What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-08 compared with 2024-11-12 · 95 added, 279 removed, 115 unchanged (76% of the section changed)

2 unchanged sentences

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.

Such forward-looking statements are based upon current expectations and beliefs concerning future developments and their potential effects on United States Antimony Corporation (“US Antimony,” “USAC,” and the “Company”) including matters related to the Company’s operations, pending contracts and future revenues, financial performance, and 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.

Any statements that express or involve 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 “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 speak 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:

1 unchanged sentence

Macroeconomic factors;

The imposition of new tariffs, changes in trade policy or agreements, or the escalation of trade tensions between the United States and other countries or regions could have a material adverse impact on our business;

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;

Negative consequences related to mineral operations being subject to existing and new government regulations within and outside the United States;

T he Company’s ability to obtain additional capital to develop the Company’s resources, if any;

Concentration of customers;

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The Company’s insurance coverage for operating risks;

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

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

The competitive industry of mineral exploration;

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

Global pandemics or civil unrest;

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

Global pandemics, natural disasters, or civil unrest;

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

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;

Ineffective use of cash and cash equivalents, including proceeds from stock offerings;

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 and in the Company’s filings, including Form 10-K, Form 10-Q, and Form 8-K, with the Securities and Exchange Commission.

Mining exploration, development, and production not being economically viable;

Processing and selling ore from new suppliers and internal sources not being economically viable;

Fluctuations in the Company’s common stock.

This list is not an exhaustive list 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 of Financial Condition and Results of Operations” 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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United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

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.

The Company advises readers to carefully review this Form 10-Q, the exhibits hereto, and the reports and documents incorporated by reference herein and filed with the Securities and Exchange Commission (the “SEC”).

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.

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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.

As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by forward-looking statements.

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

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

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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, 2024.

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

DESCRIPTION OF BUSINESS

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

United States Antimony Corporation’s principal business is the production and sale of antimony, precious metals, and zeolite products.

The Company was incorporated in Montana in January 1970 to mine and produce antimony products.

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

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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.

(“USAMSA”) to produce antimony products 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, and zeolite products.

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

In 2024, the Company leased a metals concentration facility with two flotation circuits located in Philipsburg, Montana.

In 2024 and 2025, the Company acquired mining claims and leases in Alaska and Ontario, Canada, which necessitated forming three entities related to the Alaska mining claims, Great Land Minerals, LLC, Denali Minerals, LLC, and Alaska Antimony LLC, and one entity related to the Ontario mining claims and leases, UAMY Cobalt Corporation.

We expect these mining claims and leases will expand the Company’s operations and product offerings.

The Company has no active operations yet in Alaska or Ontario, Canada, nor at its ADM subsidiary, nor has any material been processed yet through the metals concentration facility located in Philipsburg, Montana.

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, 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.

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

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.

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.

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 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for the Mexico discontinued operations that are excluded from continuing operations and segment results for all periods presented.

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 processes antimony ore primarily into 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.

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

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

Our antimony trisulfide is used as a primer in ammunition.

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 less than one mile from our current antimony smelter plant in Montana.

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 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, credit support, etc.

and is tailored accordingly to specific suppliers.

The Company has two reportable segments:

antimony and zeolite.

Antimony Segment

Our antimony segment consists of:

Our facility located in the Burns Mining District of Sanders County in Montana that processes ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals, and

Our two facilities in our USAMSA subsidiary located in Mexico that process ore primarily into antimony metal and a lower grade of antimony oxide.

Antimony is a mineral that is included in many products that are used every day.

USAC can provide this mineral in a form that can be used in these products.

Antimony is used in many products as a fire-retardant and a primer and is on the Critical Minerals List of the U.S.

Antimony mined from the ground, which is called antimony ore or ore, is typically not salable as a finished product primarily due to impurities in the ore, the ore size not being compatible with its intended use, and the percentage of antimony contained in the ore being too low.

We process ore to remove impurities, refine the size, and increase the percentage of antimony contained in the ore to approximately 71.4% to make the finished product called antimony trisulfide, to approximately 83% to make the finished product called antimony oxide, and to approximately 99.65% to make the finished product called antimony metal.

Antimony trisulfide, oxide, and metal can be sold as finished products to companies in many industries as well as government agencies.

Antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs.

Antimony metal is used in bearings, storage batteries, and ordnance.

Antimony trisulfide is used as a primer in ammunition.

The ore we purchase for our facility located in Montana contains antimony, gold, and silver.

Our Montana facility processes this ore and sells the gold and silver to the company who sold us this ore, which represents all our precious metals sales, and sells the antimony to other companies in various industries.

Our Mexico facilities have been processing ore primarily into antimony metal.

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.

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

We believe we are competitive due to the following:

We are the only U.S.

domestic processor of antimony products.

domestic operating, permitted 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.

We have the only operating, permitted antimony smelter located 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 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.

There are presently no active operations at Los Juarez.

Our smelter in Coahuila, Mexico is the largest operating smelter for the processing of antimony products in Mexico.

Zeolite Segment

Our zeolite segment consists of a mine and processing plant located 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:

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

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

BRZ also pays 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.

Our zeolite segment includes our vertically integrated Bear River Zeolite (“BRZ”) facility located in Preston, Idaho that mines, processes, and sells zeolite.

Zeolite is a mineral that is included in many products that are used every day.

BRZ can provide these minerals in a form that can be used in these products.

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

Although we extract minerals from the BRZ property located in Idaho that we later process and sell, we have not yet prepared a technical report summary for the BRZ 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 BRZ 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.

BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on the property in Preston, Idaho, in exchange for an annual payment and a royalty payment, which is based on the amount of zeolite shipped from the leased property (“BRZ Lease”).

The BRZ Lease was recently extended and now ends on December 31, 2034.

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

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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 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.

Consolidated Statements of Operations Information:

For the three months ended

For the nine months ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

For the Three Months Ended March 31,

Costs of revenues

Total operating expenses

Loss from continuing operations

Income (loss) from operations

Total other income

Income tax expense

Income (loss) from continuing operations

Net income (loss)

Consolidated Balance Sheet Information:

September 30, 2024

December 31, 2024

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Operational and Financial Performance of Continuing Operations by Segment:

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

Financial and operational performance of antimony for the three months ended March 31, 2025 and 2024 was as follows:

For the three months ended

Antimony - Continuing Operations

September 30, 2024

September 30, 2023

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 nine months ended September 30, 2024 and 2023 was as follows:

For the nine months ended

Antimony - Continuing Operations

September 30, 2024

September 30, 2023

Pounds of antimony sold

March 31, 2025

March 31, 2024

Gross profit (a)

Pounds of antimony sold (a)

Average sales price per pound

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Average gross profit per pound

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 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:

Revenue from sales of gold and silver totaled negative $(20,539) and $nil for the three months ended March 31, 2025 and 2024, respectively, which are excluded from Revenue and Gross profit in the table above but included in the antimony segment.

Pounds of antimony sold in the table above exclude the sales related to gold and silver for both periods presented.

Antimony revenue increased $3,456,786, or 140%, for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to an increase in the average sales price per pound driven by higher demand for antimony, partially offset by a decrease in sales volume.

Gross profit increased $1,515,638, or 167%, for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to an increasing market and sales price with a lagging ore cost, offset in part by higher ore costs.

Financial and operational performance of zeolite for the three months ended March 31, 2025 and 2024 was as follows:

For the three months ended

September 30, 2024

September 30, 2023

Gross profit (loss)

Tons of zeolite sold

Average sales price per ton

Average cost per ton

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

March 31, 2025

March 31, 2024

Gross profit (loss)

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Average gross profit (loss) per ton

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 $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 September 30, 2024 and 2023 was as follows:

For the three months ended

Precious metals

September 30, 2024

September 30, 2023

Gross profit (loss)

Ounces sold - gold

Ounces sold - silver

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

September 30, 2024

September 30, 2023

Ounces sold - gold

Ounces sold - silver

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

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 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

September 30, 2024

September 30, 2023

Cost of sales

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss) - antimony

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - antimony

For the three months ended

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss) - zeolite

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - zeolite

For the three months ended

Precious Metals

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income (loss) - precious metals

Interest expense

Depreciation and amortization

EBITDA - precious metals

For the three months ended

September 30, 2024

September 30, 2023

Cost of sales

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss) - consolidated

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - consolidated

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

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss) - antimony

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - antimony

For the nine months ended

September 30, 2024

September 30, 2023

Cost of sales

Gross profit (loss)

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss) - zeolite

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - zeolite

For the nine months ended

Precious Metals

September 30, 2024

September 30, 2023

Cost of sales

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income (loss) - precious metals

Interest expense

Depreciation and amortization

EBITDA - precious metals

For the nine months ended

September 30, 2024

September 30, 2023

Cost of sales

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss) - consolidated

Interest expense

Income tax expense

Depreciation and amortization

EBITDA - consolidated

Zeolite revenue increased $491,691, or 82%, for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to an increase in sales volume driven by improved customer relationships with better supply reliability and expanded customer reach.

Gross profit increased by $471,919 for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to an increase in sales volume and average sales price as well as a decrease in maintenance and related costs.

In the first quarter of 2024, BRZ incurred significant maintenance and related costs from the repair of older machinery and equipment due to historical poor maintenance of this operating equipment.

Capital Resources and Liquidity:

Working Capital of Continuing Operations:

September 30, 2024

Working Capital:

March 31, 2025

December 31, 2024

2 unchanged sentences

Working capital

For the nine months ended

CASH FLOWS OF CONTINUING OPERATIONS

September 30, 2024

September 30, 2023

Net cash provided (used) by operating activities

Net cash provided (used) by investing activities

Net cash used by financing activities

Net cash provided (used) by continuing operations

$ (2,890,909)

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.

For the Three Months Ended March 31,

Cash Flow Information:

Net cash (used in) provided by operating activities

Net cash used in investing activities

Net cash provided by (used in) financing activities

Net increase in cash

Net cash used in operating activities was $1,729,291 for the three months ended March 31, 2025 as compared to $65,027 of net cash provided by operating activities for the three months ended March 31, 2024.

This use of cash in 2025 primarily related to increased antimony inventory ore purchases coupled with higher ore prices as pricing is based on a percentage of the antimony market price, which increased throughout the first quarter of 2025.

Net cash used in investing activities increased to $862,011 for the three months ended March 31, 2025 as compared to $2,031 for the three months ended March 31, 2024.

This increase primarily reflected higher capital expenditures which included the purchase of a personal residence for management personnel working in Montana.

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.

Net cash provided by financing activities was $3,166,123 for the three months ended March 31, 2025 as compared to $21,273 of net cash used in financing activities for the three months ended March 31, 2024.

Financing activities in the first quarter of 2025 included $2,392,317 of net proceeds received from the sale of common stock in an “at the market offering” and $806,438 of proceeds received from the exercise of common stock warrants.

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.

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 subsidiary has generated cumulative losses since inception.

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.

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

One 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.

Government for initiatives related to facility expansion and mining exploration and development.

However, there is no assurance that U.S.

Government funding will be able accessible to the Company.

Government funding will be accessible to the Company.

In addition, the Company continues to review each segment’s operational and financial results for opportunities to improve cash flow and to make informed decisions that benefit the Company overall.

As of March 31, 2025, the Company had cash and cash equivalents of $18,746,429.

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.

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

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Item 2. Management’s Discussion and Analysis