What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-10-17 compared with 2023-10-05 · 124 added, 53 removed, 181 unchanged (49% of the section changed)

26 unchanged sentences

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

Mexican and other taxing authorities positions and outcomes;

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

22 unchanged sentences

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.

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 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

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.

We hold 2 patented 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;

3 unchanged sentences

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.

In Montana, we primarily 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.

9 unchanged sentences

producer of antimony products.

Page 15 of 23

We can ship on short notice to domestic customers.

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%.

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 an additional 70%.

Page 15 of 25

Zeolite Division

7 unchanged sentences

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.

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

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.

19 unchanged sentences

Animal Nutrition .

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

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

Miscellaneous Uses .

3 unchanged sentences

Results of Operations:

For the three months ended

March 31, 2023

March 31, 2022

Cost of revenues

For the three months ended June 30,

For the six months ended June 30,

Costs of revenues

Gross profit (loss)

3 unchanged sentences

Net income (loss)

$ (1,143,449 )

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, 2023

December 31, 2022

Working capital

4 unchanged sentences

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:

Financial and operational performance of antimony for the three months ended June 30, 2023 and 2022 was as follows:

Three months ended June 30,

Percent Increase/

Antimony - Combined USA and Mexico

Pounds of antimony sold

Average sales price per pound

Average cost per pound

Average gross profit per pound

Financial and operational performance of antimony for the six months ended June 30, 2023 and 2022 was as follows:

Six months ended June 30,

Antimony - Combined USA and Mexico

$ (2,098,211 )

Gross profit (loss)

2 unchanged sentences

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.

Average gross profit per pound

Page 17 of 25

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

During the three months ended June 30, 2023, antimony revenue decreased $881,920, or 36%, compared to the three months ended June 30, 2022.

During the six months ended June 30, 2023, antimony revenue decreased $2,098,211, or 40%, compared to the six months ended June 30, 2022.

The decrease was primarily due to the lower sales price per pound, which was largely in line with the market rates for antimony, and the decrease in pounds sold, which was primarily due to antimony ore supply shortages during the first quarter of 2023 related to a third-party supplier with machinery and equipment failures as well as less demand coupled with increased competition for sales at the lower price per pound, in 2023 compared to 2022.

Gross profit for the six months ended June 30, 2023 was lower by $2,127,852 compared to the six months ended June 30, 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 vendor and labor cost increases in 2023 compared to 2022.

Financial and operational performance of zeolite for the three months ended June 30, 2023 and 2022 was as follows:

Three months ended June 30,

Tons of zeolite sold

Average sales price per ton

Average cost per pound ton

Average cost per 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.

Financial and operational performance of zeolite for the six months ended June 30, 2023 and 2022 was as follows:

Six months ended June 30,

Tons of zeolite sold

Average sales price per ton

Average cost per ton

Average gross profit per ton

During the three months ended June 30, 2023, zeolite revenue decreased $233,300, or 23%, compared to the three months ended June 30, 2022.

The decrease was primarily due to both the decrease in tons sold and a lower sales price per ton, which was largely due to a change in the mix of product sales, in 2023 compared to 2022.

During the six months ended June 30, 2023, zeolite revenue decreased $425,249, or 25%, compared to the six months ended June 30, 2022.

The decrease was primarily due to a lower sales price per ton, which was largely due to a change in the mix of product sales in 2023 compared to 2022, as well as less tons of zeolite sold due to a significant equipment failure in the first quarter of 2023.

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

1 unchanged sentence

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 curtailment of production resulted in lower revenue for the six months ended June 30, 2023.

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

Page 18 of 25

Precious Metals

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

Financial and operational performance of precious metals for the three months ended June 30, 2023 and 2022 was as follows:

Three months ended June 30,

Precious metals

1 unchanged sentence

Ounces sold - silver

Financial and operational performance of precious metals for the six months ended June 30, 2023 and 2022 was as follows:

Six months ended June 30,

Precious metals

Ounces sold-gold

Ounces sold-silver

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

2 unchanged sentences

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.

Page 18 of 23

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

We had EBITDA of ($671,658) for the six months ended June 30, 2023, compared to EBITDA of $1,604,745 for the six months ended June 30, 2022.

EBIDTA by segment for the three months ended June 30, 2023 and 2022 was as follows:

Antimony - Combined USA and Mexico

March 31, 2023

March 31, 2022

Three months ended June 30, 2023

Three months ended June 30, 2022

Cost of sales

1 unchanged sentence

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

Page 19 of 25

Three months ended June 30, 2023

Three months ended June 30, 2022

Cost of sales

Operating expenses

Income from operations

Non-operating expenses

Interest expense

Depreciation and amortization

Precious Metals

Three months ended June 30, 2023

Three months ended June 30, 2022

Cost of sales

Operating expenses

Income from operations

Non-operating income

Interest expense

Depreciation and amortization

Three months ended June 30, 2023

Three months ended June 30, 2022

Cost of sales

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

1 unchanged sentence

Depreciation and amortization

March 31, 2023

March 31, 2022

EBIDTA by segment for the six months ended June 30, 2023 and 2022 was as follows:

Antimony - Combined USA and Mexico

Six months ended June 30, 2023

Six months ended June 30, 2022

Cost of sales

Gross profit (loss)

Operating expenses

Non-operating expense

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

1 unchanged sentence

Depreciation and amortization

Page 20 of 25

Six months ended June 30, 2023

Six months ended June 30, 2022

Cost of sales

Operating expenses

Income (loss) from operations

Non-operating expenses

Net income (loss)

Interest expense

Depreciation and amortization

Precious Metals

March 31, 2023

March 31, 2022

Six months ended June 30, 2023

Six months ended June 30, 2022

Cost of sales

Operating expenses

Income from operations

Non-operating expenses

Interest expense

Depreciation and amortization

March 31, 2023

March 31, 2022

Six months ended June 30, 2023

Six months ended June 30, 2022

Cost of sales

1 unchanged sentence

Operating expenses

Income (loss) from operations

Non-operating income

2 unchanged sentences

Depreciation and amortization

Page 19 of 23

Capital Resources and Liquidity:

Working Capital

March 31, 2023

December 31, 2022

Current assets

1 unchanged sentence

Working capital

For the three months ended

March 31, 2023

March 31, 2022

Page 21 of 25

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

1 unchanged sentence

$ (5,373,451 )

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.

$ (13,050,579 )

As of June 30, 2023, the Company had cash and cash equivalents of $13,686,927.

Cash flow used by operating activities was $3,191,496 for the six months ended June 30, 2023, compared to cash flow provided by operating activities of $745,038 for the six months ended June 30, 2022.

The $3,936,534 decrease in cash flow from operating activities was attributable primarily to the differential between the net loss generated during 2023 compared to the net income generated during 2022, an increase in the use of cash in accounts receivable and inventories in 2023, and an increase in the payment of royalties in 2023.

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

The increase in inventories was primarily due to an increase in antimony ore inventory in Mexico in 2023, which can be used in future processing.

The increase in the payment of royalties was primarily due to the Company finalizing its estimates and paying a royalty obligation in 2023 that had been accumulating since 2016.

Cash flow used by investing activities was $1,347,856 for the six months ended June 30, 2023, compared to $13,775,850 for the six months ended June 30, 2022.

The use of cash in 2023 related to purchases of fixed assets primarily at BRZ, which included the purchase of a new cone for the cone crusher.

The use of cash in 2022 related primarily to investing cash in U.S.

treasury bonds and other fixed income funds to improve return on cash.

Cash flow used by financing activities increased by $814,332 to $834,099 for the three months ended March 31, 2023, compared to $19,767 for the three months ended March 31, 2022.

3 unchanged sentences

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.

As a result of planned operations and potential equity sales and 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

1 unchanged sentence

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