DALLAS - United States Antimony Corporation (NYSE:UAMY), a producer of antimony and zeolite products, has announced the signing of a definitive agreement to receive new shipments of antimony ore from Australia. The company, which has seen its stock surge over 400% in the past six months according to InvestingPro data, has demonstrated strong revenue growth of 28.4% over the last twelve months. This development comes as the company also plans to restart its Madero Antimony Smelter in Mexico, which was shut down in March 2024 due to a shortage of economically viable antimony material from local mines.
The Madero smelter, which has an engineered capacity of 200 tons per month, is set to undergo capital improvements estimated to cost under $1 million. These upgrades will involve complete refractory relining of rotary furnaces, along with maintenance of burners and other drive parts, to enhance material flow and processing capabilities. With a healthy current ratio of 6.24, InvestingPro data shows the company maintains strong liquidity to support these improvements.
The first batch of the newly sourced antimony ore is expected to arrive at the port of Manzanillo on the Mexican west coast in March 2025, following a roughly 75-day sea journey. Gary C. Evans, Chairman & CEO of US Antimony, expressed optimism about the agreement, stating that the quantity of antimony ore from this source could potentially increase to 300 tons per month as the company becomes more acquainted with its chemical and metallurgical properties.
US Antimony processes antimony ore into various products, including antimony oxide used in flame-retardant systems, antimony metal for bearings and batteries, and antimony trisulfide for ammunition primers. The company also mines and processes zeolite for a range of environmental and industrial applications and recovers gold and silver from antimony concentrates in Montana.
The press release includes forward-looking statements regarding the company's operations, contracts, revenue, financial performance, and production capabilities. These statements are based on current expectations and projections about future events, which are subject to risks, uncertainties, and changes over time.
This news article is based on a press release statement from United States Antimony Corporation. Analysts tracked by InvestingPro have set price targets ranging from $2.25 to $2.50 for UAMY, with the next earnings report expected on April 7, 2025. InvestingPro subscribers have access to 12 additional exclusive insights about UAMY, along with comprehensive financial analysis and real-time updates.
In other recent news, United States Antimony Corporation reported a 23% increase in sales to $8.1 million for the first nine months ending September 30, 2024, alongside a 107% rise in gross profit to $2.2 million. This financial growth was primarily driven by a 24% increase in antimony sales volume. In addition to these financial highlights, the company has recently acquired mining claims in Alaska and Ontario, significantly bolstering its reserves of critical minerals.
H.C. Wainwright initiated coverage on United States Antimony Corporation with a Buy rating and a price target of $2.50, reflecting confidence in the company's growth potential and strategic positioning within the critical minerals market. The firm highlighted the company's ability to adapt by sourcing materials internationally and expanding into zeolite production.
United States Antimony Corporation is also undertaking strategic initiatives to secure new antimony supplies in response to increased restrictions on rare earth minerals by China. The company is in negotiations with major firms for a 100% domestic supply of antimony products, aligning with a government executive order. As part of its growth strategy, the company is preparing for an increase in demand for domestic antimony supplies by 2027 and is exploring potential government grants and collaborations.
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