What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-12 compared with 2024-08-09 · 99 added, 102 removed, 295 unchanged (41% of the section changed)

20 unchanged sentences

The Company’s insurance coverage for operating risks;

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

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

The competitive industry of mineral exploration;

12 unchanged sentences

The positions and associated outcomes of Mexican and other taxing authorities;

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

Use of cash and cash equivalents ineffectively;

Cybersecurity and business disruptions;

Potential conflicts of interest with the Company’s management;

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

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

The Company’s common stock.

26 unchanged sentences

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

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

On March 11, 2024, the Company shut down the operations of USAMSA, which was part of the antimony segment, and announced its intent to sell its USAMSA subsidiary.

See Note 1 and Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information.

1 unchanged sentence

Accordingly, the condensed consolidated financial statements, Notes to Condensed Consolidated Financial Statements , and Management’s Discussion & Analysis and Plan of Operation reflect the results of USAMSA as a discontinued operation and are excluded from continuing operations and segment results for all periods presented.

In May 2024, the Company made the decision to sell the personal residence it owns in Idaho that was previously used for management located near its BRZ operation (“BRZ Home”).

The Company also signed an agreement with a realtor in May 2024 to assist with the sale of its BRZ Home.

An active search for a buyer began after signing the agreement with the realtor and the Company expects the home to be sold sometime over the next year.

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

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 has completed test hole drilling and is in the process of preparing a technical reserve report for the Bear River Zeolite property.

Although we extract minerals from the Bear River Zeolite property located 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 has completed test hole drilling and has retained a qualified third-party expert who is in the process of preparing a technical reserve report for the Bear River Zeolite property.

We strive to achieve excellence in mine safety and health performance and work with government agencies to ensure compliance with environmental regulations and health and safety standards.

3 unchanged sentences

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.

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

Antimony oxide is a fine, white powder.

6 unchanged sentences

Our mine and mill are less than one mile from our current antimony smelter plant in Montana.

We hold one patented claim at the mine.

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

We hold one patented claim at this mine.

We also own mining claims in Alaska and Ontario, Canada.

However, currently, the Company has no active operations in Alaska or Ontario, Canada.

As a result of the mine and mill closure in Montana, 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 also continue to research other domestic and non-domestic sources for antimony ore that are economically profitable.

We anticipate continuing to receive antimony ore primarily from an existing supplier in Canada.

In addition, we continue to actively research other domestic and non-domestic sources for antimony ore that are economically 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.

Our purchasing consequently requires flexibility regarding supply agreements, credit support, etc.

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.

3 unchanged sentences

We are the only U.S.

domestic producer of antimony products.

We can ship on short notice to domestic customers.

domestic processor of antimony products.

We can process ore quickly and have minimal shipping time to domestic customers.

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

5 unchanged sentences

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

See Note 1 and Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information.

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

1 unchanged sentence

Zeolite Segment

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

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

(“BRZ”), which produces zeolite.

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 after obtaining required permits.

Bureau of Land Management that is located 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.

2 unchanged sentences

(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:

Our zeolite has been used in:

Soil Amendment and Fertilizer .

20 unchanged sentences

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 these precious metals back from the Company.

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

The sales of this product are intermittent throughout the year.

SELECTED FINANCIAL DATA.

Results of Operations of Continuing Operations:

Consolidated Statements of Operations Information of Continuing Operations:

Consolidated Statements of Operations Information:

For the three months ended

For the six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

For the nine months ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Costs of revenues

Total operating expenses

Loss from operations

Loss from continuing operations

Total other income

1 unchanged sentence

Income (loss) from continuing operations

Balance Sheet Information:

Consolidated Balance Sheet Information:

June 30, 2024

September 30, 2024

December 31, 2023

5 unchanged sentences

Operational and Financial Performance of Continuing Operations by Segment:

Financial and operational performance of antimony for the three months ended June 30, 2024 and 2023 was as follows:

Financial and operational performance of antimony for the three months ended September 30, 2024 and 2023 was as follows:

For the three months ended

Antimony - Continuing Operations

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

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, 2024 and 2023 was as follows:

For the six months ended

Financial and operational performance of antimony for the nine months ended September 30, 2024 and 2023 was as follows:

For the nine months ended

Antimony - Continuing Operations

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Pounds of antimony sold

2 unchanged sentences

Average gross profit per pound

Antimony revenue increased $1,078,819, or 36%, for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to higher volume from increased demand for antimony oxide and metal.

Antimony revenue increased $1,025,726, or 23.5%, for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to higher volume from increased demand for antimony oxide and metal.

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

The sales price per pound related to the processing of customer-owned antimony ore was lower than the sales price per pound for our other antimony products, which was the primary reason for the decrease in our average sales price per pound during the six months ended June 30, 2024, as compared to the prior year.

Gross profit increased $1,585,030 for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to improved cost efficiencies with higher volume and the prior year sale of purchased finished antimony trioxide at a lower gross margin.

Also, the improved results related to average gross profit per pound in the six-month periods presented related to discontinuing our Mexico antimony operations, the results of which are not included in the continuing operations information presented but rather in discontinued operations, which is presented 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 June 30, 2024 and 2023 was as follows:

The sales price per pound related to the processing of customer-owned antimony ore was lower than the sales price per pound for our other antimony products, which was the primary reason for the decrease in our average sales price per pound during the nine months ended September 30, 2024, as compared to the prior year.

Gross profit increased $1,210,979 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to improved cost efficiencies with higher volume and the prior year sale of purchased finished antimony trioxide at a lower gross margin.

Also, the improved results related to average gross profit per pound in both nine-month periods presented were due to discontinuing our Mexico antimony operations, the results of which are not included in the continuing operations information presented in Management’s Discussion and Analysis and Plan of Operation, but rather in discontinued operations, which is presented in Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report.

Financial and operational performance of zeolite for the three months ended September 30, 2024 and 2023 was as follows:

For the three months ended

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Gross profit (loss)

Tons of zeolite sold

1 unchanged sentence

Average cost per ton

Average gross profit per ton

Financial and operational performance of zeolite for the six months ended June 30, 2024 and 2023 was as follows:

For the six months ended

June 30, 2024

June 30, 2023

Average gross profit (loss) per ton

Financial and operational performance of zeolite for the nine months ended September 30, 2024 and 2023 was as follows:

For the nine months ended

September 30, 2024

September 30, 2023

Gross profit (loss)

3 unchanged sentences

Average gross profit (loss) per ton

Zeolite revenue increased $328,207 or 26%, for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to:

Zeolite revenue increased $339,329, or 17.5%, for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to:

The increased average sales price per ton, which was mainly related to a price increase that was effective towards the end of 2023, and

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

Gross profit decreased by $397,070 for the six months end June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to increased maintenance expense and inefficient facility and labor-related expenses in repairing older equipment, especially during production downtime, in the first six months of 2024 versus 2023.

Gross profit decreased by $255,092 for the nine months end September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to increased costs for maintenance, backup equipment leases, and related expenses in repairing older machinery and equipment, especially during production downtime.

Precious Metals

Financial and operational performance of precious metals for the three months ended June 30, 2024 and 2023 was as follows:

Financial and operational performance of precious metals for the three months ended September 30, 2024 and 2023 was as follows:

For the three months ended

Precious metals

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Gross profit (loss)

1 unchanged sentence

Ounces sold - silver

Financial and operational performance of precious metals for the six months ended June 30, 2024 and 2023 was as follows:

For the six months ended

Financial and operational performance of precious metals for the nine months ended September 30, 2024 and 2023 was as follows:

For the nine months ended

Precious metals

June 30, 2024

June 30, 2023

Gross profit (loss)

September 30, 2024

September 30, 2023

Ounces sold - gold

6 unchanged sentences

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

Our EBITDA from continuing operations was $253,122 for the six months ended June 30, 2024, as compared to $431,257 for the six months ended June 30, 2023.

EBIDTA from continuing operations by segment for the three months ended June 30, 2024 and 2023 was as follows:

Our EBITDA from continuing operations was a loss of ($306,853) for the nine months ended September 30, 2024, as compared to $342,071 for the nine months ended September 30, 2023.

EBIDTA from continuing operations by segment for the three months ended September 30, 2024 and 2023 was as follows:

For the three months ended

Antimony – Combined USA and Mexico

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

8 unchanged sentences

For the three months ended

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Cost of sales

11 unchanged sentences

Precious Metals

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Cost of sales

8 unchanged sentences

For the three months ended

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

7 unchanged sentences

EBITDA - consolidated

EBIDTA from continuing operations by segment for the six months ended June 30, 2024 and 2023 was as follows:

For the six months ended

Antimony – Combined USA and Mexico

June 30, 2024

June 30, 2023

EBIDTA from continuing operations by segment for the nine months ended September 30, 2024 and 2023 was as follows:

For the nine months ended

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

7 unchanged sentences

EBITDA - antimony

For the six months ended

June 30, 2024

June 30, 2023

For the nine months ended

September 30, 2024

September 30, 2023

Cost of sales

9 unchanged sentences

EBITDA - zeolite

For the six months ended

For the nine months ended

Precious Metals

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

5 unchanged sentences

EBITDA - precious metals

For the six months ended

June 30, 2024

June 30, 2023

For the nine months ended

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

9 unchanged sentences

Working Capital of Continuing Operations:

June 30, 2024

September 30, 2024

December 31, 2023

2 unchanged sentences

Working capital

For the six months ended

For the nine months ended

CASH FLOWS OF CONTINUING OPERATIONS

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Net cash provided (used) by operating activities

$ (1,168,428 )

Net cash used by investing activities

Net cash provided (used) by investing activities

Net cash used by financing activities

1 unchanged sentence

$ (2,890,909)

Cash flow provided by operating activities improved by $1,604,091 for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to good working capital management, which includes better inventory management, increased payments of compensation in stock, and maintaining a lower amount due on royalties.

Cash flow used by investing activities improved by $1,095,495 for the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to less fixed asset purchases.

Cash flow used by financing activities improved by $795,029 for the six months ended June 30, 2024, as compared to the six months ended June 30, 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.

Cash flow provided by operating activities improved by $1,579,764 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to good working capital management, which includes improved collections on receivables, better management of vendor payments, increased payments of compensation in stock, and maintaining a lower amount due on royalties.

The increased vendor payables balance at September 30, 2024 as compared to December 31, 2023 was mainly due to a vendor that had extensive deliveries later in the third quarter of 2024.

Cash flow used by investing activities improved by $1,479,106 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to less fixed asset purchases and the sale of our personal residence.

See Note 6 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information.

Cash flow used by financing activities improved by $786,640 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 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 and partnerships to increase shareholder value.

3 unchanged sentences

Our USAMSA subsidiary has generated cumulative losses since inception.

Therefore, we shut down the operations of USAMSA on March 11, 2024 and intend to sell this subsidiary 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.

Therefore, we shut down the operations of USAMSA on March 11, 2024.

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.

The Company could also receive funds from the U.S.

Government for initiatives related to antimony, zeolite, and other minerals.

However, there is no assurance that U.S.

Government funding will be able accessible to the Company.

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 June 30, 2024, the Company had cash and cash equivalents of $12,391,431.

As of September 30, 2024, the Company had cash and cash equivalents of $12,969,132.

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.

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