10-Q 1 uamy_10q.htm FORM 10-Q uamy_10q.htm

 

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

(Mark One)

 

Quarterly Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act of 1934

 

 For the quarterly period ended March 31, 2022

 

  Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act of 1934

 

For the transition period ________ to ________

 

COMMISSION FILE NUMBER 001-08675

 

 UNITED STATES ANTIMONY CORPORATION

(Exact name of small business issuer as specified in its charter) 

  

Montana

 

81-0305822

(State or other jurisdiction of incorporation or organization)

 

 (IRS Employer Identification No.)

 

 

 

P.O. Box 643

Thompson Falls, MT

 

 59873

(Address of principal executive office)

 

(Postal Code)

   

(406) 827-3523

(Issuer's telephone number) 

   

Title of Each Class

 

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, $0.01 par value

 

UAMY

NYSE American

 

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No ☐

 

Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post filed). Yes ☒ No ☐

 

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “Accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

 

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

 

 

      

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

 

As of May 16, 2022, there were 106,240,361 shares of registrant’s common stock, $0.01 par value, issued and outstanding.

 

 

 

 

Contents

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

ITEM 1.

FINANCIAL STATEMENTS

 

3

 

 

 

 

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

 

15

 

 

 

 

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

21

 

 

 

 

ITEM 4.

CONTROLS AND PROCEDURES

 

22

 

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

ITEM 1.

LEGAL PROCEEDINGS.

 

23

 

 

 

 

ITEM 1A.

RISK FACTORS.

 

23

 

 

 

 

ITEM 2.

RECENT SALES OF UNREGISTERED SECURITIES.

 

23

 

 

 

 

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

 

23

 

 

 

 

ITEM 4.

MINE SAFETY DISCOSURES.

 

23

 

 

 

 

ITEM 5.

OTHER INFORMATION.

 

23

 

 

 

 

ITEM 6.

EXHIBITS.

 

24

      

 
Page 2 of 25

Table of Contents

  

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

      

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

      

 

 

March 31, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$21,334,353

 

 

$21,363,048

 

Certificates of deposit

 

 

259,210

 

 

 

259,210

 

Accounts receivable

 

 

1,475,853

 

 

 

891,314

 

Inventories (NOTE 5)

 

 

1,026,980

 

 

 

1,055,420

 

Total current assets

 

 

24,096,396

 

 

 

23,568,992

 

Properties, plants and equipment, net

 

 

11,102,124

 

 

 

11,133,733

 

Restricted cash for reclamation bonds

 

 

57,281

 

 

 

57,281

 

IVA receivable and other assets

 

 

283,744

 

 

 

242,721

 

Total assets

 

$35,539,545

 

 

$35,002,727

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$1,107,574

 

 

$1,385,752

 

Accrued liabilities

 

 

624,817

 

 

 

621,873

 

Long-term debt, current portion

 

 

12,287

 

 

 

13,230

 

Total current liabilities

 

 

1,744,678

 

 

 

2,020,855

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

198,806

 

 

 

201,920

 

Stock payable to directors for services

 

 

140,625

 

 

 

112,500

 

Asset retirement obligations and accrued reclamation costs (NOTE 7)

 

 

300,381

 

 

 

298,649

 

Total liabilities

 

 

2,384,490

 

 

 

2,633,924

 

COMMITMENTS AND CONTINGENCIES (NOTE 9)

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 10,000,000 shares authorized:

 

 

 

 

 

 

 

 

Series A: 0 shares issued and outstanding

 

 

-

 

 

 

-

 

Series B: 750,000 shares issued and outstanding (liquidation preference $954,375 and $952,500, respectively)

 

 

7,500

 

 

 

7,500

 

Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both periods)

 

 

1,779

 

 

 

1,779

 

Series D: 1,692,672 shares issued and outstanding (liquidation preference $4,979,632)

 

 

16,926

 

 

 

16,926

 

Common stock, $.001 par value; 300,000,000 shares authorized; 106,240,361 shares issued and outstanding

 

 

1,062,402

 

 

 

1,062,402

 

Additional paid-in capital

 

 

63,991,459

 

 

 

63,991,459

 

Accumulated deficit

 

 

(31,925,011)

 

 

(32,711,263)

Total stockholders’ equity

 

 

33,155,055

 

 

 

32,368,803

 

Total liabilities and stockholders’ equity

 

$35,539,545

 

 

$35,002,727

 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

  

 
Page 3 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

      

 

 

For the three months ended

 

 

 

March 31, 2022

 

 

March 31, 2021

 

REVENUE

 

$3,580,306

 

 

$1,253,287

 

COST OF REVENUE

 

 

2,440,918

 

 

 

1,041,130

 

GROSS PROFIT

 

 

1,139,388

 

 

 

212,157

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

General and administrative

 

 

160,681

 

 

 

170,050

 

Salaries and benefits

 

 

73,135

 

 

 

76,659

 

Other operating expenses

 

 

3,915

 

 

 

184,037

 

Professional fees

 

 

122,077

 

 

 

123,137

 

TOTAL OPERATING EXPENSES

 

 

359,808

 

 

 

553,883

 

INCOME (LOSS) FROM OPERATIONS

 

 

779,580

 

 

 

(341,726)

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,982)

 

 

(2,255)

Interest income

 

 

9,654

 

 

 

8,493

 

TOTAL OTHER INCOME (EXPENSE)

 

 

6,672

 

 

 

6,238

 

NET INCOME (LOSS)

 

 

786,252

 

 

 

(335,488)

Preferred dividends

 

 

(11,819)

 

 

(12,162)

Net income (loss) available to common stockholders

 

$774,432

 

 

$(347,650)

Net income (loss) per share of common stock:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.01

 

 

 Nil

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

106,240,361

 

 

 

92,711,336

 

Diluted

 

 

106,389,761

 

 

 

92,711,336

 

          

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

  

 
Page 4 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For the three months ended March 31, 2022 and 2021

     

 

 

Total Preferred Stock

 

 

Common Stock

 

 

Additional

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Paid in Capital

 

 

Deficit

 

 

Equity

 

BALANCE, December 31, 2020

 

 

2,678,909

 

 

$26,788

 

 

 

75,949,757

 

 

$759,496

 

 

$39,050,899

 

 

$(32,650,794)

 

$7,186,389

 

Common shares issued for cash

 

 

-

 

 

 

-

 

 

 

26,290,000

 

 

 

262,900

 

 

 

24,734,100

 

 

 

-

 

 

 

24,997,000

 

Common stock issuance costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,654,820)

 

 

-

 

 

 

(1,654,820)

Common stock issued for exercise of warrants

 

 

-

 

 

 

-

 

 

 

3,723,810

 

 

 

37,238

 

 

 

1,726,381

 

 

 

-

 

 

 

1,763,619

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(335,488)

 

 

(335,488)

BALANCE, March 31, 2021

 

 

2,678,909

 

 

$26,788

 

 

 

105,963,567

 

 

$1,059,634

 

 

$63,856,560

 

 

$(32,986,282)

 

$31,956,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, December 31, 2021

 

 

2,620,576

 

 

$26,205

 

 

 

106,240,361

 

 

$1,062,402

 

 

$63,991,459

 

 

$(32,711,263)

 

$32,368,803

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

786,252

 

 

 

786,252

 

BALANCE, March 31, 2022

 

 

2,620,576

 

 

$26,205

 

 

 

106,240,361

 

 

$1,062,402

 

 

$63,991,459

 

 

$(31,925,011)

 

$33,155,055

 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

  

 
Page 5 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

    

 

 

For the three months ended

 

 

 

March 31, 2022

 

 

March 31, 2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

$786,252

 

 

$(335,488)

Adjustments to reconcile net loss to net cash used by operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

220,150

 

 

 

222,464

 

Accretion of asset retirement obligation

 

 

1,732

 

 

 

1,732

 

Common stock payable for directors fees

 

 

28,125

 

 

 

28,125

 

Write-down of inventory to net realizable value

 

 

-

 

 

 

57,530

 

Other non-cash items

 

 

-

 

 

 

(661)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(584,539)

 

 

(298,933)

Inventories

 

 

28,440

 

 

 

(125,067)

IVA receivable and other assets

 

 

(41,023)

 

 

(50,546)

Accounts payable

 

 

(278,178)

 

 

(582,360)

Accrued liabilities

 

 

2,944

 

 

 

(80,998)

Export tax assessment payable

 

 

-

 

 

 

(1,120,730)

Payable to related parties

 

 

-

 

 

 

(164,922)

Net cash provided (used) by operating activities

 

 

163,903

 

 

 

(2,449,854)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of properties, plants and equipment

 

 

(188,541)

 

 

(23,298)

Net cash used by investing activities

 

 

(188,541)

 

 

(23,298)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Change in checks issued and payable

 

 

-

 

 

 

(86,685)

Payments on advances from related party

 

 

-

 

 

 

(56,216)

Proceeds from issuance of common stock, net of issuance costs

 

 

-

 

 

 

23,342,180

 

Proceeds from exercise of warrants

 

 

-

 

 

 

1,763,619

 

Principal paid on notes payable to bank

 

 

-

 

 

 

(100,000)

Principal payments of long-term debt

 

 

(4,057)

 

 

(12,518)

Net cash provided (used) by financing activities

 

 

(4,057)

 

 

24,850,380

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(28,695)

 

 

22,377,228

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

 

21,420,329

 

 

 

722,377

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$21,391,634

 

 

$23,099,605

 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

  

 
Page 6 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

     

NOTE 1 - NATURE OF OPERATIONS

 

AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products.

 

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

 

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico.

 

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company.

 

In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc. (previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A. de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.

 

In its operations in Montana, the Company produces antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. The Company also sells antimony metal for use in bearings, storage batteries and ordnance.

 

In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer. Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications.

 

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

 

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2022, and its results of operations for the three months ended March 31, 2022, and 2021, and cash flows for the three months ended March 31, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

 

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 31, 2022.

 

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements.

 

 
Page 7 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

   

Reclassifications

 

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported.

 

COVID -19

 

The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies.

 

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced availability of contractors and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including its ability to conduct operations.

 

The Company has taken steps to mitigate the potential risks to suppliers and employees posed by the spread of COVID-19, including work from home policies where appropriate. The Company will continue to monitor developments affecting both its workforce and contractors, and will take additional precautions as necessary. The ultimate impact of COVID-19 depends on factors beyond management’s knowledge or control, including its duration and third-party actions to contain its spread and mitigate its public health effects. Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

 

New Accounting Pronouncements

 

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

 

NOTE 3– EARNINGS PER SHARE

 

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

 

For the three months ended March 31, 2022, the calculation of diluted income per common share included 149,400 warrants to purchase one share of common stock. At March 31, 2022 and 2021, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

 

 

 

March 31, 2022

 

 

March 31, 2021

 

Warrants

 

 

9,400,207

 

 

 

2,471,089

 

Convertible preferred stock

 

 

1,692,672

 

 

 

1,751,005

 

TOTAL POSSIBLE DILUTIVE SHARES

 

 

11,092,879

 

 

 

4,222,094

 

 

NOTE 4 – REVENUE RECOGNITION

 

Products consist of the following:

 

 

·

Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide and antimony metal

 

·

Zeolite: includes coarse and fine zeolite crushed in various sizes

 

·

Precious metals: includes unrefined and refined gold and silver

 

 
Page 8 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

  

Sales of products for the three-months ended March 31, 2022 and 2021 were as follows:

 

 

 

For the three months ended

 

 

 

March 31, 2022

 

 

March 31, 2021

 

Antimony

 

$2,828,930

 

 

$657,107

 

Zeolite

 

 

674,042

 

 

 

519,947

 

Precious metals

 

 

77,334

 

 

 

76,233

 

TOTAL REVENUE BY PRODUCT

 

$3,580,306

 

 

$1,253,287

 

 

The Company’s trade accounts receivable balance related to contracts with customers was $1,475,853 at March 31, 2022 and $891,314 at December 31, 2021. The Company’s products do not involve any warranty agreements and product returns are not typical.

 

NOTE 5– INVENTORIES

 

Inventories at March 31, 2022 and December 31, 2021 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight. Inventories at March 31, 2022 and December 31, 2021 are as follows:

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Antimony Metal

 

$397,815

 

 

$234,461

 

Antimony Oxide

 

 

361,797

 

 

 

439,086

 

Antimony Ore Concentrates

 

 

15,222

 

 

 

119,046

 

Total antimony

 

 

774,834

 

 

 

792,593

 

Zeolite

 

 

252,146

 

 

 

262,827

 

TOTAL INVENTORIES

 

$1,026,980

 

 

$1,055,420

 

 

Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico. The Company’s zeolite inventory consists of saleable zeolite material.

 

 
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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

  

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

 

The major components of the Company’s properties, plants and equipment by segment at March 31, 2022 and December 31, 2021 are shown below:

 

 

 

Antimony Segment

 

 

Zeolite Segment

 

 

Precious Metals

 

 

 

March 31, 2022

 

USAC

 

 

USAMSA

 

 

BRZ

 

 

Segment

 

 

TOTAL

 

Plant and equipment

 

$1,713,328

 

 

$8,774,212

 

 

$3,881,612

 

 

$1,338,774

 

 

$15,707,926

 

Buildings

 

 

243,248

 

 

 

613,449

 

 

 

1,093,554

 

 

 

-

 

 

 

1,950,251

 

Mineral rights and interests

 

 

-

 

 

 

848,012

 

 

 

-

 

 

 

-

 

 

 

848,012

 

Land and other

 

 

2,431,387

 

 

 

2,478,044

 

 

 

16,753

 

 

 

-

 

 

 

4,926,184

 

 

 

 

4,387,963

 

 

 

12,713,717

 

 

 

4,991,919

 

 

 

1,338,774

 

 

 

23,432,373

 

Accumulated depreciation

 

 

(2,742,278)

 

 

(5,761,012)

 

 

(3,359,362)

 

 

(467,597)

 

 

(12,330,249)

 

 

$1,645,685

 

 

$6,952,705

 

 

$1,632,557

 

 

$871,177

 

 

$11,102,124

 

 

 

 

Antimony Segment

 

 

Zeolite Segment

 

 

Precious Metals

 

 

 

December 31, 2021

 

USAC

 

 

USAMSA

 

 

BRZ

 

 

Segment

 

 

TOTAL

 

Plant and equipment

 

$1,684,977

 

 

$8,757,775

 

 

$3,853,056

 

 

$1,330,394

 

 

$15,626,202

 

Buildings

 

 

243,248

 

 

 

613,449

 

 

 

986,736

 

 

 

-

 

 

 

1,843,433

 

Mineral rights and interests

 

 

-

 

 

 

848,012

 

 

 

-

 

 

 

-

 

 

 

848,012

 

Land and other

 

 

2,431,387

 

 

 

2,478,044

 

 

 

16,753

 

 

 

-

 

 

 

4,926,184

 

 

 

 

4,359,612

 

 

 

12,697,280

 

 

 

4,856,545

 

 

 

1,330,394

 

 

 

23,243,831

 

Accumulated depreciation

 

 

(2,732,809)

 

 

(5,622,555)

 

 

(3,314,658)

 

 

(440,076)

 

 

(12,110,098)

 

 

$1,626,803

 

 

$7,074,725

 

 

$1,541,887

 

 

$890,318

 

 

$11,133,733

 

 

At March 31, 2022 and December 31, 2021, the Company had $956,965 and $665,175, respectively, of assets that were not yet placed in service and have not yet been depreciated.

 

NOTE 7 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

 

Changes in the asset retirement obligation for the three months ended March 31, 2022 and 2021 are as follows:

 

 

 

Three months ended March 31,

 

 

 

2022

 

 

2021

 

Asset retirement obligation, beginning of period

 

$191,149

 

 

$184,219

 

Accretion expense

 

 

1,732

 

 

 

1,732

 

Asset retirement obligation, end of period

 

$192,881

 

 

$185,951

 

 

The Company’s total asset retirement obligation and accrued reclamation costs of $300,318 and $298,649, at March 31, 2022 and December 31, 2021, respectively, include reclamation obligations for the Idaho and Montana operations of $107,500.

 

 
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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

  

NOTE 8 – DEBT

 

Long term debt at March 31, 2022 and December 31, 2021 is as follows:

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Promissory note payable to First Security Bank of Missoula,

bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit

 

$211,093

 

 

$215,150

 

Less current portion

 

 

(12,287)

 

 

(13,230)

Long term portion

 

$198,806

 

 

$201,920

 

 

At March 31, 2022, principal payments on debt are due as follows:

 

Twelve months ending March 31,

 

Principal payment

 

2023

 

$12,287

 

2024

 

 

12,555

 

2025

 

 

12,852

 

2026

 

 

13,144

 

2027

 

 

160,255

 

 

 

$211,093

 

 

NOTE 9 – COMMITMENTS AND CONTINGENCIES

 

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 March 31, 2022 and December 31, 2021, the Company had accrued liabilities of $1,270 and $Nil, respectively, relating to such assessments, which is included in accrued liabilities on the condensed consolidated balance sheets.

 

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three months ended March 31, 2022 and 2021, the Company incurred royalty expense of $62,030 and $62,130, respectively. Royalty expense is included in cost of goods sold on the Statement of Operations. At March 31, 2022 and December 31, 2021, the Company had accrued royalties payable of $381,054 and $346,242, respectively, which is included in accrued liabilities on the condensed consolidated balance sheets. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

 

NOTE 10 – STOCKHOLDERS’ EQUITY

 

During the three months ended March 31, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

 

During the three months ended March 31, 2021, the Company issued 3,723,810 shares of common stock and received $1,763,619 in cash from the exercise of warrants.

 

During the three months ended March 31, 2022 and March 31, 2021, the Company expensed $28,125 and $28,125, respectively, in directors’ fees payable that will be paid in common stock.

 

The Company issued no shares of common stock during the three months ended March 31, 2022.

 

 
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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

  

Common stock warrants

 

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent.

 

The Company issued no warrants to purchase common stock during the three months ended March 31, 2022.

 

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

 

 

 

Number of warrants

 

 

Exercise prices

 

Balance outstanding at December 31, 2020

 

 

6,194,899

 

 

$0.65

 

Issued

 

 

10,060,500

 

 

$0.46 - $0.85

 

Exercised

 

 

(3,765,477)

 

$0.46 - $0.65

 

Balance outstanding at December 31, 2021 and March 31, 2022

 

 

12,489,922

 

 

$0.75

 

 

The composition of the Company’s warrants outstanding at March 31, 2022 is as follows:

 

Number of warrants

 

 

Exercise Price

 

 

Expiration Date

 

Remaining life (years)

 

 

143,707

 

 

$0.65

 

 

8/12/2022

 

 

0.37

 

 

2,285,715

 

 

 

0.46

 

 

7/31/2025

 

 

3.34

 

 

804,000

 

 

 

0.46

 

 

1/27/2026

 

 

3.83

 

 

7,650,000

 

 

 

0.85

 

 

3/8/2026

 

 

4.35

 

 

1,606,500

 

 

 

0.85

 

 

2/1/2026

 

 

3.84

 

 

12,489,922

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 11 – BUSINESS SEGEMENTS

 

The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.

 

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix will be produced. The zeolite operation produces zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States, although the Company does have a sales operation in Canada.

 

 
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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

   

Total Assets:

 

March 31, 2022

 

 

December 31, 2021

 

Antimony

 

 

 

 

 

 

United States

 

$24,749,039

 

 

$24,130,348

 

Mexico

 

 

7,575,114

 

 

 

7,771,515

 

Subtotal antimony

 

 

32,324,153

 

 

 

31,901,863

 

Precious metals

 

 

 

 

 

 

 

 

United States

 

 

189,567

 

 

 

107,464

 

Mexico

 

 

681,610

 

 

 

782,854

 

Subtotal precious metals

 

 

871,177

 

 

 

890,318

 

Zeolite

 

 

2,344,215

 

 

 

2,210,546

 

TOTAL

 

$35,539,545

 

 

$35,002,727

 

 

 

 

For the three months ended

 

Capital expenditures:

 

March 31, 2022

 

 

March 31, 2021

 

Antimony

 

 

 

 

 

 

United States

 

$28,350

 

 

$-

 

Mexico

 

 

16,437

 

 

 

4,872

 

Subtotal antimony

 

 

44,787

 

 

 

4,872

 

Precious metals

 

 

8,380

 

 

 

18,426

 

Zeolite

 

 

135,374

 

 

 

-

 

TOTAL

 

$188,541

 

 

$23,298

 

 

 
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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

   

Segment operations for the three months ended March 31, 2022

 

Antimony - USA

 

 

Antimony -Mexico

 

 

Total antimony

 

 

Precious Metals

 

 

Zeolite

 

 

Total

 

Total revenues

 

$2,828,930

 

 

$-

 

 

$2,828,930

 

 

$77,334

 

 

$674,042

 

 

$3,580,306

 

Depreciation and amortization

 

$9,469

 

 

$138,457

 

 

$147,926

 

 

$27,520

 

 

$44,704

 

 

$220,150

 

Income (loss) from operations

 

$1,391,512

 

 

$(684,037)

 

$707,475

 

 

$49,814

 

 

$22,291

 

 

$779,580

 

Other income (expense)

 

 

7,310

 

 

 

-

 

 

 

7,310

 

 

 

-

 

 

 

(638)

 

 

6,672

 

NET INCOME (LOSS)

 

$1,398,822

 

 

$(684,037)

 

$714,785

 

 

$49,814

 

 

$21,653

 

 

$786,252

 

 

Segment operations for the three months ended March 31, 2021

 

Antimony - USA

 

 

Antimony -Mexico

 

 

Total antimony

 

 

Precious Metals

 

 

Zeolite

 

 

Total

 

Total revenues

 

$657,107

 

 

$-

 

 

$657,107

 

 

$76,233

 

 

$519,947

 

 

$1,253,287

 

Depreciation and amortization

 

$7,891

 

 

$144,952

 

 

$152,843

 

 

$27,604

 

 

$42,017

 

 

$222,464

 

Income (loss) from operations

 

$(218,669)

 

$(238,568)

 

$(457,237)

 

$48,630

 

 

$66,881

 

 

$(341,726)

Other income (expense)

 

 

6,635

 

 

 

-

 

 

 

6,635

 

 

 

-

 

 

 

(397)

 

 

6,238

 

NET INCOME (LOSS)

 

$(212,034)

 

$(238,568)

 

$(450,602)

 

$48,630

 

 

$66,484

 

 

$(335,488)

 

 
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This quarterly report and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

 

Any statement that expresses or involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates”, or “intends”, or states that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

 

 

·

Risks related to the Company’s properties being in the exploration stage;

 

·

Risks related to the mineral operations being subject to government regulation;

 

·

Risks related to environmental concerns;

 

·

Risks related to the Company’s ability to obtain additional capital to develop the Company’s resources, if any;

 

·

Risks related to mineral exploration and development activities;

 

·

Risks related to mineral estimates;

 

·

Risks related to the Company’s insurance coverage for operating risks;

 

·

Risks related to the fluctuation of prices for precious and base metals, such as gold, silver and copper;

 

·

Risks related to the competitive industry of mineral exploration;

 

·

Risks related to the title and rights in the Company’s mineral properties;

 

·

Risks related to the possible dilution of the Company’s common stock from additional financing activities;

 

·

Risks related to potential conflicts of interest with the Company’s management;

 

·

Risks related to the Company’s shares of common stock;

  

This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Risk Factors”, “Description of Business” and “Management’s Discussion and Analysis and Plan of Operation” of this Quarterly Report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. The Company advises readers to carefully review the reports and documents filed from time to time with the Securities and Exchange Commission (the “SEC”), particularly the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

 

United States Antimony Corporation qualifies all forward-looking statements contained in this Quarterly Report by the foregoing cautionary statement.

 

Certain statements contained in this Quarterly Report on Form 10-Q constitute “forward-looking statements.” These statements, identified by words such as “plan,” “anticipate,” “believe,” “estimate,” “should,” “expect,” and similar expressions include the Company’s expectations and objectives regarding its future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under the caption “Management’s Discussion and Analysis or Plan of Operation” and elsewhere in this Quarterly Report.

 

 
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As used in this Quarterly Report, the terms “we,” “us,” “our,” “United State Antimony Corporation,”, “US Antinomy “and the “Company”, mean United States Antimony Corporation, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.

 

Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s condensed consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2021. The following statements may be forward-looking in nature and actual results may differ materially.

 

Reports to Security Holders

 

The Registrant does not issue annual or quarterly reports to security holders other than the annual Form 10-K and quarterly Forms 10-Q as electronically filed with the SEC. Electronically filed reports may be accessed at www.sec.gov.

 

DESCRIPTION OF BUSINESS

 

History

 

United States Antimony Corporation, or USAC, was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, we suspended antimony mining operations but continued to produce antimony products from domestic and foreign sources. In April 1998, we formed United States Antimony SA de CV or USAMSA, to mine and smelt antimony in Mexico. Bear River Zeolite Company, or BRZ, was incorporated in 2000, and it is mining and producing zeolite in southeastern Idaho. On August 19, 2005, USAC formed Antimonio de Mexico, S. A. de C. V. to explore and develop antimony and silver deposits in Mexico. Our principal business is the production and sale of antimony, silver, gold, and zeolite products. On May 16, 2012, we started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY.

 

Antimony Division

 

Our antimony smelter and precious metals plant is located in the Burns Mining District of Sanders County, Montana, approximately 15 miles west of Thompson Falls, MT. We hold 2 patented mill sites where the plant is located. We have no “proven reserves” or “probable reserves” of antimony, as these terms are defined by the Securities and Exchange Commission. Environmental restrictions preclude mining at this site.

 

Mining was suspended in December 1983, because antimony could be purchased more economically from foreign sources.

 

For 2021, and since 1983, we relied on foreign sources for raw materials, and there are risks of interruption in procurement from these sources and/or volatile changes in world market prices for these materials that are not controllable by us. We have sources of antimony in Mexico but we are still depending on foreign companies for raw material in the future. We expect to receive raw materials from our owned and leased properties for 2022 and later years. We continue working with suppliers in North America, Central America, and South America.

 

We currently own 100% of the common stock, equipment, and the leases on real property of United States Antimony, Mexico S.A. de C.V. or “USAMSA”, which was formed in April 1998. We currently own 100% of the stock in Antimony de Mexico SA de CV (ADM) which owns the San Miguel concession of the Los Juarez property. USAMSA has two divisions, (1) the Madero smelter in Coahuila, (2) the Puerto Blanco flotation mill and oxide circuit in Guanajuato. ADM possesses the Los Juarez mineral deposit.

 

In our existing operations in Montana, we produce antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. We also sell antimony metal for use in bearings, storage batteries and ordnance.

 

 
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We estimate (but have not independently confirmed) that our present share of the domestic market and international market for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products, while China supplies 92% of the world antimony demand. We believe we are competitive both domestically and world-wide due to the following:

 

 

·

We have a reputation for quality products delivered on a timely basis.

 

 

 

 

·

We have the only two operating, permitted, antimony smelters in North and Central America.

 

 

 

 

·

We are the only domestic producer of antimony products.

 

 

 

 

·

We can ship on short notice to domestic customers.

 

 

 

 

·

We are vertically integrated, with raw materials from our own mines, mills, and smelter in Mexico, along with the raw materials from exclusive supply agreements we have with numerous ore and raw material suppliers.

 

 

 

 

·

Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States with a current maximum capacity of about 32,600 pounds of feed per day and permitting for 50% to 70% expansion.

 

Zeolite Division

 

We own 100% of Bear River Zeolite Company, (BRZ, an Idaho corporation) that was incorporated on June 1, 2000. BRZ has a lease with Webster Farm, L.L.C. that entitles BRZ to surface mine and process zeolite on property located near Preston, Idaho, in exchange for a royalty payment. In 2010 the royalty was adjusted to $10 per ton sold. The current minimum annual royalty is $60,000. In addition, BRZ has more zeolite on U.S. Bureau of Land Management land. The Company pays various royalties on the sale of zeolite products. William Raymond and Nancy Couse are paid a royalty that varies from $1 to $5 per ton. On a combined basis, royalties vary from 8%-13% of sales. Shortly after inception BRZ constructed a processing plant on the property which improved its productive capacity. Ground-breaking for an additional warehouse to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop are expected to be completed by mid-2022. A vertical-shaft-impactor crusher was replaced by a hammer mill for crushing line number 1 in 2021 for increased production rate. A replacement jaw crusher was installed and put into service in 2021. The new jaw crusher was further improved with a variable-speed apron feeder in late 2021 and subsequent and substantial improvements have been made to the jaw crusher in 2022. In 2021, the Company purchased a house in Preston Idaho for the express purpose of housing workers for its zeolite operation.

 

We have no reserves nor resources of zeolite, as these terms are defined by the Securities and Exchange Commission.

 

“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. BRZ zeolite is regarded as one of the best zeolites in the world due to its high CEC of approximately 180-220 meq/100 gr., its hardness and high clinoptilolite content, its absence of clay minerals, and its low sodium content. BRZ’s zeolite deposits’ characteristics which make the mineral useful for a variety of purposes including:

 

 

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 solution. Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.

 

 

 

 

Odor Control. A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure. The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor.

 

 
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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 fish ponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses.

 

 

 

 

Animal Nutrition. According to other research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours. BRZ does not make these claims.

 

 

 

 

Miscellaneous Uses. Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner and carriers for insecticides, pesticides and herbicides.

 

SELECTED FINANCIAL DATA.

 

Statement of Operations Information:

 

 

 

For the three months ended

 

 

 

March 31, 2022

 

 

March 31, 2021

 

Revenues

 

$3,580,306

 

 

$1,253,287

 

Cost of revenues

 

 

2,440,918

 

 

 

1,041,130

 

Gross profit

 

 

1,139,388

 

 

 

212,157

 

Total operating expenses

 

 

359,808

 

 

 

553,883

 

Income (loss) from operations

 

 

779,580

 

 

 

(341,726)

Other income (expense)

 

 

6,671

 

 

 

6,238

 

NET INCOME (LOSS)

 

$786,252

 

 

$(335,488)

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock (basic)

 

 

106,240,361

 

 

 

92,711,336

 

Weighted average shares of common stock (diluted)

 

 

106,389,761

 

 

 

92,711,336

 

 

 

 

 

 

 

 

 

 

Income (loss) per share (basic and diluted)

 

$0.01

 

 

$

  Nil

 

 

Balance Sheet Information:

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Working capital

 

$22,351,718

 

 

$21,548,137

 

Total assets

 

 

35,539,545

 

 

 

35,002,727

 

Accumulated deficit

 

 

(31,925,011)

 

 

(32,711,263)

Stockholders’ equity

 

 

33,155,055

 

 

 

32,368,803

 

 

 
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Operational and financial performance

 

Antimony

 

Financial and operational metrics of antimony for the three months ended March 31, 2022 and 2021 was as follows:

 

Antimony – combined USA and Mexico

 

2022

 

 

2021

 

Total revenue - antimony

 

$2,828,930

 

 

$657,107

 

Gross profit - antimony

 

 

1,055,777

 

 

 

87,467

 

Total pounds of antimony sold

 

 

433,350

 

 

 

181,969

 

Average sales price per pound

 

$6.53

 

 

$3.61

 

Average cost per pound

 

$4.09

 

 

$3.13

 

Average gross profit per pound

 

$2.44

 

 

$0.48

 

 

During the three months ended March 31, 2022, the average sales price for antimony increased $2.92 per pound compared to the three months ended March 31, 2021. Gross profit per pound increased $1.96 over the three months ended March 31, 2021.

 

Total revenue from antimony increased $2,171,823 to $2,828,930 for the three months ended March 31, 2022 compared to $657,107 for the comparable prior period ending March 31, 2021.  The increase is attributed to an increase in average sales price of $2.92 coupled with an increase of 251, 3851 pound in volume of antimony sold during the three months ended March 31, 2022 compared to the three months ended March 31, 2021. 

  

Gross profit improved from $87,467 (17.3% of revenue) for the three months ended March 31, 2021 to $1,055,777 (60.6% of revenue) for the three months ended March 31, 2022.  

   

The company experienced increased labor costs for the current three-month period relative to the same timeframe in the prior year. A portion of that increase is due to resuming more normalized production levels in 2022 compared to 2021, while a portion is attributable to higher costs of attracting workers. The Company previously increased it starting wage to attract workers during 2021 and the effects thereof impact current cost of goods sold. While it is difficult to estimate the full impact of current inflationary pressures relative to other costs of production and materials, management expects labor costs to remain relatively steady as COVID-related government benefits are being phased out, encouraging the labor force to go back to work. Management expects the sales price of antimony to remain strong and keep pace with inflation in the short term.

  

Modifications to the initial two new furnaces used to produce antimony trisulfide were completed and production runs were conducted confirming the efficacies of the design changes. These furnaces produced 3,091 pounds of antimony trisulfide in January/February time period.

  

Two additional electric furnaces have been ordered in anticipation of demand for antimony trisulphide and to allow for down-time servicing. These furnaces have been delivered and the necessary modifications are being completed

 

The Montana operating team continues to improve and was able to increase sales and shipments during the period to take advantage of the favorable market prices for antimony.  The Company anticipates demand for antimony to remain strong for the foreseeable future and has a strong pipeline of orders in place.

 

Zeolite

 

Financial and operational performance of zeolite for the three months ended March 31, 2022 and 2021 was as follows:

 

Zeolite

 

2022

 

 

2021

 

Total revenue – zeolite

 

$674,042

 

 

$519,947

 

Gross profit – zeolite

 

 

33,797

 

 

 

76,061

 

Total tons of zeolite sold

 

 

3,026

 

 

 

2,743

 

Average sales price per ton

 

$222.75

 

 

$189.55

 

Average cost per pound ton

 

$211.58

 

 

$161.83

 

Average gross profit per ton

 

$11.17

 

 

$27.73

 

 

Sales volume of zeolite for the three months ended March 31, 2022 increased 283 tons over the three months ended March 31, 2021. Average sales price per ton increased $33.20 for the same comparable period.

 

Total revenue from zeolite sales increased $154,095 for the three months ended March 31, 2022 to $674,042 compared to $519,947 for the three months ended March 31, 2021.  The increase in revenue is attributable to stronger sales price for zeolite in 2022.

 

Gross profit for the three months ended March 31, 2022 decreased $42,264 to $33.797 compared to $76,061 for the three months ended March 31, 2021.   The Company incurred equipment  maintenance expense in the amount of $38,965 during  the three months ended March 31, 202 compared to  $788 for the three months ended March 31, 2021 when the Company deferred certain expenses in anticipation of closing its capital raise.

 

Precious Metals

 

Financial and operational performance of precious metals for the three months ended March 31, 2022 and 2021 was as follows:

 

 

Precious metals

 

2022

 

 

2021

 

Total revenue – precious metals

 

$77,334

 

 

$76,233

 

Ounces sold – gold

 

 

10.29

 

 

 

7.28

 

Ounces sold - silver

 

 

4,856

 

 

 

3,354

 

  

EARNINGS BEFORE INTEREST TAX DEPRECIATION AND AMORTIZATION

 

The Company utilizes Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”), a non-GAAP financial measurement which approximates free cash flow.

 

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was a $1,009,384 for the three months ended March 31, 2022, compared to a negative EBITDA of $110,769 for the three months ended March 31, 2021.

 

 
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EBIDTA schedules by business segment is presented as follows.

 

Antimony – Combined USA and Mexico

 

March 31, 2022

 

 

March 31, 2021

 

Antimony revenue

 

$2,828,930

 

 

 

100.0%

 

$657,107

 

 

 

100.0%

Cost of sales

 

 

(1,773,153)

 

(62.7%)

 

 

 

(569,640)

 

(86.7%)

 

Gross profit

 

 

1,055,777

 

 

 

37.3%

 

 

87,467

 

 

 

13.3%

Operating expenses

 

 

(348,302)

 

(12.3%)

 

 

 

(544,704)

 

(82.9%)

 

Non-operating income

 

 

7,310

 

 

 

0.3%

 

 

6,635

 

 

 

1.0%

Net income (loss) - antimony

 

 

714,785

 

 

 

25.3%

 

 

(450,602)

 

(68.6%)

 

Interest expense

 

 

2,345

 

 

 

0.1%

 

 

1,527

 

 

 

0.2%

Depreciation and amortization

 

 

147,926

 

 

 

5.2%

 

 

152,843

 

 

 

23.3%

EBITDA - Antimony

 

$865,055

 

 

 

30.6%

 

$(296,232)

 

(45.1%)

 

 

Zeolite

 

March 31, 2022

 

 

March 31, 2021

 

Zeolite revenue

 

$674,042

 

 

 

100.0%

 

$519,947

 

 

 

100.0%

Cost of sales

 

 

(640,245)

 

(95.0%)

 

 

 

(443,886)

 

(85.4%)

 

Gross profit

 

 

33,797

 

 

 

5.0%

 

 

76,061

 

 

 

14.6%

Operating expenses

 

 

(11,506)

 

(1.7%)

 

 

 

(9,179)

 

(1.8%)

 

Non-operating income

 

 

(638)

 

(0.1%)

 

 

 

(397)

 

(0.1%)

 

Net income - zeolite

 

 

21,653

 

 

 

3.2%

 

 

66,485

 

 

 

12.8%

Interest expense

 

 

638

 

 

 

0.1%

 

 

728

 

 

 

0.1%

Depreciation and amortization

 

 

44,704

 

 

 

6.6%

 

 

42,017

 

 

 

8.1%

EBITDA - Zeolite

 

$66,995

 

 

 

9.9%

 

$109,230

 

 

 

21.0%

 

Precious Metals

 

March 31, 2022

 

 

March 31, 2021

 

Precious metals revenue

 

$77,334

 

 

 

100.0%

 

$76,233

 

 

 

100.0%

Cost of sales

 

 

(27,520)

 

(35.6%)

 

 

 

(27,604)

 

(36.2%)

 

Net income – precious metals

 

 

49,814

 

 

 

64.4%

 

 

48,629

 

 

 

63.8%

Depreciation and amortization

 

 

27,520

 

 

 

35.6%

 

 

27,604

 

 

 

36.2%

EBITDA - Precious metals

 

$77,334

 

 

 

100.0%

 

$76,233

 

 

 

100.0%

 

 
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Company-wide

 

March 31, 2022

 

 

March 31, 2021

 

Revenue

 

$3,580,306

 

 

 

100.0%

 

$1,253,287

 

 

 

100.0%

Cost of sales

 

 

(2,440,918)

 

(68.2%)

 

 

 

(1,041,130)

 

(83.1%)

 

Gross profit

 

 

1,139,388

 

 

 

31.8%

 

 

212,157

 

 

 

16.9%

Operating expenses

 

 

(359,808)

 

(10.0%)

 

 

 

(553,883)

 

(44.2%)

 

Non-operating income

 

 

6,672

 

 

 

0.2%

 

 

6,238

 

 

 

0.5%

Net income (loss) - antimony

 

 

786,252

 

 

 

22.0%

 

 

(335,488)

 

(26.8%)

 

Interest expense

 

 

2,983

 

 

 

0.1%

 

 

2,255

 

 

 

0.2%

Depreciation and amortization

 

 

220,150

 

 

 

6.1%

 

 

222,464

 

 

 

17.8%

EBITDA

 

$1,009,384

 

 

 

28.2%

 

$(110,769)

 

(8.8%)

 

 

LIQUIDITY AND FINANCIAL CONDITION

 

WORKING CAPITAL

 

March 31, 2022

 

 

December 31, 2021

 

Current assets

 

$24,096,396

 

 

$23,568,992

 

Current liabilities

 

 

(1,744,678)

 

 

(2,020,855)

Working capital

 

$22,351,718

 

 

$21,548,137

 

 

 

 

For the three months ended

 

CASH FLOWS

 

March 31, 2022

 

 

March 31, 2021

 

Cash flow provided (used) by operating activities

 

$163,903

 

 

$(2,449,854)

Cash flow used by investing activities

 

 

(188,541)

 

 

(23,298)

Cash flow provided (used) by financing activities

 

 

(4,057)

 

 

24,850,380

 

Net change in cash during period

 

$(28,695)

 

$22,377,228

 

 

As of March 31, 2022, the Company had cash on hand of $21,334,353.

 

For the year ending December 31, 2022, we are planning to use funds acquired from the two stock offerings raised in 2021 to make significant improvements to our operations at Madero, Puerto Blanco, Bear River Zeolite, and Thompson Falls facilities with the goal of increasing production and decreasing costs.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

The Company does not hold any derivative instruments and does not engage in any hedging activities.

 

 
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ITEM 4. CONTROLS AND PROCEDURES

 

Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures

 

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company's management, including the President and Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), of the effectiveness of the design and operations of the Company's disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the PEO and the PFO have concluded that as of the end of the period covered by this report, the Company's disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures. 

 

Management of the Company believes that these material weaknesses are due to the small size of the Company's accounting staff. The small size of the Company's accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes during the quarter ended March 31, 2022 in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

 

 
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PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

United States Antimony Corporation is not a party to any material legal proceedings, and, to Management’s knowledge, no such proceedings are threatened or contemplated. No director, officer or affiliate of United States Antimony Corporation and no owner of record or beneficial owner of more than 5% of the Company’s securities or any associate of any such director, officer or security holder is a party adverse to United States Antimony Corporation or has a material interest adverse to United States Antimony Corporation in reference to pending litigation.

 

ITEM 1A. RISK FACTORS.

 

There have been no material changes from the risk factors as previously disclosed in the Company’s Form 10-K for the year ended December 31, 2021 which was filed with the SEC on March 31, 2022.

 

ITEM 2. RECENT SALES OF UNREGISTERED SECURITIES.

  

For the three months ended March 31, 2022, the Company sold no common stock.

 

During the three months ended March 31, 2022, neither the Company nor any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) purchased any shares of our Common Stock, the only class of the Company’s equity securities registered pursuant to section 12 of the Exchange Act at the date of this filing.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None

 

ITEM 4. MINE SAFETY DISCOSURES.

 

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. The information concerning mine safety violations or other regulatory matters required by Section 1503 (a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report.

 

ITEM 5. OTHER INFORMATION.

  

None

  

 
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ITEM 6. EXHIBITS.

   

Exhibit No.

 

Description

31.1

 

Rule 15d-14(a) Certification by Principal Executive Officer

31.2

 

Rule 15d-14(a) Certification by Principal Financial Officer

32.1

 

Section 1350 Certification of Principal Executive Officer

32.2

 

Section 1350 Certification of Principal Financial Officer

95

 

Mine Safety Disclosure

101.INS

 

Inline XBRL Instance Document.

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

 

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

 

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

In accordance with Rule 402 of Regulation S-T, the XBRL information included in Exhibit 101 to this Form 10-Q shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

UNITED STATES ANTIMONY CORPORATION

 

 

 

 

Date: May 16, 2022

By:

/s/ Russell Lawrence

 

 

 

Russell Lawrence

 

 

 

(Principal Executive Officer, President and Director)

 

 

 

 

 

Date: May 16, 2022

By:

/s/ Kelly J. Stopher

 

 

 

Kelly J. Stopher

 

 

 

(Principal Accounting Officer)

 

 

 

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