Comstock Mining Announces Full Second Quarter 2020 Results; Increased Strategic Investment Values Drives Positive Net Income, Deploying Mercury Systems
Second Quarter 2020 Selected Financial Highlights
-Total operating costs were $1.3 million in Q2 2020, a $0.2 million or a 15.9% improvement over Q2 2019; -Interest expense was $0.1 million in Q2 2020, a $0.1 million or a 49.6% improvement over Q2 2019; -Other income, net was $2.2 million, primarily driven by gains of $1.6 million on equity investments in Tonogold and $0.4 million on the contingent forward assets receivable still committed to us by Tonogold; -Net income was $1.3 million, or $0.05 per share for three-months ended June 30, 2020, as compared to a prior period net loss of $2.1 million, or ($0.13) loss per share, driven by investment gains and lower costs; -Net income was $1.0 million, or $0.04 per share for six-months ended June 30, 2020, as compared to a prior period net loss of $3.9 million, or ($0.24) loss per share, driven by investment gains and lower costs; and -Cash and cash equivalents at June 30, 2020, were $1.0 million.
Recent 2020 Selected Strategic Highlights
-Extinguished the current Senior Secured Debenture from a combination of $0.9 million in accelerated cash proceeds from Tonogold and new, unsecured promissory notes, with favorable, extended terms; -Investments in Tonogold Resources Inc. (“Tonogold”) valued at $10.4 million at June 30, 2020, a $1.6 million increase in fair market value driving positive net income for the three months ended June 30, 2020; -Investment in Mercury Clean Up LLC (“MCU”) increased to $1.75 million (in cash and stock) at June 30, 2020, with on-site installation of the Comstock mercury remediation system underway (pictured below); -Extended agreements for the sale of Comstock’s two non-mining properties in Silver Springs, NV, for total expected proceeds of $10.1 million, with the closings expected this quarter; and Consummated the April acquisition of 25% of PELEN LLC, owner of the historic Sutro Tunnel Company.