What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-11-13 compared with 2023-10-17 · 152 added, 86 removed, 219 unchanged (52% 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 positions and associated outcomes of Mexican and other taxing authorities;

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

7 unchanged sentences

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.

Page 14 of 25

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.

13 unchanged sentences

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

Antimony Segment

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.

1 unchanged sentence

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.

currently, the environmental permitting process precludes any 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 primarily produce antimony oxide, antimony metal, and precious metals.

We anticipate continuing to receive antimony from our owned and leased properties in Mexico and from foreign suppliers in Canada, Mexico, and Central America, assuming economics are profitable.

In Montana, we primarily produce antimony oxide, antimony metal, antimony trisulfide, 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.

1 unchanged sentence

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

Our antimony trisulfide is used as a primer in ammunition.

We estimate (but have not independently confirmed) that our present share of the domestic market and international market for antimony oxide products is approximately 4% and less than 1%, respectively.

We are the only significant U.S.

producer of antimony products, while China supplies 92% of the world antimony demand.

producer of antimony products, while China supplies approximately 92% of the world antimony demand.

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

4 unchanged sentences

We can ship on short notice to domestic customers.

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

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.

Zeolite Segment

We own 100% of BRZ.

7 unchanged sentences

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.

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

10 unchanged sentences

Nuclear Waste and Other Environmental Cleanup .

Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution.

Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solutions.

Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.

6 unchanged sentences

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

A large number of cattle are currently being fed zeolite in feed lots located in the United States.

Miscellaneous Uses .

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.

Page 16 of 25

SELECTED FINANCIAL DATA.

Results of Operations :

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

Gross profit (loss)

$ (1,061,072 )

$ (1,300,595 )

Total operating expenses

Income (loss) from operations

$ (1,824,561 )

$ (3,346,506 )

Other income (expense)

1 unchanged sentence

$ (1,644,528 )

$ (2,787,977 )

Weighted average shares of common stock (basic)

1 unchanged sentence

Balance Sheet Information:

September 30,

Working capital

4 unchanged sentences

Operational and financial performance by Segment:

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 Segment

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

Antimony - Combined USA and Mexico

$ (1,012,262 )

Pounds of antimony sold

2 unchanged sentences

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,

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

Nine months ended

September 30,

Percent Increase/

Antimony - Combined USA and Mexico

1 unchanged sentence

Gross profit (loss)

$ (1,264,545 )

$ (3,140,114 )

Pounds of antimony sold

2 unchanged sentences

Average gross profit per pound

Page 17 of 25

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,

During the three and nine months ended September 30, 2023, antimony revenue decreased $29,635 and $2,127,846, respectively, or 2% and 31%, respectively, compared to the three and nine months ended September 30, 2022.

The decrease was primarily due to the lower sales price per pound, which was consistent with the decline in market rates for antimony.

Gross profit for the three and nine months ended September 30, 2023 was lower by $1,012,262 and $3,140,114, respectively, compared to the three and nine months ended September 30, 2022, primarily due to the lower sales price per pound, which was consistent with the decline in market rates for antimony, and processing of antimony ore with less antimony percentage concentrate.

Zeolite Segment

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

Three months ended

September 30,

Percent Increase/

Tons of zeolite sold

2 unchanged sentences

Average gross profit per ton

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

Six months ended June 30,

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

Nine months ended

September 30,

Percent Increase/

Tons of zeolite sold

2 unchanged sentences

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.

During the three and nine months ended September 30, 2023, zeolite revenue decreased $120,858 and $546,107, respectively, or 15% and 22%, respectively, compared to the three and nine months ended September 30, 2022.

The decrease was primarily due to the decrease in tons sold, which was primarily due to a significant equipment failure for approximately 14 weeks during the nine months ended September 30, 2023.

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 new cone is equipped with performance monitoring features that are expected to eventually 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 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 June 30, 2023 and 2022 was as follows:

Three months ended June 30,

The curtailment of production resulted in lower revenue for the nine months ended September 30, 2023.

During the three and nine months ended September 30, 2023, zeolite gross profit decreased $479,728 and $522,691, respectively, compared to the three and nine months ended September 30, 2022.

The decrease was primarily due to increased maintenance costs and equipment and facility-related labor costs during production downtime during the nine months ended September 30, 2023.

Precious Metals Segment

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

Three months ended

September 30,

Percent Increase/

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,

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

Nine months ended

September 30,

Percent Increase/

Precious metals

5 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 ($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:

We had an EBITDA loss of ($2,065,050) for the nine months ended September 30, 2023, compared to positive EBITDA of $1,894,533 for the nine months ended September 30, 2022.

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

Antimony - Combined USA and Mexico

Three months ended June 30, 2023

Three months ended June 30, 2022

Three months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (2,324,695 )

$ (1,342,068 )

Gross profit (loss)

1 unchanged sentence

Income (loss) from operations

$ (1,417,466 )

Non-operating income (expense)

Net income (loss)

$ (1,234,731 )

Interest expense

Depreciation and amortization

Page 19 of 25

Three months ended June 30, 2023

Three months ended June 30, 2022

$ (1,085,510 )

Three months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (1,022,195 )

Gross profit (loss)

Operating expenses

Income from operations

Non-operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

1 unchanged sentence

Precious Metals

Three months ended June 30, 2023

Three months ended June 30, 2022

Three months ended

September 30,

Cost of sales

Gross profit (loss)

Operating expenses

Income from operations

Non-operating income

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

Three months ended June 30, 2023

Three months ended June 30, 2022

Three months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (3,374,563 )

$ (2,033,066 )

Gross profit (loss)

$ (1,061,072 )

Operating expenses

Income (loss) from operations

$ (1,824,561 )

Non-operating income (expense)

Net income (loss)

$ (1,644,528 )

Interest expense

Depreciation and amortization

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

$ (1,393,392 )

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

Antimony - Combined USA and Mexico

Six months ended June 30, 2023

Six months ended June 30, 2022

Nine months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (6,109,011 )

$ (5,096,743 )

Gross profit (loss)

$ (1,264,545 )

Operating expenses

$ (1,821,200 )

$ (1,037,991 )

Income (loss) from operations

$ (3,085,745 )

Non-operating income (expense)

Net income (loss)

$ (2,520,892 )

Interest expense

Depreciation and amortization

Page 20 of 25

Six months ended June 30, 2023

Six months ended June 30, 2022

$ (2,075,028 )

Nine months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (2,136,473 )

$ (2,159,889 )

Gross profit (loss)

Operating expenses

Income (loss) from operations

Non-operating expenses

Non-operating income (expense)

Net income (loss)

2 unchanged sentences

Precious Metals

Six months ended June 30, 2023

Six months ended June 30, 2022

Nine months ended

September 30, 2023

September 30, 2022

Cost of sales

Gross profit (loss)

Operating expenses

Income from operations

Non-operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

Six months ended June 30, 2023

Six months ended June 30, 2022

Nine months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (8,328,503 )

$ (7,339,499 )

Gross profit (loss)

$ (1,300,595 )

Operating expenses

$ (2,045,911 )

$ (1,085,715 )

Income (loss) from operations

Non-operating income

$ (3,346,506 )

Non-operating income (expense)

Net income (loss)

$ (2,787,977 )

Interest expense

Depreciation and amortization

$ (2,065,050 )

Capital Resources and Liquidity:

Working Capital:

September 30,

Current assets

1 unchanged sentence

Working capital

Page 21 of 25

For the six months ended

For the nine months ended

September 30,

Cash flow provided (used) by operating activities

2 unchanged sentences

(13,685,072 )

Cash flow provided (used) by financing activities

Net change in cash during period

Cash flow used by financing activities

Net decrease in cash and cash equivalents during the period

$ (6,195,386 )

$ (13,704,236 )

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.

As of September 30, 2023, the Company had cash and cash equivalents of $12,864,992.

Cash flow used by operating activities was $3,817,887 for the nine months ended September 30, 2023, compared to cash flow provided by operating activities of $22,916 for the nine months ended September 30, 2022.

The $3,840,803 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 inventories in 2023, and an increase in the payment of royalties in 2023.

The increase in the use of cash 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.

Cash flow used by investing activities was $1,519,720 for the nine months ended September 30, 2023, compared to $13,685,072 for the nine months ended September 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.

1 unchanged sentence

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.

Cash flow used by financing activities increased by $815,699 to $857,779 for the nine months ended September 30, 2023, compared to $42,080 for the nine months ended September 30, 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.

We are planning to continue using 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 in order to make informed decisions that benefit the Company overall.

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

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.

2 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