US Antimony Corporation (UAMY) finds itself at a pivotal moment. Despite the resumption of mining operations in Montana and a significantly upgraded profit forecast, its shares are experiencing downward pressure. This apparent contradiction between strong operational developments and weak market performance presents a complex picture for investors.
Market Reaction Defies Strong Fundamentals
The market’s response has been notably divided. Following an initial premarket surge of 10.4%, UAMY shares retreated, closing Thursday’s session down 0.9%. The stock is currently trading at $8.35, reflecting a 24-hour decline of 8.10%. This sell-off occurs against a backdrop of impressive operational progress and a substantial market capitalization of $1.15 billion. The divergence between the company’s fundamental strength and its short-term stock performance may present a potential opportunity for investors with a long-term horizon. The question remains whether this is driven by broader market nervousness or simply profit-taking after a recent rally.
Operational Resurgence in Montana
A significant development is underway at the Stibnite-Hill Mine in Montana, where mining activities have recommenced after a hiatus exceeding four decades. Since October 2025, a mechanized exploration program utilizing an innovative “cut-and-cover” surface method has been operational. This technique is proving more efficient than the historical underground mining practices previously employed.
To date, more than 250 tons of ore have been transported for processing. Initial metallurgical testing confirms the material is of a sufficiently high grade for profitable production and may even meet stringent military specifications. A key financial consideration is that profit margins from this self-supplied ore are projected to be triple those achievable from purchasing ore from third-party suppliers.
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Strategic Financial and Operational Shifts
These operational successes are directly translating into the company’s financial outlook. US Antimony has raised its 2026 revenue projection by $25 million, establishing a new forecast of $125 million. This substantial increase underscores the company’s significant growth potential.
Concurrently, the company is expanding its smelter facilities in Thompson Falls. New furnaces are scheduled to become operational by January 2026, a timeline strategically aligned with the anticipated increase in output from the Montana mine. In a logical strategic pivot, US Antimony has terminated acquisition discussions with Larvotto Resources. This move highlights a renewed focus on internal supply chain development, rendering external purchases unnecessary.
Key Operational and Financial Highlights:
– Stibnite-Hill Mine reactivated after 40 years of dormancy
– More than 250 tons of ore currently in processing
– 2026 revenue forecast increased by $25 million to $125 million
– Self-mining operations expected to yield triple the profit margin
– Smelter expansion scheduled for completion by January 2026
– Acquisition of Larvotto Resources is no longer being pursued
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