US Antimony: Strategic Investments Drive Growth Ambitions Amid Near-Term Losses and Expanding Defense Ties

Major Investments and Government Grants Set Stage for Revenue Acceleration

United States Antimony Corporation (NYSE: UAMY) delivered a first quarter 2026 update highlighting large-scale investment, major government contracts, and a deliberate ramp-up in critical minerals capacity—even as financial results reflected short-term losses. With $12.8 million in Department of War (DoW) grant milestones achieved and the first two notices of delivery issued under a $245 million Defense Logistics Agency (DLA) contract, US Antimony is positioning itself for accelerated revenue and strategic importance in the US critical minerals landscape.

Q1 Results Reflect Investment Phase as Expansion Projects Advance

Revenues fell slightly, but the quarter was characterized by significant investment: cash outflows funded a major inventory build, the Radersburg flotation mill acquisition ($4.8M), and the expansion of the Thompson Falls smelter. Operating expenses soared to $8.63M, driven by leadership expansion and increased share-based compensation. These factors combined for an $11.3M net loss—mostly non-cash, as management emphasized—but they lay the groundwork for significantly higher production and government-backed sales in upcoming quarters.

Vertically Integrated Platform Gaining Traction: Record Inventory and Government Funding

Antimony pounds sold fell 23% year-over-year, but the average realized price per pound jumped 22% to $19.92, and antimony inventory value rose 80.8% sequentially. Higher costs and delayed government contract shipments compressed margins, but this is expected to reverse as the company brings more in-house, low-cost ore to market and the Thompson Falls expansion becomes operational.

• DoW Grant: $12.8M in milestones achieved (from $27M total award), lowering future depreciation costs on the new smelter.
• DLA Contract: $12M in sales orders received; delivery notices already issued, though Q1 revenue not yet recognized.
• Fostung Project: Technical report indicates potential future tungsten revenue up to $4.6B.
• Liquidity: Pro forma liquidity after post-quarter equity issuance estimated at $108.7M.

Strategic Initiatives Position US Antimony at Center of US Critical Mineral Supply Chain

The company’s operational focus is now on fully integrating supply and refining operations. Key milestones include:

• Thompson Falls Smelter Expansion: Nearly complete, expected to boost USAC’s capacity and supply resilience.
• Acquisition of Radersburg Mill: Supports in-house production, eliminating lease costs and improving vertical integration.
• Hydrometallurgical Joint Venture: Newly formed with Americas Gold and Silver—a forward-looking move to expand critical minerals processing technology in North America.

Guidance Unchanged: Second Half Weighting Supported by Government Contracts and Smelter Ramp-Up

Management reiterated its full-year 2026 gross revenue outlook of approximately $125 million, with results expected to be second-half weighted as large government customers and internal production pipelines come online. The successful $48.6M equity raise post-quarter fortifies the company’s liquidity, enabling further project funding and execution against government orders.

Key Takeaway: Near-Term Losses Fund Next Phase of Growth as USAC Solidifies Defense and Minerals Leadership

While Q1 results showed a setback in traditional profit metrics, the underlying story is one of transformation: US Antimony is extending its reach in critical mineral supply, executing on government contracts, and investing in state-supported infrastructure. The material increase in antimony inventory, government grant receipts, and operational expansions all point to potentially stronger performance in subsequent quarters—especially as Thompson Falls and DLA deliveries gain momentum.

For investors, the risk is clear: execution and timing remain crucial. Yet, with $125M revenue guidance unchanged and a foundation built for US-focused critical minerals, US Antimony’s 2026 trajectory warrants close watching as industrial policy and mineral demand reshape the sector.

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