Our esteemed elected officials in Washington are playing games with us. And if the debt ceiling isn't approved shortly…we are all screwed. Not only will most stocks go down, but the economy will also suffer as well. But I'm not writing today to get all doomy and gloomy. I just want you to be prepared. If this debt ceiling problem isn't fixed soon, I think it will increase the prices of gold and silver. And that could be good news for shareholders of U.S. GoldMining Inc., a recent pump I've been getting emails about. U.S. GoldMining Inc. (NASDAQ: USGO) - 1-month trading range: $8.31- $17.24
- Typical average daily volume: 237,860
- Float: ~ 1.8 million
U.S. GoldMining Inc.'s Business U.S. GoldMining Inc. is an exploration-stage mining company based in Anchorage, Alaska. It started trading under the ticker symbol USGO after a successful $20 million IPO in April 2023. Right now, it's focused primarily on Alaska, specifically the Whistler Gold-Copper Project. The Whistler Project comprises 304 State of Alaska mining claims covering an aggregate area of approximately 172 km2. The Whistler Gold-Copper Project is a large, resource-stage gold-rich copper porphyry deposit located in Alaska. Its indicated resources of 3.0 million gold-equivalent ounces, and inferred resources of 6.5 million gold-equivalent ounces.  Source: U.S. GoldMining Supported by existing infrastructure, including an airstrip and camp, the project can potentially be a significant source of gold and copper for its shareholders without the need for capital investment.   In addition to the Whistler project, GoldMining controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, the U.S.A., Brazil, Columbia, and Peru. You want to become familiar with the management team whenever you're betting on a new company. Is this their first rodeo, or do they have the experience and skills to execute?  Source: U.S. GoldMining And it appears that they check all the boxes. Financials  Source: Stockanalysis.com USGO will be losing money until it strikes gold…literally. On the bright side, the company did raise $20 million from its IPO. In addition, on August 22, 2022, it entered into a funding agreement with GoldMining, its parent company. The terms of the deal state that GoldMining is committed to funding USGO until May 22, 2024. I know, not a lot of runway. But it's more than enough to get the operations up and running.  Hopefully, the general and administrative expenses surge is related to the company's IPO or some other one-off event. While the fundamentals might not be enough to draw in investors, a strong pump from the right promoter is all you need if you're chasing fast money. Promoter Activity I found out about this mining play via several emails from the same promoter. The promoter mentions that USGO has - An on-site treasure trove of prime gold and copper just waiting to be unleashed.
- A gold-copper deposit of massive potential
- State-sanctioned road construction set for 2025
- A battle-hardened management team with a solid track record
- $20 million was raised from its IPO.
- Insiders own 85% of the stock
- Bullish price action in the stock
- Overall bullish sentiment for gold
With gold topping $2,000 an ounce recently, the promoter does a good job of positioning USGO as one of the best ways to get access. Additionally, highlighting the IPOs recency is a great way to attract traders looking for price volatility. The promoter was paid $20,000 for a two-day awareness campaign beginning on 5/17 and ending on 5/18. Straight to the Facts We are just another financial disaster away from pushing gold prices higher. Heck, if the debt ceiling is not raised later this month, the U.S. could default on its debt, devastatingly impacting the economy and stock market. However, that would likely drive the price of gold and silver up. And while we're unsure how the politics will play. All we need is a few days of fear and doubt, which could be enough to push gold stocks higher. Given how hot this topic will be over the coming days and weeks, make sure to have a list of gold stocks on your watchlist. And yes, that includes USGO. Always at your service, Baron Von Stocks |
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