U.S. ANTIMONY CORPORATION
(USAC)
2014
April, 2014
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AGENDA
USAC CORPORATE OVERVIEW
FINANCIAL UPDAT
UASC HIGHLIGHTS
USAC ANTIMONY PRODUCTION FACILITIES
BEAR RIVER ZEOLITE
USAC MANAGEMENT TEAM
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USAC CORPORATE OVERVIEW
NYSE: UAMY
• USAC is a rapidly growing natural resource company that is increasing its raw
material supply of antimony from properties in Mexico and third parties around
the world.
• USAC has produced various antimony products since 1969 and is a fully
integrated mining, transportation, milling, smelting, and marketing company.
• China supplies more than 90 percent of all the antimony in the world, and their
resources are being depleted.
• USAC operates the only significant antimony smelter in the United States and it
is in a “sold out” condition.
• The Company has proven experience in underground and open pit mining,
flotation and gravimetric milling, crushing and screening, dry grinding, cyanide
leaching, precious metal refining, pyro-metallurgy, and marketing.
• USAC has developed proprietary technology to smelt a variety of raw materials
and recover impurities such as lead, arsenic, bismuth, mercury, selenium, silver,
and gold.
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Corporate Offices and Plant, Thompson Falls, Montana
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• Operations include a smelter and a precious metal refinery in Montana, and a
smelter and three mills in Mexico.
• A larger 500 ton mill is being installed in Mexico.
• Five Mexican properties supply direct shipping ore (DSO) or mill feed for the
Mexican smelter.
• The Los Juarez property is starting significant silver and gold production that will
supplement the antimony values and identify the Company as a “precious metal
producer.”
• USAC owns 100% of the Bear River Zeolite, Corp. mine in southeast Idaho
regarded as one of the best zeolite properties in the world due to its high cation
exchange capacity, low sodium content, superior hardness, uniformity, high
potassium content, large surface area, and low clay and impurity content. The
deposit can be mined and processed cheaper than other deposits because there is
little internal waste or external overburden, it is more than 800 feet thick, and it is
very homogeneous.
• BRZ zeolite has hundreds of applications as an “environmentally friendly”
material.
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USAC CORPORATE HIGHLIGHTS
• USAC has connected a natural gas pipeline to its Mexican smelter at Madero that
will cut fuel costs by up to 75%. Fuel is the largest cost of the smelter.
• USAC is producing from the Wadley Mine in the State of San Luis Potosi, Mexico.
The mine is historically the largest producer of antimony in North and Central
America, with a recorded production through 1943 of 50,000 metric tons of
antimony metal contained.
• USAC is producing from five antimony mines in Mexico, and at the present time,
there is an inventory of two months of furnace feed at the Mexican smelter.
• USAC has just received a permit for four more furnaces at the Mexican smelter
and they are under construction.
• USAC Mexican production increased from 372,046 pounds in 2012 to 683,9323
pounds in 2013, an increase of 83.8%. Overall antimony production for the
company increased from 1,423,279 pounds in 2012 to 1,780,134 pounds in 2013,
an increase of 25%.
• Antimony is considered a “strategic metal” and wartime applications include
antimony oxide used as a flame retardant in plastics and textiles for vehicles and
aircraft; antimony metal used in storage batteries and in ordnance to harden lead;
and antimony tri-sulfide for primers and rockets.
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MEXICO MINING OPERATIONS
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1. LOS JUAREZ PROPERTY, QUERETARO, MEXICO
• At the Los Juarez property USAC relied on a Mexican Government publication,
Consejo de Recursos Minerales, Monografia Geologico-Minera del Estado de
Querearo, pages 74-75. The paper reported a reserve of 1,000,000 metric tons
containing 253 grams per ton silver and 1.8% antimony on 40 hectares (100 acres).
The deposit was interpreted as a manto (layered) deposit up to 5 meters thick.
• Although USAC used the report to start mining, it was disallowed by the S.E.C. as
a basis for reserves. Detailed mapping and sampling delineated jasperoid
mineralization over an east-west strike length of 3.5 kilometers with a maximum
width of 1 kilometer. Unlike most Mexican deposits, this deposit is primarily all
sulfide. Preliminary exploration indicates that it could be a deep-seated jasperoid.
• USAC controls this property directly.
10
Mine face, Los Juarez property, Queretaro, Mexico
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Breaking oversized Los Juarez ore
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2. WADLEY, SAN LUIS POTOSI, MEXICO
• According to the U. S. Geological Survey, by 1943 the “San Jose Wadley mines
have produced more antimony than any other district in Mexico, and they have
been surpassed in production by only one or two other deposits in the world.” By
1943, the recorded production was 57,612 metric tons of contained antimony
metal. Since that time the mine has probably produced approximately an
additional 25,000 metric tons of metal.
• The mineralization is primarily in five layered deposits or “mantos” that were fed
by fracture filling veins that also contain mineralization. The zone is approximately
2 kilometers long and 1 kilometer in width, and has been developed by 500
kilometers of drifts and tunnels.
•The ore consists almost entirely of oxide minerals that were recovered by handsorting “direct shipping ore” for smelting and gravimetric concentration of the
lower-grade material.
• USAC claims no reserves at the present time at Wadley.
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Buscones Wadley, SLP, Mexico
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Wadley bin from aerial tramway
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3. SOYATAL DISTRICT, QUERETARO, MEXICO
• USAC is sourcing 5-6% antimony mill feed and DSO for Madero from the Soyatal
District in the State of Queretaro, Mexico.
• The deposit was the third largest antimony producer in Mexico. Donald E. White
(U. S. Geological Survey Bulletin 960-B, Antimony Deposits of Soyatal District,
State of Queretaro, Mexico, 1948) reported that the production (p. 40) was
estimated through 1943 at 25,630 metric tons of metal contained. USAC has
purchased this property but claims no reserves.
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Soyatal DSO ore
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4. SIERRA GUADALUPE, ZACETECAS, MEXICO
• In the late 1980’s USAC mined a property known as “Sierra Guadalupe” in the
State of Zacetecas.
• Currently, the property is being mined by a third party who delivered 2.5 to 4%
antimony mill feed from dumps at a rate of up to 1,000 tons per month.
• They are now producing 5-8% antimony ore from underground with explosives
permit.
• USAC has an option to buy this property but claims no reserves.
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Aerial view of Santa Monica dumps, Sierra Guadalupe
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5. GUADALUPANA, QUERETARO, MEXICO
• This property was originally mined by Compania Minera Y Refinadora Mexicana,
S. A. Estacion Wadley, and SLP during World War II and thereafter. It consists of 3
underground levels with extensive drifts, stopes, cross-cuts, and raises.
• Currently, the mine is operated by a third party and they are supplying 28-35%
DSO and oxide mill feed.
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Guadalupana, QRO, Mexico Crew
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USAC ANTIMONY PRODUCTION FACILITIES
1. PUERTO BLANCO ANTIMONY COMBINATION
FLOATATION/GRAVITY MILL, GUANAJUATO, MEXICO
• This plant produces antimony flotation and gravity concentrates that may
contain silver and gold. The plant feed capacity is up to 150 tons per day.
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Pre-crusher circuit Puerto Blanco mill
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Puerto Blanco flotation mill
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2. ANTIMONY OXIDE ORE GRAVITY MILL, WADLEY, SAN LUIS POTOSI,
MEXICO
• This plant produces gravity concentrates and has a feed capacity of up to 500
tons per day.
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Wadley plant, SPP, Mexico
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Wadley plant thickener, San Luis Potosi, Mexico
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3. ANTIMONY OXIDE SMELTER, THOMPSON FALLS, MONTANA
• This plant has a capacity to produce 15,000,000 pounds per year of antimony
oxide, or 5,000,000 pounds per year of antimony metal.
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USAC mill, Thompson Falls, Montana
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4. ANTIMONY OXIDE OR SULFIDE SMELTER, MADERO, COAHUILA,
MEXICO
• This smelter produces crude antimony oxide or metal from 5 tons per day of
DSO or concentrate.
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Madero Smelter, Coahuila, Mexico
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5. SILVER AND GOLD REFINERY, THOMPSON FALLS, MONTANA
• This plant recovers silver and gold as either a high purity silver metal and/or
gold. The Company expects costs for PM will be minimal.
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Pouring precious metals, Thompson Falls, Montana
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ZEOLITE OPERATIONS
• BEAR RIVER ZEOLITE COMPANY (BRZ) is a wholly owned subsidiary of United
States Antimony Corporation (USAC) of Thompson Falls, Montana.
• The zeolite is regarded as one of the best zeolites due to its high cation
exchange capacity, low sodium content, superior hardness, and uniformity.
• The products are sold in the United States and throughout the world.
• Markets include:
• water filtration
• soil amendments
• animal nutrition
• waste-water treatment
• odor control
• hydrogen sulfide gas control
• nuclear remediation
• pozzolan
• plastic fillers
• grout
• ammonia control in underground mining
operations
• heavy metal and ammonia removal from
water
• remediation of produced water from, oil
and gas wells
• mine remediation
• and many others.
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BRZ plant, Preston, Idaho
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Blast hole drill at BRZ
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BRZ pit
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Raymond mill, BRZ
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USAC MANAGEMENT TEAM
USAC BOARD OF DIRECTORS
John C. Lawrence (Thompson Falls, MT)
Gary Babbitt (Boise, ID)
Russell C. Lawrence (Deary, ID)
Hart W. Baitis (Missoula, MT)
Whitney H. Ferer (Omaha, NE)
CORPORATE OFFICERS
John Lawrence: President and CEO
John C. Gustavsen: First Vice-President
Russell C. Lawrence: Second Vice-President
Matt Keane: Third Vice-President
Alicia Hill: Secretary, Controller, Treasurer
Dan Parks: CFO
CORPORATE COUNSEL
Paul Boyd, Stoel Rives, LLP (Boise, ID.)
ANTIMONY, THOMPSON FALLS, MT
Marilyn Sink: Plant Manager
Lance Sink: Assistant Manager
Matt Keane: Director Sales
Tony Lyght: Maintenance Foreman
ZEOLITE,PRESTON,IDAHO
Angie Bengtson: General Manager
Gerardo Sanchez: Plant Manager
Dave Cole: Mine Manager
MEXICO OPERATIONS
Russell C. Lawrence: Director Latin America
Jose Jesus Heriberto Torres Montes:
Superintendent
Reynaldo Angles: Mine Manager Los Juarez
Luis Valeriio: Delgado Smelter Manager
Sixto Beserra: Chemist Smelter
AUDITORS
Decoria, Maichel, & Teague P.S. (Spokane, WA.)
TRANSFER AGENT
Columbia Stock Transfer Company (Post Falls, ID)
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Reclaimed tailings area, Thompson Falls, Montana. USAC is environmentally conscientious.
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FINANCIAL UPDATE – USAC CORPORATION
United States Antimony Corporation and Subsidiaries
Consolidated Balance Sheets
December 31, 2013 and 2012
ASSETS
2013
2012
Current assets:
Cash and cash equivalents
$
20,343
$
1,000,811
Certificates of deposit
Accounts receivable, net
Inventories
Other current assets
Deferred tax asset
246,565
576,021
1,034,770
32,865
-
243,616
456,159
1,192,189
170,529
39,824
Total current assets
1,910,564
3,103,128
Properties, plants and equipment, net
12,395,645
9,508,975
Restricted cash for reclamation bonds
75,501
75,251
-
189,627
509,281
498,496
Deferred tax asset
Other assets
Total assets
$
14,890,991
$
13,375,477
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
Due to factor
Accrued payroll, taxes and interest
$
1,734,767
177,701
$
1,181,225
23,536
124,937
89,541
Other accrued liabilities
50,745
30,220
Payables to related parties
15,549
17,522
Deferred revenue
110,138
-
Notes payable to bank
138,520
-
Long-term debt, current
126,984
280,597
2,479,341
1,622,641
1,002,215
157,466
Stock payable to directors for services
150,000
-
Asset retirement obligations and accrued
reclamation costs
257,580
249,540
3,889,136
2,029,647
Total current liabilities
Long-term debt, net of discount and current
portion
Total liabilities
Commitments and contingencies (Note 4 and 15)
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Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares
authorized:
Series A: -0- shares issued and outstanding
-
-
7,500
7,500
1,779
1,779
17,509
17,509
631,562
618,966
32,030,249
30,745,650
(21,686,744)
(20,045,574)
11,001,855
11,345,830
Series B: 750,000 shares issued and outstanding
(liquidation preference $892,500 and $885,000,
respectively)
Series C: 177,904 shares issued and outstanding
(liquidation preference $97,847 both years)
Series D: 1,751,005 shares issued and outstanding
(liquidation preference $4,796,731 and $4,755,582,
respectively)
Common stock, $0.01 par value, 90,000,000 shares
authorized;
63,156,206 and 61,896,726 shares issued and
outstanding, respectively
Additional paid-in capital
Accumulated deficit
Total stockholders' equity
Total liabilities and stockholders' equity
$
14,890,991
$
13,375,477
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WARRANTS
Number of Warrants
Balance, December 31, 2010
Warrants exercised
Balance, December 31, 2011
Warrants issued
Warrants exercised
Warrants expired
Balance, December 31, 2012
Warrants issued
Warrants exercised
Warrants expired
Balance, December 31, 2013
The above common stock
warrants expire as follows:
Year ended December 31:
June 28, 2014
July 15, 2014
December 10, 2014
June 29, 2015
Thereafter
Exercise Prices
725,000
(125,000)
600,000
1,734,667
(250,000)
(150,000)
1,934,667
629,740
(25,000)
(50,000)
2,489,407
$.20 - $.75
$.30 - $.40
$.30 - $.60
$2.50 - $4.50
$.30 - $2.50
$.30 - $.40
$.25 - $4.50
$1.20-$1.60
$1.20
$4.50
$.25 - $4.50
287,500
1,207,750
267,240
476,917
250,000
2,489,407
$1.20
$2.50
$1.60
$4.50
$0.25
$.25 - $4.50
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BENEFICIAL OWNERS
Title of
Class
Common
Stock
Common
Stock
Common
Stock
Common
Stock
Common
Stock
Name and Address of
Beneficial Owner (1)
Cardinal capital Management
LLC Four Greenwich Office
Park Greenwich CT 06831
Reed Family Limited
Partnership 328 Adams Street
Milton, MA 02186
The Dugan Family
c/o A.W.Dugan
1415 Louisana Street, Suite
3100
Houston, TX
77002
John C. Lawrence
Russell Lawrence
Hart Baitis
Garry Babbitt
Bernard Guarnera
Whitney Ferer
Mathew Keane
Daniel Parks
All Directors and Executive
Officers as a Group
Amount and Nature of
Beneficial Ownership
Percent of
Class (1)
Percent of
all Voting
Stock
4,008,694
6.40%
6.20%
4,018,335
6.60%
6.40%
6,362,927(3)
4,128,346(2)
165,693
20,526
134,167
87,725
58,026
10,300
40,000
10.70%
6.50%
*
*
*
*
*
*
*
10.40%
6.30%
*
*
*
*
*
*
*
4,644,783
7.30%
7.10%
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