Comstock Mining cuts losses by $3.5M

Comstock Mining of Virginia City on Thursday reported a $5.5 million loss for the 2013 second quarter, a decrease from the $9 million lost in the same quarter of 2012.

The decrease of $3.5 million was due primarily to a $6.8 million boost in mining revenue and a $4.9 million drop in all other operating expenses, which were offset by $8.2 million of costs applicable to mining, according to a company news release. Gold shipments amounted to 4,921 ounces, an increase of 118 percent from the 2,261 ounces a year earlier.

Corrado De Gasperis, chief executive officer, said this year production was ramped up to currently permitted levels, and other pertinent actions were taken.

“We also significantly acted on our costs and reconciled and updated our mine plan, improving our prospective grade profile and positioned the system for significant growth and cost efficiency in the second half of this (company fiscal) year,” he said.

Debt also was lowered. On June 30, it was $6.2 million, which compared with total debt at year-end 2012 of $13.7 million. That was primarily due to full payoff of a revolving credit facility. Cash and cash equivalents were $2.4 million.

The company said it had received county approval to expand processing capacity, which allows for the doubling of planned production rates by the fourth quarter of this year. The total would go from 1 million tons per year to more than 2 million. Final state permitting is expected by late September, the firm reported.