of our mining properties as an exploration stage property and our company as an exploration stage issuer because we have not prepared a technical report summary for any of our properties making a determination that the property contains proven and probable mineral reserves.
Although we extract minerals from the Bear River Zeolite property in Idaho that we later process and sell, we have not prepared a technical report summary for the Bear River Zeolite property making a determination on the property’s mineral resources or mineral reserves.
The facility at Thompson Falls MT is outfitted with 6 operational Small Rotary Furnaces (SRF’s) and permitted for 9 SRF’s. The SRF’s are used to roast various antimony raw material inputs and are capable of producing either finished antimony oxide or finished antimony metal in the form of ingots. The equipment is maintained to modern standards.
We have 6 operational Small Rotary Furnaces (SRF’s) and 2 operational electric furnaces and have permits for up to 9 SRF’s and 4 electrical furnaces. The SRF’s are used to roast various antimony ore inputs and can produce either finished antimony oxide or finished antimony metal in the form of ingots. The electrical furnaces are used to produce antimony trisulfide.
The flotation circuit is used for the processing of rock from Los Juarez and other properties. The crushing equipment currently in place is adequate for both flotation mills. An oxide circuit was added to the plant in 2013 and 2014 to mill oxide ores from Los Juarez and other properties.
An oxide circuit was added to the plant in 2013 and 2014 to mill oxide ores from Los Juarez and other properties. The capacity of the oxide circuit is 50 tons per day. In 2019 a cyanide leach circuit for recovery of precious metals was built and permits were obtained for this circuit.
History The plant had no prior history as it was built by founder John Lawrence and other U.S. Antimony personnel. Geology The deposit is a very thick, sedimentary deposit of zeolitized volcanic ash of Tertiary age known as the Salt Lake Formation. The sedimentary interval in which the clinoptilolite occurs is more than 1,000 feet thick in the area.
The deposit on the land owned by Zeolite, LLC is a thick, sedimentary deposit of zeolitized volcanic ash of Tertiary age known as the Salt Lake Formation. The sedimentary interval where the clinoptilolite occurs is over 1,000 feet thick.
We also have the following properties that we do not consider material: · A house in Preston, Idaho, which is used to house workers from our zeolite operation; and · Our corporate office located in Thompson Falls, Montana. We have a 100% ownership or leasehold interest in each of these properties, except as noted above.
There are no material encumbrances on any of our properties. 26 Table of Contents Also, we own the following properties that are not material: · A house in Preston, Idaho, which is used to house workers who are working at our zeolite operation; and · Our corporate office is at our plant in Sanders County, Montana.
Preston is near the major north-south Interstate Highway 15 to Salt Lake City or Pocatello. Preston is a city in Franklin County, Idaho , United States. The population was 5,204 according to the 2010 United States census .
Preston is a city in Franklin County, Idaho and is near the major north-south Interstate Highway 15 to Salt Lake City, UT or Pocatello, ID. Water is sourced from the landowner during the early spring and summer months. Late summer, water is generally scarcer but is obtained from the same source.
It is located less than 1 km from railroad and the ejido Estacion Madero, Coahuila. Paila is about halfway in between Torreon and Saltillo both in the state of Coahila on state highway 40 and is accessible by pickup truck.
Paila is about halfway between Torreon and Saltillo, both in the state of Coahila on state highway 40, and is accessible by truck. Electricity is supplied by CFE, the socialized electricity provider in Mexico and provides adequate and fairly reliable power. Water is sourced from a well at the smelter.
If the Company should elect to reinitiate mining of the Los Juarez property, it will likely employ standard open-pit techniques and depending on the geologic results, underground methods. Infrastructure There is an excavator, an older Cat D-6, a gas welder/generator, a small break shack, an explosives magazine, and these are all functional.
There has been no mining of the Los Juarez property since 2020. Some of the major equipment at the site includes an excavator, an older Cat D-6, a gas welder/generator, a small break shack, and an explosives magazine, all of which are functional. The Los Juarez property consists of: 1.
Caterpillar 769 B rock trucks are being used. The trucks haul 18 to 20 tons per load, and the cycle time is approximately 30 minutes. In 2021, we experimented with mining principally by ripping using the Caterpillar D-9.
Rock trucks are being used to haul 18 to 20 tons per load, and the cycle time is approximately 30 minutes. 33 Table of Contents BRZ is in the southeast corner of Idaho and is accessible by seven miles of paved road and about l/4 mile of gravel road from Preston, Idaho.
There are no plans to resume mining on the claims that have been sold or abandoned, although the mineral rights have been retained on many of the patented mining claims. Accordingly, we do not view the smelter and plant as a mining property for purposes of S-K 1300. It is a processing facility only.
As a result, since 1983, we have relied on sources outside the U.S. for antimony ore, which is used by our smelter and precious metals plant. There are no plans to resume mining, although the mineral rights have been retained on the patented mining claims. Currently, the environmental permitting process precludes any mining at this site.
Presently, we run a smelter that includes furnaces of a proprietary design to produce antimony metal, antimony oxide, and various other products. We also run a precious metals plant. The facility includes 6 buildings and our main office.
The plant was built in 1971 and started operating in 1972. We built the road system, but it was purchased and is currently operated and maintained by the USFS. The antimony smelter plant includes furnaces of a proprietary design to produce antimony metal, antimony oxide, antimony trisulfide, and various other antimony products.
A. de C. V. or USAMSA. It consists of 214 hectares (529 acres).We are leasing just the concessions for $1,000 US dollars/month. The concessions collectively constitute 720 hectares (1,780 acres). The claims are accessed by roads that lead to highways. The book value of the property, including the plant and smelter, as of December 31, 2022 is $6,825,404.
It consists of 529 acres (214 hectares). 29 Table of Contents The concessions collectively constitute 1,780 acres (720 hectares). The claims are accessed by roads that lead to highways. The Los Juarez property is approximately 40 kms (about 24.85 mi) by road from the town of Vizzaron.
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Item 2. Description of Properties . OVERVIEW Our material properties are: · Our antimony smelter and precious metals plant in Montana; · Our Los Juarez antimony mining property and the associated Madero smelter and Puerto Blanco flotation mill in Mexico; and · Our Bear River zeolite mining property and the associated [plant] in Idaho.
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The following table provides a summary of the properties we were affiliated with at December 31, 2023: Segment Location Owned or Leased Mine, Mill, Processing Plant, or Warehouse Active or Inactive Own Mining Claims Executed Surface Rights Agreement US Antimony Sanders County, Montana Owned Processing Plant Active n/a n/a US Antimony Sanders County, Montana Owned Mine and Mill Inactive Yes n/a Mexico Antimony Madero in Coahuila, Mexico Owned Processing Plant Active (A) n/a n/a Mexico Antimony Puerto Blanco in Guanajuato, Mexico Owned Processing Plant Active (A) n/a n/a Mexico Antimony Los Juarez, Mexico Leased Mine Active (B) (B) Zeolite Preston, Idaho Leased Mine and Processing Plant Active Yes Yes Precious Metals Sanders County, Montana Owned Processing Plant Active n/a n/a Precious Metals Puerto Blanco and Madero in Mexico Owned Processing Plant Active (A) n/a n/a Zeolite Lethbridge, Canada Leased Warehouse Active n/a n/a (A) As described in the “ Recent Developments ” section in this Annual Report, the Company announced the shutdown of the operational activities of USAMSA, which primarily includes USAMSA's Madero and Puerto Blanco antimony and precious metals plants in Mexico.
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The aggregate annual extraction from our mining properties during the three most recently completed fiscal years was as follows: WADLEY MINES YEAR DRY WEIGHT (lbs.) ANTIMONY CONTENT (lbs.) 2020 885,040 281,653 2021 1,112,389 353,161 2022 1,186,294 301,901 LOS JUAREZ PROPERTY YEAR DRY WEIGHT (metric tons) ANTIMONY CONTENT (metric tons) 2020 0 0 2021 1500 9 2022 500 3 BEAR RIVER ZEOLITE YEAR DRY WEIGHT (metric tons) 2020 12,748 2021 11,747 2022 13,047 In addition to mineralized material extracted from our properties, our processing facilities process mineralized material extracted by the Company from third party properties such as Wadley and Sierra Guadalupe, or purchased from third parties, or provided to us for toll milling.
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The Company intends to sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets. (B) Mining claims are owned by ADM other than two mining claims that have been purchased by ADM, but ownership has not transferred to ADM.
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MATERIAL PROPERTIES Antimony Smelter and Precious Metals Plant, Montana Our antimony smelter and precious metals plant is located in the Burns Mining District, Sanders County, Montana, approximately 14 miles west of Thompson Falls on Montana Highway 471, GPS coordinates 47.54735, -115.59219. ] This highway is asphalt, and the property is accessed by cars and trucks.
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Executed surface rights agreements exist with ADM other than one surface rights agreement that has lapsed, and a new agreement will be negotiated.
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The property includes two five-acre patented mill sites that are owned in fee-simple by us. The claims are U. S. Antimony Mill Site No. 1 (Mineral Survey 10953) and U. S. Antimony Mill Site No. 2 (Mineral Survey 10953). We also own five-acre Black Jack millsite.
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DESCRIPTION OF PROPERTIES Properties in Sanders County, Montana We own 14 acres of land in the Burns Mining District in Sanders County, Montana, where we operate a plant that includes our antimony smelter plant, which is our US Antimony Segment, and our precious metals equipment, which is in our Precious Metals Segment.
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Page 28 of 91 Table of Contents Page 29 of 91 Table of Contents The U. S. Antimony Mill Sites were used to run a flotation mill and processing plant for antimony that we mined on adjacent claims that have been sold.
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The furnaces are maintained to modern standards. Annual antimony production was approximately 1,181,000 pounds in 2023 and approximately 1,291,000 pounds in 2022. This plant is also equipped for the treatment and production of precious metals. Annual gold production was approximately 36 ounces in 2023 and approximately 44 ounces in 2022.
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The mill site is serviced with three-phase electricity from Northwest Power, and water is pumped from a well. We claim no reserves nor mineral resources on any of these properties. Antimony mining and milling operations in the U.S. were curtailed during 1983 due to continued declines in the price of antimony.
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Annual silver production was approximately 21,400 ounces in 2023 and approximately 25,100 ounces in 2022. We do not mine at this plant but rather process ore only.
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We are currently purchasing foreign raw antimony materials and extracting our own raw materials from our properties in Mexico. We continue to produce antimony metal, oxide, sodium antimonate, antimony trisulfide, and precious metals from our processing facility near Thompson Falls, Montana.
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Our mine and mill in Montana, which are approximately 1.5 miles (3 miles by USFS roads) northwest of our smelter and precious metals plant on National Forest Road 2179 and approximately 4,100 feet north of Prospect Creek, hold one five-acre patented mill site that we own in fee-simple.
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The facility also has 2 operational electric furnaces and permitted for 4 for the purpose of the production of antimony trisulfide. These furnaces are modern and maintained. The facility also has a small laboratory and various equipment for the treatment and production of precious metal bullion. The facility houses modern quality-control equipment.
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Our mine was an underground antimony mine known as the Stibnite Hill Mine (Operating Permit #00045). Our mine and mill operated from approximately 1968 to 1983 when they suspended operations because antimony ore could be purchased more economically from foreign sources.
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Page 30 of 91 Table of Contents There are no material encumbrances The book value of the property as of December 31, 2022 is $1,667,758. Mexican Properties Los Juarez Antimony Property, Mexico Our Los Juarez property does not contain known mineral reserves; however, in 2019 we commenced extraction via open pit mining.
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Our antimony smelter plant is approximately 16 miles west of Thompson Falls on Montana Secondary Highway 471 with GPS coordinates latitude 47.548077 north and longitude 115.591828 west. Our plant is approximately 850 feet north-northeast of Prospect Creek in Cox Gulch, which resides in the northern Bitterroot Mountain range.
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Location GPS coordinates of the center of the Los Juarez property are 20.86528, -99.67590. Page 31 of 91 Table of Contents Transportation The Los Juarez Property is located in the state of Queretaro Mexico and is approximately 40 kms by road from the town of Vizzaron.
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This Highway 471 is asphalt, and the property is accessible by car or truck. There is a smaller airport, Sanders Airport, that is about 2 hours from our plant and a major airport in Spokane, WA, that is about 2 and a half hours from our plant.
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Page 32 of 91 Table of Contents History Part of the USAC Mexican property, including San Miguel I, II and part of San Juan III, was originally drilled by the Penoles Company in 1970, when antimony metal prices were high. They did not proceed with the property, due to the complex metallurgy of antimony.
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The plant is serviced with electricity from Northwestern Energy, and water is pumped from a well. Personnel are sourced from nearby cities like Belknap, Plains, and Missoula. Our plant is considered a large quantity generator (“LQG”) of hazardous waste and must comply with the Montana Hazardous Waste Act, which is regulated by the Montana Department of Environmental Quality (“DEQ”).
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Subsequently, the Mexican Government did additional work and reported a deposit of mineralized material in Consejo de Recursos Minerales. The report predated S-K 1300. The Company has not prepared a S-K 1300 report, nor has it declared any proven and probable mineral reserves on the property.
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Following are location maps related to this property: 27 Table of Contents 28 Table of Contents Properties in Mexico The Company has two subsidiaries in Mexico, USAMSA and ADM.
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Geology The mineralized zone is a classic jasperoid-type deposit in the Cretaceous El Doctor Limestone. The mineralization is confined to silicified jasperoid pipes intruded upwards into limestone. The zone strikes north 70 degrees west. The dimension of the deposit is still conjectural. However, the strike length of the jasperoid is more than 3,500 meters.
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As described in the “ Recent Developments ” section in this Annual Report, we shut down the operational activities of USAMSA on March 11, 2024, which primarily includes our two antimony and precious metals processing plants in Mexico as follows: (1) the Madero smelter in Coahuila, and (2) the Puerto Blanco flotation mill, oxide circuit, and cyanide leach circuit in Guanajuato.
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The mineralization is typically very fine-grained stibnite with silver and gold. It is primarily sulfide in nature due to its encapsulation in silica. Permitting and Licensing USAC via its subsidiaries with properties in Mexico pays Mexican mining taxes on all the mining concession it owns. The taxes average approximately 7,000 pesos per semester and are paid in a timely manner.
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The Company intends to sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets. The Company will maintain its existing Los Juarez mining claims and concessions in Cadereyta de Montes Queretaro, Mexico, which are included in our ADM subsidiary.
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The Company is unaware of any violations or fines regarding the retention of these mining claims nor is the Company in violation regarding permitting, timelines, or conditions. Page 33 of 91 Table of Contents Exploration In October 2020, a 1000-meter initial drill program was conducted on the property with a total of 25 holes.
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There are presently no active operations at Los Juarez.
Removed
The drilling was completed November 2020 and used a reverse-circulation drill rig. Samples were sent to a certified lab in Mexico for analysis. Drill hole location, depth, and angle were selected near mined pit areas and along suspected fault zones. A summary of the drill program was published in a news release of November 30, 2020 and subsequent news releases.
Added
The following map shows the location of the properties in Mexico we are affiliated with at December 31, 2023, including the location of our freight forwarder and the Wadley mine, both of which we have no affiliation: Los Juarez Antimony Mine in Queretaro, Mexico The Los Juarez Property is in the state of Queretaro, Mexico.
Removed
This initial program was performed without the aid of a geophysical study. In 2022, the Company was engaged in a formal geological, geochemical, and geophysical study to help obtain subsurface mineralization data and better understand the system with an objective of partnering with a junior mining company with expertise in exploration/drilling.
Added
Following are location maps related to this property: 30 Table of Contents Puerto Blanco Flotation Mill and Precious Metals Processing Plant in Guanajuato, Mexico The flotation mill known as Puerto Blanco is in Guanajuato, Mexico. The Puerto Blanco property is owned by USAMSA.
Removed
The results of the geological and geochemical studies are not yet complete. Mining Methods Mining of the Los Juarez has been halted pending our geological, geophysical, and geochemical studies which are ongoing and nearing completion. Additional mapping and geologic work is required to adequately evaluate the data collected thus far.
Added
Construction started on the property in 2010 and the plant was shut down on March 11, 2024, as described in the “ Recent Developments ” section in this Annual Report. The Puerto Blanco property is about 100 acres.
Removed
Puerto Blanco is located approximately 144 kms from the Los Juarez property. The Puerto Blanco property was purchased by USAMSA in 2012 and is approximately 40 hectares in area. The flotation plant has a capacity of 100 metric tons per day.
Added
The flotation mill and oxide circuit are part of the Mexico Antimony Segment, and the cyanide leach circuit is part of the Mexico portion of the Precious Metals Segment. The flotation mill has a capacity of 100 metric tons per day and can be used for the processing of ore from Los Juarez and other third-party properties.
Removed
It includes a 30” x 42” jaw crusher, a 4’x 8’ double-deck screen, a 36” cone crusher, an 8’x 36” Harding type ball mill, and eight No. 24 Denver sub A type flotation machines, an 8’ disc filter, front end loaders, tools and other equipment.
Added
This cyanide leach circuity is not yet in operation and has not been used. Puerto Blanco processed approximately 20,000 pounds of antimony ore in 2023, which contained antimony of an average of approximately 25%, and approximately 40,000 pounds of antimony ore in 2022, which contained antimony of an average of approximately 32%.
Removed
It includes a vertical shaft impactor, 3 ore bins, 8 conveyors, a 4’ x 6’ high frequency screen, jig, 8 standard concentrating tables, 5 pumps, sand screw and two buildings. The capacity of the oxide circuit is 50 tons per day.
Added
Following are location maps related to this property: 31 Table of Contents Madero Smelter and Precious Metals Processing Plant in Coahuila, Mexico The Madero antimony smelter at Estacion Madero, in the Municipio of Parras de la Fuente, Coahuila, Mexico, is part of the Mexico Antimony Segment. The Madero property is owned by USAMSA.
Removed
We have installed a cyanide leach circuit and settling pond that will be used to recover precious metals from our Los Juarez mine. In 2019 a cyanide leach circuit for recovery of gold was built and permits were obtained for this circuit.
Added
Construction started on the property in 2009 and the plant was shut down on March 11, 2024, as described in the “ Recent Developments ” section in this Annual Report. The property is about 16 acres with seventeen small rotating furnaces (“SRF’s”) and four large rotating furnaces (“LRF”) with an associated stack and scrubbers.
Removed
Test batches of Los Juarez antimony concentrates containing precious metals have been processed through the cyanide leach system and the processing of 2,000 tons of mined rock from Los Juarez is underway. One of three batches of gold-bearing carbon (the end product of the cyanide leach) have been saturated and awaits separation and analysis.
Added
The plant has a feed capacity of 14 to 25 metric tons of ore per day depending on the grade of the feedstock. If the feedstock is 45% antimony, we believe the smelter could produce as much as 10 million pounds of contained antimony annually.
Removed
Preliminary results are that the gold-recovery is acceptable. Page 34 of 91 Table of Contents Page 35 of 91 Table of Contents USAMSA Madero Smelter, Estacion Madero, Parras De La Fuente, Coahuila, Mexico The Madero smelter is located about 7 kms north of the gas station known as Paila Coahuila.
Added
The Madero antimony production is sold as metal or crude oxide, the oxide of which is shipped to our plant in Montana to produce finished antimony products.
Removed
USAC, through its wholly owned subsidiary, USAMSA, owns and operates a smelting facility at Estacion Madero, in the Municipio of Parras de la Fuente, Coahuila, Mexico. The property includes 13.48 hectares (30 acres). Seventeen small rotating furnaces (“SRF’s”) and four large rotating furnaces (“LRF”) with an associated stack and scrubbers.
Added
Annual antimony finished goods production was 189,965 pounds of antimony metal and oxide in 2023 and 352,949 pounds of antimony metal and oxide in 2022. This property is about 7 kms north of the gas station known as Paila Coahuila and less than 1 km from a railroad and the ejido Estacion Madero, Coahuila.
Removed
Other equipment includes cooling ducting, dust collectors, scrubber, laboratory, warehouse, slag vault, stack, jaw crusher, screen, hammer mill, and a 3.5’ x 8’ rod mill. The plant has a feed capacity of 14-25 metric tons of direct shipping ore per day, depending on the grade of the feedstock.
Added
Personnel are sourced mainly from the nearby community of about 100 people. Following is a location map related to this property: 32 Table of Contents Bear River Zeolite Mine and Processing Plant in Preston, Idaho Bear River Zeolite (“BRZ”), which represents our Zeolite Segment, has operated a mine and processing plant on private land owned by Zeolite, LLC since 2000.
Removed
If the feedstock is in the range of 45% antimony or higher, the smelter could produce as much as 10MM pounds of contained antimony annually. Concentrates from our flotation plant, and hand-sorted ore from Mexico sources and other areas, are being processed.
Added
BRZ leases 320 acres from Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for a royalty payment.
Removed
Plans to dramatically improve and update the infrastructure at the Madero Smelter include erecting a building around all the furnaces to aid in the control, consistency, and quality of product and ease of processing.
Added
The annual royalty payment is the greater of: (1) the minimum annual royalty of $60,000, adjusted annually for the Consumer Price Index for all Urban Consumers, or (2) $11.00 per ton for the first ten thousand tons, $9.90 per ton for tons in excess of ten thousand up to twenty thousand, and $8.80 per ton for tons in excess of twenty thousand.
Removed
Additionally, the Company is considering producing finished antimony oxide with this control and purchasing quality-control instrumentation for the option of selling all finished antimony products from Madero just as we currently do in Montana. We have used part of our 2021 capital raise for improving equipment, relining furnaces, purchase of newer forklifts, scales, and general improvement.
Added
This Zeolite LLC lease also requires BRZ to pay $10,000 to the lessor on March 1 of each year during the term of the lease, which ends March 1, 2025. BRZ also pays two other royalties based on the sale of zeolite products.
Removed
The Company is focusing its capital expenditures for the improvement of the facilities and Preston Idaho for its zeolite operation and secondary to this priority will be the potential enclosure of our smelter at Madero in order to allow improved recovery, efficiency, and quality-control by shielding it from the weather. Access to the plant is by road and railroad.
Added
On a combined basis, BRZ pays royalties ranging from 8% to 13% on the sale of zeolite products. BRZ has all necessary MSHA and operational permits and is regularly inspected by MSHA for compliance with State and Federal requirements. See Note 10 of the Notes to Consolidated Financial Statements in this Annual Report for the status of inspections by MSHA.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Removed
Item 3. Legal Proceedings . There is no material pending legal proceeding, other than ordinary routine litigation incidental to the business, to which we or any of our subsidiaries is a party or of which any of our or their properties is the subject.
Added
Item 3. Legal Proceedings. United States Antimony Corporation is not a party to any pending material legal proceedings.
Added
No director, officer or affiliate of United States Antimony Corporation and no owner of record or beneficial owner of more than 5% of the Company’s securities or any associate of any such director, officer or security holder is a party adverse to United States Antimony Corporation or has a material interest adverse to United States Antimony Corporation in reference to pending litigation.
Added
Historically, from time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At December 31, 2023 and December 31, 2022, the Company had no accrued liabilities relating to such assessments.
Added
However, in 2023, Bear River Zeolite Company (“BRZ”), a wholly owned subsidiary of the Company, received fourteen significant and substantial citations and three orders from MSHA, all of which have been rectified by BRZ prior to the filing of this Annual Report.
Added
BRZ works to create a safe environment for its employees at its plant; however, there can be no assurances that future MSHA inspections will not have a material adverse impact on the Company’s results of operations and financial condition.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Item 4. Mine Safety Disclosures . The information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report. Page 44 of 91 Table of Contents PART II
Item 4. Mine Safety Disclosures. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report. 35 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Dividends Except as follows, we have not declared or paid any dividends to our common stockholders during the last five years and do not anticipate paying dividends on our common stock in the foreseeable future. Instead, we expect to retain earnings for the operation and expansion of our business.
Dividend Policy We have not declared or paid any cash dividends to our common stockholders during the last five years and do not anticipate paying cash dividends on our common stock in the foreseeable future. Instead, we expect to retain earnings for the operation, improvement, and expansion of our business.
Unregistered Sales of Equity Securities During the year ended December 31, 2022, the Company issued 132,980 shares of common stock to the board of directors to satisfy stock payable to directors for services of $62,501 that were outstanding at December 31, 2021.
Sales of Unregistered Equity Securities On August 24, 2022, the Company issued 132,980 shares of common stock to the board of directors to satisfy the stock payable to directors for their board services of $62,501 that were outstanding and accrued at December 31, 2021.
Item 5. Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities. Market information Our common stock is traded on the NYSE American under the symbol UAMY. Holders The approximate number of holders of record of our common stock at July 15, 2023 is 2,359.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market information The principal market for our common stock is the NYSE American where it is traded under the symbol UAMY. Holders of Record The approximate number of shareholders of record of our common stock at December 31, 2023 is 10,956.
On November 28, 2022, the Company declared a dividend on the Series D Preferred Stock in the aggregate amount of $787,730, which was paid on January 18, 2023. All outstanding shares of Series D Preferred Stock were converted to 1,692,672 shares of common stock on January 25, 2023.
On November 28, 2022, the Company declared a dividend on the Series D Preferred Stock in the aggregate amount of $787,730, which was included in “dividends payable” in the Consolidated Balance Sheet at December 31, 2022 and was paid on January 18, 2023.
The Company also paid the holders $787,730 for dividends payable as declared on November 28, 2022 Securities Authorized for Issuance Under Equity Compensation Plans Information regarding our equity compensation plans as of December 31, 2022 is disclosed in Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” of this Annual Report on Form 10-K.
On January 25, 2023, the holders of such shares of Series D Preferred stock converted their respective preferred shares and the Company issued 1,692,672 shares of common stock. 36 Table of Contents Securities Authorized for Issuance Under Equity Compensation Plans Information regarding our equity compensation plans as of December 31, 2023 is described in Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” of this Annual Report.
On January 25, 2023, the holders of 1,692,672 shares of Series D Preferred stock converted the preferred shares and the Company issued 1,692,672 shares of common stock.
On November 28, 2022, the holders of 1,692,672 outstanding shares of Series D Preferred stock, which represents all outstanding shares of Series D Preferred Stock, agreed to convert their preferred shares for 1,692,672 shares of common stock of the Company. As of December 31, 2022, common shares had not yet been issued in conversion of the preferred shares.
Removed
Purchases of Equity Securities During the year ended December 31, 2022, the Company repurchased $202,980 of its common stock under this repurchase program which represents 418,696 shares. As of December 31, 2022, no shares had been returned to treasury and $202,980 is included in ‘shares to be returned to treasury’ on the consolidated balance sheet (Note 18).
Added
The number of record holders is based upon the actual number of holders registered on our books at such date and does not include holders of shares in street name or persons, partnerships, associations, corporations or other entities identified in security position listings maintained by depository trust companies.
Added
Issuer Purchases of Equity Securities There were no repurchases of the Company’s common stock during the quarter ended December 31, 2023. Item 6. [Reserved] Item 7.
Added
Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes related thereto which are included in “Item 8. Financial Statements and Supplementary Data” of this Annual Report.
Added
Certain information contained in the discussion and analysis set forth below includes forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Cautionary Note Regarding Forward-Looking Statements,” “Item 1A. Risk Factors” and elsewhere in this Annual Report.
Added
Overview Our Company has been building its business strategy since inception around 1970. This strategy started with its antimony and precious metals operations in Montana and then continued with the antimony and precious metals operations in Mexico and the zeolite operations in Idaho.
Added
Antimony mining was halted in the U.S., including our antimony mining in Montana, in the 1980’s due to less expensive antimony ore imported into the U.S. from other countries, primarily China. However, the Company continues to process antimony ore into finished antimony oxide, metal, trisulfide, and other products at its plant in Montana.
Added
Since the 1980s, our Company has been attempting to secure antimony mining and processing operations in Mexico to restore a vertically integrated antimony mining to marketing process. The building of operations in Mexico since 2009 has been costly with expenditures on fixed assets of approximately $13 million.
Added
Along with this capital spent on fixed assets, our Mexico operations have generated losses cumulatively since inception. As a result, the Company shut down the operational activities in Mexico on March 11, 2024, as described in the “ Recent Developments ” section of this Annual Report. Our zeolite operations are vertically integrated from mining to selling zeolite.
Added
We review initiatives to ensure an adequate return on our investment. We also review the performance of our segments and our Company with a focus on generating positive cash flow. In addition, we are focused on improving our customer service based on the needs of our customers.
Added
A cornerstone of our strategy is the well-being of our employees as they are our most valuable asset. Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically as well as through strategic acquisitions to increase shareholder value.
Added
Recently, our Company added some key elements and personnel to its strategy related to customer service, finance, and plant management along with several new board members to help achieve our goals and our mission. 37 Table of Contents Consolidated Financial Information Comparison of the Years Ended December 31, 2023 and 2022 Consolidated Statements of Operations Information: For the year ended December 31, 2023 2022 Revenues $ 8,693,155 $ 11,044,707 Costs of revenues 12,037,939 9,048,517 Gross profit (loss) $ (3,344,784 ) $ 1,996,190 Total operating expenses 3,724,217 1,647,985 Income (loss) from operations $ (7,069,001 ) $ 348,205 Total other income (expense) 720,714 96,529 Income tax expense - 16,073 Net income (loss) $ (6,348,287 ) $ 428,661 Weighted average shares of common stock (basic) 107,551,931 106,287,359 Weighted average shares of common stock (diluted) 107,551,931 106,287,359 Consolidated Balance Sheet Information: December 31, December 31, 2023 2022 Working capital $ 12,642,282 $ 19,397,489 Total assets 28,094,995 34,700,450 Accumulated deficit (39,418,619 ) (33,070,332 ) Total stockholders’ equity 25,520,968 31,869,255 Revenues Revenue decreased by $2.4 million, or 21%, in fiscal year 2023 compared to fiscal year 2022 primarily due to: (1) the lower average antimony sales price per pound in 2023, which accounted for approximately $1 million of the revenue decrease, (2) less pounds of antimony sold in 2023, which accounted for approximately $0.6 million of the revenue decrease, and (3) less tons of zeolite sold in 2023, which accounted for approximately $0.7 million of the revenue decrease.
Added
Our average antimony sales price per pound is impacted by the market price for antimony, which fluctuates widely based on variables out of our control. These variables, which can change in the future, include the availability and price of imported antimony metal, the quantity of new antimony metal supply, and the industrial demand for antimony metal.
Added
As a result, the results of our operations and financial condition could be materially affected, positively or negatively, going forward by changes in the market price of antimony. Our zeolite business sold less tons of its product in 2023 compared to 2022 primarily due to production downtime in 2023.
Added
BRZ experienced 18 weeks of unexpected production downtime in 2023 primarily due to machinery and equipment inadequacies or failures. We remain vigilant in improving or replacing our fixed assets, including machinery, equipment, and vehicles, that can cause production downtime as our production of zeolite products is contingent on the proper functioning of our fixed assets.
Added
However, our fixed assets may be inadequate or fail in the future, which could affect our ability to produce finished zeolite products to sell to our customers and generate revenue and could have a material adverse impact on the results of our operations and financial condition. 38 Table of Contents Gross Profit (Loss) In fiscal year 2023, there was a gross loss of ($3.3 million) compared to a gross profit of $2 million in fiscal year 2022.
Added
This decrease between the years was primarily due to the following: · Higher plant processing costs at our Mexico antimony segment caused finished goods inventory cost to be higher than its sales value.
Added
As a result, our Mexico antimony segment recorded an expense to write-down its inventory cost to its net realizable value, which was higher in 2023 compared to 2022.
Added
The higher plant processing costs were primarily due to the low percentage of antimony contained in the ore purchased in Mexico. · Lower average antimony sales price per pound in 2023, as described above in the “Revenues” section above, · Production downtime at our zeolite operations in 2023 not only caused lower revenues, as described above in the “Revenues” section above, but also caused increased maintenance costs and inefficient facility-related costs in rectifying these production downtime issues, both of which caused lower gross profit, · Higher reserve on Mexico Value Added Tax (“VAT” or “IVA”) receivable primarily due to increased government regulations and restrictions, · Fixed production costs with lower sales volume at our Montana and Idaho plants lowered gross profit and gross margin, and · Lower gross profit and gross margin on sales of purchased finished antimony trioxide.
Added
Operating Expenses Operating expense increased by $2.1 million in fiscal year 2023 compared to fiscal year 2022 primarily due to: · Increased asset retirement obligation (“ARO”) and other expenses in the Mexico antimony segment primarily due to the announced shutdown of Mexico operations on March 11, 2024, as described in the “ Recent Developments ” of this Annual Report. · Increased professional fees relating primarily to Mexico legal matters and regaining compliance with SEC filings, · Increased Board fees associated with market pay comparability and adjustments, · Increased bad debt expense due primarily to one customer who received an antimony product from our Montana location, · Loss on the disposal of Wadley assets due to the termination of the Wadley acquisition agreement.
Added
Other Income (Expense) Other income increased by $0.6 million in fiscal year 2023 compared to fiscal year 2022 primarily due to increased investment income in 2023.
Added
Working Capital Working capital decreased by $6.8 million during the year ended December 31, 2023 primarily due to inventory, production, and operational costs at our Mexico antimony segment, which decreased working capital by approximately $4.5 million. 39 Table of Contents Segment Financial Information Comparison of the Years Ended December 31, 2023 and 2022 US and Mexico Antimony Segment Financial and operational metrics of our antimony segment for the years ended December 31, 2023 and 2022 was as follows: Year ended December 31, Antimony - Combined USA and Mexico 2023 2022 $ Change % Change Revenue $ 5,904,480 $ 7,631,670 $ (1,727,190 ) -22.6 % Gross profit (loss) $ (3,064,606 ) $ 1,505,116 $ (4,569,722 ) -303.6 % Pounds of antimony sold 1,269,131 1,394,036 (124,905 ) -9.0 % Average sales price per pound $ 4.65 $ 5.47 $ (0.82 ) -15.0 % Average cost per pound $ 7.06 $ 4.39 $ 2.67 60.8 % Average gross profit per pound $ (2.41 ) $ 1.08 $ (3.49 ) -323.2 % The average antimony sales price per pound decreased by $0.82, or 15%, in 2023 compared to 2022 primarily due to the: (1) decrease in the antimony market price, and (2) lower demand and increased competition during various periods in 2023 resulting from national or international developments (e.g., auto strike).
Added
The average antimony gross profit per pound decreased by $3.49 in 2023 compared to 2022 primarily due to: · Higher plant processing costs at our Mexico antimony segment caused finished goods inventory cost to be higher than its sales value.
Added
As a result, our Mexico antimony segment recorded an expense to write-down its inventory cost to its net realizable value, which was higher in 2023 compared to 2022.
Added
The higher plant processing costs were primarily due to the low percentage of antimony contained in the ore purchased in Mexico. · Lower average antimony sales price per pound in 2023, as described above in the “Revenues” section above, · Higher reserve on Mexico IVA receivable primarily due to increased government regulations and restrictions, · Fixed production costs with lower sales volume at our Montana plant lowered gross profit and gross margin, and · Lower gross margin on sales of purchased finished antimony trioxide.
Added
Zeolite Segment Financial and operational metrics of our zeolite segment for the years ended December 31, 2023 and 2022 was as follows: Year ended December 31, Zeolite 2023 2022 $ Change % Change Revenue $ 2,462,179 $ 3,151,330 $ (689,151 ) -21.9 % Gross profit (loss) $ (495,981 ) $ 339,907 $ (835,888 ) -245.9 % Tons of zeolite sold 10,145 13,047 (2,902 ) -22.2 % Average sales price per ton $ 242.70 $ 241.54 $ 1.16 0.5 % Average cost per ton $ 291.59 $ 215.49 $ 76.10 35.3 % Average gross profit per ton $ (48.89 ) $ 26.05 $ (74.94 ) -287.7 % The average zeolite gross profit per ton decreased by $74.94 in 2023 compared to 2022 primarily due to: · Production downtime in 2023, which not only caused lower revenues, but also caused increased maintenance costs and inefficient facility-related costs in rectifying these production downtime issues, both of which caused lower gross profit, and · Fixed production costs with lower sales volume at our Idaho plant lowered gross profit and gross margin. 40 Table of Contents Precious Metals Segment Financial and operational metrics of our precious metals segment for the years ended December 31, 2023 and 2022 was as follows: Year ended December 31, Precious metals 2023 2022 $ Change % Change Revenue $ 326,496 $ 261,707 $ 64,789 24.8 % Gross profit (loss) $ 215,803 $ 151,167 $ 64,636 42.8 % Ounces sold - gold 36.45 43.77 (7.32 ) -16.7 % Ounces sold - silver 21,426 25,122 (3,696 ) -14.7 % Non-GAAP Financial Measure In addition to our results determined in accordance with GAAP, we believe Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”), a non-GAAP financial measure, is a useful measure of our operating performance because it eliminates non-cash expenses that do not reflect our underlying business performance.
Added
We use this measure to facilitate a comparison of our operating performance on a consistent basis from period to period and to analyze the factors and trends affecting our business. EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP.
Added
We believe that the use of EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors.
Added
EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We had an EBITDA loss of ($5,387,063) for the year ended December 31, 2023, compared to positive EBITDA of $1,369,095 for the year ended December 31, 2022.
Added
EBITDA by segment for the years ended December 31, 2023 and 2022 was as follows: Antimony – Combined USA and Mexico Year ended December 31, 2023 2022 $ Change % Change Revenue $ 5,904,480 $ 7,631,670 $ (1,727,190 ) -22.6 % Cost of sales (8,969,086 ) (6,126,554 ) (2,842,532 ) 46.4 % Gross profit (loss) $ (3,064,606 ) $ 1,505,116 $ (4,569,722 ) -303.6 % Total operating expenses (3,455,592 ) (1,482,526 ) (1,973,066 ) 133.1 % Income (loss) from operations $ (6,520,198 ) $ 22,590 $ (6,542,788 ) -28963.2 % Total other income (expense) 736,378 129,481 606,897 468.7 % Income tax expense - 16,073 (16,073 ) -100.0 % Net income (loss) - antimony $ (5,783,820 ) $ 135,998 $ (5,919,818 ) -4352.9 % Interest expense (6,504 ) 6,884 (13,388 ) -194.5 % Income tax expense - 16,073 (16,073 ) -100.0 % Depreciation and amortization 590,011 630,855 (40,844 ) -6.5 % EBITDA - antimony $ (5,200,313 ) $ 789,810 $ (5,990,123 ) -758.4 % 41 Table of Contents Zeolite Year ended December 31, 2023 2022 $ Change % Change Revenue $ 2,462,179 $ 3,151,330 $ (689,151 ) -21.9 % Cost of sales (2,958,160 ) (2,811,423 ) (146,737 ) 5.2 % Gross profit (loss) $ (495,981 ) $ 339,907 $ (835,888 ) -245.9 % Total operating expenses (268,625 ) (165,459 ) (103,166 ) 62.4 % Income (loss) from operations $ (764,606 ) $ 174,448 $ (939,054 ) -538.3 % Total other income (expense) (15,664 ) (32,952 ) 17,288 -52.5 % Income tax expense - - - n/a Net income (loss) - zeolite $ (780,270 ) $ 141,496 $ (921,766 ) -651.4 % Interest expense 8,283 8,257 26 0.3 % Income tax expense - - - n/a Depreciation and amortization 258,741 167,825 90,916 54.2 % EBITDA - zeolite $ (513,246 ) $ 317,578 $ (830,824 ) -261.6 % Year ended December 31, Precious Metals 2023 2022 $ Change % Change Revenue $ 326,496 $ 261,707 $ 64,789 24.8 % Cost of sales (110,693 ) (110,540 ) (153 ) 0.1 % Gross profit (loss) $ 215,803 $ 151,167 $ 64,636 42.8 % Total operating expenses - - - n/a Income (loss) from operations $ 215,803 $ 151,167 $ 64,636 42.8 % Total other income (expense) - - - n/a Net income (loss) - precious metals $ 215,803 $ 151,167 $ 64,636 42.8 % Interest expense - - - n/a Depreciation and amortization 110,693 110,540 153 0.1 % EBITDA - precious metals $ 326,496 $ 261,707 $ 64,789 24.8 % 42 Table of Contents Consolidated Year ended December 31, 2023 2022 $ Change % Change Revenue $ 8,693,155 $ 11,044,707 $ (2,351,552 ) -21.3 % Cost of sales $ (12,037,939 ) $ (9,048,517 ) (2,989,422 ) 33.0 % Gross profit (loss) $ (3,344,784 ) $ 1,996,190 $ (5,340,974 ) -267.6 % Total operating expenses $ (3,724,217 ) $ (1,647,985 ) (2,076,232 ) 126.0 % Income (loss) from operations $ (7,069,001 ) $ 348,205 $ (7,417,206 ) -2130.1 % Total other income (expense) $ 720,714 $ 96,529 624,185 646.6 % Income tax expense $ - $ 16,073 (16,073 ) -100.0 % Net income (loss) - consolidated $ (6,348,287 ) $ 428,661 $ (6,776,948 ) -1581.0 % Interest expense $ 1,779 $ 15,141 (13,362 ) -88.3 % Income tax expense $ - $ 16,073 (16,073 ) -100.0 % Depreciation and amortization $ 959,445 $ 909,220 50,225 5.5 % EBITDA - consolidated $ (5,387,063 ) $ 1,369,095 $ (6,756,158 ) -493.5 % Liquidity and Capital Resources Our Mexico Antimony Segment has generated significant negative cash flow cumulatively since starting construction in 2009.
Added
In fiscal year 2023, our Mexico Antimony Segment had negative cash flow of approximately $4.1 million. On March 11, 2024, the Company shut down the operations of its Mexico Antimony Segment, as described in the “ Recent Developments ” section of this Annual Report.
Added
Also, the Company intends to sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets. Such sale or lease would provide additional cash.
Added
In the past, the Company has been successful in raising necessary capital from the sale of common stock and warrants and, to a lesser extent, from debt issuance.
Added
However, our ability to access capital when needed is not assured and, if capital is not available when, and in the amounts and terms needed, or if capital is not available at all, the Company could be required to significantly curtail its operations, modify existing strategic plans, and/or dispose of certain operations or assets, which could materially harm our business, prospects, financial condition, and operating results.
Added
Our cash and cash equivalents balance at December 31, 2023 was $11,899,574. We believe that our cash and cash equivalents should be sufficient to fund our operations and meet our working capital, capital expenditure, and contractual obligations for the next 12 months.
Added
Material Cash Requirements We plan to continue reviewing the operations and financial results of each segment to make informed decisions that benefit the Company.
Added
Also, we intend to continue to invest in people, customers, infrastructure, and operations with the goals of increasing production, decreasing costs, and growing revenue profitably and, we intend to fund our cash requirements in 2024 with our cash and cash equivalents. We may use cash to acquire businesses.
Added
The nature of these investments and transactions, however, makes it difficult to predict the amount and timing of such cash requirements. 43 Table of Contents Cash Flows Summary WORKING CAPITAL December 31, December 31, 2023 2022 Current assets $ 14,076,206 $ 21,617,359 Current liabilities (1,433,924 ) (2,219,870 ) Working Capital $ 12,642,282 $ 19,397,489 For the year ended CASH FLOWS December 31, December 31, 2023 2022 Cash provided (used) by operations $ (4,750,026 ) $ (249,277 ) Cash provided (used) by investing (1,341,713 ) (1,785,661 ) Cash provided (used) by financing (1,071,292 ) (267,725 ) Net change in cash and restricted cash for the year ended period $ (7,163,031 ) $ (2,302,663 ) Cash and restricted cash decreased by $7.2 million during the year ended December 31, 2023 primarily due to: 1) $4.1 million of negative cash flow of our Mexico Antimony Segment, 2) $1.3 million on fixed asset purchases for our Zeolite Segment, 3) $0.8 million on a payment to the holders of Series D Preferred Stock, and 4) $0.4 million towards a payment on a royalty obligation that had been accumulating since 2016.
Added
Cash flows used by operating activities increased by $4.5 million in 2023 compared to 2022 primarily due to the differential between the net loss generated during 2023 compared to the net income generated during 2022 as well as the increase in the use of cash for inventory in 2023, both of which were primarily due to our Mexico Antimony Segment.
Added
The increase was partially offset by increases in non-cash charges related to the write-down of our Mexico inventory to net realizable value and reserves recorded on our Mexico VAT receivable and on one customer receivable in our US Antimony Segment.
Added
Cash flow used by investing activities decreased by $0.4 million in 2023 compared to 2022 primarily due to lower purchases of fixed assets in 2023.
Added
Purchases of property, plant, and equipment, which were primarily for our Zeolite Segment, were $1.5 million in 2023 and $1.7 million in 2022, which excludes $0.2 million of fixed assets purchased with equipment financing for our Mexico antimony segment in 2022.
Added
Cash flow used by financing activities increased by $0.8 million in 2023 compared to 2022 primarily due to the payment of dividends of $787,730 on January 25, 2023 to the holders of Series D Preferred Stock.
Added
Off-Balance Sheet Arrangements The Company has no significant off-balance sheet arrangements as defined by the SEC regulations. 44 Table of Contents Critical Accounting Estimates We have the following critical accounting estimates: · The Company reviews and evaluates the net carrying value of its long-lived assets for impairment upon the occurrence of events or changes in circumstances that indicate that the related carrying amounts may not be recoverable.
Added
A test for recoverability is performed based on the estimated undiscounted future cash flows that will be generated from operations at each property and the estimated salvage value of asset. There are many assumptions underlying future cash flows that are subject to significant risks and uncertainties, which include the estimated value of the assets.
Added
Estimates of undiscounted future cash flows and salvage values are dependent upon, among other factors, estimates of: (i) product and metals to be recovered from identified mineralization and other resources, (ii) future production and capital costs, (iii) estimated selling prices over the estimated remaining life of the asset and (iv) market values of assets.
Added
The Company reviews its business and operations for indications of impairment and, when indications are present, performs an impairment test. The Company will involve a third-party expert when needed.
Added
However, it is possible that changes could occur in the near term that could adversely affect the estimate of future cash flows and salvage values to be generated from operating assets resulting in an impairment loss. · The asset retirement obligation in our Consolidated Balance Sheet is based on an estimate of future costs to reclaim properties and retire fixed assets as required by permits, government regulations, and lease or other contractual requirements upon cessation of our operations.
Added
Determination of any amounts included in the determination of the fair value of the asset retirement obligation can change periodically as the calculation of the fair value of the asset retirement obligation is based upon numerous estimates and assumptions, including, among others, future retirement costs, future inflation rate, and the Company’s credit-adjusted risk-free interest rate.
Added
Also, there are uncertainties associated with the nature, timing, and extent of costs associated with asset retirement obligations, including, among others, the extent of environmental contamination, revisions to laws and regulations by regulatory authorities, and changes in remediation technology. As a result, the ultimate cost as well as the timing of the retirement obligation could change in the future.
Added
The Company continually reviews its asset retirement obligations for indications that its asset retirement obligation cost or timing has changed and, when indications are present, recalculates its asset retirement obligation. Also, there are many technical components of an asset retirement obligation. Therefore, the Company will involve a third-party expert when needed to recalculate its asset retirement obligations.
Added
However, actual costs to reclaim and retire property and fixed assets when we cease operations may differ from our estimates.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

75 edited+20 added−28 removed92 unchanged
We are subject to all of the risks associated with establishing new mining operations, including: · the timing and cost, which can be considerable, of the construction of mining and processing facilities and related infrastructure; · the availability and cost of skilled labor and mining equipment; · the availability and cost of appropriate smelting and/or refining arrangements; · the need to obtain and maintain necessary environmental and other governmental approvals and permits, and the timing of those approvals and permits; · in the event that the required permits are not obtained in a timely manner, mine construction and ramp-up will be delayed and the risks of government environmental authorities issuing directives or commencing enforcement proceedings to cease operations or administrative, civil and criminal sanctions being imposed on our company, directors and employees; · delays in obtaining, or a failure to obtain, access to surface rights required for current or future operations; · the availability of funds to finance construction and development activities; · potential opposition from non-governmental organizations, environmental groups or local community groups which may delay or prevent development activities; and · potential increases in construction and operating costs due to changes in the cost of fuel, power, materials and supplies and foreign exchange rates.
We are subject to all the risks associated with establishing new mining operations, including: · the timing and cost, which can be considerable, of the construction of mining and processing facilities and related infrastructure; · the availability and cost of skilled labor and mining equipment; · the availability and cost of appropriate smelting and/or refining arrangements; · the need to obtain and maintain necessary environmental and other governmental approvals and permits, and the timing of those approvals and permits; · in the event that the required permits are not obtained in a timely manner, mine construction and ramp-up will be delayed and the risks of government environmental authorities issuing directives or commencing enforcement proceedings to cease operations or administrative, civil and criminal sanctions being imposed on our company, directors and employees; · delays in obtaining, or a failure to obtain, access to surface rights required for current or future operations; · the availability of funds to finance construction and development activities; · potential opposition from non-governmental organizations, environmental groups or local community groups which may delay or prevent development activities; and · potential increases in construction and operating costs due to changes in the cost of fuel, power, materials and supplies and foreign exchange rates.
Mexican inflation, restrictive exchange control policies and fluctuations in the peso exchange rate may adversely affect our financial condition and results of operations. Although all of our Mexican operations’ sales of metals are priced and invoiced in U.S. dollars, a substantial portion of its costs are denominated in pesos.
Mexican inflation, restrictive exchange control policies and fluctuations in the peso exchange rate may adversely affect our financial condition and results of operations. Although all our Mexican operations’ sales of metals are priced and invoiced in U.S. dollars, a substantial portion of its costs are denominated in pesos.
Mining accidents and fatalities or toxic waste releases, whether or not at our mines or related to metals mining, may increase the likelihood of additional regulation or changes in law or enhanced regulatory scrutiny. In addition, enforcement or regulatory tools and methods available to regulatory bodies such as MSHA or the U.S.
Mining accidents and fatalities or toxic waste releases, whether at our mines or related to metals mining, may increase the likelihood of additional regulation or changes in law or enhanced regulatory scrutiny. In addition, enforcement or regulatory tools and methods available to regulatory bodies such as MSHA or the U.S.
The specific requirements may change and vary among jurisdictions, but they are similar in that they aim to minimize long term effects of exploration and mining disturbance by requiring the control of possible deleterious effluents and re-establishment to some degree of pre-disturbance land forms and vegetation.
The specific requirements may change and vary among jurisdictions, but they are similar in that they aim to minimize long term effects of exploration and mining and processing disturbance by requiring the control of possible deleterious effluents and re-establishment to some degree of pre-disturbance land forms and vegetation.
Compliance with these rules and regulations may be difficult, time-consuming, or costly, and compliance may increase demand on our systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly, and current reports with respect to our business and operating results.
Compliance with these rules and regulations may be difficult, time-consuming, or costly, and compliance may increase demand on processes, systems, and resources. The Exchange Act requires, among other things, that we file annual, quarterly, and current reports with respect to our business and operating results.
Mineral exploration is subject to risks of human injury, environmental and legal liability and loss of assets. We may elect not to have insurance for certain risks because of the high premiums associated with insuring those risks or, in some cases, insurance may not be available for certain risks.
Mineral exploration and processing is subject to risks of human injury, environmental and legal liability and loss of assets. We may elect not to have insurance for certain risks because of the high premiums associated with insuring those risks or, in some cases, insurance may not be available for certain risks.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. As described in “Item 9A.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of annual or interim financial statements will not be prevented or detected on a timely basis. As described in “Item 9A.
No assurances can be provided that we will be able to secure required surface rights on favorable terms, or at all. Any failure by us to secure surface rights could prevent or delay development of our projects. Insurance may not be available to us.
No assurances can be provided that we will be able to secure required surface rights on favorable terms, or at all. Any failure by us to secure surface rights could prevent or delay the development of our projects. Insurance may not be available to us.
We are subject to the continued listing criteria of the NYSE American and such exchange will consider suspending dealings in, or delisting, securities of an issuer that does not meet its continued listing standards. We may not be able to satisfy these requirements.
We are subject to the continued listing standards of the NYSE American and such exchange will consider suspending dealings in, or delisting, securities of an issuer that does not meet its continued listing standards. We may not be able to satisfy these requirements.
Occurrence of events for which we are not insured could have a material adverse effect on our financial position or results of operations. Our business depends on availability of skilled personnel and good relations with employees.
The occurrence of events for which we are not insured could have a material adverse effect on our financial position or results of operations. Our business depends on the availability of skilled personnel and good relations with employees.
As has occurred in other metal producing countries, the mining industry may be perceived as a source of additional fiscal revenue. In addition, public safety organizations in Mexico are under significant stress, as a result of drug-related violence. This situation creates potential risks, particularly for transportation of minerals and finished products, which may affect a small portion of our production.
As has occurred in other metal producing countries, the mining industry may be perceived as a source of additional fiscal revenue. In addition, public safety organizations in Mexico are under significant stress, because of drug-related violence. This situation creates potential risks, particularly for transportation of minerals and finished products, which may affect a small portion of our production.
Any failure to comply with applicable regulations could adversely affect our ability make accurate and timely financial and other disclosures to investors, attract and maintain key personnel and investors, and use our funds for intended purposes. It may also subject us to the risk of litigation or regulatory enforcement actions against us.
Any failure to comply with applicable regulations could adversely affect our stock price and our ability to make accurate and timely financial and other disclosures to investors, attract and maintain key personnel and investors, and use our funds for intended purposes. It may also subject us to the risk of litigation or regulatory enforcement actions against us.
Any termination or unfavorable modification of the terms of one or more of our concessions, or failure to obtain renewals of such concessions subject to renewal or extensions, could have a material adverse effect on our financial condition and prospects. Mexican economic and political conditions, as well as drug-related violence, may have an adverse impact on our business.
Any termination or unfavorable modification of the terms of one or more of our concessions, or failure to obtain renewals of such concessions subject to renewal or extensions, could have an adverse effect on our financial condition and prospects. Mexican economic and political conditions, as well as drug-related violence, may have an adverse impact on our business.
Our business could be materially and adversely affected by the risks, or the public perception of the risks, related to a pandemic or other health crisis, such as the recent outbreak of novel coronavirus (COVID-19). A significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect our planned operations.
Our business could be materially and adversely affected by the risks, or the public perception of the risks, related to a pandemic or other health crisis, such as the recent outbreak of novel coronavirus. A significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect our planned operations.
If we were liquidated, holders of our preferred stock would be entitled to receive approximately $750,000 (plus any accrued and unpaid dividends) from any liquidation proceeds before holders of our common stock would be entitled to receive any proceeds. Our Series C preferred stock has a liquidation preference of $0.55 per share or $97,847.
If we were liquidated, holders of our preferred stock would be entitled to receive approximately $750,000 plus any accumulated and unpaid dividends from any liquidation proceeds before holders of our common stock would be entitled to receive any proceeds. Our Series C preferred stock has a liquidation preference of $0.55 per share or $97,847.
We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.
We face substantial governmental regulations, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.
Because liability under CERCLA is often alleged on a joint and several basis against any property owner or operator or arranger for the transport of hazardous waste, and because we have been in operation since 1969 1891, our exposure to environmental claims may be greater because of the bankruptcy or dissolution of other mining companies which may have engaged in more significant activities at a mining site than we but which are no longer available for governmental agencies or other claimants to make claims against or obtain judgments from.
Because liability under CERCLA is often alleged on a joint and several basis against any property owner or operator or arranger for the transport of hazardous waste, and because we have been in operation since around 1968, our exposure to environmental claims may be greater because of the bankruptcy or dissolution of other mining companies which may have engaged in more significant activities at a mining site than we but which are no longer available for governmental agencies or other claimants to make claims against or obtain judgments from.
The ability of a purchaser of shares to recover all, or any portion, of the purchase price for the shares, in that event, will depend on the amount of funds realized and the claims to be satisfied by those funds. Our Series B preferred stock has a liquidation preference of $1.00 per share or $750,000.
The ability of a purchaser of shares to recover all, or any portion, of the purchase price for the shares, in that event, will depend on the amount of funds realized and the claims to be satisfied by those funds. Our Series B preferred stock has a liquidation preference of $1.00 per share or $750,000 plus accumulated dividends.
A decline in the market prices of the securities could impair our ability to raise additional capital through the sale of additional securities should we desire to do so. The provisions in our certificate of incorporation, our by-laws and Montana law could delay or deter tender offers or takeover attempts.
A decline in the market prices of the securities could impair our ability to raise additional capital through the sale of additional securities should we desire to do so. 19 Table of Contents The provisions in our certificate of incorporation, our by-laws and Montana law could delay or deter tender offers or takeover attempts.
A significant disruption to our information technology could adversely affect our business, operating result and financial position. We rely on a variety of information technology and automated systems to manage and support our operations. For example, we depend on our information technology systems for financial reporting, data base management, operational and investment management and internal communications.
A significant disruption to our information technology could adversely affect our business, operating result and financial position. We rely on a variety of information technology and automated systems to manage and support our operations. For example, we depend on our information technology systems for financial reporting, database management, operational and investment management and internal communications.
The establishment and maintenance of infrastructure, and services are subject to a number of risks, including risks related to the availability of equipment and materials, inflation, cost overruns and delays, political or community opposition and reliance upon third parties, many of which are outside our control.
The establishment and maintenance of infrastructure, and services are subject to several risks, including risks related to the availability of equipment and materials, inflation, cost overruns and delays, political or community opposition and reliance upon third parties, many of which are outside our control.
Such liabilities may have a material adverse effect on our financial condition and operations and could reduce or eliminate any future profitability and result in increased costs and a decline in the value of our securities. Page 16 of 91 Table of Contents Our non-extractive properties may not be brought into a state of commercial production.
Such liabilities may have a material adverse effect on our financial condition and operations and could reduce or eliminate any future profitability and result in increased costs and a decline in the value of our securities. 15 Table of Contents Our non-extractive properties may not be brought into the state of commercial production.
We cannot guarantee title to all of its properties as the properties may be subject to prior mineral rights applications with priority, prior unregistered agreements or transfers or indigenous peoples' land claims, and title may be affected by undetected defects.
We cannot guarantee title to all our properties as the properties may be subject to prior mineral rights applications with priority, prior unregistered agreements or transfers or indigenous peoples' land claims, and title may be affected by undetected defects.
The extent of any future changes is not known and the potential impact on us as a result of U.S. Congressional action is difficult to predict. Changes to the 1872 Mining Law, if adopted, could adversely affect our ability to economically develop mineral reserves on federal lands. For example, in 2021 the U.S.
The extent of any future changes is not known and the potential impact on us because of U.S. Congressional action is difficult to predict. Changes to the 1872 Mining Law, if adopted, could adversely affect our ability to economically develop mineral reserves on federal lands. For example, in 2021 the U.S.
Any unauthorized activities could disrupt our operations, damage our reputation, be costly to fix or result in legal claims or proceedings, any of which could adversely affect our business, reputation or operating results. Page 18 of 91 Table of Contents Competition from other mining companies may harm our business.
Any unauthorized activities could disrupt our operations, damage our reputation, be costly to fix or result in legal claims or proceedings, any of which could adversely affect our business, reputation or operating results. 17 Table of Contents Competition from other mining companies may harm our business.
A delay in obtaining necessary equipment for mineral exploration, including drill rigs, could have a material adverse effect on our operations and financial results. Page 17 of 91 Table of Contents Mining, processing, development and exploration activities also depend, to one degree or another, on the availability of adequate infrastructure.
A delay in obtaining necessary equipment for mineral exploration, including drill rigs, could have a material adverse effect on our operations and financial results. Mining, processing, development and exploration activities also depend, to one degree or another, on the availability of adequate infrastructure.
An accident or injury to a person at or near one of our operations could have a material adverse effect on our financial condition and results of operations. Page 15 of 91 Table of Contents We may not be able to maintain the infrastructure necessary to conduct mining activities. Our mining activities depend upon adequate infrastructure.
An accident or injury to a person at or near one of our operations could have a material adverse effect on our financial condition and results of operations. We may not be able to maintain the infrastructure necessary to conduct mining activities. Our mining activities depend upon adequate infrastructure.
The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay development or ongoing operation of our projects. Exploration of mineral properties is less intrusive, and generally requires fewer surface and access rights, than properties developed for mining.
The lack of availability of acceptable terms or the delay in the availability of any one or more of these items could prevent or delay the development or ongoing operation of our projects. 16 Table of Contents Exploration of mineral properties is less intrusive and requires fewer surface and access rights than properties developed for mining.
In addition, subsequent to our most recent fiscal year end, we determined that one of the members of our Board’s Audit Committee, Joseph Bardswich, did not satisfy the SEC and NYSE American independence requirements applicable to an Audit Committee member, because he was concurrently receiving compensation for serving as our geologic and investor relations consultant.
In addition, in early fiscal year 2023, we determined that one of the members of our Board’s Audit Committee, Joseph Bardswich, did not satisfy the SEC and NYSE American independence requirements applicable to an Audit Committee member, because he was concurrently receiving compensation for serving as our geologic and investor relations consultant.
To the extent any such initiative was passed and became law, there could be a material adverse impact on our financial condition, results of operations or cash flows. Page 26 of 91 Table of Contents We cannot guarantee title to all of our properties.
To the extent any such initiative was passed and became law, there could be a material adverse impact on our financial condition, results of operations or cash flows. We cannot guarantee title to all of our properties.
Adverse outcomes in lawsuits challenging permits or failure to comply with applicable regulations or permits could result in the suspension, denial, or revocation of required permits, or the imposition of penalties, any of which could have a material adverse impact on our cash flows, results of operations, or financial condition. See Note 12 of Notes to Consolidated Financial Statements .
Adverse outcomes in lawsuits challenging permits or failure to comply with applicable regulations or permits could result in the suspension, denial, or revocation of required permits, or the imposition of penalties, any of which could have a material adverse impact on our cash flows, results of operations, or financial condition.
Any security breach could compromise our networks, and the information contained there-in could be improperly accessed, disclosed, lost or stolen.
Any security breach could compromise our networks, and the information contained therein could be improperly accessed, disclosed, lost or stolen.
As a result of higher capital and operating costs, production and economic returns may differ significantly from those we have anticipated. We may face equipment shortages, access restrictions and lack of infrastructure. Natural resource exploration, development and mining activities are dependent on the availability of mining, drilling and related equipment in the particular areas where such activities are conducted.
Due to higher capital and operating costs, production and economic returns may differ significantly from those we anticipated. We may face equipment shortages, access restrictions and lack of infrastructure. Natural resource exploration, development and mining activities are dependent on the availability of mining, drilling and related equipment in the areas where such activities are conducted.
Certain of our mining properties and smelter operations are located in Mexico and may be subject to geo-political risk. Certain of our mining properties and smelter operations are located in Mexico. Any political or social disruptions unique to Mexico would have a material impact on our operations, financial performance and stability.
Certain operations are in Mexico and may be subject to geo-political risk. Certain operations are in Mexico. Any political or social disruptions unique to Mexico would have a material impact on our operations, financial performance and stability.
If we are found to be responsible for any such conduct, our ability to operate existing projects or develop new projects might be impaired until we satisfy costly conditions. We cannot assure you that we will at all times be in compliance with applicable laws, regulations and permitting requirements.
If we are found to be responsible for any such conduct, our ability to operate existing projects or develop new projects might be impaired until we satisfy costly conditions. 21 Table of Contents We cannot assure you that we will always be in compliance with applicable laws, regulations and permitting requirements.
Development of mineral properties involves a high degree of risk and few properties that are explored are ultimately developed into producing mines. The commercial viability of a mineral deposit is dependent upon a number of factors which are beyond our control, including the attributes of the deposit, commodity prices, government policies and regulation and environmental protection.
Development of mineral properties involves a high degree of risk and few properties that are explored are ultimately developed into producing mines. The commercial viability of a mineral deposit depends on factors beyond our control, including the deposit's attributes, commodity prices, government policies and regulation and environmental protection.
Therefore, while we have attempted to acquire satisfactory title to our undeveloped properties, some titles may be defective. We do not maintain title insurance on our properties. There is uncertainty as to the termination and renewal of our mining concessions. Under the laws of Mexico, mineral resources belong to the state and government.
Therefore, while we have attempted to acquire satisfactory title to our undeveloped properties, some titles may be defective. We do not maintain title insurance on our properties. There is uncertainty as to the termination and renewal of our mining concessions.
Because we have significant operations in Mexico, we cannot provide any assurance that political developments and economic conditions, including any changes to economic policies or the adoption of other reforms proposed by existing or future administrations in Mexico, or the advent of drug-related violence in the country, will have no material adverse effect on market conditions, the prices of our securities, our ability to obtain financing, our results of operations or our financial condition.
However, we cannot provide any assurance that political developments and economic conditions in Mexico, including any changes to economic policies, changes to government regulations, requirements, and restrictions on VAT refunds, the adoption of other reforms proposed by existing or future administrations in Mexico, or the advent of drug-related violence in the country, will have no material adverse effect on the price of our securities, our ability to obtain financing, and our results of operations or financial condition.
If we are unable to acquire the talents we seek, we could experience higher operating costs, poorer results and an overall lack of success in implementing our business plans. Page 19 of 91 Table of Contents The price of our common stock has a history of volatility and could decline in the future.
If we are unable to acquire the talents we seek, we could experience higher operating costs, poorer results, and an overall lack of success in implementing our business plans. The price of our common stock has a history of volatility and could decline in the future. Shares of our common stock are listed on NYSE American.
The market price for our common stock has been volatile, often based on: · changes in metals prices, particularly antimony; · our results of operations and financial condition as reflected in our public news releases or periodic filings with the SEC; · factors unrelated to our financial performance or future prospects, such as global economic developments, market perceptions of the attractiveness of particular industries, or the reliability of metals markets; · political and regulatory risk; · the success of our exploration, pre-development, and capital programs; · ability to meet production estimates; · environmental, safety and legal risk; · the extent and nature of analytical coverage concerning our business; · the trading volume and general market interest in our securities; and · delayed financial filings with the Securities Exchange Commission.
The market price for our common stock has been volatile, often based on: · changes in metals prices, particularly antimony; · our results of operations and financial condition as reflected in our public news releases or periodic filings with the SEC; · factors unrelated to our financial performance or prospects, such as global economic developments, market perceptions of the attractiveness of industries, or the reliability of metals markets; · political and regulatory risk; · the success of our exploration, pre-development, and capital programs; · ability to meet production estimates; · environmental, safety and legal risk; · the extent and nature of analytical coverage concerning our business; · the trading volume and general market interest in our securities; and · delayed financial filings with the Securities Exchange Commission. 18 Table of Contents The market price of our stock at any given point in time may not accurately reflect our value, and may prevent stockholders from realizing a profit on, or recovering, their investment.
Drug-related violence has had a limited impact on our operations, as it has tended to concentrate outside of our areas of production. The potential risks to our operations might increase if the violence spreads to our areas of production.
Drug-related violence has had a limited impact on our operations, as it has tended to concentrate outside of our areas of production.
Earthquakes, heavy rains, snowstorms, and floods could result in serious damage to or the destruction of facilities, equipment or means of access to our property, or could occasionally prevent us temporarily from conducting mining activities on our property. [Because of their rural location and the lack of developed infrastructure in the area, our mineral properties in Montana and Idaho are occasionally impassable during the winter season.] During this time, it may be difficult for us to access our property, maintain production rates, make repairs, or otherwise conduct mining activities on them.
Because of their rural location and the lack of developed infrastructure in the area, our mineral properties in Montana and Idaho are occasionally impassable during the winter season. During this time, it may be difficult for us to access our property, maintain production rates, make repairs, or otherwise conduct mining activities on them.
Risks Relating to Our Organization and Common Stock Our Articles of Incorporation allow for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect the rights of the holders of our common stock.
Organizational and Common Stock Risks Our Articles of Incorporation allow for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect the rights of the holders of our common stock. Our board of directors (the “Board”) has the authority to fix and determine the relative rights and preferences of preferred stock.
Unusual or unexpected geological formations, geological formation pressures, fires, power outages, labor disruptions, flooding, explosions, cave-ins, landslides and the inability to obtain suitable or adequate machinery, equipment or labor are just some of the many risks involved in mineral exploration programs and the subsequent development of gold deposits.
Unusual or unexpected geological formations, geological formation pressures, fires, power outages, labor disruptions, flooding, explosions, cave-ins, landslides and the inability to obtain suitable or adequate machinery, equipment or labor are just some of the many risks involved in mineral exploration programs. If we are unable to extract zeolite at a profit, our zeolite business could fail.
In addition, we must obtain regulatory permits and approvals to start, continue and expand operations. New or revised environmental regulatory requirements are frequently proposed, many of which result in substantially increased costs for our business.
In addition, we must obtain regulatory permits and approvals to start, continue and expand operations. New or revised environmental regulatory requirements are frequently proposed, many of which result in substantially increased costs for our business. Our U.S. operations are subject to the Clean Water Act, which requires permits for certain discharges into waters of the United States.
In the event of our dissolution, the proceeds, if any, realized from the liquidation of our assets will be distributed to our stockholders only after the satisfaction of the claims of our creditors and preferred stockholders.
If we were liquidated, our common stockholders could lose part, or all, of their investment . In the event of our dissolution, the proceeds, if any, realized from the liquidation of our assets will be distributed to our stockholders only after the satisfaction of the claims of our creditors and preferred stockholders.
Therefore, concessions are required in both countries to explore or exploit mineral reserves. In Mexico, our mineral rights derive from concessions granted, on a discretionary basis, by the Ministry of Economy, pursuant to Mexican mining law and regulations thereunder. Mining concessions in Mexico may be terminated if the obligations of the concessioner are not satisfied.
Under the laws of Mexico, mineral resources belong to the state, and therefore, concessions are required to explore or exploit mineral reserves. In Mexico, mineral rights derive from concessions granted, on a discretionary basis, by the Ministry of Economy, pursuant to Mexican mining law and regulations thereunder.
The Mexican economy is highly sensitive to economic developments in the United States, mainly because of its high level of exports to this market. Other risks in Mexico are increases in taxes on the mining sector and higher royalties, such as those enacted in 2013.
The Mexican economy is highly sensitive to economic developments in the United States, mainly because of its high level of exports to this market. Other risks in Mexico are increases in taxes on the mining sector, higher royalties, and increased government regulations, requirements, and restrictions on Value Added Tax (“VAT” or “IVA”) refunds.
Further, substantial costs and liabilities, including for restoring the environment after the closure of mines, are inherent in our operations. There is no assurance that any such law, regulation, enforcement or private claim, or reclamation activity, would not have a material adverse effect on our financial condition, results of operations or cash flows.
There is no assurance that any such law, regulation, enforcement or private claim, or reclamation activity, would not have a material adverse effect on our financial condition, results of operations or cash flows.
We are often required to post surety bonds or cash collateral to secure our reclamation obligations and we may be unable to obtain the required surety bonds or may not have the resources to provide cash collateral, and the bonds or collateral may not fully cover the cost of reclamation and any such shortfall could have a material adverse impact on our financial condition.
It is possible that the costs and delays associated with the compliance with evolving standards and regulations could become such that we would not proceed with a particular development or operation. 23 Table of Contents We are often required to post surety bonds or cash collateral to secure our reclamation obligations and we may be unable to obtain the required surety bonds or may not have the resources to provide cash collateral, and the bonds or collateral may not fully cover the cost of reclamation and any such shortfall could have a material adverse impact on our financial condition.
Proposed measures could also result in increased cost of fuel and other consumables used at our operations. Adoption of these or similar new environmental regulations or more stringent application of existing regulations may materially increase our costs, threaten certain operating activities and constrain our expansion opportunities.
Adoption of these or similar new environmental regulations or more stringent application of existing regulations may materially increase our costs, threaten certain operating activities and constrain our expansion opportunities.
Any changes in regulations or shifts in political conditions are beyond our control or influence and may adversely affect our business, or if significant enough, may result in the impairment or loss of mineral concessions or other mineral rights, or may make it impossible to continue its mineral exploration and mining activities in such areas.
Any changes in regulations or shifts in political conditions are beyond our control or influence and may adversely affect our business, or if significant enough, may result in the impairment or loss of mineral concessions or other mineral rights. Our operations are subject to hazards and risks normally associated with the exploration and development of mineral properties.
Page 21 of 91 Table of Contents Legal, Regulatory and Compliance Risks As a public company, we are obligated to develop and maintain proper and effective disclosure controls and procedures and internal control over financial reporting, and if we fail to develop and maintain an effective system of disclosure controls and procedures and internal control over financial reporting, our ability to produce timely and accurate financial statements and other required disclosures and to comply with applicable laws and regulations could be impaired.
If we fail to develop and maintain an effective system of internal control over financial reporting, our ability to produce timely and accurate financial statements and other required disclosures and to comply with applicable laws and regulations could be impaired.
Such events could result in the complete or partial closure of our operations. In addition, it could impact economies and financial markets, resulting in an economic downturn that could impact our ability to raise capital.
Such events could result in the complete or partial closure of our operations, as well as the domestic and global economies and financial markets, resulting in an economic downturn that could impact our ability to raise capital. Increases in energy costs may adversely affect our business, financial position, results of operations and liquidity.
We have identified material weaknesses in our internal control over financial reporting and deficiencies in our disclosure controls and procedures, that, if not properly remediated, could adversely affect our business and results of operations.
Also, if deficiencies in our internal control over financial reporting are not properly remediated, it could adversely affect our business and results of operations.
Page 25 of 91 Table of Contents The laws and regulations, changes in such laws and regulations, and lawsuits and enforcement actions described in this risk factor could lead to the imposition of substantial fines, remediation costs, penalties and other civil and criminal sanctions against us.
The laws and regulations, changes in such laws and regulations, and lawsuits and enforcement actions described in this risk factor could lead to the imposition of substantial fines, remediation costs, penalties and other civil and criminal sanctions against us. Further, substantial costs and liabilities, including for restoring the environment after the closure of mines, are inherent in our operations.
Legislative and regulatory measures to address climate change and greenhouse gas emissions are in various phases of consideration. If adopted, such measures could increase our cost of environmental compliance and also delay or otherwise negatively affect efforts to obtain permits and other regulatory approvals with regard to existing and new facilities.
If adopted, such measures could increase our cost of environmental compliance and also delay or otherwise negatively affect efforts to obtain permits and other regulatory approvals with regard to existing and new facilities. Proposed measures could also result in increased cost of fuel and other consumables used at our operations.
Our board of directors (the “Board”) has the authority to fix and determine the relative rights and preferences of preferred stock. Our Board also has the authority to issue preferred stock without further stockholder approval.
Our Board also has the authority to issue preferred stock without further stockholder approval.
Page 23 of 91 Table of Contents U.S. surface and underground mines like those at our Preston Operations are inspected at least quarterly by MSHA, which inspections often lead to notices of violation under the Mine Safety and Health Act.
U.S. surface and underground mines like those at our Preston Operations are inspected periodically by MSHA, which inspections often lead to notices of violation under the Mine Safety and Health Act. Our facilities or mines at Preston Idaho could be subject to a temporary or extended shutdown due to a violation alleged by MSHA.
Item 7. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations , Note 2 of Notes to Consolidated Financial Statements. ” Risks Related to Our Operations and the Mining Industry Mining is an inherently speculative business.
Item 7. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations and Note 2 of the Notes to Consolidated Financial Statements in this Annual Report. Operational and Mining Industry Risks Mining is an inherently speculative business. The properties on which we have the right to mine are not known to have any proven and probable reserves.
Our Board is authorized to issue additional classes or series of preferred stock without any action on the part of our stockholders.
The market price of our common stock may be influenced by any preferred or common stock or options, warrants, convertible debt or other rights to acquire any preferred or common stock we may issue. Our Board is authorized to issue additional classes or series of preferred stock without any action on the part of our stockholders.
In order to maintain our NYSE American listing, we must maintain certain objective standards, such as corporate governance requirements, share prices, shareholders’ equity, market capitalization and, share distribution targets.
To maintain our NYSE American listing, we must maintain certain standards, such as various corporate governance standards as well as minimum levels or values related to share price, shareholders’ equity balance, market capitalization value, and various share distribution levels.
If we lose John Gustavsen, our Chief Executive Officer, or any of our other key personnel, we may encounter difficulty replacing their expertise, which could impair our ability to implement our business plan successfully.
If we lose any of our key personnel, we may encounter difficulty replacing their expertise, which could impair our ability to implement our business plan successfully. We believe that our ability to implement our business strategy and our future success depends on the continued employment of our management team.
The imposition of exchange control policies could impair our ability to obtain imported goods and to meet its U.S. dollar-denominated obligations and could have an adverse effect on our business and financial condition. Page 27 of 91 Table of Contents Item 1B. Unresolved Staff Comments .
The imposition of exchange control policies could impair our ability to obtain imported goods and to meet its U.S. dollar-denominated obligations and could have an adverse effect on our business and financial condition. Not realizing the value of our USAMSA assets in Mexico upon sale, lease, or disposal may adversely affect our results of operations and financial condition.
Controls and Procedures,” we have concluded that our internal control over financial reporting was ineffective as of December 31, 2022 due to material weaknesses in our internal control over financial reporting.
Controls and Procedures” of this Annual Report, we have concluded that our internal control over financial reporting was ineffective as of December 31, 2023 due to material weaknesses in our internal control over financial reporting. The identified material weaknesses related primarily to lack of segregation of duties. We intend to take the necessary steps to remediate these material weaknesses.
We have not completed an S-K 1300 technical report summary, nor have we declared proven and probable mineral reserves on any of our properties. Where applicable, we have commenced extraction activities prior to identifying a mineral reserve.
We have not completed an S-K 1300 technical report summary, nor have we declared proven and probable mineral reserves at our BRZ plant where we are extracting zeolite.
If we are unable to extract antimony, zeolite or other minerals which can be mined at a profit, our business could fail. Natural disasters, public health crises (including COVID-19), political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results.
Natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results.
If we were liquidated, holders of our preferred stock would be entitled to receive approximately $97,847 (plus any accrued and unpaid dividends) from any liquidation proceeds before holders of our common stock would be entitled to receive any proceeds, but after holders of all notes issued under the indenture governing our Senior Notes received any proceeds.
If we were liquidated, holders of our preferred stock would be entitled to receive approximately $97,847 from any liquidation proceeds before holders of our common stock would be entitled to receive any proceeds. We do not expect to pay dividends to our stockholders in the foreseeable future. We have no plans to pay dividends in the foreseeable future.
We do not expect to pay dividends to our stockholders in the foreseeable future. We have no plans to pay dividends in the foreseeable future. Our directors will determine if and when dividends should be declared and paid in the future based on our financial position at the relevant time.
Our directors will determine if and when dividends should be declared and paid in the future based on our financial position at the relevant time. The issuance of additional equity securities in the future could adversely affect holders of our common stock.
The owner or operator also may be liable to federal, state and tribal governmental entities for the cost of damages to natural resources, which could be substantial. Additional regulations or requirements also are imposed on our tailings and waste disposal areas in Alaska under the federal Clean Water Act. See Note 12 of Notes to Consolidated Financial Statements .
The owner or operator also may be liable to federal, state and tribal governmental entities for the cost of damages to natural resources, which could be substantial.
Accordingly, when inflation in Mexico increases without a corresponding depreciation of the peso, the net income generated by our Mexican operations is adversely affected. Inflation in Mexico was 7.8% in 2022, 7.4% in 2021 and 3.2% in 2020.
Accordingly, when inflation in Mexico increases without a corresponding depreciation of the peso, the net income generated by our Mexican operations is adversely affected. The peso has been subject in the past to significant volatility, which may not have been proportionate to the inflation rate and may not be proportionate to the inflation rate in the future.
However, we were unable to resolve these matters during our 2022 fiscal year and cannot assure you that we will be successful in implementing effective internal control over financial reporting and disclosure controls and procedures during 2023 or that, once implemented, such controls will remain effective.
However, we cannot assure you that we will be successful in implementing effective internal control over financial reporting during 2024 or that, once implemented, such controls will remain effective. 20 Table of Contents It may require significant resources and management oversight to effectively comply with our regulatory obligations and to avoid future violations.
In addition, amendment of most of the provisions described above requires approval of at least 80% of the outstanding voting stock.
In addition, amendment of most of the provisions described above requires approval of at least 80% of the outstanding voting stock. Legal, Regulatory, and Compliance Risks As a public company, we are obligated to develop and maintain proper and effective internal control over financial reporting.
If we are unable to extract antimony, zeolite or other minerals which can be mined at a profit, our business could fail. Page 14 of 91 Table of Contents Natural resource mining, and precious metal mining, in particular, is a business that by its nature is speculative.
We extracted zeolite without completing the technical work required to declare a mineral reserve. If we are unable to extract zeolite at a profit, our business could fail. Mining is a business that by its nature is speculative.
Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations.
Any increase in our electricity and other energy prices not tied to corresponding increases in the prices for the commodities we sell could have a material adverse effect on our business, financial position, results of operations and liquidity. 14 Table of Contents Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations.
Removed
The properties on which we have the right to mine for precious minerals are not known to have any proven and probable mineral reserves and we have proceeded to extract minerals without having completed the technical work required to declare a mineral reserve.
Added
We are substantially dependent on a few significant customers and the ordering levels for our products may vary based on customer needs. Further, we face significant risks associated with changes in our relationship with these significant customers. Historically, most of our revenues are concentrated with a limited number of customers.
Removed
There is a strong possibility that we will not discover antimony, zeolite, or any other minerals which can be mined or extracted at a profit.
Added
Some of the markets we serve have a limited number of customers. In 2023, three customers accounted for more than 10% of our consolidated revenues, and our three largest customers accounted for 46% of our consolidated revenues. Additionally, not all our customers make purchases every year.
Removed
Even if we do discover and mine precious metal deposits, the deposits may not be of the quality or size necessary for us or a potential purchaser of the property to make a profit from mining it. Few properties that are explored are ultimately developed into producing mines, and mines that are developed may not be profitable.

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