After a string of sub-par market performances, U.S. Precious Metals, Inc. (OTC:USPR) finally managed to make a difference. Yesterday, USPR stock surged significantly on a volume that turned out to be the company’s highest in months.
Although USPR has not filed any official press releases for quite a while now, USPR stock somehow became subject to increased investor attention yesterday. Not only did it gain 20% in value, but also it managed to do so by shifting a staggering 1.76 million shares. The latter ended up being a new 3-month record for the company.
As mentioned above, USPR’s latest news dates back to mid-September when the company’s management announced a scheduled site visit to its Solidaridad property in Mexico. The news failed to impress traders and USPR lost 4% on that same day.
In terms of finance, the company submitted a comprehensive 10-Q report more than a month ago. Covering the quarterly period ended Aug. 31, the document contained:
- cash reserves of approx. $80K;
- $100K in current assets vs. $5.3M in current liabilities;
- quarterly loss in excess of $0.65M.
Along with the numbers, the report also provided information with regard to the convertible notes USPR issued in 2009. As it is, the company has failed to pay a total of $1.4M in principal and accrued interest by Dec. 31, 2010. What is even worse is the fact that USPR currently seems unable to lift its debt burden without external financing. To get it, however, managers will have to present good news to their stockholders. The sooner, the better.
