BMF Reports short U.S. Gold, warns of 65%-plus downside

BMF Reports has initiated a short position on U.S. Gold (USAU), warning of 65%-plus downside as dilution and financing risks mount. It further states that its “work points to a financing-first model: serial promotions, persistent losses, and heavy dilution risk ahead.” In a recently published report, BMF says that, “From the day U.S. Gold was reborn in the 2017 reverse merger, one fact has remained constant: this company has never generated a single dollar of revenue. Instead, it has piled up $93.4 million in accumulated deficits by April 30, 2025 – a mountain of losses funded entirely by dilution and promotions… U.S. Gold’s financials confirm what the promotions hide: this is not a growth story, it’s a treadmill business. Every dollar raised is quickly burned on overhead, consultants, and incremental drilling, with no revenue in sight. Shareholders are repeatedly diluted, while insiders and promoters are rewarded along the way.” “USAU’s dilution track record is not an unfortunate necessity – it’s a pattern of behavior that benefits insiders and devastates outside shareholders. With a $250M shelf in place, we expect more offerings ahead. For current investors, this means more dilution, more overhang, and more downward pressure on the stock,” it adds.