Release Date: August 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenues increased by 26% for the period, driven by higher antimony sales volume and increased zeolite sales prices.
- Gross profit rose by 122%, attributed to improved efficiencies in the antimony business.
- The company reported a net income from continuing operations of $30,000, indicating a positive turnaround.
- Antimony sales increased by 36% over the prior year, with gross margins more than doubling.
- The company has successfully reduced its backlog in the zeolite business, achieving a 94.3% run time and building inventory.
Negative Points
- Operating expenses increased by $1.1 million, primarily due to non-cash stock compensation, project costs, and increased salary and Board fees.
- The zeolite business experienced a decrease in gross profit by $397,000 and a loss from operations worsened by $540,000.
- Discontinued operations in Mexico generated a loss of $150,000 despite higher sales.
- The average antimony sales price per pound was lower than the market price due to processing customer-owned ore.
- The company faces challenges in securing additional antimony supplies and is working on improving its flotation capabilities.
Q & A Highlights
Q: Seeing that Bear River Zeolite has finally had equipment and people upgrades, how big could this part of your business become and in what time frame?
A: Gary Evans, Co-CEO, stated that the potential for the zeolite business is significant, depending on market demand. They are targeting large markets such as cattle feed, water treatment, and nuclear waste cleanup. The company is prepared to expand capacity once they secure sufficient orders, with reserves expected to last for centuries.
Q: How do you plan to be successful with CattleMax while other companies, including one of your customers, have a product serving the segment?
A: Gary Evans explained that they aim to attract new customers who are not currently using zeolite, focusing on nutritionists who influence cattlemen. They will continue to sell to existing customers and are open to private labeling arrangements to avoid conflicts.
Q: Regarding zeolite, is there potential for selling into mining companies for air filtration after blasting, especially in Canada?
A: Gary Evans confirmed they have a salesman in Canada and are shipping material there. Lloyd Bardswich, Co-CEO, added that zeolite can absorb ammonia from explosives and remove metal ions from water, indicating growth potential in this specialized market.
Q: What can you tell us about zeolite acquisitions, which were an initiative mentioned last year?
A: Gary Evans mentioned they have been working on an acquisition for eight months but encountered issues. They are in standby mode, waiting for the seller to meet certain conditions, and are also exploring another transaction.
Q: How will you bring back the BRZ business to profitability?
A: Gary Evans noted that the BRZ business reported profitability this quarter. The focus is on increasing sales and reducing capital expenditures. They are also working on a second transaction to further enhance profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
