Comstock Inc 10-Q for FY2023 Q1

Comstock Inc. (LODE)

10-Q 2023-05-03 For: 2023-03-31

Added on April 10, 2026

About this 10-Q

Comstock Inc filed this 10-Q on May 3, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $30.75K; down 43.7% from $54.63K a year earlier
Net loss: $5.68M; compared with a net loss of $6.55M a year earlier
Diluted EPS: -$0.06; compared with -$0.09 a year earlier

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Nevada		65-0955118
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

117 American Flat Road, Virginia City, NV		89440
(Address of principal executive offices)		(Zip Code)
	(775) 847-5272
	(Registrant’s telephone number)

	Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.000666 per share	LODE	NYSE American


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.
CONDENSED CONSOLIDATED BALANCE SHEETS			5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS			6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY			7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS			8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.			32
Item 3. Quantitative and Qualitative Disclosures About Market Risk			39
Item 4. Controls and Procedures.			39

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.			40
Item 1A. Risk Factors.			40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.			40
Item 3. Defaults Upon Senior Securities.			40
Item 4. Mine Safety Disclosures.			40
Item 5. Other Information.			40
Item 6. Exhibits.			40
Signatures			42


	March 31, 2023		December 31, 2022
ASSETS

Current Assets:
Cash, cash equivalents and restricted cash	$	8,105,256	$	2,521,772
Notes receivable and advances, net - current portion	5,556,267		5,012,275
Assets held for sale	20,460,978		21,684,865
Deposits - current portion	520,098		809,583
Prepaid expenses and other current assets	869,147		739,118
Total current assets	35,511,746		30,767,613

Noncurrent Assets:
Investments	18,319,162		18,784,327
Mineral rights and properties	13,302,013		12,571,418
Properties, plant and equipment, net	13,411,461		13,474,094
Construction in progress	443,623		—
Reclamation bond deposit	2,754,058		2,727,815
Notes receivable and advances, net	970,771		959,318
Intangible assets, net	17,163,230		17,663,681
Finance lease - right of use asset, net	2,900,965		2,911,458
Other assets	214,276		194,035
Total noncurrent assets	69,479,559		69,286,146

TOTAL ASSETS	$	104,991,305	$	100,053,759

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable	$	590,954	$	714,077
Accrued expenses and other liabilities	2,152,707		1,719,597
Deposits	510,100		422,603
Deferred liabilities	12,502		—
Derivative liabilities	11,916,205		14,545,800
Liabilities, held for sale	21,940,904		12,021,566
Finance lease - right of use lease liability	389,294		409,143
Debt, net - current portion	3,431,419		1,795,890
Total current liabilities	40,944,085		31,628,676

Long Term Liabilities:
Reclamation liability	5,318,591		5,226,505
Finance lease - right of use lease liability, non-current portion	417,750		406,968
Debt, net - non-current portion	3,642,520		6,121,443
Other liabilities	349,954		306,708
Total long-term liabilities	9,728,815		12,061,624

Total liabilities	50,672,900		43,690,300

COMMITMENTS AND CONTINGENCIES (Note 9)

Stockholders' Equity
Preferred Stock $.000666 par value, 50,000,000 shares authorized, no shares outstanding	—		—
Common stock, $.000666 par value, 245,000,000 shares authorized, 103,035,152 and 91,442,018 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	68,501		60,660
Treasury stock 2,605,323 and 2,605,323 shares, at cost, at March 31, 2023 and December 31, 2022, respectively	(3,360,867)		(3,360,867)
Additional paid-in capital	352,064,106		348,390,556
Accumulated deficit	(297,160,369)		(291,491,432)
Total equity - Comstock Inc.	51,611,371		53,598,917
Non controlling interest	2,707,034		2,764,542
Total stockholders' equity	54,318,405		56,363,459
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	104,991,305	$	100,053,759


	Three Months Ended March 31,
	2023		2022

Revenue	$	30,750	$	54,625

Operating expenses:
Selling, general and administrative expenses	3,386,972		2,402,766
Research and development	1,268,379		1,195,418
Depreciation & amortization	631,041		844,529
Gain on sale of property	(178,193)		—
Total operating expenses	5,108,199		4,442,713

Loss from operations	(5,077,449)		(4,388,088)

Other Income (Expense)
Gain (loss) on investments	—		351,624
Interest expense	(615,178)		(324,724)
Interest income	45,857		356,861
Change in fair value of derivative instruments	698,595		3,065,000

Loss on conversion of debt	(270,456)		—
Impairment of intangible assets	—		(1,966,969)
Impairment of investments, net recovery	—		(2,509,920)
Other income (expense)	(463,111)		(1,130,807)
Total other income (expense), net	(604,293)		(2,158,935)

Net loss	(5,681,742)		(6,547,023)

Net loss attributable to noncontrolling interest	(12,805)		(168,468)

Net loss attributable to Comstock Inc.	$	(5,668,937)	$	(6,378,555)

Weighted average common shares outstanding, basic and diluted	94,715,215		67,351,776

Earnings per Share - Basic and Diluted:
Net loss per share - basic and diluted	$	(0.06)	$	(0.09)


	Common Stock			Additional		Accumulated		Treasury Stock		Non-Controlling
	Shares	Amount		Paid in Capital		Deficit		Amount		Interest		Total
BALANCE - January 1, 2022	71,207,832	$	47,065	$	338,936,145	$	(245,542,688)	$	(3,870,000)	$	3,400,000	$	92,970,522

Common stock received and cancelled in the rescission of the LPB transaction	(3,500,000)	(2,331)		(5,107,669)		—		—		—		(5,110,000)
Common stock issuance costs	—	—		(70,000)		—		—		—		(70,000)
Capital contribution to LINICO by Aqua Metals	—	—		176,695		—		—		323,305		500,000
Employee and director share-based compensation	—	119		108,480		—		—		—		108,599
Sales of treasury shares (1,485 common shares)	—	—		805		—		1,916		—		2,721
Net loss	—	—		—		(6,378,555)		—		(168,468)		(6,547,023)
BALANCE - March 31, 2022	67,707,832	$	44,853	$	334,044,456	$	(251,921,243)	$	(3,868,084)	$	3,554,837	$	81,854,819




















BALANCE - January 1, 2023	91,442,018	$	60,660	$	348,390,556	$	(291,491,432)	$	(3,360,867)	$	2,764,542	$	56,363,459

Issuance of common stock	6,090,276	4,056		2,145,944		—		—		—		2,150,000
Common stock issuance costs	—	—		(607,620)		—		—		—		(607,620)
Issuance of common stock for stock issuance costs	963,445	642		349,358		—		—		—		350,000
Issuance of common stock for conversion of debt and accrued interest	4,539,413	3,023		1,659,700		—		—		—		1,662,723
Employee and director share-based compensation	—	120		126,168		—		—		—		126,288
LINICO dividends earned by AQMS not distributed	—	—		—		—		—		(44,703)		(44,703)
Net loss	—	—		—		(5,668,937)		—		(12,805)		(5,681,742)
BALANCE - March 31, 2023	103,035,152	$	68,501	$	352,064,106	$	(297,160,369)	$	(3,360,867)	$	2,707,034	$	54,318,405


NON-CASH INVESTING AND FINANCING ACTIVITIES:

Issuance of common shares for debt conversion and accrued interest	$	1,662,723	$	—
Issuance of common shares for Leviston due diligence and commitment fees	$	350,000	$	—
Common stock received in the rescission of the LPB transaction	$	—	$	5,110,000
Tonogold note receivable exchanged for option	$	—	$	(6,650,000)


	March 31, 2023			December 31, 2022
Equity Method Investments:	Investment		Ownership %	Investment		Ownership %
Quantum Generative Materials LLC	$	12,868,811	48.19%	$	13,312,433	48.19%
Pelen Limited Liability Company	597,641		25.00%	619,184		25.00%
Total equity method investments	13,466,452			13,931,617
Alternative Measurement Method Investments:
Green Li-ion Pte. Ltd.	4,517,710			4,517,710
Sierra Springs Opportunity Fund, Inc., at cost	335,000			335,000
Total Investments	$	18,319,162		$	18,784,327


	March 31, 2023*		December 31, 2022*
Current assets	$	669,124	$	1,023,023
Non-current assets	9,979,955		12,034,506
Current liabilities	3,625		89,584
Non-current liabilities	—		—


	March 31, 2023*		March 31, 2022*
Revenues	17,450		73,697
Gross Profit	17,450		73,697

Net income (loss) and net income (loss) attributable to the entity	$	(1,269,167)	$	(2,956,597)


	March 31, 2023		December 31, 2022
Current portion
Sierra Springs advances receivable	$	5,540,000	$	4,990,000
Other notes receivable	16,267		22,275
Total notes receivable and advances, current portion	$	5,556,267	$	5,012,275

Non-current portion
Daney Ranch note receivable	$	992,210	$	993,000
Unamortized discount for implied interest	(21,439)		(33,682)
Daney Ranch note receivable, net of discount	970,771		959,318
Total notes receivable and advances, non-current portion, net	$	970,771	$	959,318


	March 31, 2023		December 31, 2022
Land	$	6,328,338	$	6,328,338
Real property leased to third parties	1,037,049		1,037,049
Property, plant and equipment for mineral processing	27,644,745		27,644,745
Other property and equipment	5,270,355		5,212,891
Accumulated depreciation	(26,869,026)		(26,748,929)
Total property, plant and equipment, net	$	13,411,461	$	13,474,094


	March 31, 2023		December 31, 2022
Comstock Mineral Estate	$	12,164,013	$	12,164,013
Other mineral properties	317,405		317,405
Water rights	820,595		90,000
Total mineral rights and properties	$	13,302,013	$	12,571,418


Description	Estimated Economic Life	March 31, 2023		December 31, 2022

Developed technologies	10 years	$	19,382,402	$	19,382,402
License agreements	10 years	510,752		510,752
Customer agreements	1 year	122,885		122,885
Distribution agreements	8 years	19,733		19,733
Trademarks	10 years	7,000		7,000
Accumulated amortization		(2,879,542)		(2,379,091)
Intangible assets, net		$	17,163,230	$	17,663,681


Remainder of 2023	$	1,497,202
2024	1,993,499
2025	1,993,499
2026	1,993,499
2027	1,993,499
Thereafter	7,692,032
	$	17,163,230


	As of December 31, 2022		Additions		Impairment		Amortization		As of March 31, 2023
Intangible assets	$	20,042,772	$	—	$	—	$	—	$	20,042,772
Accumulated amortization	(2,379,091)		—		—		(500,451)		(2,879,542)

Total intangible assets and goodwill	$	17,663,681	$	—	$	—	$	(500,451)	$	17,163,230


	As of December 31, 2021		Additions		Impairment		Amortization		As of March 31, 2022
Intangible assets	$	23,514,259	$	500,000	$	(350,000)	$	—	$	23,664,259
Accumulated amortization	(338,958)		—		—		(568,309)		(907,267)
Goodwill	12,788,671		—		—		—		12,788,671
Total intangible assets and goodwill	$	35,963,972	$	500,000	$	(350,000)	$	(568,309)	$	35,545,663


	March 31, 2023		March 31, 2022
Weighted-average remaining lease term - finance leases	1.08		0.50
Weighted-average remaining lease term - operating leases	5.51		6.50
Weighted-average discount rate - finance leases	6.0	%	6.0	%
Weighted-average discount rate - operating leases	11.0	%	11.0	%


	Operating Leases		Finance Leases
For the remainder of 2023	$	7,425	$	426,105
2024	10,250		417,750
2025	10,550		—
2026	10,850		—
2027	11,150		—
Thereafter	9,550		—
Total lease payments	59,775		843,855
Less: imputed interest at 11%	(15,609)		(36,811)
Present value of lease liabilities	$	44,166	$	807,044


For the remainder of 2023	$	68,175
2024	94,725
2025	96,000
2026	96,000
2027	96,000
Thereafter	192,000
Total Minimum Lease Income	$	642,900


	March 31, 2023		December 31, 2022
GHF Secured Promissory Note – 6% interest, due December 15, 2024	$	4,290,000	$	4,290,000
Alvin Fund LLC Promissory Note - 9% interest, due October 25, 2023	2,000,000		2,000,000
Ionic Unsecured Convertible Promissory Note - 8% interest, due March 16, 2024	2,054,236		3,150,000
Total debt	8,344,236		9,440,000
Less: debt discounts and issuance costs	(1,270,297)		(1,522,667)
Total debt, net of discounts	7,073,939		7,917,333
Less: current maturities	(3,431,419)		(1,795,890)
Long-term debt, net of discounts and issuance costs	$	3,642,520	$	6,121,443


	March 31, 2023		December 31, 2022
Accrued interest expense	$	127,717	$	43,398
Accrued payroll costs	559,058		627,210
Accrued executive bonuses	1,160,156		928,125
Accrued vendor liabilities	300,345		115,653
Other accrued expenses	5,431		5,211
Total accrued expenses	$	2,152,707	$	1,719,597


Lease Assets and Liabilities	Classification	March 31, 2023		December 31, 2022
Finance lease right-of-use asset	Assets held for sale	$	15,709,039	$	15,709,039
Finance lease right-of-use asset	Finance lease - right to use asset, net	2,900,965		2,911,458
Operating lease right-of-use asset	Other current assets	40,774		42,061
Total right of use assets		$	18,650,778	$	18,662,558

Operating lease liability - current	Accrued expenses and other liabilities	$	5,431	$	5,211
Operating lease liability - long-term	Other liabilities	38,735		40,193
Finance lease liability	Liabilities - held for sale	11,899,360		12,021,566
Finance lease liability, current portion	Finance lease - Right of use lease liability	389,294		409,143
Finance lease liability	Finance lease - Right of use lease liability, long term portion	417,750		406,968
Total lease liabilities		$	12,750,570	$	12,883,081


	Three months ended
	March 31, 2023		March 31, 2022
Finance lease cost:
Amortization of right-of-use assets	$	10,493	$	125,275
Interest on lease liabilities	195,712		195,611
Operating lease cost	2,525		2,525
Total lease cost	$	208,730	$	323,411

Other information
Operating cash flows from operating leases	$	2,475	$	9,350
Financing cash flows from finance leases	$	—	$	8,389


	March 31, 2023		December 31, 2022
Right of use lease asset, net of amortization	$	15,709,039	$	15,709,039
Lease intangible, net of amortization	3,501,939		3,501,939
Deposits	1,250,000		1,250,000
Property, plant and equipment	—		710,563
Construction in progress	—		513,324
Total assets held for sale	$	20,460,978	$	21,684,865


	March 31, 2023		December 31, 2022
Deferred unrealized gain on sale	$	10,041,544	$	—
Right of use lease liability	11,899,360		12,021,566
Total liabilities held for sale	$	21,940,904	$	12,021,566


Year	Leases
Remainder of 2023	$	67,000
2024	109,000
2025	111,000
2026	151,000
2027	151,000
Thereafter	1,512,250
Total minimum annual lease payments	$	2,101,250


	Number of Warrants	Exercise Price		Expiration Date
GHF, Inc.	200,000	$	1.0000	August 22, 2024
GHF, Inc.	500,000	$	0.4555	December 15, 2024
GHF, Inc.	500,000	$	2.5217	December 15, 2024
Total Outstanding warrants	1,200,000


			Fair Value Measurements at
			March 31, 2023
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Ionic convertible debenture derivative	$	(24,000)	$	—	$	—	$	(24,000)
LINICO related derivative	(5,468,162)		—		(5,468,162)		—
Haywood derivative	(1,190,000)		—		(1,190,000)		—
GenMat derivative	(5,234,043)		—		(5,234,043)		—
Total liabilities measured at fair value	$	(11,916,205)	$	—	$	(11,892,205)	$	(24,000)


	For the three months ended		For the three months ended
	March 31, 2023		March 31, 2022
Total shares granted	30,000		40,000
Performance condition valuation inputs:
Performance condition shares	15,000		20,000
Stock price at grant date	$	0.28	$	1.68
Market condition valuation inputs:
Market condition shares	15,000		20,000
Stock price	$	0.28	$	1.68
Volatility	97%		95%
Risk-free rate	4.13%		2.51%
Number of iterations	150,000		100,000
Fair value per share	$	0.02	$	0.91
Term (in years)	2.5		2.2


Three Months Ended March 31, 2023	Renewable Energy		Mining		Strategic and Other Investments		Total
Revenue	$	—	$	22,950	$	7,800	$	30,750

Depreciation and amortization	$	254,650	$	61,694	$	314,697	$	631,041

Loss from operations	$	(1,957,283)	$	(554,926)	$	(2,565,240)	$	(5,077,449)

Change in fair value of derivative instruments	$	—	$	—	$	698,595	$	698,595







Total other income (expense), net	$	(194,573)	$	21,838	$	(431,558)	$	(604,293)

Net loss	$	(2,151,856)	$	(533,087)	$	(2,996,799)	$	(5,681,742)

Total Assets:	$	15,481,219	$	7,866,799	$	81,643,287	$	104,991,305

Capital Expenditures	$	788,059	$	—	$	—	$	788,059


Three Months Ended March 31, 2022	Renewable Energy		Mining		Strategic and Other Investments		Total
Revenue	$	—	$	46,825	$	7,800	$	54,625

Depreciation and amortization	$	400,083	$	92,637	$	351,809	$	844,529

Loss from operations	$	(2,066,433)	$	(181,200)	$	(2,140,455)	$	(4,388,088)

Change in fair value of derivative instruments	$	—	$	—	$	3,065,000	$	3,065,000

Impairment of intangibles	$	—	$	—	$	(1,966,969)	$	(1,966,969)

Impairment of investment, net recovery	$	(54,587)	$	(2,455,333)	$	—	$	(2,509,920)

Total other income (expense), net	$	(375,267)	$	(2,442,825)	$	659,157	$	(2,158,935)

Net loss	$	(2,441,700)	$	(2,624,025)	$	(1,481,298)	$	(6,547,023)

Total Assets:	$	43,096,560	$	9,632,060	$	62,390,773	$	115,119,393

Capital Expenditures	$	782,500	$	—	$	—	$	782,500


	March 31, 2023		March 31, 2022		Change
Revenue	$	30,750	$	54,625	$	(23,875)

Operating expenses:
Selling, general and administrative expenses	3,386,972		2,402,766		984,206
Research and development	1,268,379		1,195,418		72,961
Depreciation & amortization	631,041		844,529		(213,488)
Gain on sale of property	(178,193)		—		(178,193)
Total operating expenses	5,108,199		4,442,713		665,486

Loss from operations	(5,077,449)		(4,388,088)		(689,361)

Other Income (Expense)
Gain (loss) on investments	—		351,624		(351,624)
Interest expense	(615,178)		(324,724)		(290,454)
Interest income	45,857		356,861		(311,004)
Change in fair value of derivative instruments	698,595		3,065,000		(2,366,405)

Loss on conversion of debt	(270,456)		—		(270,456)
Impairment of intangible assets	—		(1,966,969)		1,966,969
Impairment of investments, net recovery	—		(2,509,920)		2,509,920
Other income (expense)	(463,111)		(1,130,807)		667,696
Total other income (expense), net	(604,293)		(2,158,935)		1,554,642

Net loss	$	(5,681,742)	$	(6,547,023)	$	865,281

Net loss attributable to noncontrolling interest	$	(12,805)	$	(168,468)	$	155,663

Net loss attributable to Comstock Inc.	$	(5,668,937)	$	(6,378,555)	$	709,618


Exhibit Number						Exhibit

31*						Certification of Principal Executive 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. pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.

32*						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

101*						Interactive Data File (Quarterly Report on Form 10-Q, for the periods ended March 31, 2023, furnished in XBRL (eXtensible Business Reporting Language)). Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, (ii) the Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022, (iii) the Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2023 and 2022, (iv) the Condensed Consolidated Statements of Cash Flows for three months ended March 31, 2023 and 2022 and (v) the Notes to 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, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.


COMSTOCK INC.

By: /s/ CORRADO DE GASPERIS
CORRADO DE GASPERIS
Executive Chairman
Chief Executive Officer
(Principal Executive Officer,
Principal Accounting Officer,
Principal Financial Officer)
Date: May 3, 2023


1.	I have reviewed this quarterly report on Form 10-Q of Comstock Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and,

	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


1.			The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C 78m(a) or 78o(d)); and

2.			The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


/s/ Corrado De Gasperis
Corrado De Gasperis
Executive Chairman and Chief Executive Officer (Principal Executive, Financial and Accounting Officer)


Mining Operating Name MSHA Identification Number	Section 104S&S Citations	Section 104(b) Orders	Section 104(d) Citations and Orders	Section 110(b)(2) Violations	Section 107(a) Orders	Total Dollar Value of MSHA Assessments Proposed		Total Number Of Mining Related Fatalities	Received Notice of Pattern of Violations Under 104(3)	Received Notice of Potential to Have Pattern of Violations Under Sections 104(3)	Legal Actions Pending as of Last Day of Period	Legal Actions Initiated During Period	Legal Actions Resolved During Period
26-01871	—	—	—	—	—	$	—	—	No	No	—	—	—
26-02771	—	—	—	—	—	$	—	—	No	No	—	—	—