United States Antimony (UAMY) risk factors, FY2024 10-K

Financial Risks

1. 01We have experienced losses in recent years and may continue to incur losses
2. 02We may seek or require additional financing, which may not be available on acceptable terms, if at all
3. 03We have broad discretion in the use of our cash and cash equivalents, including the net proceeds we receive from stock offerings, and may not use them effectively
4. 04Metal market prices are volatile, including the antimony metal market price. A substantial and/or extended decline in metals prices, and specifically the antimony market price, would have a material adverse effect on us, especially during the time period that the antimony market price was declining
5. 05other political, regulatory and economic conditions
6. 06An extended decline in metals prices, an increase in operating or capital costs, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations
7. 07Our profitability could be affected by the prices of other commodities
8. 08We are subject to the risk of fluctuations in the relative values of the U.S. and Canadian Dollar and Mexican Peso
9. 09Our liabilities for environmental reclamation and retirement and safety may exceed the amounts accrued on our financial statements
10. 10Our accounting and other estimates may be imprecise
11. 11deferred tax asset and liability valuation allowances

Operational and Mining Industry Risks

1. 12We are substantially dependent on one supplier in Canada that supplies the majority of the ore we process and sell to our antimony customers. A decrease in the supply or an increase in the cost of this supplier’s ore could have a material adverse effect on our business, results of operations, and financial condition
2. 13We are substantially dependent on a lease agreement related to the property that we mine, process, and sell zeolite. Changes to this lease agreement could have a material adverse effect on our business, results of operations, and financial condition
3. 14We are substantially dependent on a few significant customers, and we face significant risks associated with changes in our relationship with these significant customers
4. 15The inability or failure of our customers to meet their contractual obligations could have a material adverse effect on our business, financial position and results of operations
5. 16A material change in payment terms with a significant customer could have a material adverse effect on our short-term cash flows
6. 17Natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results
7. 18Energy costs, including electrical power costs, represent one of the larger components of our cost of goods sold. As a result, the availability of electricity and other energy costs at competitive prices is critical to the profitability of our operations
8. 19Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations
9. 20We may not be able to maintain the infrastructure necessary to conduct mining activities
10. 21Our mining activities may be adversely affected by the local climate
11. 22Certain operations are in Mexico and may be subject to geo-political risk
12. 23Our operations are subject to hazards and risks normally associated with the exploration and development of mineral properties
13. 24Our non-extractive properties may not be brought into the state of commercial production
14. 25Actual capital costs, operating costs, production and economic returns may differ significantly from those we have anticipated and there are no assurances that any future development activities will result in profitable mining operations
15. 26We may face equipment shortages, access restrictions and lack of infrastructure
16. 27Insurance may not be available to us
17. 28Our business depends on the availability of skilled personnel and good relations with employees
18. 29A significant disruption to our information technology could adversely affect our business, operating result and financial position
19. 30Competition from other mining companies may harm our business
20. 31Our Articles of Incorporation allow for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect the rights of the holders of our common stock
21. 32If we lose any of our key personnel, we may encounter difficulty replacing their expertise, which could impair our ability to implement our business plan successfully
22. 33The price of our common stock has a history of volatility and could decline in the future
23. 34If we were liquidated, our common stockholders could lose part, or all, of their investment
24. 35Our Series B preferred stock has a liquidation preference of $1.00 per share or $750,000 plus accumulated dividends
25. 36The issuance of additional equity securities in the future could adversely affect holders of our common stock
26. 37The provisions in our certificate of incorporation, our by-laws and Montana law could delay or deter tender offers or takeover attempts

Legal, Regulatory, and Compliance Risks

1. 38We may be unable to comply with NYSE American continued listing standards and our common stock may be delisted from the NYSE American market, which would likely cause the liquidity and market price of the common stock to decline
2. 39We face substantial governmental regulations, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law
3. 40Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations. Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities
4. 41Some of our facilities are located in or near environmentally sensitive areas such as salmon fisheries, endangered species habitats, wilderness areas, national monuments and national forests, and we may incur additional costs to mitigate potential environmental harm in such areas
5. 42We are required to obtain governmental permits and other approvals in order to conduct mining operations
6. 43New federal and state laws, regulations and initiatives could impact our operations
7. 44We cannot guarantee title to all of our properties
8. 45Mining Claims may not be feasible or economical
9. 46Artificial intelligence may have a material adverse effect on our business, results of operations, and financial condition
10. 47Under the laws of Mexico, mineral resources belong to the state, and therefore, concessions are required to explore or exploit mineral reserves. In Mexico, mineral rights derive from concessions granted, on a discretionary basis, by the Ministry of Economy, pursuant to Mexican mining law and regulations thereunder
11. 48Mexican economic and political conditions, as well as drug-related violence, may have an adverse impact on our business
12. 49Mexican inflation, restrictive exchange control policies and fluctuations in the peso exchange rate may adversely affect our financial condition and results of operations