0001654954-25-009449
SEC filingAntimony price surge drove 160% revenue growth but margin compressed; zeolite returned to profitability; net income turned positive to $728K.
For the six months ended June 30, 2025, consolidated revenue increased 160% to $17.5 million from $6.7 million in the prior year period, driven by a dramatic rise in antimony prices. Gross profit grew 183% to $5.2 million, with gross margin improving to 29.7% from 27.3%, primarily due to the zeolite segment returning to profitability. Operating income swung to a positive $378,000 from a loss of $414,000, reflecting revenue growth and cost control. Net income was $728,000 compared to a net loss of $120,000 in H1 2024. The improvement was partly offset by higher operating expenses, which increased to $4.8 million from $2.3 million, largely due to selling and administrative costs supporting expanded operations.
Antimony: Revenue surged 203% to $15.6 million, driven by a 282% increase in average selling price to $22.14 per pound, despite a 21% decline in sales volume to 702,952 pounds. Gross profit rose 147% to $5.3 million, but gross margin contracted to 34.1% from 41.8% as average cost per pound increased 333% to $14.59 due to higher ore purchase prices. The segment benefited from strong demand and favorable ore costs from earlier purchases, but the margin compression signals rising input costs.
Zeolite: Revenue grew 24% to $2.0 million on 15% higher volume and 8% higher average price. Gross profit turned positive to $302,000 from a loss of $242,000, reflecting cost improvements and lower maintenance expenses. The segment's turnaround was aided by better operational efficiency and customer relationships.
Management expects to fund cash requirements over the next 12 months from existing cash ($5.7 million), operating cash flows, and capital raised through stock offerings or debt. The company secured a $5 million line of credit in April 2025, collateralized by U.S. Treasury Strips, with no borrowings outstanding. Strategic priorities include organic growth, potential acquisitions (e.g., additional property in Alaska), and improving cash flow by managing inventory. No specific quantitative guidance was provided, but the focus remains on profitability and shareholder value.
As of June 30, 2025, the company held $5.7M in cash and cash equivalents, down from $18.2M at December 31, 2024, primarily due to $9.99M invested in U.S. Treasury Strips (held-to-maturity) and $7.4M in capital expenditures. Total investment securities held to maturity were $10.1M (current $1.3M, noncurrent $8.8M). Total debt was minimal at $0.26M (Komatsu installment contract). Shareholders' equity increased to $37.5M from $28.6M, driven by equity issuances ($5.1M from at-the-market offering, $2.2M from warrant exercises) and net income of $0.7M. The company secured a $5M line of credit in April 2025, collateralized by the investment securities, with no outstanding borrowings.
The company has significant purchase commitments for mining claims in Alaska: $3M for 120 claims (January Fairbanks Agreement), $425,000 for 25 claims (March Fairbanks Agreement), and $2M for patented claims (June Fairbanks Agreement). Total remaining payments are $5.425M, with $0.325M due within one year, $1.1M in 1-3 years, and $4M beyond 3 years. Additionally, exploration and development commitments on these claims total $3.2M ($2.25M, $0.25M, and $0.7M respectively). The company also has a $17M estimated capital expenditure for smelter expansion in Thompson Falls, Montana, with $4.5M formally contracted. The BRZ zeolite lease was extended through December 2034.
No share buybacks were reported. Preferred dividends of $3,750 were paid in H1 2025. Debt repayment was $65,550. Capital expenditures totaled $7.4M for H1 2025, primarily for the smelter expansion ($5.9M in 'All Other' segment) and antimony segment ($1.4M). The company raised $5.1M net from at-the-market common stock sales and $2.2M from warrant exercises. Subsequent to quarter end, an additional $5.4M was raised from stock sales in July 2025.
The company reports two segments: Antimony and Zeolite. For H1 2025, Antimony revenue was $15.6M (89% of total) with operating income of $2.0M (12.7% margin). Zeolite revenue was $2.0M (11% of total) with an operating loss of $0.4M (-21.7% margin). The 'All Other' category (mining claims, corporate) had an operating loss of $1.2M. Geographically, domestic revenue was $17.2M (98.4%), Canada $0.3M (1.6%), and Mexico $0.
Net income for H1 2025 was $0.73M, but operating cash flow was negative ($2.36M), indicating poor cash conversion. The primary drivers were a significant increase in inventories ($5.57M use) and accounts receivable ($1.39M use), partially offset by a $4.20M increase in accounts payable. Depreciation and share-based compensation added $1.39M in non-cash charges. The company invested heavily in property, plant, and equipment ($7.39M) and purchased $9.99M in held-to-maturity securities, resulting in a total investing outflow of $17.38M. Financing activities provided $7.28M through stock and warrant exercises, but overall cash decreased by $12.46M. No dividends or share repurchases were disclosed. The negative free cash flow (CFO minus capex) was approximately ($9.75M), highlighting a reliance on external financing.