Release Date: May 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sales from continuing operations increased by 28% compared to the previous year's first quarter.
- Gross profit more than doubled from the previous year's first quarter.
- Cash flow from operating activities of continuing operations improved by $1.4 million compared to last year's first quarter.
- Antimony market price increased by 40% since the end of 2023, reaching a five-year high.
- Successful addition of experienced personnel and improvements in mining and processing operations.
Negative Points
- Experienced significant operational downtime due to aggressive inspection and required major repairs.
- Zeolite business faced challenges with higher repairs and maintenance costs.
- Operating expenses increased by $577,000 in the first quarter compared to last year's first quarter.
- Antimony inventories are about 50% lower this quarter, indicating potential supply issues.
- Uncertainty around the realization of new initiatives and government connections for selling products.
Q & A Highlights
Q: Are you going to get a DOD injection like PPTA did?
A: Gary Evans, Co-CEO, mentioned that the company is actively seeking government grants and has been in discussions in Washington. The completion of leasing activities will strengthen their position for obtaining financial support.
Q: When do you feel like returning to profitability and how?
A: Richard Isaak, CFO, explained that the company faces challenges with older machinery and equipment, leading to downtime and inefficiencies. However, improvements are underway, and while it's difficult to predict the exact timing, the company is working towards profitability.
Q: Is there any interest in moving some of the Mexican assets to Montana?
A: Gary Evans stated that most equipment from Mexico is not useful for their operations in Montana. However, they are in the final stages of hiring a broker to market these assets, which have turned out to be more valuable than initially expected.
Q: Aside from antimony and zeolite, are you looking at other materials?
A: Gary Evans confirmed interest in other critical minerals found on one of the properties they are leasing, indicating a strategic expansion of their mineral portfolio.
Q: What does filing the shelf in July entail for common shareholders?
A: Gary Evans explained that filing a universal shelf registration statement will provide the company with the flexibility to capitalize on unique opportunities quickly, enhancing their ability to raise capital or pursue acquisitions.
Q: Will any of the leasing opportunities you are pursuing for antimony produce an antimony source within the next few years?
A: Lloyd Bardswich, Co-CEO, expressed optimism about the leasing activities but refrained from providing specific details due to competitive reasons and regulatory compliance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
