Part II, Management's Discussion and Analysis of Financial Conditions and Results Item 7 of Operations (Antinomy tables only)

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

Operational and financial performance

Antimony

Financial and operational metrics of antimony for the three months ended September 30, 2022 and 2021 are as follows:

                         Three months ended September 30,
Antimony -
Combined USA and
Mexico                     2022                    2021            $ Change       Pct Change
Total revenue -
sales of antimony    $       1,671,301       $       1,284,969     $ 386,332             30.1 %
Gross profit -
antimony                       329,233                  44,714       284,519            636.3 %
Total lbs of
antimony metal                                                                          (18.2
sold                           250,244                 306,045       (55,801 )                %)
Average sales
price/lb metal                    6.68                    4.20          2.48             59.1 %
Average cost/lb
metal                             5.36                    4.05          1.31             32.3 %
Average gross
profit/lb metal                   1.32                    0.15          1.17            800.5 %

Financial and operational metrics of antimony for the nine months ended September 30, 2022 and 2021 was as follows:

                          Nine months ended September 30,
Antimony - Combined
USA and Mexico              2022                   2021            $ Change        Pct Change
Total revenue
-antimony             $      6,972,312       $      3,371,015     $ 3,601,297            106.8 %
Gross profit -
antimony                     1,875,569                 69,959       1,805,610          2,581.0 %
Total lbs of
antimony metal sold          1,046,722                827,131         219,591             26.5 %
Average sales
price/lb metal                    6.66                   4.08            2.59             63.4 %
Average cost/lb
metal                             4.87                   3.99            0.88             22.0 %
Average gross
profit/lb metal                   1.79                   0.08            1.71          2,018.5 %

During the three months ended September 30, 2022, the average sales price for antimony increased $2.48 per pound compared to the three months ended September 30, 2021. Gross profit per pound increased $1.31 per pound over the three months ended September 30, 2021.

The Company experienced a decrease in production in Q3 due to a temporary decrease in feed for two reasons. First, there was a scheduled shut-down by our North American supplier that was followed by equipment failure at their facility. In addition to this, the supplier reported having difficulties with labor supply in Q3. Second, the decrease in supply corresponded with less sourcing in Mexico during the negotiation phase regarding our purchase option agreement. The same thing that led to a meeting with the owners of the Wadley mine culminating in a purchase option agreement resulted in a bottleneck during this period, namely, the insistence that all purchased ore was done without invoicing and paid for in cash-an arrangement unacceptable to US Antimony.

Both of these problems have been corrected and we now have a record number of tons of ore at our smelter in Madero and are receiving the predicted number of tons of feed from our North American supplier. However, there is a delay between the purchase of raw material and the processing and sale product and this delay has affected Q3 and will affect Q4. The Company has recently received a ton of material for testing to produce antimony metal or oxide. Preliminary results of this test-work are very encouraging. This supplier has about 100 short tons of this material and our processing of it could result in a mutually beneficial arrangement. During the decrease of supply the Company supplemented its feed in Montana from material processed at its smelter in Mexico.

During the nine months ended September 30, 2022, the average sales price for antimony increased $2.59 per pound compared to the nine months ended September 30, 2021. Gross profit per pound increased $1.71 per pound over the three months ended September 30, 2021.

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