10-Q 1 uamy_10q.htm QUARTERLY REPORT Blueprint
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
(Mark One)
 
[X] 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
 
[ ] 
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period _______ to _______
 
 
Commission file number 001-08675
 
UNITED STATES ANTIMONY CORPORATION
(Exact name of registrant as specified in its charter)
 
Montana
 
81-0305822
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
P.O. Box 643, Thompson Falls, Montana
 
59873
(Address of principal executive offices)
 
(Zip code)
 
Registrant’s telephone number, including area code: (406) 827-3523
 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  No ☐
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer”, “small reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer ☐
Accelerated Filer ☐
Non-Accelerated Filer ☐
Smaller reporting company ☒

Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
 
Indicate by check mark whether the registrant is a shell company as defined by Rule 12b-2 of the Exchange Act.    YES ☐ No 
 
At November 14, 2019, the registrant had outstanding 69,661,436 shares of par value $0.01 common stock.
 
 
 

UNITED STATES ANTIMONY CORPORATION
QUARTERLY REPORT ON FORM 10-Q
FOR THE PERIOD
ENDED SEPTEMBER 30, 2019
(UNAUDITED)
 
TABLE OF CONTENTS
 
 
 

[The balance of this page has been intentionally left blank.]
 
 
PART I-FINANCIAL INFORMATION
 
Item 1. Financial Statements
 
United States Antimony Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
 
 
 
ASSETS
 
 
 
September 30,
 
 
December 31,
 
 
 
2019
 
 
2018
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $71,758 
 $56,650 
Certificates of deposit
  253,552 
  252,954 
Accounts receivable
  322,940 
  438,391 
Inventories
  708,074 
  755,261 
Note receivable - sale of land
  - 
  400,000 
Total current assets
  1,356,324 
  1,903,256 
 
    
    
Properties, plants and equipment, net
  15,229,807 
  15,227,172 
Restricted cash for reclamation bonds
  57,248 
  57,247 
IVA receivable and other assets
  329,947 
  369,448 
Total assets
 $16,973,326 
 $17,557,123 
 
    
    
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
    
    
    Checks issued and payable
 $31,705 
 $46,482 
Accounts payable
  2,060,557 
  1,926,320 
Due to factor
  59,104 
  16,524 
Accrued payroll, taxes and interest
  200,362 
  159,037 
Other accrued liabilities
  401,376 
  353,911 
Payables to related parties
  343,263 
  93,567 
Deferred revenue
  32,400 
  32,400 
Notes payable to bank
  198,228 
  183,917 
Long-term debt, current portion, net of discount
  851,766 
  705,460 
Total current liabilities
  4,178,761 
  3,517,618 
 
    
    
Long-term debt, net of discount and current portion
  876,073 
  1,027,730 
Hillgrove advances payable
  1,134,221 
  1,134,221 
Stock payable to directors for services
  96,875 
  175,000 
Asset retirement obligations and accrued reclamation costs
  282,331 
  277,720 
Total liabilities
  6,568,261 
  6,132,289 
Commitments and contingencies (Note 7 an 11)
    
    
 
    
    
Stockholders' equity:
    
    
Preferred stock $0.01 par value, 10,000,000 shares authorized:
    
    
Series A: -0- shares issued and outstanding
  - 
  - 
Series B: 750,000 shares issued and outstanding
    
    
(liquidation preference $930,000 and $922,500
    
    
 respectively)
  7,500 
  7,500 
Series C: 177,904 shares issued and outstanding
    
    
(liquidation preference $97,847 both years)
  1,779 
  1,779 
Series D: 1,751,005 shares issued and outstanding
    
    
(liquidation preference $5,002,470 and $4,961,324
    
    
 respectively)
  17,509 
  17,509 
Common stock, $0.01 par value, 90,000,000 shares authorized;
    
    
69,661,436 and 68,227,171 shares issued and outstanding, respectively
  696,614 
  682,271 
Additional paid-in capital
  37,134,853 
  36,406,874 
Accumulated deficit
  (27,453,190)
  (25,691,099)
Total stockholders' equity
  10,405,065 
  11,424,834 
Total liabilities and stockholders' equity
 $16,973,326 
 $17,557,123 
 
The accompanying notes are an integral part of the consolidated financial statements.
 
 
1
 
 
 
 
 
  For the three months ended
 
 
For the nine months ended
 
 
 
September 30, 2019
 
 
September 30, 2018
 
 
September 30, 2019
 
 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUES
 $1,787,934 
 $2,091,725 
 $6,516,582 
 $6,781,001 
 
    
    
    
    
COST OF REVENUES
  2,058,751 
  2,268,854 
  7,029,647 
  6,871,870 
 
    
    
    
    
GROSS PROFIT (LOSS)
  (270,817)
  (177,129)
  (513,065)
  (90,869)
 
    
    
    
    
OPERATING EXPENSES (INCOME):
    
    
    
    
     General and administrative
  139,456 
  151,825 
  498,539 
  489,067 
     Salaries and benefits
  91,178 
  93,723 
  424,208 
  281,596 
     Professional fees
  40,010 
  211,583 
  163,204 
  332,550 
    Other operating expenses
  - 
  - 
  86,630 
  - 
 Gain on plant acquisition (Note 13)
  - 
  (1,500,000)
  - 
  (1,500,000)
TOTAL OPERATING EXPENSES (INCOME)
  270,644 
  (1,042,869)
  1,172,581 
  (396,787)
 
    
    
    
    
INCOME (LOSS) FROM OPERATIONS
  (541,461)
  865,740 
  (1,685,646)
  305,918 
 
    
    
    
    
OTHER INCOME (EXPENSE):
    
    
    
    
Interest income
  19 
  19 
  791 
  849 
Gain on tax settlement (Note 11)
  - 
  443,110 
  - 
  443,110 
Interest expense
  (24,444)
  (27,516)
  (71,160)
  (76,163)
Foreign exchange loss
  - 
  (12,752)
  - 
  - 
Factoring expense
  (2,706)
  (1,154)
  (6,076)
  (3,492)
TOTAL OTHER INCOME (EXPENSE)
  (27,131)
  401,707 
  (76,445)
  364,304 
 
    
    
    
    
NET INCOME (LOSS) BEFORE INCOME TAXES
  (568,592)
  1,267,447 
  (1,762,091)
  670,222 
 
    
    
    
    
     Preferred dividends
  (12,162)
  (12,162)
  (36,487)
  (36,487)
 
    
    
    
    
   Net income (loss) available to common stockholders
 $(580,754)
 $1,255,285 
 $(1,798,578)
 $633,735 
 
    
    
    
    
Net income (loss) per share of common stock:
    
    
    
    
Basic
 $(0.02)
 $0.02 
 $(0.01)
 $0.01 
Diluted
 $(0.02)
 $0.02 
 $(0.01)
 $0.01 
 
    
    
    
    
Weighted average shares outstanding:
    
    
    
    
Basic
  69,224,297 
  68,227,171 
  68,818,050 
  67,894,207 
Diluted
  69,224,297 
  68,373,471 
  68,818,050 
  67,992,339 
 
The accompanying notes are an integral part of the consolidated financial statements.
 
 
2
 
 
 
United States Antimony Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
 
 
 
 
 
 
 
 
 
For the nine months ended
 
 
 
September 30, 2019
 
 
September 30, 2018
 
Cash Flows From Operating Activities:
 
 
 
 
 
 
Net income (loss)
 $(1,762,091)
 $670,222 
Adjustments to reconcile net income (loss) to net cash
    
    
provided (used) by operating activities:
    
    
Depreciation and amortization expense
  732,702 
  678,010 
Gain on tax settlement
  - 
  (443,110)
Gain on plant acquisition
  - 
  (1,500,000)
Amortization of loan discount
  54,110 
  63,360 
Accretion of asset retirement obligation
  4,611 
  4,611 
Common stock issued for services
  136,000 
  - 
Common stock payable for director fees
  96,875 
  131,250 
Foreign exchange (gain) loss
  - 
  - 
Other non-cash items
  (598)
  (681)
Change in:
    
    
Accounts receivable, net
  115,451 
  (211,637)
Inventories
  47,187 
  197,813 
Other current assets
  - 
  4,697 
IVA receivable and other assets
  39,501 
  (91,592)
Accounts payable
  134,237 
  28,619 
Accrued payroll, taxes and interest
  41,325 
  (49,984)
Deferred revenues
  - 
  (27,649)
Other accrued liabilities
  47,465 
  161,486 
Payables to related parties
  29,683 
  33,669 
Net cash provided (used) by operating activities
  (283,542)
  (350,916)
 
    
    
Cash Flows From Investing Activities:
    
    
Purchase of properties, plants and equipment
  (677,837)
  (411,571)
Payment received on note receivable for sale of land
  400,000 
  - 
Proceeds from plant acquisition
  - 
  1,500,000 
Net cash provided (used) by investing activities
  (277,837)
  1,088,429 
 
    
    
Cash Flows From Financing Activities:
    
    
   Net proceeds from (payments to) factor
  42,580 
  5,168 
   Checks issued and payable
  (14,777)
  13,572 
   Stock issued for cash
  431,322 
  - 
   Advances from related parties
  237,400 
  125,000 
   Payments on advances from related party
  (17,387)
  (125,000)
Advances from notes payable to bank
  14,311 
  (92,565)
Principal payments on long-term debt
  (116,961)
  (178,504)
Net cash provided (used) by financing activities
  576,488 
  (252,329)
 
    
    
NET INCREASE IN CASH AND CASH EQUIVALENTS
  15,109 
  485,184 
Cash and cash equivalents and restricted cash at beginning of period
  113,897 
  91,332 
Cash and cash equivalents and restricted cash at end of period
 $129,006 
 $576,516 
 
    
    
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
    
Noncash investing and financing activities:
    
    
Common stock payable issued to directors
 $175,000 
 $175,000 
 
The accompanying notes are an integral part of the consolidated financial statements.
 
 
3
 
 
United States Antimony Corporation and Subsidiaries
Consolidated Statement of Changes in Stockholders' Equity (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three month periods ended September 30, 2019 and September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
Total
 
 
 
Total Preferred Stock
 
 
Common Stock
 
 
Paid
 
 
Accumulated
 
 
Stockholders'
 
Three months ended September 30, 2019
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
In Capital
 
 
Deficit
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, July 1, 2019
  2,678,909 
 $26,788 
  68,757,354 
 $687,573 
 $36,712,572 
 $(26,884,598)
 $10,542,335 
 
    
    
    
    
    
    
    
Issuance of common stock for cash
    
    
  904,082 
  9,041 
  422,281 
    
  431,322 
Net loss
    
    
    
    
    
  (568,592)
  (568,592)
Balances, September 30, 2019
  2,678,909 
 $26,788 
  69,661,436 
 $696,614 
 $37,134,853 
 $(27,453,190)
 $10,405,065 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
Total
 
 
 
Total Preferred Stock
 
 
Common Stock
 
 
Paid
 
 
Accumulated
 
 
Stockholders'
 
Three months ended September 30, 2018
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
In Capital
 
 
Deficit
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, July 1, 2018
  2,678,909 
 $26,788 
  68,227,171 
 $682,271 
 $36,406,874 
 $(27,161,549)
 $9,954,384 
 
    
    
    
    
    
    
    
Net income
    
    
    
    
    
  1,267,447 
  1,267,447 
Balances, September 30, 2018
  2,678,909 
 $26,788 
  68,227,171 
 $682,271 
 $36,406,874 
 $(25,894,102)
 $11,221,831 
 
For the nine month periods ended September 30, 2019 and September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
Total
 
 
 
Total Preferred Stock
 
 
Common Stock
 
 
Paid
 
 
Accumulated
 
 
Stockholders'
 
Nine months ended September 30, 2019
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
In Capital
 
 
Deficit
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, January 1, 2019
  2,678,909 
 $26,788 
  68,227,171 
 $682,271 
 $36,406,874 
 $(25,691,099)
 $11,424,834 
 
    
    
    
    
    
    
    
 
Issuance of common stock to chief financial officer
 
    
  200,000 
  2,000 
  134,000 
    
  136,000 
Issuance of common stock to Directors
    
    
  330,183 
  3,302 
  171,698 
    
  175,000 
Issuance of common stock for cash
    
    
  904,082 
  9,041 
  422,281 
    
  431,322 
Net loss
    
    
    
    
    
  (1,762,091)
  (1,762,091)
Balances, September 30, 2019
  2,678,909 
 $26,788 
  69,661,436 
 $696,614 
 $37,134,853 
 $(27,453,190)
 $10,405,065 
 
 
 
 
 
 
 
 
 
Additional 
 
 
 
 
 
 
 
 
 
Total Preferred Stock
 
 
Common Stock
 
 
Paid
 
 
Accumulated
 
 
Stockholders'
 
Nine months ended September 30, 2018
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
In Capital
 
 
Deficit
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, January 1, 2018
  2,678,909 
 $26,788 
  67,488,153 
 $674,881 
 $36,239,264 
 $(26,564,324)
 $10,376,609 
 
    
    
    
    
    
    
    
Issuance of common stock to Directors
    
    
  739,018 
  7,390 
  167,610 
    
  175,000 
Net income
    
    
    
    
    
  670,222 
  670,222 
Balances, September 30, 2018
  2,678,909 
 $26,788 
  68,227,171 
 $682,271 
 $36,406,874 
 $(25,894,102)
 $11,221,831 
 
The accompanying notes are an integral part of the consolidated financial statements.
 
 
4
 
 
PART I - FINANCIAL INFORMATION, CONTINUED:
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
 
1.
Basis of Presentation
 
The unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019.
 
For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.
 
Going Concern Consideration
 
At September 30, 2019, the Company’s consolidated financial statements show negative working capital of approximately $2.8 million and accumulated deficit of approximately $27.5 million.  In addition, the Company has a net loss of $1,762,091 and cash used in operations of $283,542 for the nine-month period ended September 30, 2019. The Company has had recurring operating losses for most of the prior periods.  These factors indicate that there is substantial doubt regarding the ability to continue as a going concern for the next twelve months. 
 
The continuing losses are principally a result of the falling prices of antimony and production costs incurred in Mexico.
 
Antimony prices decreased approximately 14% in the first nine months of 2019 compared to the same period in the prior year.  For the nine months ended September 30, 2019, the average sale price for antimony was approximately $3.56 per pound compared to a price of $4.14 per pound for the nine months ended September 30, 2018. In addition, during 2019, we have endured supply interruptions from our North American supplier and shipments have resumed although at a lower level than years prior to 2018. A new supply agreement negotiated with our North American supplier in 2017 helped us with cash flow from our antimony division in 2018, but the continued decrease in prices for antimony have caused us to negotiate a better supply agreement in 2019 which will help us with our cash flow situation. We negotiated a $73,469 decrease in our raw material cost with the supplier for the third quarter.
 
Since 2017, we have continually reduced labor and other operating costs at our Mexico locations which have resulted in a lower overall production cost in Mexico. In June 2019, we reached agreement with our miners in Mexico to further reduce labor costs. In 2019, we completed installation of three of the large rotating furnaces (LRFs) we obtained from the Lanxess transaction. The Company’s 2019-2020 plan involves ramping up production at our antimony properties in Mexico utilizing the additional LRFs obtained from Lanxess. As a result, we expect to increase the antimony output from our Mexican properties in 2020. In 2019, we began selling antimony metal directly from Mexico to customers which saves us approximately $0.38 per pound in processing costs and freight.
 
On September 16, 2019, we were awarded a grant for $510,528 to provide the Defense Logistics Agency of the Department of Defense with six samples of antimony tri-sulfide for testing to determine the consistency for making primers for ordnance per military specification MIL-A-159D. We will be paid $85,088 per sample over the next twelve months.
 
 
5
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
 
1.
Basis of Presentation, continued:
 
The portion of the precious metals recovery system at the Madero smelter is complete and the cyanide leach circuit being built at the Puerto Blanco plant is complete except for the assaying and lab equipment which will be tested in the fourth quarter of 2019. We expect to be receiving income from the production of precious metals some time during the first half of 2020.
 
Over the past several years, the Company has made principal payments on most of its debt from cash generated from operations without the need for additional borrowings or selling shares of its common stock. However, we are delinquent on some debt payments (see Note 9).
 
On November 14, 2019, we completed a common stock private placement for $431,322 to complete the precious metals circuit at our Puerto Blanco milling facility and to make cost saving repairs at our Montana smelter.
 
Management believes that the actions taken to increase production from both antimony and precious metals coupled with a reduction in production costs will enable the Company to meet most of its obligations for the next twelve months. However, due to the uncertainty of the price of antimony and other operating factors, there is the likelihood that some obligations will not be met.
 
2. 
Developments in Accounting Pronouncements
 
Accounting Standards Updates Adopted
 
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 Leases (Topic 842).  The update modified the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases.  The update was effective for fiscal years beginning after December 15, 2018, with early adoption permitted.  Adoption of this update as of January 1, 2019 did not have a material impact on the Company’s consolidated financial statements.
 
In June 2018, the FASB issued ASU No. 2018-07 Compensation - Stock Compensation (Topic 718):  Improvements to Nonemployee Share-Based Payment Accounting.  The update involves simplification of several aspects of accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718 to include nonemployee awards.  The update was effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted.  Adoption of this update as of January 1, 2019 did not have a material impact on the Company’s consolidated financial statements.
 
Accounting Standards Updates to Become Effective in Future Periods
 
In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820):  Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.  The update removes, modifies and makes additions to the disclosure requirements on fair value measurements.  The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted.  Management is evaluating the impact of this update on the Company’s fair value measurement disclosures.
 
 
6
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
 
3. 
Income (Loss) Per Common Share
 
Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock.
 
Included in the calculation of diluted earnings per share for the three and nine-month periods ended September 30, 2018 are 250,000 shares of common stock warrants. For the three and nine months ended September 30, 2019 and 2018, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:
 
 
 
September 30, 2019
 
 
September 30, 2018
 
Warrants
  702,041 
  - 
Convertible preferred stock
  1,751,005 
  1,751,005 
Total possible dilution
  2,453,046 
  1,751,005 
 
4. 
Revenue Recognition
 
Our products consist of the following:
Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide, and antimony metal
Zeolite: includes coarse and fine zeolite crushed in various sizes
Precious Metals: includes unrefined and refined gold and silver
 
For our antimony and zeolite products, revenue is recognized upon the completion of the performance obligation which is met when the transaction price can be reasonably estimated and revenue is recognized generally at the time when risk is transferred. We have determined the performance obligation is met and title is transferred either upon shipment from our warehouse locations or upon receipt by the customer as specified in individual sales orders. The performance obligation is met because at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the product and obtained the ability to realize all of the benefits from the product, 3) the customer has the significant risks and rewards of ownership to it, 4) it is very unlikely product will be rejected by the customer upon physical receipt, and 5) we have the right to payment for the product. Shipping costs related to the sales of antimony and zeolite products are recorded to cost of sales as incurred. For zeolite products, royalty expense due a third party by the Company is also recorded to cost of sales upon sale in accordance with terms of underlying royalty agreements.
 
For sales of precious metals, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer. Refining and shipping costs related to sales of precious metals are recorded to cost of sales as incurred.
 
Sales of products for the three and nine month periods ended September 30, 2019 and 2018 were as follows:
 
 
 
Three Months Ended
 
 
NineMonths Ended
 
 
 
September 30,
 
 
September 30,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Antimony
 $1,080,871 
 $1,366,540 
 $4,294,281 
 $4,540,873 
Zeolite
  651,563 
  653,365 
  2,081,751 
  2,026,605 
Precious metals
  55,500 
  71,820 
  140,550 
  213,523 
 
 $1,787,934 
 $2,091,725 
 $6,516,582 
 $6,781,001 
 
 
7
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
 
4. 
Revenue Recognition, continued:
 
The following is sales information by geographic area based on the location of customers for the three and nine-month periods ended September 30, 2019 and 2018:
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
September 30,
 
 
September 30,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
United States
 $1,570,364 
 $1,876,218 
 $5,498,640 
 $6,151,068 
Canada
  217,570 
  215,507 
  544,350 
  629,933 
Mexico
  - 
  - 
  473,592 
  - 
 
 $1,787,934 
 $2,091,725 
 $6,516,582 
 $6,781,001 
 
Sales of products to significant customers were as follows for the three and nine month periods ended September 30, 2019 and 2018:
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
Sales to Three
 
September 30,
 
 
September 30,
 
 
September 30,
 
 
September 30,
 
Largest Customers
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Axens North America
 $128,805 
 $- 
 $- 
 $- 
Ampacet Corporation
  - 
  142,414 
  - 
  472,674 
Mexichem Specialty Compounds Inc.
  314,008 
  587,568 
  1,373,533 
  1,985,249 
Kohler Corporation
  - 
  471,358 
  1,028,624 
  1,122,908 
Nyacol Nanotechnologies
  374,070 
  - 
  778,394 
  - 
 
 $816,883 
 $1,201,340 
 $3,180,551 
 $3,580,831 
% of Total Revenues
  46%
  57%
  49%
  53%
 
Accounts receivable from largest customers were as follows for September 30, 2019 and December 31, 2018:
 
Accounts Receivable
 
September 30, 2019
 
 
December 31, 2018
 
DanaMart
 $- 
 $143,890 
Axens North America Inc.
  46,654 
  34,912 
Earth Innovations Inc.
  35,584 
  35,967 
Ralco Mix Products
  26,080 
  - 
 
 $108,318 
 $214,769 
% of Total Receivables
  34%
  49%
 
Our trade accounts receivable balance related to contracts with customers was $322,940 at September 30, 2019 and $438,391 at December 31, 2018. Our products do not involve any warranty agreements and product returns are not typical.
 
We have determined our contracts do not include a significant financing component. For antimony and zeolite sales contracts, we may factor certain receivables and receive final payment within 30 days of the performance obligation being met. For antimony and zeolite receivables not factored, we typically receive payment within 10 days. For precious metals sales, a provisional payment of 75% is typically received within 45 days of the date the product is delivered to the customer. After an exchange of assays, a final payment is normally received within 90 days of product delivery.
 
 
8
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
 
5.
Inventories
 
Inventories at September 30, 2019 and December 31, 2018 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight. Inventory at September 30, 2019 and December 31, 2018 is as follows:
 
 
 
September 30,
 
 
December 31,
 
 
 
2019
 
 
2018
 
Antimony Metal
 $37,346 
 $8,127 
Sodium Antimonate
  28,568 
  - 
Antimony Oxide
  147,304 
  255,782 
Antimony Concentrates
  - 
  2,214 
Antimony Ore
  198,492 
  257,067 
     Total antimony
  411,710 
  523,190 
Zeolite
  296,364 
  232,071 
 
 $708,074 
 $755,261 
 
6.
Accounts Receivable and Due to Factor
 
The Company factors designated trade receivables pursuant to a factoring agreement with LSQ Funding Group L.C., an unrelated factor (the “Factor”).  The agreement specifies that eligible trade receivables are factored with recourse. We submit selected trade receivables to the factor, and receive 83% of the face value of the receivable by wire transfer. The Factor withholds 15% as retainage, and 2% as a servicing fee. Upon payment by the customer, we receive the remainder of the amount due from the factor. The 2% servicing fee is recorded on the consolidated statement of operations in the period of sale to the factor. John Lawrence, CEO, is a personal guarantor of the amount due to Factor. 
 
Trade receivables assigned to the Factor are carried at the original invoice amount less an estimate made for doubtful accounts.  Under the terms of the recourse provision, the Company is required to reimburse the Factor, upon demand, for factored receivables that are not paid on time.  Accordingly, these receivables are accounted for as a secured financing arrangement and not as a sale of financial assets.  The allowance for doubtful accounts (if any) is based on management’s regular evaluation of individual customer’s receivables and consideration of a customer’s financial condition and credit history.  Trade receivables are written off when deemed uncollectible.  Recoveries of trade receivables previously written off are recorded when received.  Interest is not charged on past due accounts.
 
We present the receivables, net of allowances, as current assets and we present the amount potentially due to the Factor as a secured financing in current liabilities.
 
Accounts Receivble
  
September 30,
2019
 
 
December 31,
2018
 
Accounts receivable - non factored
 $263,836 
 $421,867 
Accounts receivable - factored with recourse
  59,104 
  16,524 
      Accounts receivable - net
 $322,940 
 $438,391 
 
 
9
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
7. 
Commitments and Contingencies
 
In June of 2013, the Company entered into a lease to mine antimony ore from concessions located in the Wadley Mining district in Mexico. The lease calls for a term of one year and, as of September 30, 2019, requires payments of $10,000 plus a tax of $1,700, per month. The lease is renewable each year with a 15 day notice to the lessor and agreement of terms. The next lease is scheduled for renewal in June 2020.
 
8. 
Notes Payable to Bank
 
At September 30, 2019, and December 31, 2018, the Company had the following notes payable to bank:
 
 
 
 
 
 
 
 
 
September 30,
 
 
December 31,
 
 
 
2019
 
 
2018
 
Promissory note payable to First Security Bank of Missoula,
 
 
 
 
 
 
bearing interest at 3.150%, payable on demand, collateralized
 
 
 
 
 
 
by a lien on Certificate of Deposit
 $99,999 
 $83,918 
 
    
    
Promissory note payable to First Security Bank of Missoula,
    
    
bearing interest at 3.150%, payable on demand, collateralized
    
    
by a lien on Certificate of Deposit
  98,229 
  99,999 
Total notes payable to the bank
 $198,228 
 $183,917 
 
These notes are personally guaranteed by John C. Lawrence the Company’s Chief Executive Officer and Chairman of the Board of Directors. The maximum amount available for borrowing under each note is $99,999.
 
 
10
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
9. 
Debt
 
Long-Term debt at September 30, 2019 and December 31, 2018 is as follows:
 
September 30,
 
 
December 31,
 
 
 
2019
 
 
2018
 
Note payable to Zeo Inc., non interest bearing,
 
 
 
 
 
 
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
 
 
 
maturing December 2022; uncollateralized.(1)
 $100,000 
 $100,000 
Note payable to Cat Financial Services, bearing interest at 6%;
    
    
payable in monthly installments of $1,300; maturing
    
    
August 2019; collateralized by equipment.
  1,498 
  14,022 
Note payable to Cat Financial Services, bearing interest at 6%;
    
    
payable in monthly installments of $778; maturing
    
    
December 2022; collateralized by equipment.
  28,175 
  34,390 
Note payable to De Lage Landen Financial Services,
    
    
bearing interest at 3.51%; payable in monthly installments of $655;
    
    
maturing September 2019; collateralized by equipment.
  1,998 
  5,851 
Note payable to De Lage Landen Financial Services,
    
    
bearing interest at 3.51%; payable in monthly installments of $655;
    
    
maturing September 2019; collateralized by equipment.
  - 
  8,371 
Note payable to Phyllis Rice, bearing interest
    
    
at 1%; payable in monthly installments of $2,000; originally maturing
    
    
March 2015; collateralized by equipment.
  6,146 
  12,146 
Obligation payable for Soyatal Mine, non-interest bearing,
    
    
 annual payments of $100,000 or $200,000 through 2020, net of discount
    
    
 of $19,156 and $23,321, respectively. (2)
  667,243 
  639,747 
Obligation payable for Guadalupe Mine, non-interest bearing,
    
    
 
 annual payments from $60,000 to $149,078 through 2026, net of discount
 
    
of $201,527 and $252,444, respectively. (3)
  922,779 
  918,663 
 
  1,727,839 
  1,733,190 
Less current portion
  (851,766)
  (705,460)
Long-term portion
 $876,073 
 $1,027,730 
 
 (1) Payments starting the fourth quarter of 2019.
 
2) At September 30, 2019, the Company has not made $465,021 of principal payments due in previous periods on this note.    At September 30, 2019, all but $23,585 of the balance is classified as a current liability. The creditor has agreed to accept payments of $2,500 per month through June 30, 2020, at which time the parties may agree to an extension of that payment schedule, or modify the payment schedule. The note holder accepted, and was paid, $40,000 during the nine months ended September 30, 2019.
 
(3) At September 30, 2019, the Company is delinquent in $91,578 of principal payments on this note.   At September 30, 2019, the delinquent balance is classified as a current liability.  The Company is currently working with the lenders to modify the payment terms to cure the delinquent status.  The Company has not received notice from the lenders indicating default on the loan.
 
 
 
 
11
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
9. 
Debt, continued:
 
At September 30, 2019, principal payments on debt are due as follows:
 
12 Months Ending September 30,
 
Principal Payment
 
 
Discount
 
 
Net
 
2020
 $910,048 
 $(58,282)
 $851,766 
2021
  223,957 
  (45,335)
  178,622 
2022
  191,052 
  (37,610)
  153,442 
2023
  177,716 
  (30,922)
  146,794 
2024
  149,077 
  (23,833)
  125,244 
Thereafter
  296,642 
  (24,671)
  271,971 
 
 $1,948,492 
 $(220,653)
 $1,727,839 
 
10. 
Related Party Transactions
 
During the three and nine months ended September 30, 2018, the Chairman of the audit committee and compensation committee received $4,500 for services performed. No compensation was paid during the three and nine month periods ended September 30, 2019. See Note 12 for shares of common stock issued to directors.
 
For the three and nine months ended September 30, 2019, the Company paid $1,764 and $8,034, respectively, compared to $1,764, and $6,686 for the three and nine months ended June 30, 2018, to John Lawrence, our President and Chief Executive Officer, as reimbursement for equipment used by the Company. Mr. Lawrence advanced the Company $227,200 for ongoing operating expenses during the nine months ended September 30, 2019, of which $17,387 has been repaid. In addition to the loan that was owed to Mr. Lawrence at September 30, 2019, the Company also owed Mr. Lawrence for payroll and other liabilities equal to $123,250 for a total owed to Mr. Lawrence at September 30, 2019 of $333,063.
 
John Gustaven, executive Vice President of the Company, advanced the Company $10,200 during the quarter ended September 30, 2019, and is included in payables to related parties at September 30, 2019.
 
11. 
Income Taxes
 
During the three and nine months ended September 30, 2019, and the year ended December 31, 2018, the Company determined that a valuation allowance equal to 100% of any deferred tax asset was appropriate, as management of the Company cannot determine that it is more likely than not the Company will realize the benefit of its net deferred tax asset. The net effect is that the deferred tax asset is fully reserved for at September 30, 2019 and December 31, 2018. Management estimates the effective tax rate at 0% for the current year.
 
Mexican Tax Assessment
 
In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. Approximately $285,000 USD of the total assessment is interest and penalties. SAT’s assessment is based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. These disallowed costs were incurred by the Company for USAMSA’s business operations.
 
Management reviewed the assessment notice from SAT and believed numerous findings have no merit. The Company engaged accountants and tax attorneys in Mexico to defend its position. An appeal was filed.
 
 
 
12
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
11. 
Income Taxes, continued:
 
 As of December 31, 2017, the Company had accrued a potential tax liability of $443,110 associated with this assessment. In the third quarter of 2018, we settled a tax assessment from the Mexican government completely in our favor. The accrual of $443,110 recorded as potential tax liability was reversed and recognized as a gain during the quarter ended September 30, 2018. The Company paid Mexican tax representatives $157,500 that were recognized as professional fees expense, to negotiate this settlement during the quarter ended September 30, 2018.
 
The Company has been notified that SAT has re-opened its assessment of USAMSA’s 2013 income tax return which could result in a separate assessment. It is too early in the process to estimate any potential outcome. At September 30, 2019, the Company does not believe it will be assessed any taxes, interest or penalties as a result of this assessment.
 
12. 
Stockholder’s Equity
 
Issuance of Common Stock for Payable to Board of Directors
 
During the nine-month period ended September 30, 2019, the Board of Directors was issued a total of 330,183 shares of common stock for $175,000 in directors’ fees that were payable at December 31, 2018. In addition, during the three and nine months ended September 30, 2019, the Company accrued $34,375 and $96,875, respectively, in directors’ fees payable that will be paid in common stock.
 
In January 2019, the Company issued Daniel Parks, the Company’s Chief Financial Officer, 200,000 shares of the Company’s common stock with a fair value of $136,000 to retain his services. As part of the agreement, Mr. Parks’ hours worked and cash compensation were reduced.
 
On May 3, 2018, the Board of Directors was issued a total of 739,018 shares of common stock for $175,000 in directors’ fees that were payable at December 31, 2017. In addition, during the three and nine months ended September 30, 2018, the Company accrued $43,750 and $131,250, respectively, in directors’ fees payable that will be paid in common stock.
 
Issuance of Common Stock for Cash
 
During the nine-month period ended September 30, 2019, the Company sold 904,082 shares of its common stock for $0.48 per share for proceeds of $431,322. Included with each share was a common stock warrant to purchase ½ share (total of 452,041) of the Company’s common stock exercisable at $0.65. The warrants expire in 2022.
 
13. 
Plant Acquisition
 
On August 31, 2018, the Company closed a Member Interest and Capital Share Agreement (the “Agreement”) with Great Lakes Chemical Corporation and Lanxess Holding Company US Inc., as the sellers, and the Company as the buyer. Under the Agreement, the Company acquired a subsidiary of the sellers which includes an antimony plant, equipment and land located in Reynosa, Mexico.  The Company disassembled, salvaged, and transported the antimony plant and equipment for use in its existing operations in both Mexico and the United States. The project involved moving heavy equipment and was completed in the second quarter of 2019.  In addition, the Company was paid $1,500,000 by the sellers, which was recognized as operating income in the quarter ended September 30, 2018, to assist in the salvage and transport costs of the useable equipment. The transaction was accounted for as an asset acquisition as there was no business associated with the acquired assets. The real property acquired with the plant was sold for $700,000 in November 2018, for which the Company received $300,000 in 2018 and the remaining balance of $400,000 in the three month period ended March 31, 2019.
 
 
13
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
14. 
Business Segments
 
The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.
 
The Madero smelter and Puerto Blanco mill at the Company’s Mexico operation produces crude oxide and crude metal that is shipped to Montana for finishing at the Thompson Falls, Montana, plant, or finished antimony metal that is sold directly to customers in the United States. The precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana. The zeolite operation produces zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States.
 
Segment disclosure regarding sales to major customers is located in Note 4.
 
Total Assets:
 
September 30, 2019
 
 
December 31, 2018
 
Antimony
 
 
 
 
 
 
United States
 $2,062,312 
 $2,199,694 
Mexico
  12,412,737 
  12,824,292 
Subtotal Antimony
  14,475,049 
  15,023,986 
Precious metals
  581,314 
  615,719 
Zeolite
  1,916,963 
  1,917,418 
   Total
 $16,973,326 
 $17,557,123 
 
 
 
 
For the Three Months Ended
 
 
For the Nine Months Ended
 
 
 
September 30, 2019
 
 
September 30, 2018
 
 
September 30, 2019
 
 
September 30, 2018
 
Capital expenditures:
 
 
 
 
 
 
 
 
 
 
 
 
Antimony
 
 
 
 
 
 
 
 
 
 
 
 
United States
 $- 
 $- 
 $2,713 
 $- 
Mexico
  190,861 
  223,390 
  607,564 
  334,367 
Subtotal Antimony
  190,861 
  223,390 
  610,277 
  334,367 
Precious Metals
  4,095 
  - 
  17,247 
  40,988 
Zeolite
  9,304 
  13,793 
  50,313 
  36,216 
   Total
 $204,260 
 $237,183 
 $677,837 
 $411,571 
 
 
 
14
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
14. 
Business Segments, continued:
 
Segment Operations for the three
 
Antimony
 
 
Antimony
 
 
Total
 
 
Precious
 
 
 
 
 
 
 
months ended September 30, 2019
 
USA
 
 
Mexico
 
 
Antimony
 
 
Metals
 
 
Zeolite
 
 
Totals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 $1,080,871 
 $- 
 $1,080,871 
 $55,500 
 $651,563 
 $1,787,934 
 
    
    
    
    
    
    
Depreciation and amortization
 $10,935 
 $210,766 
 $221,701 
 $17,630 
 $46,825 
 $286,156 
 
    
    
    
    
    
    
Income (loss) from operations
  227,712 
  (921,965)
  (694,253)
  37,869 
  114,923 
  (541,461)
 
    
    
    
    
    
    
Other income (expense):
  (4,602)
  (18,037)
  (22,639)
  - 
  (4,492)
  (27,131)
 
    
    
    
    
    
    
NET INCOME (LOSS)
 $223,110 
 $(940,002)
 $(716,892)
 $37,869 
 $110,431 
 $(568,592)
 
Segment Operations for the three
 
Antimony
 
 
Antimony
 
 
Total
 
 
Precious
 
 
 
 
 
 
 
months ended September 30, 2018
 
USA
 
 
Mexico
 
 
Antimony
 
 
Metals
 
 
Zeolite
 
 
Totals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 $1,366,540 
 $- 
 $1,366,540 
 $71,820 
 $653,365 
 $2,091,725 
 
    
    
    
    
    
    
Depreciation and amortization
 $13,170 
 $148,363 
 $161,533 
 $17,011 
 $46,807 
 $225,351 
 
    
    
    
    
    
    
Income (loss) from operations
  1,259,735 
  (537,067)
  722,668 
  54,809 
  88,263 
  865,740 
 
    
    
    
    
    
    
Other income (expense):
  (3,715)
  409,238 
  405,523 
  - 
  (3,816)
  401,707 
 
    
    
    
    
    
    
NET INCOME (LOSS)
 $1,256,020 
 $(127,829)
 $1,128,191 
 $54,809 
 $84,447 
 $1,267,447 
 

 
15
 
 
United States Antimony Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited), Continued:
 
14.            
Business Segments, continued:
 
Segment Operations for the nine
 
Antimony
 
 
Antimony
 
 
Total
 
 
Precious
 
 
 
 
 
 
 
months ended September 30, 2019
 
USA
 
 
Mexico
 
 
Antimony
 
 
Metals
 
 
Zeolite
 
 
Totals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 $3,820,689 
 $473,592 
 $4,294,281 
 $140,550 
 $2,081,751 
 $6,516,582 
 
    
    
    
    
    
    
Depreciation and amortization
 $32,690 
 $508,934 
 $541,624 
 $51,652 
 $139,426 
 $732,702 
 
    
    
    
    
    
    
Income (loss) from operations
  1,083,360 
  (3,318,053)
  (2,234,693)
  88,898 
  460,149 
  (1,685,646)
 
    
    
    
    
    
    
Other income (expense):
  (10,388)
  (54,375)
  (64,763)
  - 
  (11,682)
  (76,445)
 
    
    
    
    
    
    
NET INCOME (LOSS)
 $1,072,972 
 $(3,372,428)
 $(2,299,456)
 $88,898 
 $448,467 
 $(1,762,091)
 
Segment Operations for the nine
 
Antimony
 
 
Antimony
 
 
Total
 
 
Precious
 
 
 
 
 
 
 
months ended September 30, 2018
 
USA
 
 
Mexico
 
 
Antimony
 
 
Metals
 
 
Zeolite
 
 
Totals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 $4,540,873 
 $- 
 $4,540,873 
 $213,523 
 $2,026,605 
 $6,781,001 
 
    
    
    
    
    
    
Depreciation and amortization
 $39,550 
 $445,729 
 $485,279 
 $51,032 
 $141,699 
 $678,010 
 
    
    
    
    
    
    
Income (loss) from operations
  1,849,669 
  (2,088,424)
  (238,755)
  162,491 
  382,182 
  305,918 
 
    
    
    
    
    
    
Other income (expense):
  (6,431)
  379,750 
  373,319 
  - 
  (9,015)
  364,304 
 
    
    
    
    
    
    
NET INCOME (LOSS)
 $1,843,238 
 $(1,708,674)
 $134,564 
 $162,491 
 $373,167 
 $670,222 
 
 
 
16
 

ITEM 2. 
Management’s Discussion and Analysis of Results of Operations and FinancialCondition
 
General
 
Certain matters discussed are forward-looking statements that involve risks and uncertainties, including the impact of antimony prices and production volatility, changing market conditions and the regulatory environment and other risks. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of this filing. We disclaim, however, any intent or obligation to update these forward-looking statements.
 
Antimony - Combined USA
 
Three Months Ended
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
Nine Months Ended
 
   and Mexico
 
September 30, 2019
 
 
September 30, 2018
 
 
September 30, 2019
 
 
September 30, 2018
 
Lbs of Antimony Metal USA
  187,889 
  229,865 
  597,308 
  690,838 
Lbs of Antimony Metal Mexico
  155,549 
  105,748 
  607,407 
  405,329 
   Total Lbs of Antimony Metal Sold
  343,438 
  335,613 
  1,204,715 
  1,096,167 
Average Sales Price/Lb Metal
 $3.15 
 $4.07 
 $3.56 
 $4.14 
Net income (loss)/Lb Metal
 $(2.09)
 $3.36 
 $(1.91)
 $0.12 
 
    
    
    
    
Gross antimony revenue
 $1,080,871 
 $1,366,540 
 $4,294,281 
 $4,540,873 
 
    
    
    
    
Cost of sales - USA
  (628,050)
  (735,284)
  (2,271,512)
  (2,759,947)
Cost of sales - Mexico
  (892,714)
  (973,149)
  (3,138,309)
  (2,484,242)
Operating income (expenses)
  (254,360)
  1,064,561 
  (1,119,153)
  464,561 
Non-operating income (expenses)
  (22,639)
  405,523 
  (64,763)
  373,319 
 
  (1,797,763)
  (238,349)
  (6,593,737)
  (4,406,310)
 
    
    
    
    
Net income (loss) - antimony
  (716,892)
  1,128,191 
  (2,299,456)
  134,564 
Depreciation,& amortization
  221,701 
  161,533 
  541,624 
  485,279 
   EBITDA - antimony
 $(495,191)
 $1,289,724 
 $(1,757,832)
 $619,843 
 
    
    
    
    
Precious Metals
    
    
    
    
Ounces sold
    
    
    
    
  Gold
  12