Comstock Mining Announces 2015 Year End Results

Comstock Mining Inc. (NYSEMKT:LODE) selected strategic and financial highlights for the year ended December 31, 2015.
As quoted in the press release:

2015 Selected Strategic Highlights

• Expanded land position, acquiring lands immediately adjacent to mining and processing.
• Expanded mining, processing and reclamation permit capacity for mining and development.
• Reduced land obligations and eliminated royalties associated within both of our resources.
• Restructured and simplified the overall capital structure, eliminating all preferred stock, extra voting rights, special rights and restrictions and all preferred stock dividends.
• Constructed the “Harris” underground portal and crosscut toward the Succor target.
• Encountered significant intercepts from Dayton and Succor surface drill programs.
• Encountered significant high-grade intercepts in the PQ underground drill programs.
• Completed the State Route 342 (“SR-342”’) realignment and remediation, under budget.
• Received the “Nevada Excellence in Mine Reclamation” for Keystone mine restoration.
• Recognized, along with the Comstock Foundation for History & Culture, for “Outstanding Rehabilitation of the Historic Upper Yellow Jacket Hoist Works.”
• Restructured and realigned the organization, delivering over $10 million of cost reductions.

2015 Selected Financial Highlights

• Mining revenue was $18.2 million for 2015, as compared to $24.7 million for 2014. The decrease resulted from lower ounces produced from the final phase of the Lucerne surface mining and lower average gold and silver prices. The Company produced 18,455 and 22,925 gold equivalent ounces in 2015 and 2014, respectively.
• Average sales price per ounce of gold was $1,195.10 and $15.78 per ounce of silver, respectively for 2015.  In comparison, commodity market prices averaged $1,160.11 per ounce of gold and $15.70 per ounce of silver for 2015.
• Costs applicable to mining revenue was $10.7 million, net of silver credits, for 2015, as compared to $19.1 million, net of silver credits, for 2014, a decrease of 39% without silver credits, primarily due to higher yields, lower strip ratios, and targeted cost reductions.
• Cost applicable to mining revenue includes $5.4 million of depreciation for 2015 and 2014.
• General and administrative expenses were $6.8 million in 2015, as compared to $6.4 million in 2014, primarily due to higher property and net proceeds taxes.
• Net loss for the year ended December 31, 2015, was $10.5 million or $0.14 loss per share, as compared to $9.6 million or $0.17 loss per share, for 2014, driven by an increase in exploration costs and the road development costs associated with SR-342.
• Net cash used in operating activities for 2015, was approximately $3.0 million, including $2.9 million for the SR-342 road realignment project and $3.3 million for underground drift development and exploration, somewhat offset by the improved gross margin contribution from lower labor, blasting, fuel and equipment costs.
• Total long-term debt and capital lease obligations were $13.3 million at December 31, 2015, including $1.6 million remaining on the Credit Facility.
• During 2015, the Company and Auramet agreed to increase the Credit Facility up to $10.0 million and extend the maturity from February 6, 2017 to April 28, 2018.
• Cash and cash equivalents at December 31, 2015, were $1.7 million.

Comstock Mining President & CEO, Corrado De Gasperis, stated:

We have now completed three years of production, amassed, rezoned and permitted one of the largest land positions in the economically booming Northern Nevada Reno-Tahoe industrial quadrant and simplified our capital structure. Our high-gold yielding, low-cost operation stripped of special dividends and most royalties positions us best for the development of reserves and future mine plans. Our gold recoveries continually improved to a now 85% for the life-of-mine-to-date, enabling our lowest mining costs, below $625 cash cost per ounce, for the full year 2015.

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