United States Antimony Expands Capacity as Defense Contracts Fuel Growth

Key Points

• United States Antimony is expanding production capacity with a $27 million government grant aimed at increasing its Montana facility’s output from 75 to more than 300 tons per month. The company has also begun deliveries under a $245 million Defense Logistics Agency contract and secured a separate $106 million industrial contract.
• The company’s proposed Idaho joint venture with Americas Gold and Silver would build a $150 million hydrometallurgical facility for antimony, copper and silver. Expected to launch in 2028, the project could raise total antimony capacity above 1,500 tons per month, potentially supplying about 60% of current U.S. demand.
• Growth prospects are offset by weaker antimony prices and higher funding needs. The company cut current-year revenue guidance to $60 million–$75 million from $125 million after prices fell from nearly $30 to roughly $8.64–$9 per pound, while future financing may be needed for the joint venture.

United States Antimony NYSE: UAMY is expanding its processing capacity, pursuing domestic mineral supply sources and advancing a proposed antimony, copper and silver processing joint venture as it seeks to serve U.S. defense and industrial customers, Vice President of Investor Relations and Global Sales Director Jonathan Miller said during a company presentation.

Miller said the company has undergone substantial management and board changes since Gary Evans became full-time chief executive officer in August 2023. He characterized the company as the only producer of antimony products in North America and said the business has focused on increasing vertical integration and securing feedstock after China announced export restrictions on antimony in September 2024.

Antimony Capacity Expansion and Government Contracts

Antimony is classified as a critical mineral by the U.S. government and is used in defense products, flame retardants, solar panels, lead-acid batteries, cabling and data-storage infrastructure, Miller said. He estimated U.S. annual consumption at about 26,000 tons, with approximately 32% tied to defense applications.

The company received a $27 million government grant to expand its Thompson Falls, Montana, facility, Miller said. The project is designed to increase the site’s capacity from 75 tons per month to more than 300 tons per month. He said four remaining furnaces were expected to be operating by Thanksgiving, following delays involving the equipment manufacturer.

United States Antimony also operates a smelter in Madero, Mexico, with capacity of roughly 200 tons per month. Miller said the site has addressed processing issues associated with iron content in Australian feedstock and is currently producing two to three truckloads per week of antimony oxide for further processing in Montana.

The company has begun deliveries under a $245 million Defense Logistics Agency contract to supply antimony metal ingots for the national stockpile, according to Miller. He said deliveries began in May and are running nine months ahead of schedule, although government-related delays pushed anticipated revenue recognition from the second quarter into the third quarter. Miller added that company officials had discussed potentially increasing the contract to $1 billion in the next year.

Separately, he said the company secured a $106 million contract with an industrial customer producing flame-retardant roofing materials for data-storage centers.

Hydrometallurgy Joint Venture

United States Antimony has formed a joint venture with Americas Gold and Silver to develop a hydrometallurgical processing facility in Idaho. United States Antimony owns 49% of the venture, while Americas Gold and Silver owns 51% and contributed the project land, Miller said.

The proposed 120,000-square-foot facility would process antimony initially, alongside planned copper and silver capacity. Miller said the venture decided to develop all three processing lines simultaneously, increasing anticipated capital expenditures from $75 million to $150 million.

He said the hydrometallurgical process could process lower-grade materials and feedstocks containing higher levels of impurities than traditional smelting methods. The facility is expected to have capacity for 1,000 tons of antimony per month. Combined with the company’s existing facilities, Miller said total capacity could exceed 1,500 tons per month and potentially represent about 60% of current U.S. demand when the project is expected to come online in 2028.

Mining and Feedstock Efforts

Miller said the company has accumulated more than 35,000 acres of mineral claims in Alaska and is conducting drilling on primarily open-pit prospects. It also acquired the Nolan Creek underground mine, about 75 miles north of Fairbanks, for approximately $1.5 million through a trustee sale.

The Nolan Creek property contains gold and antimony, he said. The company has completed permitting, road paving, camp construction and underground infrastructure work, and expects to begin bulk sampling within 60 days. Miller said an updated resource report was expected before year-end and could indicate inferred in-ground value of roughly $500 million to $1 billion for gold and antimony.

In Montana, the company resumed operations at the Stibnite Hill mine near its Thompson Falls smelter. Miller said the mine delivered 800 tons of material in its first 45 days after reopening and has produced nearly 1,000 tons so far this year, at an approximate 10% antimony grade.

The company is also sourcing material from Canada, Bolivia, Chad and other international suppliers. However, Miller said much of the new global supply from artisanal mining operations has been rejected because it does not meet specifications needed for military-grade products.

Tungsten, Zeolite and Financial Outlook

Beyond antimony, the company is developing a tungsten property in Sudbury, Ontario, acquired for $5 million. Miller said a technical report filed in March showed an inferred resource value of $4.5 billion, which he said had risen to more than $9 billion as tungsten prices increased. The company expects to begin bulk sampling this year and target 20,000 tons of material by year-end, with tungsten potentially becoming a revenue line next year.

Its Bear River Zeolite subsidiary in Preston, Idaho, has a zeolite deposit that Miller said holds more than 100 years of supply at current production rates. Zeolite is being marketed for cattle feed, water treatment, nuclear remediation and potential low-carbon concrete applications.

Miller said company revenue rose from approximately $8 million in 2023 to $15 million in 2024 and $39 million last year. United States Antimony reduced its current-year revenue guidance to $60 million to $75 million from $125 million after antimony prices declined. He said antimony pricing had climbed to nearly $30 per pound after China’s export restrictions before falling to about $8.64 to $9 per pound.

The company raised about $50 million through its at-the-market equity program and does not expect to need additional capital this year, Miller said. He added that financing could be needed next year for the joint venture, though the company is seeking government support for the project.

About United States Antimony (NYSE:UAMY)

United States Antimony Corporation, through its subsidiaries, produces and sells antimony, precious metals and related specialty materials. Its products include antimony oxide, antimony metal, sodium antimonate and other antimony compounds used in applications such as flame retardants, ceramics, glass, pigments, batteries and other industrial products.

The company also processes and refines antimony-bearing materials and recovers precious metals from selected raw materials and recyclable sources.

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