Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today
announced selected unaudited financial results for the fiscal
quarter ended March 31, 2020.
First Quarter 2020 Selected Strategic
Highlights
- Investment in Mercury Clean Up LLC (“MCU”) increased to $1.6
million with the Comstock-based mercury remediation system
scheduled for May 2020, with necessary Nevada permits
secured;
- MCU also signed a definitive joint venture agreement with Clean
Ore Solutions OPC, to partner and lead in a major mercury
remediation project located in the Philippines, with initial
permits also secured;
- Investment in Tonogold Resources Inc. (“Tonogold”), valued at
$8.8 million, represents > 10% ownership;
- Announced and permitted Tonogold drill plans for June, 2020, on
the Occidental Lode and other claims;
- Extended agreements for the sale of Comstock’s two non-mining
properties in Silver Springs, NV, and received an additional
deposit totalling $0.4 million cumulatively, toward the $10.1
million sale;
- Received $0.75 million in expense reimbursements from Tonogold
during the first quarter;
- Received $1 million in prepaid reimbursements from Tonogold for
upcoming expenditures, including staff support for local and
federal permitting, and geological support for exploration planning
and drilling; and
- Consummated the April acquisition of 25% of Pelen LLC, the
owner of the historic Sutro Tunnel Company.
Unaudited First Quarter 2020 Selected Financial
Highlights
- Total operating costs were $1.3 million in Q1 2020, a $0.3
million or 21% improvement over Q1 2019;
- Interest expense was $0.1 million in Q1 2020, a $0.4 million or
89% improvement over Q1 2019;
- Net loss was $1.3 million, or ($0.05) loss per share for Q1
2020, as compared to net loss of $1.8 million, or ($0.12) loss per
share for Q1 2019, an improvement driven by higher Tonogold expense
reimbursements;
- Net cash used in operations was $0.2 million in Q1 2020, as
compared to a net use of $0.9 million in Q1 2019, with improvements
resulting from lower operating expenses and lower uses for working
capital;
- Net cash provided by investing activities was $0.14 million in
Q1 2020, from non-refundable deposits and proceeds from the sale of
certain properties, somewhat offset by investments made in Mercury
Clean Up;
- Cash and cash equivalents at March 31, 2020, were $1.0
million; and
- Common shares outstanding at March 31, 2020, were 27,850,000
shares.
Comstock Mining’s Corporate Realignment Last
year, the Company’s Board of Directors approved a transformational
strategy focused on high-value, cash-generating, precious
metal-based activities, (the “Strategic Focus”) including, but not
limited to, metals exploration, engineering, resource development,
economic feasibility assessments, mineral production, metal
processing and related ventures of conservation-based,
environmentally friendly, and economically enhancing mining
technologies. Our goal is to deliver over $500 million of value
from our existing assets and the commercialization of these
environmental mining technologies, partnerships and ventures.
Comstock Mining Inc. is the parent company that wholly owns the
realigned subsidiaries.
A photo accompanying this announcement is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/4423c61d-1990-4ed2-818d-1106ffb478e7
Comstock Mining LLC owns or controls the Lucerne properties.
Comstock Processing LLC owns the American Flat processing facility
and represents the main platform for commercializing
environmentally friendly, and economically enhancing mining
technologies. Comstock Northern Exploration LLC owns or controls
the remaining Storey County mining claims and exploration targets,
primarily located north of the Lucerne properties, that have been
leased to Tonogold and represent the focus of their recently
announced drilling programs, including the Occidental Lode.
Comstock Exploration & Development LLC owns or controls the
Lyon County mining claims and exploration targets, including the
Dayton Resource Area and the Spring Valley exploration targets.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “We
are now driving our strategic initiatives forward at full speed
with MCU poised to deploy two mercury remediation operating systems
in the next three months, Tonogold is preparing the launch of a
major, well-designed and expansive drill program as we expand the
economic feasibility of our Dayton resource. Our year over
year costs continue to trend down, primarily from net reductions in
our operating and interest expenses. We have received $0.4 million
in deposits on our silver springs non-mining assets and look
forward to closing that transaction during the second quarter and
eliminating the debt.”
Dayton
We are expanding Dayton’s economic resource, but just based on
current gold and silver prices, before any resource updates, we now
show a low-end value of over $75 million based on our existing
economic shell (using an $800 gold equivalent cut off) and a $1600
gold revenue assumption. We have not yet engineered an
expanded pit shell (even though higher gold prices allows for lower
grade cut-offs and significantly higher, economically-feasible
ounces) but we are progressing with that work toward an updated,
Dayton stand-alone, NI 43-101 technical report.
Lucerne
Tonogold now owns a 50% membership interests in the entity that
owns Lucerne. The Company retains management control over the
entity until Tonogold has made all payments in full. We have
partnered with Tonogold and expect to fully realize over $25
million from the sale of the Lucerne mining claims, plus the
potential for over $35 million (totaling over $60 million) of
additional value from leasing, processing and royalty
agreements.
On March 20, 2020 the Company and Tonogold restated the
Membership Purchase Agreement to secure the remaining cash
consideration with a 12% secured convertible note with a principal
amount of $5.475 million (the "Note"). To date, the Company
has received $6.025 million in cash and $6.1 million the total
stock consideration in the form of Tonogold Convertible Preferred
Stock ("CPS"), valued at $8.795 million at March 31, 2020. The CPS
can be converted into Tonogold common shares, at the Company's
option, any time on or after May 22, 2020. The conversion price for
the CPS will be the lower of (1) 85% of the 20-day volume weighted
closing price or (2) 0.18. Tonogold can redeem the CPS prior to
conversion, at a redemption price 120% of the face value of the
CPS.
Tonogold guaranteed the Company’s remaining financial
responsibility for its membership interest in Northern Comstock
LLC, which owns and leases certain mineral properties in the
Lucerne area, and assumed certain reclamation liabilities, both
totaling approximately $7.0 million. The Company retains a 1.5% NSR
royalty.
Comstock Northern Exploration LLC
Last year, the Company restated their exploration lease with
Tonogold in Storey County. The restated lease requires exploration
spending, permitting, and engineering commitments of a minimum of
$1 million per year, for a cumulative total of $20 million over 20
years. Tonogold also committed to specific milestones for issuing
three technical reports on their results, including a resource
estimate in the first five year term, and culminating in a
published Feasibility report by the end of the final term. For the
first year following the commencement of mining, royalties will be
paid a 3.0% NSR, and reduced to a 1.5% NSR, thereafter.
Mr. De Gasperis commented, “Tonogold has made remarkable
progress in their exploration and development plans and secured
Storey County permits and funding to start a major drilling program
during the second quarter. They have also significantly enhanced
the technical strength of their board and announced plans to
achieve full external reporting status with audited financial
statements this summer, as they prepare for a national stock
listing.”
American Flat Processing and Commercializing
Platform
Our processing platform includes the Company’s fully permitted
crushing, leaching, processing and operating metallurgical
equipment and labs, where our clean-technology joint ventures
(including Mercury Clean Up LLC) and other partnerships,
representing opportunities for significant value growth; most
immediately with mercury remediation and clean reprocessing of
previously leached mineralized materials.
Our Goal Drives Strategic Value
Our goal is to deliver over $500 million of value from our
existing, precious metal-based assets and the commercialization, in
Nevada and globally, of environmental mining technologies,
partnerships and ventures.
The following table summarizes the components of the previously
announced activities and the related, estimated value build-up of
the high and low valuation targets of such components. In total,
these components reflect an estimate of the potential, future
valuation range for the Company (with the low target being more
quantifiably known and the high target being more nascent and
longer-lived):
(#’s in millions) |
Valuation Estimates (1) |
Strategic Value Targets |
Low(12/31/20) |
|
High(12/31/23+) |
Dayton-Spring Valley Mineral Resource Development |
|
75.0 |
↑ |
$150.0 |
Lucerne
Mineral Resource Development |
|
25.7 |
↑ |
|
60.0 |
MCU – Comstock Mercury Remediation Project (USA) |
|
2.0 |
|
$62.5 |
MCU – Clean Mercury Recovery Technology (Philippines) |
|
3.0 |
↑ |
$25.0 |
MCU – Project #3 (USA) |
|
2.0 |
|
$25.0 |
Leach Material Reprocessing – Comstock Project |
|
7.0 |
|
$30.0 |
Occidental - Pride of the West - Other Mineral Royalties |
|
2.0 |
|
$20.0 |
Investment in the
Sierra Springs Opportunity Fund, Inc. |
$3.3 |
↑ |
$127.5 |
|
$120.0 |
|
$500.0 |
Target Value Per Share (2) |
$4.25 |
|
$15.00 |
|
|
|
|
|
|
(#’s in millions) |
Valuation Estimates (1) |
Non-Strategic Assets |
Low(12/31/20) |
|
High(12/31/23+) |
Senior
Water Rights (Silver Springs) |
|
4.5 |
|
|
|
4.5 |
|
Industrial - Commercial Land Values (Silver
Springs) |
|
5.6 |
|
|
|
5.6 |
|
Investment in Tonogold Convertible Preferred
Stock |
|
6.8 |
↑ |
|
|
13.9 |
|
Note Receivable - Senior Secured
Debenture |
|
5.5 |
↑ |
|
|
5.5 |
|
Daney Ranch |
|
2.9 |
|
|
|
3.7 |
|
Debt
Obligations |
|
(5.3 |
) |
|
|
(5.3 |
) |
Approximate Value (March 31, 2020) |
|
20.0 |
|
|
|
27.9 |
|
Target Value Per Share (2) |
$0.75 |
|
|
$1.00 |
|
|
|
|
|
|
|
|
|
(1) Valuation Targets represent management estimates.(2) Based
on total outstanding shares of 27,875,000 at May 7, 2020.
Our focus on realigning and transforming the Company was driven
solely by our determination to reposition the Company, and its
balance sheet, for sustainable per share growth. The valuation
target range of $120 - $500 million in equity value is based on
leveraging our existing assets, investments and growth plans. We
believe that our entire, hard-asset base, existing resources and
technology platform and are deeply undervalued. Our non-mining
lands and non-mining water rights alone are now valued at over $20
million, net. We have agreements to sell the Industrial and
Commercial lands plus the senior water rights in Silver Springs,
for over $10 million, with $0.4 million already in escrow. These
proceeds will extinguish the remaining $5.3 million in obligations
(including our $4.9 million bond). Our $6.1 investment in Tonogold
Convertible Preferred Stock (CPS) is valued between $6.8 million
(if converted and sold at 85% of our conversion price) and $13.9
million, based on Tonogold’s current share price. We are also
owed $5.475 million from Tonogold through a 12%, cash interest
paying debt instrument, with principal payments of $1 million due
this October 2020, and $4.475 million due September 2021.
More meaningfully, we have already positioned the permitted
platform and tested both mercury remediation process technologies
and leach-pad reprocessing solutions for new process technologies
that we are now developing for commercialization. We have also
facilitated an investment in an opportunity zone fund that is
already worth ten times our investment of $330,000, based on the
last investment round into the fund during late 2019. The
fund owns or has secured almost 3,000 acres of land at less than
$10,000 per acre, and owns and operates the Silver Springs Regional
Airport, and also operates a 150,000 square foot facility with
businesses already moving in.
Mr. De Gasperis continued, “We expect that our efforts in
monetizing the non-strategic assets, eliminating the debt and
commercializing the mining assets, will move us first toward the
$120 million valuation throughout this year and position us to grow
those businesses and valuations toward our $500+ million target
over the next 2-3 years and beyond. The growth potential is
truly extraordinary.”
Liquidity & Capital Resources
At March 31, 2020, the Company had total assets
of $39.3 million, total liabilities of $16.8 million,
including debt of $5.3 million, and net current assets of $3.5
million, including cash and cash equivalents of $1.0 million.
The Company’s current capital resources include the cash and cash
equivalents, investments in Tonogold preferred shares, Assets held
for sale and other net working capital resources.
Net cash used in operations, for the period ended March 31,
2020, was $0.2 million as compared to net cash used of $0.9 million
for the comparable prior period. The Company's lower use of cash,
was due to higher rates of reimbursements from Tonogold for
administrative and environmental expenses.
Net cash provided by investing, for the period ended
March 31, 2020, was $0.1 million, substantially all from $0.3
million of proceeds from deposits on asset sales offset by $0.2
million for MCU investments.
Net cash provided by financing activities, for the three months
ended March 31, 2020, represented net proceeds from the sale
of common stock of $0.2 million, fully offset by principal payments
on long term debt of approximately $0.2 million. Total common
shares outstanding on May 7, 2019, were 27,875,000.
Outlook
Our annual operating expenses are planned at approximately $5.1
million (including other income, net, and excluding depreciation),
with approximately $2.3 million of that expected to be reimbursed
by Tonogold’s various agreements, resulting in net operating
expenses for 2020, of $2.8 million. During the first quarter of
2020, the Company received approximately $0.75 million in
cash for expense reimbursements required under the Tonogold
agreements and an additional $1.0 million in anticipated upcoming
expenditures, including staff support for local and federal
permitting, and geological support for exploration planning and
drilling. Starting in May 2020, until September 2021, the Company
expects to receive monthly interest payments of $54,750.
MCU plans to commence trial operations in the second quarter of
2020, at the Company's American Flat processing facility, to
validate and fine-tune the mercury extraction and remediation
process, with the objective of reclaiming and remediating the
Company's existing properties within the Carson River Mercury
Superfund Site ("CRMSS").
MCU has agreed and plans to commence reclamation operations in
the Philippines in the third quarter 2020, with the objective of
establishing MCU as a global leader in large scale, mercury
remediation projects.
The Company also expects to close on the agreed upon sale of
certain non-mining assets located in Silver Springs, NV, to Sierra
Springs Enterprises Inc., for total net proceeds of $10.1 million,
by June 30, 2020. The Company has received $0.4 million in escrow
for non-refundable deposits toward these purchases. The Company
will use the remaining $9.7 million to extinguish the entirety of
its outstanding Senior Secured Debenture obligation, principal and
make-whole, of approximately $4.9 million, plus accrued
interest of approximately $0.3 million.
Mr. De Gasperis concluded, “While we all continue to follow
COVID-19 guidelines at Comstock Mining, we are very fortunate to be
able to continue working collaboratively, remotely and
strategically with our colleagues and business partners as we
continue working towards achieving our 2020 strategic objectives
and ultimate value goal.”
Conference Call The Company will host a
conference call today, May 7, 2020, at 8:00 a.m. Pacific Time/11:00
a.m. Eastern Time. The live call will include a moderated
Q&A, after the prepared comments by the Company. The
dial-in telephone numbers for the live audio are as follows:
Toll Free: 1-888-297-8935
Direct: 1-647-792-1281
Confirmation Code: 3574748
The audio will be available, usually within 24
hours of the call, on the Company’s new website:
http://www.comstockmining.com/investors/investor-library
About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining
company with extensive, contiguous property in the Comstock
District and is an emerging leader in sustainable, responsible
mining that is currently commercializing environment-enhancing,
precious-metal-based technologies, products and processes for
precious metal recovery. The Company began acquiring properties in
the Comstock District in 2003. Since then, the Company has
consolidated a significant portion of the Comstock District,
amassed the single largest known repository of historical and
current geological data on the Comstock region, secured permits,
built an infrastructure and completed its first phase of
production. The Company continues evaluating and acquiring
properties inside and outside the district expanding its footprint
and exploring all of our existing and prospective opportunities for
further exploration, development and mining. The Company’s goal is
to grow per-share value by commercializing environment-enhancing,
precious-metal-based products and processes that generate
predictable cash flow (throughput) and increase the long-term
enterprise value of our northern Nevada based platform.
Forward-Looking Statements
This press release and any related calls or discussions may
include forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical facts, are forward-looking
statements. The words “believe,” “expect,” “anticipate,”
“estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,”
“would,” “potential” and similar expressions identify
forward-looking statements, but are not the exclusive means of
doing so. Forward-looking statements include statements about
matters such as: consummation of all pending transactions; project,
asset or Company valuations; future industry market conditions;
future explorations, acquisitions, investments and asset sales;
future performance of and closings under various agreements; future
changes in our exploration activities; future estimated mineral
resources; future prices and sales of, and demand for, our
products; future impacts of land entitlements and uses; future
permitting activities and needs therefor; future production
capacity and operations; future operating and overhead costs;
future capital expenditures and their impact on us; future impacts
of operational and management changes (including changes in the
board of directors); future changes in business strategies,
planning and tactics and impacts of recent or future changes;
future employment and contributions of personnel, including
consultants; future land sales, investments, acquisitions, joint
ventures, strategic alliances, business combinations, operational,
tax, financial and restructuring initiatives; the nature and timing
of and accounting for restructuring charges and derivative
liabilities and the impact thereof; contingencies; future
environmental compliance and changes in the regulatory environment;
future offerings of equity or debt securities; the possible
redemption of debentures and associated costs; future working
capital, costs, revenues, business opportunities, debt levels, cash
flows, margins, earnings and growth. These statements are based on
assumptions and assessments made by our management in light of
their experience and their perception of historical and current
trends, current conditions, possible future developments and other
factors they believe to be appropriate. Forward-looking statements
are not guarantees, representations or warranties and are subject
to risks and uncertainties, many of which are unforeseeable and
beyond our control and could cause actual results, developments and
business decisions to differ materially from those contemplated by
such forward-looking statements. Some of those risks and
uncertainties include the risk factors set forth in our filings
with the SEC and the following: counterparty risks; capital
markets’ valuation and pricing risks; adverse effects of climate
changes or natural disasters; global economic and capital market
uncertainties; the speculative nature of gold or mineral
exploration, including risks of diminishing quantities or grades of
qualified resources; operational or technical difficulties in
connection with exploration or mining activities; contests over
title to properties; potential dilution to our stockholders from
our stock issuances and recapitalization and balance sheet
restructuring activities; potential inability to comply with
applicable government regulations or law; adoption of or changes in
legislation or regulations adversely affecting businesses;
permitting constraints or delays; decisions regarding business
opportunities that may be presented to, or pursued by, us or
others; the impact of, or the non-performance by parties under
agreements relating to, acquisitions, joint ventures, strategic
alliances, business combinations, asset sales, leases, options and
investments to which we may be party; changes in the United States
or other monetary or fiscal policies or regulations; interruptions
in production capabilities due to capital constraints; equipment
failures; fluctuation of prices for gold or certain other
commodities (such as silver, zinc, cyanide, water, diesel fuel and
electricity); changes in generally accepted accounting principles;
adverse effects of terrorism and geopolitical events; potential
inability to implement business strategies; potential inability to
grow revenues; potential inability to attract and retain key
personnel; interruptions in delivery of critical supplies,
equipment and raw materials due to credit or other limitations
imposed by vendors or others; assertion of claims, lawsuits and
proceedings; potential inability to satisfy debt and lease
obligations; potential inability to maintain an effective system of
internal controls over financial reporting; potential inability or
failure to timely file periodic reports with the SEC; potential
inability to list our securities on any securities exchange or
market; inability to maintain the listing of our securities; and
work stoppages or other labor difficulties. Occurrence of such
events or circumstances could have a material adverse effect on our
business, financial condition, results of operations or cash flows
or the market price of our securities. All subsequent written and
oral forward-looking statements by or attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
these factors. Except as may be required by securities or other
law, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. Neither this press release nor any
related calls or discussions constitutes an offer to sell, the
solicitation of an offer to buy or a recommendation with respect to
any securities of the Company, the fund or any other issuer.
Contact information: |
|
|
|
Comstock Mining Inc. P.O. Box
1118 Virginia City, NV 89440 ComstockMining.com |
Corrado De Gasperis Executive
Chairman & CEO Tel (775) 847-4755
degasperis@comstockmining.com |
Zach Spencer Director of
External Relations Tel (775) 847-5272
Ext.151questions@comstockmining.com |
|
COMSTOCK MINING INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED)
|
March 31, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
1,026,079 |
|
|
$ |
1,015,857 |
|
Assets held for sale, net |
10,512,066 |
|
|
10,512,066 |
|
Prepaid expenses and other current assets |
1,995,615 |
|
|
1,821,627 |
|
Total current assets |
13,533,760 |
|
|
13,349,550 |
|
|
|
|
|
Mineral rights and properties,
net |
5,690,885 |
|
|
5,690,885 |
|
Properties, plant and
equipment, net |
7,752,234 |
|
|
7,935,021 |
|
Reclamation bond deposit |
2,695,430 |
|
|
2,688,962 |
|
Retirement obligation
asset |
101,435 |
|
|
115,926 |
|
Investment in Tonogold
preferred shares |
8,795,000 |
|
|
9,080,000 |
|
Investment in Sierra Springs
common shares |
335,000 |
|
|
335,000 |
|
Other assets |
349,261 |
|
|
374,548 |
|
|
|
|
|
TOTAL ASSETS |
$ |
39,253,005 |
|
|
$ |
39,569,892 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Accounts payable |
$ |
1,036,514 |
|
|
$ |
922,553 |
|
Accrued expenses and other liabilities |
1,412,406 |
|
|
1,855,431 |
|
Deposits |
1,473,513 |
|
|
318,384 |
|
Liabilities held for sale, net |
1,019,705 |
|
|
1,019,705 |
|
Long-term debt– current portion |
5,065,934 |
|
|
328,068 |
|
Total current liabilities |
10,008,072 |
|
|
4,444,141 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
Long-term debt |
232,836 |
|
|
5,084,006 |
|
Long-term reclamation liability |
6,039,386 |
|
|
6,034,208 |
|
Other liabilities |
513,103 |
|
|
514,977 |
|
Total long-term liabilities |
6,785,325 |
|
|
11,633,191 |
|
|
|
|
|
Total liabilities |
16,793,397 |
|
|
16,077,332 |
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
EQUITY: |
|
|
|
Preferred Stock, $.000666 par value, 50,000,000 shares authorized,
no shares issued |
— |
|
|
— |
|
Common stock, $.000666 par value, 158,000,000 shares authorized,
27,875,000 and 27,236,489 shares issued and outstanding at March
31, 2020 and December 31, 2019, respectively |
18,564 |
|
|
18,139 |
|
Additional paid-in capital |
259,387,278 |
|
|
259,095,152 |
|
Accumulated deficit |
(237,215,775 |
) |
|
(235,890,272 |
) |
|
|
|
|
Total Comstock Mining Inc.
stockholders' equity |
22,190,067 |
|
|
23,223,019 |
|
Noncontrolling interest |
269,541 |
|
|
269,541 |
|
Total equity |
22,459,608 |
|
|
23,492,560 |
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
39,253,005 |
|
|
$ |
39,569,892 |
|
|
|
|
|
|
|
|
|
COMSTOCK MINING INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
REVENUES |
|
|
|
Revenue - mining |
$ |
— |
|
|
$ |
— |
|
Revenue - real estate |
48,425 |
|
|
37,598 |
|
Total revenues |
48,425 |
|
|
37,598 |
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
Costs applicable to mining
revenue |
125,893 |
|
|
505,393 |
|
Real estate operating
costs |
13,596 |
|
|
10,424 |
|
Exploration and mine
development |
136,721 |
|
|
225,867 |
|
Mine claims and costs |
122,070 |
|
|
150,954 |
|
Environmental and
reclamation |
26,798 |
|
|
53,451 |
|
General and
administrative |
845,228 |
|
|
660,366 |
|
Total costs and expenses |
1,270,306 |
|
|
1,606,455 |
|
|
|
|
|
LOSS FROM OPERATIONS |
(1,221,881 |
) |
|
(1,568,857 |
) |
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
Interest expense |
(50,588 |
) |
|
(461,137 |
) |
Other income (expense) |
(53,034 |
) |
|
194,929 |
|
Total other income (expense), net |
(103,622 |
) |
|
(266,208 |
) |
|
|
|
|
NET LOSS |
(1,325,503 |
) |
|
(1,835,065 |
) |
|
|
|
|
Less: net income (loss)
attributable to noncontrolling interest |
— |
|
|
— |
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO
COMSTOCK MINING, INC. |
$ |
(1,325,503 |
) |
|
$ |
(1,835,065 |
) |
|
|
|
|
Net loss per common share –
basic and diluted |
$ |
(0.05 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
Weighted average common shares
outstanding — basic and diluted |
27,264,555 |
|
|
15,800,481 |
|
|
|
|
|
|
|
COMSTOCK MINING INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(UNAUDITED)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
OPERATING
ACTIVITIES: |
|
|
|
Net loss |
$ |
(1,325,503 |
) |
|
$ |
(1,835,065 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation, amortization,
and depletion |
199,442 |
|
|
586,921 |
|
Accretion of reclamation
liability |
5,178 |
|
|
5,710 |
|
Gain on sale of properties,
plant, and equipment |
(100,000 |
) |
|
— |
|
Amortization of debt discounts
and issuance costs |
38,705 |
|
|
71,623 |
|
Net loss on early retirement
of long-term debt |
2,750 |
|
|
151,531 |
|
Payment-in-kind interest
expense |
— |
|
|
470,246 |
|
Change in make-whole
liabilities |
35,776 |
|
|
(135,162 |
) |
Mark to market Tonogold
preferred shares |
285,000 |
|
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
Prepaid expenses and other assets |
6,979 |
|
|
24,934 |
|
Accounts payable |
113,961 |
|
|
53,573 |
|
Accrued expenses and other liabilities |
(488,656 |
) |
|
(286,855 |
) |
Deposits |
1,055,129 |
|
|
— |
|
NET CASH USED IN OPERATING
ACTIVITIES |
(171,239 |
) |
|
(892,544 |
) |
INVESTING
ACTIVITIES: |
|
|
|
Proceeds from principal
payment on note receivable |
138 |
|
|
130 |
|
Proceeds from sale of mineral
rights and properties, plant, and equipment |
100,000 |
|
|
— |
|
Proceeds from deposits on
Membership Interest Purchase Agreement |
100,000 |
|
|
1,950,000 |
|
Proceeds from deposits on the
sale of non-mining assets to Sierra Springs |
100,000 |
|
|
— |
|
Purchase of mineral rights and
properties, plant and equipment |
— |
|
|
(365,000 |
) |
Deposits for Mercury Clean Up
investment |
(150,000 |
) |
|
— |
|
Change in reclamation bond
deposit |
(6,468 |
) |
|
(33,428 |
) |
NET CASH PROVIDED BY INVESTING
ACTIVITIES |
143,670 |
|
|
1,551,702 |
|
FINANCING
ACTIVITIES: |
|
|
|
Principal payments on
long-term debt |
(154,760 |
) |
|
(1,565,687 |
) |
Proceeds from the issuance of
common stock |
242,621 |
|
|
813,561 |
|
Common stock issuance
costs |
(50,070 |
) |
|
(85,093 |
) |
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES |
37,791 |
|
|
(837,219 |
) |
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS |
10,222 |
|
|
(178,061 |
) |
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD |
1,015,857 |
|
|
488,657 |
|
CASH AND CASH EQUIVALENTS, END
OF PERIOD |
$ |
1,026,079 |
|
|
$ |
310,596 |
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION: |
|
|
|
Cash paid for interest |
$ |
285,138 |
|
|
$ |
34,460 |
|
|
|
|
|
|
|
|
|
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