A landmark $245 million, five-year supply agreement with the U.S. Defense Logistics Agency has positioned US Antimony for a significant operational expansion. The company has commenced work on increasing its antimony processing capabilities at its Thompson Falls, Montana facility, a move directly fueled by the substantial government contract.
Market Volatility Follows Major Announcement
The financial markets reacted with considerable volatility to the news of the sole-source contract. On Tuesday, the company’s stock price surged 17.8 percent, only to experience a sharp reversal the following day with an intraday decline exceeding 9 percent. This price swing, driven by technical indicators such as a “KDJ Death Cross” and heightened trading volume, reflected a wave of profit-taking from investors. The contract’s value is 16 times greater than the company’s entire 2024 revenue, representing a transformative development for the niche operator.
Strengthening Domestic Supply Chains
The expansion underscores a broader geopolitical trend focused on securing supplies of critical minerals. Antimony is classified as a critical mineral in the United States, a status amplified by China’s current dominance of the global market and its recent export restrictions. As the operator of North America’s only two antimony smelters, US Antimony is uniquely equipped to address this strategic need. Initial deliveries under the new contract are scheduled to begin this week.
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The company has been strategically preparing for this opportunity, deepening its collaboration with the Department of Defense since late 2024. This has involved a dual strategy of expanding its global ore sources and initiating new mining activities in Alaska. A strong financial foundation supports this growth; for the first half of 2025, US Antimony reported a 160 percent surge in revenue.
The official groundbreaking ceremony in Montana, attended by prominent political figures, signals a firm commitment to rapidly bringing the new capacity online. The primary challenge now facing the company is the successful and timely execution of this massive contract alongside its concurrent expansion plans.
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