Penny Stock: Why is United States Antimony (UAMY) Pushing Higher?

UAMY has been one of the top gainers in the market recently.

United States Antimony Crop. (UAMY) shares have been on a roll for some time now. In the pre-market on Feb. 10, UAMY soared up to 70% to $1.80. With nothing much exclusive, the natural resource company’s stock is on investors’ radar. 

However, some notable developments that have recently occurred might have a role to play in the bullish movement of UAMY. So, let’s see what’s keeping the investors’ enthusiastic.

What’s Happening?

United States Antimony Corp. (UAMY) is one of the fast-growing natural resource firms. The company is increasing its raw material supply of antimony from places in Mexico and third-party nations worldwide.

The company’s core resource, Antimony is one of the key components used in batteries. In the recent past, we have seen a surge in demand for EV batteries—as electric vehicle production is continuously increasing. So, UAMY might be gaining with its correlation with the EV market. This is one of the hypotheses that could possibly be moving the shares price.

As per a recent Form 8-K, the company reported that Lloyd Joseph Bardswich has become part of the board of directors of UAMY. Lloyd has joined the firm as of Feb. 9, 2021. The new board member brings extensive experience in mining, management, plant design, drilling, engineering, and metallurgy.

Moreover, Bardswich is a professional mining engineer, which brings an extra edge to his services for the company—as he can play his role as a specialized person. However, the company is yet to inform which committees he would be part of and in which capacity he would serve the board.

Furthermore, in the same filing, the company also revealed that it has signed a non-binding letter of interest with AMBRI for the possible delivery of antimony. AMBRI is a startup whose focus is to produce off-grid storage batteries for wind storage and solar power systems.  

In the past week, United States Antimony closed its concurrent private placement and registered direct offering, with its institutional investors. Based on the offering agreement, certain institutional investors were to purchase almost $10.7 million of UAMY’s common stock and warrants.

Following the payment of placement agent fees and other offering expenses, the company obtained approximately $9.9 million in net proceeds.

Conclusion

Investors have been enjoying the bullish run and have made profits as the penny stock trades above $1. Now, it’s not the time to jump in as United States Antimony Corp. (UAMY) shares would plunge back to the real price. But, with its potential linkage with the EV market, UAMY should be a bigger performer in the future.

Latest Posts