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US Gold Corp. Reports Operating Results (10-Q/A)

February 03, 2011 | About:
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10qk

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US Gold Corp. (UXG) filed Amended Quarterly Report for the period ended 2010-09-30.

Us Gold Corp has a market cap of $772.2 million; its shares were traded at around $6.57 . Mutual Fund and Other Gurus that owns UXG: Murray Stahl of Horizon Asset Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

As of September 30, 2010, we had working capital of $20.8 million, comprised of current assets of $24.5 million, which includes $4.6 million of gold bullion, and current liabilities of $3.7 million. This represents a decrease of approximately $21.7 million from the working capital of $42.5 million at year end December 31, 2009.

Net cash used in operations for the nine months ended September 30, 2010 increased to $19.3 million from $11.4 million for the corresponding period in 2009, mainly due to increases in cash paid to suppliers and employees. Cash paid to suppliers and employees increased to $19.4 million during the 2010 period from $11.4 million during the 2009 period, primarily reflecting increased exploration activities in Mexico and Nevada. Cash provided by investing activities for the nine months ended September 30, 2010 was $8.6 million, primarily due to the redemption of our short-term US Treasury Bills of $12 million that matured during the second quarter of 2010 and was partially offset by additional purchases of gold bullion and land in Mexico. Comparatively, cash used in investing activities for the same period in 2009 was $2.2 million primarily from the purchase of gold bullion and partially offset by proceeds from the disposal of equipment.

For the nine months ended September 30, 2010, we recorded a net loss of $25.8 million, or $0.21 per share, compared to a net loss for the corresponding period of 2009 of $23.8 million or $0.22 per share. The increase for the 2010 period compared to the 2009 period reflects our accelerated exploration efforts in Mexico and Nevada.

Property holding costs during the first nine months of 2010 increased by $1.1 million to $4.8 million compared to $3.7 million for the same period in 2009, mainly due to an accrual of $0.7 million in response to the Nevada Legislatures enactment of Assembly Bill 6, which imposed an additional fee on ownership of unpatented mining claims, and an increase in our annual royalty payment to the lessors of our Nevada properties as a result of the increase in gold prices in January 2010. Exploration costs for the first nine months of 2010 increased by $6.9 million to $13.1 million as compared to $6.2 million for the same period of 2009, reflecting an increase in exploration activities at the Gold Bar and Limo projects in Nevada and at the El Gallo project in Mexico.

For the three months ended September 30, 2010, we recorded a net loss of $8.2 million, or $0.07 per share, compared to a net loss for the corresponding period of 2009 of $15.1 million or $0.12 per share. There was a decrease for the 2010 period compared to the 2009 period as there were no write-offs of mineral property interests in 2010 as compared to $10.0 million (net of future income taxes recovery of $5.1 million) in 2009.

Property holding costs for the third quarter of 2010 increased by $0.8 million to $2.7 million compared to $1.9 million for the same period in 2009, mainly due to an accrual of $0.7 million in response to the Nevada Legislatures Assembly Bill 6 discussed previously. Exploration costs for the third quarter of 2010 increased by $2.2 million to $4.7 million as compared to $2.5 million for the same period of 2009, reflecting an increase in exploration activities at the Gold Bar and Limo projects in Nevada and at the El Gallo project in Mexico.

Read the The complete Report

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10qk
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