Comstock Mining Announces Third Quarter 2015 Results

Comstock Mining Inc. (NYSEMKT:LODE) announced selected unaudited financial results for the fiscal quarter ended September 30, 2015.
As quoted in the press release:

Strategic Highlights

• Restructured and simplified the overall capital structure, eliminating all preferred stock, special rights and PIK dividends and permanently reducing land obligations and royalties.
• Permitted, commenced and advanced the Lucerne underground “Harris” portal and drilling.
• Encountered significant high-grade gold and silver intercepts in the Dayton Drill Program.
• 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.”
• Achieved year-over-year cost savings of $6.7 million for the nine months ended September 30, 2015, and, coupled with the recently completed restructuring activities, remain on track to save $10 million for the full year 2015, as compared to full year 2014.
• Partnered with American Mine and Tunneling LLC and American Drilling Corp, LLC to commence key underground development and drilling access to the PQ and Woodville structures.
• Strengthened the balance sheet, raising $6 million for the drilling and development of the Lucerne underground program, and prerequisite planning for the next phase of Dayton drilling.

Selected Financial Highlights — Three-months Ended September 30, 2015

• Mining revenue was $4.3 million in Q3 2015 as compared to $6.5 million in Q3 2014. The decrease resulted from lower average price per ounce of gold realized and lower production.
• Costs applicable to mining revenue were $3.5 million in Q3 2015, as compared to $4.4 million, net of silver credits, in Q3 2014, a 21% decrease primarily due to mining cost reductions.
• Mine claims and costs decreased by $0.4 million in Q3 2015, as compared to Q3 2014.
• Exploration and mine development costs increased by approximately $0.7 million in Q3 2015, as compared to Q3 2014. The increase is for the underground drift-mining and drilling for the first geological target (“PQ target”) in Lucerne and for the recent Dayton drilling program.
• Net loss was $4.3 million, for Q3 2015, as compared to a net loss of $1.0 million, for Q3 2014. The $3.3 million increase resulted from a $2.4 million decrease in revenue and a $0.7 million decrease in net other income, offset by a net increase in all other costs, including the SR-342 road realignment and Lucerne and Dayton exploration and development costs.
• Net cash generated by operating activities was $0.1 million for Q3 2015.
• Excluding the road realignment cost of $0.8 million, net operating cash generated for Q3 2015, was $0.9 million.

Comstock Mining  President & Chief Executive Officer, Corrado De Gasperis, stated:

With all the excitement around drilling the quartz porphyry mass at the Lucerne portal, we were thrilled at the magnitude of these same quartz porphyry-type discoveries in Dayton. These new discoveries have accelerated our preparation for developing these remarkable gold and silver resources into a second mine. Both phases of Lucerne and Dayton represent remarkable exploration and development opportunities with the objective of establishing long-lived mines and higher grade reserves for mining.

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