Defense Boom on Shaky Ground: Antimony Resources Reaps the Benefits, Risks at RTX and Olin

RTX Corporation Feels the Technological Bottleneck

RTX Corporation is an example of the dilemma facing defense giants. In February, the company signed five framework agreements with the US Department of Defense to accelerate the production of guided missile systems such as the Tomahawk, the AMRAAM, and the Standard Missile. However, behind these expansion plans lies a critical dependence on high-purity antimony compounds for the infrared seeker heads of these weapons. Missiles like the AMRAAM rely on so-called indium antimonide detector technology for their precise targeting. Since China is blocking the supply of antimony derivatives for military purposes, RTX faces the challenge of securing production. A disruption in supplies could bring modern weapons factories to a standstill despite full order books, making the group's current valuation vulnerable.

Olin Corporation Suffers from Margin Pressure in Ammunition

While RTX operates in the high-tech sector with its guided missiles, Olin Corporation, through its Winchester division, specializes in traditional ammunition. Olin operates the Lake City Army Ammunition Plant, the US Army's central production facility. The quarterly figures highlight the raw materials crisis, as Winchester's segment profit plummeted in the fourth quarter of 2025 from USD 42.0 million in the prior year to USD 0.6 million, even though revenue remained stable at USD 449.4 million. The margin loss stems primarily from rising costs for raw materials such as antimony, which is essential for primer production. Since Olin maintains long-term supply contracts with the military, these costs could not be passed on immediately. The planned new 6.8 mm facility at the site now depends entirely on the availability of these ignition components.

Antimony Resources Provides the North American Solution

In the current environment of raw material shortages and geopolitical necessity, exploration companies like Antimony Resources are coming into focus. With Project Vault, the US has launched a strategic stockpiling program in which an initial USD 12 billion is to be invested to strengthen domestic supply chains. With the Bald Hill project in the Canadian province of New Brunswick, Antimony Resources controls the largest known antimony deposit in North America and is positioning itself to benefit from this development directly. The historically known deposit has been re-evaluated using modern exploration techniques and is characterized by high grades. For example, drilling returned 3 m with grades between 3% and 4% antimony, with individual sections yielding peak values of over 11%. A technical report from 2025 estimated the potential at approximately 2.7 million tons of mineralized rock, which would correspond to a metal content of 81,000 to 108,000 tons of pure antimony.

Drilling Program and Market Correction Offer Entry Opportunities

The year 2026 marks Antimony Resources' transition from explorer to developer. Management is currently carrying out a 10,000-meter drilling program designed to provide the data for an initial official resource estimate in accordance with the NI 43-101 standard. By mid-March, over 5,000 m of drilling had already been completed, with the discovery of the so-called Marcus Zone, featuring massive stibnite mineralization over a 25-meter length directly at surface, providing additional potential. The drilling program is scheduled to be completed in April, which will drive the news flow through subsequent lab results well into the summer.

Last Wednesday, Antimony Resources' stock experienced a technical correction amid a sector-wide movement. Following a rally that drove the price to an all-time high the previous day, profit-taking occurred, partly due to a brief strengthening of the US dollar. For strategically oriented investors, this pullback opens a window of opportunity. The fundamental outlook has not deteriorated; rather, signals of scarcity from companies such as Olin and RTX are growing increasingly strong. Since NATO countries must replenish their stockpiles for the coming years regardless of economic cycles, structural demand for antimony is assured. The upcoming release of the first official resource estimate is likely to propel the company into a new phase. Investors find in Antimony Resources an exciting opportunity to invest at the beginning of the supply chain in a megatrend that must be considered extremely robust given the overall geopolitical situation.