United States Antimony’s (UAMY) shares tumbled about 9% on Friday afternoon after the American critical minerals producer criticized a report by Reuters as “inaccurate, misleading, and inconsistent.”
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U.S. Signals Step Back from Mineral Price Support
The media company reported on Thursday, citing multiple sources familiar with the matter, that President Donald Trump’s administration intends to suspend plans to guarantee a minimum price for U.S. critical minerals projects. The report cited three attendees of a closed-door meeting between the Trump administration’s officials and industry executives as saying their projects would need to stand on their own.
Furthermore, the report cited another government official as saying the Trump administration was looking into deploying its executive power to enforce a market-wide price floor on certain minerals, rather than engaging in negotiations with individual companies.
U.S. Antimony Knocks ‘Speculative’ Report
In a statement released on Thursday, U.S. Antimony lambasted the report as representing “a pattern of speculative reporting that mischaracterizes U.S. government policy and creates unnecessary confusion in the world markets.” The company noted that antimony remains a designated critical mineral for U.S. national security and that the firm remains aligned with its government partners.
“U.S. Antimony maintains binding, long-term relationships and contractual arrangements with U.S. government agencies that remain fully in effect,” the company noted. “There has been no change to our agreements, no change to government obligations, and no impact to our current operations or future outlook.”
MP Materials (MP), whose price floor extension from the U.S. government is currently under review by a U.S. Senate committee, also criticized the report in a statement posted on Twitter. However, Reuters noted that its article did not suggest any part of MP’s arrangement with the U.S. government was at risk.
U.S. and G7 to Tackle China’s Dominance in Rare Earth
As a mining and critical minerals company, U.S. Antimony primarily produces antimony, which is used as a flame retardant in plastics and textiles. The company also makes zeolite, which is used for water filtration and odor control, as well as recovers gold and silver as byproducts of its manufacturing activities.
The report comes at a time when the G7 is reportedly considering using price floors for rare elements to counter China’s dominance. Earlier this month, the U.S. also hosted talks with G7 countries on the matter.
Is UAMY a Good Stock to Buy?
On Wall Street, United States Antimony’s shares currently boast a Strong Buy consensus rating from analysts based on three Buys issued over the past three months. In addition, the average UAMY price target of $10 implies about 34% upside.
