UNITED STATES ANTIMONY CORP Q2 FY2026 earnings call

Financial Overview

• Q2 2026 total revenue was $7.9 million, a 25% YoY decline from $10.5 million in Q2 2025, driven primarily by lower antimony prices. Revenue increased 17% sequentially from Q1 2026's $6.8 million on higher antimony volumes and strong zeolite performance.
• Six-month 2026 YTD revenue was $14.7 million, a 16% YoY decline from H1 2025's $17.5 million, driven by lower antimony prices partially offset by higher sales volumes.
• Gross profit was $0.6 million (7% gross margin) in Q2 2026, down from $2.8 million (27% margin) in Q2 2025, with compression fully attributable to lower antimony prices. Operating loss was $7 million, including $3.4 million in non-cash items. Net income was $0.1 million, after a $6.8 million unrealized gain on the company's Larvado Resources Limited investment.
• As of June 30, 2026, the company held $41.4 million in cash and cash equivalents plus $20.7 million in held-to-maturity U.S. Treasuries, for total liquidity of $62.2 million. Working capital doubled to $70 million quarter-over-quarter, total liabilities fell to $9.6 million, and debt remains de minimis. Inventory grew to $21.6 million, an intentional buildup to support the DLA defense contract and future commercial demand.
• Net cash used in operating activities was $20.7 million H1 2026, driven by inventory investment. Gross capital expenditures were $22.8 million H1 2026, partially offset by $12.8 million in DPA grant milestone funding, for net capital employed of ~$10 million. The first two DLA antimony shipments (82,000 pounds) were delivered in June 2026, with revenue to be recognized in Q3 2026 after July acceptance.

Exploration & Mining Operations

• Espanola, Ontario (Tungsten): Site preparation is underway for an initial 20,000-ton bulk sample, with contractor quotations out for drilling, blasting, and processing. The bulk sample will be concentrated at a nearby regional mill before sale to a Pennsylvania tungsten processor. Silver exploration is ongoing at the company's Dubrovil land package, following high-grade silver sediment results from Ontario government surveys.
• Montana: After regulatory delays, mining resumed in late July 2026 at the Stibnite Hill mine, with 25 additional truckloads (16 tons each) of 10% antimony ore already mined and shipped to the Raidersburg mill. The Raidersburg flotation mill is now fully operational, with safety improvements, a new on-site analytical lab completed, and ore processing active daily.
• Alaska: Trenching and drilling for near-surface stibnite deposits is ongoing at the Esther Dome project, with a logistics and staging hub already established near Fox, Alaska. A permitted core drilling program will be completed summer 2026 to test high-copper surface values at the newly acquired MK Copper deposit. The company acquired the high-grade Nolan Creek project (inferred reserve of 42,412 tons of 28% antimony and 0.408 oz gold per ton) at auction in January 2026, has completed a 7-mile access road, and hosted contractor site inspections for underground development. Mining is targeted to start late 2026, with ore processed at Raidersburg.

Government Contract & Relations

• The company is executing on a $245 million sole-source antimony contract with the Defense Logistics Agency (DLA), and expects to complete the first 9.9 million pound delivery order nearly one year ahead of schedule. As of Q2, cumulative DLA orders total $57.3 million. Four grant applications totaling $275 million for antimony, tungsten, and hydrometallurgical projects have been submitted to the U.S. Departments of Energy and Defense, and feedback is still pending.
• The current U.S. administration has expressed strong support for domestic critical minerals mining, which the company expects will benefit its operations and grant applications.

Antimony Division Updates

• International feedstock procurement is active, with 300 tons of metallic feedstock received for DLA contract processing, and long-term contracts in place to support expanded production at Thompson Falls. The Bolivia antimony facility is now fully operational after resolving fuel and transport delays, with first shipments en route to the U.S. at a planned 150 tons per month output. The Bolivia operation provides a test case for the company's domestic hydrometallurgical scaling plans. The Americas Gold and Silver joint venture in Idaho continues to advance, with technology development and engineering work ongoing to process complex antimony-bearing feedstocks. The JV adds domestic processing capacity and enables monetization of co-products including silver.

Investor & Corporate Strategy

• Institutional ownership increased from 42% at the end of Q1 2026 to over 57% by the end of Q2 2026, with major passive managers including State Street and BlackRock increasing their positions. The company remains focused on disciplined acquisitions, only targeting properties that can start production within 12-18 months. The company's attempted takeover of Larvado Resources Limited is expected to be abandoned, resulting in a future liquidity event. The company highlights its fast execution: three high-grade properties (Stibnite Hill, Nolan Creek, Fostong Tungsten) were acquired within 18 months and are already moving toward production.

1. Antimony Segment: Q2 2026 revenue was $5.9 million, a 38.5% year-over-year decline from $9.6 million in Q2 2025. This segment contributed 74.7% of total Q2 2026 revenue. Pounds sold increased 26% YoY to 428,425 pounds, while average selling price fell 52% YoY to $13.70 per pound. Average production cost per pound declined 33% YoY to $13.34, partially offsetting lower prices.
2. Zeolite Segment: Q2 2026 revenue was $1.9 million, a 110% YoY increase from ~$0.9 million in Q2 2025. This segment contributed 24.1% of total Q2 2026 revenue. Tons sold increased 114% YoY driven by growth in the cattle nutrition channel. Gross profit for the segment increased $0.4 million to ~$1.1 million, supported by higher volume and lower per-ton production costs.

• Full year 2026 revenue guidance was lowered to $60-$75 million from prior guidance, with the downward revision driven solely by lower current market antimony prices, not reduced delivery volume expectations. The company is targeting completion of all awarded $57.3 million in DLA orders within 2026.
• Margin expansion is expected in H2 2026, as DLA contract deliveries begin to be recognized in financial results. Revenue from DLA shipments will start appearing in Q3 2026 results, following June/July deliveries and DLA acceptance.
• Domestic antimony production from new projects (Nolan Creek, Alaska; Stibnite Hill, Montana) is expected to ramp up starting in late 2026, increasing domestic supply and reducing reliance on purchased feedstock over time.

• Current antimony prices are significantly lower than 2025 levels, and management believes prices are being manipulated by Chinese suppliers, creating uncertainty about future pricing and margins for the segment. Price volatility has driven the downward revision to 2026 revenue guidance.
• DLA contract revenue recognition has been delayed compared to initial expectations, due to required government inspection and acceptance processes, which affected Q2 2026 financial results and will shift revenue to future quarters. Feedback on $275 million in pending government grant applications is delayed and entirely dependent on government timelines, which are outside the company's control.
• Domestic mining development has faced regulatory delays (e.g., Montana DEQ approval for Stibnite Hill mining) that pushed back production timelines. The joint venture hydrometallurgical project in Idaho has also experienced minor equipment, contractor, and logistics delays in 2026.
• The unrealized gain on the Larvado Resources investment was $6.8 million in Q2 2026, but the investment has depreciated by an additional $2.7 million after quarter end, and the company's attempted takeover is expected to be abandoned, creating future potential downside to the investment's carrying value.
• International feedstock supply from Bolivia previously faced national fuel shortages and domestic transport delays, which have since been resolved but highlight supply chain risk for international procurement.

Q: What is the company's planned H2 2026 delivery outlook, and is original guidance still achievable? / A: Management lowered full year 2026 revenue guidance to $60-$75 million, with the downward revision driven entirely by lower antimony market prices, not lower expected delivery volumes. The company will work as quickly as possible to complete all $57 million in awarded DLA orders within 2026, though final revenue will depend on processing and government approval timelines.

Q: What is the status of discussions around $250 million in federal strategic transactions, and will equity stakes/warrants/off-take be part of any deal structure? / A: The current U.S. administration favors taking equity stakes in critical minerals projects in exchange for government support, though the company may still receive some grants with no equity requirement. Management confirms it will only agree to an equity structure if it is accretive to existing shareholders, consistent with the company's history of disciplined capital raising.

Q: What is management's outlook for future antimony prices? / A: Management cannot predict future antimony prices with certainty, and expects prices will likely remain near current low levels through the end of 2026. Management believes current low prices are the result of intentional market manipulation by Chinese suppliers, so future price trajectory depends entirely on Chinese market policy.

Q: When will the company get feedback on pending government grant applications? / A: Grant timelines are fully controlled by the U.S. government, and management has no specific update on timing. Government officials have declined to share preliminary updates, so the company is using existing political contacts to advance the applications but cannot speed up the process.

Q: What is current antimony production from Alaskan projects, and what volume is included in the new H2 2026 guidance? / A: There is currently no commercial antimony production from any Alaskan projects. Exploration is ongoing this summer, and management expects to have mined ore available for processing by the end of the year. The only current domestic U.S. production is from the Stibnite Hill mine in Montana.