General and administrative expenses of $1,715,512 for the year ended June 30, 2001, decreased slightly com- pared to $1,768,428 for the year ended June 30, 2000. Exploration expenses decreased from $1,625,698  in fiscal 2000 to $743,627 in fiscal 2001, primarily due  to decreased expenditures at the Milos Gold project. Lease maintenance and holding costs decreased from $242,127 in fiscal 2000 to $30,433 in fiscal 2001, primar- ily due to decreased holding costs related to the Milos Gold project. Depreciation and depletion increased from $1,193,108 in fiscal 2000 to $1,270,621 in fiscal 2001, primarily due to the increased depletion associated  with the Company’s purchase of the GSR3 royalty at  the Pipeline Mining Complex, because the royalty rate increased from 0.475% to 0.7125% during the year. The Company recorded an impairment related to its royalty interest at Bald Mountain by $490,215, because of the operator’s revised reserve estimates. Interest and other income decreased from $271,347 in fiscal 2000 to $258,010 in fiscal 2001, pri- marily due to decreased funds available for investing. For the year ended June 30, 2000, the Company recorded net earnings of $3,952,979, or $0.22 per diluted share, as compared to a net loss of $8,808,173, or $0.51 per diluted share, for the year ended June 30, 1999. Net earnings for fiscal year 2000 reflect $9.4 million in  royalty revenues. The Company received royalty revenues of $8,976,422 from its royalties at the Pipeline Mining Complex, of which $1,151,843 relates to the now completed Crescent Pit production.The Company also received $429,881 from its royalty at Bald Mountain. In the prior fiscal year, the Company received royalty rev- enues of $441,102 from the Crescent Pit and $530,848 from Bald Mountain. Cost of operations increased compared to the prior year, primarily related to Nevada Net Proceeds Tax expenditures associated with the increased royalties at the Pipeline Mining Complex. General and administrative expenses of $1,768,428 for the year ended June 30, 2000, increased slightly com- pared to $1,704,326 for the year ended June 30, 1999, primarily because of non-recurring severance costs and a non-recurring stock grant to non-employee directors offset by an overall decrease in expenses due to cost containment efforts. Exploration expenses decreased from $2,831,095 in fiscal 1999 to $1,625,698 in fiscal 2000, primarily due to decreased expenditures at the Milos Gold project, the Manhattan project and the Alligator Ridge project. Lease maintenance and holding costs decreased from $410,249 in fiscal 1999 to $242,127 in fiscal 2000, primarily due to decreased holding costs at the Alligator Ridge property. In fiscal 1999, the Company recorded a full impair- ment of its investment in the Inyo Gold project.There were no impairments in fiscal 2000. Depreciation and depletion increased from $463,733 in fiscal 1999 to $1,193,108 in fiscal 2000, primarily due to the depletion associated with the Company’s purchase of the GSR3 royalty at the Pipeline Mining Complex. Interest and other income decreased from $654,448 in fiscal 1999 to $271,347 in fiscal 2000, pri- marily due to decreased funds available for investing. 14 Fiscal Year Ended June 30, 2000, Compared with Fiscal Year Ended June 30, 1999