What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-15 compared with 2023-11-13 · 171 added, 247 removed, 124 unchanged (77% of the section changed)

1 unchanged sentence

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended.

Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future.

These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

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.

Readers should note that, in addition to the historical information contained herein, this Quarterly Report and the exhibits attached hereto contain “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements are based upon current expectations and beliefs concerning future developments and their potential effects on the Company including matters related to the Company's operations, pending contracts and future revenues, financial performance, profitability, ability to execute on its increased production and installation schedules for planned capital expenditures, and the size of forecasted deposits.

Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct.

The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties.

In addition, other factors that could cause actual results to differ materially are described in the Company's most recent filings, including Form 10-K, Form 10-Q, and Form 8-K with the Securities and Exchange Commission.

Any statement that expresses or involves discussions or descriptions 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 “believes”, “expects” or “does not expect”, “is expected”, “outlook”, “anticipates” or “does not anticipate”, “plans”, “estimates”, “forecast”, “project”, “pro forma”, or “intends”, or stating 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 numerous assumptions, risks and uncertainties, which change over time.

Forward-looking statements speak or describe only as of the date they are made and are subject to assumptions and uncertainties.

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;

Macroeconomic factors;

Continued operational losses;

The mineral operations being subject to government regulation;

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

Concentration of customers;

Increase in energy costs;

Mineral exploration and development activities;

1 unchanged sentence

The Company’s insurance coverage for operating risks;

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

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

The competitive industry of mineral exploration;

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

Cybersecurity and business disruptions;

Potential conflicts of interest with the Company’s management;

Not realizing the value of its USAMSA assets in Mexico upon sale or disposal;

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.

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.

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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.

You should read this report with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect and from our historical results.

This report contains estimates, projections and other information concerning our industry, our business and the markets for our products.

We obtained the industry, market and similar data set forth in this report from our own internal estimates and research and from industry research, publications, surveys and studies conducted by third parties, including governmental agencies.

Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information.

While we believe that the data we use from third parties is reliable, we have not separately verified this data.

You are cautioned not to give undue weight to any such information, projections and estimates.

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.

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dollars, unless otherwise indicated.

Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s condensed consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2022.

Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023.

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

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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.

In December 1983, the Company suspended its antimony 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.

In April 1998, the Company formed US Antimony de Mexico, S.A.

(“USAMSA”) to smelt antimony in Mexico, and, in August 2005, the Company formed Antimonio de Mexico, S.A.

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

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

Our principal business is the production and sale of antimony, precious metals, primarily gold and silver, and zeolite products.

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 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 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.

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;

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 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.

On March 11, 2024, the Company shut down the operations of USAMSA and announced its plans to sell its USAMSA subsidiary, operations, or assets.

See Note 1 and Note 11 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information.

The accounting requirements for reporting USAMSA as a discontinued operation were met in the first quarter of 2024.

Accordingly, the consolidated financial statements and notes to the consolidated financial statements reflect the results of USAMSA as a discontinued operation and are excluded from continuing operations and segment results for all periods presented.

Although we extract minerals from the Bear River Zeolite property in Idaho that we later process and sell, we have not yet prepared a technical report summary for the Bear River Zeolite property making a determination on the property’s mineral resources or mineral reserves.

However, the Company is in the process of beginning this initiative.

The Company is organized and managed by the following four segments, which represent our operating units:

United States antimony segment, Mexico antimony segment, zeolite segment, and precious metals segment.

See Note 11 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for the Mexico discontinued operations that are excluded from business segments.

United States Antimony Segment

Our United States antimony segment consists of an antimony plant in the Burns Mining District of Sanders County in Montana, which primarily produces antimony oxide, antimony metal, antimony trisulfide, and precious metals.

Antimony oxide is a fine, white powder.

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.

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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.

The precious metals processed at this plant in Montana are included in our precious metals segment.

We closed our antimony mine and mill in Montana in December 1983 because antimony ore could be purchased more economically from foreign sources.

Our mine and mill are approximately 1 mile from our current antimony smelter plant in Montana.

We hold one patented claim at the mine.

The environmental permitting process currently precludes mining at our mine in Montana.

As a result of the mine and mill closure, we have relied on sources outside the U.S.

for antimony ore since 1983, and there are risks of interruption in procurement from these sources and volatile changes in world market prices for these materials that are not controllable by us.

We anticipate continuing to receive antimony ore primarily from a supplier in Canada but will continue to explore Mexico and Central America for suppliers of antimony ore, assuming economics are profitable.

The acquisition of antimony ore is technically complex and a function of the country’s laws and regulations.

Our purchasing consequently requires flexibility regarding supply agreements and is tailored accordingly to specific suppliers.

We estimate (but have not independently confirmed) that our present share of the domestic and international markets 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 approximately 92% of the world antimony demand.

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 U.S.

producer of antimony products.

We believe we are competitive both domestically and world-wide due to the following:

We are the only U.S.

domestic producer of antimony products.

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.

We have a reputation for quality products delivered on a timely basis.

We have the only operating, permitted antimony smelter in the U.S.

Mexico Antimony Segment

The Company has two subsidiaries in Mexico, USAMSA and ADM.

On March 11, 2024, we shut down the operational activities of USAMSA, which primarily includes the following two antimony and precious metals processing plants in Mexico:

(1) the Madero smelter in Coahuila, and (2) the Puerto Blanco flotation mill, oxide circuit, and cyanide leach circuit in Guanajuato.

The Company intends to sell its USAMSA subsidiary, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.

We will maintain our existing Los Juarez mining claims and concessions in Cadereyta de Montes Queretaro, Mexico, which are included in our ADM subsidiary.

There are presently no active operations at Los Juarez.

Zeolite Segment

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.

Our zeolite segment consists of a mine and mill in Preston, Idaho, Bear River Zeolite, Inc.

(“BRZ”), which produces zeolite.

Our zeolite is used for various purposes including soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications.

BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for a royalty payment.

The annual royalty payment is the greater of:

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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.

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

On a combined basis, BRZ pays royalties ranging from 8% to 13% on the sale of zeolite products.

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 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 allow production to continue during the winter season.

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

“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.

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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 solutions.

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

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.

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Animal Nutrition .

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.

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, traction control, ammonia removal from mining waste, and carriers for insecticides, pesticides and herbicides.

Precious Metals Segment

Our precious metals segment consists of a precious metals recovery plant that is operated in conjunction with the antimony processing plant in Montana.

Precious metals are recovered in the leach circuit and settling pond after the ore goes through the crushing and flotation cycles.

When precious metals are contained in antimony source, the metallurgical techniques employed for the recovery of antimony are altered to also recover the precious metals.

The principal source of antimony concentrates bearing precious metals came from our Canadian supplier, who also purchases precious metals from the Company.

SELECTED FINANCIAL DATA.

Results of Operations :

Results of Operations of Continuing Operations:

Consolidated Statements of Operations Information of Continuing Operations:

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)

Net income (loss)

$ (1,644,528 )

$ (2,787,977 )

Weighted average shares of common stock (basic)

Weighted average shares of common stock (diluted)

Balance Sheet Information:

September 30,

Income (loss) from continuing operations

Total other income

Income tax expense

Net income from continuing operations

Balance Sheet Information of Continuing Operations:

Consolidated Balance Sheet Information, Excluding Discontinued Operations:

Working capital

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$ (39,418,619 )

Stockholders’ equity

Operational and financial performance by Segment:

Antimony Segment

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

Total stockholders’ equity

Operational and Financial Performance of Continuing Operations by Segment:

Financial and operational performance of antimony for the three months ended March 31, 2024 and 2023 was as follows:

For the three months ended

Antimony - Combined USA and Mexico

$ (1,012,262 )

March 31, 2024

March 31, 2023

Pounds of antimony sold

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Average gross profit per pound

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

$ (2,127,846 )

Antimony revenue increased $615,746, or 38%, during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to the increased pounds of antimony sold mainly from increased demand for antimony oxide and metal.

A portion of the increased demand for antimony metal is related to the processing of customer-owned antimony ore.

The sales price per pound related to the processing of customer-owned antimony ore is lower than the sales price per pound for our other antimony products.

Therefore, the increased revenue from the processing of customer-owned antimony ore for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was the primary reason for the decrease in our overall average sales price per pound.

Gross profit increased $866,433 for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to the increased pounds of antimony sold from increased demand for antimony oxide and metal.

The improved results related to average gross profit per pound in both periods presented relates to discontinuing our Mexico antimony operations, the results of which are not included in the continuing operations information presented but rather included in discontinued operations in Note 11 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report.

Financial and operational performance of zeolite for the three months ended March 31, 2024 and 2023 was as follows:

For the three months ended

March 31, 2024

March 31, 2023

Gross profit (loss)

$ (1,264,545 )

$ (3,140,114 )

Pounds of antimony sold

Average sales price per pound

Average cost per pound

Average gross profit per pound

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

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Average cost per ton

Average gross profit per ton

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

Average sales price per ton

Average cost per ton

Average gross profit per ton

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 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 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/

Average gross profit (loss) per ton

Zeolite revenue increased $120,912, or 25%, during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to:

The increased tons of zeolite sold mainly from increased demand and our ability to meet customer orders in a more timely fashion, and

The increased average sales price per ton mainly from a price increase that was effective towards the end of 2023.

Gross profit decreased by $322,260 in the three months end March 31, 2024, compared to the three months ended March 31, 2023, primarily due to increased maintenance costs and inefficient facility and labor-related costs in repairing older equipment and production downtime issues in the first quarter of 2024 versus 2023.

Precious Metals

Ounces sold - gold

Ounces sold - silver

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/

Financial and operational performance of precious metals for the three months ended March 31, 2024 and 2023 was as follows:

For the three months ended

Precious metals

Gross profit (loss)

Ounces sold - gold

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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 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

September 30, 2023

September 30, 2022

Cost of sales

$ (2,324,695 )

$ (1,342,068 )

Gross profit (loss)

Operating expenses

Income (loss) from operations

$ (1,417,466 )

Non-operating income (expense)

Net income (loss)

$ (1,234,731 )

Interest expense

Depreciation and amortization

$ (1,085,510 )

Three months ended

September 30, 2023

September 30, 2022

Cost of sales

$ (1,022,195 )

Gross profit (loss)

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

Precious Metals

Three months ended

September 30,

Cost of sales

Gross profit (loss)

Operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Interest expense

Depreciation and amortization

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

$ (1,393,392 )

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

In addition to our results determined in accordance with GAAP, we believe Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”), a non-GAAP financial measure, 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 and to analyze the factors and trends affecting our business.

EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP.

We believe that the use of EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors.

EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

Our EBITDA was $192,899 for the three months ended March 31, 2024, compared to EBITDA of $366,312 for the three months ended March 31, 2023.

EBIDTA of continuing operations by segment for the three months ended March 31, 2024 and 2023 was as follows:

For the three months ended

Antimony – Combined USA and Mexico

Nine months ended

September 30, 2023

September 30, 2022

March 31, 2024

March 31, 2023

Cost of sales

$ (6,109,011 )

$ (5,096,743 )

Gross profit (loss)

$ (1,264,545 )

Operating expenses

$ (1,821,200 )

$ (1,037,991 )

Total operating expenses

Income (loss) from operations

$ (3,085,745 )

Non-operating income (expense)

Net income (loss)

$ (2,520,892 )

Total other income (expense)

Income tax expense

Net income (loss) - antimony

Interest expense

Income tax expense

Depreciation and amortization

$ (2,075,028 )

Nine months ended

September 30, 2023

September 30, 2022

EBITDA - antimony

For the three months ended

March 31, 2024

March 31, 2023

Cost of sales

$ (2,136,473 )

$ (2,159,889 )

Gross profit (loss)

Operating expenses

Total operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Total other income (expense)

Income tax expense

Net income (loss) - zeolite

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - zeolite

For the three months ended

Precious Metals

Nine months ended

September 30, 2023

September 30, 2022

Cost of sales

Gross profit (loss)

Operating expenses

Total operating expenses

Income (loss) from operations

Non-operating income (expense)

Net income (loss)

Total other income (expense)

Net income (loss) - precious metals

Interest expense

Depreciation and amortization

Nine months ended

September 30, 2023

September 30, 2022

EBITDA - precious metals

For the three months ended

Cost of sales

$ (8,328,503 )

$ (7,339,499 )

Gross profit (loss)

$ (1,300,595 )

Operating expenses

$ (2,045,911 )

$ (1,085,715 )

Total operating expenses

Income (loss) from operations

$ (3,346,506 )

Non-operating income (expense)

Net income (loss)

$ (2,787,977 )

Total other income (expense)

Income tax expense

Net income (loss) - consolidated

Interest expense

Income tax expense

Depreciation and amortization

$ (2,065,050 )

EBITDA - consolidated

Capital Resources and Liquidity:

Working Capital:

September 30,

WORKING CAPITAL OF CONTINUING OPERATIONS

Current assets

1 unchanged sentence

Working capital

For the nine months ended

September 30,

Cash flow provided (used) by operating activities

$ (3,817,887 )

Cash flow used by investing activities

(13,685,072 )

Cash flow used by financing activities

Net decrease in cash and cash equivalents during the period

For the three months ended

CASH FLOWS OF CONTINUING OPERATIONS

Net cash provided by operating activities

$ (1,068,974 )

Net cash used by investing activities

Net cash used by financing activities

Net cash provided (used) by continuing operations

$ (2,380,928 )

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 $1,519,720 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.

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 $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 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.

Cash flow provided by operating activities improved by $1,419,199 for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to good working capital management with better collections on receivables, better inventory management, and maintaining a lower amount due on royalties.

Cash flow used by investing activities improved by $499,171 for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to less fixed asset purchases.

Cash flow used by financing activities improved by $789,479 for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to the payment of a dividend of $787,730 on January 25, 2023 to the holders of 1,692,672 shares of Series D Preferred stock.

Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically and through strategic acquisitions to increase shareholder value.

The Company is focused on generating positive cash flow to fund its mission.

One method of improving positive cash flow has been through our review of each segment’s operations and financial results to make informed decisions that benefit the Company overall.

An example of the results of our review relates to USAMSA.

Our USAMSA entity has generated cumulative losses since inception.

Therefore, we shut down the operations of our USAMSA entity on March 11, 2024 and intend to sell this entity, operations, or assets over the next year.

We have initiated an active search for buyers of USAMSA’s operations and/or existing assets.

Such sale would provide additional cash.

Another method of generating cash is through the sale or issuance of common stock, warrants, debt, and other investment vehicles, which the Company has been successful at executing in the past.

However, our ability to access capital or raise funds when needed is not assured and, if capital is not available when, and in the amounts and terms needed, or if capital is not available at all, the Company could be required to significantly curtail its operations, modify existing strategic plans, and/or dispose of certain operations or assets, which could materially harm our business, prospects, financial condition, and operating results.

We may use cash to acquire businesses.

The nature of these investments and transactions, however, makes it difficult to predict the amount and timing of such cash requirements.

As of March 31, 2024, the Company had cash and cash equivalents of $11,941,298.

We intend to fund our cash requirements with our cash and cash equivalents, cash generated from our operations, and capital raised from various investment vehicles and believe cash from these sources are sufficient to cover our requirements for the next 12 months.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Item 2. Management’s Discussion and Analysis