Can UAMY's Domestic Antimony Mining Shift Gross Margins Above 60%?

United States Antimony UAMY is attempting a structural margin reset — one driven not by pricing cycles but by reclaiming its upstream supply chain. Today, UAMY operates at a 28% gross margin, weighed down by expensive and inconsistent third-party ore. But management’s message in the third-quarter 2025 call is unequivocal — domestic ore, starting in Montana and followed by Alaska, could more than double margins over time.

Montana is the near-term catalyst. Bulk sampling at Stibnite Hill is underway, with 560 tons already hauled and average grades expected to exceed 10% antimony — high-value feedstock that goes directly to UAMY’s Montana smelter. The company emphasized that “grade is king,” and visual grade control at the face is allowing operators to load only ore containing economic stibnite concentrations. If assays confirm expectations, Montana alone could materially improve blended feed quality and compress unit costs.

Alaska forms the second leg of the vertical-integration strategy. While the weather truncated 2025’s program, trenching, mapping and site preparation set up a full restart in spring 2026. The company has already purchased a 17-acre staging site in Fox to sort, crush and bag ore before shipping to Montana or Mexico, signaling readiness for scale.

Success at Mohawk or Stibnite Creek could accelerate the shift from purchased concentrates to internal supply. Meanwhile, the Ontario cobalt–nickel–tungsten portfolio offers optionality — not immediate ore, but potential diversification into additional high-value critical minerals.

Management’s target is clear — replace as much third-party feed as possible. CEO Gary Evans stated that gross margins “grow to over 60%” when UAMY processes its own ore instead of imported concentrates — a step function uplift that would reposition the company among the lowest-cost antimony producers globally. Yet, the path isn’t smooth.

Weather windows in Alaska, permitting timelines, smelter labor constraints, and logistics in remote terrain all represent tangible execution risks.

Peer Updates

Southern Copper Corporation’s SCCO third-quarter results underscored its aggressive organic growth strategy centered on multi-asset expansion across Peru and Mexico. SCCO reported steady construction progress at Tia Maria — now 23% complete with exploitation permits secured — and reaffirmed Los Chancas and Michiquillay as the next major catalysts for long-term copper volume growth.

SCCO emphasized capital outlays that could exceed $10 billion over the decade as it advances these tier-one developments while improving efficiencies at Buenavista and Toquepala. The company reiterated its focus on internal project execution over M&A as it aims to produce 1.6 million tons annually at competitive cash costs, reinforcing SCCO’s position as a top-tier integrated copper producer.

Ero Copper’s ERO third-quarter results highlighted a transformative year driven by operational turnaround and scalable growth initiatives across its Brazilian portfolio. ERO delivered sequential gains from Tucumã’s ramp-up, debottlenecking at Caraíba and major productivity enhancements at Xavantina after full mechanization.

ERO unveiled a new inferred gold-concentrate resource at Xavantina — 29,000 ounces from just 20% of stockpiles — creating a high-margin monetization stream that accelerates deleveraging. Meanwhile, ERO advanced the Furnas copper project, having completed 50,000 meters of drilling, with a preliminary economic analysis expected in early 2026. ERO’s strategy remains consistent — optimize existing mines, unlock latent value and advance Furnas as its next large-scale copper growth engine.

UAMY’s Price Performance, Valuation and Estimates

Shares of UAMY have surged 231.7% in the year-to-date period compared with a 18.3% increase for the industry.

From a valuation standpoint, UAMY trades at a forward price-to-sales ratio of 7.56, above the industry average. It trades higher than its five-year median of 3.41. UAMY carries a Value Score of F.

The Zacks Consensus Estimate for United States Antimony’s 2025 earnings implies a 150% rise from the year-ago period’s level.

The stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research