United States Antimony Corporation (UAMY) saw its shares decline approximately 4% in late trading Thursday after reporting a first-quarter net loss of $11.3 million, or $0.08 per diluted share. The Dallas-based miner and processor of antimony, a critical mineral used in defense applications, generated revenue of $6.8 million for the three months ended March 31, down from $7.0 million in the same period last year.
The first-quarter results marked a sharp reversal from the prior year's net income of $546,524. Gross profit fell to $1.1 million from $2.4 million, and gross margin contracted to 16% from 34%, driven by higher costs associated with processing more expensive ore. The company attributed the weaker performance to rising operational expenses and stock-based compensation, characterizing the period as a deliberate investment phase.
Defense Contract Progress and Revenue Timing
Despite the disappointing financial results, UAMY made significant strides on its key defense contract. The company completed initial deliveries under its five-year, sole-source contract with the Defense Logistics Agency (DLA), valued at up to $245 million. However, revenue from the contract was not recognized in the first quarter, as shipments are expected to be recorded later in the year.
UAMY also reported achieving $12.8 million in milestones under its Department of War grant for the Thompson Falls, Montana expansion. The company clarified that the grant funds were used to reduce the construction in progress balance rather than being recognized as revenue or profit.
Strategic Partnerships and Expansion
In a move to bolster domestic processing capabilities, UAMY announced a joint venture with Americas Gold and Silver to build a hydrometallurgical processing plant. Under the agreement, Americas will hold a 51% stake, while UAMY will own 49% and serve as the managing partner. The facility will use water-based chemistry to extract metals from ore or concentrates.
The company ended the quarter with $23.7 million in cash and held-to-maturity U.S. Treasury securities. Subsequent to March 31, UAMY raised approximately $48.6 million in gross proceeds from share sales, providing additional financial flexibility for its expansion plans.
Market Context and Outlook
Antimony is a critical mineral for defense applications, including flame retardants, batteries, ordnance, and ammunition primers. The U.S. government has been actively working to reduce dependence on foreign suppliers, particularly China, which recently imposed export license requirements for antimony shipments. In March, the Department of War allocated $27 million from Defense Production Act funds to support domestic antimony mining and processing.
UAMY's management reiterated its full-year gross revenue target of $125 million, though execution remains contingent on several factors, including the timing of government shipments, the completion of the Thompson Falls expansion, progress at its Montana and Mexico processing facilities, and sustained demand for critical minerals. The company expects most of its 2026 revenue to be realized in the second half of the year, leaving little room for delays in project milestones or permitting.
Shares of UAMY last traded at $9.57, with volume exceeding 10.7 million shares. The stock has been volatile as investors weigh the potential of the DLA contract against near-term earnings headwinds.