Expanding Domestic Antimony Processing Will Secure Resilient Supply From Montana To Ontario

Key Takeaways

• Expanded processing capacity, new ore sources, and government engagement position the company for sustained growth, supply security, and potential long-term premium contracts.
  
• Vertical integration, resource diversification, and institutional engagement could boost revenue potential, valuation, and support strong end-market demand amid secular industry tailwinds.
  
• Regulatory delays, supply chain risks, and uncertain demand combine with heavy upfront costs to threaten future production, revenue growth, and earnings stability for US Antimony.

Catalysts

Produces and sells antimony, zeolite, and precious metals in the United States and Canada.

• US Antimony is expanding its domestic processing capacity (e.g., sixfold increase at Thompson Falls facility expected by year-end) and increasing ore supply both from its own Montana/Alaska projects and multiple new international sources, which should drive higher production volumes and sustained revenue growth through increased throughput and supply security.
  
• The company is in late-stage discussions with U.S. government agencies (including DoD and DLA) regarding critical mineral offtake and funding; any resulting contracts or incentives would provide long-term, recurring, premium-priced revenue and earnings, leveraging the strategic value of being the only domestic antimony processor as U.S. policy shifts toward supply chain security and China de-risking.
  
• Recent demonstrable pricing power (average sales price for antimony more than tripled YoY) and robust end-market demand (flame retardants, batteries, critical infrastructure) point to structural tailwinds driven by electrification, grid modernization, and ongoing regulatory requirements, likely supporting margins and revenue sustainability as these secular trends accelerate.
  
• Ongoing property acquisitions and vertical integration (new mining leases in Alaska, Montana, and Ontario for antimony, gold, and tungsten) provide optionality and resource security; successful development and permitted production from these assets would further increase revenue potential, diversify supply risk, and bolster long-term earnings growth.
  
• The company's proactive institutional engagement and public awareness (recent NYSE Texas dual listing, growing institutional ownership, expanded marketing) are likely to improve capital access and transaction liquidity, supporting higher valuation multiples if operational execution delivers continued stepwise improvements in quarterly revenues, net margins, and earnings.

United States Antimony Future Earnings and Revenue Growth

Assumptions

• Analysts are assuming United States Antimony's revenue will grow by 100.7% annually over the next 3 years.
• Analysts assume that profit margins will increase from -3.5% today to 39.6% in 3 years time.
• Analysts expect earnings to reach $82.5 million (and earnings per share of $0.68) by about September 2028, up from $-889.8 thousand today.
• In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 11.6x on those 2028 earnings, up from -623.5x today. This future PE is lower than the current PE for the US Metals and Mining industry at 22.7x.
• Analysts expect the number of shares outstanding to grow by 7.0% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 7.28%, as per the Simply Wall St company report.

United States Antimony Future Earnings Per Share Growth

Risks

• The company is experiencing significant permitting delays at its Alaska and Ontario projects due to regulatory processes, public objections, and required multi-season environmental surveys, which could lead to project launch postponements or cancellations, impacting the ability to expand production and thus future revenue growth.
  
• Increasing regulatory scrutiny and strong opposition from environmental groups at both state and local levels threaten not only US Antimony's ability to initiate new mining operations but may also lead to additional compliance costs or even operational curtailments, squeezing net margins and increasing operating expenses in the long-run.
  
• US Antimony remains heavily reliant on its own mining assets and a limited number of external suppliers; ongoing issues with ore quality (e.g., elevated arsenic content from Mandalay shipments) and lack of alternative large-scale domestic suppliers create supply chain vulnerabilities that could disrupt production, resulting in material swings in earnings and cash flows.
  
• The company's ambitious capacity expansion and asset acquisition strategy requires substantial upfront investment in property, equipment, and staff, while positive outcomes (e.g., new government contracts or successful new production) remain uncertain; failure to secure anticipated government funding or offtake agreements could lead to underutilized assets and pressure on return on investment, impairing long-term net earnings.
  
• Industry trends toward increased recycling, substitution of antimony in key end-use markets (such as batteries and flame retardants), and price volatility in specialty metals could undermine long-term demand and pricing power for primary producers like US Antimony, resulting in unpredictable future revenues and reduced earnings stability.

Valuation

• The analysts have a consensus price target of $4.917 for United States Antimony based on their expectations of its future earnings growth, profit margins and other risk factors.
• In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $208.1 million, earnings will come to $82.5 million, and it would be trading on a PE ratio of 11.6x, assuming you use a discount rate of 7.3%.
• Given the current share price of $4.31, the analyst price target of $4.92 is 12.3% higher.
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.