|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
NEVADA
(State or other jurisdiction of
incorporation or organization)
|
|
1040
(Primary Standard Industrial
Classification Code Number)
|
|
65-0955118
(I.R.S. Employer
Identification No.)
|
|
|
|
|
|
|
June 30,
2015 |
|
December 31,
2014 |
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
6,783,406
|
|
|
$
|
5,308,804
|
|
Accounts receivable
|
58,953
|
|
|
322,406
|
|
||
Inventories
|
344,724
|
|
|
428,235
|
|
||
Stockpiles and mineralized material on leach pads
|
1,848,266
|
|
|
1,743,053
|
|
||
Prepaid expenses
|
1,788,832
|
|
|
833,360
|
|
||
Total current assets
|
10,824,181
|
|
|
8,635,858
|
|
||
MINERAL RIGHTS AND PROPERTIES, Net
|
7,225,775
|
|
|
7,318,175
|
|
||
PROPERTIES, PLANT AND EQUIPMENT, Net
|
26,447,494
|
|
|
26,207,062
|
|
||
RECLAMATION BOND DEPOSIT
|
2,642,804
|
|
|
2,642,804
|
|
||
RETIREMENT OBLIGATION ASSET
|
1,701,915
|
|
|
1,619,101
|
|
||
OTHER ASSETS
|
19,931
|
|
|
32,872
|
|
||
TOTAL ASSETS
|
$
|
48,862,100
|
|
|
$
|
46,455,872
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Accounts payable
|
$
|
1,342,741
|
|
|
$
|
2,265,723
|
|
Accrued expenses
|
1,479,622
|
|
|
4,408,568
|
|
||
Long-term debt and capital lease obligations – current portion
|
9,495,009
|
|
|
5,897,219
|
|
||
Derivative liabilities
|
107,569
|
|
|
33,298
|
|
||
Total current liabilities
|
12,424,941
|
|
|
12,604,808
|
|
||
LONG-TERM LIABILITIES:
|
|
|
|
||||
Long-term debt and capital lease obligations
|
7,721,293
|
|
|
5,701,264
|
|
||
Long-term reclamation liability
|
6,698,648
|
|
|
5,908,700
|
|
||
Total long-term liabilities
|
14,419,941
|
|
|
11,609,964
|
|
||
Total liabilities
|
26,844,882
|
|
|
24,214,772
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
STOCKHOLDERS’ EQUITY:
|
|
|
|
||||
Common stock, $.000666 par value, 3,950,000,000 shares authorized, 85,173,255 and 82,480,600 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
56,725
|
|
|
54,932
|
|
||
Convertible Preferred Stock; 50,000,000 shares authorized
|
|
|
|
||||
7.5% Series A-1 convertible preferred stock; $.000666 par value, 1,500,000 shares authorized; 24,362 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
16
|
|
|
16
|
|
||
7.5% Series A-2 convertible preferred stock, $.000666 par value, 250,000 shares authorized; 1,610 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
1
|
|
|
1
|
|
||
7.5% Series B convertible preferred stock, $.000666 par value, 600,000 shares authorized; 22,626 and 22,676 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
|
15
|
|
|
15
|
|
||
Additional paid-in capital
|
210,789,901
|
|
|
210,795,244
|
|
||
Accumulated deficit
|
(188,829,440
|
)
|
|
(188,609,108
|
)
|
||
Total stockholders’ equity
|
22,017,218
|
|
|
22,241,100
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
48,862,100
|
|
|
$
|
46,455,872
|
|
|
Three Months Ended
June 30, |
||||||
|
2015
|
|
2014
|
||||
REVENUES
|
|
|
|
||||
Revenue - Mining
|
$
|
5,442,027
|
|
|
$
|
5,978,983
|
|
Revenue - Hospitality and lease
|
46,264
|
|
|
236,932
|
|
||
Total revenues
|
5,488,291
|
|
|
6,215,915
|
|
||
|
|
|
|
||||
COST AND EXPENSES
|
|
|
|
||||
Costs applicable to mining revenue
|
3,219,831
|
|
|
5,466,762
|
|
||
Hospitality and lease operating costs
|
61,267
|
|
|
304,846
|
|
||
Exploration and mine development
|
530,660
|
|
|
693,559
|
|
||
Mine claims and costs
|
657,255
|
|
|
964,400
|
|
||
Environmental and reclamation
|
24,698
|
|
|
410,781
|
|
||
Land and road development
|
862,246
|
|
|
—
|
|
||
General and administrative
|
1,311,329
|
|
|
1,476,336
|
|
||
Total cost and expenses
|
6,667,286
|
|
|
9,316,684
|
|
||
|
|
|
|
||||
LOSS FROM OPERATIONS
|
(1,178,995
|
)
|
|
(3,100,769
|
)
|
||
|
|
|
|
||||
OTHER INCOME (EXPENSE)
|
|
|
|
||||
Change in fair value of derivatives
|
—
|
|
|
18,373
|
|
||
Interest expense
|
(330,451
|
)
|
|
(307,204
|
)
|
||
Other income (expense), net
|
—
|
|
|
1,014
|
|
||
Total other income (expense), net
|
(330,451
|
)
|
|
(287,817
|
)
|
||
|
|
|
|
||||
NET INCOME (LOSS)
|
(1,509,446
|
)
|
|
(3,388,586
|
)
|
||
|
|
|
|
||||
INCOME TAXES
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
NET INCOME (LOSS)
|
(1,509,446
|
)
|
|
(3,388,586
|
)
|
||
|
|
|
|
||||
DIVIDENDS ON CONVERTIBLE PREFERRED STOCK
|
(965,164
|
)
|
|
(957,307
|
)
|
||
|
|
|
|
||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
(2,474,610
|
)
|
|
$
|
(4,345,893
|
)
|
|
|
|
|
||||
Net income (loss) per common share – basic
|
$
|
(0.03
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
||||
Net income (loss) per common share – diluted
|
$
|
(0.03
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
||||
Weighted average common shares outstanding — basic
|
82,540,600
|
|
|
76,592,200
|
|
||
|
|
|
|
||||
Weighted average common shares outstanding — diluted
|
82,540,600
|
|
|
76,592,200
|
|
|
Six Months Ended June 30, 2015
|
||||||
|
2015
|
|
2014
|
||||
REVENUES
|
|
|
|
||||
Revenue - Mining
|
$
|
11,369,201
|
|
|
$
|
11,585,047
|
|
Revenue - Hospitality and lease
|
156,507
|
|
|
394,329
|
|
||
Total revenues
|
11,525,708
|
|
|
11,979,376
|
|
||
|
|
|
|
||||
COST AND EXPENSES
|
|
|
|
||||
Costs applicable to mining revenue
|
6,937,743
|
|
|
10,229,663
|
|
||
Hospitality and lease operating costs
|
261,294
|
|
|
591,145
|
|
||
Exploration and mine development
|
1,133,854
|
|
|
1,494,777
|
|
||
Mine claims and costs
|
1,421,361
|
|
|
1,916,922
|
|
||
Environmental and reclamation
|
304,810
|
|
|
582,996
|
|
||
Land and road development
|
862,246
|
|
|
—
|
|
||
General and administrative
|
3,457,234
|
|
|
3,668,307
|
|
||
Total cost and expenses
|
14,378,542
|
|
|
18,483,810
|
|
||
|
|
|
|
||||
LOSS FROM OPERATIONS
|
(2,852,834
|
)
|
|
(6,504,434
|
)
|
||
|
|
|
|
||||
OTHER INCOME (EXPENSE)
|
|
|
|
||||
Change in fair value of derivatives
|
—
|
|
|
(216,834
|
)
|
||
Interest expense
|
(554,124
|
)
|
|
(493,534
|
)
|
||
Other income (expense), net
|
3,186,626
|
|
|
1,236
|
|
||
Total other income (expense), net
|
2,632,502
|
|
|
(709,132
|
)
|
||
|
|
|
|
||||
NET INCOME (LOSS)
|
(220,332
|
)
|
|
(7,213,566
|
)
|
||
|
|
|
|
||||
INCOME TAXES
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
NET INCOME (LOSS)
|
(220,332
|
)
|
|
(7,213,566
|
)
|
||
|
|
|
|
||||
DIVIDENDS ON CONVERTIBLE PREFERRED STOCK
|
(1,883,996
|
)
|
|
(1,915,025
|
)
|
||
|
|
|
|
||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
(2,104,328
|
)
|
|
$
|
(9,128,591
|
)
|
|
|
|
|
||||
Net income (loss) per common share – basic
|
$
|
(0.03
|
)
|
|
$
|
(0.12
|
)
|
|
|
|
|
||||
Net income (loss) per common share – diluted
|
$
|
(0.03
|
)
|
|
$
|
(0.12
|
)
|
|
|
|
|
||||
Weighted average common shares outstanding — basic
|
82,515,428
|
|
|
74,192,028
|
|
||
|
|
|
|
||||
Weighted average common shares outstanding — diluted
|
82,515,428
|
|
|
74,192,028
|
|
COMSTOCK MINING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|||||||
|
Six Months Ended
June 30, |
||||||
|
2015
|
|
2014
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
(220,332
|
)
|
|
$
|
(7,213,566
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation, amortization and depletion
|
3,836,092
|
|
|
3,299,133
|
|
||
Stock payments and stock-based compensation
|
44,400
|
|
|
1,193,265
|
|
||
Accretion of reclamation liability
|
130,653
|
|
|
171,943
|
|
||
(Gain) loss on sale of properties, plant, and equipment
|
77,579
|
|
|
45,499
|
|
||
Amortization of debt discounts and issuance costs
|
315,735
|
|
|
300,924
|
|
||
Net change in fair values of derivatives
|
74,271
|
|
|
279,170
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
263,453
|
|
|
(190,086
|
)
|
||
Inventories
|
83,511
|
|
|
83,833
|
|
||
Stockpiles and mineralized material on leach pads
|
(105,213
|
)
|
|
(62,530
|
)
|
||
Prepaid expenses
|
(690,599
|
)
|
|
(213,291
|
)
|
||
Other assets
|
12,941
|
|
|
12,939
|
|
||
Accounts payable
|
(625,432
|
)
|
|
191,462
|
|
||
Accrued expenses
|
(2,828,946
|
)
|
|
(180,049
|
)
|
||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
368,113
|
|
|
(2,281,354
|
)
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Proceeds from sale of properties, plant and equipment
|
117,065
|
|
|
155,120
|
|
||
Purchase of mineral rights and properties, plant and equipment
|
(3,750,271
|
)
|
|
(1,450,794
|
)
|
||
Increase in reclamation bond deposit
|
(100,000
|
)
|
|
(600,000
|
)
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
(3,733,206
|
)
|
|
(1,895,674
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Principal payments on long-term debt and capital lease obligations
|
(4,579,697
|
)
|
|
(1,529,648
|
)
|
||
Proceeds from long-term debt obligations
|
9,419,392
|
|
|
4,626,289
|
|
||
Proceeds from the issuance of common stock
|
—
|
|
|
10,993,283
|
|
||
Common stock issuance costs
|
—
|
|
|
(96,049
|
)
|
||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
4,839,695
|
|
|
13,993,875
|
|
||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
1,474,602
|
|
|
9,816,847
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
5,308,804
|
|
|
2,409,446
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
6,783,406
|
|
|
$
|
12,226,293
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid for interest
|
$
|
507,592
|
|
|
$
|
375,389
|
|
|
|
|
(Continued)
|
|
COMSTOCK MINING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|||||||
|
Six Months Ended
June 30, |
||||||
|
2015
|
|
2014
|
||||
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
||||
Conversion of convertible preferred stock to common stock (par value)
|
$
|
—
|
|
|
$
|
1
|
|
Reclamation bond deposit included in accrued expenses and other liabilities
|
—
|
|
|
973,982
|
|
||
Additions to reclamation liability and retirement obligation asset
|
659,295
|
|
|
—
|
|
||
Issuance of common stock for properties, plant and equipment
|
16,049
|
|
|
—
|
|
||
Dividends paid in common stock (par value)
|
1,723
|
|
|
767
|
|
||
Issuance of long-term debt obligations for purchase of mineral rights and properties, plant and equipment
|
197,515
|
|
|
1,314,644
|
|
||
Vested restricted common stock (par value)
|
40
|
|
|
517
|
|
||
Properties, plant and equipment purchases in accounts payable
|
42,693
|
|
|
87,060
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
In-process
|
$
|
344,724
|
|
|
$
|
428,235
|
|
Finished goods
|
—
|
|
|
—
|
|
||
Total inventories
|
$
|
344,724
|
|
|
$
|
428,235
|
|
|
|
|
|
||||
Stockpiles
|
$
|
37,908
|
|
|
$
|
326,126
|
|
Mineralized material on leach pads
|
1,810,358
|
|
|
1,416,927
|
|
||
Total stockpiles and mineralized material on leach pads
|
$
|
1,848,266
|
|
|
$
|
1,743,053
|
|
Total
|
$
|
2,192,990
|
|
|
$
|
2,171,288
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Derivative Type
|
|
|
|
||||
Derivative liabilities
|
|
|
|
||||
Gold call and put options
|
$
|
115,544
|
|
|
$
|
32,698
|
|
Gold forwards
|
(7,975
|
)
|
|
600
|
|
||
Total derivative liabilities
|
$
|
107,569
|
|
|
$
|
33,298
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Long-term reclamation liability — beginning of period
|
$
|
5,908,700
|
|
|
$
|
5,424,410
|
|
Additional obligations incurred
|
659,295
|
|
|
140,573
|
|
||
Accretion of reclamation liability
|
130,653
|
|
|
343,717
|
|
||
Long-term reclamation liability — end of period
|
$
|
6,698,648
|
|
|
$
|
5,908,700
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Retirement obligation asset — beginning of period
|
$
|
1,619,101
|
|
|
$
|
2,491,956
|
|
Additional obligations incurred
|
659,295
|
|
|
140,573
|
|
||
Amortization of retirement obligation asset
|
(576,481
|
)
|
|
(1,013,428
|
)
|
||
Retirement obligation asset — end of period
|
$
|
1,701,915
|
|
|
$
|
1,619,101
|
|
Note Description
|
June 30, 2015
|
|
December 31, 2014
|
||||
Note Payable (Auramet Facility)
|
$
|
4,000,000
|
|
|
$
|
1,071,427
|
|
Note Payable (Caterpillar Equipment)
|
3,138,067
|
|
|
3,968,019
|
|
||
Note Payable (Dayton Resource Area)
|
860,359
|
|
|
1,953,784
|
|
||
Note Payable (Donovan Property)
|
554,412
|
|
|
574,141
|
|
||
Note Payable (Gold Hill Hotel)
|
268,821
|
|
|
278,254
|
|
||
Note Payable (White House)
|
283,898
|
|
|
286,595
|
|
||
Notes Payable - Other
|
424,075
|
|
|
549,466
|
|
||
Lease Obligation (Varilease)
|
5,000,000
|
|
|
—
|
|
||
Capital Lease Obligations
|
2,686,670
|
|
|
2,916,797
|
|
||
Subtotal
|
17,216,302
|
|
|
11,598,483
|
|
||
Less current portion
|
(9,495,009
|
)
|
|
(5,897,219
|
)
|
||
Long-term portion of long-term debt and capital lease obligations
|
$
|
7,721,293
|
|
|
$
|
5,701,264
|
|
|
|
|
Fair Value Measurements at June 30, 2015
|
||||||||||||
|
Total
|
|
Quoted
Prices
in Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Gold call and put options
|
$
|
115,544
|
|
|
$
|
—
|
|
|
$
|
115,544
|
|
|
$
|
—
|
|
Gold forwards
|
(7,975
|
)
|
|
—
|
|
|
(7,975
|
)
|
|
—
|
|
||||
Total Liabilities
|
$
|
107,569
|
|
|
$
|
—
|
|
|
$
|
107,569
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at December 31, 2014
|
||||||||||||
|
Total
|
|
Quoted
Prices
in Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Gold call options
|
$
|
32,698
|
|
|
$
|
—
|
|
|
$
|
32,698
|
|
|
$
|
—
|
|
Gold forwards
|
600
|
|
|
—
|
|
|
600
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
33,298
|
|
|
$
|
—
|
|
|
$
|
33,298
|
|
|
$
|
—
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(1,509,446
|
)
|
|
$
|
(3,388,586
|
)
|
|
$
|
(220,332
|
)
|
|
$
|
(7,213,566
|
)
|
Preferred stock dividends
|
(965,164
|
)
|
|
(957,307
|
)
|
|
(1,883,996
|
)
|
|
(1,915,025
|
)
|
||||
Net loss available to common shareholders
|
$
|
(2,474,610
|
)
|
|
$
|
(4,345,893
|
)
|
|
$
|
(2,104,328
|
)
|
|
$
|
(9,128,591
|
)
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
82,540,600
|
|
|
76,592,200
|
|
|
82,515,428
|
|
|
74,192,028
|
|
||||
Effect of dilutive securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Diluted weighted average shares outstanding
|
82,540,600
|
|
|
76,592,200
|
|
|
82,515,428
|
|
|
74,192,028
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.03
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.12
|
)
|
Diluted
|
$
|
(0.03
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.12
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Mining
|
$
|
5,442,027
|
|
|
$
|
5,978,983
|
|
|
$
|
11,369,201
|
|
|
$
|
11,585,047
|
|
Hospitality and lease
|
46,264
|
|
|
236,932
|
|
|
156,507
|
|
|
394,329
|
|
||||
Total revenue
|
5,488,291
|
|
|
6,215,915
|
|
|
11,525,708
|
|
|
11,979,376
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cost and Expenses
|
|
|
|
|
|
|
|
||||||||
Mining
|
(6,606,019
|
)
|
|
(9,011,838
|
)
|
|
(14,117,248
|
)
|
|
(17,892,665
|
)
|
||||
Hospitality and lease
|
(61,267
|
)
|
|
(304,846
|
)
|
|
(261,294
|
)
|
|
(591,145
|
)
|
||||
Total cost and expenses
|
(6,667,286
|
)
|
|
(9,316,684
|
)
|
|
(14,378,542
|
)
|
|
(18,483,810
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Loss
|
|
|
|
|
|
|
|
||||||||
Mining
|
(1,163,992
|
)
|
|
(3,032,855
|
)
|
|
(2,748,047
|
)
|
|
(6,307,618
|
)
|
||||
Hospitality and lease
|
(15,003
|
)
|
|
(67,914
|
)
|
|
(104,787
|
)
|
|
(196,816
|
)
|
||||
Total loss from operations
|
(1,178,995
|
)
|
|
(3,100,769
|
)
|
|
(2,852,834
|
)
|
|
(6,504,434
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expense), net
|
(330,451
|
)
|
|
(287,817
|
)
|
|
2,632,502
|
|
|
(709,132
|
)
|
||||
Net loss
|
$
|
(1,509,446
|
)
|
|
$
|
(3,388,586
|
)
|
|
$
|
(220,332
|
)
|
|
$
|
(7,213,566
|
)
|
|
|
|
|
|
|
|
|
||||||||
Depreciation, Depletion and Amortization
|
|
|
|
|
|
|
|
||||||||
Mining
|
$
|
1,890,467
|
|
|
$
|
1,629,530
|
|
|
$
|
3,780,575
|
|
|
$
|
3,234,179
|
|
Hospitality and lease
|
32,120
|
|
|
29,293
|
|
|
55,517
|
|
|
64,954
|
|
||||
Total depreciation, amortization and depletion
|
$
|
1,922,587
|
|
|
$
|
1,658,823
|
|
|
$
|
3,836,092
|
|
|
$
|
3,299,133
|
|
|
|
|
|
|
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
||||||||
Mining
|
$
|
143,272
|
|
|
$
|
231,285
|
|
|
$
|
3,651,623
|
|
|
$
|
2,091,127
|
|
Hospitality and lease
|
—
|
|
|
—
|
|
|
14,663
|
|
|
83,477
|
|
||||
Total capital expenditures
|
$
|
143,272
|
|
|
$
|
231,285
|
|
|
$
|
3,666,286
|
|
|
$
|
2,174,604
|
|
|
As of June 30,
|
|
As of December 31,
|
||||
|
2015
|
|
2014
|
||||
Assets
|
|
|
|
||||
Mining
|
$
|
47,494,875
|
|
|
$
|
45,029,258
|
|
Hospitality and lease
|
1,367,225
|
|
|
1,426,614
|
|
||
Total assets
|
$
|
48,862,100
|
|
|
$
|
46,455,872
|
|
No. of Holes Drilled
|
|
241
|
|
Strike Length Drilled (ft)
|
|
2,500
|
|
No. of 10' intervals with intercepts >0.015 Au opt.
|
|
303
|
|
No. of drillholes with intercepts >0.100 Au opt.
|
|
17
|
|
Average Au opt.
|
|
0.036
|
|
Average Ag opt.
|
|
0.360
|
|
Drillhole No.
|
|
Depth Interval
|
|
Depth Interval
|
|
Au opt
|
|
Ag opt
|
DA-037
|
|
20-30
|
|
10
|
|
0.183
|
|
0.533
|
DA-099
|
|
60-70
|
|
10
|
|
0.129
|
|
0.566
|
DA-100
|
|
60-70
|
|
10
|
|
0.237
|
|
0.790
|
DA-117
|
|
20-30
|
|
10
|
|
0.100
|
|
0.557
|
DA-119
|
|
10-30
|
|
20
|
|
0.139
|
|
0.626
|
DA-127
|
|
10-20
|
|
10
|
|
0.112
|
|
1.898
|
DA-188
|
|
70-82
|
|
12
|
|
0.128
|
|
0.186
|
DA-193
|
|
60-70
|
|
10
|
|
0.164
|
|
0.700
|
DA-197
|
|
10-20
|
|
10
|
|
0.180
|
|
1.090
|
DA-199
|
|
40-54
|
|
14
|
|
0.113
|
|
1.063
|
DA-200
|
|
70-82
|
|
12
|
|
0.252
|
|
1.266
|
DA-208
|
|
0-10
|
|
10
|
|
0.143
|
|
0.899
|
DA-209
|
|
30-36
|
|
6
|
|
0.114
|
|
1.550
|
DA-212
|
|
10-20
|
|
10
|
|
0.167
|
|
0.279
|
DA-215
|
|
0-10
|
|
10
|
|
0.105
|
|
0.909
|
DA-228
|
|
50-60
|
|
10
|
|
0.219
|
|
0.485
|
DA-237
|
|
10-20
|
|
10
|
|
0.131
|
|
1.440
|
|
|
Weighted Average per ton Gold
|
|
Weighted Average per ton Silver
|
||
Q1, 2014
|
|
0.024
|
|
|
0.345
|
|
Q2, 2014
|
|
0.034
|
|
|
0.546
|
|
Q3, 2014
|
|
0.026
|
|
|
0.564
|
|
Q4, 2014
|
|
0.039
|
|
|
0.680
|
|
2014 YTD
|
|
0.030
|
|
|
0.527
|
|
|
|
|
|
|
||
Q1, 2015
|
|
0.039
|
|
|
0.734
|
|
Q2, 2015
|
|
0.030
|
|
|
0.654
|
|
2015 YTD
|
|
0.034
|
|
|
0.688
|
|
|
June 30, 2015
|
|
June 30, 2014
|
|
Change
|
||||||
Revenue - Mining
|
$
|
5,442,027
|
|
|
$
|
5,978,983
|
|
|
$
|
(536,956
|
)
|
Revenue - Hospitality and lease
|
46,264
|
|
|
236,932
|
|
|
(190,668
|
)
|
|||
|
|
|
|
|
|
|
|||||
Costs applicable to mining revenue
|
3,219,831
|
|
|
5,466,762
|
|
|
(2,246,931
|
)
|
|||
Hospitality and lease operating costs
|
61,267
|
|
|
304,846
|
|
|
(243,579
|
)
|
|||
Exploration and mine development
|
530,660
|
|
|
693,559
|
|
|
(162,899
|
)
|
|||
Mine claims and costs
|
657,255
|
|
|
964,400
|
|
|
(307,145
|
)
|
|||
Environmental and reclamation
|
24,698
|
|
|
410,781
|
|
|
(386,083
|
)
|
|||
Land and Road Development
|
862,246
|
|
|
—
|
|
|
862,246
|
|
|||
General and administrative
|
1,311,329
|
|
|
1,476,336
|
|
|
(165,007
|
)
|
|||
Loss from operations
|
(1,178,995
|
)
|
|
(3,100,769
|
)
|
|
1,921,774
|
|
|||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
—
|
|
|
18,373
|
|
|
(18,373
|
)
|
|||
Interest expense
|
(330,451
|
)
|
|
(307,204
|
)
|
|
(23,247
|
)
|
|||
Other income (expense)
|
—
|
|
|
1,014
|
|
|
(1,014
|
)
|
|||
|
|
|
|
|
|
||||||
NET INCOME (LOSS)
|
$
|
(1,509,446
|
)
|
|
$
|
(3,388,586
|
)
|
|
$
|
1,879,140
|
|
|
June 30, 2015
|
|
June 30, 2014
|
|
Change
|
||||||
Revenue - Mining
|
$
|
11,369,201
|
|
|
$
|
11,585,047
|
|
|
$
|
(215,846
|
)
|
Revenue - Hospitality and lease
|
156,507
|
|
|
394,329
|
|
|
(237,822
|
)
|
|||
|
|
|
|
|
|
||||||
Costs applicable to mining revenue
|
6,937,743
|
|
|
10,229,663
|
|
|
(3,291,920
|
)
|
|||
Hospitality and lease operating costs
|
261,294
|
|
|
591,145
|
|
|
(329,851
|
)
|
|||
Exploration and mine development
|
1,133,854
|
|
|
1,494,777
|
|
|
(360,923
|
)
|
|||
Mine claims and costs
|
1,421,361
|
|
|
1,916,922
|
|
|
(495,561
|
)
|
|||
Environmental and reclamation
|
304,810
|
|
|
582,996
|
|
|
(278,186
|
)
|
|||
Land and Road Development
|
862,246
|
|
|
—
|
|
|
862,246
|
|
|||
General and administrative
|
3,457,234
|
|
|
3,668,307
|
|
|
(211,073
|
)
|
|||
Loss from operations
|
(2,852,834
|
)
|
|
(6,504,434
|
)
|
|
3,651,600
|
|
|||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
—
|
|
|
(216,834
|
)
|
|
216,834
|
|
|||
Interest expense
|
(554,124
|
)
|
|
(493,534
|
)
|
|
(60,590
|
)
|
|||
Other income (expense)
|
3,186,626
|
|
|
1,236
|
|
|
3,185,390
|
|
|||
|
|
|
|
|
|
||||||
NET INCOME (LOSS)
|
$
|
(220,332
|
)
|
|
$
|
(7,213,566
|
)
|
|
$
|
6,993,234
|
|
Issuer Purchases of Equity Securities
|
||||||||
Period
|
|
(a)Total number of shares (or units) purchased
|
|
(b)Average price paid per share (or unit)
|
|
(c)Total number of shares (or units) purchased as part of publicly announced plans or programs
|
|
(d)Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs
|
April 1-April 30, 2015
|
|
0
|
|
0
|
|
Not applicable
|
|
Not applicable
|
May 1-May 31, 2015
|
|
0
|
|
0
|
|
Not applicable
|
|
Not applicable
|
June 1-June 30, 2015
|
|
235,151
|
|
0
|
|
Not applicable
|
|
Not applicable
|
Total
|
|
235,151
|
|
0
|
|
Not applicable
|
|
Not applicable
|
|
|
|
|
|
|
Exhibit
Number
|
|
Exhibit
|
|
|
|
10.1
|
|
Master Lease Agreement dated as of May 12, 2015, between Varilease Finance Inc. and the Company.
|
|
|
|
31.1
|
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
|
|
|
|
31.2
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
|
|
|
|
32.1
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
95
|
|
Mine Safety Disclosures.
|
|
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101
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Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended June 30, 2015, furnished in XBRL (eXtensible Business Reporting Language)).
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Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Condensed Consolidated Balance Sheets at June 30, 2015 and December 31, 2014, (ii) the Condensed Consolidated Statements of Operations for the three months and six months ended June 30, 2015 and 2014, (iii) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014 and (iv) the Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.
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COMSTOCK MINING, INC.
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(Registrant)
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Date: July 21, 2015
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By:
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/s/ Corrado De Gasperis
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Name: Corrado De Gasperis
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Title: President and Chief Executive Officer (Principal Executive Officer)
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LESSOR:
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LESSEE:
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VARILEASE FINANCE, INC.
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COMSTOCK MINING INC.
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By:
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/s/ Kristy Phillips
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By:
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/s/ Corrado De Gasperis
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Name:
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Kristy Phillips
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Name:
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Corrado De Gasperis
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Title:
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Vice President
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Title:
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President and CEO
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/s/ Corrado De Gasperis
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Corrado De Gasperis
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President and Chief Executive Officer (Principal Executive Officer)
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/s/ Judd Merrill
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Judd Merrill
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Principal Financial Officer
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/s/ Corrado De Gasperis
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Corrado De Gasperis
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President and Chief Executive Officer (Principal Executive Officer)
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/s/ Judd Merrill
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Judd Merrill
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Principal Financial Officer
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Mining
Operating
Name
MSHA
Identification
Number
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Section
104S&S
Citations
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Section
104(b)
Orders
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Section
104(d)
Citations
and
Orders
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Section
110(b)(2)
Violations
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Section
107(a)
Orders
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Total Dollar
Value of
MSHA
Assessments
Proposed
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Total
Number
Of Mining
Related
Fatalities
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Received
Notice of
Pattern of
Violations
Under
104(3)
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Received
Notice of
Potential
to Have
Pattern of
Violations
Under
Sections
104(3)
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Legal
Actions
Pending
as of
Last
Day of
Period
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Legal
Actions
Initiated
During
Period
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Legal
Actions
Resolved
During
Period
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||||||||||
26-01871
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1
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—
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—
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—
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—
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$
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804
|
|
—
|
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No
|
No
|
No
|
—
|
|
—
|
|