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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 — 2023 vs 2024

Top changes in UNITED STATES ANTIMONY CORP's 2024 10-K

254 paragraphs added · 270 removed · 166 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

42 edited+35 added−28 removed7 unchanged
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.
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 refined and unrefined gold and silver.
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.
Forest Service extensively regulates mining operations conducted in National Forests. Department of Interior regulations cover mining operations carried out on most other public lands.
(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.
(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. Our zeolite has been used in: ☐ Soil Amendment and Fertilizer .
When regulatory agencies require additional tasks to be performed in connection with our environmental responsibilities, we evaluate the costs required to perform those tasks and adjust our accrual accordingly, as the information becomes available. In all cases, however, our accrual at year-end is based on the best information available at that time to develop estimates of environmental liabilities.
When regulatory agencies require additional tasks to be performed in connection with our environmental responsibilities, we evaluate the costs required to perform those tasks and adjust our accrual accordingly. In all cases, our accrual at year-end is based on the best information available at that time to calculate our asset retirement obligations.
All website addresses in this report are intended to be inactive textual references only. 10 Table of Contents
All website addresses in this report are intended to be inactive textual references only.
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.
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. As a result, we continue to actively pursue additional domestic and foreign sources for antimony ore that are economically profitable.
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.
Our accruals are adjusted when revisions to our cost estimates are needed, which could be due to changes to regulatory requirements. When remediation activity physically commences, we 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 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.
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. We accrued for the retirement obligations in Mexico.
“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.
Bureau of Land Management that is located adjacent to the Company’s Preston, Idaho property after obtaining required permits. “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.
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.
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. We work with these agencies to address issues outlined in any inspection or review and to ensure compliance.
In addition, our operations and exploration activities in Mexico are conducted pursuant to claims or concessions granted by the host government, and otherwise are subject to claims renewal and minimum work commitment requirements, which are subject to certain political risks associated with foreign operations.
In addition, our operations and exploration activities in the United States, Canada, and Mexico are conducted pursuant to claims, concessions, or permits granted by the host government, and are subject to claims renewal and minimum work commitment requirements, which are subject to certain political risks associated with foreign operations. 9 Table of Contents Environmental Our operations are subject to various environmental laws and regulations in the United States, Canada, and Mexico.
See Note 9 and Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further information.
See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further details on these developments.
Retirement and Reclamation Obligations related to our US and Mexico Antimony and Precious Metals Segments We have retirement and reclamation obligations at our closed antimony mine and mill (“the Stibnite Hill Mine Site”) and at our active smelter and precious metals plant, all of which are in the Burns Mining District of Sanders County, Montana, and have accrued $395,811 at December 31, 2023 related to these obligations.
Retirement and Reclamation Obligations related to our Antimony and Zeolite Segments We accrued for the retirement obligations at our closed antimony mine and mill (“the Stibnite Hill Mine Site”) and at our active smelter and precious metals plant, all of which are in the Burns Mining District of Sanders County, Montana. We are under the regulatory jurisdiction of the U.S.
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.
However, our sales and operating results from our antimony products have been and will continue to be tied to the Rotterdam antimony market price, which has fluctuated widely over the past several years. The Rotterdam average market price per pound of antimony was $10.44 in 2024 and $5.50 in 2023.
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.
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. 10 Table of Contents Employees As of December 31, 2024, we employed 60 full-time employees and 2 part-time employees, most of which are located in Montana, Idaho, and Mexico.
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.
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 .
These obligations are under The Secretary of Environment and Natural Resources (“SEMARNAT”) and The Federal Attorney for Environmental Protection (“PROFEPA”) based on the Program for Environmental Vigilance (“PVA”). 9 Table of Contents Retirement and Reclamation Obligation related to our Zeolite Segment We have a retirement and reclamation obligation accrual for BRZ of $670,886 at December 31, 2023 based on the retirement and reclamation requirements of BRZ’s lease with Zeolite LLC and the regulatory authorities.
These obligations are under The Secretary of Environment and Natural Resources (“SEMARNAT”) and The Federal Attorney for Environmental Protection (“PROFEPA”) based on the Program for Environmental Vigilance (“PVA”). We accrued for the retirement obligation for BRZ in Idaho based on the retirement requirements of BRZ’s lease with Zeolite LLC and the regulatory authorities.
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.
The market price of antimony is determined by several variables out of our control. These variables include the available supply of ore, the availability of processing facilities, the availability and price of imported antimony metal, the quantity of new antimony metal supply, and industrial demand for antimony metal.
In addition, they may be able to afford greater geological expertise in the targeting and exploration of mineral properties. This competition could result in competitors having mineral properties of greater quality and interest to prospective investors who may finance additional exploration and development.
This competition could result in competitors having mineral properties of greater quality and interest to prospective investors who may finance additional exploration and development. This competition could adversely impact our ability to finance further exploration and to achieve the financing necessary to develop our mineral properties.
Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. 8 Table of Contents Licenses, Permits and Claims/Concessions We are required to obtain various licenses and permits to operate our mines and conduct exploration and reclamation activities.
Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. Licenses, Permits and Claims/Concessions We are required to obtain various licenses and permits to operate our mine and conduct exploration and reclamation activities. Targets at our Los Juarez exploration project in Mexico can only be developed if we are successful in obtaining the necessary permits.
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.
Antimony trisulfide, oxide, and metal can be sold as finished products to companies in many industries as well as government agencies. Antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs.
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.
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. However, we consider our antimony processing facilities proprietary in nature.
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.
Our zeolite has been used for many purposes including water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, soil amendment and fertilizer, and other miscellaneous applications.
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.
Competitive Advantage We believe we have a competitive advantage due to the following: · We are the only U.S. domestic processor of antimony products. · We can process ore quickly and have minimal shipping time to domestic customers. · We have a reputation for quality products delivered on a timely basis. · We have the only operating, permitted antimony smelter located in the U.S. · Our smelter in Coahuila, Mexico is the largest operating smelter for the processing of antimony products in Mexico.
However, we consider our antimony processing plants proprietary in nature. Available Information We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the internet at the SEC’s website at http://www.sec.gov.
Available Information In May 2012, our shares of common stock started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY. We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the internet at the SEC’s website at http://www.sec.gov.
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 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, industrial water discharge streams, fisheries, fish farms, and aquariums. ☐ Sewage Treatment .
Many of the mineral resource exploration and development companies with whom we compete have greater financial and technical resources. Accordingly, competitors may be able to spend greater amounts on acquisitions of mineral properties of merit, on exploration of their mineral properties and on development of their mineral properties.
Accordingly, competitors may be able to spend greater amounts on acquisitions of mineral properties of merit, on exploration of their mineral properties and on development of their mineral properties. In addition, they may be able to afford greater geological expertise in the targeting and exploration of mineral properties.
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.
BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for an annual payment and a royalty payment, which is based on the amount of zeolite shipped from the leased property (“BRZ Lease”). The BRZ Lease was recently extended and now ends on December 31, 2034.
All sales of antimony, zeolite, and precious metals products are to customers in the United States and Canada.
All sales of antimony, zeolite, and precious metals products are to customers in the United States, Mexico, and Canada. The Company is organized and managed in two reportable segments, antimony and zeolite. Our Montana facility processes ore containing antimony and precious metals, which are gold and silver.
We have made significant reclamation and remediation progress on all our properties over thirty years and have complied with regulatory requirements in our environmental remediation efforts. Competition We compete with other mineral resource exploration and development companies for financing and for the acquisition of new mineral properties and for equipment and labor related to exploration and development of mineral properties.
Competition We compete with other mineral resource exploration and development companies for financing and for the acquisition of new mineral properties and for equipment and labor related to exploration and development of mineral properties. Many of the mineral resource exploration and development companies with whom we compete have greater financial and technical resources.
Concentration of Sales During the years ended December 31, 2023 and 2022, the Company sold 10% or more of its product to the following customers: For the year ended December 31, 2023 2022 Customer A revenue $ 1,548,283 $ 1,882,667 Customer B revenue 1,451,950 1,863,958 Customer C revenue 1,037,307 n/a Total customer revenue $ 4,037,540 $ 3,746,625 Customer revenue as a % of total revenues 46 % 34 % Regulatory Matters We are subject to the requirements of the Federal Mining Safety and Health Act of 1977, the Occupational Safety and Health Administration’s regulations, the states of Montana and Idaho, federal and state health and safety statutes and Sanders County, Montana and Franklin County, Idaho health ordinances.
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. 8 Table of Contents Concentration of Sales During the years ended December 31, 2024 and 2023, customers accounting for 10% or more of the Company’s sales included the following: For the years ended December 31, 2024 December 31, 2023 Customer A revenue $ 4,389,735 $ 1,548,283 Customer B revenue 1,998,589 1,451,950 Customer C revenue - 1,037,307 Total $ 6,388,324 $ 4,037,540 Total customer revenue as a % of total Company revenues 43% 46% Regulatory Matters We are subject to the requirements of the Federal Mining Safety and Health Act of 1977, the Occupational Safety and Health Administration’s regulations, the states of Montana and Idaho, federal and state health and safety statutes and Sanders County, Montana and Franklin County, Idaho health ordinances, as well as various governmental agencies in Mexico.
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 have about $100,000 of financial assurances, primarily in the form of surety bonds, for reclamation company-wide. Our exploration, development and production programs conducted in the United States are subject to local, state and/or federal regulations regarding environmental protection. Some of our production and mining activities are conducted on public lands. The U.S.
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.
See further description of the Company’s segments in Note 13 of the Notes to Consolidated Financial Statements in this Annual Report.
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.
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.
Any changes to our reclamation and remediation plans, which may be required due to changes in state or federal regulations, could have an adverse effect on our operations. The range of reasonably possible loss in excess of the amounts accrued, by site, cannot be reasonably estimated at this time.
Any changes to our reclamation and remediation plans, which may be required due to changes in state or federal regulations, could have an adverse effect on our operations and cash flow. We accrue asset retirement obligations based on comprehensive remediation plans approved by the various regulatory agencies in connection with permitting or bonding requirements and based on regulatory requirements.
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.
See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further details on the Philipsburg Lease. 5 Table of Contents Recent Developments The Company’s USAMSA subsidiary primarily includes two processing facilities, its Madero facility in Parras de la Fuente Coahuila, Mexico and its Puerto Blanco facility in San Luis de la Paz Guanajuato, Mexico.
(“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.
The Company formed another subsidiary, Antimonio de Mexico, S.A. de C.V. (“ADM”), in Mexico in 2005 to explore and develop antimony and precious metal deposits in Mexico. Our Los Juarez mining claims and concessions in Mexico are included in ADM. Currently, the Company has no active operations in Los Juarez, Mexico. Zeolite is used in many products as filtration.
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.
Antimony metal is used in bearings, storage batteries, and ordnance. Antimony trisulfide is used as a primer in ammunition. The ore we purchase for our facility located in Montana contains antimony, gold, and silver.
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 estimate, but have not independently confirmed, that our present share of the domestic and international markets for antimony oxide products is around 4% and less than 1%, respectively. 6 Table of Contents Uses of Our Antimony Products Antimony oxide is a fine, white powder that is used in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper.
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.
Antimony Segment Our antimony segment consists of: · Our facility located in the Burns Mining District of Sanders County in Montana that processes ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals, and · Our two facilities in our USAMSA subsidiary located in Mexico that process ore primarily into antimony metal and a lower grade of antimony oxide.
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 ore purchased from this supplier in Canada contains antimony, gold, and silver. Therefore, the metallurgical techniques employed by our Montana facility for the recovery of antimony from this ore are altered to also recover the gold and silver.
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.
See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further details on the BRZ Lease. BRZ pays two other royalties on the sale of zeolite products. In addition, BRZ can surface mine and process zeolite on property owned by the U.S.
Removed
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.
Added
Item 1. Business. Overview United States Antimony Corporation’s (“US Antimony,” “USAC,” the “Company,” “we,” “us,” and “our,”) principal business is in the processing and sale of antimony and precious metals, primarily gold and silver, at its facilities located in Montana and Mexico, and the mining, processing, and sale of zeolite at its facility located in Idaho.
Removed
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.
Added
The Company acquired mining claims and leases located in Alaska and Ontario, Canada in 2024 that could expand its operations as well as its product offerings. Antimony and zeolite are minerals that are included in many products that are used every day. USAC can provide these minerals in a form that can be used in these products.
Removed
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.
Added
Antimony is used in many products as a fire-retardant and a primer and is on the Critical Minerals List of the U.S. Government.
Removed
(“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.
Added
Antimony mined from the ground, which is called antimony ore or ore, is typically not salable as a finished product primarily due to impurities in the ore, the ore size not being compatible with its intended use, and the percentage of antimony contained in the ore being too low.
Removed
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.
Added
We process ore to remove impurities, refine the size, and increase the percentage of antimony contained in the ore to approximately 70% to make the finished product called antimony trisulfide, to approximately 83% to make the finished product called antimony oxide, and to approximately 99.65% to make the finished product called antimony metal.
Removed
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.
Added
Our Montana facility processes this ore and sells the gold and silver to the company who sold us this ore, which represents all our precious metals sales, and sells the antimony to other companies in various industries. Our Mexico facilities have been processing ore primarily into antimony metal.
Removed
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.
Added
The Company was formed in Montana in 1970 not only to process antimony ore but also to mine antimony ore. However, antimony mining ceased in the U.S. in the 1980’s, including our antimony mining in Montana, due to a significant increase of less expensive antimony ore being imported into the United States.
Removed
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.
Added
Since then, the Company continued to process ore sourced from foreign suppliers at its facility in Montana. The Company also processes antimony ore at its two facilities located in Mexico, which are included in the Company’s subsidiary, US Antimony de Mexico, S.A. de C.V. (“USAMSA”), that it formed in Mexico in 1998.
Removed
Mexico Antimony Segment The Company has two subsidiaries in Mexico, USAMSA and ADM.
Added
The Company mines, processes, and sells zeolite at its facility located in Idaho, which is included in the Company’s subsidiary, Bear River Zeolite Company (“BRZ”), that it formed in Idaho in 2000.
Removed
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.
Added
Zeolite can be used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, soil amendment and fertilizer, and other miscellaneous applications. The Company is in the process of completing a technical report summary documenting the estimate of total mineral resources and reserves associated with the zeolite mine under lease.
Removed
Our Madero smelter processes antimony ore primarily into antimony metal and an intermediate stage of antimony.
Added
The Company has completed test hole drilling and retained a qualified third-party expert to issue the report. Given the environmental disturbance related to mining, we work with government agencies to comply with environmental regulations and health and safety standards and strive to grow responsibly for the health, safety, and protection of our employees and the environment.
Removed
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.
Added
In 2024, the Company acquired mining claims and leases in Alaska and Ontario, Canada, which necessitated forming three entities related to the Alaska mining claims, Great Land Minerals, LLC, Denali Minerals, LLC, and Alaska Antimony LLC, and one entity related to the Ontario mining claims and leases, UAMY Cobalt Corporation.
Removed
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.
Added
We expect these mining claims and leases will expand the Company’s operations and product offerings. In certain of these areas, the Company intends to start with a geophysics study and a geological, structural, and petrographic study to enable future development with ultimate plans for a comprehensive drilling program.
Removed
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.
Added
The Company also leased a metals concentration facility with two flotation circuits located in Philipsburg, Montana in 2024 (“Philipsburg Lease”). The Company has no active operations yet in Alaska or Ontario, Canada, nor has any material been processed yet through the metals concentration facility located in Philipsburg, Montana.
Removed
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.
Added
In March 2024, the Company shut down the operations of USAMSA and announced its intent to sell its USAMSA subsidiary. The accounting requirements for reporting USAMSA as a discontinued operation were met in the first quarter of 2024.
Removed
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.
Added
In December 2024, the Company announced plans to restart its Madero facility in Mexico and made the decision not to sell its USAMSA subsidiary because of substantially increased demand and market price for antimony.
Removed
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.
Added
Therefore, the Company reclassified its USAMSA subsidiary’s assets and liabilities in its Consolidated Balance Sheets and related Notes to Consolidated Financial Statements from its presentation in the interim quarterly financial statements for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2024 to held-and-used for all periods presented in this Annual Report.
Removed
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.
Added
Also, the Company reported its USAMSA subsidiary’s operations in continuing operations in its Consolidated Statements of Operations, Consolidated Statements of Cash Flows, and related Notes to Consolidated Financial Statements for all periods presented in this Annual Report.
Removed
In 2023, the principal source of antimony concentrates bearing precious metals came from our Canadian supplier, who also purchases precious metals from the Company.
Added
In 2025, the Company: i) executed an option agreement to acquire mining claims in the Fairbanks District of Alaska, ii) executed an agreement to extend ore supply for its Montana smelting facility, iii) extended its existing mineral property lease in Preston, Idaho, for an additional 10 years, iv) modified the terms and conditions of the existing property lease in Philipsburg, Montana, which substantially reduced and deferred future monthly payments specifically in calendar year 2025, v) purchased a personal residence in Thompson Falls, Montana for a key employee required to transfer and move to that location, vi) sold shares of its common stock, and vii) received proceeds from the exercise of warrants.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Fluctuations in the exchange rates between the U.S. Dollar and the Mexican Peso may therefore have a material adverse effect on the Company’s financial results. Mexico has experienced periods of significant inflation. If Mexico experiences substantial inflation in the future, the Company’s costs in peso terms will increase significantly, subject to movements in applicable exchange rates.
Fluctuations in the exchange rates between the U.S. Dollar and the Mexican Peso may therefore have a material adverse effect on the Company’s financial results. Mexico has experienced periods of significant inflation. If Mexico experiences substantial inflation in the future, the Company’s costs in peso will increase significantly, subject to movements in applicable exchange rates.
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.
Many of the factors affecting our operating results are beyond our control, including, but not limited to, the volatility of metals prices; ore supply; smelter terms; rock and soil conditions; seismic events; natural disasters; 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.
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.
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 and cash flow. Our liabilities for environmental reclamation and retirement and safety may exceed the amounts accrued on our financial statements.
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.
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.
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.
We cannot assure you that we will not experience net losses in the future. Continued losses may have an adverse effect on our cash and cash equivalents balance and liquidity, require us to curtail certain activities and investments, or may require us to raise additional capital or sell assets.
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.
To the extent that these and other factors increase our costs and/or reduce demand for our products and/or increase competition, which effects our relationship with our customers and vendors, our business, financial position, results of operations and cash flows could be materially adversely impacted. 11 Table of Contents We may seek or require additional financing, which may not be available on acceptable terms, if at all.
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.
These factors are 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 may experience significant losses and may have to discontinue exploration, development, and/or operations, and may incur asset write-downs at one or more of our properties.
Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods.
Our accounting and other estimates may be imprecise. Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods.
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.
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.
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.
Macroeconomic factors, including inflation, high interest rates, recession risks, unemployment rates, rising labor and utility costs, fiscal policy, tariffs, geopolitical events and risks, climate-related and other environmental, social, and governance related risks, and the effects of the health pandemics, have caused downturns in key markets and created other commercial disruptions, which have and could further adversely impact our businesses.
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.
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. 12 Table of Contents 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.
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.
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 asset retirement obligations; · permitting and other regulatory considerations; · asset impairments; · value of mineral claims; · asset valuations; · future foreign exchange rates, inflation rates and applicable tax rates; · reserves for contingencies and litigation; and · deferred tax asset and liability valuation allowances. 13 Table of Contents Future estimates and actual results may differ materially from these estimates as a result of using different assumptions or conditions.
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.
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.
Our profitability is sensitive to the costs of commodities such as fuel, steel, and cement. While the recent prices for such commodities have been stable or in decline, prices have been historically volatile, and material increases in commodity costs could have a significant effect on our results of operations.
Our profitability is sensitive to the costs of commodities, such as fuel, coal, and sodium carbonate, which have experienced price volatility historically. Material increases in these and other commodity costs could have a significant effect on our results of operations and financial condition.
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.
These factors include, among others: (i) inflation; (ii) high interest rates; (iii) recession risks; (iv) rising labor and utility costs; (v) disruptions to supply chains; (vi) fiscal policy risks, including tariffs, import duties, and other similar charges, (vii) geopolitical events and risks, (viii) interruptions of international and regional commerce; (ix) climate-related and other environmental, social, and governance related risks; and (x) the effects of health pandemics.
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.
We have experienced a loss from operations in all but one of the prior six fiscal years. We may continue to experience losses in the future.
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.
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. If we incur liabilities for environmental damages while we are uninsured, it could have a significant adverse effect on our financial condition and results of our operations.
Removed
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.
Added
Tariffs imposed on imports into the United States from Canada, Mexico, or other countries, and reciprocal tariffs, could significantly increase the cost of our products, which could significantly lower our sales if our customers are unable or unwilling to purchase our products at a higher price, which could have a material adverse impact on our results and financial condition.
Removed
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.
Added
Also, price erosion may occur as competitors become more aggressive in pricing practices.
Removed
Future estimates and actual results may differ materially from these estimates as a result of using different assumptions or conditions. For additional information, see Critical Accounting Estimates in
Added
We have broad discretion in the use of our cash and cash equivalents, including the net proceeds we receive from stock offerings, and may not use them effectively.
Added
Our management has broad discretion to use our cash and cash equivalents, including proceeds received from stock offerings, to fund our operations and could spend these funds in ways with which you may not agree or in ways which do not improve our results of operations or enhance the value of our common stock.
Added
The failure by our management to apply these funds effectively could result in financial losses that could have a material adverse effect on our business and cause the price of our common stock to decline.
Added
Pending their use to fund our operations, we may invest our cash and cash equivalents in a manner that does not produce income or that loses value. Metal market prices are volatile, including the antimony metal market price.
Added
A substantial and/or extended decline in metals prices, and specifically the antimony market price, would have a material adverse effect on us, especially during the time period that the antimony market price was declining.
Added
For additional information, see Critical Accounting Estimates in

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+0 added−1 removed7 unchanged
Our third-party information security officer has 30 years of experience in the IT management field and has consulted with large and mid-size corporations on proper IT processes and security. Our CEO during the year ended December 31, 2023 and our CFO have managed information technology departments during their careers.
Our third-party information security officer has 30 years of experience in the IT management field and has consulted with large and mid-size corporations on proper IT processes and security. Our CEO and CFO have managed information technology departments during their careers.
Our chief executive officer and chief financial officer, with input from and potentially attendance by our third-party information security officer, provide presentations to the Board of Directors on cybersecurity risks or threats as necessary.
Governance Our Board of Directors is responsible for risk oversight. Our chief executive officer and chief financial officer, with input from and potentially attendance by our third-party information security officer, provide presentations to the Board of Directors on cybersecurity risks or threats as necessary.
Our CFO was trained as an auditor and an information technology auditor at the public accounting firm of Ernst & Young LLP and audited public companies, information technology departments, and third-party information technology service providers for 12 years.
Our CFO was trained as an auditor and an information technology auditor at the public accounting firm of Ernst & Young LLP and audited the internal controls, including IT controls, of public companies, information technology departments, and third-party information technology service providers for 12 years. 26 Table of Contents
While prior incidents have not materially affected our business strategy, results of operations, or financial condition, there is no guarantee that a future cyber incident would not materially affect our business strategy, results of operations, or financial condition.
While prior incidents have not materially affected our business strategy, results of operations, or financial condition, there is no guarantee that a future cyber incident would not materially affect our business strategy, results of operations, or financial condition. See risks related to cybersecurity and business disruptions in “Risk Factors” in this Form 10-K.
Removed
See risks related to cybersecurity and business disruptions in “Risk Factors” in this Form 10-K. 25 Table of Contents Governance Our Board of Directors is responsible for risk oversight.

Item 2. Properties

Properties — owned and leased real estate

24 edited+1 added−22 removed7 unchanged
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.
Rock trucks are being used to haul 18 to 20 tons per load, and the cycle time is approximately 30 minutes. 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.
Electricity is provided by the local electric company and is fairly reliable. Personnel are sourced, mainly from Preston, but also from North Logan. Following are location maps related to this property: Location Map 34 Table of Contents
Electricity is provided by the local electric company and is fairly reliable. Personnel are sourced, mainly from Preston, but also from North Logan. Following are location maps related to this property: 31 Table of Contents
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.
We built the road system, but it was purchased and is currently operated and maintained by the USFS. The antimony smelter includes furnaces of a proprietary design to produce antimony metal, antimony oxide, antimony trisulfide, and various other antimony products.
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.
The furnaces are maintained to modern standards. Annual antimony production was approximately 1,296,000 pounds in 2024 and approximately 998,000 pounds in 2023. This plant is also equipped for the treatment and production of precious metals. Annual gold production was approximately 35 ounces in 2024 and approximately 36 ounces in 2023.
Annual zeolite production was approximately 10,100 tons in 2023 and approximately 13,000 tons in 2022. In addition, BRZ can surface mine and process zeolite on the 480 acres of property owned by the U.S. Bureau of Land Management and held by our 24, 20-acre Placer claims, that is adjacent to the Company’s Preston, Idaho property, after obtaining required permits.
In addition, BRZ can surface mine and process zeolite on the 480 acres of property owned by the U.S. Bureau of Land Management and held by our 24, 20-acre Placer claims, that is adjacent to the Company’s Preston, Idaho property, after obtaining required permits.
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.
An oxide circuit was added to the plant in 2013 and 2014 to mill oxide ores from Los Juarez and other properties. In 2019 a cyanide leach circuit for recovery of precious metals was built and permits were obtained for this circuit. This cyanide leach circuity is not yet in operation and has not been used.
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.
DESCRIPTION OF PROPERTIES Antimony and Precious Metals Facility in Sanders County, Montana We own 14 acres of land in the Burns Mining District in Sanders County, Montana, where we operate a facility that includes our antimony smelter and precious metals equipment. This facility was built in 1971, started operating in 1972, and is included in our antimony segment.
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.
BRZ has all necessary MSHA and operational permits and is regularly inspected by MSHA for compliance with State and Federal requirements. See Note 11 of the Notes to Consolidated Financial Statements in this Annual Report for the status of inspections by MSHA. Annual zeolite production was approximately 11,100 tons in 2024 and approximately 10,100 tons in 2023.
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.
The following table provides a summary of the properties we were affiliated with at December 31, 2024: Segment Location Owned or Leased Mine, Processing Facility, or Warehouse Active or Inactive Own Mining Claims Executed Surface Rights Agreement Antimony Sanders County, Montana Owned Processing Facility Active n/a n/a Antimony Madero in Coahuila, Mexico Owned Processing Facility Active n/a n/a Antimony Puerto Blanco in Guanajuato, Mexico Owned Processing Facility Active n/a n/a Zeolite Preston, Idaho Leased Mine and Processing Facility Active Yes Yes Zeolite Lethbridge, Canada Leased Warehouse Active n/a n/a There are no material encumbrances on any of our properties at December 31, 2024.
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.
The facility contains a flotation mill and oxide circuit that are used in increasing the concentration of antimony in ore and a cyanide leach circuit this is use in the processing of precious metals. The flotation mill can be used for the processing of ore from the Company’s mine in Los Juarez and other unrelated third-party properties.
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.
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. Personnel are sourced mainly from the nearby community of about 100 people.
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.
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. Paila is about halfway between Torreon and Saltillo, both in the state of Coahila on state highway 40, and is accessible by truck.
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.
Our facility 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”). Following are location maps related to this property: 27 Table of Contents Properties in Mexico The Company has two subsidiaries in Mexico, USAMSA and ADM.
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.
In 2019, we completed the installation of a caustic leach circuit to process antimony concentrates from our Puerto Blanco cyanide leach facility containing any precious metals from our Los Juarez property or other sources. Annual antimony finished goods production was 163,788 pounds of antimony metal in 2024 and 88,160 pounds of antimony metal in 2023.
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.
There are presently no active operations at Los Juarez. 28 Table of Contents Madero Antimony Smelter and Precious Metals Processing Facility in Coahuila, Mexico The Madero antimony smelter and precious metal processing facility at Estacion Madero, in the Municipio of Parras de la Fuente, Coahuila, Mexico, is included in our antimony segment. Construction started on the property in 2009.
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.
Our property is approximately 850 feet north-northeast of Prospect Creek in Cox Gulch, which resides in the northern Bitterroot Mountain range. This Highway 471 is asphalt, and the property is accessible by car or truck.
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.
Following are location maps related to this property: 29 Table of Contents 30 Table of Contents Zeolite Mine and Processing Facility in Preston, Idaho Bear River Zeolite Company (“BRZ”), which represents our Zeolite Segment, has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for an annual payment and a royalty payment, which is based on the amount of zeolite shipped from the leased property (“BRZ Lease”).
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.
Following is a location map related to this property: Puerto Blanco Flotation Mill and Precious Metals Processing Facility in Guanajuato, Mexico The Puerto Blanco facility in Guanajuato, Mexico is about 100 acres and is included in our antimony segment. Construction started on the property in 2010.
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.
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. The Madero antimony production is sold as antimony metal or antimony low-grade oxide.
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.
The USAMSA subsidiary includes the following two antimony and precious metals processing facilities in Mexico, both of which are owned: (1) the Madero facility in Coahuila, Mexico and (2) the Puerto Blanco flotation mill, oxide circuit, and cyanide leach circuit facility in Guanajuato, Mexico. We do not mine at these facilities but rather process ore into finished products.
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.
The Los Juarez mining claims and concessions are in Cadereyta de Montes Queretaro, Mexico and are included in our ADM subsidiary.
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.
Annual silver production was approximately 14,600 ounces in 2024 and approximately 21,400 ounces in 2023. We do not mine at this facility but rather process ore into finished products. This facility 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.
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.
There is a smaller airport, Sanders Airport, that is about 2 hours from our property and a major airport in Spokane, WA, that is about two and one-half hours from our property. Our facility 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.
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%.
Puerto Blanco had no processing in 2024 with its closure for most of 2024, as described in the “ Recent Developments ” section in this Annual Report, and processed approximately 20,000 pounds of antimony ore in 2023, which contained an average of 25% antimony.
Removed
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.
Added
The BRZ Lease ends December 31, 2034. See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further details on the BRZ Lease. BRZ pays two other royalties based on the sale of zeolite products.
Removed
Executed surface rights agreements exist with ADM other than one surface rights agreement that has lapsed, and a new agreement will be negotiated.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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”).
Removed
There are presently no active operations at Los Juarez.
Removed
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
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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
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
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
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
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
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.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−3 removed1 unchanged
Item 3. Legal Proceedings. United States Antimony Corporation is not a party to any pending material legal proceedings.
Item 3. Legal Proceedings. United States Antimony Corporation is not a party to any material legal proceedings.
Removed
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.
Removed
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.
Removed
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

1 edited+0 added−0 removed0 unchanged
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 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. 32 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

20 edited+30 added−29 removed8 unchanged
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.
Determination of any amounts included in 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.
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.
However, it is possible that changes could occur in the near term that could adversely affect the estimates of salvage values and future cash flows 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.
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.
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 if needed to recalculate its asset retirement obligations.
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.
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 if needed.
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.
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, U.S. GAAP.
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.
Issuer Purchases of Equity Securities There were no repurchases of the Company’s common stock during the quarter ended December 31, 2024. Item 6. [Reserved] Item 7.
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.
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. Sales of Unregistered Equity Securities Not applicable.
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.
Off-Balance Sheet Arrangements The Company has no significant off-balance sheet arrangements. 39 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.
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.
Material Cash Requirements We intend to continue to invest in our employees, customers, infrastructure, and operations with the goals of increasing production, decreasing costs, and growing revenue profitably. Also, we intend to fund our cash requirements in 2025 with our cash and cash equivalents. We may use cash to acquire businesses.
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.
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, 2024 is 23,500.
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.
However, our ability to access capital or raise funds 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. 38 Table of Contents The Company could also receive funds from the U.S.
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.
Our cash and cash equivalents balance at December 31, 2024 was $18,172,120. 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.
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.
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.
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.
Securities Authorized for Issuance Under Equity Compensation Plans Information regarding our equity compensation plans as of December 31, 2024 is described in Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” of this Annual Report.
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.
Following is selected consolidated financial information: Consolidated statement of operations information: For the years ended December 31, 2024 December 31, 2023 Revenues $ 14,937,962 $ 8,693,155 Costs of revenues 11,471,044 12,037,939 Gross profit (loss) 3,466,918 (3,344,784 ) Total operating expenses 5,857,730 3,724,217 Loss from operations (2,390,812 ) (7,069,001 ) Total other income 660,408 720,714 Income tax expense - - Net loss $ (1,730,404 ) $ (6,348,287 ) Consolidated balance sheet information: December 31, 2024 December 31, 2023 Working capital $ 16,672,180 $ 13,178,748 Total assets $ 34,642,602 $ 28,094,995 Accumulated deficit $ (41,149,023 ) $ (39,418,619 ) Total stockholders’ equity $ 28,600,673 $ 25,520,968 Revenues Revenues increased by $6.2 million, or 72%, in fiscal year 2024 compared to fiscal year 2023 primarily due to: · Antimony revenue: o 34% increase in pounds sold, and o 40% increase in average sales price per pound. · Zeolite revenue: o 9% increase in tons sold, and o 9% increase in average sales price per ton.
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.
EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP.
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.
We also review the performance of our reportable segments and the performance of our Company with a focus on generating positive cash flow. A cornerstone of our strategy is the well-being of our employees as they are our most valuable asset.
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.
This increase between the years was primarily due to the following: · Higher average sales price of our antimony products in 2024 versus 2023 as described above in the “Revenues” section, · Improved antimony plant efficiencies with more antimony volume in 2024 compared to 2023, including efficiencies in the areas of labor, utilities, and supplies, · Higher inventory write-downs to net realizable value related to our Mexico operations in 2023 compared to 2024, which was primarily due higher facility processing costs as a result of the low percentage of antimony contained in the ore that was purchased, and · Higher reserve in 2023 compared to 2024 on the receivable related to the refund of import value-added tax (“IVA tax” or “VAT”) in Mexico.
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.
Cash flow provided by financing activities improved by $5.2 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to proceeds received in 2024 from the sale of the Company’s stock, net of issuance costs, of $2.8 million, and $1.5 million from the exercise of warrants and the payment of a dividend in 2023 of $787,730 to the holders of 1,692,672 shares of Series D Preferred stock.
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.
The Company is focused on generating positive cash flow to fund its mission. One method of generating cash is through the sale of common stock, warrants, debt, and other investment vehicles, which the Company has been successful at executing in the past.
Removed
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.
Added
Overview United States Antimony Corporation began operations in Montana in January 1970 with an initial strategy centered around antimony mining and processing in Montana. Antimony mining ceased in the U.S. in the 1980’s, including our antimony mining in Montana, due to a significant increase of less expensive antimony ore being imported into the United States.
Removed
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.
Added
However, the Company continued to process ore sourced from foreign suppliers into antimony oxide, metal, and trisulfide and into precious metals, primarily gold and silver, at its facility in Montana. In the early 2000’s, the Company expanded its footprint with antimony and precious metals operations located in Mexico and zeolite operations located in Idaho.
Removed
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.
Added
Our zeolite operations are vertically integrated from mining to selling zeolite, which is the Company’s goal for its businesses. Consistent with this strategy of vertical integration, the Company acquired mining claims and leases located in Alaska and Ontario, Canada in 2024 that could expand its operations as well as its product offerings.
Removed
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
The Company intends to start with a geophysics study and a geological, structural, and petrographic study to enable future development with plans for a comprehensive drilling program in Alaska and Ontario. 33 Table of Contents We review our strategic initiatives to ensure an adequate return on our investment.
Removed
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
Recently, our Company added some key personnel in the areas of customer service, sales, operations, finance, and plant management, a few new board members, several new business partners, and new mining claims, all of which will help achieve our strategic goals and our mission of attentive service and profitable growth.
Removed
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
There was higher demand for antimony products in 2024 compared to 2023 primarily due to a shortage of supply and a shortage of processors, which increased the pounds of antimony we sold in 2024.
Removed
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
This higher demand also increased our average sales price per pound in 2024, which is tied to the market price per pound of antimony that averaged $5.50 in 2023 and $10.44 in 2024.
Removed
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
We sold more zeolite in 2024 compared to 2023 as we increased our production reliability and on-hand inventory balance and improved our on-time delivery of product to our customers during 2024.
Removed
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
Also, our average sales price per ton increased in 2024 compared to 2023 as our price increase became fully effective in early 2024. 34 Table of Contents Gross Profit (Loss) Gross profit was $3.5 million in fiscal year 2024 compared to a gross loss of ($3.3 million) in fiscal year 2023.
Removed
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
Operating Expenses Operating expense increased by $2.1 million in fiscal year 2024 compared to fiscal year 2023 primarily due to: · Increased compensation costs primarily related to the build-out of the Company’s management and operational team to cover our expanded business operations and growth initiatives, · Increased project costs in 2024 related to mining claim purchases in Alaska and Ontario, Canada, preparing a mineral resource and reserve report for BRZ, potential acquisitions, and efforts to obtain government funding and sales. · Increased non-cash stock compensation expense as the Company issued stock grants in 2024 from an equity incentive plan approved by its shareholders at the end of 2023, · Increased board fees in 2024 associated with market pay comparability and adjustments, and · Higher costs in Mexico in 2023 versus 2024 related to contractual expenses and asset retirement obligation expenses.
Removed
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
Working Capital Working capital increased by $3.5 million at December 31, 2024 compared to December 31, 2023 primarily due to increased cash and cash equivalents, partially offset by increased trade payables and accrued liabilities. The increase in cash and cash equivalents was primarily related to proceeds received from the sale of our common stock and the exercise of warrants.
Removed
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
Trade payables increased mainly due to the increased cost of antimony ore linked to the increased antimony market price. The increase in accrued liabilities was primarily related to compensation costs incurred but not paid at December 31, 2024 compared to December 31, 2023.
Removed
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 increase in net accounts receivable is primarily due to the increase in our average sales price per pound as it is linked to the increased antimony market price.
Removed
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
Comparison of Financial Information for the years ended December 31, 2024 and 2023 Antimony Financial and operational antimony metrics for the years ended December 31, 2024 and 2023 were as follows: For the years ended Antimony December 31, 2024 December 31, 2023 $ Change % Change Revenue (a) $ 11,102,573 $ 5,904,480 $ 5,198,093 88% Gross profit (loss) (a) $ 3,584,349 $ (3,072,839 ) $ 6,657,188 217% Pounds of antimony sold (a) 1,459,557 1,086,176 373,381 34% Average sales price per pound $ 7.61 $ 5.44 $ 2.17 40% Average cost per pound $ 5.15 $ 8.27 $ (3.12 ) (38)% Average gross profit (loss) per pound $ 2.46 $ (2.83 ) $ 5.29 187% (a) Revenue from sales of gold and silver totaled $525,087 and $326,496 and revenue from sales of antimony ore and concentrates totaled $368,627 and $nil for the years ended December 31, 2024 and 2023, respectively, which are excluded from Revenue and Gross Profit (Loss) in the chart above but included in the antimony segment.
Removed
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
Pounds of Antimony Sold in the chart above excludes the pounds sold related to gold, silver, and ore and concentrates for both years presented. 35 Table of Contents Antimony revenue increased $5.2 million, or 88%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to higher volume and price, which were both fueled by an increased demand for antimony.
Removed
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
Our average sales price of $7.61 per pound for fiscal year 2024 was lower than the antimony market price of $10.44 per pound for the same period primary due to two factors.
Removed
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
First, our sales price per pound related to the processing of customer-owned antimony ore into antimony metal excludes the ore cost and is therefore lower than the antimony market price per pound.
Removed
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
Second, our sales price per pound is set when a customer orders product, which can be one to two months prior to the product shipping causing our sales price per pound to be lower than the market price during times of rising market prices.
Removed
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
Gross profit increased $6.7 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to cost efficiencies with higher volume in the current year, a higher average sales price per pound in 2024, and higher inventory write-downs and IVA tax receivable reserves in 2023 related to our Mexico operations.
Removed
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
Zeolite Financial and operational metrics of our zeolite segment for the years ended December 31, 2024 and 2023 were as follows: For the years ended Zeolite December 31, 2024 December 31, 2023 $ Change % Change Revenue $ 2,941,675 $ 2,462,179 $ 479,496 19% Gross profit (loss) $ (642,635 ) $ (495,981 ) $ (146,654 ) (30)% Tons of zeolite sold 11,095 10,145 950 9% Average sales price per ton $ 265 $ 243 $ 22 9% Average cost per ton $ 323 $ 292 $ 31 11% Average gross profit (loss) per ton $ (58 ) $ (49 ) $ (9 ) (18)% Zeolite revenue increased $0.5 million, or 19%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to: · The increased tons of zeolite sold, which was primarily due to our ability to deliver customer orders more reliably and more timely, and · The increased average sales price per ton, which was mainly related to a price increase that became fully effective in early 2024.
Removed
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
Gross profit decreased by $0.1 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to increased costs related to repairing older machinery and equipment and backup equipment leases, especially during production downtime. Non-GAAP Financial Measure In addition to our results determined in accordance with U.S.
Removed
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
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.
Removed
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
Our EBITDA was a loss of ($635,788) for the year ended December 31, 2024, as compared to a loss of ($5,387,063) for the year ended December 31, 2023. 36 Table of Contents EBITDA by segment was prepared using the policies described in Note 13 of the Notes to Consolidated Financial Statements in this Annual Report.
Removed
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
EBIDTA by segment for the years ended December 31, 2024 and 2023 was as follows: Antimony For the years ended December 31, 2024 December 31, 2023 $ Change % Change Revenue $ 11,996,287 $ 6,230,976 $ 5,765,311 93% Cost of sales (7,518,224 ) (8,977,319 ) 1,459,095 16% Gross profit 4,478,063 (2,746,343 ) 7,224,406 263% Total operating expenses (3,500,936 ) (3,111,946 ) (388,990 ) -12% Income (loss) from operations 977,127 (5,858,289 ) 6,835,416 117% Total other income (expense) 673,471 736,378 (62,907 ) -9% Income tax expense - - - - Income (loss) 1,650,598 (5,121,911 ) 6,772,509 132% Interest expense - (6,504 ) 6,504 100% Income tax expense - - - - Depreciation and amortization 705,047 684,644 20,403 3% EBITDA $ 2,355,645 $ (4,443,771) $ 6,799,416 153% Zeolite For the years ended December 31, 2024 December 31, 2023 $ Change % Change Revenue $ 2,941,675 $ 2,462,179 $ 479,496 19% Cost of sales (3,584,310 ) (2,958,160 ) (626,150 ) -21% Gross profit (loss) (642,635 ) (495,981 ) (146,654 ) -30% Total operating expenses (1,973,542 ) (600,092 ) (1,373,450 ) -229% Income (loss) from operations (2,616,177 ) (1,096,073 ) (1,520,104 ) -139% Total other income (expense) (13,063 ) (15,664 ) 2,601 17% Income tax expense - - - - Income (loss) (2,629,240 ) (1,111,737 ) (1,517,503 ) -136% Interest expense 8,869 8,283 586 7% Income tax expense - - - - Depreciation and amortization 364,209 258,741 105,468 41% EBITDA $ (2,256,162 ) $ (844,713 ) $ (1,411,449 ) -167% 37 Table of Contents All Other For the years ended December 31, 2024 December 31, 2023 $ Change % Change Revenue $ - $ - $ - - Cost of sales (368,510 ) (102,460 ) (266,050 ) -260% Gross profit (368,510 ) (102,460 ) (266,050 ) -260% Total operating expenses (383,252 ) (12,179 ) (371,073 ) -3047% Income (loss) from operations (751,762 ) (114,639 ) (637,123 ) -556% Total other income (expense) - - - - Income (loss) (751,762 ) (114,639 ) (637,123 ) -556% Interest expense - - - - Depreciation and amortization 16,491 16,060 431 3% EBITDA $ (735,271 ) $ (98,579 ) $ (636,692 ) -646% Consolidated For the years ended December 31, 2024 December 31, 2023 $ Change % Change Revenue $ 14,937,962 $ 8,693,155 $ 6,244,807 72% Cost of sales (11,471,044 ) (12,037,939 ) 566,895 5% Gross profit 3,466,918 (3,344,784 ) 6,811,702 204% Total operating expenses (5,857,730 ) (3,724,217 ) (2,133,513 ) -57% Income (loss) from operations (2,390,812 ) (7,069,001 ) 4,678,189 66% Total other income (expense) 660,408 $ 720,714 (60,306 ) -8% Income tax expense - - - - Income (loss) (1,730,404 ) (6,348,287 ) 4,617,883 73% Interest expense 8,869 1,779 7,090 399% Income tax expense - - - - Depreciation and amortization 1,085,747 959,445 126,302 13% EBITDA $ (635,788 ) $ (5,387,063 ) $ 4,751,275 88% Liquidity and Capital Resources Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically and through strategic acquisitions and partnerships to increase shareholder value.
Removed
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
During 2024, the Company generated proceeds from the sale of its common stock, net of issuance costs, of $2.8 million, and $1.5 million through the exercise of warrants.
Removed
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
Government for initiatives related to facility expansion and mining exploration and development. However, there is no assurance that U.S. Government funding will be accessible to the Company. In addition, the Company continues to review each segment’s operational and financial results for opportunities to improve cash flow and to make informed decisions that benefit the Company overall.
Removed
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
The nature of these investments and transactions, however, makes it difficult to predict the amount and timing of such cash requirements.
Removed
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
Cash flow information for the years ended December 31, 2024 and 2023 was as follows: Cash Flow Information For the years ended December 31, 2024 December 31, 2023 Net cash provided (used) by operating activities $ 2,220,303 $ (4,750,026 ) Net cash provided (used) by investing activities (42,073 ) (1,341,713 ) Net cash provided (used) by financing activities 4,138,033 (1,071,292 ) Total net cash flow increase (decrease) $ 6,316,263 $ (7,163,031 ) Cash flow provided by operating activities improved by $7.0 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to better operational management resulting in a lower net loss, better inventory management, and increased trade payables.
Removed
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
Trade payables increased at December 31, 2024 as compared to December 31, 2023 mainly due to the increased cost of antimony ore linked to the antimony market price.
Added
Cash flow used by investing activities decreased by $1.3 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to less fixed asset purchases and the sale of our personal residence. See Note 6 and Note 13 of the Notes to Consolidated Financial Statements in this Annual Report for further information.

Item 7. Management's Discussion & Analysis

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

57 edited+14 added−18 removed112 unchanged
For example: · The inability or failure of our customers to meet their contractual obligations could have a material adverse effect on our business, financial position and results of operations. · If we are unable to deliver products to our customers in accordance within the timeframe outlined in the order, the revenue associated with that order as well as future orders from that customer may not occur, which could have an adverse affect on the results of our operations and financial condition. · A material change in payment terms with a significant customer could have a material adverse effect on our short-term cash flows. · The concentration of our customer base may enable our customers to demand certain pricing and other terms unfavorable to us and make us more vulnerable to changes in demand by or issues with a given customer.
For example: · The inability or failure of our customers to meet their contractual obligations could have a material adverse effect on our business, financial position and results of operations. · If we are unable to deliver products to our customers in accordance within the timeframe outlined in the order, the revenue associated with that order as well as future orders from that customer may not occur, which could have an adverse effect on the results of our operations and financial condition. · A material change in payment terms with a significant customer could have a material adverse effect on our short-term cash flows. · The concentration of our customer base may enable our customers to demand certain pricing and other terms unfavorable to us and make us more vulnerable to changes in demand by or issues with a given customer.
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.
If we were liquidated, holders of our preferred stock would be entitled to receive $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 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.
We are subject to all the risks associated with establishing new mining operations, including: 16 Table of Contents · 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.
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.
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. Enforcement or regulatory tools and methods available to regulatory bodies, such as MSHA or the U.S.
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.
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 facility or mine at Preston Idaho could be subject to a temporary or extended shutdown due to a violation alleged by MSHA.
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.
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. 17 Table of Contents Exploration of mineral properties is less intrusive and requires fewer surface and access rights than properties developed for mining.
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.
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. Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations.
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.
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. Our non-extractive properties may not be brought into the state of commercial production.
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 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.
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.
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 landforms and vegetation.
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.
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. 24 Table of Contents We cannot guarantee title to all of our properties.
For more information on the status of inspections by MSHA, see Note 10 of the Notes to Consolidated Financial Statements in this Annual Report for the status of MSHA inspections.
For more information on the status of inspections by MSHA, see Note 11 of the Notes to Consolidated Financial Statements in this Annual Report.
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.
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 always be in compliance with applicable laws, regulations and permitting requirements.
Any security breach could compromise our networks, and the information contained therein could be improperly accessed, disclosed, lost or stolen.
Any security breach could compromise our network, and the information contained therein could be improperly accessed, disclosed, lost or stolen.
We could lose market share with our customers to our competitors or to our customers themselves, should they decide to become more vertically integrated and produce the products that we currently provide. In addition, even if our customers continue to do business with us, we could be adversely affected by a number of other potential developments with our customers.
We could lose market share with our customers to our competitors or to our customers themselves, should they decide to become more vertically integrated and produce the products that we currently provide. 14 Table of Contents In addition, even if our customers continue to do business with us, we could be adversely effected by a number of other potential developments with our customers.
The local climate sometimes affects our mining activities on our properties. 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.
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.
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.
However, we cannot assure you that we will be successful in implementing effective internal control over financial reporting or that, once successful, such controls will remain effective. It may require significant resources and management oversight to effectively comply with our regulatory obligations and to avoid future violations.
These impediments include: · the classification of our Board into three classes serving staggered three-year terms, which makes it more difficult to quickly replace board members; · the ability of our Board to issue shares of preferred stock with rights as it deems appropriate without stockholder approval; · a provision that special meetings of our board of directors may be called only by our chief executive officer or a majority of our Board; · a provision that special meetings of stockholders may only be called pursuant to a resolution approved by a majority of our Board; · a prohibition against action by written consent of our stockholders; · a provision that our directors may only be removed for cause and by an affirmative vote of at least 80% of the outstanding voting stock; · a provision that our stockholders comply with advance-notice provisions to bring director nominations or other matters before meetings of our stockholders; · a prohibition against certain business combinations with an acquirer of 15% or more of our common stock for three years after such acquisition unless the stock acquisition or the business combination is approved by our Board prior to the acquisition of the 15% interest, or after such acquisition our Board and the holders of two-thirds of the other common stock approve the business combination; and · a prohibition against our entering into certain business combinations with interested stockholders without the affirmative vote of the holders of at least 80% of the voting power of the then outstanding shares of voting stock.
These impediments include: · the classification of our Board into three classes serving staggered three-year terms, which makes it more difficult to quickly replace board members; · the ability of our Board to issue shares of preferred stock with rights as it deems appropriate without stockholder approval; · a provision that special meetings of our board of directors may be called only by our chief executive officer or a majority of our Board; · a provision that special meetings of stockholders may only be called (i) pursuant to a resolution approved by a majority of our Board or (ii) by the Chairman of the Board or the Secretary of the Company upon the written request or requests of one or more persons that own shares representing at least 25% of the voting power of the stock entitled to vote on the matter or matters to be brought before the proposed special meeting; 20 Table of Contents · a prohibition against action by written consent of our stockholders; · a provision that our directors may only be removed for cause and by an affirmative vote of at least 80% of the outstanding voting stock; · a provision that our stockholders comply with advance-notice provisions to bring director nominations or other matters before meetings of our stockholders; · a prohibition against certain business combinations with an acquirer of 15% or more of our common stock for three years after such acquisition unless the stock acquisition or the business combination is approved by our Board prior to the acquisition of the 15% interest, or after such acquisition our Board and the holders of two-thirds of the other common stock approve the business combination; and · a prohibition against our entering into certain business combinations with interested stockholders without the affirmative vote of the holders of at least 80% of the voting power of the then outstanding shares of voting stock.
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.
The market price of our common stock may be affected by the issuance, exercise, or conversion of preferred stock, options, restricted stock, warrants, convertible debt or other rights to acquire any preferred or common stock. Our Board is authorized to issue additional classes or series of preferred stock without any action on the part of our stockholders.
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.
Controls and Procedures” of this Annual Report, we have concluded that our internal control over financial reporting was ineffective as of December 31, 2024 due to material weaknesses in our internal control over financial reporting. We intend to take the necessary steps to remediate these material weaknesses.
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.
The market price for our common stock has been volatile, sometimes 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.
Environmental Protection Agency (“EPA”), which have not been or have infrequently been used against us or the mining industry, in the future could be used against us or the industry in general. From time to time, the U.S. Congress considers proposed amendments to the 1872 Mining Law, which governs mining claims and related activities on federal lands.
Environmental Protection Agency (“EPA”), could be used against us or the industry in general and materially adversely affect our financial condition. From time to time, the U.S. Congress considers proposed amendments to the 1872 Mining Law, which governs mining claims and related activities on federal lands.
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.
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 not have a material adverse effect on the price of our securities, our ability to obtain financing, and our results of operations or financial condition. 25 Table of Contents Mexican inflation, restrictive exchange control policies and fluctuations in the peso exchange rate may adversely affect our financial condition and results of operations.
Drug-related violence has had a limited impact on our operations, as it has tended to concentrate outside of 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. The potential risks to our operations might increase if the violence spreads to our areas of production.
In addition to objective standards, the NYSE American may delist the securities of any issuer, among other reasons, if the issuer sells or disposes of principal operating assets, ceases to be an operating company or has discontinued a substantial portion of its operations or business for any reason or the NYSE American otherwise determines that the securities are unsuitable for continued trading.
In addition to objective standards, the NYSE American may delist the securities of an issuer if it determines that the securities are unsuitable for continued trading, which could be the result if the issuer sells or disposes of principal operating assets, ceases to be an operating company, or discontinues a substantial portion of its operations or business.
We compete with other mining companies, some of which have greater financial resources than we do or other advantages, in various areas which include: · attracting and retaining key executives, skilled labor, and other employees; · for the services of other skilled personnel and contractors and their specialized equipment, components and supplies, such as drill rigs, necessary for exploration and development; · for contractors that perform mining and other activities and milling facilities which we lease or toll mill through; and · for rights to mine properties.
We compete with other mining companies, some of which have greater financial resources than we do or other advantages, in various areas which include: · attracting and retaining key executives, skilled labor, and other employees; · for the services of other skilled personnel and contractors and their specialized equipment, components and supplies, such as drill rigs, necessary for exploration and development; · for contractors that perform mining and other activities and milling facilities which we lease or toll mill through; and · for rights to mine properties. 18 Table of Contents 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.
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.
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.
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.
Our common stock is currently listed on the NYSE American. 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.
Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations. Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities.
Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities.
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.
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.
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.
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.
Because of this variability, we believe that comparisons of our operating results in any quarterly period may not be a reliable indicator of future performance. 13 Table of Contents Additionally, if our relationships with our significant customers should change materially, it could be difficult for us to immediately and profitably replace lost sales in a market with such concentration, which could have a material adverse effect on our operating and financial results.
Additionally, if our relationships with our significant customers should change materially, it could be difficult for us to immediately and profitably replace lost sales in a market with such concentration, which could have a material adverse effect on our operating and financial results.
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.
Any unauthorized activities could disrupt our operations and be costly to fix, which could adversely affect our business and operating results. Competition from other mining companies may harm our business.
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.
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.
We cannot assure you the Mexican government will maintain its current policies with regard to the peso or that the peso’s value will not fluctuate significantly in the future.
While we do not expect the Mexican government to impose any restrictions or exchange control policies in the future, it is an area we closely monitor. We cannot assure you the Mexican government will maintain its current policies with regard to the peso or that the peso’s value will not fluctuate significantly in the future.
For example, extreme weather events throughout 2022 across the United States resulted in increases to power prices More recently, market disruptions in global energy markets related to the war in Ukraine caused significant increases in market-based power prices.
More recently, market disruptions in global energy markets related to the war in Ukraine caused significant increases in market-based power prices.
Reliable roads, bridges, power sources and water supply are important factors which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect our mining activities and financial condition. Our mining activities may be adversely affected by the local climate.
Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect our mining activities and financial condition. Our mining activities may be adversely affected by the local climate. The local climate sometimes affects our mining activities on our properties.
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.
We may be unable to comply despite such efforts. 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.
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.
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. Mining Claims may not be feasible or economical.
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.
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.
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.
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 under the federal Clean Water Act.
Our Board also has the authority to issue preferred stock without further stockholder approval.
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.
We may be unable to comply with NYSE American continued listing standards and our common stock may be delisted from the NYSE American market, which would likely cause the liquidity and market price of the common stock to decline. Our common stock is currently listed on the NYSE American.
It may also subject us to the risk of litigation or regulatory enforcement actions against us. 21 Table of Contents We may be unable to comply with NYSE American continued listing standards and our common stock may be delisted from the NYSE American market, which would likely cause the liquidity and market price of the common stock to decline.
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.
We are substantially dependent on a few significant customers, and we face significant risks associated with changes in our relationship with these significant customers. Some of the markets we serve have a limited number of customers. As a result, most of our revenues are concentrated with a limited number of customers.
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.
If we were liquidated, holders of our preferred stock would be entitled to receive $97,847 from any liquidation proceeds before holders of our common stock would be entitled to receive any proceeds. The issuance of additional equity securities in the future could adversely affect holders of our common stock.
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.
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. Mining concessions in Mexico may be terminated if the obligations of the concessioner are not satisfied.
These market-based contracts expose us to price volatility and fluctuations due to factors beyond our control and without any direct relationship to the price of our products.
These market-based contracts expose us to price volatility and fluctuations due to factors beyond our control and without any direct relationship to the price of our products. For example, extreme weather events over the past several years across the United States resulted in increases to power prices.
Other closures or impacts on operations or production may occur at any of our mines at any time, whether related to accidents, changes in conditions, changes to regulatory policy, or as precautionary measures.
Other closures or impacts on operations or production may occur at any of our mines at any time, whether related to accidents, changes in conditions, changes to regulatory policy, or as precautionary measures. 15 Table of Contents In addition, our operations are typically in remote locations, where conditions can be inhospitable, including with respect to weather, surface conditions, interactions with wildlife or otherwise in or near dangerous conditions.
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.
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. Accordingly, when inflation in Mexico increases without a corresponding depreciation of the peso, the net income generated by our Mexican operations is adversely affected.
To comply with these requirements, we may need to hire more employees in the future or engage outside consultants, which would increase our costs and expenses. We may be unable to comply despite such efforts.
As a result of our efforts to comply with the above rules and regulations, management’s attention may be diverted from other business concerns, which could adversely affect our business, operating results, and financial condition. To comply with these requirements, we may need to hire more employees in the future or engage outside consultants, which would increase our costs and expenses.
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.
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.
In addition, significant resources and management oversight may also be required to maintain and, if necessary, improve our disclosure controls and procedures and internal control over financial reporting. As a result of our efforts to comply with the above rules and regulations, management’s attention may be diverted from other business concerns, which could adversely affect our business and operating results.
In addition, significant resources and management oversight may also be required to maintain and, if necessary, improve our disclosure controls and procedures and internal control over financial reporting.
In each of the types of cases described in this paragraph, the government (federal or state) or private parties could seek to hold the Company liable for the actions of their subsidiaries or predecessors.
In each of the types of cases described in this paragraph, the government (federal or state) or private parties could seek to hold the Company liable for the actions of their subsidiaries or predecessors. 23 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.
We may not be able to satisfy these standards and remain listed on the NYSE American.
We may not be able to satisfy these standards and remain listed on the NYSE American, which could adversely affect the market price of our common stock and our ability to raise funds through the sale of our common stock, which could adversely affect our liquidity.
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.
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. Item 1B. Unresolved Staff Comments. As a smaller reporting company, we are not required to provide disclosure under this item.
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.
In the past we have had employees, contractors, or employees of contractors get injured, sometimes fatally, while working in such challenging locations. 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.
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.
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. Currently, the Mexican government does not restrict the ability of Mexican companies or individuals to convert pesos into dollars or other currencies.
Removed
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.
Added
The Company is in the process of completing a technical report summary documenting the estimate of total mineral resources and reserves associated with the zeolite mine under lease.
Removed
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.
Added
We are substantially dependent on one supplier in Canada that supplies the majority of the ore we process and sell to our antimony customers. A decrease in the supply or an increase in the cost of this supplier’s ore could have a material adverse effect on our business, results of operations, and financial condition.
Removed
In addition, our operations are typically in remote locations, where conditions can be inhospitable, including with respect to weather, surface conditions, interactions with wildlife or otherwise in or near dangerous conditions. In the past we have had employees, contractors, or employees of contractors get injured, sometimes fatally, while working in such challenging locations.
Added
Historically, we have received most of our ore supply for antimony from one supplier in Canada. Because of this concentration of supply with one supplier, a decrease in ore from this supplier or an increase in the cost of this supplier’s ore could have a material adverse effect on our business, results of operations, and cash flow.
Removed
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.
Added
We are substantially dependent on a lease agreement related to the property that we mine, process, and sell zeolite. Changes to this lease agreement could have a material adverse effect on our business, results of operations, and financial condition.
Removed
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.
Added
We have renewed this lease agreement related to our BRZ business periodically with minor changes to the terms and conditions in the past. However, changes to this lease agreement or the inability to renew this lease agreement could have a material adverse effect on our business, results of operations, and cash flow.
Removed
In the past, NYSE American has notified us of certain alleged violations by our company of the NYSE American continued listing requirements.
Added
In 2024, our two largest customers accounted for 43% of our consolidated revenues. Additionally, not all our customers make purchases every year. Because of this variability, we believe that comparisons of our operating results in any quarterly period may not be a reliable indicator of future performance.
Removed
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.
Added
We may not be able to maintain the infrastructure necessary to conduct mining activities. Our mining activities depend upon adequate infrastructure. Reliable roads, bridges, power sources and water supply are important factors which affect capital and operating costs.
Removed
We believe that we have regained compliance with the Audit Committee independence requirements by replacing Mr. Bardswich with Dr. Aguirre on the Audit Committee . However, we cannot assure you that our past deficiencies will not affect the continued listing of our common stock on the NYSE American.
Added
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. 19 Table of Contents If we were liquidated, our common stockholders could lose part, or all, of their investment .
Removed
A delisting of our common stock could also adversely affect our reputation, ability to raise funds through the sale of equity or securities convertible into equity and the terms of any such fundraising, the liquidity and market price our common stock and the ability of broker-dealers to purchase the common stock.
Added
Changes to the 1872 Mining Law, if adopted, could adversely affect our ability to economically develop mineral reserves on federal lands, which could materially adversely affect our financial condition. 22 Table of Contents Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations.
Removed
Congress debated imposing royalties on minerals extracted from federal lands. Although legislation was not passed as of the date of this report, it is possible that in the future royalties or taxes will be imposed on mining operations conducted on federal land, which could adversely impact our financial results.
Added
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.
Removed
Additional regulations or requirements also are imposed on our tailings and waste disposal areas under the federal Clean Water Act. 22 Table of Contents Legislative and regulatory measures to address climate change and greenhouse gas emissions are in various phases of consideration.
Added
The Company owns mining claims, however, the mineral resources and reserves contained in these mining claims may not be feasible or economical for mining, development, and production.
Removed
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.

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