What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-05-16 compared with 2021-11-15 · 239 added, 124 removed, 12 unchanged (97% of the section changed)

Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

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

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.

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.

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

Cost of revenues

Total operating expenses

Income (loss) from operations

Other income (expense)

NET INCOME (LOSS)

Weighted average shares of common stock (basic)

Weighted average shares of common stock (diluted)

Income (loss) per share (basic and diluted)

Balance Sheet Information:

March 31, 2022

December 31, 2021

Working capital

Accumulated deficit

(31,925,011 )

(32,711,263 )

Stockholders’ equity

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Operational and financial performance

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

Antimony – combined USA and Mexico

September 30,

Lbs of Antimony Metal USA

Lbs of Antimony Metal Mexico:

Total Lbs of Antimony Metal Sold

Average Sales Price/Lb Metal

Net loss/Lb Metal

Gross antimony revenue - net of discount

Cost of sales - domestic

Cost of sales - Mexico

Total revenue - antimony

Gross profit - antimony

Total pounds of antimony sold

Average sales price per pound

Average cost per pound

Average gross profit per pound

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.

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

Total revenue – zeolite

Gross profit – zeolite

Total tons of zeolite sold

Average sales price per ton

Average cost per pound ton

Average gross profit per ton

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

Total revenue – precious metals

Ounces sold – gold

Ounces sold - silver

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

Cost of sales

Operating expenses

Non-operating income (expenses)

Loss on abandonment of mineral properties

Net loss - antimony

Depreciation,& amortization

Non-operating income

Net income (loss) - antimony

Interest expense

Depreciation and amortization

EBITDA - Antimony

$ (1,566,976 )

March 31, 2022

March 31, 2021

Zeolite revenue

Cost of sales

Operating expenses

Non-operating income

Net income - zeolite

Interest expense

Depreciation and amortization

EBITDA - Zeolite

Precious Metals

Gross precious metals revenue

March 31, 2022

March 31, 2021

Precious metals revenue

Cost of sales

Net income – precious metals

Depreciation and amortization

EBITDA - Precious metals

Average Sales Price/Ton

Net income (Loss)/Ton

Gross zeolite revenue

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March 31, 2022

March 31, 2021

Cost of sales

Operating expenses

Non-operating expenses

Net income (loss) - zeolite

EBITDA - zeolite

Gross revenue

Production costs

Operating expenses

Non-operating income (expenses)

Loss on abandonment of mineral properties

Depreciation,& amortization

Certain amounts shown in this table may not add exactly to total amounts due to rounding differences

PART I - FINANCIAL INFORMATION, CONTINUED:

Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

For the third quarter of 2021, we recognized a net loss of $99,232 on sales of $2,051,713 and other income and expense of $12,730 after depreciation and amortization of $223,196.

We reported a net loss of $993,240 in the third quarter of 2020 on sales of $1,007,231, after depreciation and amortization of $217,650.

For the first nine months of 2021, we recognized a net loss of $97,579 on sales of $5,580,562 and other income and expense of $588,299, after depreciation and amortization of $665,604.

We reported a net loss of $1,576,405 for the first nine months of 2020 on sales of $4,335,413, after depreciation and amortization of $667,298.

For the three and nine months ended September 30, 2021, EBITDA was a positive $123,964 and $568,025 compared to a negative $775,590 and $909,107 for the same periods in 2020.

For the three and nine months ended September 30, 2021, general and administrative expenses were $112,744 and $572,905 compared to $110,051 and $429,973 for the same periods of 2020.

Antimony has been the focus of the Company since its inception.

China, historically the sole supplier of lump antimony trisulfide and the dominate supplier of antimony in general, has held back the export of all antimony products leading to a marked increase in price in 2021.

The Madero crew continued to produce crude antimony oxide and some of this production was simultaneously diverted to crude metal.

While the price is high the Company has decided to convert some of its crude oxide to finished metal.

This move will eliminate shipping charges for the finished metal as the product will be shipped directly to the customer.

Two new furnaces in Thompson Falls are fully operational and started producing test batches of antimony trisulphide in early October.

Throughput nameplate capacity of antimony trisulphide will increase from 100 lbs per day to approximately 1100 lbs per day.

A second sample of antimony trisulfide lump has been prepared and sent for grinding and laboratory analysis.

If the quality meets specifications, the second sample will be sent to the Picatinny Arsenal of the U.

Department of Defense.

The Company continues to track developments at Ambri, Inc.

which has purchased the Company’s antimony metal during the year and may be a significant customer in the future.

For the three and nine month periods ended September 30, 2021, we sold 306,045 pounds and 827,131 pounds of antimony compared to 146,842 and 675,993 pounds for the three and nine month periods ended September 30, 2020.

The raw material received from our North American supplier increased by approximately 64,077 and 238,195 pounds for the three and nine month periods ended September 30, 2021, compared to the same periods for 2020.

We had an increase in raw material from Mexico of approximately 87,223 pounds for the three month period and a decrease of 86 pounds for the nine month period ended September 30, 2021, compared to the same periods for 2020.

PART I - FINANCIAL INFORMATION, CONTINUED:

Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

The average sales price of antimony during the three and nine month periods ended September 30, 2021 was $4.20 and $4.08 per pound compared to $3.25 and $3.71 during the same periods in 2020.

Precious Metals

Discussions have been initiated with Canadian and American gold and silver exploration companies, presently operating in Mexico, with a view towards a joint venture option agreement.

A potential joint venture would ideally have existing personnel with experience in exploration for gold and silver in Mexico and would initially fund and manage the initial exploration programs as part of their earn-in requirement.

Traditionally summer is a slow time for junior exploration companies and progress on negotiations has been slower than expected.

For the three and nine month periods ended September 30, 2021, revenue for precious metals from North American sources was $73,736 and $280,164 compared to $48,832 and $173,029 for the same periods of 2020.

Current and prior periods’ revenue from precious metals is as follows:

Precious Metal Sales

For the three months ended

September 30,

For the nine months ended

September 30,

Ounces Gold Shipped (Au)

Ounces Silver Shipped (Ag)

Total Revenues

Bear River Zeolite (BRZ)

On August 12, 2021 the bearings went out on the primary jaw crusher, essentially shutting down production.

The Company was able to source and purchase a refurbished jaw crusher, which shortened the down time that would have been required for repairs and dovetailed with the continuing program to upgrade the efficiency and reliability of the zeolite plant.

Installation of the new jaw crusher was completed and online by September 3, 2021.

Pit production test work utilizing a D-9 dozer to rip the in-situ zeolite instead of drilling and blasting continues.

New uses and increased awareness of several of the recognized uses of zeolite are becoming known to the public.

This is especially apparent in the advanced treatment requirements for mine discharge water and in the removal of naturally occurring radioactive isotopes in otherwise potable drinking water sources.

For the three and nine month periods ended September 30, 2021, BRZ sold 3,045 and 8,823 tons of zeolite compared to 2,500 and 8,354 tons in the same periods of 2020.

For the three and nine month periods ended September 30, 2021, BRZ realized a net loss of $12,867 and income of $194,364 after depreciation of $41,776 and $122,619 compared to a net income of $95,969 and $344,145 after depreciation of $42,015 and $140,395 for the same period of 2020.

BRZ realized an EBITDA for the three and nine month periods ended September 30, 2021 of $28,909 and $316,983 compared to $137,984 and $484,540 for the same periods in 2020.

PART I - FINANCIAL INFORMATION, CONTINUED:

Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

Financial Position

Financial Condition and Liquidity

September 30,

Non-operating income

Net income (loss) - antimony

Interest expense

Depreciation and amortization

LIQUIDITY AND FINANCIAL CONDITION

WORKING CAPITAL

March 31, 2022

December 31, 2021

Current assets

Current liabilities

Net Working Capital

$ (2,669,382 )

For the Nine Months Ended

September 30,

Cash used by operations

Working capital

For the three months ended

March 31, 2022

March 31, 2021

Cash flow provided (used) by operating activities

$ (2,449,854 )

Cash provided (used) by investing:

Cash used for capital outlay

Proceeds from redemption of certificates of deposit

Cash provided (used) by financing:

Net payments (to) from factor

Payments on notes payable to bank

Payments on Hillgrove advances payable

Proceeds from common stock issued, net

Proceeds from exercise of warrants

Principal paid on long-term debt

Payments on advances from related party

Proceeds from note payable-SBA

Change in checks issued and payable

Net change in cash, cash equivalents and restricted cash

Our net working capital increased by $23,909,538 from December 31, 2020 to September 30, 2021.

Our cash and cash equivalents increased by $20,898,398 during the same period.

We spent $616,479 for capital items, our debt decreased by $1,901,479 including $1,020,799 paid to Hillgrove, and our accounts payable and other accrued liabilities decreased by $1,895,860 including $1,120,730 paid for an export tax assessment.

During the first nine months of 2021, we raised approximately $23.3 million from sale of shares of common stock and approximately $1.8 million for the exercise of warrants.

We have estimated commitments and improvements of less than $100,000 to finish building and installing the precious metals leach circuits.

However, this funding will be implemented after its geological study of the Los Juarez property.

The Company plans to conduct a proper study of the Los Juarez property and its tailings at its flotation plant and pending the results of these studies decide how to proceed regarding a drill program and/or mining of the property.

The study may involve a partnership with a junior mining Company in order to assist US Antimony in the proper characterization of the deposit.

Should the deposit be of great value, the Company will likely move the flotation plant closer to the mine.

We believe that with our current cash balance, along with the future cash flow from operations and operating agreements, we have adequate liquid assets to meet these commitments and service our debt for the next twelve months.

PART I - FINANCIAL INFORMATION, CONTINUED:

Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

At September 30, 2021, the Company’s condensed consolidated financial statements show working capital of approximately $21.2 million and an accumulated deficit of approximately $32.7 million.

The Company continues to search for areas to reduce production costs, and expects improvement in cash flow for the remainder of the year from the sale of antimony and zeolite along with the increased price of antimony as the price of antimony has been increasing during the past nine months.

In the first half of 2021, the Company raised net proceeds of approximately $23.3 million from sale of shares of its common stock and approximately $1.8 million from the exercise of stock purchase warrants.

These funds have been and will continue to be used for general corporate purposes, working capital, hiring of additional labor, leverage for reducing legacy contracts, a geochemical, geological, and geophysical study of the Los Juarez property, additional managerial staff at USAC and BRZ headquarters, a revised website including measures aimed at increased visibility for advertising, more labor at its Mexican smelter, repair and improved infrastructure at the Mexican smelter, potential securement of additional antimony mine reserves in Mexico, and improvement of furnaces in Montana.

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 these condensed consolidated financial statements.

Cash flow used by investing activities

Cash flow provided (used) by financing activities

Net change in cash during period

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.

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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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-Q

Item 2. Management’s Discussion and Analysis