Why Is US Antimony Stock Falling Over 4% Premarket?

• During the conference call with analysts, Chief Financial Officer Richard Issak warned that there would be some pressure on our gross margins in the fourth quarter.
• “We're looking to offset as much of this decline as we can with lower costs and higher-margin long-term contracts,” Richard Issak, CFO.
• The company also reduced the upper end of its annual revenue forecast to $43 million from $50 million, while maintaining the lower end at $40 million.

United States Antimony stock (UAMY) slipped over 4% in premarket trading on Thursday after the firm posted a surprise third-quarter loss.

The company reported a loss of $0.04 per share for the quarter ended Sept. 30, while analysts expected a profit of $0.02 per share. Its third-quarter revenue of $8.7 million fell below estimates of $13 million, according to Fiscal.ai data.

Margin Warnings In Fourth Quarter

During the conference call with analysts, Chief Financial Officer Richard Issak warned that there would be pressure on its gross margins in the fourth quarter due to a declining antimony market price. “We're looking to offset as much of this decline as we can with lower costs and higher-margin long-term contracts,” he said.

The company, which operators the only antimony smelters in the country, said it is pushing to increase antimony sales volume to increase its gross profit dollars and generate more cash flow. The company also reduced the upper end of its annual revenue forecast to $43 million from $50 million, while maintaining the lower end at $40 million.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about US Antimony was still in the ‘bearish’ territory at the time of writing.

Some traders were still bullish, with one pinning hopes on the company’s projections of almost tripling its revenue to $125 million.

Antimony is used in munitions, batteries, military-grade compounds, and the semiconductor industry. However, China controls 65% of global antimony and restricted exports of the critical mineral last year amid its tussle with the United States. The restrictions have brought United States Antimony into the spotlight as the sole refiner of the metalloid.

The company sells antimony, zeolite, and precious metals primarily in the U.S. and Canada. In September, the company secured a five-year contract worth up to $245 million from the U.S. Defense Logistics Agency to contribute to the antimony stockpile.

“We look at the competitive landscape in the antimony business, we don't see any other antimony company, either domestic or foreign, that is competition today,” CEO Gary Evans said.

US Antimony stock has more than quadrupled this year.

Also See: DLocal’s Strong Quarter Came With A Warning: Here’s What Spooked Investors

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