U.S. ANTIMONY CORPORATION JOHN LAWRENCE, CEO GHS July 19, 2011 1.
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Transcript of U.S. ANTIMONY CORPORATION JOHN LAWRENCE, CEO GHS July 19, 2011 1.
U.S. ANTIMONY CORPORATION
JOHN LAWRENCE, CEO
GHS July 19, 2011 1
USAC CORPORATE PROFILE
2GHS July 19, 2011
47 Cox Gulch RoadThompson Falls, MT 59873
Phone: 406-827-3523Fax: 406-827-3543
Email: [email protected]
www.usantimony.comwww.bearriverzeolite.com
USAC SMELTER AND CORPORATE OFFICES
• USAC is a rapidly growing natural resource company with three products: antimony, precious metals (silver and gold) and zeolite.
• USAC produces antimony metal and tri-oxide at its Montana and Mexico smelters
• USAC obtains antimony raw materials from its own mines and mill, plus other mines and smelters in Canada, Mexico, and Europe.
• USAC uses proprietary metallurgical processes to recover precious metals from antimony raw materials
• USAC sold 1,679,041 pounds of antimony at an average sales price of $3.67 per pound in 2010
• USAC will mine antimony and silver at its Los Juarez property in Queretaro, Mexico
• USAC subsidiary Bear River Zeolite mines natural zeolite near Preston, Idaho; 15,318 tons of zeolite were sold at an average sales price of $157.72 per ton in 2010
USAC reported a profit of $805,213 on revenues of $9,073,324 in 2010
3GHS July 19, 2011
ANTIMONY METAL AVERAGE PRICE/TON
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2010
2009
2008
2007
2006
2005
2004
USAC ANNUALTOTAL SALES
ANTIMONY
• Antimony is a strategic metal accounting for 68% of USAC 2010 revenues
• China currently produces 92% of 350 million pound world market
- Antimony uses:Metal – automotive bearings, ordinance, storage batteriesOxide – fame retardant, ceramics, catalysts
- Substitutes for antimony oxide flame retardants are less economic and do not perform as well
• USAC’s proprietary metallurgy recovers precious metals from antimony and removes impurities such as lead and bismuth
USAC IS ONLY FULLY-INTEGRATED ANTIMONY PRODUCER OUTSIDE OF CHINA
4GHS July 19, 2011
• Demand is strong
- China’s resources are reportedly disappearing
• USAC mines, mills, and smelts antimony ores
2010
2009
2008
2007
2006
2005
2004
ANTIMONY: MEXICO MINING PROPERTIES
- Possibly bulk minable by open pit methods
- Estimated initial recoveries 80-85%
- Operations to commence Q3 2011
5GHS July 19, 2011
• LOS JUAREZ ANTIMONY, SILVER AND GOLD DEPOSIT – QUERETARO, MX
- Recently expanded to 3000 hectares
- Soyatal was the third largest producer of antimony in Mexico
- Hand sorted rock and mill feed now being purchased
• SOYATAL MINING DISTRICT – QUERETARO, MX
- Supply Agreement on 283 hectares
Mining operations at Soyatal Mining District
Los Juarez property
ANTIMONY: MEXICO MILL AND SMELTER
- Will process rock from Los Juarez, Soyatal and other properties
- Operation to begin 3Q 2011
- Will produce 50-60% antimony concentrates with silver and gold
6GHS July 19, 2011
• FLOTATION MILL – CORRAL BLANCO, GUANAJUATO, MX
- Capacity of 150 metric tons per day
- Highway access to Gulf of Mexico, Pacific Ocean and United States
- Feed capacity over 250 metric tons per month (approximately 300,000 pounds of antimony metal content)
• ANTIMONY SMELTER – MADERO, COAHUILA, MX
- Property convenient to major rail line
Corral Blanco Flotation Mill
- Smelter operations began in 2010
Madero Smelter
ANTIMONY PRODUCTION
7GHS July 19, 2011
ANTIMONY METAL
ANTIMONY OXIDE
FLOW DIAGRAM FORANTIMONY (Sb), SILVER (Ag) & GOLD (Au) PRODUCTION
Raw Materials
Worldwide
1-15% Sbplus Ag & Au
Concentrate50-60% Sb150-300 opt Ag, 1-5 opt Au
Sb Metal with Ag & AuSb2O3 (Sb Oxide)
Sb Metal“Finished” Sb2O3 (Sb Oxide)Na SbO3 (Sodium Antimonate)Ag & Au (Silver & Gold)
Sb Metal Sb2O3 (Sb Oxide)
Mines
Los Juarez, Soyatal, MX
USAMSA
Sulfide and OxideSmelter
Madero, Coahuila, MX
USAMSA
Flotation Mill
Corral Blanco, MX
USAMSA
MARKET
Oxide Smelter
Thompson Falls, Montana, USA
USAC
USA MEXICO
8GHS July 19, 2011
USAC PLANT LOCATIONS
PRECIOUS METALS (SILVER AND GOLD)
• Precious metals accounted for 5% of USAC 2010 revenues
• USAC uses proprietary metallurgy to recover precious metals from antimony ore
9GHS July 19, 2011
• Silver and gold are by-products of USAC antimony ore smelting
• 2009 and 2010 precious metal revenues included a discount of 25% on silver and 40% on gold from independent smelter
ZEOLITE – BEAR RIVER ZEOLITE (“BRZ”)
• Zeolite is an industrial mineral that is a natural cation exchange agent
• BRZ zeolite applications :Animal and Agriculture: feed, flow agent, hogs, horses, odor control, pellet binder, poultry, ruminantsAir Filtration: ammonia, blasting, odor controlAquaculture: ammonium control, decorative Concrete and PozzolanRemediation: nuclear, oil spills on water, floor spills, toxic wasteSoil: soil amendment, golf and turf, for high salinity soilsWater: cation removal, drinking water filtration, swimming pools, waste water treatment, water filtrationRetail: algae eater, decorative, floor spill, deodorizer, horse stall freshener, kitty litter, soil amendment
10GHS July 19, 2011
• Demand is strong
• BRZ mines, mills and sells natural zeolite
2010
2009
2008
2007
2006
2005
2004
• USAC wholly owned subsidiary near Preston, ID
• BRZ zeolite sales accounted for 27% of USAC 2010 revenues
BEAR RIVER ZEOLITE
- Selected by Department of Energy to remediate West Valley, New York Strontium 90 nuclear plant leak (almost 100% removal of Strontium 90)
- Currently being tested by TEPCO to help remediate Fukujima nuclear disaster
11GHS July 19, 2011
BRZ plant near, operating since 2004BRZ pit near Preston, ID
Strontium 90 Plume
West Valley Demonstration Project
MARKET PROFILE
• SYMBOL: UAMY.bb (to apply for AMEX listing)
• MARKET CAP $240 million
• SHARES OUTSTANDING (FD): 60 million
• Q1 2011 PRICE RANGE: $.32 - $4.10
• SHARE OWNERSHIP:- Officers/Directors 11.0 million 18% - 5% Holder 3.9 million 6%- Institutions (est.) 10.0 million 16%
• AVERAGE DAILY VOLUME: 140,000
Q1 2011 (UNAUDITED)
CashWorking CapitalTotal Debt
Stockholder’s Equity
$1,543,1761,846,494
142,150
$5,739,884
12GHS July 19, 2011
GHS July 19, 2011
U.S. ANTIMONY CORPORATIONUAMY.BB
13
MANAGEMENT and BOARD
NEW BOARD DIRECTOR
Hart W. Baitis – Former CEO of two Minorco U.S. subsidiaries. Mining expert on a global basis. PhD Geology.
CORPORATE MANAGEMENT, THOMPSON FALLS, MT
John Lawrence: President and CEO- Antimony expert. Skilled geologist, metallurgist, chemist, mill and mining expert
Dan Parks: CFO- Former Coopers and Lybrand partner for mining companies
Matt Keane: Director Sales
Russell Lawrence: COO Mexico operations
14GHS July 19, 2011
John Lawrence, working CEO
15
• Major U.S. industrial corporation recently issued large multi-year purchase order to USAC
GOAL: REPLACE CHINA’S FADING INDUSTRY DOMINATION
• Chinese imports of antimony concentrates up 66% January to May 2011
GHS July 19, 2011
• USAC expanding to service its total antimony demand
USAC ANTIMONY PRODUCTION CURRENTLY “SOLD OUT”
WHY OWN USAC NOW?
16GHS July 19, 2011
1. USAC REVENUES EXPANDING RAPIDLY WITH MEXICO MINES AND MILL
2. USAC EXPANDING WORLDWIDE SOURCES OF RAW MATERIALS
3. APPLICATION FOR AMEX LISTING PLANNED FOR Q3 2011
This presentation includes certain “forward-looking statements” or “forward-looking information”. All statements of historical fact, included in this presentation are forward-looking statements that involve risks and uncertainties. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “forecast”, “may”, “will”, “schedule”, and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of antimony, zeolite, gold and silver and gold equivalent production and prices, cash and operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performances, margins, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses, anticipated 2011 results, our ability to fully fund our business model, including our capital and exploration program, internally, anticipated 2011 year-end interim and annual gold and silver production and the cash and operating costs associated with the same, the ability to achieve productivity and operational efficiencies, the ability to achieve cash flow margin improvements, the ability to develop and put into production our exploration targets and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by United States Antimony Corporation, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Important factors that could cause actual results to differ materially from United States Antimony Corporation expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, future prices of antimony, zeolite, silver and gold, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, hedging activities, development and operating risks, illegal miners, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, or accidents. Although United States Antimony has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are not guarantees of future performance. Accordingly, readers should not place undue reliance on forward-looking statements.
FORWARD LOOKING STATEMENTS
17GHS July 19, 2011