UNITED STATES ANTIMONY CORP Q1 FY2026 earnings call

Strategic Direction & Diversification

• The company is transitioning from a single-commodity antimony producer to a diversified critical minerals producer focused on antimony, cobalt, gold, tungsten, and zeolite, aligned with U.S. government supply chain security priorities.
• Management emphasizes strong growth potential across all segments and expects operational progress and improved financial results in the second half of 2026.

Critical Minerals Exploration & Development

• Stibnite Hill (Montana, Antimony): Mining is awaiting regulatory approval, expected within two weeks, following a required leaching test request from Montana DEQ; the company has submitted a containment plan using local clay, and expects steady production through winter once approved. 800 tons of 10% antimony ore were hauled to the Raidersburg Mill in late 2025.
• Foss Tung (Ontario, Canada, Tungsten): Operations were delayed by winter flooding, but roads are now open and bulk sample collection for metallurgical testing is underway. An independent technical report confirms an inferred resource of 14.62 million metric tons grading 0.17% WO3, with a gross resource value of $9.3 billion at current tungsten prices. The company has applied for federal grant funding for the project, which would be the first new tungsten mine in North America in decades.
• Alaska Projects: Antimony exploration at Esther Dome will resume before the end of May; a late summer drill program is planned for the high-grade KM Copper Project; the newly acquired Nolan Creek antimony-gold deposit has a reported resource of 42,412 tons grading 28% antimony and 0.408 ounces of gold per ton, with a gross value of over $460 million at current prices; exploration and permitting work will begin in summer 2026.

Processing Infrastructure

• Thompson Falls (Montana, Antimony Smelter): Expansion to 230 tons per month of capacity (from 75 tons per month) is on track for 80% operation by mid-July 2026, with full commissioning complete by the end of July. The old plant will be shut down for upgrades after the new expansion is stabilized. The expansion is supported by a $27 million U.S. DOD grant, $12.8 million of which has already been received.
• Raidersburg (Montana, Critical Mineral Mill): Acquired in January 2026 for $4.3 million, all core processing systems are operational; a new on-site analytical laboratory is currently being installed to enable 24-hour turnaround for assay results, critical for supporting exploration and processing optimization. A grand opening with state officials is scheduled for July 2026.
• Madero Smelter (Mexico): Secured long-term supply contracts delivering an average of 225 tons of high-quality antimony feedstock per month, doubling inventory levels from 2025, and developed specialized contaminant removal processes to produce high-purity antimony ingots meeting U.S. government specifications.
• Hydromet Joint Venture (with America's Gold and Silver): The joint venture's Bolivian partner has fully commissioned its processing circuit, produced initial antimony flake, and the first shipment is en route to Thompson Falls. The planned 1,000 ton per month Idaho hydromet facility, on track for completion in 2028, will be able to process lower-grade and higher-impurity antimony feed that cannot be processed in conventional furnaces, opening up new supply sources.

Bear River Zeolite (BRZ) Division

• Launched the cattle nutrition segment in Q1 2026, with upfront investment in logistics, inventory, and staffing to scale demand. The company saw record monthly shipments in March and April 2026, exceeding targets by 42% and 66% respectively, and has added two new large cattle nutrition customers in the past two weeks. Demand currently outpaces existing capacity, so phased automation and infrastructure upgrades are underway to support growth. The property hosts a 400-year reserve of high-quality zeolite.

Capital & Investor Relations

• As of quarter-end, the company held $60.2 million in cash, U.S. Treasury securities, and equities, with minimal total debt of $162,000. Subsequent to quarter-end, the company received $12.8 million in DOD grant funding and raised $48.6 million in gross proceeds from a stock offering at an average price of $11.57 per share. Institutional ownership now approaches 50%, and the company completed uplisting to the NYSE main board in March 2026.

Consolidated net sales for Q1 2026 were $6.8 million, nearly flat compared to $7 million in Q1 2025. The Antimony segment revenue was down 2% year-over-year, and the Zeolite segment revenue was down 7% year-over-year. Gross profit decreased by $1.3 million year-over-year, driven by higher labor, facility, and freight costs incurred in preparation for planned production ramp-up. Net loss for Q1 2026 was $11.3 million, primarily from non-cash stock compensation of $4.8 million and an unrealized mark-to-market loss of $4.1 million on the company's Lovato equity investment. While Q1 2026 zeolite segment sales were down 7% overall, March 2026 zeolite sales were 60% higher than March 2025, with strong momentum continuing into April 2026 driven by growth in the cattle nutrition market.

• Management reaffirms its full-year 2026 revenue guidance of $125 million, with 75% to 95% of that revenue expected to come from U.S. government antimony ingot shipments. The company is confident it can meet this target as production ramps up through the year.
• The company has submitted over $274 million in additional federal grant applications for various critical mineral projects (including $44 million for the Idaho hydromet facility, $5 million for tungsten exploration, and $105 million for domestic tungsten supply chain development) and expects decisions on many of these within 45 to 60 days. Remaining tranches of the awarded $27 million DOD grant will be released in line with project milestones, with $8 million expected to be received in 2026 and the remaining $7 million for Alaska projects expected in 2027.
• The Thompson Falls smelter expansion is expected to reach 80% capacity by mid-July 2026, with full operation coming online incrementally through the second half of the year. First commercial tungsten production from the Foss Tung project is not expected in 2026, but completion of a 20,000 to 50,000 ton bulk test sample is expected in 2026 to confirm commercial viability.

• Regulatory permitting delays at mining projects (such as the current approval wait at Stibnite Hill) can push back production timelines. Winter weather and flooding have already delayed exploration activities at the Canadian Foss Tung project, and Alaska's short operating window limits annual progress on exploration projects.
• Third-party equipment delivery delays (such as the heat exchanger delays for the Thompson Falls expansion) have extended project construction timelines, though the project still remains on track for completion much faster than industry averages. Commissioning of new processing facilities always carries risk of unexpected technical issues that could delay ramp-up.
• The company's 10% stake in Lovato Resources Australia faces uncertainty due to a lack of productive dialogue with Lovato's entrenched management, and the company is considering selling its entire stake due to the inability to execute its planned hydromet development strategy for the asset. Lovato also has a 10% Chinese ownership stake and a Chinese marketing agreement that create strategic uncertainty.
• High upfront costs for infrastructure, inventory, and market development for new segments (such as zeolite cattle nutrition) have pressured near-term profitability, and it is uncertain whether demand growth will meet expectations or generate projected returns on investment.

Q: What is the current status of the company's investment in Lovato Resources, and what is the plan for the stake going forward? / A: The company recorded a $4.1 million non-cash mark-to-market loss on the Lovato stake in Q1 2026, but as of the call date, the unrealized gain on the position would be $10.1 million, a $14 million swing from quarter-end. Management reports no productive dialogue with Lovato's entrenched management, and is frustrated by Lovato's Chinese ownership and marketing relationships. The company is actively exploring a full sale of its stake to realize gains.

Q: Will the company produce any tungsten revenue in 2026, and when can first sales be expected? / A: The probability of meaningful tungsten revenue in 2026 is low. The company plans to complete processing of a 20,000 to 50,000 ton bulk test sample through third-party mills in 2026 to confirm commercial viability. Full commercial production requires additional permitting that will extend into future years.

Q: Are additional partnership agreements similar to the hydromet joint venture with America's Gold and Silver in the pipeline? / A: Most upstream mining companies prefer not to own refining capacity, creating an opportunity for U.S. Antimony to expand its refining platform to partner with other producers. The company's fine-tuned hydromet technology opens the door to processing lower-grade, higher-impurity antimony feed that cannot be processed in conventional facilities, and the company has already received inquiries from third parties looking to process antimony at the planned Idaho facility.

Q: Management previously raised 2026 guidance to $125 million; is this target still achievable? / A: Management reaffirms full confidence in the $125 million 2026 revenue target, with 75-95% of revenue expected to come from U.S. government antimony shipments. The only constraint is ramping up processing capacity to meet existing government demand, which is on track with the Thompson Falls expansion, and the company has already built up sufficient inventory to meet near-term delivery targets.