0001104659-25-110313
SEC filingRevenue surged on higher antimony prices and DLA contract, but net loss widened due to operating expenses.
For the three months ended September 30, 2025, total revenue increased 238% to $8.7 million compared to $2.6 million in the prior year period. Gross profit rose 375% to $2.0 million from $0.4 million, reflecting gross margin expansion from 16.5% to 23.1%. Operating loss widened to $(4.9 million) from $(0.9 million), driven by a $5.2 million increase in total operating expenses, which included $4.7 million of non-cash share-based compensation. Net loss was $(4.8 million) compared to $(0.7 million) in the prior year period. The primary driver of revenue growth was the antimony segment, where average sales price per pound surged 382% to $28.72, while sales volume increased 12%. The sharp rise in antimony prices was attributed to continued heightened demand.
Antimony Segment: Revenue for the three months ended September 30, 2025 increased 439% to $8.0 million from $1.5 million. Gross profit rose 679% to $2.2 million. Pounds sold increased 12% to 279,607, while average sales price per pound rose 382% to $28.72. Average cost per pound also increased 332% to $20.89, primarily due to an increasing percentage of market prices charged by suppliers. Gold and silver sales were nil for the period, compared to $0.4 million in the prior year. For the nine-month period, antimony revenue increased 256% to $23.6 million, with average price up 311% to $24.01 per pound, partially offset by a 13% decline in volume due to a workforce shortage that has since been resolved.
Zeolite Segment: Revenue for the three months ended September 30, 2025 declined 2% to $0.7 million. Gross loss improved 88% to $(25,813) from $(208,392) in the prior year, benefiting from lower maintenance costs. Tons sold decreased 4% to 2,491, while average price per ton increased 3% to $270. For the nine-month period, zeolite revenue increased 16% to $2.7 million, driven by higher sales volume (up 9% to 9,377 tons) and improved customer relationships.
Management highlighted the August 2025 five-year, sole-source IDIQ contract with the DLA for antimony metal ingots with a maximum value of $245 million. The first delivery order for 315,000 pounds valued at approximately $10 million was received but no revenue recognized as of September 30, 2025. The Company reported working capital of $25.5 million as of September 30, 2025, up from $16.7 million at year-end 2024. Subsequent to quarter end, the Company received approximately $66 million of additional net proceeds from offerings. The Company secured a $10 million LOC facility (increased from $5 million) and had no borrowings outstanding. Capital expenditures included $9 million for smelting expansion in Thompson Falls, Montana and $5 million for the purchase of the Fostung Properties. Management believes current cash and cash equivalents of $18.3 million, along with expected cash flow from operations, are sufficient to fund requirements for the next twelve months. The Company is also pursuing acquisition of a precious metals mill and a housing development to support workforce needs.
For the nine months ended September 30, 2025, the company reported a net loss of $(4,052,621), while cash used in operations was $(6,220,686). The divergence is primarily due to large working capital outflows: inventories increased by $7,167,437, accounts receivable by $804,211, and prepaid expenses by $1,726,295. These were partially offset by non-cash charges including share-based compensation of $4,688,772 and depreciation of $839,353.
Capital expenditures surged to $16,069,244 (versus $223,058 in the prior period), reflecting heavy investment in property, plant and equipment. The company also purchased $19,934,953 in investment securities held to maturity, driving investing cash flow to $(35,995,481).
Financing activities provided $42,415,350, largely from issuance of common stock ($38,440,596) and exercise of warrants ($4,427,756), along with $55,000 from stock option exercises. The company also repurchased $409,246 of treasury stock.
Overall, the company's cash position increased by $199,183 to $18,470,081. The negative operating cash flow and heavy capex indicate a period of significant investment and working capital build, funded by equity and warrant exercises.