Comstock Mining Reports Preliminary 2015 Second Quarter Results

Comstock Mining Inc. (NYSEMKT:LODE) announced its unaudited financial results from the fiscal quarter ended June 30, which showed continued cost reduction. The company also provided an outlook for the remainder of the year.
As quoted in the press release:

Mining revenue was $5.4 million in Q2 2015 as compared to $6.0 million in Q2 2014. The decrease resulted from lower average gold prices and slightly lower gold ounces produced. Costs applicable to mining revenue were $3.2 million in Q2 2015, as compared to $5.5 million, net of silver credits, in Q2 2014. The 42% decrease resulted from lower labor, fuel and blasting cost and lower strip ratios, resulting in a gross margin of over 41%. Cost applicable to mining revenue, on a cash basis, were $615 as compared to $848 per ounce when comparing Q2 2015, to Q2 2014. General and administrative expenses were $1.3 million in Q2 2015, compared to $1.5 million in Q2 2014, primarily from lower third party administrative expenses. Completed, ahead of schedule, Phase 1 realignment of State Route 342 (‘SR-342’). Finalized First Phase of the Lucerne Exploration and Development plan, targeting high-grades. Filed requisite permit modifications for commencing a Lucerne underground drift tunnel.
The Company has been cash positive from operations for the first six months of 2015, and expects to be cash positive from operations throughout 2015, while expanding our exploration and development during the third quarter, primarily through the exploration and development on the East-side of Lucerne mine. Cash costs of mining revenue will likely remain below $650 per ounce of gold through the third quarter, at which time we plan to commence the underground drift and drilling. We expect to complete the first major phase of that drilling for the Lucerne underground (the full PQ target) by December 2015, and the second phase (the Woodville bonanza target) during the first quarter of 2016.

Corrado De Gasperis, CEO of Comstock Mining, commented:

We have proven each critical operating variable from grade to yields to strip ratio and delivered a much lower cost. We also effectively managed the road realignment project such that we have safely continued mining Lucerne while we transition our development toward higher grade, underground targets. We look forward to commencing the new Lucerne drift and drilling these targets in the third quarter. Our goals for this year are minimizing operating costs and expanding the Lucerne exploration and development activities. We are also commencing the final phase of Dayton’s development so that we can finalize mine plans and commence permitting there in 2016. We expect to be cash positive from operations for the full year 2015, while transitioning our mining activities during the third quarter and initiating underground development and mine planning for Dayton.

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