United States Antimony Corporation 2026 Q2 Earnings Call

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Hello? Okay. Thank you, Allie, and welcome to everybody, and thank you very much for joining us today.

First, I would like to start by introducing other members of our company's management team who will be joining me on this call today. We have five total speakers from management who will be talking about their respective divisions. They are as follows: Sean Winkler, our Interim Chief Financial Officer, Joe Bardswich, our Director and Executive Vice President and Chief Mining Engineer, Damian Coleman, who is Managing Director of our Government Affairs in D.C., who if you have not spoken to before, Aaron Tenasch, Vice President of our Antimony Division, and Jonathan Miller, who is Vice President of our investor relations area. I would like to start out by turning the call over to Sean Winkler, our Interim Chief Financial Officer, to go over the financial results that we have just reported a few minutes ago, to the public.

Sean. Thanks, Gary. This is my first full quarter with the company, and I continue to be extremely impressed with our senior management, our outstanding operating team, and working closely with our high-quality advisors.

It just continues to be an impressive team. Jumping to the numbers, second quarter 2026 revenue was around $7.9 million. That is compared to $10.5 million in the second quarter of 2025. That is a decline of approximately 25% year-over-year, and that is driven almost entirely by lower realized antimony pricing. Sequentially, compared to Q1, however, revenue was up 17% from the $6.8 million we reported in the first quarter, reflecting higher antimony volumes and continued strength in our zeolite segment. On a six-month year-to-date basis, revenue was $14.7 million compared to $17.5 million for the first half of 2025.

That is a 16% decrease that again, as the aforementioned year-over-year decline in realized antimony prices, partially offset by higher volumes. Jumping into our segment breakdown, antimony revenue was $5.9 million in the second quarter compared to $9.6 million in the prior year period. While our pounds sold increased approximately 26% year-over-year to 428,425 pounds, average selling prices declined approximately 52% from $28.32 per pound to $13.70 per pound, reflecting broader antimony market price conditions. Importantly, average cost per pound also declined approximately 33% to $13.34, partially mitigating the impact of lower selling prices, but not fully offset. Zeolite segment continues its strong growth trajectory.

Revenue increased 110% year-over-year to $1.9 million from close to $1 million, driven by a 114% increase in tons sold. Our execution, the broadened sales channels, especially in our cattle nutrition growth segment, has demonstrated success. Zeolite gross profit increased $0.4 million to about $0.1 million, benefiting from higher sales volume and lower average production cost per ton. Jumping to gross profit and operating loss and non-cash items. Gross profit for the quarter was $0.6 million, or approximately 7% gross margin. That compares to $2.8 million and 27% margin in the prior year quarter. The margin compression is almost entirely attributable to antimony price declines, as previously discussed.

Operating expense was $7.6 million in the second quarter compared to $2.8 million in the prior year period. The increase primarily reflects higher non-cash share-based compensation expense, increased salaries and employee benefits associated with the company's expanded leadership team and operational infrastructure to match the growth projections we have in the back half of the year into 2027 and higher professional fees supporting several growth initiatives. Operating loss for the quarter was about $7 million. It is important to note that this operating loss includes about $3.4 million of net non-cash items, the aforementioned $2.9 million in SBC, and about half a million of D&A. Jumping to net income. Reported net income for the second quarter was about $0.1 million, compared to net income of $0.2 million in the prior year quarter.

The operating loss that I just mentioned was more than offset by two items. $6.8 million of unrealized gain from our investment in Larvotto Resources Limited, plus $0.4 million of interest in investment income. Importantly, since quarter end, the Larvotto investment has continued to appreciate. As we detailed, it is about $2.7 million of additional increase since quarter end. Jumping to the balance sheet and our liquidity, we ended the quarter with a materially stronger position than three months ago. Cash and cash equivalents were $41.4 million as of June 30th, 2026, compared to $3.2 million at March 31st and $30.5 million at December 31st, 2025. We hold an additional $20.7 million in US Treasuries held to maturity for total liquidity of cash, plus those Treasuries of $62.2 million. Total assets grew $42.6 million during the first half of the year to $190.6 million.

Working capital doubled to $70 million from $35 million at the end of the first quarter. Total liabilities declined $3.4 million to $9.6 million. Our debt remains de minimis. If you add the Larvotto strategic equity investment of $43.2 million, total cash investments in marketable securities on the balance sheet as of June 30th stood at $105 million. Digging into the balance sheet a little bit. Inventory at quarter end was $21.6 million, up from $12.5 million at December 31st, 2025, and $6.4 million at June 30th, 2025. This build-up is intentional and reflects our strategy of building feedstock and ultimately our ability to provide finished goods to support our DLA contract and other expected antimony commercial demand. Our inventory position is subject to normal lower of cost to market analysis each quarter, and inventory is carried at the lower of cost or net realizable value.

Jumping to cash flow. For the six months ended June 30th, net cash used in operating activities was $20.7 million, primarily reflecting our working capital investment. That is the inventory build-up I just described. Net cash used in investing activities was $11.1 million, and net cash provided by financing activities was $43.4 million. The financing inflow was primarily driven by net proceeds from equity issuance in April, which were detailed as a subsequent event in our Q1 financials. Average execution on those share sales was $11.56 per share. Capital expenditures for the first six months totaled $22.8 million on a gross basis, primarily to advance our Thompson Falls expansion, complete and upgrade our Radersburg flotation mill, including adding a first-in-class laboratory and funding other strategic capital investments, including several new mining claims in Alaska and Montana.

Against those investments, in April, we received $12.8 million of the milestone-based funding under our DPA grant award from the Department of War, bringing net capital deployed in the first half to approximately $10 million. I do want to highlight a subsequent event in our financials this quarter. In June, we did deliver our first two shipments of antimony ingots to the DLA, totaling approximately 82,000 pounds. Unfortunately, we did not receive final approval acceptance from the DLA until July, so that sale will be reflected in our Q3 financials. With that, I'll hand it back to Gary.

Thank you, Sean. I'd like to turn the call over now to Joe Bardswich to talk about our actual mining activities. Joe. Thank you. Starting in the east with our tungsten deposit located near Espanola, Ontario.