United States Antimony Corporation

Greetings. Welcome to the U.S. Antimony Corporation Fiscal Year 2025 Financial and Operating Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone would like to ask a question during the presentation, you can submit a question at this time by clicking the Ask Question button on the left side of your screen. Type your question into the box and hit the send button to submit your question. If anyone should require operator assistance during the webcast, please press star zero on your telephone keypad. Please note this conference call and webcast is being recorded. I will now turn the call over to your host, Gary C. Evans, Chairman and CEO. You may begin.

Thanks, Kevin. Thank you, everybody, for joining us today. I'd like to start. this call by introducing other members of our company's senior management team who are joining me on this year-end conference call. We have Joe Barschowitz, who's not only a board member, but he's an executive vice president and our chief mining engineer for the company. Rick Isaac, who is our senior vice president, as well as our chief financial officer. Melissa Pagan, who's president and chief operating officer of one of our wholly-owned subsidiaries called Bear River Zeolite. and then Jonathan Miller, who is Vice President of Investor Relations. So before we get – I turn over this call to various members of management to talk about their divisions, I thought I would just kind of give everybody a quick overview of the notable news that was worthy in calendar 2026. So we first announced our – tungsten acquisition, which was done in June. We call that property the Fostong. It's located up in Ontario, Canada, near the town of Sudbury. But more importantly, we just announced several weeks ago that this particular property, after we've acquired it and done some work, has an deferred resource value now exceeding $4.6 billion, and that's B with a billion. So We're very excited about this, and Joe's going to talk a lot more about this when a call is turned over to him. So another big announcement was a new $245 million contract, which has now been upgraded to 248 with a DLA. That's a sole source contract to deliver antimony ingots to the U.S. government. Over five years, we anticipate delivering approximately $75 million of antimony ingots in physical 2026. We're very close to delivering our first pallet of ingots to the government. We also announced a new $106.7 million industrial antimony contract with a company that preferred not to be named, principally for competitive reasons. But this material that we'll be delivering and have been delivering to this company since probably June, July of last year, is used for industrial fabrics and flame retardants associated with these materials. Again, this is a five-year agreement, and I actually took the top three executives of this company fishing yesterday on my boat. With the success we had, which was four sailfish, I'm now anticipating many more years of future business from them. The next big announcement was we added two new independent board members on the USAC board. General Jack Keane, who many of you see on TV, is an active reporter on Fox News, as well as John Marinelli. So we've got a four-star general and a banker extraordinaire who I've known for 25, 30 years, who's an extraordinary banker. He's already been very helpful to our board. We then opened up Sybnight Hill Antimony Mine up in Montana. That's where our existing smelter was built because of this mine. And we were successful in moving antimony down the mountain within weeks of opening that line up and again Joe bars with will elaborate on this significant event further today We restarted our Madero antimony smelter down in Mexico after rehiring the personnel this location has the capacity to process approximately 200 tons per month of material and you'll start seeing a lot more of that business running through our financial statements in 2026. Then we announced the acquisition of 10% of a publicly traded company in Australia called Lervata Resources Limited. We paid $37.2 million in cash, and this is a gold antimony mine that's currently undeveloped that's owned by that company. So... With that, I'd like to kind of get into the financial results of the company. We announced just, I guess, 20 minutes ago our revenues were up 163%. Our gross profit was up 185%. And we, of course, talked about our two contracts, a total of $354 million. So I'm going to let Rick give you a little more detail here on our year-end results. Rick, Isaac, take over.

Thanks, Gary. Okay. I'll start with some comments on our consolidated results, kind of continue on with what you had just talked about. Sales for 2025 were $39.3 million, up 163% over the prior year. Anemone sales were up primarily due to price increases, and zeolite sales were up due to a combination of price and volume increases. Cost of sales increased by 156%. which was lower than our sales increase primarily due to some favorable anemone ore purchases we completed and lower maintenance and repair costs at our zeolite facility located in Idaho. As a result of these cost efficiencies, gross profit dollars grew by $6.4 million, or 185% over the prior year, and gross margin grew by 2 percentage points from 23% to 25% year over year. net loss increased from 1.7 million in 2024 to 4.3 million in 2025. It's important to note, however, that included in 2025's net loss was 6.7 million of non-cash expenses, whereas there was only 1.9 million of non-cash expenses included in 2024's net loss. These non-cash expenses were predominantly related to stock compensation to our employees and our board. With the improvement in this area and our other cash flow initiatives, our cash balance increased significantly. Our cash position, including our U.S. Treasury securities and equity securities, totaled 91.3 million at the end of 2025, compared to cash only of 18.2 million at the end of 2024. Our working capital was $44.6 million at the end of 2025, which is an increase of $27.9 million compared to 2024. This increase was primarily due to increases in cash, inventory, and U.S. Treasury securities. Our anemone inventory increased from 78 tons at the end of 2024 to 465 tons at the end of 2025, and 17% of our antimony inventory at the end of 25 was from our company-owned mine that Kerry mentioned that's located in Thompson Falls, Montana. We continue to maintain a very low amount of debt on our books, $195,000 at the end of 2025. On the operations side, we became fully vertically integrated in our antimony division in 2025. On top of that, we strengthened and grew each of the three facets of this vertically integrated chain that will benefit 2026 and beyond. First, regarding procurement of ore, we historically procured antimony ore predominantly from one third-party source, and we now procure antimony and other critical minerals from many new sources, both internally and externally. Second, we're increasing our capacity to process these minerals into finished product. We're nearing completion on the expansion of our Thompson Falls antimony smelter that will more than triple its capacity. And we're completing the engineering phase in order to begin the construction of our new hydromet facility located in Idaho with our JV partner, America's Gold and Silver. And to assist in funding some of this expansion, we were recently awarded $27 million from the USDOW. Third, We executed, as Kerry said, two five-year sales contracts in 2025 to sell our finished products. We're also building our back office infrastructure to support this growth with additional personnel and new software. In 2026, we'll implement new accounting software that will provide management with more information quicker than in the past for decision-making. We recognize the opportunity and the need for critical minerals. and are going after this market for our investors and for our country. And we'll continue this strategy of growth, diversification, and sustainability in a planful yet tenacious manner as we have in the recent past. I'll turn it back over to you, Gary.