NYSE MKT: UAMY

 UNITED STATES ANTIMONY CORPORATION
   
 

NEWSROOM 2017

04/03/17  Chairman's letter
04/03/17  USAC reports mining in Mexico
03/28/17  USAC announces investor call
03/06/17  USAC reports antimony prices and production

02/06/17  USAC reports production
01/09/17  USAC reports Mexican production

 

 

 

 

 

 

 

 

 

Newsroom 2016

2016 USAC Brochure (.pdf)

 

Forward Looking Statements:

These Press Releases contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters related to the Company's operations, pending contracts and future revenues. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-KSB with the Securities and Exchange Commission.

print chairman's letter

CHAIRMAN’S LETTER

Dear Shareholders:

 

The year 2016 marked a major financial turnaround for USAC in spite of the lowest antimony prices in seven years. On a Company wide basis, USAC had a negative EBIDTA of $11,325 during 2016. Without a positive adjustment of $914,770, the EBIDTA for 2015 would have been a negative $820,515.  For 2016, the average price of antimony was $2.98 per pound, the lowest it has been in seven years. In 2015, the sale price was $3.97 per pound. Production of antimony increased from 2,487,321 pounds in 2015 to a new record of 2,936,886 pounds in 2016, and costs were reduced.

 

The smelting of custom concentrates from Australia was curtailed in late 2016, and the Company transitioned to smelter feed from its own mines at Wadley in San Luis Potosi, Mexico, and Soyatal in Queretaro, Mexico. Production from the Sierra Guadalupe Mine in Zacetecas will resume later in 2017. Antimony metal from Madero will be shipped directly to customers. This will provide the company with the full benefit of price increases, rather than a small percentage under the custom smelting agreements. Further savings will be realized in processing and trucking.  This will reduce the “non-production Mexican” holding costs for all the Company’s mines that have been a cost factor in the past.

 

The North American supply of sodium antimonite contained 1,369,142 pounds of antimony which produced 1,592,359 pounds of finished oxide, and it contained significant precious metals.

 

The sale of precious metals from North America in 2016 was a net $672,871 compared to $491,426 in 2015, an increase of $181,445 or 36.9%.

 

Product

2016

2015

%  change

Antimony pounds

2,936,880

2,487,321

+18.1

Gold ounces

604.75

89.12

+578.7

Silver ounces

38,123.46

30,420.75

+25..3

Zeolite tons

13,468

15,268

-11.8

 

During 2016, a caustic leach plant was installed in Mexico to recover gold and silver from the flotation concentrates from the Los Juarez gold-silver-antimony property in Queretaro, Mexico. Tests of the leach plant were completed in early 2017 and indicated a successful recovery. An application to add a cyanide leach circuit at the Puerto Blanco flotation mill was submitted, and is still being reviewed. The cyanide leach circuit will increase the gold and silver recovery. Further testing of the flotation circuit without the cyanide leach circuit will proceed in 2017 to determine whether the cyanide circuit is necessary.

 

The Bear River Zeolite (BRZ) in Preston, Idaho realized an EBIDTA of $447,775 in 2016 and a profit of $233,907 compared to an EBIDTA of $732,844 and a profit of $511,403 during 2015. The drop in profitability was a result of selling fewer tons of zeolite, the lack of sales to the oil and gas industry due to lower crude oil prices, and the increased expense of a sales program and product research.

 

The 2017 outlook for USAC is excellent due to the steady increase in antimony prices, the transition to our own properties in Mexico, and increasing zeolite production. The increased cash flow is expected to fund an increase in Mexican antimony production and the startup of production from the Los Juarez property on a pilot basis. USAC does not claim any reserves as defined by the SEC or Canadian Institute 43-101.

 

 

Sincerely, John Lawrence

CEO and Chairman

 

 

 

ANTIMONY OPERATIONS

 

 

ANTIMONY MARKET

 

The United States used an estimated 22,000 metric tons (approximately 48,501,000 pounds) of antimony in 2016. Of this amount, 35% went to metal products; primarily storage batteries and ammunition. Approximately 35% went to non-metal products including rubber, glass, and ceramics, and 30% went into flame retardants. The domestic market for USAC antimony products remained strong even though global prices deteriorated in a weak economic environment. In 2016, the U.S. Geological Survey estimated that Chinese production was 202,680 metric tons or 446,828,328 pounds. The Chinese control more than 90% of the world supply, and pricing can be volatile. Pricing of the metal is generally based on the London Metal Exchange average price C.I.F. Rotterdam per metric ton (a metric ton contains 2,204.6 pounds). Antimony oxide contains 83.1% antimony metal and it is typically our preferred product due to its premium pricing.

 

The “Mexican excess production costs” include holding costs for Los Juarez, Wadley, Soyatal, Guadalupe, and the Puerto Blanco mill. These costs are included in our production costs and have an important impact on profitability. In 2016, they added $357,706 to the costs of the production of antimony. These costs amounted to $.98 per pound of antimony production from Mexican properties.

 

WADLEY MINE AND MILL, SAN LUIS POTOSI, MEXICO

 

According to the U. S. Geological Survey, “by 1943 the ‘San Jose mines have produced more antimony than any other district in Mexico, and they have been surpassed in production by only one or two other deposits in the world.’ ” By 1943, the recorded production was 57,612 metric tons of contained antimony metal. Since that time the mine has probably produced another 25,000 metric tons of metal. 

 

For 2016, we have reduced our lease costs for Wadley by approximately $70,000 from 2015, and raised the mine grade from a minimum of 25% to a minimum of 35%.  The operation was in a care and maintenance mode until the end of 2016.  We expect Wadley to be the largest producer of Mexican antimony for us by the end of 2017.  Currently we have some 80 miners at work. We do not claim any reserves at Wadley as defined by the SEC. 

 

SOYATAL DISTRICT, QUERETARO, MEXICO

 

The deposit was the third largest antimony producer in Mexico. Donald E. White (U. S. Geological Survey Bulletin 960-B, Antimony Deposits of Soyatal District, State of Queretaro, Mexico, 1948) prepared an extensive report and said “that the production (p. 40) was estimated through 1943 at 25,630 metric tons of metal contained, and production since that time was substantial”. USAC owns the Soyatal District mines. During 2016, Soyatal produced a small amount of DSO (direct shipping ore for the smelter) and concentrates from low grade and dumps. We do not claim any reserves at Soyatal as defined by the SEC.

 

GUADALUPE, ZACETECAS, MEXICO

 

The Guadalupe mining property has been on care and maintenance since 2015. In the past, the property was mined extensively by the same company that mined the Wadley and Soyatal mines, but no production records or maps are known.  The ore from Guadalupe results in a very high grade concentrate of approximately 65% to 70% antimony.  We do not claim any reserves at Guadalupe as defined by the SEC.   

 

PUERTO BLANCO OXIDE/SULFIDE MILL, GUANAJUATO, MEXICO

 

In 2016, the Puerto Blanco mill processed legacy dump material from our Soyatal property using the oxide circuit, which is less than 10% of plant capacity. The flotation mill will be used in 2017 to process Los Juarez feed on a pilot basis.

 

MADERO SMELTER, COAHUILA, MEXICO

 

The Madero smelter produces very high quality antimony from Mexico. The Madero smelter has 17 small furnaces (SRF’s) and one large furnace (LRF). We are presently increasing production from our Mexican mining properties to replace Australian feed. We have installed a caustic leach plant at Madero to improve the recovery of precious metals from Los Juarez concentrates.

 

MONTANA SMELTER, THOMPSON FALLS, MONTANA

 

The Montana smelter at the USAC corporate headquarters in Thompson Falls, Mt., processes feed from Canadian, Mexican and Australian sources, recovers precious metals, and makes finished antimony oxide and metal.

 

HILLGROVE MINES, PTY. LTD. ARMIDALE, AUSTRALIA

 

In 2016, USAC processed concentrates from Hillgrove Mines Pty., Ltd, that contained 58% to 60% antimony and approximately 20 grams (0.64 ounces) of gold per metric ton.  In 2016, we receive 47 containers with approximately 960 metric tons of concentrate.  Hillgrove has notified us that it has shut down mining in Australia, and that we may receive some concentrates in the future.  We have processed all of the Hillgrove concentrates, and we are waiting to process the remaining Hillgrove slag to recover the remaining antimony and precious metals.

 

PRECIOUS METALS OPERATIONS

 

LOS JUAREZ, QUERETARO, MEXICO

 

USAC has mapped and mined central parts of the mineralized zones at Los Juarez that appear to be vertical breccia pipes over a strike length of 3.5 kilometers with a maximum width of one kilometer. The mineralization is “open” on three sides and to depth. After milling  3,500 metric tons of rock from the Mina Grande pit, the feed grade was determined to be approximately 0.789% antimony, 6.11 ounces of silver (189 grams), and 0.049 ounces of gold (1.52 grams) per metric ton.  A shallow but widespread drilling program was started in 2015 to identify the higher grade ore in the deposit. The global average based on these drill holes and rock chip samples was 0.057 ounces (1.77grams) gold, and 2.43 ounces (75.24 grams) silver, and 0.343% antimony per metric ton.  To date, less than 5% of the surface area of the property has been drilled.  A caustic leach plant was built at Madero during 2015 and 2016 to treat flotation concentrates from Puerto Blanco. An application for a cyanide leach circuit to increase flotation recovery from the flotation tailings at Puerto Blanco is in process.

 

The anticipated recoveries without the cyanide circuit are as follows: 

 

Metal

Assay

Recovery

Price

Value

Gold

0.044opmt

50%

$1,150/oz

$25.30

Silver

3.0 opmt

70%

$16.00/oz

$33.60

Antimony

0.71%

70%

$3.40/lb

$37.25

Total

 

 

 

$96.15

 

Following the successful operation of the 100 ton per day mill at Puerto Blanco and processing at Madero, an additional 400 ton per day mill will be completed and dedicated to Los Juarez ore at either Puerto Blanco or adjacent to the open pit at Los Juarez.  We claim no reserves at Los Juarez as defined by the SEC, and the drilling does not comply with Canadian NI 43-101.

 

CANADIAN SOURCE

 

Precious metals will be recovered from an off-take agreement with a Canadian source and are sold back to the Canadian producer at a discount.

 

PRECIOUS METAL PLANT, THOMPSON FALLS MONTANA.

 

Our precious metal refinery operated in Montana to recover gold from Hillgrove concentrates was in production in 2016. The plant will be used to finish Hillgrove concentrates and begin the processing of Los Juarez concentrates.

 

 

 

ZEOLITE OPERATIONS

 

During 2016, BRZ sold 13,143 tons compared to 15,901 tons in 2015, down 2,758 tons or 17.3%. BRZ realized a profit of $233,907 in 2016 after depreciation of $213,868 compared to a profit of $511,403 in 2015 after depreciation of $221,441. BRZ’s EBITDA for 2016 was $447,775, compared to an EBITDA of $732,844 for 2015. BRZ has embarked on a sales program with two field representatives and a research person that prepares sales brochures and literature that is gaining new customers.  Following are the 2015 applications of BRZ:
 

 

Application

Percent  by dollars

Percent  by tons

Animal feed

31.56

29.00

Water filtration

14.82

16.20

Mine water filtration

19.40

13.10

Air filtration

8.70

12.10

Soil amendment

7.95

9.10

Compost

4.46

6.00

Oil field

2.74

3.90

Traction

3.70

3.50

Waste water filtration

2.23

2.50

Miscellaneous

1.30

1.46

Synthetic turf

1.00

1.19

Odor control

0.85

0.80

Landscaping

0.61

0.70

Absorption

0.20

0.30

Distributors

0.32

0.30

Litter

0.35

0.30

Distribution

0.33

0.20

Pest control

0.25

0.30

Pigment

0.08

0.07

Total

100

100

 

 

 

Charts and HIGHLIGHTS 2016

 

 

 

 

All-Time Record Production

 

Precious Metal Sales

 

 

 

 

ZEOLITE

BEAR RIVER ZEOLITE

 

ANTIMONY OPERATIONS

 

 

 

......................  back to top  .........................

 

 

 

print this newsletter

U. S. ANTIMONY REPORTS MINING IN MEXICO

April 3, 2017. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reports the following production estimates for Q1, 2017:

Product

Q1, 2017

Q1, 2016

% Change

Antimony pounds

591,942

912,841

-35

Zeolite tons

3,356

3,097

+8

Gold ounces, North America

24.6

40.0

-38.5

Gold ounces, Australia

56.3867

34.977

+61.2

Silver ounces, North America

8,639

12,973

-33.4

Q1 2017 antimony production was lower than Q1 2016 due to the end of the processing of Australian concentrates. Since the beginning of 2017, the Company has accelerated the mining at Wadley and Soyatal to compensate for the Australian supply. During Q1 2017, these two properties produced an estimated 200,000 pounds of contained antimony for the Madero smelter. The smelter has only processed 132,092 pounds of metal that is being shipped to the United States as finished metal.  During this period, more furnaces were brought on line at Madero.

The Rotterdam price of antimony grade I metal has increased during Q1 2017 from $7,350 per metric ton ($3.33 per pound) to $8,750 per metric ton ($3.97 per pound). USAC will benefit from the increased prices especially with Mexican production.

Processing of the legacy Los Juarez flotation concentrates continues using the alkaline leach procedure and a furnace that is being relined in Montana. Flotation milling of the stockpiled mill feed will resume during Q2 to determine how critical a cyanide leach will be. Recent correspondence indicates that the Company could have the cyanide leach permit for the Puerto Blanco mill within 90 days. 

BRZ zeolite production during Q1 2017 was up from the same period in 2016 by 8% despite heavy snow that curtailed access from the mill to the mine.                    

CEO John Lawrence said “All efforts are focused on increasing Mexican  antimony output and starting the Los Juarez gold, silver, and antimony production.”

About U.S. Antimony

US Antimony is a growing, vertically-integrated natural resource company that has production and diversified operations in precious metals, zeolite and antimony. 

 

......................  back to top  .........................

 

print this newsletter

U. S. ANTIMONY ANNOUNCES INVESTOR CALL

March 28, 2017. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) will host an investor call at
4:00 P. M. EDT on Monday April 3, 2017 to review the 2016 10K financials.

 Conference Title:  United States Antimony Corp.

Conference ID:  7565931

 Dial In Information:

Toll free: 1-888-437-9445

International:  1-719-457-2627
 

Remote Replay available for 7 days:

Conference ID/Passcode:  7565931

Toll free:  1-888-203-1112

International:  1-719-457-0820

 

......................  back to top  .........................

 

print this newsletter

U. S. ANTIMONY REPORTS ANTIMONY PRICES AND  PRODUCTION

March 6, 2017. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reports significant price increases in antimony and that it has successfully transitioned from custom smelting antimony concentrates at the Madero, Coahuila, Mexico plant to its own mine production. This Company’s antimony business plan is to accelerate production from its Mexican antimony mines with internal cash flow. The mines had been idle for two years.

With its own antimony raw materials, USAC will benefit fully from price increases rather than just the smelting fees and small percentages of the price increases. Additionally, the company will enjoy lower processing and trucking costs. 

 

Production estimates for January and February 2017 as follows:
 

Product

January 2017

February 2017

January + February

Antimony pounds

158,989

185,883

344,872

Zeolite tons

1,229

1,042

2,229

Compared to 2016, antimony production was lower in Mexico during January and February 2017 due to the transition from the custom smelting to the start up of Mexican production from USAC mines. However, the Company expects production to ramp up from Wadley, Soyatal, and Guadalupe to utilize the smelter capacity at Madero. The Rotterdam price of antimony grade I metal has increased as follows:

Date

$ / metric ton

$ / pound

Increase / pound

% increase

Jan 1, 2016

5,291.00

2.40

 

 

Jan 1, 2017

7,300.00

3.31

0.91

37.9

Feb 28, 2017

8,500

3.86

0.55

16.6

Cumulative increases

3,209

 

1.46

60.8

The impact of this price increase on USAC is profound. During the first half of 2016, the Company sold product at the lowest price it had in seven years. The average USAC sale price for all of 2016 was $2.98 per pound. On March 2, the Rotterdam price was increased to $3.90 metal per pound.

Although further price increase cannot be predicted, the world reserves of antimony are being depleted and the costs of production are rising. China has the largest reserves of antimony, and it is now importing approximately 40% of their smelter feed. During January 2017, China (which produces about 90% of the world’s antimony) exported only 42 metric tons of metal. Normally they would export about 5,000 metric tons per month. Fortunately, USAC had the foresight to secure its own raw material sources in Mexico. 

BRZ zeolite production was up YOY in January and February 2017 by 274 tons or 14% even though heavy snow curtailed access to the mine for almost 4 weeks.                    

Processing of flotation concentrates using the alkaline leach procedure from the Los Juarez gold, silver, and antimony property in Queretaro, Mexico has confirmed good recovery. The Company expects to provide an update on the cyanide leach permit, which may not be necessary, and the start up of the mill on a pilot basis shortly.   

CEO John Lawrence said “Higher antimony prices and enhanced margins from mining its own Mexican properties will help USAC to expand its Mexican antimony production and start Los Juarez in the near future.”

 

......................  back to top  .........................

 

print this newsletter

U. S. ANTIMONY REPORTS PRODUCTION 

February 6, 2017. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported production estimates for 2016 and 2015 as follows:

Product

2016

2015

%  change

Antimony pounds

2,936,880

2,487,321

+18.1

Gold ounces

604.75

89.12

+578.7

Silver ounces

38,123.46

30,420.75

+25..3

Zeolite tons

13,468

15,268

-11.8

Antimony production during 2016 increased 18.1% over that of 2015 due to the increased supply of raw materials. During the first half of 2016, the Rotterdam price for metal hit a low of $2.40 per pound and by the end of the year it reached $3.52, an increase of $1.12 or 46.7% per pound

During January 2017, some 90,000 pounds of antimony were shipped from two of our Mexican mines to the smelter at Madero for processing into metal that will be sold to U.S. markets. This will provide a large savings in freight and processing costs compared to processing in Montana. Mine production is being ramped up as quickly as possible from internal cash flow. USAC will realize the full amount of antimony price increases by utilizing its own mines in Mexico. 

The alkaline leach plant in Mexico to recover gold and silver from the flotation concentrates from the Los Juarez property has been successfully tested. The flotation mill will be started during February 2017 to begin processing more Los Juarez feed to verify grades and flotation recoveries before we accelerate production. SEMARNAT (the Mexican equivalent of the EPA) has said they will have additional information on the cyanide leach circuit by the middle of March 2017. USAC does not claim any reserves in these properties in accordance with SEC definitions or per Canadian National Institute 43-101.

Bear River Zeolite customers are being increased with our new sales team that are visiting potential customers from coast to coast. They have focused on the dairy industry, but are now starting on the poultry, hog, and beef cattle industries. . 

CEO John Lawrence said “increasing antimony prices and the start of production from USAC properties in Mexico are expected to increase antimony profitability. The start of Los Juarez production should identify USAC as an emerging precious metal producer.”

CEO John Lawrence said “increasing antimony prices and the start of production from USAC properties in Mexico are expected to increase antimony profitability. The start of Los Juarez production should identify USAC as an emerging precious metal producer.”

About U.S. Antimony

US Antimony is a growing, vertically-integrated natural resource company that has production and diversified operations in precious metals, zeolite and antimony. 

 

......................  back to top  .........................

print this newsletter

U. S. ANTIMONY REPORTS MEXICAN PRODUCTION

January 9, 2017. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported that it has started production from its own Mexican antimony and gold and silver properties. January production could be approximately 50,000 pounds of antimony, and the production will be ramped up from internally generated cash flow.

The Company will produce metallic antimony in Mexico in 2017 for direct shipment to customers in the United States and other countries. This will provide a large savings in freight and processing costs compared to final processing in Montana. . Additionally, USAC will enjoy the full amount of antimony price increases rather than the small percentage it receives by smelting custom raw materials. The plans for the Mexican properties are as follows:

WADLEY, SAN LUIS POTOSI. During 2016, the property produced 277,867 pounds of DSO (“direct shipping ore”) with a grade of 35.9% antimony. Production of the high-grade will be augmented with the installation of a compressor and pneumatic hammers. The lower grade will be milled at Wadley to make concentrates that contain 25.1 to 41.2% antimony.

SOYATAL, QUERETARO.  During 2016, Soyatal produced 155,282 pounds of antimony from mill concentrates produced at the Puerto Blanco mill with an average grade of 24.6% antimony.. The milling of dumps will continue, and underground mining will begin to produce DSO.

GUADALUPE, ZACETECAS.  Guadalupe was idle during 2016. The Santa Monica drift will be reopened and DSO will be mined and the lower grade will be shipped to the mill at Puerto Blanco to make a high-grade sulfide concentrate for Madero.

LOS JUAREZ, QUERETARO. The alkaline leach plant in Mexico is being run to process concentrates from previous milling. SEMARNAT (the Mexican counterpart of the EPA) is reviewing the USAC application for a cyanide leach plant for the Puerto Blanco mill tailings. The flotation mill will be started during Q1 2017 to begin processing a 19,000 ton stockpile of Los Juarez rock without the cyanide circuit to verify previously disclosed estimates of recovered values.

USAC does not claim any reserves in these properties in accordance with SEC. definitions or per Canadian National Institute 43-101.

Following are the sales estimates for Q4 2016:

Product

 

Antimony pounds

632,801

BRZ zeolite tons

2,779

Precious metals $

73,363.97

CEO John Lawrence said “The three factors that will increase antimony profitability are (1) lower raw material costs from Mexico, (2) increasing Mexican production and (3) increased prices. Historically Wadley and Soyatal produced more than 6,000,000 pounds per year, and our costs per pound will go down with increasing Mexican production

About U.S. Antimony

US Antimony is a growing, vertically-integrated natural resource company that has production and diversified operations in precious metals, zeolite and antimony. 

 

......................  back to top  .........................

 

 

 

 

 Copyright © 2017 United States Antimony Corporation
 
Web design by
Beaver Creek Consultants