What changed in this filing

/stocks — the workspaceLOADING

Item 5. Market for Registrant’s Common Equity

2022-03-31 compared with 2021-03-31 · 17 added, 656 removed, 0 unchanged (100% of the section changed)

Item 5 Market for Common Equity and Related Stockholder

our common stock is traded on the NYSE-AMERICAN under the symbol

approximate number of holders of record of our common stock at

March 31, 2021, is 2,387.

not declared or paid any dividends to our stockholders during the

last five years and do not anticipate paying dividends on our

common stock in the foreseeable future.

Instead, we expect to

retain earnings for the operation and expansion of our

During 2020, the Company sold

units consisting of 5,742,858 from sale of shares of its common

stock and 5,742,858 warrants to purchase shares of common stock for

total proceeds of $2,010,000.

Offering costs associated with the

sale totaled $196,932.

2019, the Company sold units consisting of 904,082 shares of its

common stock and 452,041 warrants to purchase shares of common

stock for total proceeds of $433,960.

Offering costs associated

with the sale totaled $29,761.

the year ended December 31, 2020, the Company awarded, but did not

issue, common stock with a value of $110,000 to its Board of

Directors as compensation for their services as directors.

connection with the issuances, the Company recorded $110,000 in

director compensation expense and accrued common stock

2020, the Company issued the Board members 295,463 shares of the

Company’s common stock for services provided during 2019

which was accrued at December 31, 2019, with a value of

the years ended December 31, 2019, the Company awarded but did not

issue, common stock with a value of $134,375 to its Board of

Directors as compensation for their services as directors.

connection with the issuances, the Company recorded $134,375 in

director compensation expense and accrued common stock

January 2019, the Company issued Daniel Parks, the Company’s

prior Chief Financial Officer, 200,000 shares of the

Company’s common stock with a fair value of $136,000 to

retain his services.

Selected Financial Data

Management's Discussion and Analysis or Plan of

matters discussed are forward-looking statements that involve risks

and uncertainties, including the impact of antimony prices and

production volatility, changing market conditions and the

regulatory environment and other risks.

Actual results may differ

materially from those projected.

These forward-looking statements

represent our judgment as of the date of this filing.

however, any intent or obligation to update these forward-looking

year ended December 31, 2020, we reported net loss of $3,286,804

after depreciation and amortization of $885,843, compared to a net

loss of $3,672,891 for 2019 after depreciation and amortization of

Our company-wide EBITDA was a negative $2,400,961 for

2020, compared to a negative EBITDA of $2,776,901 for

non-cash expense items for 2020 totaled $1,317,644 and included

$318,502 for the loss on mineral properties, $885,843 for

depreciation and amortization, $106,108 for stock-based director

compensation, and $7,191 for other items.

non-cash expense items for 2019 totaled $2,653,757 and included

$1,410,736 for the loss on abandonment of mineral properties,

$895,990 for depreciation and amortization, $54,112 for

amortization of debt discount, $134,375 for stock-based director

compensation, $136,000 for stock-based employee compensation,

$16,396 for the write-down of inventory, and $6,148 for other

the year ending December 31, 2020, the following transactions had a

material impact on the Company’s net loss.

In July of 2020,

USAMSA elected to relinquish its lease agreement with the Wadley

This decision, which resulted in a loss on mineral

properties of $318,502 in 2020, was made principally because the

exclusivity rights to purchase ore were not being honored.

purchases were suspended for a time following this event and have

been re-established in early 2021.

Ore purchased from the Wadley

mines is now on a net smelter return basis.

The Company was notified of delinquent export tax

due associated with antimony production in Mexico prior to 2018.

2020, the Company recognized an expense for the amount due of

approximately $1.2 million which was paid in February

the year ending December 31, 2019, the following transaction had a

material impact on the Company’s net loss.

During the fourth

quarter of 2019, it was decided to abandon two mining concessions

in Mexico, known as the Guadalupe mine and the Soyatal mine.

decision was prompted by the low prices for antimony and the

expected cost to develop the properties.

The effect of abandoning

the properties was a non-cash loss of $1,410,736 which was the

carrying value of the mineral properties less the balance of

related debt.

Antimony Sales

2020, we saw our average sale price increase by $0.13 per pound

from an average of $3.48 per pound for 2019 to an average of $3.61

per pound for 2020.

Following the change in management in June and

the suppressed price of antimony, the Company temporarily suspended

sale of antimony oxide.

This decision was made principally in order

to minimize the loss per pound in sales at a time for which our

production acquisition contracts were being renegotiated.

consequence of these decisions, the Company is, as of the first

quarter of 2021, obtaining its raw materials from its Mexican

sources at a substantial savings as compared to the previous year.

These savings are due to the withdrawal of overhead from the staff

it had at the Wadley mine.

Additionally, the Company is now

processing antimony products at its Madero facility at a

substantial savings compared with all previous years.

These savings

were due to the renegotiating of its natural gas contract for the

Madero smelter.

2019, we saw our average sale price decrease by $0.63 per pound

from an average price of $4.11 per pound for 2018 to $3.48 per

pound for 2019.

During 2019, our raw material from our North

American supplier increased by approximately 100,000 pounds and our

supply of raw material from our Mexican mines decreased by

approximately 20,000 pounds.

Even though our sales volume

increased, our total sales of antimony decreased due to the

decrease in our sales price.

This resulted in estimated decreased

sales of approximately $662,000.

Normal shipments from our North

American supplier resumed in 2019 at a lower level than we

expected, and we do not expect an increase from this supplier in

the near future.

third quarter of 2019, we renegotiated our sodium antimonite supply

agreement from our North American supplier to recognize that

antimony prices were in a world-wide slump, and that our general

and administrative costs were a larger percent of our revenues than

they were under the previous agreement.

The new price agreement was

implemented in the third quarter of 2019, and resulted in lower

antimony production costs and an improved cash flow for 2019 and

better expectations for the North American operations going

The Company is currently engaged in a renewal of the

contract with this supplier.

The nature of the contract will likely

be altered in order to establish a better agreement for both

Zeolite Sales

sales volume of zeolite in 2020 was 3,019 tons less than we sold in

2019, a decrease of 22%.

Our average sales price increased by

approximately $6 per ton, from $192 per ton in 2019 to $199 per ton

in 2020 (3.6%).

During 2020, total sales of zeolite decreased by

$504,294 from 2019.

The zeolite division had an EBIDTA of $445,481

for 2020, compared to an EBITDA of $683,936 for 2019.

decreased from $497,470 in 2019 to $262,861 in 2020

sales volume of zeolite in 2019 was 641 tons less than we sold in

2018, a decrease of 4.5%.

Our average sales price increased by

approximately $6 per ton, from $186 per ton in 2018 to $192 per ton

in 2019 (2.7%).

During 2019, total sales of zeolite decreased by

$43,827 from 2018.

The zeolite division had an EBIDTA of $683,936

for 2019, compared to an EBITDA of $638,764 for 2018.

increased from $449,961 in 2018 to $497,470 in 2019, approximately

Precious Metals Sales

Precious Metal Sales

For the Year Ended December 31,

Gold Shipped (Au)

Silver Shipped (Ag)

11,434  

11,714  

$ 174,079  

$ 194,239  

years ended December 31, 2020 and 2019, the EBITDA for precious

metals was $174,079 and $194,239, respectively.

Results of Operations by Division

For the years ended December 31, 2020 and 2019

Antimony Division

- Antimony (net of discount)

$ 2,942,628  

$ 5,450,649  

cost of sales:

   Production

1,388,065  

2,352,959  

   Depreciation

25,809  

43,738  

   Freight

169,662  

243,341  

   Indirect

production costs

139,035  

164,876  

   Direct

sales expense

65,652  

      Total

domestic antimony cost of sales

1,722,571  

2,870,566  

cost of sales:

   Production

471,598  

3,268,277  

   Depreciation

and amortization

590,579  

596,719  

   Land

lease expense

166,800  

   Indirect

production costs

363,206  

71,329  

      Total

Mexico antimony cost of sales

1,425,383  

4,103,125  

      Total

revenues - antimony

2,942,628  

5,450,649  

      Total

cost of sales - antimony

3,147,954  

6,973,691  

      Total

gross profit (loss) - antimony

Precious Metals Division:

174,079  

194,239  

   Depreciation

86,835  

69,067  

      Total

cost of sales

86,835  

69,067  

      Gross

profit - precious metals

87,244  

125,172  

Zeolite Division:

2,118,823  

2,623,117  

   Production

1,000,772  

1,160,502  

   Depreciation

182,620  

186,466  

   Freight

223,545  

269,251  

   Indirect

production costs

163,231  

158,891  

   Royalties

224,875  

266,388  

      Total

cost of sales

1,795,043  

2,041,498  

      Gross

profit - zeolite

323,781  

581,619  

   Total

revenues - combined

5,235,530  

8,268,005  

   Total

cost of sales - combined

5,029,832  

9,084,256  

      Total

gross profit (loss) combined

$ 205,698  

Earnings before income taxes

depreciation and amortization

For the years ended December 31, 2020 and 2019

Antimony - Combined USA

   and Mexico

of Antimony Metal USA

514,837  

794,770  

of Antimony Metal Mexico

300,473  

771,815  

   Total Lbs of Antimony Metal Sold

815,310  

1,566,585  

Sales Price/Lb Metal

$ 3.61  

$ 3.48  

Net loss/Lb Metal

antimony revenue

$ 2,942,628  

$ 5,450,649  

of sales - domestic

of sales - Mexico

Non-operating

21,808  

87,798  

on mineral properties

Net loss - antimony

Depreciation,&

616,388  

640,457  

   EBITDA - antimony

$ (3,020,521 )

$ (3,655,076 )

Precious Metals

  Gold

  Silver

11,434  

11,714  

precious metals revenue

$ 174,079  

$ 194,239  

Net income - precious metals

87,244  

125,172  

86,835  

69,067  

   EBITDA - precious metals

$ 174,079  

$ 194,239  

10,661  

13,680  

Sales Price/Ton

$ 198.75  

$ 191.75  

Net income (Loss)/Ton

$ 24.66  

$ 36.36  

zeolite revenue

$ 2,118,823  

$ 2,623,117  

Non-operating

Net income - zeolite

262,861  

497,470  

182,620  

186,466  

   EBITDA - zeolite

$ 445,481  

$ 683,936  

$ 5,235,530  

$ 8,268,005  

Non-operating

17,938  

72,216  

on mineral properties

Net income (loss)

Depreciation,&

885,843  

895,990  

   EBITDA

$ (2,400,961 )

$ (2,776,901 )

the period ending December 31, 2020, the most significant factors

affecting our financial performance were as follows:

death of John Lawrence, the Company’s previous President and

Chairman, which created the opportunity to renegotiate existing

supply and processing contracts,

continuing decline of antimony prices,

assessment against US Antimony from the Mexican tax authority (SAT)

in the amount of $1,120,730 regarding a lawsuit the Company had

been in involved in since 2016.

private placement of 5,742,858 shares of the Company’s common

stock sold in July of 2020.

50% decrease in Canadian supply of sodium antimonate.

consequences of the Covid-19 pandemic to antimony and zeolite sales

and corresponding increase costs of freight.

During the period ended December 31, 2019, the

most significant event affecting our financial performance was the

continued low price of antimony.

This decrease in prices caused us

to re-evaluate our commitment to the two antimony mines we were

purchasing in Mexico.

We made the decision that with the depressed

prices and the cost of developing the mines, it was in our

best interest to abandon these properties and look at re-acquiring

them in the future if antimony prices improved.

It was decided that

our resources should be directed to completing our precious metals

facility at Puerto Blanco and starting precious metals production

In connection with the low antimony prices, we negotiated

a lower cost agreement with our North American supplier which will

help us with future cash flow.

plan for the remainder of 2021 is to process

approximately:

tons of mined rock from the Los Juarez property.

2,000 tons have

already been moved to the Puerto Blanco facility.

It is estimated

that we have 10,000 tons of mined rock at the Los Juarez

least 720 tons of ore from the Wadley mines at the Madero Smelting

tons of milled tailings at the Puerto Blanco facility.

tons of stibnite ore at Puerto Blanco facility for the generation

of concentrates specifically for the production of antimony

trisulfide for the Defense Logistic Agency (DLA).

addition to the processing goals stated above, US Antimony intends

to continue to improve its production capacity and sales of zeolite

at its subsidiary Bear River Zeolite (BRZ).

Funds obtained in early

2021 from two public placements of stock will assist greatly to

this goal as well as the improvement of the facilities in Madero,

Thompson Falls, Puerto Blanco, and Los Juarez.

2020, we only received 50% of our expected supply from North

American sources.

We anticipated increasing the raw material from

Mexico and the resumption of normal shipments from our North

American supplier in 2019, but these plans did not materialize due

to low overall metal prices and the low antimony prices in

2020 and 2019, the Puerto Blanco mill circuits were utilized less

than 2% of their capacity, but with the completion of the cyanide

leach circuit we expect it to be fully utilized processing precious

metals ore from the Los Juarez mine.

Some antimony will be realized

as a by-product of processing the Los Juarez ore.

Antimony has been involved in renegotiating its supply contract

with its North American source, that will likely result in a mutual

improvement in the supply contract.

Additionally, the price of

antimony in early 2021 is double what it was in 2019.

estimated recovery of precious metals per metric ton, after the

caustic leach and cyanide leach circuits, is as follows at Los

Schedule of Los Juarez

$ 52.98  

$ 25.90/oz  

$ 54.46  

$ 5.23/lb  

$ 31.41  

$ 138.85  

following are highlights of the significant changes during

antimony during 2020 was 815,310 pounds compared to 1,566,585

pounds in 2019, a decrease of 751,275 pounds (48%).

The average sales

price of antimony during 2020 was $3.61 per pound compared to $3.48

during 2019, an increase of $0.13 per pound (3.6%).

beginning of 2021, the Rotterdam price of antimony is approximately

$5.23 per pound.

The metallurgical

problem with the Los Juarez concentrates has been solved with the

cyanide and caustic leach plants, and initial production will

This allowed the preliminary testing of the cyanide leach

circuit to occur in 2020.

The Company plans to process both 1,300

tons of Los Juarez ore and 300 tons of milled tailings through this

cyanide leach circuit during 2021.

The net loss for

antimony sold was $4.46 per pound in 2020.

Our cost of goods

sold for antimony decreased from $6,973,691 in 2019 to $3,147,954

This was primarily due to the decrease in antimony

production during 2020 in response to the lower price of antimony,

and halting production at the Wadley facility.

production for the years ended December 31, 2020 and 2019 included

metallurgical testing at Puerto Blanco and Madero, Mexico, and to a

lesser degree, our plant in Thompson Falls, Montana.

We are producing

and buying raw materials, which will allow us to ensure a steady

flow of products for sale.

Our smelter at Madero, Mexico, was

producing primarily from ore from the Wadley mine in 2019.

Production from Madero during 2020 and 2019 was primarily from our

own Mexican properties, and although we only received 50% of

expected raw materials from our North American supplier, we

purchased a significant portion of the raw materials for our

smelter in Montana.

We produced ingots

of antimony metal to be shipped directly to customers from our

Madero smelter in 2020.

We intend to increase this for 2021 and

This will significantly reduce our production and shipping

We are proceeding

with the processing of Los Juarez ore in the 100 ton per day mill

at Puerto Blanco.

Due to the hardness of the jasperoid rock at Los

Juarez, it has been determined that the actual through-put is more

like 80 tons per day.

2020, the Company sold 10,661 tons compared to 13,680 tons in 2019,

a decrease of 3,019 tons (22%).

BRZ realized a net income of

$262,862 in 2020 after depreciation of $182,620 compared to a net

income of $497,470 in 2019 after depreciation of

General and Administrative:

and administrative costs, as reported in our statement of

operations, include fees paid to directors through stock-based

compensation, office expenses, and fees to the NYSE AMERICAN, and

other non-operating costs.

The combined general and administrative

costs were 11.6%, and 8.2%, of sales for 2020 and 2019,

respectively.

Financial Condition and Liquidity

$ 1,808,161  

$ 1,279,755  

   Net

Working Capital

$ (2,669,382 )

$ (2,695,926 )

provided (used) by operations

$ (1,305,664 )

provided (used) by investing:

used for capital outlay

from sale of land

400,000  

provided (used) by financing:

from notes payable to bank, net of payments

13,149  

paid on long-term debt

from related party

237,400  

on advances from related parties

from CARES Act note payable

443,400  

issued for cash

1,813,068  

404,199  

issued and payable

69,052  

             Net

change in cash and restricted cash

$ 549,610  

$ 58,870  

working capital increased for the year ended December 31, 2020 from

a negative amount of $2,695,926 at the beginning of the year to a

negative amount of $2,669,382 at the end of 2020.

Current assets

increased due to an increase in cash and cash equivalents.

current liabilities increased by $501,862, which included a

decrease of approximately $584,000 in accounts payables and

payables to related parties, but an overall increase due to Mexican

export tax liability.

Capital improvements were paid for with cash

year ending December 31, 2021, we are planning to use funds

acquired from the two stock offerings raised in Q1 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.

Going Concern Consideration

December 31, 2020, the Company’s consolidated financial

statements show negative working capital of approximately $2.7

million and an accumulated deficit of approximately $32.7

million. 

With the exception of 2018, the Company has incurred

losses for the past several years. 

The net income in 2018 was

primarily due to non-recurring events which contributed

approximately $2.5 million to net income.

The continuing losses are

principally a result of the Company’s antimony operations due

to both depressed antimony prices and production costs incurred in

Mexico. 

To improve conditions, the Company plans to continue

searching for areas to reduce these production costs.  

Management expects improvement in cash flow in 2021 from the sale

of precious metals extracted from the leach circuit that came on

line in Mexico in the second half of 2020.  

the past several years, the Company has been able to make required

principal payments on its debt from cash generated from

operations. 

The Company is confident it can make debt

payments when due. 

In March 2020, the Company applied for and

received funds from a note payable under the CARES Act for

In July 2020 the Company was successful in raising

$1,813,068 from the sale of shares of common stock and warrants to

fund capital projects in Mexico.

In the first quarter of 2021, the

Company raised $23,497,180 (net of $1,499,820 in agent’s

fees) from sale of shares of its common stock and warrants that

will be used for general corporate purposes, working capital, and

to fund a geochemical, geological and geophysical program at the

Los Juarez property.

With the funds raised, management believes the

Company has sufficient funds to sustain its operations and meet its

financial obligations during the 12 months following the date of

issuance of the consolidated financial statements.

Critical Accounting Estimates

have, besides our estimates of the amount of depreciation on our

assets, two critical accounting estimates.

The percentage of

antimony contained in our unprocessed ore in inventory is based on

assays taken at the time the ore is delivered, and may vary when

the ore is processed.

Also, the asset recovery obligation on our

balance sheet is based on an estimate of the future cost to recover

and remediate our properties as required by our permits upon

cessation of our operations, and may differ when we cease

unprocessed ore is based on assays taken at the time the ore is

delivered, and may vary when the ore is processed.

We assay the ore

to estimate the amount of antimony contained per metric ton, and

then make a payment based on the Rotterdam price of antimony and

the % of antimony contained.

Our payment scale incorporates a

penalty for ore with a low percentage of antimony.

It is reasonably

likely that the initial assay will differ from the amount of metal

recovered from a given lot.

If the initial assay of a lot of ore on

hand at the end of a reporting period were different, it would

cause a change in our reported inventory, but would not change our

accounts payable, reported cost of goods sold or net income

Our net income would not be affected.

Direct shipping ore

(DSO) purchased at our Madero smelter is paid for at a fixed amount

at the time of delivery and assaying, and is not subject to

accounting estimates.

The amount of the accounting estimate for

purchased ore at our Puerto Blanco mill is in a constant state of

change because the amount of purchased ore and the per cent of

metal contained are constantly changing.

Due to the amount of ore

on hand at the end of a reporting period, as compared to the amount

of total assets, liabilities, equity, and the ore processed during

a reporting period, any change in the amount of estimated metal

contained would likely not result in a material change to our

financial condition.

retirement obligation and asset on our balance sheet is based on an

estimate of the future cost to recover and remediate our properties

as required by our permits upon cessation of our operations, and

may differ when we cease operations.

At December 31, 2011, we made

an estimate that the cost of the machine and man hours probable to

be needed to put our properties in the condition required by our

permits once we cease operations would be $134,000.

For purposes of

the estimate, we used a probable life of 20 years and costs that,

initially, are comparable to rates that we would incur at the

We are adding to (an accretion of 6%) the liability each

year, and amortizing the asset over 20 years ($6,700 annually),

which decreases our net income in total each year.

We make periodic

reviews of the remaining life of the mine and other operations, and

the estimated remediation costs upon closure, and adjust our

account balances accordingly.

At this time, we think that an

adjustment in our asset recovery obligation is not required, and an

adjustment in future periods would not have a material impact in

the year of adjustment, but would change the amount of the annual

accretion and amortization costs charged to our expenses by an

undetermined amount.

Item 7A Quantitative and Qualitative Disclosures about Market

Item 8 Financial Statements

consolidated financial statements of the registrant are included

herein on pages F1-F24.

Item 9 Changes in and Disagreements with Accountants on Accounting

and Financial Disclosure

Item 5 Market for Common Equity and Related Stockholder Matters

Currently, our common stock is traded on the NYSE-AMERICAN under the symbol UAMY.

The approximate number of holders of record of our common stock at March 28, 2022 is 2,370.

We have not declared or paid any dividends to our stockholders during the last five years and do not anticipate paying dividends on our common stock in the foreseeable future.

Instead, we expect to retain earnings for the operation and expansion of our business.

The Company issued the Board members 295,463 shares of the Company’s common stock for services provided during 2019 which was accrued at December 31, 2019, with a value of $130,483.

The Company sold units consisting of 5,742,858 from sale of shares of its common stock and 5,742,858 warrants to purchase shares of common stock for total proceeds of $2,010,000.

Offering costs associated with the sale totaled $196,932.

The Company awarded, but did not issue, common stock with a value of $110,000 to its Board of Directors as compensation for their services as directors.

In connection with the issuances, the Company recorded $110,000 in director compensation expense and accrued common stock payable.

The Company sold units consisting of 26,290,000 shares of its common stock and 7,650,000 warrants to purchase shares of common stock for total proceeds of $24,997,000.

Offering costs associated with the sale totaled $1,654,822 and included issuance of 2,410,500 warrants to a placement agent.

The Company issued the Board members 112,610 shares of the Company’s common stock for services provided during 2020 which was accrued at December 31, 2020, with a value of $110,000.

The Company awarded, but did not issue, common stock with a value of $112,500 to its Board of Directors as compensation for their services as directors.

In connection with the issuances, the Company recorded $112,500 in director compensation expense and accrued common stock payable.

Item 6 Selected Financial Data

Not Applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity