US Antimony surges after landing US$245M Pentagon supply contract

The stock has seen gains exceeding 310% since Jan. 1

Rowan Dunne

Published

2 hours ago

United States Antimony Corp (NYSEAMERICAN: UAMY) observed a 21 per cent share spike at the intraday peak during Tuesday’s trading session after revealing that it has secured a major government contract.

The U.S. Defense Logistics Agency just awarded the influential company with a US$245-million-dollar antimony ingot supply agreement. The five-year deal will see that U.S. Antimony provides bars of the metalloid for an American defense stockpile as domestic demand for the critical mineral continues to soar.

“It’s incredibly meaningful for all our employees to play such a strategic role in strengthening our nation’s defense readiness,” said Chairman Gary C. Evans, “and having the knowledge, expertise, and history that USAC can and will deliver under our contractual obligations.”

Successful finalization of the contract was spearheaded by the US antimony’s corporate development and government relations leader, Melissa Pagen.

“Her meticulous oversight and commitment to excellence ensured every stage of the process and allowed advancement to a successful close for all parties involved,” Evans explained.

US Antimony scooped the sole source supply deal because of its prominent stature in the American antimony (Sb) sector. The refiner and processor currently operates the only Sb smelter in the country and the only two in the continent.

US Antimony was selected for its capability to provide the quantity and quality of antimony ingots desired by the government. An initial shipment will be sent this week. The scale of this contract becomes clearly evident when considering that the Sb processing expert only pulled US$14.9 million in revenue last year.

Capital received will be beneficial as US antimony continues to complete its 500 per cent expansion of the Montana smelter, slated for completion by the end of the year. It is the only American source of antimony oxide, trisulfide and metal.

US Antimony’s rally has been ongoing for over 1 year

This stock has turned out to be a spectacular buy for those who bought in mid-way through 2024. It was worth a mere US$0.77 last September and is now trading for US$7.30.

US Antimony’s rally has been primarily fuelled by panic among U.S. government agencies and companies after China cut off its critical supply of the commodity. The subsequent skyrocketing price of antimony has ignited unprecedented investor interest after a long period of dormancy.

US Antimony’s newly secured contract is one shining example of the American government investing millions to curb national security fears and strengthen the domestic supply chain. The Department of Defense committing over US$80 million to the Stibnite antimony and gold project under development by Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) is another.

Perpetua just received the green light to commence construction at the past-producing site, a major leap toward fulfilling over one third of American demand for the element.

Meanwhile, U.S. mid-tiers and juniors are finding themselves in an ample position as the bullish outlook for antimony remains prevalent. They could potentially secure government funding as well in the coming months.

Americas Gold and Silver Corporation (TSE: USA) (NYSEAMERICAN: USAS) (FRA: SZ71), NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) and Military Metals Corp (CNSX: MILI) (OTCMKTS: MILIF) (FRA: QN90) are a few operators working in the country that have been having success with Sb extraction and drill campaigns.