Comstock Mining (OTCBB: LODE) has released unaudited financial results for the quarter ended March 31, 2011 and will host a related conference call today at 2:00pm EST / 11:00am PST. The dial-in telephone numbers for the conference call are as follows:
North America Toll Free: 866-544-4625
Canada Local / Other International: 416-849-2726
- During the quarter, the Company successfully advanced its current drilling objectives by completing the infill drilling on the Hartford claim for the starter mine; completing the first phase of development drilling in the Dayton Resource Area; and commencing development drilling on the East-Side target in the Lucerne Resource Area.
- Net loss for Q1 2011 was $2.4 million, resulting primarily from operating expenses of $3.1 million, mainly for development drilling activities, somewhat offset by a $0.7 million non-cash gain resulting from a change in the fair value of the contingent dividend obligation. Net loss for Q1 2010 was $2.6 million, resulting primarily from operating expenses of $1.1 million, mainly for development drilling activities and administrative expenses and interest expense of $0.8 million.
- Operating expenses for Q1 2011 were $3.1 million, versus $1.1 million in Q1 2010. The increase resulted primarily from an increase of $1.7 million, primarily for exploration drilling and related activities and an increase of $0.3 million for general and administrative expenses.
- Interest expense for Q1 2011 was nil, versus $0.9 million in Q1 2010. The $0.9 million decrease resulted from the extinguishment of all of our senior debt obligations in October 2010.
- Net cash used by operating activities in Q1 2011 was $2.6 million, versus $1.8 million in Q1 2010. The variance resulted from increased operating expenses associated with development drilling activities; offset somewhat by lower net uses of working capital.
- Net cash used in financing activities in Q1 2011 was $0.8 million, resulting from principal payments on mortgage obligations.
- Total debt at March 31, 2011, was $0.7 million as compared to total debt at year-end 2010 of $1.5 million, all relating to mortgage obligations.
- Cash, cash equivalents and investments at March 31, 2011 were $26.1 million compared to $29.8 million at December 31, 2010.