United States Antimony Corporation

Welcome to the United States Antimony Corporation First Quarter 2025 Financial and Operational Results Meeting. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the webcast, please press star zero on your telephone keypad. Please note this webcast is being recorded. I'll now turn the webcast over to your host, Gary C. Evans, Chairman and CEO. You may begin.

Thank you, sir, and thank all of you. Good afternoon, and I appreciate you joining the management team of U.S. Antimony to hear about our first quarter 2025 results. I have with me on the call today other management team members, including Joe Barswith, who is our board member and executive vice president and chief mining engineer for the company, Rick Isaac, our senior vice president and chief financial officer, and Jonathan Miller, vice president of investor relations. In summary, we reported revenues this morning were up to 128% year-over-year from last quarter of 2024. Gross profit was up 302% year-over-year, and we reported net income of over half a million dollars, which was up 269% year-over-year. Our revenues in the first quarter were almost 50% of what we reported for the entire year in fiscal 2024. Now to give you more detail regarding our operating and financial results reported this morning, Rick Isaac will take over the call. Rick?

Thanks, Gary. I'll start with some comments on our consolidated results. Sales were $7 million for the first quarter of this year, which is an increase of nearly $4 million over last year. Of this increase, our anemone business was up $3.5 million over the prior year, which is primarily due to continued strong demand and an increased average sales price with our antimony products. And our zeolite business was up about $500,000 over the prior year, primarily due to higher demand and an increase in our sales volume with our zeolite products. Gross profit, as Gary mentioned, was $2.4 million for the first quarter of this year, which was an increase of $1.8 million over last year. And gross margin increased from 19% last year to 34% this year. The primary drivers of these increases were the higher average sales price with lagging ore costs in our anemone business and the more efficient operations in our zeolite business. These increases were offset in part by higher anemone ore costs. As a result of these improvements, we reported income from operations of $358,000 in the first quarter of this year. which compares to a reported loss from operations of $470,000 last year. However, there was a few more differences between the quarters that provide insight into our results. Our results in the first quarter of this year include about $750,000 of costs related to new management personnel and about $315,000 of project costs. Both of these costs were not present in the first quarter of last year. The majority of these costs relate to our strategy to quickly improve the company to capitalize on the current needs and demands from our business, which includes mining in Alaska and Canada, use of a metals concentration facility in Phillipsburg, Montana, sourcing anemone ore from new suppliers, obtaining funding for plant expansion and plant capacity expansion, and others. Our results in the first quarter of this year include about $160,000 of ramp-up costs at our Mexico anemone smelter, which we should start seeing the benefits from these costs in future quarters. Next, I'll cover a few items related to our anemone business. Our anemone sales were $5.9 million in the first quarter of this year, which is up $3.5 million, or 140%, over last year, mainly due to the increase in the average sales price quarter over quarter. Also, the first quarter this year had lower anemone sales volume than last year's first quarter, primarily due to contract and logistics delays related to anemone ore supply. This resulted in more anemone inventory on hand at the end of the first quarter than expected. Both matters have since been resolved, and processing and sales have increased at the beginning of the second quarter. Along with the increase in sales, our antimony income from operations increased by $900,000 over last year and was $1.1 million for the first quarter of 2025. The increases in sales and income from operations were related to the strong demand for antimony. Antimony, as you know, is part of the increased demand for critical minerals and critical materials from many industries as well as for the U.S. government. And we've been quickly implementing initiatives to capitalize on this demand. We reopened our Mexico anemone operations, as I mentioned. We're sourcing anemone ore from additional suppliers. We're expanding our operations to process anemone. In addition, we're going to start operations soon on our mining claims in Alaska. Next, I'll switch to our zeolite business. Our zeolite sales were 1.1 million in the first quarter of this year, which is up about 500,000 or 82% over last year. Our facility has become a reliable supplier to our customers, and this shows in our increased sales volume, which increased 67% quarter over quarter. Our zeolite loss from operations was 308,000 in the first quarter of this year, which improved by 350,000 over last year. This improvement was primarily due to efficiencies in labor and overhead related to higher sales volume, as well as lower maintenance and related expenses. Our zeolite business, as we've mentioned on prior calls, incurred significant maintenance and other related costs in the first quarter of 2024 due to poor maintenance historically on their operating equipment. Overall, we continue to be focused on growing our zeolite sales profitably. Next, I'll describe a few items on our balance sheet. Our working capital improved during the first quarter of this year by $3.4 million, and it improved since March 31, 2024, by $7 million. Our cash balance increased $574,000 during the first quarter of 2025. We have warrant exercises cumulatively over 2024 and 2025 of around 5 million shares. This amount of gross proceeds of around $3.7 million. There's around 5.5 million of gross proceeds that has not been exercised. And we ended the quarter with long-term debt of about $300,000. Overall, we got off to a good start in the first quarter, and we have a lot of opportunity ahead of us. We improved our operations and our financial results at both our anemone and zeolite businesses. Our consolidated results improved over last year, and sales income and cash increased over last year. We have initiatives that should continue to improve our results and metrics throughout 2025 and increase shareholder value. More important, you have a team dedicated to capitalizing on this opportunity in front of us and to improving the company every day. I'll turn it back over to you, Gary.