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US Gold (USAU) Crazy Value Play


GSV / Barrick Geological experts moved to USAU

GSV / PGLC Executives Involved

Market Cap versus indicated reserves seems way out of whack.

U.S. Gold Corp offering a compelling risk-reward.  Its symbol was DRAM up until a couple of weeks ago and now it trades under USAU.  Unfortunately its been a bumpy road since this Gold company reverse merged into a DRAM company.  Maybe some of you can benefit from my pain.  

USAU currently trades toward the low end of its 52 week range.  They've pulled together a solid team that seem to be putting their reputations on the line.  They came from Barrick, GSV and PGLC.  If you research the filings on for GSV and PGLC, this team appears to be legit.  And everyone knows Barrick.

The short story is they think their Keystone Property could be a home run.  I don't know if they've said a number out loud, but one could infer it may be worth Billions or ZERO.  So forget that for now.  A second property, Copper King, has been valued at $159.5 net present value in 2012.  Its probably worth a little more now.

So the USAU stock, which trades around $3, has a market cap of around $40 million, or about 25% of Copper King.  Don't pay attention to most market caps on the services, because they aren't up to date.  So then there is Keystone.  There are tons of interviews with Dave Mathewson and Ed Karr that have been popping up lately.  They seem to be juiced about Keystone.  Here is one example:

So add $300 million for a Keystone dream NPV.  That puts the stock at, well, CHEAP for a risk taker.  Divide whatever NPV guess you make by the all in converted 13 million shares to get a potential value.

The one thing I don't like about this stock is that they have to use odd methods to get the message out.  Youtube videos, smallcap press, stock newsletter blasts, and stuff that I normally associated with scams.  But if you research these people, they are real mining professionals.  So I'm in.  This is one of 3 stocks I own that seem to have crazy upside and this is the craziest.

Company's presentation

Disclosure:  Long for better or worse...

Disclosure: I am/we are long DRAM.

Additional disclosure: Done a ton of reading on this, so I may be able to answer question if anyone has them. I'm not an investment advisor, nor do I want to be. This is my own opinion based on research on, talking to IR, and reviewing publicly available information.