United States Antimony Corp. — Second Quarter 2026 Earnings Summary

Financial Performance

• Second quarter 2026 revenue was $7.9 million, a 25% year-over-year decline from $10.5 million in Q2 2025, driven by lower realized antimony pricing; revenue increased 17% sequentially from $6.8 million in Q1 2026.
• Year-to-date revenue for the six months ended June 30, 2026, was $14.7 million, a 16% decrease from $17.5 million in the first half of 2025.
• Antimony segment revenue was $5.9 million in Q2 2026 compared to $9.6 million in the prior year period; pounds sold increased 26% to 428,425 pounds, while average selling price declined 52% from $28.32 to $13.70 per pound.
• Zeolite segment revenue increased 110% year-over-year to $1.9 million from approximately $1 million, driven by a 114% increase in tons sold; gross profit increased $0.4 million to approximately $0.1 million.
• Gross profit for the quarter was $0.6 million (7% margin), down from $2.8 million (27% margin) in the prior year quarter.
• Operating expenses were $7.6 million in Q2 2026 compared to $2.8 million in the prior year period, primarily due to higher non-cash share-based compensation ($2.9 million), increased salaries, and professional fees.
• Operating loss was approximately $7 million, which included $3.4 million in net non-cash items ($2.9 million SBC and $0.5 million D&A).
• Reported net income was approximately $0.1 million, compared to $0.2 million in the prior year quarter; this was supported by a $6.8 million unrealized gain on the Larvotto Resources Limited investment and $0.4 million in investment interest income.
• Cash and cash equivalents were $41.4 million as of June 30, 2026, up from $3.2 million at March 31, 2026, and $30.5 million at December 31, 2025.
• Total liquidity (cash plus U.S. Treasuries held to maturity) was $62.2 million as of June 30, 2026.
• Total assets grew $42.6 million during the first half of the year to $190.6 million.
• Working capital doubled to $70 million from $35 million at the end of the first quarter; total liabilities declined $3.4 million to $9.6 million.
• Inventory was $21.6 million at quarter end, up from $12.5 million at December 31, 2025, and $6.4 million at June 30, 2025, reflecting intentional feedstock and finished goods build-up.
• Net cash used in operating activities for the six months ended June 30, 2026, was $20.7 million, primarily due to working capital investment in inventory.
• Net cash used in investing activities was $11.1 million, while net cash provided by financing activities was $43.4 million, driven by equity issuance proceeds averaging $11.56 per share.
• Capital expenditures for the first six months totaled $22.8 million gross, primarily for the Thompson Falls expansion and Radersburg mill upgrades; net capital deployed was approximately $10 million after receiving $12.8 million in DPA grant funding.
• Total cash investments in marketable securities on the balance sheet stood at $105 million as of June 30, 2026, including the $43.2 million Larvotto strategic equity investment.

Guidance and Future Outlook

• Full-year revenue guidance was lowered to $60 million to $75 million, attributed primarily to significant declines in antimony market prices rather than delivery timelines.
• Management anticipates completing the first delivery order of the $245 million sole source DLA contract nearly one year ahead of schedule.
• Third quarter revenue is anticipated to include approximately $2.6 million from the third and fourth truckloads of antimony ingots.
• Fourth quarter shipments of truckloads five, six, and seven (over 120,000 pounds) are expected to contribute approximately $4 million in additional cash flow, subject to third-party lab acceptance.
• Cumulative orders awarded under the DLA contract total approximately $57.3 million.
• The company is awaiting feedback on four grant applications totaling $275 million submitted to the Departments of Energy and War.
• Management expects margin expansion in the third and fourth quarters as DLA shipments are recognized, noting that current antimony prices of approximately $10 per pound allow for profitability given procurement costs of $4-$6 per pound.
• The Bolivia facility is expected to come fully online over the next several months at a rate of approximately 150 tons per month.
• Production of finished products is expected to continue ramping up, with the Idaho hydrometallurgical joint venture advancing despite equipment and logistics delays.

Business Segments and Product Lines

• Antimony:
  • 300 tons of metallic feedstock were recently received and are inbound for processing at Thompson Falls for antimony trioxide production.
  • First shipment from Bolivia is on water; the first container of metallic antimony is expected to deliver to Thompson Falls within the next month.
  • Regular shipments to the Madero smelter in Mexico continue with stable supply lines.
  • Radersburg flotation facility in Montana is in the operating phase, processing approximately 1,100 tons of high-grade ore from Stibnite Hill; the MSHA ID is active, and daily ore feeding has commenced.
  • A new 3 kilowatt wavelength dispersive XRF system has been installed at the Radersburg lab.
• Mining Operations:
  • Montana: Excavation of the Eliza claim vein yielded approximately 800 tons of ore grading 10% antimony; mining resumed at Stibnite Hill in late July after MSHA approval, with 25 truckloads (16 tons each) mined and shipped as of the call date.
  • Alaska (Ester Dome): Trenching and drilling continue near Fairbanks to locate near-surface stibnite pockets; a staging area near Fox, Alaska, serves as the HQ and logistics center.
  • Alaska (Nolan Creek): The company purchased claims in January; a 7-mile road has been built to the property, and pre-bid site inspections were hosted for contractors to tender for underground development, with mining tentatively planned to begin late 2026.
  • Ontario (Tungsten): Metallurgical testing continues at Lakefield Research; a 20,000-tonne bulk sample site is being prepared for drilling and blasting.
• Zeolite:
  • Revenue growth is driven by a 114% increase in tons sold, with success attributed to broadened sales channels, particularly in the cattle nutrition segment.
• Joint Ventures:
  • The Americas Gold and Silver joint venture in Idaho has executed technology development contracts and identified engineering/procurement contractors for the hydrometallurgical processing plant.

Market and Competitive Landscape

• Antimony prices are currently in the $10 per pound range, down from year-end 2025 levels of approximately $28 per pound; management believes prices are manipulated by China.
• The company holds a $245 million sole source antimony contract with the Defense Logistics Agency (DLA).
• Institutional ownership increased to over 57% from 42% in Q1, with State Street Investment Management and BlackRock Fund Advisors increasing their positions.
• The company is expanding its investor base in Europe through partnerships with Barclays Bank and plans further marketing activities.
• Management noted that the current administration demonstrates a "can-do, will-do attitude" toward the mining industry, contrasting with the lack of support seen in the previous 20-30 years.

Risks and Challenges

• Revenue volatility is driven by uncontrollable global antimony price fluctuations and the timing of government acceptance and payment for DLA shipments.
• Operational risks include delays in regulatory approvals (e.g., Montana DEQ, MSHA), equipment retrofits, and logistics issues (e.g., fuel supply issues in Bolivia due to the Iranian war).
• The company faces the risk of not finding acquisition targets that meet stringent geological, engineering, and financial criteria within a 12-to-18-month timeframe.
• Grant funding is subject to government timelines and decisions, with no certainty on approval or structure (equity vs. grant).
• Inventory valuation is subject to lower-of-cost-or-market analysis.

Management Commentary and Tone

• CEO Gary Evans described quarterly results as "bumpy" but expressed pride in the team's ability to identify and execute on three high-grade properties (Stibnite Hill, Nolan Creek, Fostung) within 12 months.
• Management emphasized that while they cannot control antimony prices, they can control volume and procurement costs, positioning the company to generate strong margins at current price levels.
• CEO Evans noted the company is "giving up" on the attempted takeover of Larvotto Resources, viewing it as a liquidity event, though the investment has appreciated by an additional $2.7 million since quarter-end.
• CFO Shawn Winkler highlighted the company's "materially stronger" liquidity position and the strategic build-up of inventory to support DLA contracts.
• Management expressed confidence in the DLA contract execution and the potential for significant margin expansion in H2 2026 as shipments are recognized.

Analyst Questions and Answers

• H2 2026 Deliveries: Management confirmed the lowered guidance is due to pricing, not delivery times, and remains committed to completing the $57 million DLA order in 2026.
• Government Transactions: Discussions regarding $250 million in potential government support are advanced; the administration is leaning toward equity investments rather than straight grants, though additional grants without equity remain possible.
• Price Outlook: Management expects antimony prices to remain in the $10 per pound range for the remainder of 2026, acknowledging the volatility caused by Chinese market influence.
• Grant Updates: No specific timeline is available for grant decisions; management is utilizing government contacts to pressure for approvals but remains dependent on government schedules.
• Alaska Production: No antimony production is currently coming from Alaska; all current production originates from Stibnite Hill, Montana.

Other Key Points

• In June, the company delivered its first two shipments of antimony ingots to the DLA (82,000 pounds), though revenue recognition was delayed to Q3 due to late acceptance approval.
• The company received $12.8 million in milestone-based funding under a DPA grant award from the Department of War in April.
• The company turned away at least seven acquisition deals in the quarter due to strict investment criteria.
• CEO Evans attended a presidential forum in D.C. where $100 million in new grant money was awarded to mining programs, resulting in high-level government contacts.
• The company was recognized by the Dallas Business Journal as one of the Texas' Fast 50 companies.
• The company is actively marketing to institutional investors in Europe and plans participation in multiple conferences including the Needham Virtual Conference, Piper Sandler Growth Conference, and North American Critical Minerals Summit.