Why Soaring Metal Deliveries Are Driving Record Profits for U.S. Antimony

2026-11-13 companies

Thompson Falls, Thursday, 12 November 2026.
Surging military deliveries helped United States Antimony more than double its third-quarter profit margin to 42%, despite a steep global price slump that led the miner to shift toward volume-based guidance.

Third-Quarter Surge in Deliveries to the Defense Logistics Agency

United States Antimony Corporation (NYSE American: UAMY) reported a 16% revenue increase to $10.1 million for Q3 2026, driven by a 68% surge in antimony sales volume to 468,842 pounds. The critical driver was the Defense Logistics Agency (DLA), which formally accepted four shipments totaling approximately 162,327 pounds of antimony metal ingots, generating approximately $5.1 million in revenue [1][5]. This military demand expanded rapidly in October, when the DLA accepted three additional shipments totaling ~113,000 pounds, yielding ~$3.6 million in sales [1]. The cumulative effect was a record monthly sales volume of 310,000 pounds in October, the company’s highest ever. These deliveries are part of a $57.3 million DLA contract, with $8.7 million accepted and paid through October 2026 and $48.6 million remaining through 2029 [1].

Gross Margin Nearly Doubles as Volumes Outpace Price Declines

Despite a global antimony price collapse of approximately 63%—from $22.23 per pound in late October 2025 to $8.16 per pound on November 5, 2026 [1][8]—United States Antimony managed to expand its gross profit margin from 23% in Q3 2025 to 42% in Q3 2026, with gross profit rising 113% to $4.3 million [1]. This counterintuitive margin expansion reflects the company’s strategic pivot from price-based to volume-based revenue recognition, particularly under its exclusive DLA contract. Management emphasized that the timelines for sampling, assay, shipment, and acceptance—initially longer than anticipated—have improved, reducing the sampling-to-payment cycle from up to 124 days down to approximately 70 days [1][10]. As CEO Gary C. Evans noted, “These were the first deliveries under our new exclusive contract, and every step took longer than originally anticipated. Since then, we have cut the time from sampling to payment… and we expect the process to continue to become more routine as we move into fiscal year 2027.”

Full-Year Outlook Recalibrated: Volume Over Value

Following the surge in deliveries, United States Antimony raised its full-year 2026 antimony sales outlook to between 1.68 and 1.81 million pounds—a 24% increase at the midpoint over 2025 levels [1][7][10]. This represents a strategic shift from revenue-based guidance to volume-based targets, reflecting the company’s limited control over realized prices amid global oversupply. The October 2026 volume of 310,000 pounds underscores this accelerated pace [1]. While antimony prices remain depressed, the company’s liquidity position has been preserved at approximately $90 million, including $51.0 million in cash and U.S. Treasury securities as of September 30, 2026 [1][2]. This financial cushion supports ongoing capital expenditures, including $28.4 million invested in the Thompson Falls smelter expansion and Radersburg midstream flotation facility during the first nine months of 2026 [1].

Market Sentiment and Analyst Perspectives

The company’s Q3 2026 earnings release on November 12, 2026, triggered a sharp 23.1% one-day share price gain, though the stock remains down 47.3% over 90 days and 54.8% year-over-year as of November 11, 2026 [3][5]. Analysts offer a bullish long-term view, with a consensus price target of $11.30—implying a 259% upside from the current trading price—based on the arithmetic mean of four verified targets ranging from $9.25 to $13.50 [4][7]. The valuation disparity is stark: UAMY trades at a Price-to-Sales (P/S) ratio of 14.3x, significantly exceeding the metals and mining industry average of 3.2x and peers at 4.4x [3][5]. However, concerns persist regarding operating losses, net income volatility, and exposure to antimony price fluctuations [4][8]. With the company scheduled to report Q3 2026 results after market close on November 12, 2026, investors are closely monitoring whether the delivery surge can translate into sustained profitability amid a challenging macroeconomic backdrop [6][9][11].

Sources

earnings report critical minerals