The Fostung Filing

US Antimony recently filed a technical report summary of its Fostung Tungsten Project with the SEC. This is a timely filing since the price of tungsten has increased fivefold in the past year. Why? psssst: China controls roughly 80% of production and like antimony (Sb) Team Xi is restricting exports of this critical mineral. Tungsten’s density, hardness, and high melting point make it a critical component of defense technology. Thus, less supply and more military demand equals higher prices.

UAMY closed on Friday with a market cap of roughly $1.2 billion. The assumed raw value of the Fostung asset is $4.6 billion. The Stock Pawnshop is a conservative place, thus we apply a 75% haircut for total operating costs. Thus, if geopolitical conditions remain strained over the next couple of years, US Antimony’s stock can double to roughly $17 per share.

But that’s not all, because CEO Gary Evans has more minerals up his sleeve. We expect to hear more about cobalt in the coming quarters. The talented Melissa Pagen is running Bear River Zeolite and we expect value creation from that asset next year. Your Stock Pawnstars sometimes sing Johnny Horton’s North To Alaska when talking about US Antimony, because we believe the increased acreage position will convert into more earnings in due time.

Another important element to the story is the US Department of War is providing capital to the joint venture with America’s Gold & Silver, the Fostung Tungsten project, and Hydromet. The investment thesis keeps improving. However, there is a large short interest position in the stock. Joe Graves is working on that one folks.

Perhaps the shorts think the current administration will change its mind on funding CEO Evan’s projects. Or, maybe they believe China’s Politburo members will engage in a friendly game of Red Rover with a team from the United States and Europe. Afterwards, world leaders will make smores and sing kumbaya till the cows come home.

Stay tuned ….. …..