What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-10-05 compared with 2022-11-14 · 138 added, 274 removed, 96 unchanged (81% of the section changed)

5 unchanged sentences

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;

The Company’s properties being in the exploration stage;

The mineral operations being subject to government regulation;

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

Mineral exploration and development activities;

Mineral estimates;

The Company’s insurance coverage for operating risks;

The fluctuation of prices for precious and base metals, such as gold and silver;

The competitive industry of mineral exploration;

The title and rights in the Company’s mineral properties;

Environmental hazards;

The possible dilution of the Company’s common stock from additional financing activities;

Metallurgical and other processing problems;

Unexpected geological formations;

Global economic and political conditions;

Staffing in remote locations;

Changes in product costing;

Inflation on operational costs and profitability;

Competitive technology positions and operating interruptions (including, but not limited to, labor disputes, leaks, fires, flooding, landslides, power outages, explosions, unscheduled downtime, transportation interruptions, war and terrorist activities);

Global pandemics or civil unrest;

Mexican labor and cartel issues regarding safety and organized control over our properties;

The possible dilution of the Company’s common stock from additional financing activities;

Potential conflicts of interest with the Company’s management;

The Company’s 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.

If 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.

1 unchanged sentence

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.

As used in this Quarterly Report, the terms “we,” “us,” “our,” “United State Antimony Corporation,”, “US Antimony,” “USAC,” and the “Company”, mean United States Antimony Corporation, unless otherwise indicated.

All dollar amounts in this Quarterly Report are expressed in U.S.

2 unchanged sentences

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.

United States Antimony Corporation was incorporated in Montana in January 1970 to mine and produce antimony products.

In December 1983, the Company suspended antimony ore mining operations in the U.S.

but continued to produce antimony products using foreign sources of antimony ore.

In April 1998, the Company formed United States Antimony Mexico SA de CV (“USAMSA”) to smelt antimony in Mexico, and, in August 2005, the Company formed Antimonio de Mexico, S.

(“ADM”) to explore and develop antimony and silver deposits in Mexico.

The Company formed Bear River Zeolite Company (“BRZ”) in 2000 for the purpose of mining and producing zeolite in southeastern Idaho.

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.

In May 2012, our shares of common stock started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY.

Although we extract minerals from the Los Juarez, Mexico antimony property and the Bear River, Idaho zeolite property that we later process and sell, each of our mining properties is classified under Regulation S-K Item 1300 as an exploration stage property and the Company is classified as an exploration stage issuer because we have not prepared a technical report summary for any of our properties making a determination that the property contains proven mineral reserves or probable mineral reserves.

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’s Regulation S-K Subpart 1300.

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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The Burns Mining District of Sanders County, MT, which is approximately 15 miles west of Thompson Falls, MT, is the location of one of our antimony smelters and precious metals plants.

We hold 2 patented claims, meaning owned claims, where the plant is located.

Mining was suspended at this site in December 1983, because antimony ore could be purchased more economically from foreign sources;

currently, environmental restrictions preclude mining at this site.

Since 1983, we have relied on foreign sources for antimony ore, 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 also depend on foreign companies for antimony ore.

We expect to continue to receive antimony from our owned and leased properties in Mexico and from foreign suppliers in Canada, Mexico, and Central America.

In Montana, we produce antimony oxide, antimony metal, and precious metals.

Our antimony oxide is used in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper.

Our antimony oxide is also used as a color fastener in paint and as a phosphorescent agent in fluorescent light bulbs.

Our antimony metal is used in bearings, storage batteries and ordnance.

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.

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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 believe we are competitive both domestically and worldwide due to the following factors:

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 are the only U.S.

producer of antimony products.

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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.

We are vertically integrated, with antimony mines, mills, and a smelter in Mexico, along with our facilities in Montana and exclusive supply agreements for antimony ore with third-party suppliers.

Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States, with a current maximum processing capacity of approximately 32,600 pounds of antimony ore per day, and permitting to expand capacity up to 70%.

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 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.

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’s Regulation S-K Subpart 1300.

We own 100% of BRZ.

BRZ has a lease with Zeolite LLC (f/k/a 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.

The annual royalty payment is the greater of:

(1) the minimum annual royalty of $60,000, adjusted annually for the Consumer Price Index for all Urban Consumers, or (2) $11.00 per ton for the first ten thousand tons, $9.90 per ton for tons in excess of ten thousand up to twenty thousand, and $8.80 per ton for tons in excess of twenty thousand.

This Zeolite LLC lease also requires BRZ to pay $10,000 to the lessor on March 1 of each year during the term of the lease which ends March 1, 2025.

BRZ also pays other royalties on the sale of zeolite products.

In total, royalties vary from 8% to 13% of sales.

In addition, BRZ can surface mine and process zeolite on property owned by the U.S.

Bureau of Land Management that is adjacent to the Company’s Preston, Idaho property.

Also, given the mining difficulties in the winter season, BRZ constructed warehouses to store mined zeolite prior to the winter season to remain in production during the winter season.

“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:

BRZ zeolite is regarded as one of the best zeolites in the world due to its high cation exchange capacity (CEC) of approximately 180-220 meq/100 gr.

(which predicts plant nutrient availability and retention in soil), its hardness and high clinoptilolite content (which is an effective barrier to prevent problematic radionuclide movement), its absence of clay minerals, and its low sodium content.

Our zeolite is used in:

Soil Amendment and Fertilizer .

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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.

Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fishponds 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.

According to third-party research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours.

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 .

Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner, traction control, ammonia removal from mining waste, and carriers for insecticides, pesticides and herbicides.

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SELECTED FINANCIAL DATA.

Statement of Operations Information:

Results of Operations:

For the three months ended

September 30,

For the nine months ended

September 30,

Costs of revenues

March 31, 2023

March 31, 2022

Cost of revenues

Gross profit (loss)

Total operating expenses

4 unchanged sentences

Weighted average shares of common stock (diluted)

Income (loss) per share (basic and diluted)

Balance Sheet Information:

September 30,

March 31, 2023

December 31, 2022

Working capital

3 unchanged sentences

Stockholders’ equity

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Operational and financial performance

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 – sales of antimony

Gross profit - antimony

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 nine months ended September 30, 2022 and 2021 was as follows:

Nine months ended September 30,

Operational and financial performance by Segment:

Financial and operational performance of antimony for the three months ended March 31, 2023 and 2022 was as follows:

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 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.

Gross profit (loss)

Pounds of antimony sold

Average sales price per pound

Average cost per pound

Average gross profit (loss) per pound

During the three months ended March 31, 2023, total antimony revenue decreased $1,216,291, or 43%, compared to the three months ended March 31, 2022.

The decrease was primarily due to the lower sales price per pound, which was largely in line with the market rates for antimony, coupled with a decrease in the pounds of antimony sold in 2023 compared to 2022.

The volume decrease was primarily attributable to antimony ore supply shortages related to a third-party supplier due to the supplier’s machinery and equipment failures during the three months ended March 31, 2023.

These third-party machinery and equipment failures were fixed during the first quarter of 2023.

Gross profit for the three months ended March 31, 2023 was lower by $1,709,062 compared to the three months ended March 31, 2022 primarily due to the lower sales price per pound, the decrease in pounds sold, processing of antimony ore with less antimony percentage concentrate, and supplier and labor cost increases in 2023 compared to 2022.

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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

Gross profit - zeolite

Tons of zeolite sold

Average sales price/ton

Average cost/ton

Average gross profit/ton

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

Gross profit - zeolite

Financial and operational performance of zeolite for the three months ended March 31, 2023 and 2022 was as follows:

Tons of zeolite sold

Average sales price/ton

Average cost/ton

Average gross profit/ton

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 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 September 30, 2022 and 2021 was as follows:

Three months ended September 30,

Average sales price per ton

Average cost per pound ton

Average gross profit per ton

During the three months ended March 31, 2023, zeolite revenue decreased $191,949, or 28%, compared to the three months ended March 31, 2022.

The decrease was primarily due to production downtime during approximately two months of the three months ended March 31, 2023 due to a significant equipment failure, which was rectified prior to March 31, 2023, partially offset by an increase in the average sales price in 2023 compared to 2022.

The cone of BRZ’s main cone crusher failed and production was curtailed until a new cone could be sourced, delivered, and installed.

The new cone is equipped with performance monitoring features that are expected to enhance our preventive maintenance program, contribute to longer and more reliable run times, and enable a material increase in production.

The failure of the original cone curtailed production for approximately two months in the first quarter of 2023 until completion of the new cone acquisition and installation.

The curtailment of production resulted in lower revenue.

The new cone has operated significantly more reliably since installation was completed and production rates have increased.

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 September 30, 2022 and 2021 was as follows:

Nine months ended September 30,

Financial and operational performance of precious metals for the three months ended March 31, 2023 and 2022 was as follows:

Precious metals

Total revenue - precious metals

Gross profit 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 $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.

Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”)

We present EBTIDA, a non-GAAP financial measurement, to supplement other measures of our financial performance.

We believe that EBITDA is a useful measure of our operating performance because it eliminates non-cash expenses that do not reflect our underlying business performance.

We use this measure to facilitate a comparison of our operating performance on a consistent basis from period to period, to analyze the factors and trends affecting our business and to evaluate our performance.

We had EBITDA of ($579,056) for the three months ended March 31, 2023, compared to EBITDA of $1,009,384 for the three months ended March 31, 2022.

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

EBIDTA by segment for the three months ended March 31, 2023 and 2022 was as follows.

Antimony – Combined USA and Mexico

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross antimony revenue

Cost of sales

Gross profit – antimony

Operating expenses

Income from operations

Non-operating expenses

Net income (loss) – antimony

Interest expense

Depreciation and amortization

EBITDA – antimony

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross zeolite revenue

Cost of sales

Gross profit – zeolite

Operating expenses

Income from operations

Non-operating expenses

Net income – zeolite

Interest expense

Depreciation and amortization

EBITDA – zeolite

Page 25 of 33

Precious Metals

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 expenses

Net income – precious metals

Interest expense

Depreciation and amortization

EBITDA – precious metals

Three months ended September 30, 2022

Three months ended September 30, 2021

Gross revenue

March 31, 2023

March 31, 2022

Cost of sales

Gross profit – precious metals

Gross profit (loss)

Operating expenses

Income from operations

Non-operating income (expense)

Non-operating income

Net income (loss)

1 unchanged sentence

Depreciation and amortization

EBITDA – Company-wide

Page 26 of 33

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

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross antimony revenue

Cost of sales

Gross profit – antimony

Operating expenses

Income from operations

Non-operating expenses

Net income (loss) – antimony

Interest expense

Depreciation and amortization

EBITDA – antimony

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross zeolite revenue

March 31, 2023

March 31, 2022

Cost of sales

Gross profit – zeolite

Operating expenses

Income from operations

Non-operating expenses

Net income – zeolite

Non-operating expense

Net income (loss)

Interest expense

Depreciation and amortization

EBITDA – zeolite

Precious Metals

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross revenue precious metals

March 31, 2023

March 31, 2022

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 27 of 33

Nine months ended September 30, 2022

Nine months ended September 30, 2021

Gross revenue

March 31, 2023

March 31, 2022

Cost of sales

Gross profit – precious metals

Gross profit (loss)

Operating expenses

Income from operations

Non-operating income (expense)

Non-operating income

Net income (loss)

1 unchanged sentence

Depreciation and amortization

EBITDA – Company-wide

Page 19 of 23

LIQUIDITY AND FINANCIAL CONDITION

Capital Resources and Liquidity:

Working Capital

September 30,

March 31, 2023

December 31, 2022

Current assets

1 unchanged sentence

Working capital

For the nine months ended

September 30,

For the three months ended

March 31, 2023

March 31, 2022

Cash flow provided (used) by operating activities

1 unchanged sentence

Cash flow used by investing activities

(13,685,072 )

Cash flow provided (used) by financing activities

1 unchanged sentence

$ (3,699,314 )

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 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.

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.

As of March 31, 2023, the Company had cash and cash equivalents of $15,361,064.

Cash flow used by operating activities was $2,273,792 for the three months ended March 31, 2023, compared to cash flow provided by operating activities of $163,903 for the three months ended March 31, 2022.

The $2,437,695 decrease in cash flow from operating activities was attributable primarily to an increase in accounts receivable and inventories and payment of royalties and dividends, partially offset by an increase in accounts payable.

The majority of the increase in accounts receivable was due to product shipments towards the end of the first quarter of 2023, which were billed by the end of the first quarter of 2023 and collected after the first quarter of 2023.

Cash flow used by investing activities increased by $426,229 to $614,770 for the three months ended March 31, 2023, compared to $188,541 for the three months ended March 31, 2022.

This increase in the use of cash was primarily due to increased purchases of fixed assets at BRZ.

Cash flow used by financing activities increased by $806,695 to $810,752 for the three months ended March 31, 2023, compared to $4,057 for the three months ended March 31, 2022.

This increase in the use of cash was primarily due to the payment of dividends of $787,730 on January 25, 2023 to the holders of 1,692,672 shares of Series D Preferred stock related to the conversion of these shares into common stock.

We are planning to use our funds to make improvements to our operations with the goal of increasing production and decreasing costs and for revenue growth.

Also, we plan to continue to review the operations and financial results of each segment to make decisions that benefit the Company overall.

In the past, the Company has been successful in raising required capital from sale of common stock and, to a lesser extent, from debt issuance.

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

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

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-Q

Item 2. Management’s Discussion and Analysis