Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”), an
innovator of technologies that enable systemic decarbonization and
the energy transition by efficiently converting under-utilized
natural resources into renewable energy products, today announced
its second quarter results and business updates.
“The focus for 2023 is the commercialization of our
technologies,” said Corrado De Gasperis, Comstock’s executive
chairman and chief executive officer. “Our biorefining and metal
recycling technologies are commercially ready and offer
unprecedented performance for our prospective customers. Our
dedicated Fuels team is progressing multiple revenue producing
opportunities with globally recognized renewable fuel producers
while our Metals team has finalized its first commercial-ready
production system, applied for all permits and is readying the
equipment and the site for deployment in the second half of 2023.
We have also commercialized a portion of our mining claims bringing
in new cash proceeds estimated at well over $2.0 million in
2023.”
Selected Strategic Highlights from the Second Quarter
2023
Strategic Investments
The Company’s strategic investments have outperformed in
providing non-dilutive cash and rapid technology development.
Notable actions:
- Agreed to sell the LINICO facility for $27+ million delivering
non-dilutive proceeds of over $15 million in cash
- Agreed to sell 4% of Green Li-ion Pte. Ltd. (“Green Li-ion”)
preferred shares for $0.8 million
- Advanced discussion for the monetization of our investments in
Silver Springs real estate and water rights
“We successfully monetized our LINICO facility for 2023 cash
proceeds of over $15 million and have agreed to monetize a portion
of our investment in Green Li-Ion, at a valuation suggesting
potential additional proceeds of up to $20 million,” continued De
Gasperis. “Our Silver Springs properties have also risen in value
to potentially yield another $20 million.”
Comstock’s strategic investment in Quantum Generative Materials
LLC (“GenMat”) represents a valuable component of the Company’s
long-term innovation strategy, both in terms of advancing
technologies that enable systemic decarbonization and by leveraging
artificial general physics-based intelligence (“AGPI”) for more
efficient and effective mineral discovery. It has:
- Established a research agreement with the Indian Institute of
Science (IISc), collaborative conducting experiments in the fields
of density functional theory (DFT), artificial intelligence (AI),
material prediction and computational fluid dynamics (CFD),
atomistic simulation, and machine learning models, further
accelerating GenMat technologies
- Elevated physics-based material simulations and confirmed the
precision and accuracy of those simulations
- Received regulatory approval for the launch and operation of
its hyperspectral imaging sensor for mineral discovery
“GenMat is an important component of our technology innovation
strategy,” stated Mr. De Gasperis. “Its ability to simulate and
engineer new material solutions, including, for example, batteries
and semi-conductors, can be employed today for commercial use,
while it continues developing toward AGPI for more efficient and
effective mineral discovery.”
Comstock Fuels
- Demonstrated the production of commercially effective
lignocellulosic bio-intermediates suitable for use in existing
renewable fuel refineries at pilot scale in our R&D facility
and established the capability for ongoing operations
- Developed a baseline lifecycle carbon analysis (“LCA”) model
with a third-party engineering firm to demonstrate industry-leading
carbon intensity (“CI”) scores for fuel produced through our
pathways
- Advanced development agreement discussions for commercial scale
projects with multiple, operationally experienced, technologically
sophisticated, and well capitalized customers
“Our innovation and engineering teams have now demonstrated the
highest industry yields with the most beneficial carbon impact,”
stated David Winsness, President of Comstock Fuels. “Producing 100+
gasoline gallon equivalents per tonne of lignocellulosic feedstock
delivers a leading lifecycle carbon intensity score and a
profitable pathway to expanded biofuel production globally.”
Comstock Metals
- Finalized commercial deployment plans for our production-ready
photovoltaic recycling system
- Leased an operating facility and submitted permits for
proprietary metal processing and recycling system in Nevada
- Finalized the broader material recycling system and equipment
for deployment, and permit-pending production
- Engaged leading electronic waste material suppliers for
securing photovoltaics feedstock
“We have effectively repositioned our recycling production
system, attacking the immediately addressable photovoltaic
materials market,” said Dr. Fortunato Villamagna, President of
Comstock Metals. “We are now readying our newly leased facility and
establishing agreements with material suppliers so we can start
production as soon as our permits are approved.”
Comstock Mining
- Executed a revenue generating lease with Mackay Precious Metals
Inc. resulting in $2+ million in 2023 cash revenues, and advancing
mineral exploration in our northernmost mining claims
- Established a plan for more than doubling our mineral
resources, leveraging our team, technology and partners
- Continued engagement with multiple mineral-development parties
for expanding revenues and mineral resources
- Advanced our planning with GenMat for developing and expanding
the next-generation geostatistical digital model of the most
strategic development areas, including the launch of space-based
hyperspectral imager later this year
“We have received cash proceeds of $1.25 million from our new
mineral lease with nearly $1.0 million more expected in 2023,”
continued Mr. De Gasperis. “We are engaged with multiple, potential
development partners with the objective of enabling a material
expansion of our gold and silver mineral resources, while
simultaneously achieving cash profitability.”
Selected Financial Results
The Company unveiled its companywide vision during its UPLODE23
Virtual Investor Day online, June 28, 2023. The videos from this
event are available on the Company’s website.
“UPLODE23 showcased the scope of our dedicated, knowledgeable,
and innovative leadership teams and enabled our investors to
broadly appreciate how Comstock has positioned itself as a
technology company, leading an unprecedented and globally impactful
clean energy transition. Our investments and the ongoing
commercialization of these decarbonizing technologies have
positioned us for explosive, exponential growth that will span
decades,” stated Mr. De Gasperis.
Net loss for the six-months ended June 30, 2023 decreased
by $9.5 million to $11.2 million (or a loss of $0.11 per share)
from a loss of $20.6 million (or a loss of $0.30 per share) for the
comparable 2022 period. Debt was $6.4 million at June 30, 2023, as
compared to $7.9 million at December 31, 2022. Cash and cash
equivalents were $1.6 million and $2.5 million, on June 30, 2023
and December 31, 2022, respectively. The Company had 105,876,509
outstanding common shares at June 30, 2023.
The Company meaningfully advanced and expects to complete the
monetization of over $30 million in sales of our non-strategic
assets during 2023, including the net $15 million in cash and stock
proceeds already received from the sale of the LINICO facility and
certain equipment (“Facility.”) For the six-months ended
June 30, 2023, the Company received cash proceeds of $21.0
million from American Battery Technology Company (“ABTC”) and a net
9,076,923 of ABTC common stock toward the sale of the Company’s
Facility. The Company now expects to sell these shares during in
the third and fourth quarters of 2023, and expects to receive, at a
minimum, proceeds of $6.0 million. The Company paid $12.0 million
to close on the Facility, representing estimated 2023 of
approximately $15.0 million from the purchase and sale of the
Facility. The Company anticipates a more than $7.0 million gain
upon closing the Facility sale.
Outlook Highlights
Comstock Fuels is engaged with multiple, operationally
experienced, technologically sophisticated customers and partners
for early adopter commercial agreements for commercial scale
projects for supplying our bio-intermediates and expects one or
more agreements to be completed this year.
Comstock Metals has submitted all permits for operating its
manufacturing facility in Silver Springs, NV, and expects receipt
of permits and the full deployment of its entire production system
by the end of 2023, with operations commencing as soon as permits
are received. Comstock Metals also expects initial supply-revenue
agreements in advance of production.
Comstock Mining is developing, in collaboration with GenMat and
potentially other mineral development partners, a next-generation
geostatistical digital model of the most strategic development
areas, including the broader Dayton resource area, using existing
geologic and geophysical data and advancing those efforts toward
expansion plans of the existing resources.
The Company expects to exceed its non-mining asset sales target
by well over $30 million in net cash proceeds.
Conference Call Details
Comstock will host a conference call today, Thursday, August 10,
2023, at 4:15 p.m. ET to report its Second Quarter 2023 results and
business update. We invite all investors and other interested
parties to register for the webinar at the link
below.Date: August 10,
2023Time: 4:15 pm ETRegister:
Webinar Registration
HAVE QUESTIONS? There will be an allotted time
following the live presentation for a Q&A session. Unaddressed
questions will be reviewed by management and responded to
accordingly. You may submit your question(s) beforehand in the
registration form (linked above) or by email at:
ir@comstockinc.com.
About Comstock Comstock (NYSE: LODE)
commercializes technologies that enable systemic decarbonization
and the energy transition by efficiently converting under-utilized
natural resources into renewable energy products, and by leveraging
physics based artificial intelligence for more efficient and
effective mineral and materials discovery.
To learn more, please visit www.comstock.inc.
Forward-Looking Statements This press
release and any related calls or discussions may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical facts, are forward-looking
statements. The words “believe,” “expect,” “anticipate,”
“estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,”
“would,” “potential” and similar expressions identify
forward-looking statements but are not the exclusive means of doing
so. Forward-looking statements include statements about matters
such as: future market conditions; future explorations or
acquisitions; future changes in our research, development and
exploration activities; future financial, natural, and social
gains; future prices and sales of, and demand for, our products and
services; land entitlements and uses; permits; production capacity
and operations; operating and overhead costs; future capital
expenditures and their impact on us; operational and management
changes (including changes in the Board of Directors); changes in
business strategies, planning and tactics; future employment and
contributions of personnel, including consultants; future land and
asset sales; investments, acquisitions, joint ventures, strategic
alliances, business combinations, operational, tax, financial and
restructuring initiatives, including the nature, timing and
accounting for restructuring charges, derivative assets and
liabilities and the impact thereof; contingencies; litigation,
administrative or arbitration proceedings; environmental compliance
and changes in the regulatory environment; offerings, limitations
on sales or offering of equity or debt securities, including asset
sales and associated costs; business opportunities, growth rates,
future working capital, needs, revenues, variable costs, throughput
rates, operating expenses, debt levels, cash flows, margins, taxes
and earnings. These statements are based on assumptions and
assessments made by our management in light of their experience and
their perception of historical and current trends, current
conditions, possible future developments and other factors they
believe to be appropriate. Forward-looking statements are not
guarantees, representations or warranties and are subject to risks
and uncertainties, many of which are unforeseeable and beyond our
control and could cause actual results, developments, and business
decisions to differ materially from those contemplated by such
forward-looking statements. Some of those risks and uncertainties
include the risk factors set forth in our filings with the SEC and
the following: adverse effects of climate changes or natural
disasters; adverse effects of global or regional pandemic disease
spread or other crises; global economic and capital market
uncertainties; the speculative nature of gold or mineral
exploration, and lithium, nickel and cobalt recycling, including
risks of diminishing quantities or grades of qualified resources;
operational or technical difficulties in connection with
exploration, metal recycling, processing or mining activities;
costs, hazards and uncertainties associated with precious and other
metal based activities, including environmentally friendly and
economically enhancing clean mining and processing technologies,
precious metal exploration, resource development, economic
feasibility assessment and cash generating mineral production;
costs, hazards and uncertainties associated with metal recycling,
processing or mining activities; contests over our title to
properties; potential dilution to our stockholders from our stock
issuances, recapitalization and balance sheet restructuring
activities; potential inability to comply with applicable
government regulations or law; adoption of or changes in
legislation or regulations adversely affecting our businesses;
permitting constraints or delays; challenges to, or potential
inability to, achieve the benefits of business opportunities that
may be presented to, or pursued by, us, including those involving
battery technology and efficacy, quantum computing and generative
artificial intelligence supported advanced materials development,
development of cellulosic technology in bio-fuels and related
material production; commercialization of cellulosic technology in
bio-fuels and generative artificial intelligence development
services; ability to successfully identify, finance, complete and
integrate acquisitions, joint ventures, strategic alliances,
business combinations, asset sales, and investments that we may be
party to in the future; changes in the United States or other
monetary or fiscal policies or regulations; interruptions in our
production capabilities due to capital constraints; equipment
failures; fluctuation of prices for gold or certain other
commodities (such as silver, zinc, lithium, nickel, cobalt,
cyanide, water, diesel, gasoline and alternative fuels and
electricity); changes in generally accepted accounting principles;
adverse effects of war, mass shooting, terrorism and geopolitical
events; potential inability to implement our business strategies;
potential inability to grow revenues; potential inability to
attract and retain key personnel; interruptions in delivery of
critical supplies, equipment and raw materials due to credit or
other limitations imposed by vendors; assertion of claims, lawsuits
and proceedings against us; potential inability to satisfy debt and
lease obligations; potential inability to maintain an effective
system of internal controls over financial reporting; potential
inability or failure to timely file periodic reports with the
Securities and Exchange Commission; potential inability to list our
securities on any securities exchange or market or maintain the
listing of our securities; and work stoppages or other labor
difficulties. Occurrence of such events or circumstances could have
a material adverse effect on our business, financial condition,
results of operations or cash flows, or the market price of our
securities. All subsequent written and oral forward-looking
statements by or attributable to us or persons acting on our behalf
are expressly qualified in their entirety by these factors. Except
as may be required by securities or other law, we undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Neither this press release nor any related calls or discussions
constitutes an offer to sell, the solicitation of an offer to buy
or a recommendation with respect to any securities of the Company,
the fund, or any other issuer.
Contact Information:
For investor inquiries, contactRB Milestone
GroupTel (203) 487-2759ir@comstockinc.com
For press inquiries or questions, contact Zach
SpencerComstock Inc.Tel (775) 847-7532questions@comstockinc.com
Source: Comstock Inc.
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