UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)
þ
ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2015

o
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period                                                to                                                          
Commission file number 001-08675
 
UNITED STATES ANTIMONY CORPORATION
(Exact name of registrant as specified in its charter)
 
Montana
 
81-0305822
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

P.O. Box 643, Thompson Falls, Montana
59873
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code:  (406) 827-3523

Securities registered pursuant to Section 12(b) of the Act:  None

Securities registered pursuant to Section 12(g) of the Act:  Common Stock, par value $.01 per share

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ  No o
 
Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-K contained in this form and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer o Accelerated Filer o
Non-Accelerated Filer o Smaller reporting company þ
       

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No þ

The aggregate market value of the voting stock held by non-affiliates of the registrant, based on the average bid price of such stock, was $31,817,284 as of June 30, 2015.

At March 30, 2016, the registrant had 66,316,278 outstanding shares of par value $0.01 common stock.
 


 
 
 
 
 
UNITED STATES ANTIMONY CORPORATION
2014 ANNUAL REPORT

TABLE OF CONTENTS
 
1.Highlights of 2015  
·
Antimony production
4
·
Precious metal production
6
·
Zeolite production
6
2.Operations map
7
3.Chairman’s letter
8
4.Antimony operations
9
·
Antimony market
9
·
Antimony logistics
9
·
Wadley
10
·
Soyatal
11
·
Guadalupe
11
·
Puerto Blanco mill
11
·
Madero smelter.
11
·
Montana smelter
11
·
Hillgrove Mine
11
5.Precious metal operations
12
·
Los Juarez
12
·
Canadian source
12
·
Hillgrove Mines Pty. Ltd.
12
6.Zeolite operations.
12
 
PART I
 
ITEM 1.
DESCRIPTION OF BUSINESS
 
     
 
General
15
     
 
History
15
     
 
Overview-2015
15
     
 
Antimony Division
16
     
 
Zeolite Division
18
     
 
Environmental Matters
19
     
 
Employees
20
     
 
Other
 
     
ITEM 1A.
RISK FACTORS
20
     
ITEM 1B.
UNRESOLVED STAFF COMMENTS
21
     
ITEM 2.
DESCRIPTION OF PROPERTIES
21
     
 
Antimony Division
21
     
 
Zeolite Division
27
     
ITEM 3.
LEGAL PROCEEDINGS
31
     
ITEM 4.
MINE SAFETY DISCLOSURES
31
     
PART II
     
ITEM 5.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
31
     
ITEM 6.
SELECTED FINANCIAL DATA
32
 
 
 

 
 
ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
31
     
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
37
     
ITEM 7B.
CRITICAL ACCOUNTING ESTIMATES
37
     
ITEM 8.
FINANCIAL STATEMENTS
38
     
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
38
     
ITEM 9A.
CONTROLS AND PROCEDURES
38
     
ITEM 9B.
OTHER INFORMATION
39
     
PART III
     
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS AND COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
40
     
ITEM 11.
EXECUTIVE COMPENSATION
42
     
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
43
     
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
45
     
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICE
46
     
PART IV
     
ITEM 15.
EXHIBITS AND REPORTS ON FORM 8-K
46
     
SIGNATURES
50
     
CERTIFICATIONS
 
     
FINANCIAL STATEMENTS
F1 – F23

 
 

 
 
CHAIRMAN’S LETTER
 
Dear Shareholders:

In 2015, we concluded a major addition to our smelting capacity at Madero, Mexico with the addition of a large furnace (LRF) and five smaller furnaces (SRFs) to process high grade concentrates.  The additional smelting capacity enabled us to achieve record sales of antimony for the year.   Most of the plant was dedicated to processing Australian concentrates, and we processed minimal raw material from our Mexican properties. The replacement of propane with natural gas at the Madero smelter is saving 75% of the cost of fuel. We also saw a major increase in zeolite sales for 2015, setting a record for tons of zeolite sold.  During 2015, we perfected our method of recovering gold from antimony concentrates from Australia, and during the first quarter of 2016, we began selling gold to a refinery.  This process will be applicable to the concentrates from the Los Juarez mining property. Our progress in production and sales was offset by a continued slide in the price of antimony which has continued since 2011.  In 2015, we purchased the Guadalupe mining property that will produce a high-grade concentrate that can be sold to the friction brake industry or used to make ordnance. Both products will sell for premium prices. In the third quarter of 2015, Hillgrove and supply enough concentrates to Mines Pty Ltd, suspended mining operations in Australia. We were notified that they would continue milling operations keep the LRF running through the end of 2016. In addition, USAMSAS will be allowed to use the Hillgrove furnace capacity for USAC’s Mexican properties while Hillgrove explores for higher grade ore. We will ramp up production with smelter feed from Guadalupe, Wadley, Soyatal, and Los Juarez.

An all-time sales record for antimony of 2,487,321 pounds was achieved in 2015.  The gross revenue from all sources of antimony for 2015 was $9,863,933, and the loss was $1,349,934, which included $711,345 of depreciation and amortization. The loss was primarily due to:
 
  A drop in the price of antimony for the year of $0.75 per pound from $4.71 in 2014 to $3.96 in 2015.
     
  Holding costs of $1,086,440 or $0.44per pound due to 1) solving a metallurgical issue which delayed production at our Los Juarez silver-antimony-gold property and its associated Puerto Blanco mill, and 2) fixed cost agreements for mining properties that are idle until we need more raw material.
 
An all-time sales record for zeolite of 15,901 tons was achieved in 2015.  Even though the average price per ton decreased by approximately $22, we achieved record sales of $2,753,644.  The net income for zeolite was $511,403, which was after $221,441 of depreciation.

Management has been working to increase production and reduce costs as follows:

1.  
An all-out effort is being made to bring the Los Juarez gold-silver-antimony property into production.  This includes the shake-down of the leach plant at Madero and detailed flotation testing to determine whether a cyanide circuit is necessary. A shallow reconnaissance drilling program indicates a global average grade of 0.057 ounces (1.432 grams) gold, 2.43 ounces (75.24 grams) silver per metric ton, and 0.343% antimony. The gross value is $125 per ton based on gold at $1,230 per ounce, silver at $15 per ounce, and antimony at $2.45 per pound. USAC claims no reserves at Los Juarez per SEC definitions, and the drilling does not comply with Canadian NI 43-101.
2.  
We are focused on reducing the holding costs (“Mexico excess production costs”) for Los Juarez, Wadley, Soyatal, Guadalupe, and the Puerto Blanco mill, which included a write-down to market value of significant concentrates and direct shipping ore (DSO) mined in 2013 and 2014 at Wadley, Soyatal, and other properties. These costs are included in our production costs and have a severe impact on profitability.  The Mexico excess non-production costs amounted to $0.98 per pound of antimony produced in Mexico in 2015 and $1.17 per pound in 2014. When considered for the total antimony production of the Company as a whole, they amounted to $0.44 per pound in 2015 and $0.40 per pound in 2014.
 
 
4

 
 
3.  
The Mexican furnace capacity has been limited to the processing of Australian concentrates. Within 60 days, production from the Mexican properties will be resumed which will reduce the “Mexican excess production costs” and liquidate inventory.
4.  
At the Wadley, the holding costs have been reduced $69,600 per year, the mine grade is being raised from a minimum of 25% to a minimum of 35%, and the purchase price of the ore has been adjusted to a significantly lower price indexed to Rotterdam. Wadley is expected to be the largest Mexican producer of antimony by the end of this year.
5.  
The Soyatal property continues to produce 30% concentrates from legacy mine dumps that contain from 4.5 to 9% antimony. The dumps are substantial and will provide a low cost feed with no mining costs.
6.  
The Guadalupe mine has been on care and maintenance, but production will resume in the second quarter.
 
 Following is the outlook for 2016:

1.  
We are planning to increase the 2016 production of antimony with feed from Canada, Australia, and Mexico.
2.  
We hope to maintain this growth trajectory with returns from working down our Mexican concentrate inventories, the cash flow from increased antimony production, and the Bear River Zeolite profits.
3.  
A metallurgical issue related to the Los Juarez silver-antimony-gold property was solved in late 2015 that will allow us to start processing the Los Juarez concentrates in 2016.

USAC is an international, vertically-integrated company that provides antimony and zeolite from the mine to end users around the world. The Company has significant sources of raw materials and has always been a reliable domestic and international supplier.  Our mission is to dominate the domestic antimony market.

Sincerely, John Lawrence
CEO and Chairman
 
 
5

 
 
HIGHLIGHTS 2015

 
 
 
6

 
 

All-Time Record Production

Antimony Sales in Pounds
 
2011
   
2012
   
2013
   
2014
   
2015
 
USA
    1,179,973       103,114       931,789       1,141,436       1,381,971  
Mexico
    221,450       372,046       647,393       596,368       1,105,350  
Total Sale in Pounds
    1,401,423       1,403,210       1,579,182       1,727,804       2,487,321  
Total sales in Dollars
  $ 10,406,636     $ 8,753,449     $ 8,375,158     $ 8,132,410     $ 9,863,933  
Average price per pound
  $ 7.43     $ 6.24     $ 530.00     $ 4.71     $ 3.97  
 
Precious Metal Sales
 
Precious Metals Sales
                             
Silver/Gold
                             
Montana
 
2011
   
2012
   
2013
   
2014
   
2015
 
Ounces Gold Shipped (Au)
    161.71       102.32       59.74       64.77       89.12  
Ounces Silver Shipped (Ag)
    17,472.99       20,237.70       22,042.46       29,480.22       30,420.75  
Revenues
  $ 667,813     $ 647,554     $ 347,016     $ 461,083     $ 491,426  
Mexico
                                       
Ounces Gold Shipped (Au)
              1.780                  
Ounces Silver Shipped (Ag)
              1,053.240                  
Revenues
                  $ 22,690                  
                                         
Total Revenues
  $ 667,813     $ 647,554     $ 369,706     $ 461,083     $ 491,426  
 
 
7

 
 

 
BEAR RIVER ZEOLITE

ZEOLITE PRODUCTION
 
2011
   
2012
   
2013
   
2014
   
2015
 
Tons Shipped
    12,105       12,189       11,182       11,079       15,901  
Average Price Per Ton
  $ 168.83     $ 216.73     $ 196.96     $ 195.83     $ 173.17  
Gross Revenues
  $ 2,043,641     $ 2,641,699     $ 2,202,414     $ 2,169,619     $ 2,753,644  
Net Income
  $ 118,185     $ 313,442     $ 404,453     $ 304,934     $ 511,403  


 
 
8

 
 

ANTIMONY OPERATIONS

 
 
9

 
 
 
 
 
10

 
 
 
ANTIMONY MARKET

The United States used 23,600 metric tons (approximately 52,000,000 pounds) of antimony in 2015. Of this amount 35% went to metal products primarily storage batteries and ammunition: 35% went to non-metal products including rubber, glass, and ceramics; and 30% went into flame retardants. The domestic market for USAC antimony products remained strong even though global prices deteriorated in a weak economic environment. In 2013, the world-wide production was 163,000 metric tons or 359,353,516 pounds. The Chinese control more than 90% of the world supply, and pricing can be volatile. Pricing of the metal is generally based on the London Metal Exchange average price C.I.F. Rotterdam per metric ton (a metric ton contains 2,204.6 pounds). Antimony oxide contains 83.1% antimony metal and it is typically our preferred product due to its premium pricing.
 
 
11

 
 
1.
Following are the capital expenditures for 2015:
 
Division
Operation
Description
 
Amount
 
BRZ
Zeolite
VSI Line 1 construction
  $ 67,682  
BRZ
Zeolite
Caterpillar 235 Excavator
    29,831  
BRZ
Zeolite
Permitting
    15,310  
BRZ
Zeolite
Major Equipment Repairs
    83,415  
USAC Montana
Antimony and precious metals
Plant and Office Equipment
    3,728  
USAC Montana
Antimony and precious metals
Two Caterpillar Forklifts
    58,600  
USAMSA
Madero
Buildings
    1,835  
USAMSA
Madero
Capitalized interest
    4,542  
USAMSA
Madero
Permitting
    56,461  
USAMSA
Madero
Plant construction
    3,820  
USAMSA
Madero
Leach Circuit
    107,023  
USAMSA
Madero
IVA Tax on Equipment
    36,619  
USAMSA
Puerto Blanco
Buildings
    10,395  
USAMSA
Puerto Blanco
Permitting
    48,299  
USAMSA
Puerto Blanco
Leach Circuit
    1,734  
USAMSA
Puerto Blanco
500 Ton Ball Mill
    15,095  
USAMSA
Puerto Blanco
Land Payments San Miguel
    125,000  
USAMSA
Puerto Blanco
Permitting
    20,825  
USAMSA
Guadalupe
Property purchase
    1,559,615  
USAMSA
Guadalupe
Capitalized amortization
    14,591  
USAMSA
Guadalupe
Permitting
    2,502  
USAMSA
Soyatal
Permitting
    2,593  
USAMSA
Soyatal
Capitalized amortization
    42,498  
USAMSA
Wadley
Plant Improvements
    77,333  
USAMSA
Wadley
Used Truck
    1,385  
USAMSA
OTHER
Software
    4,165  
HILLGROVE
OTHER
Building construction
    44,136  
HILLGROVE
OTHER
Permiting
    4,200  
HILLGROVE
OTHER
Plant
    914,069  
HILLGROVE
OTHER
Equipment
    94,016  
        $ 3,451,317  
 
2.  
The “Mexican excess production costs” include (1) holding costs for Los Juarez, Wadley, Soyatal, Guadalupe, and the Puerto Blanco mill, and (2) the write-down of significant concentrates and direct shipping ore (DSO) mined in 2013 and 2014 at Wadley, Soyatal, and other properties. These costs are included in our production costs and have a very severe impact on profitability. In 2015, they added $1,086,440 to the costs of the production of antimony. These costs amounted to $.98 per pound of antimony production in Mexico.

WADLEY MINE AND MILL, SAN LUIS POTOSI, MEXICO

The Wadley produced more than 80% of the Madero smelter feed during 2014. During that time, and through 2015, reconfiguration and testing of the gravity mill has proceeded. Mining is by hand methods without the benefit of compressed air and explosives. At one time, Wadley was shipping up to 600 tons per month of hand sorted ore to Laredo, Texas, which amounted to approximately 5,000,000 pounds per year of antimony. For 2016, we have reduced our lease costs for Wadley by approximately $70,000 from 2015, and raised the mine grade from a minimum of 25% to a minimum of 35%.  We adjusted the purchase price to a significantly lower price indexed to the Rotterdam price for antimony. Currently, the operation is in a care and maintenance mode until we need the ore at our Madero smelter, but we expect Wadley to be the largest producer of Mexican antimony for us by the end of 2016.  Contract miners from about 100 to 120 men are available at the present time. With increased mechanization and explosives, this property could produce much more antimony for us than it has in the past. We do not claim any reserves at Wadley as defined by the SEC.
 
 
12

 

SOYATAL DISTRICT, QUERETARO, MEXICO

USAC owns the Soyatal District mines. During 2014 and 2015, Soyatal produced a small amount of DSO (direct shipping ore for the smelter) and concentrates from low grade and dumps. After sampling some of the extensive dumps, USAC has begun milling dumps in the 4.5 to 9% range with a recovery of almost 50% at our Puerto Blanco mill.  We expect the property to become a substantial producer of low cost feed. We do not claim any reserves at Soyatal as defined by the SEC.

GUADALUPE, ZACETECAS, MEXICO

The Guadalupe mining property has been on care and maintenance, but production will resume in the second quarter of 2016.  The ore from Guadalupe results in very high grade concentrate of approximately 65% to 70% antimony tri-sulfide that could be shipped to the friction-brake industry for a premium price.  We do not claim any reserves at Guadalupe as defined by the SEC.

PUERTO BLANCO OXIDE/SULFIDE MILL, GUANAJUATO, MEXICO

In 2014, the Puerto Blanco mill processed 1,284 tons of sulfide ore from Guadalupe and 1,676 tons of oxide ore from Guadalupana and 458 tons of oxide ore from Soyatal. In 2015, the mill processed legacy dump material from our Soyatal property using the oxide circuit.  This constituted less than 10% of the mill capacity. During 2015, the Puerto Blanco mill was primarily engaged in test runs of various ores to improve mineral recovery.  CAPEX expenditures in 2015 were primarily the construction of the oxide circuit, the installation of cleaner flotation cells, the design and construction of a leach circuit, and limited work on the 500 ton mill. In the second half of 2016, the mill will primarily be engaged in processing ore from our Los Juarez mining property.

MADERO SMELTER, COAHUILA, MEXICO

The Madero smelter produces very high quality antimony from Mexico. The Madero smelter has 17 small furnaces (SRF’S) and one large furnace (LRF).  The LRF and five of the SRF’s have been dedicated to processing concentrates from Australia during 2015.  A natural gas pipeline has reduced our per pound Mexican fuel costs by about 75%.  During 2015, we built and installed four SRF’s for our own use, five SRF’s and one LRF for the Hillgrove concentrate, a 100 foot stack for fume dispersion, and multiple improvements to our infrastructure.  Hillgrove has notified us that they are not mining in Australia at this time, and that we should expect that we will not receive the same amount of concentrates for 2016 that we received in 2015.  We are prepared to increase our production from our Mexican mining properties to keep the Madero smelter producing near capacity. We are presently installing a leach plant at Madero to improve the recovery of precious metals from Los Juarez concentrates.
 
MONTANA SMELTER, THOMPSON FALLS, MONTANA

The Montana smelter at the USAC corporate headquarters in Thompson Falls, Mt., processes feed from Canadian, Mexican and Australian sources, recovers precious metals, and makes finished antimony oxide and metal.  We have made substantial improvements to our precious metals recovery circuit at Thompson Falls in 2015.

HILLGROVE MINES, PTY. LTD. ARMIDALE, AUSTRALIA

USAC entered a purchase agreement with Hillgrove Mines Pty Ltd for 200 metric tons per month of 58% to 60% antimony concentrates that contain approximately 20 grams (0.64 ounces) of gold per metric ton. This amounts to approximately 3,000,000 pounds of antimony and 1,500 ounces of gold annually.  Hillgrove provided funding to USAC to expand its smelter capacity in Mexico. In 2015, we processed 53 containers with approximately 1,084 metric tons of concentrate. We had approximately 20 containers on hand at the end of 2015, and we continue to receive containers at this time.  Hillgrove has notified us that it has shut down mining in Australia, and that we will not receive concentrates once they have shipped what they have at their mill. We are recovering our processing costs, and we anticipate a 9.5% profit on sales.
 
 
13

 

PRECIOUS METALS OPERATIONS

LOS JUAREZ, QUERETARO, MEXICO

USAC has mapped and mined central parts of the mineralized zones of Los Juarez that appear to be vertical breccia pipes over a strike length of 3.5 kilometers with a maximum width of one kilometer. The mineralization is “open” on three sides and to depth.

After milling  3,500 metric tons of rock from the Mina Grande pit, the feed grade was determined to be approximately 0.789% antimony, 6.11 ounces of silver (189 grams), and 0.049 ounces of gold (1.52 grams) per metric ton.
A shallow but widespread drilling program was started in 2015 to identify the higher grade ore in the deposit. The global average based on these drill holes and rcok chip samples 0.057 ounces (1.77grams) gold, and 2.43 ounces (75.24 grams) silver, and 0.343% antimony per metric ton.  To date, less than 5% of the property has been drilled.  A leach plant was built at Madero during 2015 to treat flotation concentrates from Puerto Blanco. Following the successful operation of the 100 tons per day mill at Puerto Blanco and processing at Madero, an additional 500 ton per day mill will be completed and dedicated to Los Juarez ore at either Puerto Blanco or adjacent to the open pit at Los Juarez.  We claim no reserves at Los Juarez as defined by the SEC, and the drilling does not comply with Canadian NI 43-101.

CANADIAN SOURCE

Precious metals will be recovered from an off-take agreement with a Canadian source and are sold back to the Canadian producer at a discount.

HILLGROVE MINES PTY. LTD.

Preparations are being made at our precious metal refinery in Montana to recover gold from Hillgrove concentrate.  During the first quarter of 2016, we achieved a good recovery of precious metals from the Hillgrove concentrates, and have started delivery to a refinery.  The process being used for the Hillgrove concentrates is transferable to the Los Juarez concentrates to be made at Puerto Blanco.

ZEOLITE OPERATIONS

During 2015, BRZ sales of $2,753,644 generated a profit of $511,403. Depreciation was $221,441, and the operation contributed $732,844 (EBITDA) to corporate growth. Following are the 2015 applications of BRZ:

Application
 
Percent
by dollars
   
Percent
by tons
 
Animal feed
    41.46       30.35  
Water filtration
    18.34       20.00  
Soil amendment
    14.85       18.20  
Traction control
    9.02       11.20  
Air filtration
    8.68       12.50  
Oil and gas
    2.06       2.80  
Home and miscellaneous
    1.41       0.70  
Odor control
    1.38       1.10  
Synthetic turf
    0.83       0.80  
Absorption
    0.66       0.90  
Remediation
    0.50       0.80  
Litter
    0.35       0.30  
Distribution
    0.33       0.20  
Pest control
    0.25       0.30  
Pigment
    0.08       0.07  
Total
    100       100  
 
The oil and gas and mining industries could become a large application for BRZ zeolite used for remediation.
 
 
14

 
 
CORPORATE INFORMATION

UNITED STATES ANTIMONY CORPORATION
PO Box 643
Thompson Falls, Montana 59873
Phone: 406-827-3523 Fax: 406-827-3543
E-mail: tfl3543@blackfoot.net
NYSE MKT: TICKER SYMBOL“UAMY”
www.usantimony.com and www.bearriverzeolite.com

USAC BOARD OF DIRECTORS
·
Gary Babbitt has over 30 years experience in mining law and contracts and is a graduate of the University of Chicago.
·
John C. Lawrence, Geologist, Metallurgist graduated from the University of Wyoming and has more than 50 years of experience in oil and gas, and most phases of mining, milling, and smelting.
·
Russell C. Lawrence, Physicist graduated from the University of Idaho where he worked in the Physics Department and later in all phases of construction.
·
Hart W. Baits, Geologist graduated from the University of Oregon and has more than 30 years of experience as an exploration geologist with Western Gold Exploration and Mining Company, Inspiration Mining, Inc., Noranda, Anaconda Mining Company, McMaster University, and Bear Creek Mining Company.
·
Whitney H. Ferer, Commodities Trader attended Colorado College and worked for 38 years in a 128-year old family owned trading company, Aaron Ferer & Sons Co.
·
Jeffrey D. Wright.  Mr. Wright graduated from North Carolina University in 1991, and from the University of Southern California, Marshall School of Business (MBA) in 2004.  From 2011 through 2013 he was the managing director metals and mining research for Global Hunter Securities, and he held the same position for H.C. Wainwright for 2013 through 2015.

CORPORATE OFFICERS
·
John Lawrence: President and CEO
·
Russell C. Lawrence: Chemist, Executive Vice President Latin America
·
John C. Gustavsen:  Executive Vice President North America graduated from Rutgers and worked for Harshaw Chemical Company where he became President and produced more than 25,000,000 pounds per year of antimony oxide.
·
Dan Parks: CPA, CFO graduated from University of Idaho and worked for Coopers and Lybrand, Pack River Lumber, and more than 30 years in his own accounting office.
·
Matt Keane: Director Sales graduated from Mankato State University and was a building contractor and the owner of a building supply business.
·
Alicia Hill: Corporate Secretary, Treasurer, and Controller

CORPORATE COUNSEL
·
Paul Boyd, Stoel Rives, LLP, has practiced corporate and securities law for more than 30 years. He received his undergraduate degree from Stanford University and his law degree from Georgetown.
 
 
15

 
 
MEXICAN COUNSEL
·
Lexcorp Abogados

AUDITORS
·
Decoria, Maichel, & Teague

MEXICAN ACCOUTANTS
·
Ceballos Contadores

TRANSFER AGENT
·
Columbia Stock Transfer Company

HEADQUARTRERS, MONTANA.
·
Marilyn Sink: Plant Manager
·
Lance Sink: Assistant Manager
·
Matt Keane: Director Sales
·
Tony Lyght: Maintenance Foreman

MADERO SMELTER, COAHUILA MEXICO
·
Russell C. Lawrence: Director
·
Luis Valeriio Delgado: Smelter Manager
·
Sixto Beserra: Chemist Smelter

PUERTO BLANCO MILL, GUANAJUATO, MEXICO
·
Jose Jesus Heriberto Torres Montes: Mill Manager & Ore Buyer

LOS JUAREZ GROUP, QUERETARO, MEXICO
·
Reynaldo Angles: Mine Manager Los Juarez

WADLEY, SAN LUIS POTOSI, MEXICO
·
Jesus Loera Rocha:  Office Manager
·
Salvador Lora Garcia:  Mill Manager
·
Juanito Rocha Candelario: Chief Ore Buyer
·
Antonio Rocha Medina: Mine Manager

MEXICAN SUPPORT TEAM
·
Leo Jackson:  Transportation, Negotiations
·
Sergio Rebolledo Mota: Permitting

BRZ ZEOLITE MINE, PRESTON, IDAHO
·
Sara Lee Larso: General Manager
·
Juan Sanchez: Plant Manager
·
Dave Cole: Mine Manager

BRZ ZEOLITE SALES CANADA
·
Brian Preddy: Lethbridge, Alberta, Ca.(403-715-0321)
 
 
16

 
 
Item 1.  Description of Business

General
 
Explanatory Note: As used in this report, the terms "we," "us" and "our" are used to refer to United States Antimony Corporation and, as the context requires,
its management.
 
Some of the information in this Form 10-K contains forward-looking statements that involve substantial risks and uncertainties.  You can identify these statements by forward-looking words as "may," "will," "expect," "anticipate," "believe," "estimate" and "continue," or similar words.  You should read statements that contain these words carefully because they:
 
·
discuss our future expectations;
 
 
·
contain projections of our future results of operations or of our financial condition; and
 
 
·
state other "forward-looking" information.
 
History
 
United States Antimony Corporation, or USAC, was incorporated in Montana in January 1970 to mine and produce antimony products.  In December 1983, we suspended antimony mining operations but continued to produce antimony products from domestic and foreign sources. In April 1998, we formed United States Antimony SA de CV or USAMSA, to mine and smelt antimony in Mexico.  Bear River Zeolite Company or BRZ, was incorporated in 2000, and it is mining and producing zeolite in southeastern Idaho.  On August 19, 2005, USAC formed Antimonio de Mexico, S. A. de C. V. to explore and develop antimony and silver deposits in Mexico. Our principal business is the production and sale of antimony, silver, gold, and zeolite products. On May 16, 2012, we started trading on the NYSE MKT under the symbol UAMY.

Overview

Antimony Sales
 
Although the volume of antimony sold (metal contained) increased 44% to 2,487,321 pounds in 2015 from 1,727,804 pounds in 2014, a decrease in the average sales price of antimony (metal contained basis) of approximately $0.75 per pound saw our gross sales of antimony increase by only $1,731,523 (21%).  Our loss from antimony decreased from a loss of $1,926,126 in 2014 to a loss of $1,349,934 in 2015, a decrease of 30%. During 2015, the increase in sales of our antimony products (approximately 760,000 lbs) from 2014 was due to an increase in volume of raw material received from our Canadian supplier and from concentrates received from Hillgrove Mines of Australia. For our Mexican operations, we processed and sold approximately 907,000 pounds of antimony from Hillgrove Mines, and approximately 198,000 pounds from our Mexican properties. The raw material received from our Mexican properties decreased from approximately 586,000 lbs in 2014 to 198,000 pounds in 2015 because our furnace capacity was being used to process concentrates form Hillgrove.
 
Zeolite Sales
 
Our sales volume of zeolite in 2015 was 4,822 tons more than we sold in 2014, an increase of 44%.  Our average sales price decreased by approximately $22 per ton, from $195.83 per ton to $173.17 per ton, a decrease of approximately 11%.  The decrease in price was primarily due to sales of higher volume, lower priced products.  During 2015, total sales of zeolite increased approximately $584,000 from 2014, and the profit increased from $330,671 in 2014 to $511,403 in 2015.
 
 
17

 
 
Precious Metals Sales
 
Precious Metals Sales
                             
Silver/Gold
                             
Montana
 
2011
   
2012
   
2013
   
2014
   
2015
 
Ounces Gold Shipped (Au)
    161.71       102.32       59.74       64.77       89.12  
Ounces Silver Shipped (Ag)
    17,472.99       20,237.70       22,042.46       29,480.22       30,420.75  
Revenues
  $ 667,813     $ 647,554     $ 347,016     $ 461,083     $ 491,426  
Mexico
                                       
Ounces Gold Shipped (Au)
              1.780                  
Ounces Silver Shipped (Ag)
              1,053.240                  
Revenues
                  $ 22,690                  
                                         
 Total Revenues
  $ 667,813     $ 647,554     $ 369,706     $ 461,083     $ 491,426  
 
Antimony Division

Our antimony smelter and precious metals plant is located in the Burns Mining District of Sanders County, Montana, approximately 15 miles west of Thompson Falls, MT. We hold 2 patented mill sites where the plant is located.  We have no "proven reserves" or "probable reserves" of antimony, as these terms are defined by the Securities and Exchange Commission.  Environmental restrictions preclude mining at this site.

Mining was suspended in December 1983, because antimony could be purchased more economically from foreign sources.

For 2015, and since 1983, we relied on foreign sources for raw materials, and there are risks of interruption in procurement from these sources and/or volatile changes in world market prices for these materials that are not controllable by us.  We have developed sources of antimony in Mexico but we are still depending on foreign companies for raw material in the future. We expect more raw materials from our own properties for 2016 and later years. We continue working with suppliers in North America, Central America, Europe, Australia, and South America.

We currently own 100% of the common stock, equipment, and the leases on real property of United States Antimony, Mexico S.A. de C.V. or USAMSA, which was formed in April 1998.  We currently own 100% of the stock in Antimony de Mexico SA de CV (AM) which owns the San Miguel concession of the Los Juarez property.  USAMSA has three divisions (1) the Madero smelter in Coahuila that started expanded operations in late 2012, (2) the Puerto Blanco flotation mill and oxide circuit in Guanajuato that started operating on a test basis in late 2012 and is ramping up for 2016, and (3) mining properties that include the Los Juarez mineral deposit with concessions in Queretaro, the Wadley mining concessionin San Lis Potosi, the Soyatal deposits in Queretaro, and the Guadalupe properties in Zacatecas.

In our existing operations in Montana, we produce antimony oxide, sodium antimonate, antimony metal, and precious metals.  Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper.  Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethelene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains.  Sodium antimonate is primarily used as a fining agent (degasser) for glass in cathode ray tubes and as a flame retardant.  We also sell antimony metal for use in bearings, storage batteries and ordnance.

We estimate (but have not independently confirmed) that our present share of the domestic market and international market for antimony oxide products is approximately 4% and less than 1%, respectively.  We are the only significant U.S. producer of antimony products, while China supplies 92% of the world antimony demand.  We believe we are competitive both domestically and world-wide due to the following:
 
 
18

 
 
·
We have a reputation for quality products delivered on a timely basis.
·
We are a non-Chinese producer of antimony products.
·
We have two of the three operating antimony smelters in North and Central America.
·
We are the sole domestic producer of antimony products.
·
We can ship on short notice to domestic customers.
·
We are vertically integrated, with raw materials from our own mines, mills, and smelter in Mexico, along with the raw materials from exclusive supply agreements we have with numerous ore and raw material suppliers.
·
As a vertically integrated company, we will have more control over our raw material costs.

Following is a five year schedule of our antimony sales:
 
Schedule of Antimony Sales
 
   
Metal
         
Average
 
Year
 
Contained
    $    
Price/Lb
 
2015
    2,487,321     $ 9,863,933     $ 3.97  
2014
    1,727,804     $ 8,132,410     $ 4.71  
2013
    1,579,182     $ 8,375,158     $ 5.30  
2012
    1,403,210     $ 8,753,449     $ 6.24  
2011
    1,401,423     $ 10,406,636     $ 7.43  
 
Concentration of Sales:

During the two years ended December 31, 2015, the following sales were made to our three largest customers:
 
Sales to Three
 
For the Year Ended
 
Largest Customers
 
December 31, 2015
   
December 31, 2014
 
Alpha Gary Corporation
  $ 3,142,586     $ 3,289,766  
East Penn Manufacturing Inc
    1,236,250       720,966  
General Electric
               
Kohler Corporation
    1,736,914       2,091,565  
Polymer Products Inc.
    -       -  
    $ 6,115,750     $ 6,102,297  
% of Total Revenues
    46.65 %     56.45 %
 
While the loss of one of our three largest customers would be a problem in the short term, we have numerous requests from potential buyers that we cannot fill, and we could quickly, in the present market conditions, be able to replace the lost sales.  Loss of all three of our largest customers would be more serious and may affect our profitability.

Marketing: We employ full-time marketing personnel and have negotiated various commission-based sales agreements with other chemical distribution companies.

Antimony Price Fluctuations: Our operating results have been, and will continue to be, related to the market prices of antimony metal, which have fluctuated widely in recent years.  The volatility of prices is illustrated by the following table, which sets forth the average prices of antimony metal per pound, as reported by sources deemed reliable by us.

   
USA
   
Rotterdam
 
   
Average
   
Average
 
Year
 
Price/Lb
   
Price/Lb
 
2015
  $ 3.41     $ 3.32  
2014
  $ 4.40     $ 4.31  
2013
  $ 4.73     $ 4.78  
2012
  $ 5.86     $ 5.71  
2011
  $ 6.97     $ 7.05  
 
 
19

 
 
A six year price range of our sales prices for antimony oxide and antimony metal, per pound, was as follows:

   
Oxide
   
Metal
   
Combined
 
   
Average
   
Average
   
Average
 
Year
 
Price/Lb
   
Price/Lb
   
Price/Lb
 
2015
  $ 3.34     $ 3.71     $ 3.97  
2014
  $ 4.00     $ 4.18     $ 4.71  
2013
  $ 4.41     $ 4.69     $ 5.30  
2012
  $ 5.14     $ 5.58     $ 6.24  
2011
  $ 6.16     $ 7.42     $ 7.43  
2010
  $ 3.67     $ 4.42     $ 4.34  
 
Antimony metal prices are determined by a number of variables over which we have no control.  These include the availability and price of imported metals, the quantity of new metal supply, and industrial and commercial demand.  If metal prices decline and remain depressed, our revenues and profitability may be adversely affected.

We use various antimony raw materials to produce our products.  We currently obtain antimony raw material from sources in North America, Mexico, Europe, South America, Central America, and Australia.

Zeolite Division

We own 100% of Bear River Zeolite Company, (BRZ), an Idaho corporation that was  incorporated on June 1, 2000.  BRZ has a lease with Webster Farm, L.L.C. that entitles BRZ to surface mine and process zeolite on property located near Preston, Idaho, in exchange for a royalty payment.  In 2010 the royalty was adjusted to $10 per ton sold.  The current minimum annual royalty is $60,000.  In addition, BRZ has more zeolite on U.S. Bureau of Land Management land.  A company controlled by the estate of Al Dugan, a significant stockholder and, as such, an affiliate of USAC, receives a payment equal to 3% of net sales on zeolite products. William Raymond and Nancy Couse are paid a royalty that varies from $1 to $5 per ton.  On a combined basis, royalties vary from 8%-13%.   BRZ has constructed a processing plant on the property and it has improved its productive capacity. In addition to a large amount of fully depreciated equipment that has been transferred from the USAC division, we have spent approximately $3,712,000 to purchase and construct the processing plant as of December 31, 2015.

We have no "proven reserves" or "probable reserves" of zeolite, as these terms are defined by the Securities and Exchange Commission.

"Zeolite" refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice.  Water is loosely held in cavities in the lattice.  BRZ zeolite is regarded as one of the best zeolites in the world due to its high CEC of approximately 180 meq/100 gr., its hardness and high clinoptilolite content, its absence of clay minerals, and its low sodium content.   BRZ's zeolite deposits’ characteristics which the mineral useful for a variety of purposes including:

 
·
Soil Amendment and Fertilizer.  Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops
 
 
·
Water Filtration.  Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, fisheries, fish farms, and aquariums.
 
 
·
Sewage Treatment.  Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms.
 
 
·
Nuclear Waste and Other Environmental Cleanup.  Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution.  Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.
 
 
20

 
 
 
·
Odor Control.  A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure.  The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor.
 
 
·
Gas Separation.  Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fish ponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems and animal waste treatment facilities.
 
 
·
Animal Nutrition.  Feeding up to 2% zeolite increases growth rates, decreases conversion rates, prevents worms, and increases longevity.
 
 
·
Miscellaneous Uses.  Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner and carriers for insecticides, pesticides and herbicides.
 
Environmental Matters

Our exploration, development and production programs conducted in the United States are subject to local, state and federal regulations regarding environmental protection.  Some of our production and mining activities are conducted on public lands.  We believe that our current discharge of waste materials from our processing facilities is in material compliance with environmental regulations and health and safety standards.  The U.S. Forest Service extensively regulates mining operations conducted in National Forests.  Department of Interior regulations cover mining operations carried out on most other public lands.  All operations by us involving the exploration for or the production of minerals are subject to existing laws and regulations relating to exploration procedures, safety precautions, employee health and safety, air quality standards, pollution of water sources, waste materials, odor, noise, dust and other environmental protection requirements adopted by federal, state and local governmental authorities.  We may be required to prepare and present data to these regulatory authorities pertaining to the effect or impact that any proposed exploration for, or production of, minerals may have upon the environment.  Any changes to our reclamation and remediation plans, which may be required due to changes in state or federal regulations, could have an adverse effect on our operations.  The range of reasonably possible loss in excess of the amounts accrued, by site, cannot be reasonably estimated at this time.

We accrue environmental liabilities when the occurrence of such liabilities is probable and the costs are reasonably estimable. The initial accruals for all our sites are based on comprehensive remediation plans approved by the various regulatory agencies in connection with permitting or bonding requirements. Our accruals are further based on presently enacted regulatory requirements and adjusted only when changes in requirements occur or when we revise our estimate of costs to comply with existing requirements. As remediation activity has physically commenced, we have been able to refine and revise our estimates of costs required to fulfill future environmental tasks based on contemporaneous cost information, operating experience, and changes in regulatory requirements. In instances where costs required to complete our remaining environmental obligations are clearly determined to be in excess of the existing accrual, we have adjusted the accrual accordingly. When regulatory agencies require additional tasks to be performed in connection with our environmental responsibilities, we evaluate the costs required to perform those tasks and adjust our accrual accordingly, as the information becomes available. In all cases, however, our accrual at year-end is based on the best information available at that time to develop estimates of environmental liabilities.

Antimony Processing Site

We have environmental remediation obligations at our antimony processing site near Thompson Falls, Montana ("the Stibnite Hill Mine Site").  We are under the regulatory jurisdiction of the U.S. Forest Service and subject to the operating permit requirements of the Montana Department of Environmental Quality. At December 31, 2014 and 2015, we have accrued $100,000 to fulfill our environmental responsibilities.

BRZ

During 2001, we recorded a reclamation accrual for our BRZ subsidiary, based on an analysis performed by us and reviewed and approved by regulatory authorities for environmental bonding purposes.  The accrual of $7,500 represents the our estimated costs of reclaiming, in accordance with regulatory requirements, the acreage disturbed by our zeolite operations remains unchanged at December 31, 2015.
 
 
21

 

General

Reclamation activities at the Thompson Falls Antimony Plant have proceeded under supervision of the U.S. Forest Service and Montana Department of Environmental Quality.  We have complied with regulators' requirements and do not expect the imposition of substantial additional requirements.

We have posted cash performance bonds with a bank and the U.S. Forest Service in connection with our reclamation activities.

We believe we have accrued adequate reserves to fulfill our environmental remediation responsibilities as of December 31, 2015.  We have made significant reclamation and remediation progress on all our properties over thirty years and have complied with regulatory requirements in our environmental remediation efforts.

Employees

As of December 31, 2015, we employed 27 full-time employees in Montana.  In addition, we employed 16 people at our zeolite plant in Idaho, and more than 40 employees at our mining, milling and smelting operation in Mexico.  The number of full-time employees may vary seasonally.  None of our employees are covered by any collective bargaining agreement.

Other

We hold no material patents, licenses, franchises or concessions, however we consider our antimony processing plants proprietary in nature.

We are subject to the requirements of the Federal Mining Safety and Health Act of 1977, the Occupational Safety and Health Administration's regulations, requirements of the state of Montana and the state of Idaho, federal and state health and safety statutes and Sanders County, Montana and Franklin County, Idaho health ordinances.

Item 1A   Risk Factors

There may be events in the future that we are not able to accurately predict or over which we have no control.  The risk factors listed below, as well as any cautionary language in this report, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements.

If we were liquidated, our common stockholders could lose part, or all, of their investment.

In the event of our dissolution, the proceeds, if any, realized from the liquidation of our assets will be distributed to our stockholders only after the satisfaction of the claims of our creditors and preferred stockholders.  The ability of a purchaser of shares to recover all, or any portion, of the purchase price for the shares, in that event, will depend on the amount of funds realized and the claims to be satisfied by those funds.

We may have unasserted liabilities for environmental reclamation.

Our research, development, manufacturing and production processes involve the controlled use of hazardous materials, and we are subject to various environmental and occupational safety laws and regulations governing the use, manufacture, storage, handling, and disposal of hazardous materials and some waste products. The risk of accidental contamination or injury from hazardous materials cannot be completely eliminated.  In the event of an accident, we could be held liable for any damages that result and any liability could exceed our financial resources.  We also have one ongoing environmental reclamation and remediation projects at our current production facility in Montana.  Adequate financial resources may not be available to ultimately finish the reclamation activities if changes in environmental laws and regulations occur, and these changes could adversely affect our cash flow and profitability.  We do not have environmental liability insurance now, and we do not expect to be able to obtain insurance at a reasonable cost.  If we incur liability for environmental damages while we are uninsured, it could have a harmful effect on our financial condition and results of operations. The range of reasonably possible losses from our exposure to environmental liabilities in excess of amounts accrued to date cannot be reasonably estimated at this time.

 
22

 
 
We have accruals for asset retirement obligations and environmental obligations.

We have accruals totaling $260,327 on our balance sheet at December 31, 2015, for our environmental reclamation responsibilities and estimated asset retirement obligations. If we are not able to adequately perform these activities on a timely basis, we could be subject to fines and penalties from regulatory agencies.

Item 1B   Unresolved Staff Comments

There are no unresolved staff comments from the Securities and Exchange Commission at December 31, 2015.

Item 2 Description of Properties

Antimony Division

Our antimony smelter and precious metals plant is located in the Burns Mining District, Sanders County, Montana, approximately 14 miles west of Thompson Falls on Montana Highway 471. This highway is asphalt, and the property is accessed by cars and trucks. The property includes two five-acre patented mill sites that are owned in fee-simple by us. The claims are U. S. Antimony Mill Site No. 1 (Mineral Survey 10953) and U. S. Antimony Mill Site No. 2 (Mineral Survey 10953).  We have been paying Sanders County property taxes on three patented mill site claims in the Burns Mining District of Montana since 1969 when we purchased the original block of claims. USAC was the registered owner of the claims at the Sanders County Courthouse.  The claims include the Station Mill Site (4.994 acres), Excelsior Mill Site (4.972 acres), and the Mammoth Mill Site (5.000 acres) Patent Survey No. 9190A. We discovered that the BLM cancelled the patents on January 12, 2000, because “the claims were not filed with the BLM in accordance with the FLPMA and are deemed to be abandoned and void by operation of law.” Neither we, nor the Sanders County Court House, were ever notified of this decision, and we continue to pay taxes. Although we do not believe that this taking is valid, it does not have a substantial impact on us or our results of operations.

The U. S. Antimony Mill Sites were used to run a flotation mill and processing plant for antimony that we mined on adjacent claims that have been sold. Presently, we run a smelter that includes furnaces of a proprietary design to produce antimony metal, antimony oxide, and various other products. We also run a precious metals plant. The facility includes 6 buildings and our main office. There are no plans to resume mining on the claims that have been sold or abandoned, although the mineral rights have been retained on many of the patented mining claims. The U. S. Forest Service and Montana Department of Environmental Quality have told us that the resumption of mining would require an Environmental Impact Statement, massive cash bonding, and would be followed by years of law suits. The mill site is serviced with three-phase electricity from Northwest Power, and water is pumped from a well.

We claim no reserves on any of these properties.
 
 
 
23

 
 
 
Antimony mining and milling operations in the U.S. were curtailed during 1983 due to continued declines in the price of antimony.  We are currently purchasing foreign raw antimony materials and producing our own raw materials from our properties in Mexico.  We continue to produce antimony metal, oxide, sodium antimonite, and precious metals from our processing facility near Thompson Falls, Montana.


MINERAL PROPERTIES
LOS JUAREZ GROUP
 
We hold properties that are collectively called the “Los Juarez” property, in Queretaro, as follows:
 
1.  
San Miguel I and II are being purchased by a USAC subsidiary, Antimonio de Mexico, S. A. de C. V (AM), for $1,480,500. To date, we have paid $1,415,500 on the property, and have incurred significant permitting costs. The property consists of 40 hectares.
2.  
San Juan I and II are concessions owned by AM and include 466 hectares.
3.  
San Juan III is held by a lease agreement by AM in which we will pay a 10% royalty, based on the net smelter returns from another USAC Mexican subsidiary, named United States Antimony Mexico, S. A. de C. V. or USAMSA.  It consists of 214 hectares.
   

The concessions collectively constitute 720 hectares. The claims are accessed by roads that lead to highways.

 
 
24

 


 
 
25

 
 
Part of the USAC Mexican property, including San Miguel I, II and part of San Juan III, was originally drilled by the Penoles Company in 1970, when antimony metal prices were high. They did not proceed with the property, due to the complex metallurgy of antimony. Subsequently, the Mexican Government did additional work and reported a deposit of mineralized material of 1,000,000 metric tons (mt) grading 1.8% antimony and 8.1 ounces of silver per metric ton (opmt) in Consejo de Recursos  Minerales (Publicacion M-4e). Such a report does not qualify as a comprehensive evaluation, such as a final or bankable feasibility study that concludes legal and technical viability, and economic feasibility.  The Securities and Exchange Commission does not recognize this report, and we claim no reserves.

The mineralized zone is a classic jasperoid-type deposit in the Cretaceous El Doctor Limestone. The mineralization is confined to silicified jasperiod pipes intruded upwards in limestone. The zone strikes north 70 degrees west. The dimension of the deposit is still conjectural. However, the strike length of the jasperoid is more than 3,500 meters. 

The mineralization is typically very fine-grained stibnite with silver and gold.  It is primarily sulfide in nature due to its encapsulation in silica. The mining for many years will be by open pit methods. Eventually it will be by underground methods. At the present time, mining has included hauling dump rock and rock from mine faces.

 
26

 
 
SOYATAL MINING DISTRICT, PINAL DE AMOLES, QUERETARO, MEXICO
 
Soyatal

On October 30, 2009, the Company entered into a supply agreement with the owners of the Soyatal concessions similar to that of Guadalupe. During the term of the supply agreement the Company funded certain of Soyatal’s equipment purchases, tax payments, labor costs, milling and trucking costs, and other expenses incurred in the Soyatal mining operations for approximately $140,000. In addition to the advances for mining costs, the Company purchased antimony ore from Soyatal that failed to meet agreed upon antimony metal recoveries and resulted in approximately $320,000 of excess advances paid to Soyatal. On April 4, 2012, the Company negotiated an option to purchase the Soyatal properties for $1,500,000, and made a deposit on the option of $55,000.

On August 5, 2013, the Company notified the owners of Soyatal that it was exercising the option to purchase the Soyatal property. The option exercise agreement allowed the Company to apply all amounts previously due the Company (the “Purchase Price Credits”) by Soyatal of $420,411 to the purchase price consideration. At December 31, 2013, the Company had Purchase Price Credits of approximately $325,000 which can be used as payments on the obligation at the rate of $100,000 per year until gone.  The Company is obligated to make payments of $200,000 annually through 2020, and a final payment of $100,000 is due in 2021.  The debt payable for the Soyatal mine is non-interest bearing. In 2013, the Company recorded the debt and the related Soyatal mine asset by determining the net present value of the contractual stream of payments due using a 6% discount rate. The resulting discount on the Soyatal debt was approximately $212,000 at December 31, 2013, and is netted against the debt payable resulting in a discounted amount of $762,541 at December 31, 2013. The discount is being amortized to interest expense using the effective interest method over the life of the debt.

During 2014 and 2015, $45,752 and $88,250 of the discount was amortized to the Soyatal debt, resulting in a discounted amount owed of $820,272 and a remaining debt discount of approximately $123,798 at December 31, 2015.  The Company agreed to pay the Soyatal debt holder $100,000 during 2014 as part of the down payment agreement, and at December 31, 2015, this debt had been paid.  The Company did not make the $100,000 payment due in January of 2015.  The Company has been making payments of $5,000 per month that have been informally agreed to by the parties while the future payment terms of the Soyatal debt are negotiated.  These payments have been recorded as reductions of long term debt.

Reportedly, the Soyatal District was the third largest producer of antimony in Mexico. U. S. Geological Survey Bulletin 960-B, 1948, Donald E. White, Antimony Deposits of Soyatal District, State of Queretaro, Mexico records the production from 1905-1943 at 25,600 tons of antimony metal content. In 1942, the mines produced ore containing 1,737 tons of metal, and in 1943, they produced ore containing 1,864 tons of metal. This mining was performed primarily all by hand labor, with no compressors or trammers, and the ore was transported by mules, in sacks, to the railroad. Recoveries were less than 40% of the values. Mining continued throughout World War II.

Mr. White remarks p. 84 and 85, “In the Soyatal Mines, as in practically all antimony mines, it is difficult to estimate the reserves, for the following reasons:
 
·
The individual deposits are so extremely irregular in size, shape, and grade that the amount of ore in any one of them is unknown until the ore has been mined.
·
As only the relatively high grade shipping ore is recovered, the ore bodies are not systematically sampled and assayed…The total reserves are thus unknown and cannot be estimated accurately, but they probably would suffice to maintain a moderate degree of activity in the district for at least 10 years. The mines may even contain enough ore (mineralized deposit) to equal the total past production.”

Minimal ore, primarily through hand mining and sorting methods, has continued at the Soyatal properties since 1943.  We do not claim any reserves at Soyatal as defined by the SEC.

 
27

 
 
USAMSA PUERTO BLANCO FLOTATION MILL, GUANAJUATO, MEXICO

During the fourth quarter of 2014, cleaner flotation machines were added the flotation mill at San Luis de la Paz (Puerto Blanco), Guanajuato, Mexico. All of the permits to construct and operate the plant have been obtained. The flotation plant has a capacity of 140 metric tons per day. It includes a 30” x 42” jaw crusher, a 4’x 8’ double- deck screen, a 36” cone crusher, an 8’x 36” Harding type ball mill, and eight No. 24 Denver sub A type flotation machines, an 8’ disc filter, front end loaders, tools and other equipment. The flotation circuit is used for the processing of rock from Los Juarez, Guadalupe, and other properties.  We are in the process of installing a 400 to 450 metric tons per day flotation mill that will be dedicated to processing ore from our Los Juarez property. The crushing equipment currently in place is adequate for both flotation mills. 2014, less than 10% of the mill’s capacity was utilized. An oxide circuit was added to the plant in 2013 and 2014 to mill oxide ores from Soyatal and other properties. It includes a vertical shaft impactor, 3 ore bins, 8 conveyors, a 4’ x 6’ high frequency screen, jig, 8 standard concentrating tables, 5 pumps, sand screw and two buildings. The capacity of the oxide circuit is 50 tons per day.

USAMSA MADERO SMELTER, ESTACION MADERO, PARRAS DE LA FUENTE, COAHUILA, MEXICO.
 
USAC, through its wholly owned subsidiary, USAMSA, owns and operates a smelting facility at Estacion Madero, in the Municipio of Parras de la Fuente, Coahuila, Mexico. The property includes 13.48 hectares. Seventeen small rotating  furnaces (SRF’s) and one large rotating furnace (LRF) with an associated stack and scrubber were permitted and installed by the end of 2015. Other equipment includes cooling ducting, dust collectors, scrubber, laboratory, warehouse, slag vault, stack, jaw crusher, screen, hammer mill, and a 3.5’ x 8’ rod mill. The plant has a feed capacity of five to six metric tons of direct shipping ore or concentrates per day, depending on the quality of the feedstock.  If the feedstock is in the mid-range of 45% antimony, the smelter could produce approximately 1.8 MM lbs of contained antimony annually. Concentrates from our flotation plant, and hand-sorted ore from Mexico sources and other areas, are being processed. The Madero production is shipped to our Montana plant to produce finished Antimony products and other derivative by-products. Access to the plant is by road and railroad. Set forth below are location maps:


 
28

 
 
ZEOLITE DIVISION

Location

This property is located in the southeast corner of Idaho, approximately seven miles east of Preston, Idaho, 34 miles north of Logan, Utah, 79 miles south of Pocatello, Idaho, and 100 miles north of Salt Lake City, Utah.

The mine is located in the N ½ of section 10 and the W ½ of section 2, section 3, and the E ½ section 4, Township 15, Range 40 East of the Boise Meridian, Franklin County, Idaho. The plant and the initial pit are located on the Webster Farm, L.L.C., which is private land.

Transportation

The property is accessed by seven miles of paved road and about l mile of gravel road from Preston, Idaho. Preston is near the major north-south Interstate Highway 15 to Salt Lake City or Pocatello.

Several Union Pacific rail sidings may be available to the mine. Bonida is approximately 25 miles west of the mine and includes acreage out of town where bulk rock could be stored, possibly in existing silos or on the ground. Three-phase power is installed at this abandoned site.  Finished goods can also be shipped from the Franklin County Grain Growers feed mill in the town of Preston on the Union Pacific Railroad.

The Burlington Northern Railroad can be accessed at Logan, Utah.
 
 Location Map
 
 
 
29

 

 
Property and Ownership

BRZ leases 320 acres from the Webster Farm, L.L.C. The term of the lease is 15 years and it began on March 1, 2010. This includes the mill site and zeolite in the area of the open pit. The property is the NW ¼ and W ½ of the SW ¼ of section 3 and the N ½ of the W ¼ of section 10, Township 15 South, Range 40 East of the Boise Meridian, Franklin County, Idaho. The lease requires a payment of $10.00 per ton plus an additional annual payment of $10,000 on March 1st of each year. In addition, there are two other royalty holders. Nick Raymond and the estate of George Desborough each have a graduated royalty of $1.00 per ton to $5.00 per ton, depending on the sale price.
 
The balance of the property is on Bureau of Land Management property and includes 480 acres held by 24, 20-acre Placer claims. Should we drop our lease with Webster Farms LLC., we will retain these placer claims as follows:

BRZ 1        IMC 185308
BRZ 20      IMC 186183
BRZ 2        IMC 185309 BRZ 21      IMC 186184
BRZ 3        IMC 185310 BRZ 22      IMC 186185
BRZ 4        IMC 185311 BRZ 23      IMC 186186
BRZ 5        IMC 185312 BRZ 24      IMC 186187
BRZ 6        IMC 185313 BRZ 25      IMC 186188
BRZ 7        IMC 185314 BRZ 26      IMC 186189
BRZ 8        IMC 185315 BRZ 27      IMC 186190
BRZ 9        IMC 185316 BRZ 28      IMC 186191
BRZ 10      IMC 185317 BRZ 29      IMC 186192
BRZ 11      IMC 185318 BRZ 30      IMC 186193
BRZ 12      IMC 185319
BRZ 31      IMC 186194
 
 
30

 

 


Geology

The deposit is a very thick, sedimentary deposit of zeolitized volcanic ash of Tertiary age known as the Salt Lake Formation. The sedimentary interval in which the clinoptilolite occurs is more than 1000 feet thick in the area. Thick intervals of the zeolite are separated by thin limestone and sandstone beds deposited in the freshwater lake where the volcanic ash accumulated.

The deposit includes an 800- foot mountain. Zeolite can be sampled over a vertical extent of 800 feet and on more than 700 acres. The current pit covers more than 3 acres.  Despite the apparent size of the deposit, we claim no reserves.
 
 
31

 
 
Exploration, Development, and Mining

Exploration has been limited to the examination and sampling of surface outcrops and mine faces.

Mining Methods

Depending on the location, the zeolite is overlain by 1 to 12 feet of zeolite-rich soil. On the ridges, the cover is very little, and in the draws the soil is thicker. The overburden is stripped using a tractor dozer, currently a Caterpillar D-8K. It is moved to the toe of the pit, and will eventually be dozed back over the pit for reclamation.

Although near-surface rock is easily ripped, it is more economical to drill and blast it.  Breakage is generally good. Initial benches were 20 to 30 foot, and each bench is accessed by a road.

Haulage is over approximately 4,000 foot of road on an uphill grade of 2.5% to the mill. On higher benches, the grade will eventually be downhill. Caterpillar 769 B rock trucks are being used. They haul 18 to 20 tons per load, and the cycle time is about 30 minutes.

With the trucks and the other existing equipment, the mine is capable of producing 80 tons per hour. 
 
MILLING

Primary Crusher

The primary crushing circuit is a conventional closed circuit, utilizing a Stephens-Adamson 42” x 12’ apron feeder, Pioneer 30” x 42” jaw crusher, Nordberg standard 3’ cone crusher, a 5’ by 12’  double deck Kohlberg screen, and has a self-cleaning dust collector. The rock is crushed to minus 1 inch and the circuit has a rated capacity of more than 50 tons per hour.

Dryer

There are two dryer circuits, one for lines one and two, and one for the Raymond mill. The dryer circuits include one 50 ton feed bin, and each dryer has a conveyor bypass around each dryer, a bucket elevator, and a dry rock bin. The dryers are 25 feet long, 5 feet in diameter and are fired with propane burners rated at 750,000 BTUs. One self-cleaning bag house services both dryers. Depending on the wetness of the feed rock, the capacity is in the range of 10 tons per hour per dryer. During most of the year, the dryers are not run.

Coarse Products Circuit

There are two lines to produce coarse products:

·
 Line 1 is a closed circuit with a 100 HP vertical shaft impactor and a 5 deck Midwestern multivibe screen.

·
Line 2 includes a Jeffries 30” by 24” 60 HP hammer mill in a closed circuit with two 5’ x 12’ triple deck Midwestern Multi Vibe high frequency screens. The circuits also include bucket elevators, (3) 125 ton capacity product silos, a 6 ton capacity Crust Buster blender, augers, Sweco screens, and dust collectors.

Fine Products Circuit

The fine products circuit is in one building and it includes (2) 3.5’ x 10.5’ Derrick 2 deck high frequency (3450 RPM) screens and various bucket elevators, augers, bins, and Sweco screens for handling product. Depending on the screening sizes, the plants can generate approximately 150 tons of granules and 125 tons of fines per 24-hour day.
 
Raymond Mill Circuit

The Raymond mill circuit includes a 6058 high-side Raymond mill with a double whizzer, dust collector, two 100 ton product silos, feed bin, conveyors, air slide, bucket elevators, and control booth. The Raymond mill has a rated capacity of more than 10 tons per hour.
 
 
32

 

Item 3   Legal Proceedings

USAC has initiated an action against our prior investor relations consultant asking that he be ordered to desist from contacting any of our shareholders, and restrained from derogatory actions intended to harm our Company’s reputation and causing financial harm to the company.  The outcome of our suit is unknown at this time.

No director, officer or affiliate of USAC and no owner of record or beneficial owner of more than 5.0% of our securities or any associate of any such director, officer or security holder is a party adverse to USAC or has a material interest adverse to USAC in reference to pending litigation.
 
Item 4   Mine Safety Disclosures

The information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report.

PART II

Item 5   Market for Common Equity and Related Stockholder Matters

Currently, our common stock is traded on the NYSE-MKT under the symbol UAMY.  Prior to May 16, 2012, our common stock was traded over the Counter Bulletin Board ("OTCBB") under the symbol "UAMY.OB."  The following table sets forth the range of high and low bid prices as reported for the periods indicated.  The quotations were taken from a website available to the public, and generally believed to be accurate. The quoted prices may not necessarily represent actual transactions.
 
2015
 
High
   
Low
 
First Quarter
  $ 0.91     $ 0.48  
Second Quarter
    1.65       0.52  
Third Quarter
    0.79       0.35  
Fourth Quarter
    0.46       0.24  
                 
2014
 
High
   
Low
 
First Quarter
  $ 2.14     $ 1.67  
Second Quarter
    2.17       1.41  
Third Quarter
    1.76       1.15  
Fourth Quarter
    1.35       0.60  
 
The approximate number of holders of record of our common stock at March 30, 2016, is 2,500.

We have not declared or paid any dividends to our stockholders during the last five years and do not anticipate paying dividends on our common stock in the foreseeable future.  Instead, we expect to retain earnings for the operation and expansion of our business.
 
 
33

 
 
Item 6             Selected Financial Data

December 31,
 
2015
   
2014
 
Balance Sheet Data:
           
Current assets
  $ 2,136,326     $ 2,303,669  
Property, plant, and equipment-net
    16,030,333       13,511,803  
Restricted cash
    76,012       75,754  
Other assets
    17,530       653,805  
   Total assets
  $ 18,260,201     $ 16,545,031  
                 
Current liabilities
  $ 2,429,830     $ 2,292,640  
Long-term debt, net of current portion
    1,717,745       715,328  
Hillgrove advances payable
    1,254,846       161,339  
Stock payable to directors for services
    137,500       125,000  
Accrued reclamation costs
    260,327       255,190  
   Total liabilities
    5,800,248       3,549,497  
Shareholders' equity
    12,459,953       12,995,534  
   Total liabilities and
               
      shareholders' equity
  $ 18,260,201     $ 16,545,031  
                 
Income Statement Data:
               
Revenues
  $ 13,109,003     $ 10,772,192  
                 
Cost of revenues
    13,521,363       11,111,533  
Operating expenses
    1,311,407       1,213,548  
Gain on liability adjustments
    (914,770 )        
Other (income) expense
    29,534       42,566  
   Total expenses
    13,947,534       12,367,647  
                 
Income (loss) before income taxes
    (838,531 )     (1,595,455 )
Income tax benefit (expense)
    -       -  
   Net income (loss)
  $ (838,531 )   $ (1,595,455 )
                 
Per Share Data:
               
Net income (loss) per share:
               
   Basic and diluted
  $ (0.01 )   $ (0.03 )
Weighted average shares outstanding:
               
   Basic and diluted
    66,207,241       64,605,253  
 
Item 7             Management's Discussion and Analysis or Plan of Operations

Certain matters discussed are forward-looking statements that involve risks and uncertainties, including the impact of antimony prices and production volatility, changing market conditions and the regulatory environment and other risks. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of this filing. We disclaim, however, any intent or obligation to update these forward-looking statements.
 
 
34

 
 
Resulta of Operations by Division            
Antimony - Combined USA
           
   and Mexico
 
2015
   
2014
 
Lbs of Antimony Metal USA
    1,381,971       1,141,436  
Lbs of Antimony Metal Mexico:
    1,105,350       586,368  
   Total Lbs of Antimony Metal Sold
    2,487,321       1,727,804  
Average Sales Price/Lb Metal
  $ 3.97     $ 4.71  
Net income (loss)/Lb Metal
  $ (0.54 )   $ (1.11 )
                 
Gross antimony revenue - net of discount
  $ 9,863,933     $ 8,132,410  
Precious metals revenue
    491,426       461,083  
Production costs - USA
    (4,265,840 )     (4,864,603 )
Product cost - Mexico
    (4,201,005 )     (2,609,338 )
Direct sales and freight
    (438,582 )     (295,334 )
General and administrative - operating
    (428,022 )     (288,602 )
Mexico non-production costs
    (1,086,440 )     (688,619 )
General and administrative - non-operating
    (1,481,111 )     (1,234,597 )
Gain on liability adjustment
    914,770          
Non-operating gains
            14,530  
 Net interest
    (7,718 )     6,496  
   EBITDA
    (638,589 )     (1,366,574 )
Income taxes
               
Depreciation,& amortization
    (711,345 )     (559,552 )
Net income (Loss) - antimony
  $ (1,349,934 )   $ (1,926,126 )
                 
Zeolite
    2015       2014  
Tons sold
    15,901       11,079  
Average Sales Price/Ton
  $ 173.17     $ 195.83  
Net income (Loss)/Ton
  $ 32.16     $ 29.85  
                 
Gross zeolite revenue
  $ 2,753,644     $ 2,169,619  
Production costs
    (1,266,687 )     (1,109,386 )
Direct sales and freight
    (286,235 )     (170,964 )
Royalties
    (279,435 )     (222,054 )
General and administrative - operating
    (108,847 )     (81,852 )
General and administrative - non-operating
    (80,229 )     (63,765 )
Non-operating gains
            30,000  
 Net interest
    633       303  
   EBITDA
    732,844       551,901  
Depreciation
    (221,441 )     (221,230 )
Net income  - Zeolite
  $ 511,403     $ 330,671  
                 
Company-wide
    2015       2014  
Gross revenue
  $ 13,109,003     $ 10,763,112  
Production costs
    (9,733,532 )     (8,583,327 )
Other operating costs
    (2,627,561 )     (1,747,425 )
General and administrative - non-operating
    (1,561,340 )     (1,298,362 )
Gain on liability adjustment
    914,770          
Non-operating gains
    -       44,530  
Net interest
    (7,085 )     6,799  
   EBITDA
    94,255       (814,673 )
Income tax benefit (expense)
               
Depreciation & amortization
    (932,786 )     (780,782 )
Net income  (Loss)
  $ (838,531 )   $ (1,595,455 )
 
 
35

 
 
Excess Mexico production costs

During the two year period ending December 31, 2015, we incurred excess production costs at our Mexico operations.  At the beginning of each year, management determined a standard, or expected, cost to produce antimony products for shipment to Montana for further processing. For 2015 and 2014, the standard costs per pound was $3.95 and $4.45, respectively.  The production costs above the standard costs were calculated and reported in the above schedule of results of operations by division as “excess Mexico production costs”, which were $1,086,440 and $688,619 in 2015 and 2014, respectively. The excess Mexico production costs are primarily due to holding costs from inactivity at the Wadley and Los Juarez mines, the Puerto Blanco mill, and the loss of production at the Madero smelter from metalurgical testing and experimenting with various production methods and formulas.

Overview

Our cost of production was elevated for the years ended December 31, 2015 and 2014, because we were starting a major mining and production facility in Mexico.  The same workers responsible for production were also a significant part of building and testing the manufacturing plants and equipment at Puerto Blanco and Madero, Mexico, which resulted in costs that won’t be incurred when construction and testing is complete.  To a lesser degree, we incurred similar testing costs at our plant in Thompson Falls, Montana.  In Mexico, there will still be some overlapping costs in 2016 because the smelter is finishing a major expansion in its physical plant.  The production from Mexico should be greater for 2016 than 2015 once the plant expansion is complete and the management and crew at the Madero smelter can concentrate their efforts on production activities.

The non-cash expense items totaled $1,075,423 for 2015 and included $932,786 for depreciation and amortization, $5,137 for accretion, and $137,500 for director compensation.

The non-cash expense items totaled $903,392 for 2014 and included $780,782 for depreciation and amortization, $(2,390) for accretion, and $125,000 for director compensation.

We are producing and buying raw materials, which will allow us to ensure a steady flow of products for sale.  Our smelter at Madero, Mexico, was producing a significant portion of our raw materials in 2014 and 2015.  We will still purchase a significant portion of our raw materials from suppliers for our smelter in Montana.
 
We completed installation of a natural gas pipeline to replace propane as the fuel used in our Mexico smelter in the fourth quarter of 2014.  We expected the pipeline to reduce our smelter fuel cost by approximately 75%.  Our smelter fuel cost (propane) in Mexico was approximately $700,000 for 2013 and $690,000 using 8 furnaces for the first nine months of 2014, resulting in a cost of approximately $1.27 per pound.  Our natural gas cost was $348,260 to produce 1,105,350 pounds of antimony in 2015, or approximately $0.32 per pound, a decrease of $0.95 per pound (74.8%).

We are proceeding with the installation of a 400 - 500 ton per day flotation mill that we expect to cost between $400,000 and $500,000 to install.  The concrete work for the mill has been completed, and work will be ongoing as we generate cash from operations. This mill will be dedicated to processing ore from the Los Juarez mining property.  We are in a waiting period for approval of permits necessary to process the Los Juarez ore.  We have adequate crushing capacity in place to feed the 500 ton per day mill and the existing mill.

 When approved, the restart of production from Los Juarez will create a significant increase in our precious metals revenue for 2016 and years forward.

Our principal smelter, precious metals recovery operation, and our Company headquarters remain in Montana.  With increased production, we expect to widen our base of customers.
 
Results of Operations
 
 
36

 
 
Comparison of Years ended December 31, 2015and 2014
 
   
2015
   
2014
 
Antimony Division - United States:
           
Revenues - Antimony (net of discount)
  $ 9,863,933     $ 8,132,410  
Revenues - Other
            9,080  
Revenues - Precious metals
    491,426       461,083  
      10,355,359       8,602,573  
Domestic cost of sales:
               
Production costs
    4,265,840       4,864,603  
Depreciation
    61,819       63,787  
Freight and delivery
    311,027       243,606  
General and administrative
    192,298       288,602  
Direct sales expense
    65,000       51,726  
       Total domestic antimony cost of sales
    4,895,984       5,512,324  
                 
Cost of sales - Mexico
               
Production costs
    3,765,902       2,609,338  
Depreciation and amortization
    649,525       495,765  
Freight and delivery
    62,555       122,035  
Reclamation accrual
    5,137       4,839  
Land lease expense
    435,103       407,493  
Mexico non-production costs
    1,086,440       22,553  
General and administrative
    363,025       131,700  
       Total Mexico antimony cost of sales
    6,367,687       3,793,723  
                 
     Total revenues - antimony
    10,355,359       8,602,573  
     Total cost of sales - antimony
    11,263,671       9,306,047  
     Total gross profit (loss) - antimony
    (908,312 )     (703,474 )
                 
Zeolite Division:
               
Revenues
    2,753,644       2,169,619  
Cost of sales:
               
Production costs
    1,266,687       1,109,386  
Depreciation
    221,441       221,230  
Freight and delivery
    289,927       87,355  
General and administrative
    114,102       81,852  
Royalties
    279,435       222,054  
Direct sales expense
    86,100       83,609  
       Total cost of sales
    2,257,692       1,805,486  
           Gross profit - zeolite
    495,952       364,133  
                 
Total revenues - combined
    13,109,003       10,772,192  
Total cost of sales - combined
    13,521,363       11,111,533  
Total gross profit (loss) - combined
  $ (412,360 )   $ (339,341 )
 
37

 
 
·
 During the two year period ended December 31, 2015, the most significant event affecting our financial performance was the decrease in the price of antimony (see table page 6).  During the year ended December 31, 2015, the most significant event was construction and start-up of a plant to process antimony concentrate for Hillgrove LTD of Australia.  The expansion of production at our Mexico operations caused our reported operating costs to be elevated when compared to years when we were not initiating the start-up of new production facilities. The Mexican production of antimony (metal contained) and sold was 586,368 pounds during 2014 compared to 1,105,350 pounds for 2015, an increase of 88.5%.  2015 and 2014 are regarded as “start- up years” during which the holding costs, permitting, and metallurgical research was categorized as a “non-production” operating expense. During both years, Los Juarez concentrate was not produced and Soyatal oxide ore was in a research phase at the Puerto Blanco oxide circuit. Guadalupe was not in production for most of 2015while they prepared the underground for mining higher grade rock.  The Puerto Blanco mill circuits were utilized less than 10% of their capacity.  Going forward, the increased supply of raw material from Mexico and the metal prices for both antimony and precious metals will be the most significant factors influencing our operations.  The following are highlights of the significant changes during 2015 and the two year period then ended:

a.  
Our sales of antimony for 2015 increased by approximately 759,000 pounds (44%) from 2014. Our revenues from antimony increased in 2015 by approximately $1,712,000 (21%) from 2014 due to an increase in the amount of antimony sold.  The average sale price for antimony contained in all products declined from $4.71 in 2014 to $3.96 per pound in 2015, a decrease of $0.75 (15.9%).

b.  
The metallurgical problem with the Los Juarez feed has been solved, and mining, milling, and smelting will resume when the necessary permits are obtained. This will put the Puerto Blanco mill in operation. During 2015 and 2014, the Puerto Blanco mill was operating at less than 10% of capacity.

c.  
The Soyatal oxide ore recovery problem has been solved, and high grade oxide concentrates can be produced. Oxide mineralized rock from dumps will be mined and underground development will be started when the need for raw materials increases.

d.  
Explosives were permitted at Guadalupe in 2014, and underground development has started.

·
Assuming that Guadalupe and Los Juarez feed are going to the Puerto Blanco mill, the 500 ton per day mill that is estimated at 40% of completion will need to be completed.
 
·
Our cost of goods sold for antimony increased by approximately $1,958,000 for 2015 because of the increase in antimony sold. For the year ended December 31, 2015, costs of goods sold include operating and non-operating production costs from Mexico operations.  Our switch to natural gas as a fuel for our smelter at Madero in the fourth quarter of 2014 has provided a significant improvement in our Mexico operating costs for 2015.  Prior to 2015, the cost of propane was our second largest operating cost, and the switch to natural gas has decreased the per pound cost by 75%.  The cost of goods sold during both years has been impacted by increases in the cost of operating supplies, fuel, trucking, insurance, refractory costs, and steel.
 
·
Our volume of zeolite sold was up 44%, from 11,079 tons in 2014 to 15,901 tons in 2015.  The tons of zeolite sold decreased by approximately 100 tons in 2014 from 2013. Total revenue increased by approximately $584,000 in 2015 and decreased approximately $33,000 in 2014. Our cost of goods sold increased by approximately $452,206 for 2015, and increased by approximately $55,000 for 2014 from 2013.  Cost of sales increased for 2015 primarily because we had an increase in the volume of product sold.
 
·
General and administrative costs, as reported in our statement of operations, include fees paid to directors through stock based compensation. In 2015 and 2014, we incurred $40,000 each year in fees to the NYSE MKT that was included in general and administrative expenses.  General and administrative costs for 2015 and 2014 include general and administrative costs related to commencement of production at our facilities in Mexico.  The combined general and administrative costs were 5.6%, and 5.8%, of sales for 2015 and 2014, respectively.  The combined general and administrative salaries were 3.3%, and 3.9% of sales for 2015 and 2014, respectively.
 
 
38

 
 
·
The increase in professional fees for 2015 (approximately $73,000) was primarily due to increased costs related to our audits and financial statement preparation and for attorney fees related to alleged violations of an operating agreement with our former Investor Relations representative.
 
·
Factoring costs decreased in 2015 from approximately $49,000 in 2014 to approximately $41,000. Factoring costs decreased in 2014 by approximately $22,000 as we were able to reduce our collection time for accounts receivable.  The discounts we gave for early payments increased by approximately $23,000 in 2015 from 2014.
 
Subsidiaries

The Company has a 100% investment in two subsidiaries in Mexico, USAMSA and AM, whose mineral property carrying values were assessed at December 31, 2015 and 2014 for impairment.  Management’s assessment of the subsidiaries’ fair value was based on their future benefit to us.
 
Financial Condition and Liquidity
           
   
2015
   
2014
 
Current Assets
  $ 2,136,326     $ 2,303,669  
Current liabilities
    (2,429,830 )     (2,255,408 )
   Net Working Capital
  $ (293,504 )   $ 48,261  
                 
Cash provided (used) by operations
  $ 358,453     $ (1,036,375 )
Cash used for capital outlay
    (1,704,037 )     (1,826,553 )
Cash provided (used) by financing:
               
   Net payments to factor
    468       (164,387 )
   Proceeds from notes payable to bank
    130,672          
   Proceeds from Hillgrove advances
    1,198,445       198,571  
   Payment of notes payable to bank
    -       (138,520 )
   Principal paid on long-term debt
    (94,141 )     (129,530 )
   Proceeds from sales of common stock
            3,070,134  
   Proceeds from long-term debt
            130,000  
   Received on notes receivable for stock
    120,000       0  
      Net change in cash
  $ 9,860     $ 103,340  
 
Our net working capital decreased for the year ended December 31, 2015, from a positive amount of $48,261 at the beginning of the year to a negative amount of $293,504 at the end of 2015.  Our current assets decreased primarily due to an decrease in our inventories in Montana and in Mexico.  The capital improvements were paid for with cash and debt.  Our current liabilities increased in most categories during 2015.

During the year ending December 31, 2016, we are planning to finance our improvements with operating cash flow. Our 2016 improvements are expected to include completion of the installation at the Madero smelter, completion of cyanide leach circuits at both Madero and Puerto Blanco, and completing the installation of a 400 - 500 ton per day flotation mill at Puerto Blanco.

In 2015, cash used by operations was primarily due to our net loss of approximately $840,000 which was mostly offset by depreciation and amortization of approximately $932,000.  We negotiated decreases in our current liabilities for raw material of approximately $915,000 during 2015.
 
 
39

 

The current portion of our long term debt is serviceable from the cash generated by operations.

Our stockholders’ equity section makes note that we have a liquidation preference of $5,884,376 for our preferred stock.  This consists of a liquidation payment of $5,281,519 due if we liquidate our company or sell substantially all our assets, and $602,857 of undeclared dividends.  The Board of Directors’ does not intend to declare dividends on preferred stock as due and payable at any time in the near future.  We do not feel that the liquidation preference and undeclared dividends related to our preferred stock will be an impediment to raising capital in the future by issuing additional shares of common stock, and are not going to affect our liquidity.

Item 7A   Quantitative and Qualitative Disclosures about Market Risk

We sell our antimony products based on a world market price.  Our earnings and cash flow are significantly affected by changes in the price of antimony.  The price of antimony can fluctuate widely and is influenced by numerous factors such as demand, production levels, and world political and economic events.  During the past five years, our average sales price of antimony metal has ranged from a high of $7.43 per pound in 2011 to a low of $3.96 per pound in 2015.  Analysis of our costs indicate that, for the year ended December 31, 2015, raw material costs were approximately 50% of our cost of revenues (cost of goods sold).  Our raw material cost is tied to the sales price of antimony, but most of our production costs are fixed in nature, and could not be decreased readily without decreasing our production.  During the year ended December 31, 2015, a $0.50 per pound decrease in our sales price would have likely caused our gross profit to decrease by $0.25 per pound.  As we produce more of our raw material from our Mexico operations and our raw material cost becomes less affected by world prices, a decrease in our sales price will have a smaller impact on our cost of revenues.

Item 7B   Critical Accounting Estimates

We have, besides our estimates of the amount of depreciation on our assets, two critical accounting estimates.  The value of our unprocessed ore in inventory is assessed on assays taken at the time the ore is delivered, and may vary when the ore is processed and final settlement is made.  Also, the asset recovery obligation on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations, and may differ when we cease operations.

·
The value of unprocessed purchased ore in our inventory at the Wadley mining concession and Puerto Blanco mill is based on assays taken at the time the ore is delivered, and may vary when the ore is processed and final settlement is made.  We assay the purchased ore to estimate the amount of antimony contained per metric ton, and then make a payment based on the Rotterdam price of antimony and the % of antimony contained.  Our payment scale incorporates a penalty for ore with a low percentage of antimony.  It is reasonably likely that the initial assay will differ from the amount of metal recovered from a given lot.  If the initial assay of a lot of ore on hand at the end of a reporting period were different, it would cause a change in our reported inventory and accounts payable amounts, but would not change our reported cost of goods sold or net income amounts.  At December 31, 2015, if we had overestimated the per cent of antimony in our total inventory of purchased ore by 2.5%, (a 10% correction to the amount of antimony metal contained if we assayed 25.0% antimony per metric ton), the amount of our inventory and accounts payable would be smaller by approximately $51,000.  Our net income would not be affected.  Direct shipping ore (DSO) purchased at our Madero smelter is paid for at a fixed amount at the time of delivery and assaying, and is not subject to accounting estimates. The amount of the accounting estimate for purchased ore at our Puerto Blanco mill is in a constant state of change because the amount of purchased ore and the per cent of metal contained are constantly changing.  Due to the amount of ore on hand at the end of a reporting period, as compared to the amount of total assets, liabilities, equity, and the ore processed during a reporting period, any change in the amount of estimated metal contained would likely not result in a material change to our financial condition.

·
The asset recovery obligation and asset on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations, and may differ when we cease operations.  At December 31, 2011, we made an estimate that the cost of the machine and man hours probable to be needed to put our properties in the condition required by our permits once we cease operations would be $134,000.  For purposes of the estimate, we used a probable life of 20 years and costs that, initially, are comparable to rates that we would incur at the present.  We are adding to (an accretion of 6%) the liability each year, and amortizing the asset over 20 years ($6,700 annually), which decreases our net income in total each year (by $11,837 for 2015).  We will make periodic reviews of the remaining life of the mine and other operations, and the estimated remediation costs upon closure, and adjust our account balances accordingly.  At this time, we think that an adjustment in our asset recovery obligation is not required, and an adjustment in future periods would not have a material impact in the year of adjustment, but would change the amount of the annual accretion and amortization costs charged to our expenses by an undetermined amount.
 
 
40

 
 
Item 8   Financial Statements

The consolidated financial statements of the registrant are included herein on pages F1-F23.

Item 9   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None

Item 9A   Controls and Procedures

Evaluation of disclosure controls and procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required disclosure. Our Chief Financial Officer conducted an evaluation of the effectiveness of USAC’s disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of December 31, 2015.  Based upon this evaluation, it was determined that there were material weaknesses affecting our internal control over financial reporting (described below) and, as a result of those weaknesses, our disclosure controls and procedures were  ineffective as of December 31, 2015.

Internal control over financial reporting

Management's annual report on internal control over financial reporting

The management of USAC is responsible for establishing and maintaining adequate internal control over financial reporting. This internal control system has been designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of our published financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

The management of USAC has assessed the effectiveness of our internal control over financial reporting as of December 31, 2015. To make this assessment, we used the criteria for effective internal control over financial reporting described in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

As a result of our assessment, we concluded that we have material weaknesses in our internal control over financial reporting as of December 31, 2015.   These weaknesses are as follows:

·
Inadequate design of internal control over the preparation of the financial statements and financial reporting processes;

·
Inadequate monitoring of internal controls over significant accounts and processes including controls associated with domestic and Mexican subsidiary operations and the period-end financial reporting process; and
 
 
41

 
 
·
The absence of proper segregation of duties within significant processes and ineffective controls over management oversight, including antifraud programs and controls.

We are aware of these material weaknesses and will develop procedures to ensure that independent review of material transactions is performed.  The chief financial officer will develop internal control measures to mitigate the lack of inadequate documentation of controls and the monitoring of internal controls over significant accounts and processes including controls associated with the period-ending reporting processes, and to mitigate the segregation of duties within significant accounts and processes and the absence of controls over management oversight, including antifraud programs and controls.

We plan to consult with independent experts when complex transactions are entered into.

Because these material weaknesses exist, management has concluded that our internal control over financial reporting as of December 31, 2015, is ineffective.

Changes in internal control over financial reporting

There were no changes in internal control over financial reporting for the quarter ended December 31, 2015.

Item 9b   Other Information

We file the following reports with the Securities and Exchange Commission, or SEC:
·
Form 10K Annual Report Under Section 13 or 15(d) of the Securities and Exchange Act of 1934
·
Form 10Q Quarterly Report Under Section 13 or 15(d) of the Securities and Exchange Act of 1934
·
Form 8K Current Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934

The public may read and copy any materials that we file with SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, Dc 20549.  The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.  We file electronically with the SEC.  The SEC maintains an internet site (http:/www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically.

Our internet address is www.usantimony.com.  Our annual report on Form 10K, quarterly report on Form 10Q, current reports on Form 8K, and any amendments to these reports is available, free of charge, as soon as practicable after such material is electronically filed with the SEC.

On January 24, 2014, as reported on SEC Form 8K, the Company accepted the resignation of Bernard J. Guarnera, from the Board of Directors.

On June 28, 2014, the Company issued Mr. and Mrs. Robert Detwiler, stockholders of the Company, 100,000 shares of the Company’s common stock in exchange for two notes receivable totaling $120,000. The notes receivable were renewed and mature on December 28, 2015, and bear interest at five percent.

On March 13, 2014, the Company issued Herbert Denton, the Company investor relations consultant, 25,000 shares of the Company’s common stock in exchange for a notes receivable of $30,000. Mr. Denton’s note bears interest of six percent and is due in monthly payments of $2,000.

In 2014, the Company sold, and issued in connection with the exercise of warrants, an aggregate of 2,400,071, shares, of its unregistered common stock to existing stockholders and other parties for $3,070,134.

During the year ended December 31, 2014, Mr. and Mrs. Robert Detwiler along with two other shareholders loaned the Company $330,000.  The Company issued 235,717 shares of its commons stock in satisfaction of these notes during the year ended December 31, 2014.  The terms of the share payment were identical to those offered other investors that purchased common stock during the time of the issuance.
 
 
42

 

On March 23, 2015, the Company issued the Board members 183,825 shares of the Company’s common stock for services in 2014 with a value of $125,000.

On July 1, 2015, Jeffrey Wright was elected as a board member.

On March 31 and August 11, 2015, the Company issued Herbert Denton, the Company investor relations consultant, 5,000 and 100,000 shares, respectively, of the Company’s common stock in exchange for services.  On September 30, 2105, a note receivable for $30,000 due from Mr. Denton for was cancelled, and $30,000 was deleted from additional paid in capital.
 
PART III

Item 10      Directors, Executive Officers, Promoters and Control Persons, Compliance with
Section 16(a) of the Exchange Act

Identification of directors and executive officers at December 31, 2015, is as follows:
 
Name
 
Age
 
Affiliation
 
Expiration of Term
             
John C. Lawrence
 
77
 
Chairman, President, Director
 
Annual meeting
             
John C. Gustavsen
 
67
 
First Vice-President
 
Annual meeting
             
Russell C. Lawrence
 
47
 
Second Vice-President and Director
 
Annual meeting
             
Matthew Keane
 
60
 
Third Vice-President
 
Annual meeting
             
Daniel L. Parks
 
67
 
Chief Financial Officer
 
Annual meeting
             
Alicia Hill
 
34
 
Secretary, Controller and Treasurer
 
Annual meeting
             
Gary D. Babbitt
 
70
 
Director
 
Annual meeting
             
Whitney Ferer
 
57
 
Director
 
Annual meeting
             
Hart W. Baitis
 
66
 
Director
 
Annual meeting
             
Jeffrey D. Wright
      Director  
Annual meeting
 
Business Experience of Directors and Executive Officers

John C. Lawrence.  Mr. Lawrence has been the president and a director since our inception in 1969.  Mr. Lawrence was the president and a director of AGAU Mines, Inc., our corporate predecessor.  He is a member of the Society of Mining Engineers and a recipient of the Uuno Sahinen Silver Medallion Award presented by Butte Tech, University of Montana.  He has a vast background in mining, milling, smelting, chemical processing and oil and gas.

Gary D. Babbitt.  Mr. Babbitt has experience in the mining industry with approximately 30 years dealing with joint ventures, purchases, royalty leases and contracts. He has a working knowledge of Spanish and has negotiated supply and mining agreements in Mexico.  Mr. Babbitt has a B.A. from the Albertson College of Idaho, and earned his J.D. from the University of Chicago.

Russell C. Lawrence.  Mr. Lawrence has experience in applied physics, mining, refining, excavation, electricity, electronics, and building contracting.  He graduated from the University of Idaho in 1994 with a degree in physics, and worked for the Physics Department at the University of Idaho for a period of 10 years. He has also worked as a building contractor and for USAC at the smelter and laboratory at Thompson Falls, for USAMSA in the construction and operation of the USAMSA smelter in Mexico, and for Antimonio de Mexico, S. A. de C. V. at the San Miguel Mine in Mexico.

Hart W. Baitis.  Mr. Baitis graduated from the University of Oregon in 1971 with a B.S. in Geology, and was awarded a Ph. D. in Geology in 1976. He has 35 years of experience as an exploration geologist in the United States, Canada, Central America, and Mexico.  Mr. Baitis is experienced in numerous geologic environments and terrains, and has been involved in all phases of exploration, ranging from field geologist, consultant, management, and acquisition team director.
 
 
43

 

Whitney Ferer.  Mr. Ferer was nominated to the board of USAC in February 2012. He worked for 34 years for Aaron Ferer & Sons Co. headquartered in Omaha, Nebraska, where he was the Vice President of Operations and Senior Trader, as well  Vice Chairman of the Board of AF&S Co..  He has been involved in the patenting of various processes for the breakdown of plastics and metal recovery, and was Vice President of the Lead & Zinc Division of AF&S.  In addition, Mr. Ferer has been active in the trading of all metals, and facilitated the opening of eight offices in the Far East and China for AF&S.  Mr. Ferer has recently opened his own company W.H. Ferer Co., LLC.   He is one of the largest traders of antimony metal and oxides in the United States and, additionally, he handles approximately 20-30 elements in various forms and grades.

Jeffrey D. Wright.  Mr. Wright graduated from North Carolina University in 1991, and from the University of Southern California, Marshall School of Business (MBA) in 2004.  Mr. Wright was a naval officer from 1991 through 1996, serving aboard the aircraft carrier USS Carl Vinson and the destroyer USS John Young.  After duty in the military, Mr. Wright held successively more responsible positions in the securities and finance industry.  From 2011 through 2013 he was the managing director metals and mining research for Global Hunter Securities, and he held the same position for H.C. Wainwright for 2013 through 2015.

Alicia Hill.  Ms. Hill was hired by the Company in 2006 as an accounting assistant, and was eventually promoted to chief accountant responsible for the recording of transactions for three companies.  In 2011, she was appointed Company Controller, Secretary, and Treasurer.  Ms. Hill has guided the Company through the listing on the NYSE-MKT, in the addition of a new division in Mexico, and has been the liaison with the Company’s auditors through a progressively complicated reporting process.

Daniel L. Parks. Mr. Parks graduated from the University of Idaho in 1974 with a B.S. in Accounting, and was licensed as a certified public accountant in 1976.  He worked as an auditor for Coopers & Lybrand for three years, as controller for a lumber manufacturing company for one year, and owned his own accounting practice for thirty years.  Mr. Parks was extensively involved in auditing and financial statement preparation during this time.

John C. Gustaven.  Mr. Gustaven graduated from Rutgers University in 1970 with a BS in chemistry and started work for Harshaw Chemical (purchased by Amspec Chemical Corporation), a major producer of antimony trioxide.  Mr. Gustaven took engineering courses from 1976 through 1980, and became president and treasurer of the company in 1983.  He was promoted CEO in 1990.  Mr. Gustaven designed a new type of production furnace for antimony trioxide that eventually produced 20 million pounds of antimony trioxide per year.  Mr. Gustaven is conversant in Spanish, Chinese, and other languages, and travelled to many countries as part of his duties as president of Amspec Chemical Corporation.  Mr. Gustaven came to work at United States Antimony Corporation in November of 2011.

Matt Keane.  Mr. Keane graduated from Mankato State University in 1978 with degrees in geography and environmental studies.  Mr. Keane was owner of a construction business and a retail building supply business before becoming the director of sales for United States Antimony Corporation in 2000.  Mr. Keane has developed the Company’s growing zeolite sales through Bear River Zeolite and the increase in the Company’s share of the domestic market for antimony products.

We are not aware of any involvement by our directors or executive officers during the past five years in legal proceedings that are material to an evaluation of the ability or integrity of any director or executive officer.

Board Meetings and Committees   Our Board of Directors held four (4) regular meetings during the 2015 calendar year.  Each incumbent director attended all of the meetings held during the 2015 calendar year, in the aggregate, by the Board and each committee of the Board of which he was a member.

Our Board of Directors established an Audit Committee on December 10, 2011. It consists of four members, Gary Babbitt (Chairman), Whitney Ferer, Jeffrey Wright, and Hart Baitis.  None of the Audit Committee members are involved in our day-to-day financial management.  Jeffrey Wright is considered a financial expert.

During 2011, the Board also established a Compensation Committee and a Nominating Committee.
 
 
44

 

Board Member Compensation   Following is a summary of fees, cash payments, stock awards, and other reimbursements to Directors during the year ended December 31, 2015:

Directors Compensation
 
Name and Principal Position
 
Fees Earned or paid in Cash
   
Stock Awards
   
Total Fees, Awards, and Other Compensation
 
John C. Lawrence, Chairman
    $ 25,000     $ 25,000  
Gary D. Babbitt, Director
  $ 36,000     $ 25,000     $ 61,000  
Russell Lawrence, Director
    $ 25,000     $ 25,000  
Hartmut Baitis, Director
    $ 25,000     $ 25,000  
Whitney Ferer, Director
    $ 25,000     $ 25,000  
Jeffrey Wright, Director
    $ 12,500     $ 12,500  
   Totals
  $ 36,000     $ 137,500     $ 173,500  

Section 16(a) Beneficial Ownership Reporting Compliance   Section 16(a) of the Securities Exchange Act of 1934 requires our directors and executive officers and the holders of 10% or more of our common stock to file reports of ownership and changes in ownership with the Securities and Exchange Commission. Officers, directors and stockholders holding more than 10% of our common stock are required by the regulation to furnish us with copies of all Section 16(a) forms they have filed. Based solely on our review of copies of Forms 3, 4 and 5 furnished to us, Mr. Baitis, Mr. Babbitt, Mr. Ferer, and Mr. Russell Lawrence did not file timely Forms 3, 4 or Form 5 reports during 2015 and 2014.

Code of Ethics
The Company has adopted a Code of Ethics that applies to the Company's executive officers and its directors.  The Company will provide, without charge, a copy of the Code of Ethics on the written request of any person addressed to the Company at: United States Antimony Corporation, P.O. Box 643, Thompson Falls, MT 59873.

Item 11   Executive Compensation

Summary Compensation Table
The Securities and Exchange Commission requires the following table setting forth the compensation paid by USAC to its principal executive officer for fiscal years ended December 31, 2015 and 2014.

Name and Principal Position
Year
 
Salary
   
Bonus
   
Stock Awards (2)
   
Total
 
John C. Lawrence,
2015
  $ 141,000       N/A     $ 25,000     $ 166,000  
President and Chief Executive Officer
2014
  $ 141,000             $ 25,000     $ 166,000  
                                   
John C. Gustaven,
2015
  $ 100,000       N/A             $ 100,000  
Executive Vice President
2014
  $ 100,000                     $ 100,000  
                                   
Russell Lawrence,
2015
  $ 120,000       N/A     $ 25,000     $ 145,000  
Vice President for LatinAmerica
2014
  $ 105,000             $ 25,000     $ 130,000  
 
 (2)
These figures represent the fair value, as of the date of issuance, the annual director's fees payable to John C.  Lawrence and Russell Lawrence in shares of USAC's common stock.
 
 
45

 
 
 
Compensation for all executive officers, except for the President/CEO position, is recommended to the compensation committee of the Board of Directors by the President/CEO.  The compensation committee makes the recommendation for the compensation of the President/CEO.  The compensation committee has identified a peer group of mining companies to aid in reviewing the President’s compensation recommendations for executives, and for reviewing the compensation of the President/CEO.  The full Board approves the compensation amounts recommended by the compensation committee. Currently, the executive managements’ compensation only includes base salary and health insurance.  The Company does not have annual performance based salary increases, long term performance based cash incentives, deferred compensation, retirement benefits, or disability benefits.  For the year ended December 31, 2015, Russell Lawrence (VP) received an increase in base compensation of $15,000 annually.  The Board of Directors determined that Mr. Lawrence’s compensation for the prior years was not adequate for the duties assigned to Mr. Russell as the Vice President for Latin America, and that a raise was appropriate to compensate for management of the Latin American operations.

 
Two executive officers, the President/CEO and the Vice-President for the Latin American operations, receive restricted stock awards for their services as Board members.
 
The following table sets forth information concerning the outstanding equity awards at December 31, 2015, held by our principal executive officer.  There were not any other outstanding equity awards or plan based awards to officers or directors as of December 31, 2015.

              Outstanding Equity Awards at Fiscal Year End          
                       
   
Number of Securities Underlying
Unexercised Options
  Number of Securities Underlying Unexercised Unearned Options     Average Exercise Price   Option Exercise Dates
           
Name
         
   
Exercisable
   
Unexercisable
             
      #       #              
                             
John C. Lawrence
    250,000       0     0     $ 0.25  
None
(Chairman of the Board Of
                               
Directors and Chief Executive
                               
Officer)
                               
 
Item 12   Security Ownership of Certain Beneficial Owners and Management

The following table sets forth information regarding beneficial ownership of our common stock as of March 30, 2016, by (i) each person who is known by us to beneficially own more than 5% of our Series B, C, and D preferred stock or common stock; (ii) each of our executive officers and directors; and (iii) all of our executive officers and directors as a group. Unless otherwise stated, each person's address is c/o United States Antimony Corporation, P.O. Box 643, 47 Cox Gulch, Thompson Falls, Montana 59873.
 
 
46

 
 
Title of Class
 
Name and Address of Beneficial Owner (1)
 
Amount and Nature of Beneficial Ownership
   
Percent of Class (1)
   
Percent of all Voting Stock
 
Common Stock   Cardinal capital Management LLC                  
   
Four Greenwich Office Park  Greenwich CT 06831
    4,008,694       6.07 %     5.87 %
                             
Common Stock   Reed Family Limited Partnership     4,018,335       6.09 %     5.88 %
    328 Adams Street                        
    Milton, MA 02186                        
                             
Common Stock   The Dugan Family     6,362,927 (3)      9.64     9.32
    c/o A.W.Dugan                        
    1415 Louisana Street, Suite 3100                        
    Houston, TX 77002                        
                             
Series B Preferred
 
Excel Mineral Company
    750,000 (5)     100.00 %     N/A  
    P.O. Box 3800                        
    Santa Barbara, CA 93130                        
                             
Series C Preferred
 
Richard A. Woods
    48,305 (4)     27.10 %     *  
    59 Penn Circle West                        
    Penn Plaza Apts.                        
    Pittsburgh, PA 15206                        
                             
Series C Preferred
 
Dr. Warren A. Evans
    32,203 (4)     18.10 %     *  
    69 Ponfret Landing Road                        
    Brooklyn, CT 06234                        
                             
Series C Preferred
 
Edward Robinson
    32,203 (4)     18.10 %     *  
    1007 Spruce Street, 1st floor                        
    Philadelphia, PA 19107                        
                             
Series C Preferred
 
All Series C Preferred Shareholders as a Group
    177,904 (4)     100.00 %     *  
                             
Common Stock
 
John C. Lawrence
    4,281,107 (2)     83.35 %     6.66 %
                             
    Russell Lawrence     280,654       5.46     *  
                             
    Hart Baitis     171,180       3.33     *  
                             
    Garry Babbitt     169,254       3.29     *  
                             
    Whitney Ferer     119,704       2.33     *