United States Antimony Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue was $7.9 million, a decrease from $10.5 million in Q2 2025.
• Antimony segment revenue was $5.9 million in Q2 2026, down from $9.6 million in the prior year period.
• Antimony pounds sold increased 26% to 428,425 pounds in Q2 2026, compared to 340,305 pounds in Q2 2025.
• Average antimony selling price declined 52% to $13.70 per pound in Q2 2026, compared to $28.32 per pound in Q2 2025.
• Average antimony cost per pound declined 33% to $13.34 in Q2 2026, compared to $19.85 per pound in Q2 2025.
• Gross profit was $0.6 million (7% gross margin) in Q2 2026, compared to $2.8 million (27% gross margin) in Q2 2025.
• Zeolite revenue grew 110% year-over-year to $1.9 million in Q2 2026, with tons sold increasing 114% to 6,609 tons.
• Operating expenses were $7.6 million in Q2 2026, compared to $2.8 million in Q2 2025.
• Operating loss was $7.0 million in Q2 2026, compared to break-even results in Q2 2025.
• Net income was $0.1 million in Q2 2026, compared to $0.2 million in Q2 2025.
• Q2 2026 net income included a $6.8 million unrealized gain on the investment in Larvotto Resources Limited and $0.4 million of interest income.
• Operating loss included $3.4 million of net non-cash expense items, primarily $2.9 million in share-based compensation and $0.5 million in depreciation and amortization.
• Inventory increased to $21.6 million as of June 30, 2026, up from $12.5 million at December 31, 2025 and $6.8 million at June 30, 2025.
• Working capital doubled to $70.0 million on June 30, 2026, from $35.0 million at March 31, 2026.
• Cash and cash equivalents were $41.4 million as of June 30, 2026, compared to $30.5 million at December 31, 2025.
• Investments in U.S. Treasury securities held to maturity were $20.7 million as of June 30, 2026.
• Net proceeds from equity issuances were $49.1 million during the first six months of 2026.
• Capital expenditures were $22.8 million gross during the first six months of 2026.
• Treasury share repurchases totaled $7.8 million during the first six months of 2026.
• Net cash used in operating activities was $20.7 million for the six months ended June 30, 2026.
• Net cash provided by financing activities was $43.4 million for the six months ended June 30, 2026.

Guidance and Future Outlook

• Full-year 2026 gross revenue guidance has been updated to a range of $60 million to $75 million, revised down from prior guidance of $125 million.
• The revised guidance reflects a material decline in antimony market prices (spot pricing approx. $10.50/lb in Q2 vs. >$28/lb in late 2025), timing shifts in DLA deliveries, and updated production cadence.
• Management anticipates a minimum of $9.0 million to $10.0 million in additional sales in Q3 2026, all to the U.S. Government.
• The Company expects the Thompson Falls expansion to become fully operational on all furnaces during Q3 2026.
• The Company expects to fulfill $57.3 million in antimony ingot orders from the DLA by year-end.
• Demand for domestically sourced antimony remains robust, and the DLA IDIQ contract is expected to be a meaningful long-term revenue contributor.
• Revenue growth and product diversification are expected to expand in the back half of 2026 and into 2027 as capacity utilization increases.

Business Segments and Product Lines

• Antimony segment: Delivered the first two shipments of approximately 82,000 pounds of antimony metal ingots under the DLA contract in June 2026; approximately $2.6 million is expected to be recognized as Q3 2026 revenue upon formal acceptance.
• Zeolite segment: Revenue grew 110% year-over-year driven by 114% growth in tons sold (6,609 tons), fueled by penetration into the cattle market and expanded industrial distribution.
• Thompson Falls expansion: Substantially completed, partially funded by a $12.8 million payment received in April 2026 under the Defense Production Act Title III grant.
• Radersburg facility: Commissioned the flotation facility (midstream) in Radersburg, Montana, and added a lab to strengthen the vertically integrated domestic antimony production platform.
• Strategic investments: Acquired mining claims in Alaska (Nolan Creek and Fairbanks District) and Montana; filed a Technical Report Summary on the Fostung tungsten project in Ontario, Canada, in April 2026.
• Joint Venture: Announced a new joint venture with Americas Gold and Silver to build a hydromet processing facility in Idaho.

Market and Competitive Landscape

• The Company is the only fully integrated antimony company in the world outside of China and Russia.
• Worldwide antimony prices declined during the first six months of 2026, impacting revenue projections.
• The Company increased existing inventory by 178% from year-end to capitalize on lower prices and support anticipated production growth.
• Underlying government and industry demand for domestically sourced antimony remains robust.

Risks and Challenges

• Fluctuations in market prices and demand for antimony and zeolite.
• Dependence on the DLA contract and the U.S. government's ability to modify, delay, reduce, or terminate orders.
• Risk that assumptions underlying the 2026 revenue guidance prove incorrect.
• Ability to complete the Thompson Falls expansion and other capital projects on timeline and budget.
• Availability, quality, and cost of third-party antimony feedstock.
• Volatility in the market value of the investment in Larvotto Resources Limited.
• Dilution effects from equity issuances.
• Operational risks inherent in mining and mineral processing, including geological conditions and energy costs.
• Regulatory risks regarding permits, licenses, and environmental laws.

Management Commentary and Tone

• Chairman and CEO Gary C. Evans stated that while operations are improving monthly, financial performance is slowly reflecting these successes.
• Management noted that first deliveries to the government in Q2 were not reflected in Q2 financials due to acceptance timing in July.
• Management expressed confidence in fulfilling $57.3 million in DLA orders by year-end and expects increased shipments to both the DLA and industrial customers in the balance of 2026.
• Management highlighted the strategic decision to increase inventory during the price decline while the new smelter was commissioned.

Other Key Points

• The Company received a $12.8 million payment in April 2026 for milestones achieved under the Defense Production Act Title III grant from the U.S. Department of War.
• The Company holds a strategic investment in Larvotto Resources Limited with a fair value of $43.2 million as of June 30, 2026, which appreciated to approximately $46.7 million based on August 10, 2026 market prices.
• An unrealized gain of $6.8 million was recorded on the Larvotto investment during Q2 2026.
• The Company generated $49.1 million in net proceeds from equity issuances in the first six months of 2026.
• The Company recorded a $2.6 million revenue recognition for DLA shipments in Q3 2026.
• Total DLA contract value currently on books is $57.3 million.
• The Company has $9.17 million in value associated with DLA shipments in various stages (delivered, in transit, waiting on inspection).