When words such as "mining" and "exploration" are used around the investment community, visions of gold or silver mines are about standard issue. While it is true that the majority of mining companies take that route to try and generate revenue, it does not depreciate the value of a great many other metals that are harvested from the earth to produce hundreds of millions of dollars annually.
With respect to the Over-the-Counter exchange, most miners are still in development and fewer still are operating profitably with any significant yearly income. As in so many instances, the road less traveled can lead to riches; or at least regular revenue.
Thompson Falls, MT-based United States Antimony Corp. (OTCBB:UAMY) fits neatly into that category with unique business strategies that separate it from the majority of publicly-traded basic materials companies. As the name implied, the Company is in the metal business as antimony is a metallic element having four allotropic forms, the most common of which is a hard, extremely brittle, silver-white, crystalline material.
Antimony is used in a vast amount of alloys, especially with lead in battery plates, and in the manufacture of flame-proofing compounds, paint, semiconductor devices, rubber, fiberglass, textile goods and ceramic products, to name just a few. Antimony metal prices have hit new all-time record highs as a result of the Chinese supply issue.
U.S. quotations for antimony metal are $7.375 per pound. United States Antimony also deals with zeolite, any of a large group of glassy secondary minerals consisting of hydrated aluminium silicates of calcium, sodium, or potassium generally formed in cavities in lava flows and plutonic rocks. Zeolite are microporous minerals commonly used as commercial adsorbents.
In addition to dealing with metals that the greater portion of the mining industry ignores in pursuit of gold, silver and copper, United States Antimony sets itself apart from the few competitors that it has. The Company is fully integrated, including mining, transportation, milling, smelting, and sales and operates the only significant antimony smelter in the United States.
US Antimony Corp. released financial reports this morning that reflect the positive direction of the Company. It reported a profit of $805,213 on sales of $9,073,324 for 2010 compared to a loss of $343,492 on sales of $4,103,340 for 2009. Sales had increased 121% from 2009 to 2010.
Its antimony sales rose from $2,567,107 in 2009 to $5,657,369 in 2010; representing growth of 159% as Zeolite sales increased from $1,536,233 to $2,415.955 in 2010 an increase of 57% as compared to the year prior. The Company has been experiencing a shift in strategy to mine wholly-owned properties in Mexico which resulted in profit being adversely affected by a non-cash writedown of $199,302 for moving the Mexican flotation mill and an additional Mexican start-up cost of $245,700.
United States Antimony’s production remains in a "sold-out" condition even with the establishment of new sources of raw materials from South and Central America, Australia, and Europe. John Lawrence, United States Antimony’s CEO, reported that various permitting issues to allow for the relocation of the Company’s Mexican mill are well underway. Once operational, the mill will allow the Company to produce its Los Jaurez antimony and silver property.
Investors appear to have stayed onboard with United States Antimony as the stock price has been in a solid upward channel since the beginning of 2009 when shares could be purchased for less than 20 cents each. The beginning of January 2011 saw the price climb as high at 66 cents, but has since slid back to the bottom side of the channel to bounce off of 41 cents to its current level over 50 cents.
Technically speaking, the indicators are aligning for a possible climb to a new high which may happen to be synchronizing with the operations in Mexico closing in upon commencement. Due diligence on this low float junior miner is encouraged to learn more about their latest operations and future plans.
