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

November 06, 2009 | About:
10qk

10qk

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US Gold Corp. (UXG) filed Quarterly Report for the period ended 2009-09-30.

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 $314.9 million; its shares were traded at around $2.97 .

Highlight of Business Operations:

As of September 30, 2009, we had working capital of $45,683,738, comprised of current assets of $47,772,155, which includes $2,738,845 of gold bullion purchased during the third quarter of 2009, and current liabilities of $2,088,417. This represents an increase of approximately $35,412,677 from the working capital of $10,271,061 at fiscal year end December 31, 2008.

Net cash used in operations for the nine months ended September 30, 2009 decreased slightly to $14,319,972 from $14,367,155 for the corresponding period in 2008. Cash paid to suppliers and employees decreased slightly to $14,319,972 during the 2009 period from $14,811,260 during the 2008 period. Cash provided by investing activities for the nine months ended September 30, 2009 was $543,878, primarily due to proceeds from the sale of mining equipment in Mexico, compared to cash used in investing activities of $338,133 in the comparable period of 2008.

For the nine months ended September 30, 2009, we recorded a net loss of $23,801,030, or $0.22 per share, compared to a net loss for the corresponding period of 2008 of $124,475,810 or $1.29 per share. Excluding the write-off of long-lived assets recorded during the third quarter of 2009 of $10,000,474 (net of future income taxes recovery), the net loss for the nine months ended in 2009 was $13,800,556 or $0.13 per share. Excluding the goodwill impairment charge recorded during the third quarter of 2008 of $107,017,283, the net loss for the nine months ended in 2008 was $17,458,527 or $0.18 per share.

Property holding costs during the 2009 period decreased by $204,207 to $3,660,836 compared to $3,865,043 in 2008. Exploration costs during the 2009 period decreased by $1,664,545 to $6,154,901 as compared to $7,819,446 for the same period of 2008, reflecting a reduction in exploration activities in Mexico.

For the three months ended September 30, 2009, we recorded a net loss of $15,083,183, or $0.12 per share, compared to a net loss for the corresponding period of 2008 of $114,806,431 or $1.19 per share. Excluding the write-off of long-lived assets recorded during the third quarter of 2009 of $10,000,474 (net of future income taxes recovery), the net loss for the three months ended in 2009 was $5,082,709 or $0.04 per share. Excluding the goodwill impairment charge recorded during the third quarter of 2008 of $107,017,283, the net loss for the three months ended in 2008 was $7,789,148 or $0.08 per share.

Property holding costs during the 2009 period increased by $419,683 to $1,866,408 compared to $1,446,725 in 2008, mainly due to increase in claim fees, utilities and mine site care and maintenance expenditures. Exploration costs for the third quarter of 2009 decreased by $1,819,744 to $2,530,859 as compared to $4,350,603 for the same period of 2008, reflecting an increase in exploration activities at the Gold Bar and Limo projects in Nevada which was partially offset by decreased exploration at Tonkin area projects in Nevada and in Mexico.

Read the The complete Report

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10qk
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