[ACCESSWIRE]
THOMPSON FALLS, MT / ACCESSWIRE / March 6, 2017 / United States Antimony Corporation ("USAC") (NYSE MKT: UAMY) reports significant price increases in antimony and that it has successfully transitioned from custom smelting antimony concentrates at the Madero, Coahuila, Mexico plant to its own mine production. This Company's antimony business plan is to accelerate production from its Mexican antimony mines with internal cash flow. The mines had been idle for two years.
With its own antimony raw materials, USAC will benefit fully from price increases, rather than just the smelting fees and small percentages of the price increases. Additionally, the company will enjoy lower processing and trucking costs.
Production estimates for January and February 2017 as follows:
|
Product |
January 2017 |
February 2017 |
January + February |
|
Antimony pounds |
158,989 |
185,883 |
344,872 |
|
Zeolite tons |
1,229 |
1,042 |
2,229 |
Compared to 2016, antimony production was lower in Mexico during January and February 2017 due to the transition from the custom smelting to the start up of Mexican production from USAC mines. However, the Company expects production to ramp up from Wadley, Soyatal, and Guadalupe to utilize the smelter capacity at Madero. The Rotterdam price of antimony grade I metal has increased as follows:
|
Date |
$ / metric ton |
$ / pound |
Increase / pound |
% increase |
|
Jan 1, 2016 |
5,291.00 |
2.40 |
|
|
|
Jan 1, 2017 |
7,300.00 |
3.31 |
0.91 |
37.9 |
|
Feb 28, 2017 |
8,500 |
3.86 |
0.55 |
16.6 |
|
Cumulative increases |
3,209 |
|
1.46 |
60.8 |
The impact of this price increase on USAC is profound. During the first half of 2016, the Company sold product at the lowest price it had in seven years. The average USAC sale price for all of 2016 was $2.98 per pound. On March 2, the Rotterdam price was increased to $3.90 metal per pound.
Although further price increase cannot be predicted, the world reserves of antimony are being depleted and the costs of production are rising. China has the largest reserves of antimony, and it is now importing approximately 40% of their smelter feed. During January 2017, China (which produces about 90% of the world's antimony) exported only 42 metric tons of metal. Normally, they would export about 5,000 metric tons per month. Fortunately, USAC had the foresight to secure its own raw material sources in Mexico.
BRZ zeolite production was up YOY in January and February 2017 by 274 tons, or 14%, even though heavy snow curtailed access to the mine for almost 4 weeks.
Processing of flotation concentrates using the alkaline leach procedure from the Los Juarez gold, silver, and antimony property in Queretaro, Mexico has confirmed good recovery. The Company expects to provide an update on the cyanide leach permit, which may not be necessary, and the start up of the mill on a pilot basis shortly.
CEO, John Lawrence, said, "Higher antimony prices and enhanced margins from mining its own Mexican properties will help USAC to expand its Mexican antimony production and start Los Juarez in the near future."
About U.S. Antimony
US Antimony is a growing, vertically-integrated natural resource company that has production and diversified operations in precious metals, zeolite, and antimony.
Forward-Looking Statements:
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters related to the Company's operations, pending contracts and future revenues, ability to execute on its increased production and installation schedules for planned capital expenditures and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-KSB with the Securities and Exchange Commission.
UNITED STATES ANTIMONY CORPORATION
P.O. Box 643, 47 Cox Gulch Rd.
Thompson Falls, Montana 59873-0643
406-827-3523
FAX: 406-827-3543
E-Mail: tfl3543@blackfoot.net
SOURCE: U.S. Antimony