U.S. GoldMining Reports Net Loss, Decrease in Cash and Cash Equivalents in Latest Quarter

U.S. GoldMining Inc. reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company experienced a notable decrease in cash and cash equivalents, which fell to $4.4 million from $11.2 million as of December 31, 2023. Total current assets also declined to $5.3 million from $11.8 million, while total assets decreased to $6.4 million from $12.8 million during the same period. Conversely, total current liabilities increased to $665,859 from $475,378, and total stockholders’ equity dropped to $5.4 million from $12 million.

For the three months ended September 30, 2024, U.S. GoldMining reported a net loss of $4.3 million, compared to a loss of $3.2 million in the same period of 2023. The basic and diluted loss per share increased to $(0.35) from $(0.25). The increase in losses was primarily attributed to higher exploration expenses, which rose to $3.9 million from $2.5 million year-over-year. Drilling costs specifically surged to $1.9 million from $805,470, reflecting an earlier start to the drilling program at the Whistler Project.

For the nine months ended September 30, 2024, the net loss was $6.8 million, a slight improvement from a loss of $7.1 million in the prior year. The basic and diluted loss per share for this period was $(0.55), compared to $(0.62) in 2023. Exploration expenses for the nine months totaled $5.2 million, up from $3.3 million in the previous year, while general and administrative expenses significantly decreased to $1.8 million from $4.1 million, reflecting reduced spending post-IPO.

The company has not generated any revenue from operations and continues to rely on financing from its parent company, GoldMining Inc., and proceeds from its IPO, which raised approximately $19.1 million in April 2023. U.S. GoldMining has also entered into an agreement with Equity Geoscience for a $3.5 million exploration program at the Whistler Project, with an option for additional expenditures.

As of September 30, 2024, the company had working capital of $4.6 million, down from $11.3 million at the end of 2023. The company is required to make annual land payments of $230,605 for the Whistler Project starting in 2024, alongside an annual labor requirement of $135,200. The company has also incurred allocated costs from GoldMining totaling $23,877 for the nine months ended September 30, 2024, compared to $70,374 in the same period of 2023.