US Gold Corp's Luke Norman describes the opportunities for investors in the current bull market for gold
HOUSTON, TX / ACCESSWIRE / October 8, 2024 / Steadily climbing gold prices over the last two years have triggered a number of opportunities for investors. And the gold bull market shows no signs of slowing down in the immediate future.
Chris Gaffney, president of world markets at EverBank, recently predicted that gold prices will hit $3,000 per ounce in 2025 after correctly predicting the price of gold would exceed $2,450 back in June.
Clearly higher gold prices over the next several months is great news for gold investors.
But for gold mining equities, this bull market presents a truly unique opportunity. As the price of gold rises, gold mining companies see increased margins as well as the ability to expand operations.
One company in a strong position to take advantage of this bull market is US Gold Corp. (NASDAQ:USAU).
Ty Hoffer, President of Winning Media, recently conducted an interview with US Gold Corp Chairman and Co-Founder, Luke Norman.
The discussion focused on rising gold prices, the valuation of gold mining equities, and the company's portfolio of assets, including its CK Gold Project located in Wyoming.
Ty Hoffer, President of Winning Media: Gold has been on a steady climb over the last two years. With prices now over $2,600 do you see this bull market continuing into 2025?
Luke Norman, Chairman and Co-Founder of US Gold Corp: I believe this is the long-awaited bull-cycle in gold, and it has real legs to it. The inflation-weighted gold price will be significantly higher than $2600 USD/oz. It is important to keep in mind that bulls are not easy to ride. False tops and corrections. It's going to be a challenging run.
WM: After the historic run in gold prices, do you still believe gold mining equities are undervalued at current valuations, and if so, why?
Luke Norman: There is no question that the gold mining equities are undervalued. With fuel and energy costs remaining largely stagnant, the profit margins for the producers are skyrocketing. Alternatively, the producers are out looking for "replacement" ounces for their constantly dwindling mineral inventories. As such, money and investment traditionally pour into the developers and explorers. This cycle has barely begun. Capital inflows from generalists, and ultimately the long gold funds, have barely begun. The cycle will result in massive shifts in the mining equities' valuation metrics, bringing them closer to traditional norms in the industry-and like all good bull markets, well beyond.
WM: As higher gold prices generate more interest among investors in the gold mining sector, why is US Gold Corp better positioned than its peers for continued growth?
Luke Norman: There are a multitude of reasons why US Gold is better positioned than its peers for growth in this rising gold price environment:
We are one of the only permitted, shovel-ready gold/copper projects in North America that is yet to be developed. As I stated earlier, producing companies are desperate to replace dwindling ounces from their production assets. Other companies are looking to increase their production profiles to garner a re-rating from the mining analysts. US Gold is in a very unique situation due to this and the M&A interest it will generate as the mining sector gains momentum.
Jurisdiction: Our asset is in the safest mining jurisdiction on the planet-State of Wyoming land. Wyoming is a resource/mining friendly area, with no federal nexus. This was hugely important to the permitting process of the CK Gold project and its ongoing development.
US senior exchange listing: USAU on the NASDAQ affords us the ability to access retail investors throughout the US as well as institutional investors globally. With a very tight share structure, we are very well positioned to make the most out of this burgeoning bull market.
Copper: Our copper component offers diversification of the asset for those who aren't as bullish on the gold-cycle.
Other value metrics around the CK project that have not been valued into the company yet. New generation is going to be key as we unlock these value markers.
WM: Analysts at HC Wainright & Co. and Alliance Global Partners have established an average price target of just over $13 per share for USAU, which has hovered between $5 and $6 since May. What could you see as a potential catalyst for shares moving closer to that target price in the months ahead?
Luke Norman: The catalyst is as previously stated: normal-course capital inflows into the sector as this bull-cycle gets recognized by generalist investors. This catalyst should help US Gold Corp test its historical highs as we continue to establish value at CK and our other assets.
WM: What is the latest on the company's CK Gold Project and has the gold bull market impacted your plans for that project at all?
Luke Norman: We are what is referred to as a "shovel-ready" project, having received all but one final conditional permit: our air quality permit. Additionally, during this engineering and permitting process, we became aware that there is a lot of unquantified value in our waste-rock as a saleable source of aggregate. Therefore, while we see interest and speculation starting to grow in the gold sector, we have a lot of additional value to quantify and add to CK. This project is about to get exciting for all investors.
WM: The company's portfolio of assets includes properties with near-term production as well as considerable blue-sky exploration potential. What can you tell us about some of opportunities at your other projects?
Luke Norman: Our Keystone project in Nevada is very unique. It is a standalone district-scale project, located near Barrick's flagship Cortez complex. It has very similar geology and stratigraphy to its neighbor, Cortez. It is our belief that a number of significant gold deposits are hosted at Keystone, and we are eagerly awaiting market conditions to improve so that we can explore Keystone with the level of interest that it deserves. It is a company maker in its own right. Standby for more on Keystone in the future.
About Winning Media (WM)
Winning Media is the leader in North America focused on providing digital marketing for public companies. We help clients leverage the power of their stories. With over 20 years of experience, we have created hundreds of branding and awareness campaigns for numerous NASDAQ, Canadian dual-listed.
WM primarily focuses on profiling undervalued micro-cap and small-cap stocks and market sectors. WM provides content to investors from direct access to CEOs of small and mid-cap publicly-traded companies.
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Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. WM is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. WM is only compensated for its services in the form of cash-based compensation. WM owns zero shares of US Gold Corp. WM has been paid one hundred fifty thousand dollars by US Gold Corp for various marketing services including this report. WM does not independently verify any of the content linked-to from this editorial.
