Global Antimony Shortage Is a Ticking Time Bomb for the U.S. Military

At the Trojarova Antimony Project, which could turn Slovakia into a European critical minerals hub, Military Metals Corp. says that underground development of this historical resource, funded by the Slovakian government, was shuttered in the 90s "prior to reaching the richest part of the deposit".

Back then, with the Cold War winding down, and antimony already having served its purpose as the hero of World War II, the motivation just wasn't there.

Today, the situation is very different, and EU'S Trojarova project--with a historical resource of over 61,998 tons of antimony worth around $2billion in situ value at today's spot prices—could now become a military kingmaker. But Military Metals Corp. isn't concentrating all of its effects on a single continent: it's also making huge moves back in North America, in Canada's famous WWI antimony mine in Nova Scotia.

Military Metals Corp. is sitting on a recently acquired historical antimony/gold play, the West Gore Antimony Project—one of Canada's biggest past producing antimony mine and a key supplier to the Allied Forces in WWI.

It's an impressive historical resource, with historical drilling results demonstrating over 7 meters of 10.6 gpt gold and 3.4% antimony. 

It's not stopping there, however. On October 24^th, 2024, the company pounced on another opportunity to further consolidate this territory by signing an LOI to acquire more claims flanking West Gore.

The move to consolidate territory surrounding West Gore—one of the biggest heroes of WWI—is a strategic move that could tie the junior miner directly to North American defense at a time when prices are skyrocketing.

The Antimony Land Rush is a Junior Game

This smart, fast-moving investment strategy could, according to Forbes, be the "latest to generate short-term profits of more than 100% on money invested". Forbes was right, even if it underestimated the returns. Shares in junior mining stocks focused on antimony have surged recently, netting investors up to 800% returns in a very short time.

Australian ASX-listed companies were the first to light up the exchange, with shares in domestic Larvotto Resources Ltd. (LRV) surging over 800% in the past six months. The Australian government has placed antimony on its critical metals list, and Australian traders are calling it an "antimony party". But compared to its closet peer, Perpetua Resources, Military Metals Corp. appears to have quite a lot of room to run, based on resource estimates and current valuation.

Perpetua is currently valued at around $700 million, with ~90,000 tons of antimony. The U.S. government is in the process of providing a $1.86 billion loan to Perpetua to have their Antimony mine in production by 2029.

Military Metals Corp. is valued at only $23 million right now; but its new play in Slovakia is valued at $2 billion in situ of ore at today's Antimony spot prices that keeps climbing every week. And that's only one of its new antimony acquisitions. When you add the potential of West Gore in Nova Scotia, valuations could get even more attractive.

Pricing Power on the Brink of War

Military Metals Corp. CEO Scott Eldridge sees a major antimony supply crunch coming. He's certainly not alone.

"An extreme supply shortage since April has led to the sharpest price rally ever recorded in the antimony market since Fastmarkets started pricing the metal back in the early 1980s," according to the UK's Minor Metals Trade Association (MMTA).

"The military uses of Sb [antimony] are now the tail that wags the dog. Everyone needs it for armaments so it is better to hang onto it than sell it," Christopher Ecclestone of London-based Hallgarten & Company recently told the Financial Review, calling it a "sign of the times".

"This will put a real squeeze on the US and European militaries," Ecclestone added.

Germany has essentially been demilitarized, with its own defense ministry estimating it has about 2 days of ammunition if there is a war with Russia, which it expects to happen within the next few years at most. Germany and the EU have mandated 2 million artillery shells to be manufactured by the end of 2025 with a investment of 500,000,000 euros.

Indeed, antimony prices have more than tripled since earlier this year from $12,000 per ton to over $38,000.

Two major wars are already involving enemies and allies on four continents, and World War III is already underway for all intents and purposes, making Military Metals Corp.'s (MILI.CN; MILIF.QB) strategic acquisition binge a fast-moving opportunity that continues to expand with every day that China squeezes supply and America is stuck playing catch-up.

Other companies that are worth keeping a close eye on:

Northrop Grumman (NYSE: NOC) is a leading global security company providing innovative systems, products, and solutions in autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization to customers worldwide. With approximately 90,000 employees, Northrop Grumman is a major player in the defense and aerospace industry. The company is known for its expertise in developing cutting-edge technology, including stealth aircraft, unmanned aerial vehicles (UAVs), and missile defense systems.

Northrop Grumman's commitment to research and development ensures that its customers have access to the latest technology and capabilities. The company's global presence also allows it to support its customers around the world.

Boeing (NYSE: BA) is the world's largest aerospace company and a leading manufacturer of commercial jetliners, defense, space and security systems, and global services. A major player in the global economy, Boeing employs more than 140,000 people across the United States and in more than 65 countries.

Boeing's commercial airplanes business is one of the company's most important divisions. Boeing is the world's leading manufacturer of commercial airplanes, and its products are used by airlines around the world. The company's defense, space & security business is another key part of Boeing's operations.

BHP Group (NYSE:BHP) is a vital contributor to US security by bolstering key supply chains. As a major producer of metallurgical coal, BHP fuels the US steel industry, which is crucial for infrastructure, manufacturing, and defense. This reduces reliance on potentially unstable coal sources and strengthens the domestic industrial base.

Additionally, BHP's nickel production is essential for advanced technologies used in aerospace, defense, and energy, ensuring the US maintains a technological edge. By sourcing these critical materials from stable partners like Australia, BHP enhances supply chain resilience, mitigating risks associated with geopolitical instability or natural disasters.

Albemarle Corporation (NYSE:ALB) plays a critical role in fortifying US security through its dominance in lithium production. Lithium is indispensable for lithium-ion batteries, which power everything from electric vehicles to military equipment.

Moreover, Albemarle's investments in US lithium production, including its planned North Carolina facility, reduce reliance on foreign sources and contribute to domestic job creation, further strengthening the US economy and national security.

Energy Fuels (NYSE American: UUUU) is a leading U.S.-based uranium mining company, operating the only conventional uranium mill in the United States. They have a diverse portfolio of uranium mines and projects in key uranium districts across the Western U.S. Energy Fuels also produces vanadium, a metal used in high-strength steel alloys and aerospace applications. 

This company matters because they are a crucial player in the U.S. nuclear fuel cycle. Uranium is the primary fuel for nuclear power plants, which provide a significant portion of the nation's electricity.

By. James Stafford

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