What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-16 compared with 2022-05-16 · 163 added, 69 removed, 182 unchanged (56% of the section changed)

29 unchanged sentences

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.

Page 15 of 25

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.

1 unchanged sentence

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.

Page 17 of 32

The following statements may be forward-looking in nature and actual results may differ materially.

14 unchanged sentences

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.

We have no “proven reserves” or “probable reserves” of antimony.

Environmental restrictions preclude mining at this site.

28 unchanged sentences

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.

In 2010 the royalty payment was adjusted to $10 per ton sold.

The current minimum annual royalty is $60,000.

10 unchanged sentences

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.

We have no reserves nor resources of zeolite.

“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.

24 unchanged sentences

Statement of Operations Information:

For the three months ended

March 31, 2022

March 31, 2021

Cost of revenues

For the three months ended June 30,

For the six months ended June 30,

Costs of revenues

Total operating expenses

1 unchanged sentence

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

5 unchanged sentences

Operational and financial performance

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

Financial and operational metrics of antimony for the three months ended June 30, 2022 and 2021 are as follows:

Three months ended June 30,

Antimony - Combined USA and Mexico

1 unchanged sentence

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 lbs of antimony metal sold

Average sales price/lb metal

Average cost/lb metal

Average gross profit/lb metal

Financial and operational metrics of antimony for the six months ended June 30, 2022 and 2021 was as follows:

Six months ended June 30,

Antimony - Combined USA and Mexico

Total revenue -antimony

Gross profit - antimony

Total lbs of antimony metal sold

Average sales price/lb metal

Average cost/lb metal

Average gross profit/lb metal

During the three months ended June 30, 2022, the average sales price for antimony increased $2.60 per pound compared to the three months ended June 30, 2021.

Gross profit per pound increased $1.53 per pound over the three months ended June 30, 2021.

During the six months ended June 30, 2022, the average sales price for antimony increased $2.66 per pound compared to the six months ended June 30, 2021.

Gross profit per pound increased $1.89 per pound over the three months ended June 30, 2021.

Page 21 of 32

Financial and operational performance of zeolite for the three months ended June 30, 2022 and 2021 was as follows:

Three months ended June 30,

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.

Tons of zeolite sold

Average sales price/ton

Average cost/ton

Average gross profit/ton

Financial and operational performance of zeolite for the six months ended June 30, 2022 and 2021 was as follows:

Six months ended June 30,

Total revenue - zeolite

Gross profit - zeolite

Tons of zeolite sold

Average sales price/ton

Average cost/ton

Average gross profit/ton

Sales volume of zeolite for the three months ended June 30, 2022 increased 1,011 tons over the three months ended June 30, 2021.

Average sales price per ton increased $16.14 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.

Sales volume of zeolite for the six months ended June 30, 2022 increased 1,294 tons over the six months ended June 30, 2021.

Average sales price per ton increased $25.62 for the six months ended June 30, 2022 over the comparable six month period ending June 30, 2021.

Construction of the new 50’x100’ warehouse (for additional storage of product) and the 40’x60’ shop (for servicing equipment) continued.

The structures are substantially complete as of the date of this report and will be put into service in the third quarter of 2022.

During the three and six months ended June 30, 2022, the Company purchased a Cat 740 haul truck to replace aging equipment.

The Company also took delivery on a Cat 992 during the same period.

Page 22 of 32

Precious Metals

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

Financial and operational performance of precious metals for the three months ended June 30, 2022 and 2021 was as follows:

Three months ended June 30,

Precious metals

Total revenue - precious metals

Gross profit precious metals

Ounces sold - gold

Ounces sold - silver

Financial and operational performance of precious metals for the three months ended June 30, 2022 and 2021 was as follows:

Six months ended June 30,

Precious metals

Total revenue - precious metals

Gross profit precious metals

Ounces sold-gold

Ounces sold-silver

Page 23 of 32

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.

Page 19 of 25

EBIDTA schedules by business segment is presented as follows.

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was $595,360 for the three months ended June 30, 2022, compared to EBITDA of $557,965 for the three months ended June 30, 2021.

The primary driver of the June 30, 2021 EBITDA was a one-time non-recurring gain on forgiveness of CARES Act funds on a loan received in 2020 during the global pandemic and subsequent federal government economic stimulus program.

Income from operations improved from a company-wide loss of $232,190 for the three months ended June 30, 2021 to income from operations of $366,935 for the three months ended June 30, 2022.

As a percentage of sales, income from operations improve from a negative 10.2% in 2021 to 11.7% in 2022 for the three-month period.

Primary drivers include continued strong market prices for antimony and zeolite combined with relatively stable prices for cost of goods sold during the period.

EBIDTA schedules by business segment for the three months ended June 30, 2022 and June 30, 2021 is presented as follows.

Antimony - Combined USA and Mexico

March 31, 2022

March 31, 2021

Antimony revenue

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a %

Gross antimony revenue

Cost of sales

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income - antimony

Interest expense

Depreciation and amortization

EBITDA - antimony

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a %

Gross zeolite revenue

Cost of sales

Gross profit - zeolite

Operating expenses

Income (loss) from operations

Non-operating expenses

Net income - zeolite

Interest expense

Depreciation and amortization

EBITDA - zeolite

Page 24 of 32

Precious Metals

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a %

Gross precious metals revenue

Production costs

Operating expenses

Income from operations

Non-operating income

Net income - antimony

Interest expense

Depreciation and amortization

EBITDA - precious metals

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a % of Revenue

Gross revenue

Cost of sales

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

Page 25 of 32

EBIDTA schedules by business segment for the six months ended June 30, 2022 and June 30, 2021 is presented as follows.

Antimony - Combined USA and Mexico

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Gross antimony revenue

Cost of sales

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss) - antimony

2 unchanged sentences

EBITDA - antimony

March 31, 2022

March 31, 2021

Zeolite revenue

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Gross zeolite revenue

Cost of sales

Gross profit - zeolite

Operating expenses

Non-operating income

Income from operations

Non-operating expenses

Net income - zeolite

2 unchanged sentences

EBITDA - zeolite

Page 26 of 32

Precious Metals

March 31, 2022

March 31, 2021

Precious metals revenue

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Gross precious metals revenue

Cost of sales

Gross profit - precious metals

Operating expenses

Income from operations

Non-operating expenses

Net income - precious metals

Interest expense

Depreciation and amortization

EBITDA - precious metals

Page 20 of 25

March 31, 2022

March 31, 2021

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Gross revenue

Cost of sales

Operating expenses

Non-operating income

Net income (loss) - antimony

Income (loss) from operations

Non-operating income (expense)

Interest expense

Depreciation and amortization

Page 27 of 32

LIQUIDITY AND FINANCIAL CONDITION

WORKING CAPITAL

March 31, 2022

December 31, 2021

Current assets

1 unchanged sentence

Working capital

For the three months ended

March 31, 2022

March 31, 2021

For the six months ended

Cash flow provided (used) by operating activities

1 unchanged sentence

Cash flow used by investing activities

(13,775,850 )

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.

$ (13,050,579

As of June 30, 2022, the Company had cash and cash equivalents of hand of $8,369,750 which consisted of $8,312,469 in money market funds and deposit accounts along with $57,281 of restricted cash.

Net cash provided by operating activities was $745,038 for the six-month period ending June 30, 2022, compared with cash used by operating activities of $2,236,609 during the six-month period ended June 20, 2021.

The $2,981,647 change in cash from operating activities is attributable to a decrease in existing inventories coupled with continuing strong revenue from antinomy sales which have more than doubled in the current year.

Net cash used by investing activities of $13,775,850 included the purchase of a caterpillar for the Bear River Zeolite operation and ongoing construction of a new warehouse in Preston, ID.

The Company also invested $13,500,000 in a managed investment account, seeking to improve its return on investment versus maintaining deposits in a low-interest bearing money market account.

The managed investment account invests in primarily US Treasury Bonds and other fixed income funds.

Cash flow used by financing activities for the six months ended June 30, 2022 was $19,767 compared to a cash flow provided by financing activities of $23,841,057 for the six months ended June 30, 2021.

In 2021, the Company raised $25,132,883 from the issuance of common stock and warrants and the exercise of warrants by existing shareholders.

This capital raise was not recurring during the six months ended June 30, 2022.

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.

In the past, the Company has been successful in raising required capital from sale of common stock.

As a result of planned operations and potential equity sales and potential debt borrowings, management believes cash flows from operations and existing cash and investments are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

OFF-BALANCE SHEET ARRANGEMENTS

4 unchanged sentences

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