U.S. Antimony (UAMY) Announces Plan to Discontinue Latin America Operational Activities
THOMPSON FALLS, MT / ACCESSWIRE / March 11, 2024 / United States Antimony Corporation ("USAC" or "U.S. Antimony" or the "Company"), (NYSE:UAMY) announces plan to discontinue all Latin America operational activities and dispose of its US Antimony de Mexico, S.A. de C.V. ("USAMSA") subsidiary, effective immediately.
This primarily includes the Company's Madero smelter facility in Parras de la Fuente Coahuila and its Puerto Blanco mining facility in San Luis de la Paz Guanajuato. This decision was made after a detailed, in-depth review into the historical financial performance of these assets and due to USAMSA's negative cash flow cumulatively since inception, which goes back many years, as well as the lack of any potential to generate positive cash flow in the foreseeable future. The Company also believes that the cash flow of its remaining antimony business located in Thompson Falls, Montana will be significantly improved after the closure and disposal of its USAMSA subsidiary. Therefore, the Company will shut down the operations of USAMSA on March 11, 2024, and terminate a majority of USAMSA employees. The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets. At this time, the Company is unable to estimate the total amount or range of amounts to be incurred in connection with these actions or the total amount or range of amounts of the charge that will ultimately result in future cash expenditures.
USAC will continue to hold its existing Los Juarez mining claims and concessions in Cadereyta de Montes Queretaro, which are included in its Antimonio De Mexico, S.A. De C.V. ("ADM") subsidiary. There are presently no active operations at Los Juarez, but the company believes there is significant exploration potential.
Commenting on the closure of operations in Latin America, Mr. Gary C. Evans, Chairman and Co-CEO of U.S. Antimony stated, "Based upon a thorough review of historical financial numbers of our Mexican operations, which was only possible after retention of a new CFO mid-year 2023, it became painfully obvious that these operations have always been unprofitable. One cannot incur costs to mine and process raw material above the cost of selling the actual product. This is simple math and economics 101. Then, when you combine this fact with operating in a foreign country, new stringent Mexican mining laws and regulations, cartels disrupting operations and raising safety concerns, our inability to collect monies due to us from the Mexican government regarding taxes (in excess of one million U.S. Dollars) and locations of our mines and processing facilities being spread out across the country, both the economic and operational challenges were simply too great. However, by no means are we abandoning antimony as a principal product of our Company. Antimony continues to be a "Critical Mineral" on the U.S. Government's Defense and Energy lists of needs. Our existing operation in Thompson Falls is profitable and continues to operate efficiently. The raw source material for this operation presently comes from Canada. Your board and management team are sourcing new antimony deposits both in Alaska and Canada. Additionally, we are working with various departments of the U.S. Government on possible grants and loans to assist us in this endeavor. As the only operating antimony processing facility in the United States, including Alaska, we have been receiving significant attention of late from Washington D.C. with our recent marketing efforts."
About USAC:
United States Antimony Corporation and its subsidiaries in the U.S. and Mexico ("USAC" or "U.S. Antimony" or the "Company", "we", "us", and "our") sell processed antimony, precious metals, and zeolite products in the U.S. and abroad. The Company processes antimony ore primarily into antimony oxide, antimony metal, and antimony trisulfide. Our antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Our antimony metal is used in bearings, storage batteries, and ordnance. Our antimony trisulfide is used as a primer in ammunition. In its operations in Idaho, the Company mines and processes zeolite, a group of industrial minerals used in soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications.
Forward-Looking Statements:
Readers should note that, in addition to the historical information contained herein, this press release may contain forward-looking statements within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon current expectations and beliefs concerning future developments and their potential effects on the Company including matters related to the Company's operations, pending contracts and future revenues, financial performance, and profitability, ability to execute on its increased production and installation schedules for planned capital expenditures, and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-K and Form 10-Q with the Securities and Exchange Commission.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "pro forma" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance.
Contact:
United States Antimony Corporation
PO Box 643
47 Cox Gulch Rd.
Thompson Falls, Montana 59873-0643
406-606-4117
E-Mail: info@usantimony.com
SOURCE: United States Antimony Corp.
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