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

August 07, 2009 | About:

US Gold Corp. (UXG) filed Quarterly Report for the period ended 2009-06-30.

U.S. GOLD CORP. is primarily engaged in the precious metal mining business in the continental United States however it may also evaluate properties outside the United States. US Gold Corp. has a market cap of $300.1 million; its shares were traded at around $2.93 .

Highlight of Business Operations:

As of June 30, 2009, we had working capital of $49,111,332, comprised of current assets of $51,621,844 and current liabilities of $2,510,512. This represents an increase of approximately $38,840,271 from the working capital of $10,271,061 at fiscal year end December 31, 2008. This excludes amounts which can be drawn under the credit facility.

Net cash used in operations for the six months ended June 30, 2009 decreased to $5,812,604 from $8,605,219 for the corresponding period in 2008. Cash paid to suppliers and employees decreased to $5,812,604 during the 2009 period from $8,916,429 during the 2008 period, primarily reflecting reduced exploration and general and administrative expenses. Cash used in investing activities for the six months ended June 30, 2009 was $96,420, compared to $286,618 in the comparable period of 2008.

Property holding costs during the 2009 period decreased by $257,897 to $1,794,428 compared to $2,052,325 in 2008. Exploration costs during the 2009 period decreased by $210,794 to $3,624,042 as compared to $3,834,836 for the same period of 2008, reflecting a slight reduction in exploration activities in Mexico.

Accretion of the asset retirement obligation in Nevada and Mexico for the six months ended June 30, 2009 slightly decreased to $266,314 compared to $279,972 in the same period of 2008. Interest income in the 2009 period decreased to $59,680 compared to $374,319 in 2008, reflecting lower average levels of interest-bearing deposits during the 2009 period as well as lower interest rates. During the 2009 period, we recorded a foreign currency exchange gain of $44,866, reflecting a weakening US dollar against the Canadian dollar and its effect on the net monetary assets or cash that are denominated in Canadian dollars.

Property holding costs during the 2009 period decreased by $504,186 to $308,617 compared to $812,803 in 2008, mainly due to decrease in discretionary spending and favorable foreign exchange in Mexico. Exploration costs for the second quarter of 2009 increased by $356,641 to $1,900,116 as compared to $1,543,475 for the same period of 2008, reflecting an increase in exploration activities at the Gold Bar and Limo projects in Nevada.

Accretion of the asset retirement obligation in Nevada and Mexico for the three months ended June 30, 2009 decreased slightly to $133,393 compared to $139,587 in the same period of 2008. Interest income in the 2009 period decreased to $24,921 compared to $162,511 in 2008, reflecting lower average levels of interest-bearing deposits during the 2009 period as well as lower interest rates. During the second quarter of 2009, we recorded a foreign currency exchange gain of $329,975, reflecting a weakening US dollar against the Canadian dollar and its effect on the net monetary assets or cash that are denominated in Canadian dollars.

Read the The complete Report

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