BlackRock gets more skin in the Antimony game

Renowned and controversial asset management firm BlackRock Inc (NYSE: BLK), one of the top shareholders in approximately 88 per cent of S&P 500 (INDEXSP: .INX) companies, has boosted its interest in the antimony mining industry. BlackRock currently has a whopping US$11.5 trillion in assets under management, serving clients in more than 100 countries.

United States Antimony Corp (NYSEAMERICAN: UAMY) revealed Wednesday that BlackRock had bought up another 1.8 million of its shares, thereby upping its stake to 5.1 per cent. The firm held an estimated 3.5 per cent interest previously. The increase was shown in BlackRock’s recent 13F filing with the SEC.

The investment comes as the price of antimony has reached historic heights and demand is soaring, particularly in the United States where BlackRock was founded. Trade war tensions with China, a nation that completely cut off its immense supply of the commodity to the U.S. in December, have made it a very popular topic among investors.

U.S. Antimony is one of the companies that has been pulling the spotlight more than others. It currently holds the only antimony smelter of scale in the U.S., in Montana. The mineral processing company is also the only American operator that sells antimony products, such as trisulfide, antimony oxide and antimony metal.

Last week, U.S. Antimony revealed that heightened demand has inspired a 500 per cent expansion of the Montana smelter, made possible with a US$15-million-dollar investment. The increasing supply shortage also prompted the company to restart another one of its smelters in Mexico last month.

BlackRock’s UK subsidiary currently manages the BlackRock World Mining Trust Plc (LON: BRWM), showcasing the firm’s significant involvement in the international mining industry. It is compromised of a diverse portfolio of metals, mining securities and royalties.

In Q1 results, released on Thursday, U.S. Antimony reported a 128 per cent year-over-year increase in revenue at US$7 million, highlighting the heightened demand for its products.

“Becoming the only fully-integrated antimony company in the world, with the exception of China, gives us tremendous optionality and enhanced earnings capability,” Chairman and CEO, Gary Evans, boasted in a release about the results.

U.S. Antimony stock went from being worth a mere US$0.22 last May to US$3.52 this week. Antimony was only valued at US$11,600 per tonne in early 2024 and has since skyrocketed to over US$59,000 a tonne.

The metalloid element is an essential component in various military technologies and electronics. Night vision goggles, armour-piercing bullets, missiles, drones, fighter jets and much more. The American military needs alot of it, and federal agencies, like the Department of Defense, want to reduce reliance on foreign suppliers for national security purposes.