United States Antimony Corporation (“USAC”, OTCBB “uamy.ob”) has reported a loss of $116,233 on sales of $3,053,554 for Q1 2012 compared to a profit of $45,363 on sales of $2,838,039 for Q1 2011. The loss is attributed to a $1,488,911 inventory build up prior to the start up of the Puerto Blanco mill and expansion of the Madero smelter and the booking of $81,782 of non-operational expenses in Mexico. The 150-ton Puerto Blanco mill and Madero smelter are being supplied by more than seven antimony properties in Mexico. Besides the Los Juarez property that USAC operates, USAC has Supply Agreements on all of them with options to buy two of them. Four furnaces are being operated at the Mexican smelter, and three of them are being retrofitted for increased production. The furnaces are designed to handle low-grade antimony oxide ore which predominates in Mexico. The Mexican combination flotation and gravity mill is delivering concentrates to the smelter. The mill recovers the sulfides and some of the oxides not recoverable by flotation methods. A large pre-crusher is being installed to accommodate oversize rock from the Los Juarez property. At Los Juarez, mapping and sampling continues to further define the outcrop of jasperoid-type mineralization. Milling of Los Juarez is expected shortly after the installation of a large crusher to confirm grades, metallurgy, and mining cots. Lawrence said, “USAC plans to expand their vertically integrated operations from mine to customer by continuing to increase Mexican production. During World War II, Mexico was the second largest producer of antimony in the world despite the use of hand-sorting and crude gravity methods.” Antimony is considered a “strategic” metal by the military. It is used to harden ordnance and lead in storage batteries, antimony tri-sulfide is used for ordnance primers, and antimony trioxide is used as a flame retardant in plastics and textile items in aircraft interiors, vehicles, insulation on wires, and clothing. Currently, the Department of Defense of the United States of America (“DOD”) sources antimony from the Peoples Republic of China, the world’s dominant supplier. The Company has been asked to supply various antimony products for DOD applications to establish alternative sources. Meanwhile, the Company continues to operate in a “sold out” condition.
Forward Looking Statements:This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters related to the Company's operations, pending contracts and future revenues. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-KSB with the Securities and Exchange Commission.