67 WALL STREET, New York - April 14, 2014 - The Wall Street Transcript has just published its Metals & Mining Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Mining Safety and Environmental Concerns - Global Iron Ore Production - Emerging Market Infrastructure Construction - Chinese Demand for Industrial Metals - Zinc Supply Deficit - Demand Growth in Zinc - Accelerated Grid Spending in China - Copper Demand in China
Companies include: United States Antimony Corporation (UAMY) and many more.
In the following excerpt from the Metals & Mining Report, the Founder and CEO of United States Antimony Corporation (UAMY) discusses company strategy and the outlook for this vital industry:
TWST: You mentioned that at one point your stock price shot up to about $4 per share. Would you give us a closer look at what drove that price higher?
Mr. Lawrence: I think the spike in the stock was related to a huge surge in the price of antimony. The price before that had been relatively flat, and it surged from $7,000 per metric ton to $17,000. For the investor, it appeared to be a tremendous opportunity. Since that time, it has come down to about $9,800, and concurrently, the stock price deteriorated.
TWST: What drove up the price of antimony at that time? What was the catalyst?
Mr. Lawrence: There were several factors. The United States has always maintained a 40,000-ton strategic stockpile of antimony metal for purposes of war. The prices have always soared during wartime periods. The strategic stockpile was completely sold by 2002.
During 2002, the market was in the $2,000 to $2,500 per ton range, and with the disappearance of that stockpile, the price started to go up in 2004 and has been on a steady incline. In 2005, the average was $4,357; 2006, $6,225; 2007 was a slight decrease to $6,051; 2008, $6,746; 2009, $6,504; 2010, $13,228; 2011, $15,930; and then it started to relax by 2012 to $13,977; and then later 2013, $11,492. It has dropped now to the $9,877 to $10,000 range.
Why did it shoot up? The word was that the major Chinese raw material supply in Hunan Province would be depleted within five years. Originally, the Chinese did not import any ore, but now they are importing 40% of their raw materials. This was the main factor for the sharp market increase. Then as a result of the relatively flat world economy, the market has gradually come down after peaking in 2011.
TWST: So your stock is currently trading at about $1.85 per share. What's your view of its current valuation - fairly valued, undervalued? How do you feel about it?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Basic Materials Industry