10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒      Quarterly Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022

☐      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 small business issuer as specified in its charter)

Montana	81-0305822
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
P.O. Box 643 Thompson Falls, MT	59873
(Address of principal executive office)	(Postal Code)

	(406) 827-3523
	(Issuer’s telephone number)
Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	UAMY	NYSE American

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 checkmark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post filed). Yes ☒ No ☐

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “Accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

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 in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 16, 2022, there were 106,240,361 shares of registrant’s common stock, $0.01 par value, issued and outstanding.

Contents

PART I - FINANCIAL INFORMATION		3
ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.	17
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	28
ITEM 4.	CONTROLS AND PROCEDURES	29
PART II - OTHER INFORMATION		30
ITEM 1.	LEGAL PROCEEDINGS.	30
ITEM 1A.	RISK FACTORS.	30
ITEM 2.	RECENT SALES OF UNREGISTERED SECURITIES.	30
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.	30
ITEM 4.	MINE SAFETY DISCOSURES.	30
ITEM 5.	OTHER INFORMATION.	30
ITEM 6.	EXHIBITS.	31

Page 2 of 32

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2022			December 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	8,312,469		$	21,363,048
Certificates of deposit		259,210			259,210
Accounts receivable		1,604,660			891,314
Prepaid expenses		60,916			-
Inventories (NOTE 5)		590,204			1,055,420
Investments (NOTE 11)		13,299,393			-
Total current assets		24,126,852			23,568,992
Properties, plants and equipment, net (NOTE 6)		11,242,721			11,133,733
Restricted cash for reclamation bonds		57,281			57,281
IVA receivable and other assets		329,163			242,721
Total assets	$	35,756,017		$	35,002,727
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	679,597		$	1,385,752
Payable to related parties		4,084			-
Accrued liabilities		685,918			621,873
Long-term debt, current portion (NOTE 8)		91,347			13,230
Total current liabilities		1,460,946			2,020,855
Long-term debt, net of current portion (NOTE 8)		265,636			201,920
Stock payable to directors for services		187,500			112,500
Asset retirement obligations and accrued reclamation costs (NOTE 7)		325,657			298,649
Total liabilities		2,239,739			2,633,924
COMMITMENTS AND CONTINGENCIES (NOTE 9)
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 $956,250 and $952,500, respectively)		7,500			7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both periods)		1,779			1,779
Series D: 1,692,672 shares issued and outstanding (liquidation preference $4,979,632 both periods)		16,926			16,926
Common stock, $0.001 par value; 300,000,000 shares authorized; 106,240,361 shares issued and outstanding		1,062,402			1,062,402
Additional paid-in capital		63,991,459			63,991,459
Accumulated deficit		(31,563,788	)		(32,711,263	)
Total stockholders’ equity		33,516,278			32,368,803
Total liabilities and stockholders’ equity	$	35,756,017		$	35,002,727

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

Page 3 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
REVENUE	$	3,587,925		$	2,275,562		$	7,168,231		$	3,528,849
COST OF REVENUE		2,865,515			2,079,164			5,306,433			3,120,294
GROSS PROFIT		722,410			196,398			1,861,798			408,555
OPERATING EXPENSES
General and administrative		220,591			290,111			381,272			460,161
Salaries and benefits		72,912			77,278			146,047			153,937
Other operating expenses		14,045			-			17,960			184,037
Legal and professional fees		47,927			61,199			170,004			184,336
TOTAL OPERATING EXPENSES		355,475			428,588			715,283			982,471
INCOME (LOSS) FROM OPERATIONS		366,935			(232,190	)		1,146,515			(573,916	)
OTHER INCOME (EXPENSE)
Interest expense		(3,081	)		(880	)		(6,063	)		(3,135	)
Interest and investment income		30,052			13,389			39,706			21,882
Change in fair value of investments		(93,458	)		-			(93,458	)		-
Trademark and licensing income		60,775			-			60,775
Gain on forgiveness – CARES Act debt		-			443,400			-			443,400
Gain on settlement of Hillgrove advance		-			113,422			-			113,422
TOTAL OTHER INCOME (EXPENSE)		(5,712)			569,331			960			575,569
NET INCOME		361,223			337,141			1,147,475			1,653
Preferred dividends		(11,819	)		(12,162	)		(23,639	)		(24,325	)
Net income available to common stockholders		349,404			324,979			1,123,836			(22,672	)
Net income per share of common stock
Basic and diluted	$	Nil		$	Nil		$	0.01		$	Nil
Weighted average shares outstanding:
Basic		106,240,361			106,315,419			106,240,361			99,513,378
Diluted		106,240,361			108,696,704			106,240,361			99,513,378

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

Page 4 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For the three and six months ended June 30, 2022 and 2021

	Total Preferred Stock				Common Stock				Additional			Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Paid in Capital			Deficit			Equity
BALANCE, December 31, 2020		2,678,909	$	26,788		75,949,757	$	759,496	$	39,050,899		$	(32,650,794	)	$	7,186,389
Common shares issued for cash		-		-		26,290,000		262,900		24,734,100			-			24,997,000
Common stock issuance costs		-		-		-		-		(1,654,820	)		-			(1,654,820	)
Common stock issued for exercise of warrants		-		-		3,723,810		37,238		1,726,381			-			1,763,619
Net loss		-		-		-		-		-			(335,488	)		(335,488	)
BALANCE, March 31, 2021		2,678,909	$	26,788		105,963,567	$	1,059,634	$	63,856,560		$	(32,986,282	)	$	31,956,700
Common stock issued for exercise of warrants		-		-		41,667		417		26,667			-			27,084
Net income		-		-		-		-		-			337,141			337,141
BALANCE, June 30, 2021		2,678,909	$	26,788		106,005,234	$	1,060,051	$	63,883,227		$	(32,649,141	)	$	32,320,925
BALANCE, December 31, 2021		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(32,711,263	)	$	32,368,803
Net income		-		-		-		-		-			786,252			786,252
BALANCE, March 31, 2022		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(31,925,011	)	$	33,155,055
Net income		-		-		-		-		-			361,223			361,223
BALANCE, June 30, 2022		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(31,563,788	)	$	33,516,278

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

Page 5 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Six months ended June 30,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,147,475		$	1,653
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization		451,207			442,408
Accretion of asset retirement obligation		11,412			1,732
Common stock payable for directors fees		75,000			56,250
Gain on settlement of Hillgrove advance		-			(113,422	)
Gain on forgiveness of Cares Act debt		-			(443,400	)
Write down of inventory to net realizable value		136,836			66,054
Change in fair value of investments		93,458			-
Changes in operating assets and liabilities:
Accounts receivable		(713,346	)		(362,681	)
Inventories		328,380			17,448
Prepaid expenses		(60,916	)		-
IVA receivable and other assets		(86,442	)		(15,402	)
Accounts payable		(706,155	)		(519,570	)
Accrued liabilities		64,045			(92,927	)
Export tax assessment payable		-			(1,120,730	)
Payable to related parties		4,084			(154,022	)
Net cash provided (used) by operating activities		745,038			(2,236,609	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from redemption of certificates of deposit		-			210,184
Purchase of investments		(13,789,772	)		-
Proceeds from sales of investments		396,921			-
Purchase of properties, plants and equipment		(382,999	)		(115,127	)
Net cash provided (used) by investing activities		(13,775,850	)		95,057
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in checks issued and payable		-			(86,685	)
Payments on advances from related party		-			(56,416	)
Proceeds from issuance of common stock, net of issuance costs		-			23,342,180
Proceeds from exercise of warrants		-			1,790,703
Payments on Hillgrove advances payable		-			(1,020,799	)
Principal paid on notes payable to bank		-			(100,000	)
Principal payments of long-term debt		(19,767	)		(27,926	)
Net cash provided (used) by financing activities		(19,767	)		23,841,057
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(13,050,579	)		21,699,505
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD		21,420,329			722,377
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	8,369,750		$	22,421,882
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Equipment purchased with note payable	$	161,600		$	-
Common stock payable to directors		-			130,483
Payable to related party satisfied with exercise of stock purchase warrants		-			62,500

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

Page 6 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 1 - NATURE OF OPERATIONS

AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products.

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico.

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company.

In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc. (previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A. de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.

In its operations in Montana, the Company produces antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. The Company also sells antimony metal for use in bearings, storage batteries and ordnance.

In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer. Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications.

NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2022, and its results of operations for the three and six months ended June 30, 2022, and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the three and six month periods ended June 30, 2022, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022.

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 31, 2022.

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements.

Page 7 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

Reclassifications

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported.

COVID -19

The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies.

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced availability of contractors and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including its ability to conduct operations.

The Company has taken steps to mitigate the potential risks to suppliers and employees posed by the spread of COVID-19, including work from home policies where appropriate. The Company will continue to monitor developments affecting both its workforce and contractors, and will take additional precautions as necessary. The ultimate impact of COVID-19 depends on factors beyond management’s knowledge or control, including its duration and third-party actions to contain its spread and mitigate its public health effects. Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

Investments

The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date. Equity securities that have a readily determinable fair value are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the consolidated statement of operations each reporting period. Gains and losses on the sale of securities are recognized on a specific identification basis.

New Accounting Pronouncements

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

NOTE 3– EARNINGS PER SHARE

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

At June 30, 2022 and 2021, 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:

	June 30, 2022		June 30, 2021
Warrants		12,489,922		2,471,089
Convertible preferred stock		1,692,672		1,751,005
TOTAL POSSIBLE DILUTIVE SHARES		14,182,594		4,222,094

Page 8 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 4 – REVENUE RECOGNITION

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

Sales of products for the three-months ended June 30, 2022 and 2021 were as follows:

	For the three months ended
	June 30, 2022		June 30, 2021
Antimony	$	2,472,081	$	1,428,939
Zeolite		1,020,391		716,428
Precious metals		95,453		130,195
TOTAL REVENUE BY PRODUCT	$	3,587,925	$	2,275,562

Sales of products for the six months ended June 30, 2022 and 2021 were as follows:

	For the six months ended
	June 30, 2022		June 30, 2021
Antimony	$	5,301,011	$	2,086,046
Zeolite		1,694,433		1,236,375
Precious metals		172,787		206,428
TOTAL REVENUE BY PRODUCT	$	7,168,231	$	3,528,849

For the three and six months ended June 30, 2022, the Company also received royalties related to a trademark and licensing agreement in its antimony business segment. For the three and six months ended June 30, 2022, trademark and licensing income of $60,775 is included in other income in the antimony business segment (Note 12). For the three and six months ended June 30, 2021, trademark and licensing income was $Nil.

The Company’s trade accounts receivable balance related to contracts with customers was $1,604,660 at June 30, 2022 and $891,314 at December 31, 2021. The Company’s products do not involve any warranty agreements and product returns are not typical.

NOTE 5– INVENTORIES

Inventories at June 30, 2022 and December 31, 2021 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. Inventories at June 30, 2022 and December 31, 2021 are as follows:

	June 30, 2022		December 31, 2021
Antimony Metal	$	128,591	$	234,461
Antimony Oxide		278,134		439,086
Antimony Ore Concentrates		28,392		119,046
Total antimony		435,117		792,593
Zeolite		155,087		262,827
TOTAL INVENTORIES	$	590,204	$	1,055,420

Page 9 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

Inventories are valued at cost except for the portion related to Mexican operations which are valued at net realizable value because the production costs of the Mexican inventory were greater than the amount the Company expected to receive on the sale of the pounds of antimony contained in inventory. The adjustment to inventory, which is included in cost of revenue on the statements of operations was $136,836 and $66,054 for the six months ended June 30, 2022 and 2021, respectively.

Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico. The Company’s zeolite inventory consists of saleable zeolite material.

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

The major components of the Company’s properties, plants and equipment by segment at June 30, 2022 and December 31, 2021 are shown below:

	Antimony Segment						Zeolite Segment			Precious Metals
June 30, 2022	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,759,271		$	9,197,870		$	4,051,016		$	1,347,912		$	16,356,069
Buildings		243,248			590,128			801,764			-			1,635,140
Construction in progress		-			280,406			332,629			-			613,035
Land and other		2,431,387			2,656,037			16,753			-			5,104,177
		4,433,906			12,724,441			5,202,162			1,347,912			23,708,421
Accumulated depreciation		(2,747,396	)		(5,904,748	)		(3,318,286	)		(495,270	)		(12,465,700	)
	$	1,686,510		$	6,819,693		$	1,883,876		$	852,642		$	11,242,721

	Antimony Segment						Zeolite Segment			Precious Metals
December 31, 2021	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,684,977		$	8,905,899		$	3,853,056		$	1,330,394		$	15,774,326
Buildings		243,248			870,534			801,764			-			1,915,546
Construction in progress		-			280,406			184,972			-			465,378
Land and other		2,431,387			2,640,441			16,753			-			5,088,581
	$	4,359,612		$	12,697,280		$	4,856,545		$	1,330,394		$	23,243,831
Accumulated depreciation		(2,732,809	)		(5,622,555	)		(3,314,658	)		(440,076	)		(12,110,098	)
	$	1,626,803		$	7,074,725		$	1,541,887		$	890,318		$	11,133,733

At June 30, 2022 and December 31, 2021, the Company had $613,035 and $665,175, respectively, of assets that were not yet placed in service and have not yet been depreciated.

Page 10 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 7 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three months ended June 30,
	2022		2021
Asset retirement obligation, beginning of period	$	192,881	$	184,219
Change in estimate of asset retirement obligation		15,596		-
Accretion expense		9,680		1,732
Asset retirement obligation, end of period	$	218,157	$	185,951

	Six months ended June 30,
	2022		2021
Asset retirement obligation, beginning of period	$	191,149	$	184,219
Change in estimate of asset retirement obligation		15,596		-
Accretion expense		11,412		1,732
Asset retirement obligation, end of period	$	218,157	$	185,951

The Company’s total asset retirement obligation and accrued reclamation costs of $325,657 and $298,649, at June 30, 2022 and December 31, 2021, respectively, includes reclamation obligations for the Idaho and Montana operations of $107,500.

NOTE 8 – DEBT

Long term debt at June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022			December 31, 2021
Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit	$	208,046		$	215,150
Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024; collateralized by 2007 Caterpillar 740 articulated truck		148,937			-
		356,983			215,150
Less current portion		(91,347	)		(13,230	)
Long term portion	$	265,636		$	201,920

At June 30, 2022, principal payments on debt are due as follows:

Twelve months ending June 30,	Principal payment
2023	$	91,347
2024		82,573
2025		12,925
2026		13,219
2027		156,919
	$	356,983

Page 11 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Company follows U.S. GAAP guidance in determining its accrual and disclosures with respect to loss contingencies, and evaluate such accruals and contingencies for each reporting period. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At June 30, 2022 and December 31, 2021, the Company had accrued liabilities of $1,270 and $Nil, respectively, relating to such assessments.

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three months ended June 30, 2022 and 2021, the Company incurred royalty expense of $85,870 and $69,437, respectively. During the six months ended June 30, 2022 and 2021, the Company incurred royalty expense of $147,900 and $131,567 respectively. Royalty expense is included in cost of goods sold on the condensed consolidated statement of operations.

At June 30, 2022 and December 31, 2021, the Company had accrued royalties payable of $409,887 and $346,242 respectively, which is included in accrued liabilities on the condensed consolidated balance sheets. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

NOTE 10 – STOCKHOLDERS’ EQUITY

During the six months ended June 30, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the six months ended June 30, 2021, the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants.

During the three months ended June 30, 2022 and June 30, 2021, the Company expensed $46,875 and $28,125, respectively, in directors’ fees payable that are anticipated to be paid in common stock. During the six months ended June 30, 2022 and June 30, 2021, the Company expensed $75,000 and $28,125, respectively in directors’ fees payable

At June 30, 2022 and December 31, 2021, the accrued balance of stock payable to directors fees for services was $187,500 and $112,500, respectively.

The Company issued no shares of common stock during the three or six months ended June 30, 2022. During the three and six months ended June 30, 2022, no warrants were exercised.

Common stock warrants

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent. There were no warrants exercised during the three or six months ended June 30, 2022.

The Company issued no warrants to purchase common stock during the three or six months ended June 30, 2022.

Page 12 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

	Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and June 30, 2022		12,489,922		$	0.75

The composition of the Company’s warrants outstanding at June 30, 2022 is as follows:

Number of warrants		Exercise Price		Expiration Date	Remaining life (years)
	143,707	$	0.65	8/12/2022		0.12
	2,285,715		0.46	7/31/2025		3.09
	804,000		0.46	1/27/2026		3.58
	7,650,000		0.85	8/3/2026		4.10
	1,606,500		0.85	2/1/2026		3.59
	12,489,922

NOTE 11 – INVESTMENTS

In April 2022, the Company opened an investment account composed of U.S. Treasury bonds which are measured using Level 1 fair value inputs that are based on quoted prices in active markets.

For the three and six months ended June 30, 2022, the Company recognized $93,458 in the change in fair value of investments on the condensed consolidated statement of operations. As of June 30, 2022, the cost and fair value of the investment portion of the account was $13,492,655 and $13,431,774, respectively.

As of June 30, 2022, the cash and cash equivalent portion of the account was $132,380, which is included in cash and cash equivalents on the condensed consolidated balance sheet.

NOTE 12 – BUSINESS SEGEMENTS

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.

Page 13 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix will be produced. 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, although the Company does have a sales operation in Canada.

	For the three months ended June 30,				For the six months ended June 30,
Capital expenditures	2022		2021		2022		2021
Antimony
United States	$	51,927	$	-	$	80,277	$	-
Mexico		10,724		4,872		11,565		9,744
Subtotal antimony		62,651		4,872		91,842		9,744
Precious metals		9,138		18,921		17,518		37,347
Zeolite		299,865		68,036		435,239		68,036
Total	$	371,654	$	91,829	$	544,599	$	115,127

Total Assets:	June 30, 2022		December 31, 2021
Antimony
United States	$	24,552,558	$	24,130,348
Mexico		7,446,054		7,771,515
Subtotal antimony		31,998,612		31,901,863
Precious metals
United States		183,713		107,464
Mexico		668,929		782,854
Subtotal precious metals		852,642		890,318
Zeolite		2,904,763		2,210,546
TOTAL	$	35,756,017	$	35,002,727

Page 14 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

Segment operations for the three months ended June 30, 2022	Antimony - USA		Antimony -Mexico		Total antimony		Precious Metals		Zeolite		Total
Total revenues	$	1,644,259	$	827,822	$	2,472,081	$	95,453	$	1,020,391	$	3,587,925
Depreciation and amortization	$	11,101	$	143,736	$	154,837	$	27,674	$	48,546	$	231,057
Income from operations	$	120,636	$	24,396	$	145,032	$	67,779	$	154,124	$	366,935
Other income (expense)		(3,975)		-		(3,975)		-		(1,737)		(5,712)
NET INCOME	$	116,661	$	24,396	$	141,057	$	67,779	$	152,387	$	361,223

Page 15 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

Segment operations for the three months ended June 30, 2021	Antimony - USA		Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	1,428,939	$	-		$	1,428,939		$	130,195	$	716,428		$	2,275,562
Depreciation and amortization	$	7,893	$	144,999		$	152,892		$	28,226	$	38,826		$	219,944
Income (loss) from operations	$	99,642	$	(575,363	)	$	(475,721	)	$	101,969	$	141,562		$	(232,190	)
Other income (expense)		456,725		113,422			570,147			-		(816	)		569,331
NET LOSS	$	556,367	$	(461,941	)	$	94,426		$	101,969	$	140,746		$	337,141

Segment operations for the six months ended June 30, 2022	Antimony - USA		Antimony -Mexico			Total antimony		Precious Metals		Zeolite			Total
Total revenues	$	4,473,189	$	827,822		$	5,301,011	$	172,787	$	1,694,433		$	7,168,231
Depreciation and amortization	$	20,570	$	282,193		$	302,763	$	55,194	$	93,250		$	451,207
Income (loss) from operations	$	1,512,148	$	(659,641	)	$	852,507	$	117,593	$	176,415		$	1,146,515
Other income (expense)		3,335		-			3,335		-		(2,375	)		960
NET INCOME (LOSS)	$	1,515,483	$	(659,641	)	$	855,842	$	117,593	$	174,040		$	1,147,475

Segment operations for the six months ended June 30, 2021	Antimony - USA			Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	2,086,046		$	-		$	2,086,046		$	206,428	$	1,236,375		$	3,528,849
Depreciation and amortization	$	15,784		$	289,951		$	305,735		$	55,830	$	80,843		$	442,408
Income (loss) from operations	$	(119,027	)	$	(813,931	)	$	(932,958	)	$	150,598	$	208,444		$	(573,916	)
Other income (expense)		463,360			113,422			576,782			-		(1,213	)		575,569
NET INCOME (LOSS)	$	344,333		$	(700,509	)	$	(356,176	)	$	150,598	$	207,231		$	1,653

NOTE 13 – SUBSEQUENT EVENTS

On August 8, 2022, the Company executed a Purchase Option Agreement (the ‘agreement”) with SB Wadley SA de CV (“Wadley”) whereby the Company leases, with an option to acquire, mining claims located in Mexico known as the Wadley Property. Under the agreement, the Company will pay Wadley eight monthly installments of $11,600 for the right to mine and conduct geological and resource studies on the Wadley Property. At the end of the eight months, should the Company choose to exercise the option following due diligence and assessment of geological and resource studies, the Company will pay Wadley $2,230,000 and seven annual payments of $1,160,000.

Page 16 of 32

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

Any statement that expresses or involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates”, or “intends”, or states that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

· Risks related to the Company’s properties being in the exploration stage;

· Risks related to the mineral operations being subject to government regulation;

· Risks related to environmental concerns;

· Risks related to the Company’s ability to obtain additional capital to develop the Company’s resources, if any;

· Risks related to mineral exploration and development activities;

· Risks related to mineral estimates;

· Risks related to the Company’s insurance coverage for operating risks;

· Risks related to the fluctuation of prices for precious and base metals, such as gold, silver and copper;

· Risks related to the competitive industry of mineral exploration;

· Risks related to the title and rights in the Company’s mineral properties;

· Risks related to the possible dilution of the Company’s common stock from additional financing activities;

· Risks related to potential conflicts of interest with the Company’s management;

· Risks related to the Company’s shares of common stock;

This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Risk Factors”, “Description of Business” and “Management’s Discussion and Analysis and Plan of Operation” of this Quarterly Report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. The Company advises readers to carefully review the reports and documents filed from time to time with the Securities and Exchange Commission (the “SEC”), particularly the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

United States Antimony Corporation qualifies all forward-looking statements contained in this Quarterly Report by the foregoing cautionary statement.

Certain statements contained in this Quarterly Report on Form 10-Q constitute “forward-looking statements.” These statements, identified by words such as “plan,” “anticipate,” “believe,” “estimate,” “should,” “expect,” and similar expressions include the Company’s expectations and objectives regarding its future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under the caption “Management’s Discussion and Analysis or Plan of Operation” and elsewhere in this Quarterly Report.

As used in this Quarterly Report, the terms “we,” “us,” “our,” “United State Antimony Corporation,”, “US Antinomy “and the “Company”, mean United States Antimony Corporation, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.

Page 17 of 32

Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s condensed consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The following statements may be forward-looking in nature and actual results may differ materially.

Reports to Security Holders

The Registrant does not issue annual or quarterly reports to security holders other than the annual Form 10-K and quarterly Forms 10-Q as electronically filed with the SEC. Electronically filed reports may be accessed at www.sec.gov

DESCRIPTION OF BUSINESS

History

United States Antimony Corporation, or USAC, was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, we suspended antimony mining operations but continued to produce antimony products from domestic and foreign sources. In April 1998, we formed United States Antimony SA de CV or USAMSA, to mine and smelt antimony in Mexico. Bear River Zeolite Company, or BRZ, was incorporated in 2000, and it is mining and producing zeolite in southeastern Idaho. On August 19, 2005, USAC formed Antimonio de Mexico, S. A. de C. V. to explore and develop antimony and silver deposits in Mexico. Our principal business is the production and sale of antimony, silver, gold, and zeolite products. On May 16, 2012, we started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY.

Antimony Division

Our antimony smelter and precious metals plant is located in the Burns Mining District of Sanders County, Montana, approximately 15 miles west of Thompson Falls, MT. We hold 2 patented mill sites where the plant is located. We have no “proven reserves” or “probable reserves” of antimony.  Environmental restrictions preclude mining at this site.

Mining was suspended in December 1983, because antimony could be purchased more economically from foreign sources.

For 2021, and since 1983, we relied on foreign sources for raw materials, and there are risks of interruption in procurement from these sources and/or volatile changes in world market prices for these materials that are not controllable by us. We have sources of antimony in Mexico but we are still depending on foreign companies for raw material in the future. We expect to receive raw materials from our owned and leased properties for 2022 and later years. We continue working with suppliers in North America, Central America, and South America.

We currently own 100% of the common stock, equipment, and the leases on real property of United States Antimony, Mexico S.A. de C.V. or “USAMSA”, which was formed in April 1998. We currently own 100% of the stock in Antimony de Mexico SA de CV (ADM) which owns the San Miguel concession of the Los Juarez property. USAMSA has two divisions, (1) the Madero smelter in Coahuila, (2) the Puerto Blanco flotation mill and oxide circuit in Guanajuato. ADM possesses the Los Juarez mineral deposit.

In our existing operations in Montana, we produce antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. We also sell antimony metal for use in bearings, storage batteries and ordnance.

Page 18 of 32

We estimate (but have not independently confirmed) that our present share of the domestic market and international market for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products, while China supplies 92% of the world antimony demand. We believe we are competitive both domestically and world-wide due to the following:

· We have a reputation for quality products delivered on a timely basis.

· We have the only two operating, permitted, antimony smelters in North and Central America.

· We are the only domestic producer of antimony products.

· We can ship on short notice to domestic customers.

· We are vertically integrated, with raw materials from our own mines, mills, and smelter in Mexico, along with the raw materials from exclusive supply agreements we have with numerous ore and raw material suppliers.

· Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States with a current maximum capacity of about 32,600 pounds of feed per day and permitting for 50% to 70% expansion.

Zeolite Division

We own 100% of Bear River Zeolite Company, (BRZ, an Idaho corporation) that was incorporated on June 1, 2000. BRZ has a lease with Webster Farm, L.L.C. that entitles BRZ to surface mine and process zeolite on property located near Preston, Idaho, in exchange for a royalty payment. In 2010 the royalty payment was adjusted to $10 per ton sold. The current minimum annual royalty is $60,000. In addition, BRZ has more zeolite on U.S. Bureau of Land Management land. The Company pays various royalties on the sale of zeolite products. William Raymond and Nancy Couse are paid a royalty that varies from $1 to $5 per ton. On a combined basis, royalties vary from 8%-13% of sales. Shortly after inception BRZ constructed a processing plant on the property which improved its productive capacity. Ground-breaking for an additional warehouse to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop are expected to be completed by mid-2022. A vertical-shaft-impactor crusher was replaced by a hammer mill for crushing line number 1 in 2021 for increased production rate. A replacement jaw crusher was installed and put into service in 2021. The new jaw crusher was further improved with a variable-speed apron feeder in late 2021 and subsequent and substantial improvements have been made to the jaw crusher in 2022. In 2021, the Company purchased a house in Preston Idaho for the express purpose of housing workers for its zeolite operation.

We have no reserves nor resources of zeolite.

“Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice. BRZ zeolite is regarded as one of the best zeolites in the world due to its high CEC of approximately 180-220 meq/100 gr., its hardness and high clinoptilolite content, its absence of clay minerals, and its low sodium content. BRZ’s zeolite deposits’ characteristics which make the mineral useful for a variety of purposes including:

☐	Soil Amendment and Fertilizer. Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops
☐	Water Filtration. Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, fisheries, fish farms, and aquariums.
☐	Sewage Treatment. Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms.
☐	Nuclear Waste and Other Environmental Cleanup. Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution. Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.
☐	Odor Control. A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure. The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor.

Page 19 of 32

☐	Gas Separation. Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fish ponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses.
☐	Animal Nutrition. According to other research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours. BRZ does not make these claims.
☐	Miscellaneous Uses. Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner and carriers for insecticides, pesticides and herbicides.

SELECTED FINANCIAL DATA.

Statement of Operations Information:

	For the three months ended June 30,						For the six months ended June 30,
	2022			2021			2022		2021
Revenues	$	3,587,925		$	2,275,562		$	7,168,231	$	3,528,849
Costs of revenues		2,865,515			2,079,164			5,306,433		3,120,294
Gross profit		722,410			196,398			1,861,798		408,555
Total operating expenses		355,475			428,588			715,283		982,471
Income (loss) from operations		366,935			(232,190	)		1,146,515		(573,916	)
Other income (expense)		(5,712	)		569,331			960		575,569
NET INCOME	$	361,223		$	337,141		$	1,147,475	$	1,653
Weighted average shares of common stock (basic)		106,240,361			106,315,419			106,240,361		99,513,378
Weighted average shares of common stock (diluted)		106,240,361			108,696,704			106,240,361		99,513,378

Balance Sheet Information:

	June 30, 2022			December 31, 2021
Working capital	$	22,665,906		$	21,548,137
Total assets		35,756,017			35,002,727
Accumulated deficit		(31,563,788	)		(32,711,263	)
Stockholders’ equity		33,516,278			32,368,803

Page 20 of 32

Operational and financial performance

Antimony

Financial and operational metrics of antimony for the three months ended June 30, 2022 and 2021 are as follows:

	Three months ended June 30,							Pct. Increase
Antimony - Combined USA and Mexico	2022		2021			$ Change		(Decrease)
Total revenue -antimony	$	2,472,081	$	1,428,939		$	1,043,142		73.0	%
Gross profit - antimony		490,559		(62,222	)		552,781		(888.4	)%
Total lbs of antimony metal sold		363,128		339,117			24,011		7.1	%
Average sales price/lb metal		6.81		4.21			2.59		61.6	%
Average cost/lb metal		5.46		4.40			1.06		24.1	%
Average gross profit/lb metal		1.35		(0.18	)		1.53		(836.3	)%

Financial and operational metrics of antimony for the six months ended June 30, 2022 and 2021 was as follows:

	Six months ended June 30,						Pct Increase
Antimony - Combined USA and Mexico	2022		2021		$ Change		(Decrease)
Total revenue -antimony	$	5,301,011	$	2,086,046	$	3,214,965		154.1	%
Gross profit - antimony		1,546,336		25,245		1,521,091		6,025.3	%
Total lbs of antimony metal sold		796,478		521,086		275,392		52.8	%
Average sales price/lb metal		6.66		4.00		2.65		66.3	%
Average cost/lb metal		4.71		3.95		0.76		19.2	%
Average gross profit/lb metal		1.94		0.05		1.89		3,907.4	%

During the three months ended June 30, 2022, the average sales price for antimony increased $2.60 per pound compared to the three months ended June 30, 2021. Gross profit per pound increased $1.53 per pound over the three months ended June 30, 2021.

During the six months ended June 30, 2022, the average sales price for antimony increased $2.66 per pound compared to the six months ended June 30, 2021. Gross profit per pound increased $1.89 per pound over the three months ended June 30, 2021.

Page 21 of 32

Zeolite

Financial and operational performance of zeolite for the three months ended June 30, 2022 and 2021 was as follows:

	Three months ended June 30,							Pct Increase
Zeolite	2022		2021		$ Change			(Decrease)
Total revenue - zeolite	$	1,020,391	$	716,428		303,963			42.4	%
Gross profit - zeolite		164,072		156,651		7,421			4.7	%
Tons of zeolite sold		4,046		3,035		1,011			33.3	%
Average sales price/ton		252.20		236.06		16.14			6.8	%
Average cost/ton		211.65		184.44		27.21			14.8	%
Average gross profit/ton		40.55		51.61		(11.06	)	(21.4		%)

Financial and operational performance of zeolite for the six months ended June 30, 2022 and 2021 was as follows:

	Six months ended June 30,							Pct. Increase
Zeolite	2022		2021		$ Change			(Decrease)
Total revenue - zeolite	$	1,694,433	$	1,236,375		458,058			37.0	%
Gross profit - zeolite		197,869		232,712		(34,843	)	(15.0		%)
Tons of zeolite sold		7,072		5,778		1,294			22.4	%
Average sales price/ton		239.60		213.98		25.62			12.0	%
Average cost/ton		211.62		173.70		37.92			21.8	%
Average gross profit/ton		27.98		40.28		(12.30	)	(30.5		%)

Sales volume of zeolite for the three months ended June 30, 2022 increased 1,011 tons over the three months ended June 30, 2021. Average sales price per ton increased $16.14 for the same comparable period. Sales volume of zeolite for the six months ended June 30, 2022 increased 1,294 tons over the six months ended June 30, 2021. Average sales price per ton increased $25.62 for the six months ended June 30, 2022 over the comparable six month period ending June 30, 2021.

Construction of the new 50’x100’ warehouse (for additional storage of product) and the 40’x60’ shop (for servicing equipment) continued. The structures are substantially complete as of the date of this report and will be put into service in the third quarter of 2022.

During the three and six months ended June 30, 2022, the Company purchased a Cat 740 haul truck to replace aging equipment. The Company also took delivery on a Cat 992 during the same period.

Page 22 of 32

Precious Metals

Financial and operational performance of precious metals for the three months ended June 30, 2022 and 2021 was as follows:

	Three months ended June 30,
Precious metals	2022		2021		$ Change			Pct Change
Total revenue - precious metals	$	95,453	$	130,195	$	(34,742	)		(26.7	)%
Gross profit precious metals		67,779		101,969		(34,190	)		(33.5	)%
Ounces sold - gold		11.06		14.74		(3.68	)		(24.9	)%
Ounces sold - silver		3,319		6,254		(2,935	)		(46.9	)%

Financial and operational performance of precious metals for the three months ended June 30, 2022 and 2021 was as follows:

	Six months ended June 30,
Precious metals	2022		2021		$ Change			Pct Change
Total revenue - precious metals		172,787		206,428		(33,641	)		(16.3	)%
Gross profit precious metals		117,593		150,598		(33,005	)		(21.9	)%
Ounces sold-gold		21.35		22.00		(0.65	)		(3.0	)%
Ounces sold-silver		8,175		9,608		(1,433	)		(14.9	)%

Page 23 of 32

EARNINGS BEFORE INTEREST TAX DEPRECIATION AND AMORTIZATION

The Company utilizes Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”), a non-GAAP financial measurement which approximates free cash flow.

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was $595,360 for the three months ended June 30, 2022, compared to EBITDA of $557,965 for the three months ended June 30, 2021. The primary driver of the June 30, 2021 EBITDA was a one-time non-recurring gain on forgiveness of CARES Act funds on a loan received in 2020 during the global pandemic and subsequent federal government economic stimulus program.

Income from operations improved from a company-wide loss of $232,190 for the three months ended June 30, 2021 to income from operations of $366,935 for the three months ended June 30, 2022. As a percentage of sales, income from operations improve from a negative 10.2% in 2021 to 11.7% in 2022 for the three-month period. Primary drivers include continued strong market prices for antimony and zeolite combined with relatively stable prices for cost of goods sold during the period.

EBIDTA schedules by business segment for the three months ended June 30, 2022 and June 30, 2021 is presented as follows.

Antimony - Combined USA and Mexico	Three months ended June 30, 2022					Three months ended June 30, 2021					$ Change			Change as a % of Revenue
Gross antimony revenue	$	2,472,081		100.0	%	$	1,428,939		100.0	%	$	1,043,142			0.0	%
Cost of sales		(1,981,522	)	(80.2	)%		(1,491,161	)	(104.4	)%		(490,361	)		24.2	%
Gross profit		490,559		19.8	%		(62,222	)	(4.4	)%		552,781			24.2	%
Operating expenses		(345,527	)	(14.0	)%		(413,499	)	(28.9	)%		67,972			15.0	%
Income (loss) from operations		145,032		5.9	%		(475,721	)	(33.3	)%		620,753			39.2	%
Non-operating income (expense)		(3,975	)	(2.6	)%		570,147		39.9	%		(574,122	)		(40.1	)%
Net income - antimony		141,057		5.7	%		94,426		6.6	%		46,631			(0.9	)%
Interest expense		1,343		0.1	%		38		0.0	%		1,305			0.1	%
Depreciation and amortization		154,837		6.3	%		152,892		10.7	%		1,945			(4.4	)%
EBITDA - antimony	$	297,237		12.0	%	$	247,356		17.3	%	$	49,881			(5.3	)%

Zeolite	Three months ended June 30, 2022					Three months ended June 30, 2021					$ Change			Change as a % of Revenue
Gross zeolite revenue	$	1,020,391		100.0	%	$	716,428		100.0	%	$	303,963			0.0	%
Cost of sales		(856,319	)	(83.9	)%		(559,777	)	(78.1	)%		(296,542	)		(5.8	)%
Gross profit - zeolite		164,072		16.1	%		156,651		21.9	%		7,421			(5.8	)%
Operating expenses		(9,948	)	(1.0	)%		(15,089	)	(2.1	)%		5,141			1.1	%
Income (loss) from operations		154,124		15.1	%		141,562		19.8	%		12,562			(4.7	)%
Non-operating expenses		(1,737	)	(0.2	)%		(816	)	(0.1	)%		(921	)		(0.1	)%
Net income - zeolite		152,387		14.9	%		140,746		19.6	%		11,641			(4.7	)%
Interest expense		1,738		0.2	%		842		0.1	%		896			0.1	%
Depreciation and amortization		48,546		4.8	%		38,826		5.4	%		9,720			(0.7	)%
EBITDA - zeolite	$	202,671		19.9	%	$	180,414		25.2	%	$	22,257			(5.3	)%

Page 24 of 32

Precious Metals	Three months ended June 30, 2022					Three months ended June 30, 2021					$ Change			Change as a % of Revenue
Gross precious metals revenue		95,453		100.0	%		130,195		100.0	%		(34,742	)		0.0	%
Production costs		(27,674	)	(29.0	)%		(28,226	)	(21.7	)%		552			(7.3	)%
Gross profit		67,779		71.0	%		101,969		78.3	%		(34,190	)		(7.3	)%
Operating expenses		-		0.0	%		-		0.0	%		-			0.0	%
Income from operations		67,779		71.0	%		101,969		78.3	%		(34,190	)		(7.3	)%
Non-operating income		-		0.0	%		-		0.0	%		-			0.0	%
Net income - antimony		67,779		71.0	%		101,969		78.3	%		(34,190	)		(7.3	)%
Interest expense		-		0.0	%		-		0.0	%		-			0.0	%
Depreciation and amortization		27,674		29.0	%		28,226		21.7	%		(552	)		7.3	%
EBITDA - precious metals		95,453		100.0	%		130,195		100.0	%		(34,742	)		0.0	%

Company-wide	Three months ended June 30, 2022					Three months ended June 30, 2021					Change			Change as a % of Revenue
Gross revenue		3,587,925		100.0	%		2,275,562		100.0	%		1,312,363			0.0	%
Cost of sales		(2,865,515	)	(79.9	)%		(2,079,164	)	(91.4	)%		(786,351	)		11.5	%
Gross profit		722,410		20.1	%		196,398		8.6	%		526,012			11.5	%
Operating expenses		(355,475	)	(9.7	)%		(428,588	)	(18.8	)%		73,113			8.9	%
Income (loss) from operations		366,935		10.2	%		(232,190	)	(10.2	)%		599,125			18.6
Non-operating income (expense)		(5,712	)	(0.2	)%		569,331		25.0	%		(575,043			(25.2	)%
Net income (loss)		361,223		10.1	%		337,141		14.8	%		24,082			(4.7	)%
Interest expense		3,081		0.1	%		880		0.0	%		2,201			0.0	%
Depreciation and amortization		231,057		6.4	%		219,944		9.7	%		11,113			(3.2	)%
EBITDA		595,360		16.6	%		557,965		24.5	%		37,395			(7.9	)%

Page 25 of 32

EBIDTA schedules by business segment for the six months ended June 30, 2022 and June 30, 2021 is presented as follows.

Antimony - Combined USA and Mexico	Six months ended June 30, 2022					Six months ended June 30, 2021					$ Change			Change as a % of Revenue
Gross antimony revenue	$	5,301,011		100.0	%	$	2,086,046		100.0	%	$	3,214,965			0.0	%
Cost of sales		(3,754,675	)	(70.8	)%		(2,060,801	)	(98.8	)%		(1,693,874	)		28.0	%
Gross profit		1,546,336		29.2	%		25,245		1.2	%		1,521,091			28.0	%
Operating expenses		(693,829	)	(13.1	)%		(958,203	)	(45.9	)%		264,374			32.8	%
Income (loss) from operations		852,507		16.1	%		(932,958	)	(44.7	)%		1,785,465			60.8	%
Non-operating income (expense)		3,335	)	(0.1	)%		576,782		27.6	%		(573,447	)		(27.6	)%
Net income (loss) - antimony		855,843		16.1	%		(356,176	)	(17.1	)%		1,212,018			33.2	%
Interest expense		3,688		0.1	%		1,565		0.1	%		2,123			(0.0	)%
Depreciation and amortization		302,763		5.7	%		305,735		14.7	%		(2,972	)		(8.9	)%
EBITDA - antimony	$	1,162,294		21.9	%	$	(48,876	)	(2.3	)%	$	1,211,169			24.3	%

Zeolite	Six months ended June 30, 2022					Six months ended June 30, 2021					$ Change			Change as a % of Revenue
Gross zeolite revenue	$	1,694,433		100.0	%	$	1,236,375		100.0	%	$	458,058			0.0	%
Cost of sales		(1,496,564	)	(88.3	)%		(1,003,663	)	(81.2	)%		(492,901	)		(7.1	)%
Gross profit - zeolite		197,869		11.7	%		232,712		18.8	%		(34,843	)		(7.1	)%
Operating expenses		(21,454	)	(1.3	)%		(24,268	)	(2.0	)%		2,814			0.7	%
Income from operations		176,415		10.4	%		208,444		16.9	%		(32,029	)		(6.4	)%
Non-operating expenses		(2,375	)	(0.1	)%		(1,213	)	(0.1	)%		(1,162	)		(0.0	)%
Net income - zeolite		174,040		10.3	%		207,231		16.8	%		(33,191	)		(6.5	)%
Interest expense		2,375		0.1	%		1,570		0.1	%		805			0.0	%
Depreciation and amortization		93,250		5.5	%		80,843		6.5	%		12,407			(1.0	)%
EBITDA - zeolite	$	269,665		15.9	%	$	289,644		23.4	%	$	(19,979	)		(7.5	)%

Page 26 of 32

Precious Metals	Six months ended June 30, 2022					Six months ended June 30, 2021					$ Change			Change as a % of Revenue
Gross precious metals revenue	$	172,787		100.0	%	$	206,428		100.0	%	$	(33,641	)		0.0	%
Cost of sales		(55,194	)	(31.9	)%		(55,830	)	(27.0	)%		636			(4.9	)%
Gross profit - precious metals		117,593		68.1	%		150,598		73.0	%		(33,005	)		(4.9	)%
Operating expenses		-		0.0	%		-		0.0	%		-			0.0	%
Income from operations		117,593		68.1	%		150,598		73.0	%		(33,005	)		(4.9	)%
Non-operating expenses		-		0.0	%		-		0.0	%		-			0.0	%
Net income - precious metals		117,593		68.1	%		150,598		73.0	%		(33,005	)		(4.9	)%
Interest expense		-		0.0	%		-		0.0	%		-			0.0	%
Depreciation and amortization		55,194		31.9	%		55,830		27.0	%		(636	)		4.9	%
EBITDA - precious metals	$	172,787		100.0	%	$	206,428		100.0	%	$	(33,641	)		0.0	%

Company-wide	Six months ended June 30, 2022					Six months ended June 30, 2021					Change			Change as a % of Revenue
Gross revenue	$	7,168,231		100.0	%	$	3,528,849		100.0	%	$	3,639,382			0.0	%
Cost of sales		(5,306,433	)	(74.0	)%		(3,120,294	)	(88.4	)%		(2,186,139			14.4	%
Gross profit		1,861,798		26.0	%		408,555		11.6	%		1,453,243			14.4	%
Operating expenses		(715,283	)	(10.0	)%		(982,471	)	(27.8	)%		267,188			17.9	%
Income (loss) from operations		1,146,515		16.0	%		(573,916	)	(16.3	)%		1,720,431			32.3	%
Non-operating income (expense)		960		(0.0	)%		575,569		16.3	%		(574,609	)		(16.3	)%
Net income		1,147,475		16.0	%		1,653		0.0	%		1,145,822			16.0	%
Interest expense		6,063		0.1	%		3,135		0.1	%		2,928			(0.0	)%
Depreciation and amortization		451,207		6.3	%		442,408		12.5	%		8,799			(6.2	)%
EBITDA	$	1,604,745		22.4	%	$	447,196		12.7	%	$	1,157,549			9.7	%

Page 27 of 32

LIQUIDITY AND FINANCIAL CONDITION

WORKING CAPITAL	June 30, 2022			December 31, 2021
Current assets	$	24,126,852		$	23,568,992
Current liabilities		(1,460,946	)		(2,020,855	)
Working capital	$	22,665,906		$	21,548,137

	For the six months ended
CASH FLOWS	June 30, 2022			June 30, 2021
Cash flow provided (used) by operating activities	$	745,038		$	(2,236,609	)
Cash flow used by investing activities		(13,775,850	)		95,057
Cash flow provided (used) by financing activities		(19,767	)		23,841,057
Net change in cash during period	$	(13,050,579	)	$	21,699,505

As of June 30, 2022, the Company had cash and cash equivalents of hand of $8,369,750 which consisted of $8,312,469 in money market funds and deposit accounts along with $57,281 of restricted cash.

Net cash provided by operating activities was $745,038 for the six-month period ending June 30, 2022, compared with cash used by operating activities of $2,236,609 during the six-month period ended June 20, 2021. The $2,981,647 change in cash from operating activities is attributable to a decrease in existing inventories coupled with continuing strong revenue from antinomy sales which have more than doubled in the current year.

Net cash used by investing activities of $13,775,850 included the purchase of a caterpillar for the Bear River Zeolite operation and ongoing construction of a new warehouse in Preston, ID. The Company also invested $13,500,000 in a managed investment account, seeking to improve its return on investment versus maintaining deposits in a low-interest bearing money market account. The managed investment account  invests in primarily US Treasury Bonds and other fixed income funds.

Cash flow used by financing activities for the six months ended June 30, 2022 was $19,767 compared to a cash flow provided by financing activities of $23,841,057 for the six months ended June 30, 2021. In 2021, the Company raised $25,132,883 from the issuance of common stock and warrants and the exercise of warrants by existing shareholders. This capital raise was not recurring during the six months ended June 30, 2022.

For the year ending December 31, 2022, we are planning to use funds acquired from the two stock offerings raised in 2021 to make significant improvements to our operations at Madero, Puerto Blanco, Bear River Zeolite, and Thompson Falls facilities with the goal of increasing production and decreasing costs.

In the past, the Company has been successful in raising required capital from sale of common stock.  As a result of planned operations and potential equity sales and potential debt borrowings, management believes cash flows from operations and existing cash and investments are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company does not hold any derivative instruments and does not engage in any hedging activities.

Page 28 of 32

ITEM 4. CONTROLS AND PROCEDURES

Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the President and Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the PEO and the PFO have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures. 

Management of the Company believes that these material weaknesses are due to the small size of the Company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Changes in Internal Control over Financial Reporting

There have been no changes during the quarter ended June 30, 2022 in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

Page 29 of 32

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

United States Antimony Corporation is not a party to any material legal proceedings, and, to Management’s knowledge, no such proceedings are threatened or contemplated. No director, officer or affiliate of United States Antimony Corporation and no owner of record or beneficial owner of more than 5% of the Company’s securities or any associate of any such director, officer or security holder is a party adverse to United States Antimony Corporation or has a material interest adverse to United States Antimony Corporation in reference to pending litigation.

ITEM 1A. RISK FACTORS.

There have been no material changes from the risk factors as previously disclosed in the Company’s Form 10-K for the year ended December 31, 2021 which was filed with the SEC on March 31, 2022.

ITEM 2. RECENT SALES OF UNREGISTERED SECURITIES.

For the three months ended June 30, 2022, the Company sold no common stock.

During the three months ended June 30, 2022, neither the Company nor any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) purchased any shares of our Common Stock, the only class of the Company’s equity securities registered pursuant to section 12 of the Exchange Act at the date of this filing.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. MINE SAFETY DISCOSURES.

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. The information concerning mine safety violations or other regulatory matters required by Section 1503 (a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report.

ITEM 5. OTHER INFORMATION.

None

Page 30 of 32

ITEM 6. EXHIBITS.

Exhibit No.	Description
31.1	Rule 15d-14(a) Certification by Principal Executive Officer
31.2	Rule 15d-14(a) Certification by Principal Financial Officer
32.1	Section 1350 Certification of Principal Executive Officer
32.2	Section 1350 Certification of Principal Financial Officer
95	Mine Safety Disclosure
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

In accordance with Rule 402 of Regulation S-T, the XBRL information included in Exhibit 101 to this Form 10-Q shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Page 31 of 32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	UNITED STATES ANTIMONY CORPORATION
Date: August 16, 2022	By:	/s/ Russell Lawrence
		Russell Lawrence
		(Principal Executive Officer, President and Director)
Date: August 16, 2022	By:	/s/ Kelly J. Stopher
		Kelly J. Stopher
		(Principal Accounting Officer)

Page 32 of 33

EX-31.1

EXHIBIT 31.1

Certification

I, Russell Lawrence, certify that:

1.             I have reviewed this quarterly report on Form 10-Q of United States Antimony Corporation for the quarter ended June 30, 2022;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.             The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.             The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 16, 2022

/s/ Russell Lawrence                          

Russell Lawrence, President and Director

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification

I, Kelly J. Stopher, certify that:

1.             I have reviewed this quarterly report on Form 10-Q of United States Antimony Corporation for the quarter ended June 30, 2022;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.             The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)           Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.             The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 16, 2022

/s/ Kelly J. Stopher                             

Kelly J. Stopher, Chief Financial Officer

(Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

                In connection with the quarterly report of United States Antimony Corporation (the “Company”) on Form 10‑Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission (the “Report”), the undersigned principal executive officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)           the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)           the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 16, 2022

/s/ Russell Lawrence                                          

Russell Lawrence, President and Director

(Principal Executive Officer)

EX-32.2

  EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

                In connection with the quarterly report of United States Antimony Corporation (the “Company”) on Form 10‑Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission (the “Report”), the undersigned principal executive officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)           the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)           the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 16, 2022

/s/ Kelly J. Stopher                                                             

Kelly J. Stopher, Chief Financial Officer

(Principal Accounting Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 16, 2022
Cover [Abstract]
Entity Registrant Name	UNITED STATES ANTIMONY CORPORATION
Entity Central Index Key	0000101538
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		106,240,361
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-08675
Entity Incorporation State Country Code	MT
Entity Tax Identification Number	81-0305822
Entity Interactive Data Current	Yes
Entity Address Address Line 1	P.O. Box 643
Entity Address City Or Town	Thompson Falls
Entity Address State Or Province	MT
Entity Address Postal Zip Code	59873
City Area Code	406
Local Phone Number	827-3523
Security 12b Title	Common Stock, $0.01 par value
Trading Symbol	UAMY
Security Exchange Name	NYSE

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash and cash equivalents	$ 8,312,469	$ 21,363,048
Certificates of deposit	259,210	259,210
Accounts receivable	1,604,660	891,314
Prepaid expenses	60,916	0
Inventories (NOTE 5)	590,204	1,055,420
Investments (NOTE 11)	13,299,393	0
Total current assets	24,126,852	23,568,992
Properties, plants and equipment, net (NOTE 6)	11,242,721	11,133,733
Restricted cash for reclamation bonds	57,281	57,281
IVA receivable and other assets	329,163	242,721
Total assets	35,756,017	35,002,727
CURRENT LIABILITIES:
Accounts payable	679,597	1,385,752
Payable to related parties	4,084	0
Accrued liabilities	685,918	621,873
Long-term debt, current portion (NOTE 8)	91,347	13,230
Total current liabilities	1,460,946	2,020,855
Long-term debt, net of current portion (NOTE 8)	265,636	201,920
Stock payable to directors for services	187,500	112,500
Asset retirement obligations and accrued reclamation costs (NOTE 7)	325,657	298,649
Total liabilities	2,239,739	2,633,924
STOCKHOLDERS' EQUITY
Common stock, $.001 par value; 300,000,000 shares authorized; 106,240,361 shares issued and outstanding	1,062,402	1,062,402
Additional paid-in capital	63,991,459	63,991,459
Accumulated deficit	(31,563,788)	(32,711,263)
Total stockholders' equity	33,516,278	32,368,803
Total liabilities and stockholders' equity	35,756,017	35,002,727
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Series A: 0 shares issued and outstanding	0	0
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Series A: 0 shares issued and outstanding	7,500	7,500
Series C Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Series A: 0 shares issued and outstanding	1,779	1,779
Series D Preferred Stock Member
STOCKHOLDERS' EQUITY
Series A: 0 shares issued and outstanding	$ 16,926	$ 16,926

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	300,000,000	300,000,000
Common stock, issued shares	106,240,361	106,240,361
Common stock, outstanding shares	106,240,361	106,240,361
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Series A Preferred Stock [Member]
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Series B Preferred Stock [Member]
Preferred stock, issued shares	750,000	750,000
Preferred stock, outstanding shares	750,000	750,000
Preferred stock liquidation preference	$ 956,250	$ 952,500
Series C Preferred Stock [Member]
Preferred stock, issued shares	177,904	177,904
Preferred stock, outstanding shares	177,904	177,904
Preferred stock liquidation preference	$ 97,847	$ 97,847
Series D Preferred Stock Member
Preferred stock, issued shares	1,692,672	1,692,672
Preferred stock, outstanding shares	1,692,672	1,692,672
Preferred stock liquidation preference	$ 4,979,632	$ 4,979,632

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
REVENUE	$ 3,587,925	$ 2,275,562	$ 7,168,231	$ 3,528,849
COST OF REVENUE	2,865,515	2,079,164	5,306,433	3,120,294
GROSS PROFIT	722,410	196,398	1,861,798	408,555
OPERATING EXPENSES
General and administrative	220,591	290,111	381,272	460,161
Salaries and benefits	72,912	77,278	146,047	153,937
Other operating expenses	14,045	0	17,960	184,037
Legal and professional fees	47,927	61,199	170,004	184,336
TOTAL OPERATING EXPENSES	355,475	428,588	715,283	982,471
INCOME (LOSS) FROM OPERATIONS	366,935	(232,190)	1,146,515	(573,916)
OTHER INCOME (EXPENSE)
Interest expense	(3,081)	(880)	(6,063)	(3,135)
Interest and investment income	30,052	13,389	39,706	21,882
Change in fair value of investments	(93,458)	0	(93,458)	0
Trademark and licensing income	60,775	0	60,775	0
Gain on forgiveness - CARES Act debt	0	443,400	0	443,400
Gain on settlement of Hillgrove advance	0	113,422	0	113,422
TOTAL OTHER INCOME (EXPENSE)	(5,712)	569,331	960	575,569
NET INCOME	361,223	337,141	1,147,475	1,653
Preferred dividends	(11,819)	(12,162)	(23,639)	(24,325)
Net income available to common stockholders	$ 349,404	$ 324,979	$ 1,123,836	$ (22,672)
Net income per share of common stock
Basic and diluted			$ 0.01
Weighted average shares outstanding:
Basic	106,240,361	106,315,419	106,240,361	99,513,378
Diluted	106,240,361	108,696,704	106,240,361	99,513,378

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (UNAUDITED) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance, shares at Dec. 31, 2020		2,678,909	75,949,757
Balance, amount at Dec. 31, 2020	$ 7,186,389	$ 26,788	$ 759,496	$ 39,050,899	$ (32,650,794)
Common shares issued for cash, shares			26,290,000
Common shares issued for cash, amount	24,997,000	0	$ 262,900	24,734,100	0
Common stock issuance costs	(1,654,820)	0	$ 0	(1,654,820)	0
Common stock issued for exercise of warrants, shares			3,723,810
Common stock issued for exercise of warrants, amount	1,763,619	0	$ 37,238	1,726,381	0
Net income (loss)	(335,488)	$ 0	$ 0	0	(335,488)
Balance, shares at Mar. 31, 2021		2,678,909	105,963,567
Balance, amount at Mar. 31, 2021	31,956,700	$ 26,788	$ 1,059,634	63,856,560	(32,986,282)
Balance, shares at Dec. 31, 2020		2,678,909	75,949,757
Balance, amount at Dec. 31, 2020	7,186,389	$ 26,788	$ 759,496	39,050,899	(32,650,794)
Net income (loss)	1,653
Balance, shares at Jun. 30, 2021		2,678,909	106,005,234
Balance, amount at Jun. 30, 2021	32,320,925	$ 26,788	$ 1,060,051	63,883,227	(32,649,141)
Balance, shares at Mar. 31, 2021		2,678,909	105,963,567
Balance, amount at Mar. 31, 2021	31,956,700	$ 26,788	$ 1,059,634	63,856,560	(32,986,282)
Common stock issued for exercise of warrants, shares			41,667
Common stock issued for exercise of warrants, amount	27,084	0	$ 417	26,667	0
Net income (loss)	337,141	$ 0	$ 0	0	337,141
Balance, shares at Jun. 30, 2021		2,678,909	106,005,234
Balance, amount at Jun. 30, 2021	32,320,925	$ 26,788	$ 1,060,051	63,883,227	(32,649,141)
Balance, shares at Dec. 31, 2021		2,620,576	106,240,361
Balance, amount at Dec. 31, 2021	32,368,803	$ 26,205	$ 1,062,402	63,991,459	(32,711,263)
Net income (loss)	786,252	$ 0	$ 0	0	786,252
Balance, shares at Mar. 31, 2022		2,620,576	106,240,361
Balance, amount at Mar. 31, 2022	33,155,055	$ 26,205	$ 1,062,402	63,991,459	(31,925,011)
Balance, shares at Dec. 31, 2021		2,620,576	106,240,361
Balance, amount at Dec. 31, 2021	32,368,803	$ 26,205	$ 1,062,402	63,991,459	(32,711,263)
Net income (loss)	1,147,475
Balance, shares at Jun. 30, 2022		2,620,576	106,240,361
Balance, amount at Jun. 30, 2022	33,516,278	$ 26,205	$ 1,062,402	63,991,459	(31,563,788)
Balance, shares at Mar. 31, 2022		2,620,576	106,240,361
Balance, amount at Mar. 31, 2022	33,155,055	$ 26,205	$ 1,062,402	63,991,459	(31,925,011)
Net income (loss)	361,223	$ 0	$ 0	0	361,223
Balance, shares at Jun. 30, 2022		2,620,576	106,240,361
Balance, amount at Jun. 30, 2022	$ 33,516,278	$ 26,205	$ 1,062,402	$ 63,991,459	$ (31,563,788)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,147,475	$ 1,653
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization	451,207	442,408
Accretion of asset retirement obligation	11,412	1,732
Common stock payable for directors fees	75,000	56,250
Gain on settlement of Hillgrove advance	0	(113,422)
Gain on forgiveness of Cares Act debt	0	(443,400)
Write down of inventory to net realizable value	136,836	66,054
Change in fair value of investments	93,458	0
Changes in operating assets and liabilities:
Accounts receivable	(713,346)	(362,681)
Inventories	328,380	17,448
Prepaid expenses	(60,916)	0
IVA receivable and other assets	(86,442)	(15,402)
Accounts payable	(706,155)	(519,570)
Accrued liabilities	64,045	(92,927)
Export tax assessment payable	0	(1,120,730)
Payable to related parties	4,084	(154,022)
Net cash provided (used) by operating activities	745,038	(2,236,609)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from redemption of certificates of deposit	0	210,184
Purchase of investments	(13,789,772)	0
Proceeds from sales of investments	396,921	0
Purchase of properties, plants and equipment	(382,999)	(115,127)
Net cash provided (used) by investing activities	(13,775,850)	95,057
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in checks issued and payable	0	(86,685)
Payments on advances from related party	0	(56,416)
Proceeds from issuance of common stock, net of issuance costs	0	23,342,180
Proceeds from exercise of warrants	0	1,790,703
Payments on Hillgrove advances payable	0	(1,020,799)
Principal paid on notes payable to bank	0	(100,000)
Principal payments of long-term debt	(19,767)	(27,926)
Net cash provided (used) by financing activities	(19,767)	23,841,057
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(13,050,579)	21,699,505
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	21,420,329	722,377
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	8,369,750	22,421,882
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Equipment purchased with note payable	161,600	0
Common stock payable to directors	0	130,483
Payable to related party satisfied with exercise of stock purchase warrants	$ 0	$ 62,500

XML

NATURE OF OPERATIONS

6 Months Ended

Jun. 30, 2022

NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

NOTE 1 - NATURE OF OPERATIONS

AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products.

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico.

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company.

In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc. (previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A. de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.

In its operations in Montana, the Company produces antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. The Company also sells antimony metal for use in bearings, storage batteries and ordnance.

In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer. Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications.

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2022, and its results of operations for the three and six months ended June 30, 2022, and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the three and six month periods ended June 30, 2022, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022.

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 31, 2022.

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements.

Reclassifications

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported.

COVID -19

The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies.

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced availability of contractors and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including its ability to conduct operations.

The Company has taken steps to mitigate the potential risks to suppliers and employees posed by the spread of COVID-19, including work from home policies where appropriate. The Company will continue to monitor developments affecting both its workforce and contractors, and will take additional precautions as necessary. The ultimate impact of COVID-19 depends on factors beyond management’s knowledge or control, including its duration and third-party actions to contain its spread and mitigate its public health effects. Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

Investments

The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date. Equity securities that have a readily determinable fair value are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the consolidated statement of operations each reporting period. Gains and losses on the sale of securities are recognized on a specific identification basis.

New Accounting Pronouncements

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

XML

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

Net income per share of common stock

3. EARNINGS PER SHARE

NOTE 3– EARNINGS PER SHARE

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

At June 30, 2022 and 2021, 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:

	June 30, 2022		June 30, 2021
Warrants		12,489,922		2,471,089
Convertible preferred stock		1,692,672		1,751,005
TOTAL POSSIBLE DILUTIVE SHARES		14,182,594		4,222,094

XML

REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2022

REVENUE RECOGNITION

4. REVENUE RECOGNITION

NOTE 4 – REVENUE RECOGNITION

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

Sales of products for the three-months ended June 30, 2022 and 2021 were as follows:

	For the three months ended
	June 30, 2022		June 30, 2021
Antimony	$	2,472,081	$	1,428,939
Zeolite		1,020,391		716,428
Precious metals		95,453		130,195
TOTAL REVENUE BY PRODUCT	$	3,587,925	$	2,275,562

Sales of products for the six months ended June 30, 2022 and 2021 were as follows:

	For the six months ended
	June 30, 2022		June 30, 2021
Antimony	$	5,301,011	$	2,086,046
Zeolite		1,694,433		1,236,375
Precious metals		172,787		206,428
TOTAL REVENUE BY PRODUCT	$	7,168,231	$	3,528,849

For the three and six months ended June 30, 2022, the Company also received royalties related to a trademark and licensing agreement in its antimony business segment. For the three and six months ended June 30, 2022, trademark and licensing income of $60,775 is included in other income in the antimony business segment (Note 12). For the three and six months ended June 30, 2021, trademark and licensing income was $Nil.

The Company’s trade accounts receivable balance related to contracts with customers was $1,604,660 at June 30, 2022 and $891,314 at December 31, 2021. The Company’s products do not involve any warranty agreements and product returns are not typical.

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INVENTORIES

6 Months Ended

Jun. 30, 2022

INVENTORIES

5. INVENTORIES

NOTE 5– INVENTORIES

Inventories at June 30, 2022 and December 31, 2021 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. Inventories at June 30, 2022 and December 31, 2021 are as follows:

	June 30, 2022		December 31, 2021
Antimony Metal	$	128,591	$	234,461
Antimony Oxide		278,134		439,086
Antimony Ore Concentrates		28,392		119,046
Total antimony		435,117		792,593
Zeolite		155,087		262,827
TOTAL INVENTORIES	$	590,204	$	1,055,420

Inventories are valued at cost except for the portion related to Mexican operations which are valued at net realizable value because the production costs of the Mexican inventory were greater than the amount the Company expected to receive on the sale of the pounds of antimony contained in inventory. The adjustment to inventory, which is included in cost of revenue on the statements of operations was $136,836 and $66,054 for the six months ended June 30, 2022 and 2021, respectively.

Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico. The Company’s zeolite inventory consists of saleable zeolite material.

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PROPERTIES PLANTS AND EQUIPMENT

6 Months Ended

Jun. 30, 2022

PROPERTIES PLANTS AND EQUIPMENT

6. PROPERTIES, PLANTS AND EQUIPMENT

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

The major components of the Company’s properties, plants and equipment by segment at June 30, 2022 and December 31, 2021 are shown below:

	Antimony Segment						Zeolite Segment			Precious Metals
June 30, 2022	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,759,271		$	9,197,870		$	4,051,016		$	1,347,912		$	16,356,069
Buildings		243,248			590,128			801,764			-			1,635,140
Construction in progress		-			280,406			332,629			-			613,035
Land and other		2,431,387			2,656,037			16,753			-			5,104,177
		4,433,906			12,724,441			5,202,162			1,347,912			23,708,421
Accumulated depreciation		(2,747,396	)		(5,904,748	)		(3,318,286	)		(495,270	)		(12,465,700	)
	$	1,686,510		$	6,819,693		$	1,883,876		$	852,642		$	11,242,721

	Antimony Segment						Zeolite Segment			Precious Metals
December 31, 2021	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,684,977		$	8,905,899		$	3,853,056		$	1,330,394		$	15,774,326
Buildings		243,248			870,534			801,764			-			1,915,546
Construction in progress		-			280,406			184,972			-			465,378
Land and other		2,431,387			2,640,441			16,753			-			5,088,581
	$	4,359,612		$	12,697,280		$	4,856,545		$	1,330,394		$	23,243,831
Accumulated depreciation		(2,732,809	)		(5,622,555	)		(3,314,658	)		(440,076	)		(12,110,098	)
	$	1,626,803		$	7,074,725		$	1,541,887		$	890,318		$	11,133,733

At June 30, 2022 and December 31, 2021, the Company had $613,035 and $665,175, respectively, of assets that were not yet placed in service and have not yet been depreciated.

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ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

6 Months Ended

Jun. 30, 2022

ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

7. ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

NOTE 7 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three months ended June 30,
	2022		2021
Asset retirement obligation, beginning of period	$	192,881	$	184,219
Change in estimate of asset retirement obligation		15,596		-
Accretion expense		9,680		1,732
Asset retirement obligation, end of period	$	218,157	$	185,951

	Six months ended June 30,
	2022		2021
Asset retirement obligation, beginning of period	$	191,149	$	184,219
Change in estimate of asset retirement obligation		15,596		-
Accretion expense		11,412		1,732
Asset retirement obligation, end of period	$	218,157	$	185,951

The Company’s total asset retirement obligation and accrued reclamation costs of $325,657 and $298,649, at June 30, 2022 and December 31, 2021, respectively, includes reclamation obligations for the Idaho and Montana operations of $107,500.

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DEBT

6 Months Ended

Jun. 30, 2022

DEBT

8. DEBT

NOTE 8 – DEBT

Long term debt at June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022			December 31, 2021
Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit	$	208,046		$	215,150
Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024; collateralized by 2007 Caterpillar 740 articulated truck		148,937			-
		356,983			215,150
Less current portion		(91,347	)		(13,230	)
Long term portion	$	265,636		$	201,920

At June 30, 2022, principal payments on debt are due as follows:

Twelve months ending June 30,	Principal payment
2023	$	91,347
2024		82,573
2025		12,925
2026		13,219
2027		156,919
	$	356,983

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2022

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Company follows U.S. GAAP guidance in determining its accrual and disclosures with respect to loss contingencies, and evaluate such accruals and contingencies for each reporting period. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At June 30, 2022 and December 31, 2021, the Company had accrued liabilities of $1,270 and $Nil, respectively, relating to such assessments.

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three months ended June 30, 2022 and 2021, the Company incurred royalty expense of $85,870 and $69,437, respectively. During the six months ended June 30, 2022 and 2021, the Company incurred royalty expense of $147,900 and $131,567 respectively. Royalty expense is included in cost of goods sold on the condensed consolidated statement of operations.

At June 30, 2022 and December 31, 2021, the Company had accrued royalties payable of $409,887 and $346,242 respectively, which is included in accrued liabilities on the condensed consolidated balance sheets. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

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STOCKHOLDERS EQUITY

6 Months Ended

Jun. 30, 2022

STOCKHOLDERS' EQUITY

10. STOCKHOLDERS' EQUITY

NOTE 10 – STOCKHOLDERS’ EQUITY

During the six months ended June 30, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the six months ended June 30, 2021, the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants.

During the three months ended June 30, 2022 and June 30, 2021, the Company expensed $46,875 and $28,125, respectively, in directors’ fees payable that are anticipated to be paid in common stock. During the six months ended June 30, 2022 and June 30, 2021, the Company expensed $75,000 and $28,125, respectively in directors’ fees payable

At June 30, 2022 and December 31, 2021, the accrued balance of stock payable to directors fees for services was $187,500 and $112,500, respectively.

The Company issued no shares of common stock during the three or six months ended June 30, 2022. During the three and six months ended June 30, 2022, no warrants were exercised.

Common stock warrants

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent. There were no warrants exercised during the three or six months ended June 30, 2022.

The Company issued no warrants to purchase common stock during the three or six months ended June 30, 2022.

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

	Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and June 30, 2022		12,489,922		$	0.75

The composition of the Company’s warrants outstanding at June 30, 2022 is as follows:

Number of warrants		Exercise Price		Expiration Date	Remaining life (years)
	143,707	$	0.65	8/12/2022		0.12
	2,285,715		0.46	7/31/2025		3.09
	804,000		0.46	1/27/2026		3.58
	7,650,000		0.85	8/3/2026		4.10
	1,606,500		0.85	2/1/2026		3.59
	12,489,922

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INVESTMENTS

6 Months Ended

Jun. 30, 2022

INVESTMENTS

11 - INVESTMENTS

NOTE 11 – INVESTMENTS

In April 2022, the Company opened an investment account composed of U.S. Treasury bonds which are measured using Level 1 fair value inputs that are based on quoted prices in active markets.

For the three and six months ended June 30, 2022, the Company recognized $93,458 in the change in fair value of investments on the condensed consolidated statement of operations. As of June 30, 2022, the cost and fair value of the investment portion of the account was $13,492,655 and $13,431,774, respectively.

As of June 30, 2022, the cash and cash equivalent portion of the account was $132,380, which is included in cash and cash equivalents on the condensed consolidated balance sheet.

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BUSINESS SEGEMENTS

6 Months Ended

Jun. 30, 2022

BUSINESS SEGEMENTS

12.BUSINESS SEGEMENTS

NOTE 12 – BUSINESS SEGEMENTS

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 Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix will be produced. 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, although the Company does have a sales operation in Canada.

	For the three months ended June 30,				For the six months ended June 30,
Capital expenditures	2022		2021		2022		2021
Antimony
United States	$	51,927	$	-	$	80,277	$	-
Mexico		10,724		4,872		11,565		9,744
Subtotal antimony		62,651		4,872		91,842		9,744
Precious metals		9,138		18,921		17,518		37,347
Zeolite		299,865		68,036		435,239		68,036
Total	$	371,654	$	91,829	$	544,599	$	115,127

Total Assets:	June 30, 2022		December 31, 2021
Antimony
United States	$	24,552,558	$	24,130,348
Mexico		7,446,054		7,771,515
Subtotal antimony		31,998,612		31,901,863
Precious metals
United States		183,713		107,464
Mexico		668,929		782,854
Subtotal precious metals		852,642		890,318
Zeolite		2,904,763		2,210,546
TOTAL	$	35,756,017	$	35,002,727

Segment operations for the three months ended June 30, 2022	Antimony - USA		Antimony -Mexico		Total antimony		Precious Metals		Zeolite		Total
Total revenues	$	1,644,259	$	827,822	$	2,472,081	$	95,453	$	1,020,391	$	3,587,925
Depreciation and amortization	$	11,101	$	143,736	$	154,837	$	27,674	$	48,546	$	231,057
Income from operations	$	120,636	$	24,396	$	145,032	$	67,779	$	154,124	$	366,935
Other income (expense)		(3,975)		-		(3,975)		-		(1,737)		(5,712)
NET INCOME	$	116,661	$	24,396	$	141,057	$	67,779	$	152,387	$	361,223

Segment operations for the three months ended June 30, 2021	Antimony - USA		Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	1,428,939	$	-		$	1,428,939		$	130,195	$	716,428		$	2,275,562
Depreciation and amortization	$	7,893	$	144,999		$	152,892		$	28,226	$	38,826		$	219,944
Income (loss) from operations	$	99,642	$	(575,363	)	$	(475,721	)	$	101,969	$	141,562		$	(232,190	)
Other income (expense)		456,725		113,422			570,147			-		(816	)		569,331
NET LOSS	$	556,367	$	(461,941	)	$	94,426		$	101,969	$	140,746		$	337,141

Segment operations for the six months ended June 30, 2022	Antimony - USA		Antimony -Mexico			Total antimony		Precious Metals		Zeolite			Total
Total revenues	$	4,473,189	$	827,822		$	5,301,011	$	172,787	$	1,694,433		$	7,168,231
Depreciation and amortization	$	20,570	$	282,193		$	302,763	$	55,194	$	93,250		$	451,207
Income (loss) from operations	$	1,512,148	$	(659,641	)	$	852,507	$	117,593	$	176,415		$	1,146,515
Other income (expense)		3,335		-			3,335		-		(2,375	)		960
NET INCOME (LOSS)	$	1,515,483	$	(659,641	)	$	855,842	$	117,593	$	174,040		$	1,147,475

Segment operations for the six months ended June 30, 2021	Antimony - USA			Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	2,086,046		$	-		$	2,086,046		$	206,428	$	1,236,375		$	3,528,849
Depreciation and amortization	$	15,784		$	289,951		$	305,735		$	55,830	$	80,843		$	442,408
Income (loss) from operations	$	(119,027	)	$	(813,931	)	$	(932,958	)	$	150,598	$	208,444		$	(573,916	)
Other income (expense)		463,360			113,422			576,782			-		(1,213	)		575,569
NET INCOME (LOSS)	$	344,333		$	(700,509	)	$	(356,176	)	$	150,598	$	207,231		$	1,653

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

SUBSEQUENT EVENTS

13.SUBSEQUENT EVENTS

NOTE 13 – SUBSEQUENT EVENTS

On August 8, 2022, the Company executed a Purchase Option Agreement (the ‘agreement”) with SB Wadley SA de CV (“Wadley”) whereby the Company leases, with an option to acquire, mining claims located in Mexico known as the Wadley Property. Under the agreement, the Company will pay Wadley eight monthly installments of $11,600 for the right to mine and conduct geological and resource studies on the Wadley Property. At the end of the eight months, should the Company choose to exercise the option following due diligence and assessment of geological and resource studies, the Company will pay Wadley $2,230,000 and seven annual payments of $1,160,000.

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2022

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

Reclassifications

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported.

COVID -19

The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies.

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced availability of contractors and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including its ability to conduct operations.

The Company has taken steps to mitigate the potential risks to suppliers and employees posed by the spread of COVID-19, including work from home policies where appropriate. The Company will continue to monitor developments affecting both its workforce and contractors, and will take additional precautions as necessary. The ultimate impact of COVID-19 depends on factors beyond management’s knowledge or control, including its duration and third-party actions to contain its spread and mitigate its public health effects. Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

Investments

The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date. Equity securities that have a readily determinable fair value are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the consolidated statement of operations each reporting period. Gains and losses on the sale of securities are recognized on a specific identification basis.

New Accounting Pronouncements

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2022

Net income per share of common stock

Antidilutive securities excluded from computation of earnings per share

	June 30, 2022		June 30, 2021
Warrants		12,489,922		2,471,089
Convertible preferred stock		1,692,672		1,751,005
TOTAL POSSIBLE DILUTIVE SHARES		14,182,594		4,222,094

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REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2022

REVENUE RECOGNITION

Disaggregation of revenue

	For the three months ended
	June 30, 2022		June 30, 2021
Antimony	$	2,472,081	$	1,428,939
Zeolite		1,020,391		716,428
Precious metals		95,453		130,195
TOTAL REVENUE BY PRODUCT	$	3,587,925	$	2,275,562

	For the six months ended
	June 30, 2022		June 30, 2021
Antimony	$	5,301,011	$	2,086,046
Zeolite		1,694,433		1,236,375
Precious metals		172,787		206,428
TOTAL REVENUE BY PRODUCT	$	7,168,231	$	3,528,849

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2022

INVENTORIES

Total inventories

	June 30, 2022		December 31, 2021
Antimony Metal	$	128,591	$	234,461
Antimony Oxide		278,134		439,086
Antimony Ore Concentrates		28,392		119,046
Total antimony		435,117		792,593
Zeolite		155,087		262,827
TOTAL INVENTORIES	$	590,204	$	1,055,420

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PROPERTIES PLANTS AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2022

PROPERTIES PLANTS AND EQUIPMENT

Major components of the Company's properties

	Antimony Segment						Zeolite Segment			Precious Metals
June 30, 2022	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,759,271		$	9,197,870		$	4,051,016		$	1,347,912		$	16,356,069
Buildings		243,248			590,128			801,764			-			1,635,140
Construction in progress		-			280,406			332,629			-			613,035
Land and other		2,431,387			2,656,037			16,753			-			5,104,177
		4,433,906			12,724,441			5,202,162			1,347,912			23,708,421
Accumulated depreciation		(2,747,396	)		(5,904,748	)		(3,318,286	)		(495,270	)		(12,465,700	)
	$	1,686,510		$	6,819,693		$	1,883,876		$	852,642		$	11,242,721

	Antimony Segment						Zeolite Segment			Precious Metals
December 31, 2021	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,684,977		$	8,905,899		$	3,853,056		$	1,330,394		$	15,774,326
Buildings		243,248			870,534			801,764			-			1,915,546
Construction in progress		-			280,406			184,972			-			465,378
Land and other		2,431,387			2,640,441			16,753			-			5,088,581
	$	4,359,612		$	12,697,280		$	4,856,545		$	1,330,394		$	23,243,831
Accumulated depreciation		(2,732,809	)		(5,622,555	)		(3,314,658	)		(440,076	)		(12,110,098	)
	$	1,626,803		$	7,074,725		$	1,541,887		$	890,318		$	11,133,733

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ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS (Tables)

6 Months Ended

Jun. 30, 2022

ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation

	Three months ended June 30,
	2022		2021
Asset retirement obligation, beginning of period	$	192,881	$	184,219
Change in estimate of asset retirement obligation		15,596		-
Accretion expense		9,680		1,732
Asset retirement obligation, end of period	$	218,157	$	185,951

	Six months ended June 30,
	2022		2021
Asset retirement obligation, beginning of period	$	191,149	$	184,219
Change in estimate of asset retirement obligation		15,596		-
Accretion expense		11,412		1,732
Asset retirement obligation, end of period	$	218,157	$	185,951

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DEBT (Tables)

6 Months Ended

Jun. 30, 2022

DEBT

Long-term debt

	June 30, 2022			December 31, 2021
Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit	$	208,046		$	215,150
Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024; collateralized by 2007 Caterpillar 740 articulated truck		148,937			-
		356,983			215,150
Less current portion		(91,347	)		(13,230	)
Long term portion	$	265,636		$	201,920

Principal payments on debt

Twelve months ending June 30,	Principal payment
2023	$	91,347
2024		82,573
2025		12,925
2026		13,219
2027		156,919
	$	356,983

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STOCKHOLDERS EQUITY (Tables)

6 Months Ended

Jun. 30, 2022

STOCKHOLDERS EQUITY (Tables)

Common stock warrant activity

	Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and June 30, 2022		12,489,922		$	0.75

Warrants outstanding

Number of warrants		Exercise Price		Expiration Date	Remaining life (years)
	143,707	$	0.65	8/12/2022		0.12
	2,285,715		0.46	7/31/2025		3.09
	804,000		0.46	1/27/2026		3.58
	7,650,000		0.85	8/3/2026		4.10
	1,606,500		0.85	2/1/2026		3.59
	12,489,922

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BUSINESS SEGEMENTS (Tables)

6 Months Ended

Jun. 30, 2022

BUSINESS SEGEMENTS

Summary of capital expenditure

	For the three months ended June 30,				For the six months ended June 30,
Capital expenditures	2022		2021		2022		2021
Antimony
United States	$	51,927	$	-	$	80,277	$	-
Mexico		10,724		4,872		11,565		9,744
Subtotal antimony		62,651		4,872		91,842		9,744
Precious metals		9,138		18,921		17,518		37,347
Zeolite		299,865		68,036		435,239		68,036
Total	$	371,654	$	91,829	$	544,599	$	115,127

Segment information

Total Assets:	June 30, 2022		December 31, 2021
Antimony
United States	$	24,552,558	$	24,130,348
Mexico		7,446,054		7,771,515
Subtotal antimony		31,998,612		31,901,863
Precious metals
United States		183,713		107,464
Mexico		668,929		782,854
Subtotal precious metals		852,642		890,318
Zeolite		2,904,763		2,210,546
TOTAL	$	35,756,017	$	35,002,727

Summary of segement operation

Segment operations for the three months ended June 30, 2022	Antimony - USA		Antimony -Mexico		Total antimony		Precious Metals		Zeolite		Total
Total revenues	$	1,644,259	$	827,822	$	2,472,081	$	95,453	$	1,020,391	$	3,587,925
Depreciation and amortization	$	11,101	$	143,736	$	154,837	$	27,674	$	48,546	$	231,057
Income from operations	$	120,636	$	24,396	$	145,032	$	67,779	$	154,124	$	366,935
Other income (expense)		(3,975)		-		(3,975)		-		(1,737)		(5,712)
NET INCOME	$	116,661	$	24,396	$	141,057	$	67,779	$	152,387	$	361,223

Segment operations for the three months ended June 30, 2021	Antimony - USA		Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	1,428,939	$	-		$	1,428,939		$	130,195	$	716,428		$	2,275,562
Depreciation and amortization	$	7,893	$	144,999		$	152,892		$	28,226	$	38,826		$	219,944
Income (loss) from operations	$	99,642	$	(575,363	)	$	(475,721	)	$	101,969	$	141,562		$	(232,190	)
Other income (expense)		456,725		113,422			570,147			-		(816	)		569,331
NET LOSS	$	556,367	$	(461,941	)	$	94,426		$	101,969	$	140,746		$	337,141

Segment operations for the six months ended June 30, 2022	Antimony - USA		Antimony -Mexico			Total antimony		Precious Metals		Zeolite			Total
Total revenues	$	4,473,189	$	827,822		$	5,301,011	$	172,787	$	1,694,433		$	7,168,231
Depreciation and amortization	$	20,570	$	282,193		$	302,763	$	55,194	$	93,250		$	451,207
Income (loss) from operations	$	1,512,148	$	(659,641	)	$	852,507	$	117,593	$	176,415		$	1,146,515
Other income (expense)		3,335		-			3,335		-		(2,375	)		960
NET INCOME (LOSS)	$	1,515,483	$	(659,641	)	$	855,842	$	117,593	$	174,040		$	1,147,475

Segment operations for the six months ended June 30, 2021	Antimony - USA			Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	2,086,046		$	-		$	2,086,046		$	206,428	$	1,236,375		$	3,528,849
Depreciation and amortization	$	15,784		$	289,951		$	305,735		$	55,830	$	80,843		$	442,408
Income (loss) from operations	$	(119,027	)	$	(813,931	)	$	(932,958	)	$	150,598	$	208,444		$	(573,916	)
Other income (expense)		463,360			113,422			576,782			-		(1,213	)		575,569
NET INCOME (LOSS)	$	344,333		$	(700,509	)	$	(356,176	)	$	150,598	$	207,231		$	1,653

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NATURE OF OPERATIONS (Details Narrative)	6 Months Ended
	Jun. 30, 2022
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
Name of Subsidiary 1	Bear River Zeolite Company
Place of Subsidiary 1	Idaho
Owned Percentage 1	75.00%
Owned Remaining Percentage 1	25.00%
Name of Subsidiary 2	Antimonio de Mexico S.A. de C.V
Place of Subsidiary 2	Mexico
Owned Percentage 2	100.00%
Name of Subsidiary 3	Mexico S.A. de C.V
Place of Subsidiary 3	United States
Owned Percentage 3	100.00%
Owned Percentage 4	100.00%
Name of Subsidiary 4	Stibnite Holding Company US Inc.
Owned Percentage 5	100.00%
Name of Subsidiary 5	Antimony Mining and Milling US LLC
Place of Subsidiary 5	Delaware
Owned Percentage 6	100.00%
Place of Subsidiary 6	Mexico
Name of Subsidiary 6	Lanxess Laurel de Mexico, S.A. de C.V

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EARNINGS PER SHARE (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Total possible dilution	14,182,594	4,222,094
Cumulative Preferred Stock
Total possible dilution	1,692,672	1,751,005
Warrants
Total possible dilution	12,489,922	2,471,089

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REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
TOTAL REVENUE BY PRODUCT	$ 3,587,925	$ 2,275,562	$ 7,168,231	$ 3,528,849
Precious Metals
TOTAL REVENUE BY PRODUCT	95,453	130,195	172,787	206,428
Zeolite
TOTAL REVENUE BY PRODUCT	1,020,391	716,428	1,694,433	1,236,375
Antimony
TOTAL REVENUE BY PRODUCT	$ 2,472,081	$ 1,428,939	$ 5,301,011	$ 2,086,046

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REVENUE RECOGNITION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
REVENUE RECOGNITION
Trademark and licensing income	$ 60,775	$ 0	$ 60,775	$ 0
Accounts receivable	$ 1,604,660		$ 1,604,660		$ 891,314

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INVENTORIES (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Inventories	$ 590,204	$ 1,055,420
Antimony
Inventories	435,117	792,593
zeolite products
Inventories	155,087	262,827
Antimony Metals
Inventories	128,591	234,461
Antimony Oxides
Inventories	278,134	439,086
Antimony Ore Concentrates
Inventories	$ 28,392	$ 119,046

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INVENTORIES (Details Narrative) - USD ($)	Jun. 30, 2022	Jun. 30, 2021
INVENTORIES
Inventories adjustmentincluded in cost of revenue	$ 136,836	$ 66,054

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PROPERTIES PLANTS AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Plant and equipment	$ 16,356,069	$ 15,774,326
Buildings	1,635,140	1,915,546
Construction in progress	613,035	465,378
Land and other	5,104,177	5,088,581
Total	23,708,421	23,243,831
Accumulated depreciation	(12,465,700)	(12,110,098)
Properties, plants and equipment, net	11,242,721	11,133,733
Antimony Segment USAC
Plant and equipment	1,759,271	1,684,977
Buildings	243,248	243,248
Construction in progress	0	0
Land and other	2,431,387	2,431,387
Total	4,433,906	4,359,612
Accumulated depreciation	(2,747,396)	(2,732,809)
Properties, plants and equipment, net	1,686,510	1,626,803
Antimony Segment USAMSA
Plant and equipment	9,197,870	8,905,899
Buildings	590,128	870,534
Construction in progress	280,406	280,406
Land and other	2,656,037	2,640,441
Total	12,724,441	12,697,280
Accumulated depreciation	(5,904,748)	(5,622,555)
Properties, plants and equipment, net	6,819,693	7,074,725
Zeolite Segment BRZ
Plant and equipment	4,051,016	3,853,056
Buildings	801,764	801,764
Construction in progress	332,629	184,972
Land and other	16,753	16,753
Total	5,202,162	4,856,545
Accumulated depreciation	(3,318,286)	(3,314,658)
Properties, plants and equipment, net	1,883,876	1,541,887
Precious Metals Segment
Plant and equipment	1,347,912	1,330,394
Buildings	0	0
Construction in progress	0	0
Land and other	0	0
Total	1,347,912	1,330,394
Accumulated depreciation	(495,270)	(440,076)
Properties, plants and equipment, net	$ 852,642	$ 890,318

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PROPERTIES PLANTS AND EQUIPMENT (Details Narrative) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
PROPERTIES PLANTS AND EQUIPMENT (Details)
Assets not yet placed in service	$ 613,035	$ 665,175

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ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS (Details)
Asset retirement obligation, beginning of period	$ 192,881	$ 184,219	$ 191,149	$ 184,219
Accretion Expense	15,596	0	15,596	0
Change in estimate of asset retirement obligation	9,680	1,732	11,412	1,732
Asset retirement obligation, end of period	$ 218,157	$ 185,951	$ 218,157	$ 185,951

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ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS (Details Narrative) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS (Details)
Asset retirement obligation liability with reclamation obligations	$ 325,657	$ 298,649
Reclamation obligations	$ 107,500

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DEBT (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Noncurrent portion	$ 356,983	$ 215,150
Less current portion	(91,347)	(13,230)
Long term portion	265,636	201,920
First Security Bank of Missoula
Long term portion	208,046	215,150
Caterpillar Financial Services
Long term portion	$ 148,937	$ 0

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DEBT (Details 1)	Jun. 30, 2022 USD ($)
DEBT
2023	$ 91,347
2024	82,573
2025	12,925
2026	13,219
2027	156,919
Total	$ 356,983

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Royalty expense	$ 85,870	$ 69,437	$ 147,900	$ 131,567
Accrued liabilities	1,270		1,270		$ 0
Accrued royalties payable	$ 409,887		$ 409,887		$ 346,242
Minimum [Member]
Royalties percentage			8.00%
Maximum [Member]
Royalties percentage			13.00%

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STOCKHOLDERS EQUITY (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Number of warrants, beginning	6,194,899	6,194,899
Issued	10,060,500	10,060,500
Exercised	(3,765,477)	(3,765,477)
Number of warrants, ending	12,489,922	6,194,899
Exercise prices, Balance outstanding, Beginning Balance	$ 0.65	$ 0.65
Exercise prices, Balance outstanding, Ending Balance	0.75	0.75
Minimum [Member]
Issued	0.46	0.46
Exercised	0.46	0.46
Maximum [Member]
Issued	0.85	0.85
Exercised	$ 0.65	$ 0.65

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STOCKHOLDERS EQUITY (Details 1)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Warrant 1
Shares	143,707
Exercise Price | $ / shares	$ 0.65
Remaining life	1 month 13 days
Expiration date	8/12/2022
Warrant 2
Shares	2,285,715
Exercise Price | $ / shares	$ 0.46
Remaining life	3 years 1 month 2 days
Expiration date	7/31/
Warrant 3
Shares	804,000
Exercise Price | $ / shares	$ 0.46
Remaining life	3 years 6 months 29 days
Expiration date	1/27/
Warrant 4
Shares	7,650,000
Exercise Price | $ / shares	$ 0.85
Remaining life	4 years 1 month 6 days
Expiration date	8/3/2026
Warrant 5
Shares	1,606,500
Exercise Price | $ / shares	$ 0.85
Remaining life	3 years 7 months 2 days
Expiration date	2/1/2026
Warrants
Shares	12,489,922

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STOCKHOLDERS EQUITY (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 03, 2021	Feb. 18, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Common stock Issued			3,765,477		3,765,477
Directors' fees payable			$ 46,875	$ 28,125	$ 75,000	$ 28,125
Accrued balance of stock payable			$ 187,500		187,500		$ 112,500
Gross proceeds from shares sold					1,790,703
February 2021 [Member]
Gross proceeds from shares sold	$ 10,710,000	$ 14,287,000
Common stock shares sold	15,300,000	10,990,000
Total cash issuance cost					$ 1,654,820
Shares sold price per share	$ 0.70	$ 1.30
Warrant 1
Warrants sold to purchase shares of common stock					1,606,500
Warrants, exercise price			$ 0.85		$ 0.85
Warrant 2
Warrants sold to purchase shares of common stock					804,000
Warrants, exercise price			$ 0.46		$ 0.46
Common Stock Warrants
Warrants sold to purchase shares of common stock	7,650,000
Warrants, exercise price	$ 0.85

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INVESTMENTS (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Cash and cash equivalent	$ 8,369,750	$ 8,369,750	$ 21,420,329	$ 22,421,882	$ 722,377
Investment account
Change in fair value of investments	93,458	93,458
Fair value of investment	13,431,774	13,431,774
Cost of investment	13,492,655	13,492,655
Cash and cash equivalent	$ 132,380	$ 132,380

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BUSINESS SEGEMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Capital expenditures	$ 371,654	$ 91,829	$ 544,599	$ 115,127
Precious Metals
Capital expenditures	9,138	18,921	17,518	37,347
Zeolite
Capital expenditures	299,865	68,036	435,239	68,036
United States Antimony
Capital expenditures	51,927	0	80,277	0
Mexico Antimony
Capital expenditures	10,724	4,872	11,565	9,744
Subtotal Antimony
Capital expenditures	$ 62,651	$ 4,872	$ 91,842	$ 9,744

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BUSINESS SEGEMENTS (Details 1) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Total assets	$ 35,756,017	$ 35,002,727
United States Precious Metals
Total assets	183,713	107,464
Zeolite
Total assets	2,904,763	2,210,546
United States Antimony
Total assets	24,552,558	24,130,348
Mexico Antimony
Total assets	7,446,054	7,771,515
Subtotal Antimony
Total assets	31,998,612	31,901,863
Mexico Precious Metals [Member]
Total assets	668,929	782,854
Subtotal Precious Metals [Member]
Total assets	$ 852,642	$ 890,318

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BUSINESS SEGEMENTS (Details 2) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues	$ 3,587,925		$ 2,275,562		$ 7,168,231	$ 3,528,849
Depreciation and amortization	231,057		219,944		451,207	442,408
Income (loss) from operations	366,935		(232,190)		1,146,515	(573,916)
Total other income (expense)	(5,712)		569,331		960	575,569
NET INCOME (LOSS)	361,223	$ 786,252	337,141	$ (335,488)	1,147,475	1,653
Precious Metals
Revenues	95,453		130,195		172,787	206,428
Depreciation and amortization	27,674		28,226		55,194	55,830
Income (loss) from operations	67,779		101,969		117,593	150,598
Total other income (expense)	0		0		0	0
NET INCOME (LOSS)	67,779		101,969		117,593	150,598
Zeolite
Revenues	1,020,391		716,428		1,694,433	1,236,375
Depreciation and amortization	48,546		38,826		93,250	80,843
Income (loss) from operations	154,124		141,562		176,415	208,444
Total other income (expense)	(1,737)		(816)		(2,375)	(1,213)
NET INCOME (LOSS)	152,387		140,746		174,040	207,231
United States Antimony
Revenues	1,644,259		1,428,939		4,473,189	2,086,046
Depreciation and amortization	11,101		7,893		20,570	15,784
Income (loss) from operations	120,636		99,642		1,512,148	(119,027)
Total other income (expense)	(3,975)		456,725		(3,335)	463,360
NET INCOME (LOSS)	116,661		556,367		1,515,483	344,333
Mexico Antimony
Revenues	827,822		0		827,822	0
Depreciation and amortization	143,736		144,999		282,193	289,951
Income (loss) from operations	24,396		(575,363)		(659,641)	(813,931)
Total other income (expense)	0		113,422		0	113,422
NET INCOME (LOSS)	24,396		(461,941)		(659,641)	(700,509)
Subtotal Antimony
Revenues	2,472,081		1,428,939		5,301,011	2,086,046
Depreciation and amortization	154,837		152,892		302,763	305,735
Income (loss) from operations	145,032		(475,721)		852,507	(932,958)
Total other income (expense)	(3,975)		570,147		(3,335)	576,782
NET INCOME (LOSS)	$ 141,057		$ 94,426		$ 855,842	$ (356,176)

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SUBSEQUENT EVENTS (Details Narrative) - Aug,8,2022 - SubsequentEvent	Aug. 08, 2022 USD ($)
Eight monthly installments	$ 11,600
Payment to Wadley	2,230,000
Seven annual payments	$ 1,160,000