UAMY Q3 2025: $352M in Multi-Year Contracts Catalyze Vertically Integrated Critical Minerals Expansion
U.S. Antimony (UAMY) delivered a transformative quarter, locking in $352 million in long-term sales contracts and accelerating its shift to a vertically integrated critical minerals supplier. Management’s operational push—from mine development in North America to step-change inventory builds and smelter expansion—positions UAMY as the only domestic source of antimony and a contender in tungsten and cobalt. With production ramping, new supply streams secured, and capacity set to multiply in 2026, the company is moving from strategic narrative to tangible execution, reshaping its industry role and risk profile.
Summary
- Contract Wins Redefine Scale: Recent DLA and commercial contracts vault sales visibility far beyond historical levels.
- Supply Chain Control Deepens: Vertical integration and global sourcing reduce reliance on volatile third-party ore.
- Production Ramp in Focus: 2026 targets signal a step-change in output and margin structure.
Performance Analysis
Revenue soared 182% year-over-year for the first nine months, driven by price increases and volume gains in zeolite and antimony, with Q3 sales at $8.7 million and October alone reaching $5.6 million. Gross margin improved to 28% from 24%, though management flagged near-term pressure from falling antimony prices, expecting to offset some of this with cost controls and higher-margin, long-term contracts.
Operating cash flow turned positive (excluding working capital swings), and the company’s balance sheet is notably fortified: $38.5 million in cash, minimal long-term debt, and a quadrupled market cap since the start of the year. Inventory value tripled, reflecting aggressive build-up to meet new contract obligations. Net loss of $4.1 million was entirely non-cash driven, with management emphasizing alignment via equity-based compensation and capital preservation.
- Sales Mix Shift: Zeolite and antimony led growth, with antimony volume set to accelerate as new mining and procurement streams come online.
- Margin Expansion Path: Vertically sourced ore and long-term contracts are expected to drive gross margin beyond 60% as internal supply scales.
- Balance Sheet Strength: Warrant exercises and stock sales injected $43 million, supporting capex and inventory buildup for 2026 ramp.
Institutional investor engagement and index inclusion have improved liquidity and market visibility, supporting capital market access for future growth initiatives.
Executive Commentary
"As announced over the last 45 days, actually the last 90 days, your company has completed two significant sales contracts that total $352 million. To put that in perspective, this company reported $15 million of revenues last year. So that's one heck of a big boost."
Gary C. Evans, Chief Executive Officer
"Our gross margin increased by four percentage points from 24% last year to 28% this year. There'll be some pressure on our gross margins in the fourth quarter with a declining antimony market price. We're looking to offset as much of this decline as we can with lower costs and higher margin long-term contracts."
Rick Isaac, Chief Financial Officer
Strategic Positioning
1. Multi-Year Contract Wins Anchor Revenue Visibility
UAMY secured a $245 million Defense Logistics Agency (DLA) contract for antimony metal and a $107 million commercial contract for antimony trioxide, together dwarfing historical sales and establishing multi-year revenue floors. These contracts, with terms up to five years, de-risk topline and validate the company’s role as a critical supplier to both government and industry.
2. Vertical Integration and Domestic Production
UAMY’s transformation into a vertically integrated miner, processor, and seller of antimony is central to its margin and supply chain strategy. The company is now the only North American operator of military-spec antimony trisulfide production, with new mining operations in Montana (Stibnite Hill), Alaska, and Ontario. Internal ore supply is targeted to eventually replace all third-party purchases, with the Montana mine already producing and Alaska expected to ramp post-winter thaw.
3. Global Supply Diversification and Inventory Build
Over 15 supply contracts across 10 countries have been executed, with material inbound from Bolivia, Chad, Mexico, and others. This global sourcing effort, including a dedicated African Critical Mineral Director, aims to secure both feedstock quality and volume, reducing reliance on any single geography or supplier. Inventory has tripled to $9 million in value, positioning UAMY to fulfill its contractual obligations and buffer against supply disruptions.
4. Processing Capacity Expansion and Operational Leverage
Smelter expansions in Thompson Falls (Montana, 65% complete) and Madero (Mexico) underpin a production ramp from 100 tons/month to a targeted 500–600 tons/month by end-2026. New automation, modernized equipment, and improved feedstock quality are expected to unlock further efficiency gains and gross margin leverage, with Montana nearing capacity and Mexico flagged as the logical site for further expansion due to infrastructure advantages.
5. Critical Minerals Diversification (Tungsten, Cobalt)
UAMY is leveraging its antimony playbook to enter tungsten and cobalt, both of which have no current domestic production in the U.S. or Canada. Resource definition, permitting, and early-stage development are underway in Ontario, with federal funding and new sales contracts anticipated post-resource reporting. Management aims to replicate its antimony contract model to secure similar sales agreements for these additional critical minerals.
Key Considerations
This quarter marks a strategic inflection, as UAMY transitions from a niche supplier to a critical minerals platform with multi-year visibility and operational leverage. The following factors will determine the durability and scalability of this transformation:
Key Considerations:
- Contract Execution Risk: Delivering on DLA and commercial contracts requires sustained production ramp and logistics management, especially as internal ore supply phases in.
- Margin Sensitivity to Ore Mix: Margin expansion is contingent on replacing third-party ore with internally sourced, higher-grade material—weather and permitting delays could slow this shift.
- Capital Allocation and Capex Discipline: With $23 million in capex planned for smelter expansion, prudent deployment and timely project completion are essential to avoid bottlenecks and cost overruns.
- China Supply Chain Dynamics: Ongoing Chinese export controls underscore the strategic value of UAMY’s domestic supply, but also heighten geopolitical and price volatility risk.
- Critical Minerals Diversification: Success in tungsten and cobalt will depend on resource validation, permitting, and replicating the sales contract model amid uncertain timelines.
Risks
Execution risk remains high as UAMY scales operations, with weather, permitting, and feedstock quality all cited as potential bottlenecks. Antimony price volatility and reliance on timely ramp of internal ore supply could pressure margins if not carefully managed. Capex overruns or delays in smelter expansion would directly impact the ability to fulfill large contract volumes. China’s dominance in global antimony refining continues to pose systemic risk to supply chains and pricing, despite UAMY’s domestic positioning.
Forward Outlook
For Q4 2025, UAMY expects:
- Gross margin pressure from declining spot antimony prices, partially offset by cost controls and higher-margin contracts.
- Continued inventory build and production ramp, with Montana smelter expansion completion targeted for January 2026.
For full-year 2026, management maintained revenue guidance of $125 million, explicitly excluding upside from the new trioxide contract. Additional government support and contract opportunities are in the pipeline. Production ramp to 500-plus tons/month by end-2026 is the operational focus, with Alaska and new international supply streams critical to hitting targets.
Takeaways
UAMY’s transformation is now anchored by multi-year contracts, vertical integration, and a strengthened balance sheet, but the next phase will test its ability to deliver at scale.
- Contracted Revenue Base: The $352 million in new contracts fundamentally change the company’s revenue and risk profile, but require flawless execution on both supply and processing fronts.
- Margin Leverage Hinges on Internal Ore: Achieving 60%+ gross margins is tied to successful ramp of Montana and Alaska mining, with weather and permitting as swing factors.
- Expansion Execution Is Key: Investors should watch for on-time completion of smelter projects, steady inventory builds, and the pace of new supply contract conversions, especially as UAMY moves into tungsten and cobalt.
Conclusion
UAMY’s Q3 2025 marked a step-change in scale and strategic positioning, with contract wins and vertical integration setting the stage for a critical minerals growth story. The company’s ability to deliver on its ambitious production ramp and margin goals will be the defining test in 2026 and beyond.
Industry Read-Through
UAMY’s vertical integration and multi-year contract wins signal a new era for North American critical minerals supply chains, especially as Chinese export controls tighten global markets. Domestic sourcing, long-term sales agreements, and government-backed demand are now actionable levers for other mineral producers seeking to reduce geopolitical risk and secure premium pricing. The company’s expansion into tungsten and cobalt also highlights a broader trend: multi-mineral platforms will be increasingly favored as national security and industrial policy drive resource allocation and capital flows. Investors and operators across mining, specialty chemicals, and defense supply chains should monitor how UAMY’s operational execution and contract model reshape competitive dynamics and market expectations.