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UAMY > SEC Filings for UAMY > Form 10-Q on 8-May-2014All Recent SEC Filings

Show all filings for UNITED STATES ANTIMONY CORP

Form 10-Q for UNITED STATES ANTIMONY CORP


8-May-2014

Quarterly Report


ITEM 2. Management's Discussion and Analysis of Results of Operations and Financial Condition

General

This report contains both historical and prospective statements concerning the Company and its operations. Prospective statements (known as "forward-looking statements") may or may not prove true with the passage of time because of future risks and uncertainties. The Company cannot predict what factors might cause actual results to differ materially from those indicated by prospective statements.

      Table of Precious Metals Sales

  Precious Metals Sales                                                      Quarter 1
       Silver/Gold              2011            2012            2013            2014
Ounces Gold Shipped (Au)         161.711         102.319          61.517         21.275
Ounces Silver Shipped (Ag)     17,472.99       20,237.70       23,095.70       9,514.00
 Total Revenues              $   667,813     $   647,554     $   369,706     $  156,101



                                              MONTANA          MONTANA           MEXICO
                                           SOURCE SILVER     SOURCE GOLD         SOURCE         MEXICO SOURCE
        Precious Metals by Year                 OZ                OZ           SILVER OZ           GOLD OZ

2008                                            8,640.70            37.67
2009                                            6,870.10            31.80
2010                                           31,545.22           101.13
2011                                           17,472.99           161.71
2012                                           20,237.70           102.32
2013                                           22,042.46            59.74         1,053.24                1.78

2014 1st Qtr 8,209.02 16.42 1,304.80 4.86


PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. Management's Discussion and Analysis of Results of Operations and
FinancialCondition, continued:

Results of Operations by Division:

For the three month periods ended March 31, 2014 and 2013

                                               1st Qtr          1st Qtr
Antimony - Combined USAand Mexico                2014             2013
Lbs of Antimony Metal USA                         289,291          260,421
Lbs of Antimony Metal Mexico:                     151,927          147,931
  Total Lbs of Antimony Metal Sold                441,218          408,352
Sales Price/Lb Metal                         $       4.85     $       5.65
Net income (loss)/Lb Metal                   $      (1.06 )   $      (1.17 )

Gross antimony revenue - net of discount        2,137,764        2,305,230
Precious metals revenue                           156,101          111,994
Production costs - USA                         (1,427,417 )     (1,373,787 )
Product cost - Mexico                            (667,706 )       (667,169 )
Direct sales and freight                          (62,535 )        (72,146 )
General and administrative - operating           (102,405 )       (115,257 )
Mexico non-production costs                       (77,468 )       (200,750 )
General and administrative - non-operating       (297,459 )       (335,828 )
Net interest and gain on sale of asset              7,034              621
  EBITDA                                         (334,091 )       (347,092 )
Depreciation & amortization, net                 (132,571 )       (130,177 )
Net income (loss) - antimony                 $   (466,662 )   $   (477,269 )

Zeolite
Tons sold                                           3,350            2,533
Sales Price/Ton                              $     196.55     $     216.96
Net income (Loss)/Ton                        $      32.39     $      27.02

Gross zeolite revenue                             658,449          549,551
Production costs                                 (372,181 )       (310,048 )
Direct sales and freight                          (38,171 )        (46,258 )
Royalties                                         (69,498 )        (59,567 )
General and administrative                        (16,266 )        (12,491 )
Net interest                                        1,061            1,007
  EBITDA                                          163,394          122,194
Depreciation                                      (54,902 )        (53,750 )
Net income (loss) - zeolite                  $    108,492     $     68,444

Company-wide
Gross revenue                                $  2,952,314     $  2,966,775
Production costs                               (2,467,304 )     (2,351,004 )
Other operating costs                            (350,077 )       (493,978 )
General and administrative - non-operating       (313,725 )       (348,319 )
Net interest and gain on sale of asset              8,095            1,628
  EBITDA                                         (170,697 )       (224,898 )
Income tax benefit (expense)
Depreciation & amortization                      (187,473 )       (183,927 )
  Net income (loss)                          $   (358,170 )   $   (408,825 )


PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. Management's Discussion and Analysis of Results of Operations and
FinancialCondition, continued:

For the first quarter of 2014, we incurred a loss of $358,170 compared to a loss of $408,825 during the same quarter of 2013. The loss in 2014 was primarily due to the decline in the price of antimony metal from $5.65 during quarter 1 of 2013 to $4.85 in 2014, a decrease of $.80 per lb (15%). The $358,170 loss in the first quarter of 2014 was after non-cash expenses of $185,462 for depreciation and amortization. Our precious metals revenue in the first quarter of 2014 was equivalent to $.35 per pound of antimony sold. The amount of metal produced in Mexico was approximately 152,000 lbs for the first quarter of 2014 compared to approximately 148,000 pounds produced for the first quarter of 2013, an increase of 2.7%. The production from Mexico would have been greater except for additional permits needed to operate new equipment and to use explosives at the Soyatal, and Gaudalupe mining properties. The operator of the Guadalupe property received an explosives permit subsequent to September 30, 2013, and expects to significantly increase their output of feed to our mill at Puerto Blanco during 2014. Overall, the pounds of antimony produced and sold was up approximately 33,000 lbs ($186,000), or 8%, from the same quarter in the prior year, but the sales price per pound was down approximately $.80 ($366,000), or 15%, from the prior year quarter. Antimony oxide prices have now fallen from a high of $8.11 per lb in 2011, to $4.29 per lb at March 31, 2014. The cost of production in the USA was up by approximately $54,000 from the same quarter in the prior year, primarily due to the increase in the price of propane fuel for our furnaces. The non-production costs in Mexico of $77,468 for the three months ended March 31, 2014, were down from $200,750 the same period a year ago, a decrease of 61%. The decrease was a result of better performance at our Mexican mining operations. Our operating expenses in Mexico included depreciation and amortization charges of $116,406. We now have approximately two months of smelter feed stockpiled and paid for, and we are increasing our furnace capacity at our Madero smelter to catch up with our increased raw material production. The increase in production in Mexico was made despite continuing permit restrictions at the mining properties and the installation and testing of new Los Juarez precious metals smelting equipment. Our efforts in Mexico are resulting in increased product that will be shipped to our Montana plant. In addition, we expect to have increased revenue from precious metals from our Mexico division.

We contracted in July, 2012, to install a natural gas pipeline for our Mexico smelter operation that we now expect to cost $1.8MM in total. Our fuel costs are our largest expense in Mexico, and we are expecting the switch from propane to natural gas to decrease our Mexico fuel costs by 75% when the pipeline is complete. The pipeline is substantially completed, and hookup by PEMEX should be finalized by June 1, 2014.

Zeolite sales for the quarter ending March 31, 2014, increased by approximately $109,000 compared to the same period in 2013. The first quarter of 2014 realized a net profit of approximately $108,000 compared to a net profit of approximately $68,000 for the first quarter of 2013, an increase of 58.8%. The sales price decreased by approximately $20 per ton from the same period of the prior year. There was an increase in the tons of zeolite sold of approximately 800 tons for the quarter ended March 31, 2014, over the comparable period for 2013, an increase of 32%. We have installed new equipment at BRZ to produce a water filtration product that could represent a major market.

Our general and administrative costs were lower for the three months ended March 31, 2014, than the same period for prior year, but management is still seeking ways to bring these costs down.


PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. Management's Discussion and Analysis of Results of Operations and
FinancialCondition, continued:

Financial Condition and Liquidity
                                               March 31,       December 31,
                                                  2014             2013
Current Assets                                $  1,887,664     $   1,910,564
Current liabilities                             (3,039,513 )      (2,479,341 )
  Net Working Capital                         $ (1,151,849 )   $    (568,777 )

Cash provided (used) by operations            $     38,629     $     234,820
Cash used for capital outlay and investment       (296,147 )      (2,733,762 )
Cash provided (used) by financing:
  Proceeds from notes payable to bank               15,983           138,520
  Principal paid on long-term debt                 (31,136 )        (273,405 )
  Proceeds from long-term debt                      50,000           352,000
  Sale of Stock                                    170,000         1,147,194
  Other                                             37,179           154,165
   Net change in cash                         $    (15,492 )   $    (980,468 )

Our net working capital decreased by approximately $583,000 from December 31, 2013. Our cash decreased by approximately $15,000 during the same period. The decrease in our net working capital was primarily due to approximately $316,000 of capital expenditures, a $170,000 EBITDA loss, a decrease in accounts receivable of approximately $297,000 and $31,000 paid on long-term debt. Approximately $170,000 cash from the sale of stock, $354,000 from a decrease in inventory, $69,000 borrowing, and the net increase of approximately $460,000 in current liabilities provided cash. We have estimated commitments for construction and improvements, including $150M for the natural gas pipeline, of approximately $350M over the next twelve months. We believe that with our current cash balance, along with the future cash flow from operations, we have adequate liquid assets to meet these commitments and service our debt for the next twelve months. We have lines of credit of $202,000 which have been drawn down by $154,503 at March 31, 2014.

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