Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today
announced its recent operational highlights, third quarter 2023
results, and updated outlook.
“Substantially all of our activities are focused
on commercialization, with recent achievements demonstrating our
substantial progress including asset sales, permits, license
agreements, patent filings, etc., as well as the completion of all
milestones required for the scale-up of our proprietary
lignocellulosic biomass refining process,” said Corrado De
Gasperis, Comstock’s executive chairman and chief executive
officer.
Strategic Investments
The Company’s strategic investments provided
non-dilutive cash and profitable gains during the third quarter, as
we:
- Sold a battery
facility for $28.9 million and recognized a gain of $7.3
million;
- Sold 1,500 Green
Li-ion preferred shares for $0.8 million, triggering a realized
gain of $0.6 million;
- Recognized
additional unrealized gains on the remaining Green Li-ion preferred
shares of $14.6 million; and
- Advanced
discussion for additional monetization of our investments in Silver
Springs and Green Li-ion.
“We completed a number of strategic investment
transactions that resulted in meaningful financial gains, including
non-dilutive cash inflows, significant accounting gains, and
recognition of materially increased asset values. This resulted in
a positive net income reflected in our quarterly and year-to-date
results,” said Mr. De Gasperis. “There has also been a tremendous
increase in Silver Springs activity, with many recently-announced,
high-profile approvals and transactions in the immediate vicinity
of our assets. This established higher comparable values and an
increased expectation of higher sale prices for these
properties.”
Comstock’s strategic investment in generative
physics-based artificial intelligence through Quantum Generative
Materials LLC ("GenMat") is a crucial component of Comstock’s
technology innovation strategy. GenMat focuses on developing and
using its proprietary generative physics-based artificial
intelligence (“ZENO”) to accelerate the development of materials
and the discovery of minerals, with the following achievements
during the nine months ended September 30, 2023:
- Received full
regulatory approvals and approved the launch of GenMat-1, GenMat’s
space-based satellite and advanced hyperspectral imaging sensor for
mineral discovery applications;
- Advanced
material simulation capability to TRL 7 by synthesizing and
directly testing ZENO’s ability to predict material properties and
confirmed the precision and accuracy of those new material
simulations;
- Successfully
tested its generative physics AI models to create unique nano
particle structures which inform downstream synthesis,
demonstrating an accelerated capability for materials discovery;
and,
- Progressed
discussions with potential early adopter enterprise clients for
advanced materials simulation and synthesis.
“GenMat is a crucial component of our technology
innovation strategy,” stated Mr. De Gasperis. “Its ability to
simulate and engineer new material solutions, including batteries
and semi-conductors, can be employed today for commercial use,
while we continue collaborating toward artificial general physics
intelligence for more efficient and effective mineral
discovery.”
Comstock Fuels
The Company completed all validation milestones
for its proprietary lignocellulosic biomass refining process,
including:
- Biomass
conversion yields exceeding 100 gallons per dry tonne on a gasoline
gallon equivalent basis (“GGE”);
- Confirmed
market-leading, extremely low carbon intensity (“CI”) scores of
15;
- Executed an
exclusive license with RenFuel K2B AB (“RenFuel”) to use its
patented catalytic esterification process to refine Comstock’s
proprietary Bioleum™ biointermediates in North America, Central
America, and South America;
- Completed our
techno-economic analysis for deploying Bioleum™ hub solutions
across the Americas; and,
- Advanced
discussions with operationally experienced,
technologically-sophisticated and well-capitalized customers.
“These achievements significantly raise the bar
for the CI-enhanced value of our cellulosic fuel yields while
providing meaningful diversification and availability of feedstocks
for producers today,” stated Mr. De Gasperis. “Our
unprecedented low CI and high yields continue to receive
confirmation as a major competitive differentiator in our ongoing
sales discussions.”
Comstock Metals
- Finalized
technology readiness for photovoltaic material recycling and
ordered all equipment;
- Leased and
prepared facility for equipment arrival;
- Received
required county operating permit;
- Submitted State
operating and air quality permits, with issuance of both expected
this year; and,
- Engaged multiple
sources of photovoltaic materials toward securing revenue and
supply agreements.
We have taken a leadership position in this
huge, readily available, and rapidly growing photovoltaic market,”
stated Mr. De Gasperis. “We have submitted all permits for our
manufacturing facility in Silver Springs, NV, and expect permit
issuance and deployment of all equipment before the end of 2023,
with solar panel recycling operations commencing in early
2024.”
Comstock Mining
- Developing
next-generation geostatistical digital model of Comstock’s most
strategic development areas, with plans for an expanded dataset
from the launch of space-based hyperspectral imager November
2023;
- Enhanced
exploration targets for an excess of 2 million gold equivalent
ounces targeted for development; and,
- Recorded an
additional $0.5 million in revenue during the third quarter.
“Our joint development efforts with GenMat are
enabling a new AI-based mineral discovery capability that we expect
will enhance and accelerate our mineral development efforts, with
the hope of accelerating us past our 2-million-ounce target,”
stated De Gasperis. “The recent regulatory approval of GenMat-1’s
best-in-class hyperspectral imager clears us for the launch of the
satellite in early November, while our geologic teams continue
building towards a digital twin of the Comstock district.”
Selected Financial Results
For the three-months ended September 30, 2023,
the Company recognized net income of $13.7 million, or $0.11 per
share, representing an increase of $19.0 million as compared to a
net loss of $5.3 million, or $(0.07) per share, from the comparable
prior period. The increase primarily resulted from an unrealized
gain on higher value ascribed to the Green Li-ion investments of
$14.6 million and the realized gain from the sale of the battery
facility and related equipment of $7.1 million, partially offset by
higher selling, general and administrative expenses of $1.2 million
and a prior period gain of $1.1 million on the sale of the Daney
Ranch (“Daney”). Cash and cash equivalents were $3.4 million at
September 30, 2023.
For the nine-months ended September 30, 2023,
the Company recognized net income of $2.6 million, or $0.01 per
share, an increase of $28.5 million as compared to a net loss of
$25.9 million, or $(0.36) per share, from the comparable prior
period. The increase resulted from an unrealized gain on higher
value ascribed to the Green Li-ion investments of $14.6 million,
the gain from the sale of the battery facility and related
equipment of $7.3 million and prior period expenses of $6.7 million
for fair value changes in derivative instruments and $3.2 million
for impairment of investments and notes receivables that did not
recur, and higher selling, general and administrative expenses of
$3.2 million, partially offset by a prior period gain of $1.1
million from the Daney Ranch sale.
Selected Operating
Highlights
During the quarter, the Company completed all of
the milestones required for the scale-up of its proprietary
lignocellulosic biomass refining process, including announcing
its proprietary Hydrodeoxygenated Bioleum™ Oil (“HBO”) product,
biofuel production yields of more than 100 GGE per dry tonne of
woody biomass, and market-leading, extremely low CI scores of 15
for Cellulosic Ethanol and the Company’s. HBO is a unique,
compliant, drop-in biointermediate used in the production of
Sustainable Aviation Fuel and Renewable Diesel Fuel. It has been
verified to increase the diversity of hydroprocessed, fat-based
feedstock and significantly reduce CI scores beyond what is
commercially achievable today. The carbon intensity of fossil fuels
is industry-benchmarked at between 80 and 95. A score of 15
demonstrates carbon reductions in excess of 80%.
The Company also executed an exclusive license
agreement with RenFuel K2B AB (“RenFuel”) for use of RenFuel’s
patented catalytic esterification process to refine Comstock Fuel’s
proprietary Bioleum™ biointermediates in North America, Central
America, and South America.
Outlook
Comstock Fuels is engaged with multiple,
operationally experienced, technologically sophisticated customers
and partners for early adopter commercial agreements for committed
offtake, supply of feedstocks and commercial scale production
projects for supplying our biointermediates and is working toward
one or more such 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
early in 2024. Comstock Metals also expects initial supply-revenue
agreements in advance of production.
Comstock Mining is developing, in collaboration
with GenMat, AI-based, next-generation exploration tools, using the
Company’s extensive geologic and geophysical data along with
GenMat’s hyperspectral imaging solution to condition the AI and
ground-truth its predictions. The launch of the satellite and
hyperspectral imager is scheduled for November 2023.
Comstock’s Strategic Investments are expected to
contribute 2024 net cash asset sales proceeds in excess of $40
million.
Conference Call Details
Comstock will host a conference call today,
Thursday, October 26, 2023, at 4:15 p.m. ET to report its Third
Quarter 2023 results and business update. We invite all investors
and other interested parties to register for the webinar at the
link below.
Date: October 26, 2023
Time: 4:15 pm ET
Register: 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 Inc.
Comstock (NYSE: LODE) commercializes
technologies that enable systemic decarbonization and accelerate
the energy transition by efficiently converting under-utilized
natural resources into renewable energy products and solutions, 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. 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 media inquiries or questions, contact Zach
SpencerComstock Inc.Tel (775) 847-7532questions@comstockinc.com
Source: Comstock Inc.
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