UAMY: Long-Term Supply Deal And Index Inclusion Will Drive Bullish Repricing

Analysts have modestly raised their price target on United States Antimony, citing slightly higher discount rate and forward P/E assumptions that collectively support a fair value estimate of approximately 9.67 dollars per share.

What's in the News

• United States Antimony signed a five year antimony trioxide supply agreement with a major U.S. industrial fabric manufacturer, with potential extensions to ten years and contract value up to 106.7 million dollars, supporting domestic flame retardant and critical mineral supply chains (company announcement).
• The company entered a securities purchase agreement with a leading long only mutual fund for approximately 25 million dollars in proceeds, earmarked for critical mineral inventory, leasehold expansion in Alaska and Montana, potential capacity increases at the Madero Smelter, targeted acquisitions and working capital (company announcement).
• United States Antimony filed follow on equity offerings totaling over 51 million dollars in registered direct offerings of common stock, supporting its growth and investment plans (regulatory filings).
• Shares of United States Antimony were added to the S&P Global BMI Index and the S&P/TSX Global Mining Index, potentially broadening the investor base and index driven demand for the stock (index provider notices).
• Geopolitical uncertainty persists in the broader rare earths and critical minerals space as discrepancies emerge between U.S. and Chinese statements on pausing rare earth export restrictions. This underscores the strategic value of secure North American supply sources such as United States Antimony (Nikkei).

Valuation Changes

• The fair value estimate has been maintained at approximately 9.67 dollars per share, indicating no change in the intrinsic value assessment.
• The discount rate has risen slightly from about 8.01 percent to approximately 8.07 percent, reflecting a modest increase in the required return assumption.
• Revenue growth has been effectively maintained at around 105.66 percent, with only a negligible numerical adjustment.
• The net profit margin remains broadly unchanged at roughly 25.03 percent, indicating stable long term profitability assumptions.
• The future P/E has increased slightly from about 30.02 times to approximately 30.08 times, suggesting a marginally higher valuation multiple on forward earnings.