What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-14 compared with 2022-08-16 · 116 added, 91 removed, 254 unchanged (45% 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 18 of 33

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.

Page 17 of 32

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 ended December 31, 2021.

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.

We have no “proven reserves” or “probable reserves” of antimony, as these terms are defined by the Securities and Exchange Commission’s Regulation S-K Subpart 1300.

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 payment was adjusted to $10 per ton sold.

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

The current minimum annual royalty is $60,000.

5 unchanged sentences

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.

Ground-breaking for an additional warehouse to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop was completed in the three months ended September 30, 2022.

A vertical-shaft-impactor crusher was replaced by a hammer mill for crushing line number 1 in 2021 for increased production rate.

2 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.

We have no reserves nor resources of zeolite, as these terms are defined by the Securities and Exchange Commission’s Regulation S-K Subpart 1300.

“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.

14 unchanged sentences

The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor.

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Gas Separation .

5 unchanged sentences

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 .

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SELECTED FINANCIAL DATA.

Statement of Operations Information:

For the three months ended June 30,

For the six months ended June 30,

For the three months ended

September 30,

For the nine months ended

September 30,

Costs of revenues

2 unchanged sentences

Other income (expense)

NET INCOME (LOSS)

Weighted average shares of common stock (basic)

1 unchanged sentence

Balance Sheet Information:

September 30,

Working capital

5 unchanged sentences

Operational and financial performance

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

Three months ended June 30,

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

Three months ended September 30,

Antimony - Combined USA and Mexico

Total revenue -antimony

Total revenue – sales of antimony

Gross profit - antimony

3 unchanged sentences

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,

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

Nine months ended September 30,

Antimony - Combined USA and Mexico

5 unchanged sentences

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.

During the three months ended September 30, 2022, the average sales price for antimony increased $5.25 per pound compared to the three months ended September 30, 2021.

Gross profit per pound increased $1.72 per pound over the three months ended September 30, 2021.

The Company experienced a decrease in production in Q3 due to a temporary decrease in feed for two reasons.

First, there was a scheduled shut-down by our North American supplier that was followed by equipment failure at their facility.

In addition to this, the supplier reported having difficulties with labor supply in Q3.

Second, the decrease in supply corresponded with less sourcing in Mexico during the negotiation phase regarding our purchase option agreement.

The same thing that led to a meeting with the owners of the Wadley mine culminating in a purchase option agreement resulted in a bottleneck during this period, namely, the insistence that all purchased ore was done without invoicing and paid for in cash-an arrangement unacceptable to US Antimony.

Both of these problems have been corrected and we now have a record number of tons of ore at our smelter in Madero and are receiving the predicted number of tons of feed from our North American supplier.

However, there is a delay between the purchase of raw material and the processing and sale product and this delay has affected Q3 and will affect Q4.

The Company has recently received a ton of material for testing to produce antimony metal or oxide.

Preliminary results of this test-work are very encouraging.

This supplier has about 100 short tons of this material and our processing of it could result in a mutually beneficial arrangement.

During the decrease of supply the Company supplemented its feed in Montana from material processed at its smelter in Mexico.

During the nine months ended September 30, 2022, the average sales price for antimony increased $3.09 per pound compared to the nine months ended September 30, 2021.

Gross profit per pound increased $1.93 per pound over the three months ended September 30, 2021.

Page 22 of 33

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

Three months ended June 30,

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

Three months ended September 30,

Total revenue - zeolite

4 unchanged sentences

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,

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

Nine months ended September 30,

Total revenue - zeolite

4 unchanged sentences

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.

Sales volume of zeolite for the three months ended September 30, 2022 increased 219 tons over the three months ended September 30, 2021.

Average sales price per ton increased $15.27 for the same comparable period.

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.

Sales volume of zeolite for the nine months ended September 30, 2022 increased 1,513 tons over the nine months ended September 30, 2021.

Average sales price per ton increased $21.95 for the nine months ended September 30, 2022 over the comparable nine month period ending September 30, 2021.

The Company continues making significant improvements to its infrastructure at the Preston Facility.

We have purchased a newer dozer with dual ripper attachment (Caterpiller D8K) to aid in the mining as it is clear that our best method of mining is to rip and use blasting to supplement and not vice-versa.

Our old D8 is shot and was costing more to repair than it was worth.

We have hired a new supervisor and mechanic, Richard Lyon, who is a certified MSHA person and has been doing a spectacular job at the plant and in locating quality rolling stock to replace our aging fleet of equipment for both the mine and the mill.

We have purchased a 2,000-gallon water truck for road dust control in the summer months.

The shop building is finally complete along with a new 50’ x 100’ warehouse .

A new method of dust control is being implemented for testing first in our crusher room based on the pressurization of the room.

Depending on its success, the Company plans to implement the same system around all dust-sensitive areas.

The Company has located and is in the process of purchasing an excavator for the purpose of loading and removal of ripped or blasted rock and for general use at the mine.

A new road serving a new level was completed by our chief miner in q3, Allan Boot.

The Company placed a down-payment on a salt-shed for the storage of ore above the jaw crusher and plans to purchase and have built many more to increase our tonnage during the fall and winter months via the elimination of the use of tarps for keeping our stockpiles dry.

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Precious Metals

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,

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

Three months ended September 30,

Precious metals

3 unchanged sentences

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,

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

Nine months ended September 30,

Precious metals

3 unchanged sentences

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 $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.

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was $297,392 for the three months ended September 30, 2022, compared to EBITDA of $123,964 for the three months ended September 30, 2021.

The primary driver of the September 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 $111,962 for the three months ended September 30, 2021 to income from operations of $60,486 for the three months ended September 30, 2022.

Primary drivers include continued strong market prices for antimony and zeolite.

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was $1,894,533 for the nine months ended September 30, 2022, compared to EBITDA of $571,160 for the nine months ended September 30, 2021.

Increase in gross revenue of $4,044,049 and increased gross profit of 1,775,348 were the primary drivers behind the EBITDA results in 2022.

Income from operations improved from a company-wide loss of $111,962 for the three months ended September 30, 2021 to income from operations of $60,486 for the three months ended September 30, 2022.

Primary drivers include continued strong market prices for antimony and zeolite.

Page 24 of 33

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

Antimony – Combined USA and Mexico

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a %

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross antimony revenue

Cost of sales

Gross profit – antimony

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income - antimony

Income from operations

Non-operating expenses

Net income (loss) – antimony

Interest expense

1 unchanged sentence

EBITDA – antimony

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a %

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross zeolite revenue

2 unchanged sentences

Operating expenses

Income (loss) from operations

Income from operations

Non-operating expenses

5 unchanged sentences

Precious Metals

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a %

Gross precious metals revenue

Production costs

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross revenue precious metals

Cost of sales

Gross profit – precious metals

Operating expenses

Income from operations

Non-operating income

Net income - antimony

Non-operating expenses

Net income – precious metals

Interest expense

1 unchanged sentence

EBITDA – precious metals

Three months ended June 30, 2022

Three months ended June 30, 2021

Change as a % of Revenue

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross revenue

Cost of sales

Gross profit – precious metals

Operating expenses

Income (loss) from operations

Income from operations

Non-operating income (expense)

2 unchanged sentences

Depreciation and amortization

EBITDA – Company-wide

Page 26 of 33

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

EBIDTA schedules by business segment for the nine months ended September 30, 2022 and September 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 %

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross antimony revenue

Cost of sales

Gross profit – antimony

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Income from operations

Non-operating expenses

Net income (loss) – antimony

2 unchanged sentences

EBITDA – antimony

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross zeolite revenue

8 unchanged sentences

EBITDA – zeolite

Page 26 of 32

Precious Metals

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Gross precious metals revenue

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross revenue precious metals

Cost of sales

7 unchanged sentences

EBITDA – precious metals

Six months ended June 30, 2022

Six months ended June 30, 2021

Change as a %

Page 27 of 33

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross revenue

Cost of sales

Gross profit – precious metals

Operating expenses

Income (loss) from operations

Income from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

EBITDA – Company-wide

Page 28 of 33

1 unchanged sentence

WORKING CAPITAL

September 30,

Current assets

1 unchanged sentence

Working capital

For the six months ended

For the nine months ended

September 30,

Cash flow provided (used) by operating activities

5 unchanged sentences

$ (13,704,236 )

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.

As of September 30, 2022, the Company had cash and cash equivalents of hand of $7,716,093 which consisted of $7,658,810 in money market funds and deposit accounts along with $57,283 of restricted cash.

Net cash provided by operating activities was $22,916 for the nine-month period ending September 30, 2022, compared with cash used by operating activities of $2,477,864 during the nine-month period ended September 30, 2021.

The $2,500,780 change in cash from operating activities is attributable to ongoing strong revenue from antinomy sales which have more than doubled in the current year.

Net cash used by investing activities of $13,685,072 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.

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

The fund invests in primarily US Treasury Bonds and other fixed income funds.

Cash flow used by financing activities for the nine months ended September 30, 2022 was $42,080 compared to a cash flow provided by financing activities of $23,782,557 for the nine months ended September 30, 2021.

In 2021, the Company raised $23,342,180 from the issuance of common stock and warrants and $1,790,703 from the exercise of warrants by existing shareholders.

This capital raise and warrant exercise was not recurring during the nine months ended September 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

2 unchanged sentences

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

Page 28 of 32

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