US Antimony stock initiated with Outperform rating by William Blair

Investing.com - William Blair initiated coverage on US Antimony Corp (NYSE:UAMY) with an Outperform rating on Monday, highlighting the company’s critical role in national security and its recent contract with the U.S. Defense Logistics Agency. The stock has demonstrated remarkable performance, with a 1,535% return over the past year. According to InvestingPro data, the company currently trades at a market capitalization of $1.58 billion.

The research firm noted that antimony prices have quadrupled over the past year to over $55,000 per ton, positioning US Antimony favorably with its processing capabilities and diverse assets, including claims in Alaska, Canadian cobalt and tungsten properties, and an Idaho zeolite mine. The company’s revenue has shown strong growth, with a 134.9% increase in the last twelve months to $25.7 million.

US Antimony is currently expanding its Montana processing facility, which will create a sixfold throughput increase to support its recently announced five-year, sole-source $245 million supply contract with the U.S. Defense Logistics Agency for antimony metal ingots. The company maintains a healthy financial position with a current ratio of 2.21, indicating strong liquidity to support its expansion plans.

The company maintains seven diverse international shipment contracts with non-Chinese suppliers featuring antimony content above 50%, while also making progress on obtaining mining permits and Department of Defense approval for its 30,000-acre mining and surface rights in Alaska, with operations potentially starting next year. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers key metrics and growth prospects.

Beyond antimony, US Antimony holds 455 claims in Ontario’s Sudbury Basin for cobalt, recently acquired tungsten claims through its 100% acquisition of the Fostung Properties in Canada, and operates the only domestic zeolite production facility in Preston, Idaho, used for water filtration and animal feed. With an overall Financial Health Score of "GOOD" from InvestingPro, the company appears well-positioned to execute its diversification strategy.

In other recent news, United States Antimony Corporation announced a significant development with the award of a $245 million sole-source contract from the U.S. Defense Logistics Agency. This contract involves the supply of antimony ingots for the National Defense Stockpile and includes an initial delivery order valued at approximately $10 million. In financial activities, the company filed a prospectus supplement for a common stock offering worth up to $400 million, which became effective immediately upon filing. Additionally, United States Antimony disclosed a direct offering of 3.5 million shares of its common stock, expected to generate gross proceeds of $26.25 million.

H.C. Wainwright, a research firm, raised its price target for the company’s stock from $4.50 to $8.50 while maintaining a Buy rating, reflecting confidence following the Defense Logistics contract announcement. The company has also entered into a Securities Purchase Agreement, with A.G.P./Alliance Global Partners acting as the exclusive placement agent for the transaction. The net proceeds from this offering, after deductions, are anticipated to be approximately $25.56 million. These developments highlight a period of strategic financial maneuvers and contract acquisitions for United States Antimony.

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