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Comstock Mining (NYSEMKT:LODE) reports a mining revenue of $5.9 million in Q1 2015 – a 6% increase from Q1 2014. Net income was $1.3 million, with metallurgical yields improved to 81% in Q1 2015 compared to 74% in Q1 2014. In Q1 2015, the company reports improvements in: weighted average gold grades by 63%, weighted average silver grades by 113%, metallurgical yields by 81%, strip ratio to 1:1, and silver to gold production exceeded an 11:1 silver to gold ratio.
As quoted in the press release:
First Quarter 2015 Selected Strategic and Operational Highlights
- Costs applicable to mining revenue were reduced by 22% when comparing Q1 2015, to Q1 2014.
- Weighted average gold grades improved 63% to 0.039 opt in Q1 2015, from 0.024 opt in Q1 2014.
- Weighted average silver grades improved 113%, to 0.734 opt in Q1 2015, from 0.345 opt in Q1 2014.
- Silver to gold production exceeded an 11:1 silver:gold ratio in Q1 2015, up from 9:1 in Q1 2014.
- Metallurgical yields improved to 81% in Q1 2015, from 74% in Q1 2014.
- Strip ratio improved to 1:1 for the first quarter of 2015, down from the 2014 average of 4.8:1.
- Encountered significant high grade intercepts from Succor-Holman mineral patents drilling program.
- Commenced moving State Route 342 (‘SR-342’), accelerating operational and community benefits.
- Expanded our landmark special use permit for mining and mine development.
- Expanded our land position, acquiring lands immediately adjacent to our mine area and leach pad.
- Expanded our existing heap leach pad consistent with recently expanded Water Control Permit.
- Enhanced Senior Mining, Financial and Environmental Management, adding operational, environmental and financial strengths to our team while reducing overall costs.
First Quarter 2015 Selected Financial Highlights
- Mining revenue was $5.9 million in Q1 2015 as compared to $5.6 million in Q1 2014, an increase of 6%, resulting from higher gold ounces produced and higher average gold price per ounce.
- Costs applicable to mining revenue was $3.7 million in Q1 2015, as compared to $4.8 million, net of silver credits, in Q1 2014, a decrease of 22%, primarily due to mining cost reductions.
- General and administrative expenses were $2.1 million in Q1 2015, as compared to $2.2 million in Q1 2014, primarily due to lower labor costs of $0.5 million, offset by severance of $0.4 million.
- Net income was $1.3 million, or $0.01 per share for Q1 2015, as compared to a loss of $3.8 million, or $(0.07) per share, for Q1 2014. The improvement resulted from lower costs, higher revenue and the elimination of certain liabilities that strengthened our balance sheet.
- Net cash generated by operating activities was a positive $0.2 million in Q1 2015, as compared to a cash use of $2.4 million from operations in Q1 2014, or a 109% improvement.
- Net cash used for investing was $3.1 million for the first quarter of 2015, primarily from $1.7 million for strategic land purchases and $1.1 million for the expansion of the processing facility.
- Net cash provided by financing activities for the first quarter of 2015, was $1.8 million comprised of proceeds of $4.4 million from the Revolving Credit Facility, partially off-set by a $2.7 million pay-down of other long-term debt obligations. Cash and cash equivalents at March 31, 2015 were $4.2 million.
- Total long-term debt and capital lease obligations were $14.1 million at March 31, 2015, including $5 million outstanding on the Revolving Credit Facility.
Comstock Mining CEO, Corrado De Gasperis, said:
We have continued our crusade for lower costs into 2015, with substantially improved grades, yields and strip ratios while reducing absolute spending wherever possible. We also commenced the re-routing of SR- 342, and have safely accelerated many operating, environmental and community benefits. These achievements have positioned us for profitability throughout 2015.
Click here to read the Comstock Mining (NYSEMKT:LODE) press release
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