Funding uncertainty threatens Antimony Resources’ path to commercial production

Going Concern Warning Overshadows Production Push

Antimony Resources Limited (ASX:ANT) is presenting itself as a near-term producer, but its annual report puts the funding challenge in plain view. The company reported a A$7.00 million loss for the year ended 30 June 2026, operating cash outflows of A$4.83 million and only A$355,087 in cash at year end.

Grant Thornton issued an unmodified audit opinion, while drawing attention to a material uncertainty related to going concern. The accounts say additional funding will likely be required within the next 12 months to meet planned exploration, development and corporate expenditure. Management expects to pursue options including equity raisings, sales of proof-of-concept concentrate, offtake agreements and other funding alternatives, but the report does not establish that those sources will be available on acceptable terms.

Tecomatlán Moves Into Proof-of-Concept Processing

The operational case rests largely on Tecomatlán, a 150-tonne-per-day antimony concentrator about 50 kilometres from Los Lirios in Oaxaca. Antimony Resources says it has integrated gravity and flotation circuits after testwork showed materially higher recovery from adding flotation, with commercial operation targeted for the second half of calendar 2026.

That target is now being tested in the plant rather than on paper. Following a five-year ore supply agreement with Lucero Grupo Minero de Puebla, approximately 200 tonnes of antimony-bearing material was delivered in September and crushing and screening began. The campaign is intended as a proof of concept, so it should not yet be read as evidence of sustained commercial production or established operating economics.

Los Lirios Exploration Target Remains Conceptual

At Los Lirios, maiden drilling, channel sampling and geophysics supported the company’s interpretation of a shallow, laterally extensive carbonate replacement system. In June, it outlined an Exploration Target of 1.8 million to 5.0 million tonnes containing 70,000 to 166,000 tonnes of antimony metal across three zones.

Those figures are conceptual and are not a JORC Mineral Resource estimate. The company says Phase 2 drilling is being planned to support a maiden resource in the second half of calendar 2026. A laboratory result of 2.2 metres at 5.20% antimony was reported from the Cofradia zone, but the broader tonnage and contained-metal range remains subject to further exploration and resource definition.

Capital Raising Buys Time, Not Certainty

After year end, Antimony Resources completed a non-renounceable rights issue that raised approximately A$1.52 million before costs. It also approved an unsecured A$500,000 loan facility from Allgreen Holdings, an entity related to former director Adrian Paul, bearing interest at 10% a year. These measures provide additional liquidity, but the auditor’s warning makes clear that the company remains dependent on further financing as it advances the Mexican projects.

The company has also changed its identity and capital structure: EV Resources became Antimony Resources, the ASX code changed from EVR to ANT, and a 10-for-1 consolidation took effect in September. The management transition adds another moving part, with Shane Menere becoming Executive Chairman, Miguel Barahona appointed Interim Chief Executive Officer and Mike Brown departing as Managing Director and CEO.

Antimony Resources now has several near-term tests rather than a single headline milestone: whether Tecomatlán can process its initial feed reliably, whether third-party ore supply can be sustained, whether Los Lirios converts its Exploration Target into a JORC resource, and whether fresh capital arrives before the cash position tightens again.