Comstock (LODE) 30 Oct 182018 Q3 Earnings call transcript

Good day, ladies and gentlemen. Welcome to the Comstock Mining Q3 Update Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Gasperis. De Corrado ahead. Please go

clean Brittany, release summary and and call. It's you, both and I'll with morning, night, auditors, XX-Q from Deloitte the & this the good to our information morning. here, Touche. a XX-Q welcome Form conference a filed Corrado as XXXX typical we our from brief Thank provide our everyone. press review of third Last in the quarter included

mining diligently projects good advancing We and some our of our we technically very and are use non-mining both announced land on today sales.

copy that we're If on away some me are XXXX. Lucerne we you higher on Releases. remarks to are don't to These today's focus from the and similar website with Thanksgiving. reports the and launching announce detailed be I and And call. based and our during the the that cause into facts how enhanced find have and with website please certainly to this are call, SEC before the call under also values statements on a a subject our success copy differ results a Relations now News/Press that some related of new morning's in Please release. launch, the monetizing actual expect Any by at we're materially. and addition efforts I'm same having identify. on www.comstockmining.com forward-looking risks section. constitute could and dramatically Please same statements may subject all that expectations that in of historical the to on risks uncertainties time of statements uncertainties lookout on a just weeks progress, and now you'll few Investor non-mining that starting Dayton note, that monetizing for to made On release, that this statement quarter to let are this be other can't to also the assets make going current you forward-looking matters will which and to not may announcement are last and statements. outlook, remind risks and the the the I'm we the in deliver These forward-looking the filed company a

to important year. Tono First, highlight as from most this for let option the the into progress you moved the quarter payment was they Lucerne million far of second received know, With it me so phase where the year, this the mining and XX because the has the a second has can we of already $XX been during $X This million spent earn Tonogold. Lucerne, option, that by activities which its cumulative a includes by XX% the XXXX, of months, making $X interest expended. exploration advancing million capital development which of investment mining Mine of in of Lucerne April within [indiscernible] by be that

represents in reimbursements million months. in spent $X million date fixed fully also, date Of costs. there $X go to that next to $X is to million XX So summary, and X/X the our Lucerne-related to

recognized Mine one and be that of of meticulously working With Recall ounce in rainfall We report that drivers that gold per Dayton had and multiple resource that sampled when the X.X report. Tono the synchronizing in compliance minerals. quarter. number technical remarkable ounces revealed major will over Tono around X.XX for XX-XXX very, continue the independent very Nevada-based zone this to is process. is Development exposed feet our resource in high-grade an back critical ton with including discovered updated feet firm, newly all as importantly, silver. Just mining value development biggest and per activities, engaged encapsulated a of to zones. the mineralized we ton draft Associates, activities of of Lucerne publish the we Dayton, X upcoming had make toward Earlier an over of this initially X new discovery year, a a for geological we announced end heavy the then

The Just expanded expanded sampling channel zones. multiple what attempt see, samples intervals. did define overwhelming. we sampling. shear included of week, of along continuous an along exhaustive it consistent feet the systematic was not minerals around program full success to the mapping every and tight last the in intervals. announced on could really zone, we some but that the one [indiscernible] of and and X extremely Based visible I the extent collection a we shear program's scope the the The geologists literally, mean,

XX over averaged shear per and ton almost of the over ounce mineralized ounce X.X zone, over closed and ounces ton. X.XXX that in X.X-foot for an which silver plus the gold feet in gold per resulted of feet of ton ounces of have We per a XX entire materials ton over X.XX including segment of X.XX silver, average of per

the For per over grams ton ton metric grams and of well gold of X that's folks, silver. per XX over

selenium In silver. rates, levels we'd incredibly project. and values additional the terms of process. directly of when those to elevated do XX detectable of that of in gold molybdenum, contribute focus minerals, feasibility but to confirm we and sampling the found But There's never [indiscernible] contiguous mining, only Normally, lands we that will elevated tungsten. samples, that these aren't minerals elements really other previously analyzed cadmium, expensive, economic only outstanding original that including also further identification our and for other the zinc on

an expanded discovery materials we're doing new work the solutions, that We because have other of very for of processing on zero significant of a these where these we expectation alternative do potentially recyclings testing well. that's uses mainly So the materials. and those low, as latest waste,

to the feasibility. be equation those when so processes, additional economic and kind the additive additional on respect valuable the say, processes, quite these these to And materials let's of become non-cyanide working we're with and minerals could Dayton

work very we it's Dayton, the Dayton. on exciting Dolbear all that's So to as XX-XXX with done a have being for do also engaged Behre separately the insofar us,

be where now of that expect the published updated, to report quarter Our schedule first we been XXXX. has in

dramatically road, So to Lucerne I updated one and the we're recently people from Washington, community Dayton. Most BLM accepted of of the And well safely and mercury of $X that XXXX Sustainable of material X,XXX Many aware corporate of State perspective, over by congratulate tons the out. now love how we the came removal Mineral benefited would gold at of not to we Route we of consecutive our Award realigned aware whole silver over D.C. the in one and XXX,XXX contaminated standalone technical exceptional legacy but from the extracted realignment reports, waterway, Development looking in related behind a also community million was who the standalone road XXX. left resulting the are that in of about it that's not how quarters extracted the the the only in are worth the From from team, pounds process. old-timers. sense that

a Reclamation and the completed us also certainly top BLM by of having Nevada puts was It true and I Department the U.S. on that, comes We're and the without project environmental Excellence the Department proud the the company. at county, on time state, was food Division in voted community, Protection, when that of So budget chain Minerals, the XXXX the Awards and it of to think, responsibility, real XXXX that social most any Environmental for of leadership, the unanimously gotten Wildlife, the disruption. especially with win-win-win-win-win,

BLM. the and Service Forest

to from work team great we want gives an our for So foundation incredibly us there. moving do sound forward. everything that It

earlier for zero with technologies which solutions, As potentially to breakthrough and renewable we're these waste mentioned all I clean even of alternatives reaching partners though, nontoxic. higher technology and new processes new are build clean our

materials provided Our we collaboration -- virgin expanded objectives. of X new with We really from this that new higher-grade the really have delivered we has sample now. the material with announced Dayton. Itronics the samples with them recently ore And

first model in potentially and leached liquid where for as to with see recovered material leached extracting process efficient very shows materials, flow features compelling If our processing breakthrough previously had if it the leached testing the developed want recover we've second, silver. same very it solution to with And solution, KAM-Thio we saw very, gold be success silver that could and the that our to we results. compelling material, of we solution us. Itronics, regenerative that as for proprietary will tests that's the same very the effectively economic battery a First,

last of by sort coincidentally liability year transactions. end cost first of million we finally are the technical hope across $X our the of since importantly, it non-mining updated down that with I debt said, So report, consummating into doing our and with continue reducing as over Financially, quarter an aggregating XXXX. but spectrum work more the we all

quarter that but sell an which a still almost about It on an with that Springs purchase reached We're [indiscernible] transaction was with agreement quarter. the or the option. was X done balance, Just advanced material week. also asset. announced November close million, number the of working last we totaling the We effectively sale, Daney to took company end, we estate last very acres $X.X our for own million. was water which with million schedule of And to this Hill this million. Ranch XXX contingency also closing while deferred to this $X a Gold hookup and on diligent fast sale Silver The current resolved have slash that almost $X.XX material the debenture also strategic to for before It's Hotel of on quarter hotelier To debt consummated be sewer with new a the all-cash boutique the experienced it's simple for the will transactions just rights. that anticipated We sell counterparties bringing done. transactions this a closing and be of significantly month, XX% has to financial XX. to contingencies to no $X.XX about the one a we real had

technical will our operation and of And it we've again coincides off of the March these the of to closing their quarter current allows XXXX of XXXX. publishing property frame in result of us that entirety. are That funding the first deposits. on all that assets But payments the We in debenture, and monetize Silver for pushed elimination with the until time Springs reports. of also targeted

For that will eliminate and very these our that overhang and investors stabling of We're done not harder, The the that moving us, our very, only of to many to focus. get for remove [indiscernible] for whole transaction because can't funding. our this we operations stock finally Obviously, our balance it on million a in sheet, look as gives place but have provide critical material strong worth us of soon forward. sale sits $XX debt, our target happy move of non-mining we're of we it It's it enough. to strengthening really creates very forward now the assets and monetize faster value.

foundation For a reassessment for resource discussion, us and of about the defer the premature Lucerne, coming a of preliminary it's us It's this yet talk deliver provide and which economic because soon valuations now Tono our technical only strong report, not very, on little to amount feasibility. With profiling. will done develop resource a partnering with a publishing new very is we'll to but very Dayton, both tremendous we've it's quarter. so economic available,

are short very of this gold Outside minimum them, base. on. we're But to intention triple through There $X,XXX more there's know value. really we're and to shells, that the feasibility initiatives assets, economic only assuming monetizing required work non-mining we to been Again very, the the I've very that But have of We to is work that a strategic point, million, want that resource our we ultimately resource that some speak development triple complete. at We of putting on. but really specifically of a that the that. it's work than that's hard at $XX a can't that thing other that number working doing working about economic active.

we're very, this consummating we that technologies from related for to growth-focused. them, joint from know development, very in through path through mining out through metal we're pursue precious turn laid the the to. quarter, it mining metal have strategic us. We're refocused and the acquisition, supportive future transactions, through through these of With getting made growth, that to about to great, through the what Our solely moving expansion growth monetizing in precious company. a company. clears and weathered downturn coming stabilizing ones and very board mining, We're That's really we And finally in foundation. has on gold these here, that path ones assets feel showing resource development, the and that we a are a our future benefit come non-mining resource front we almost strongly we're this resource that potential us

going So Brittany, to to let questions. there and with turn stop us the I'm prepared remarks

[Operator Instructions].

first Securities. Our Wedbush with question from comes Jon Howe

of Dayton. Dayton could overstated. mean, it And Kind how Resource I same possibly about talking could the having it Lucerne -- lead wondering seems was of issue. like that Lucerne the and to I'm just kind was

No, good it's a question.

So Resource were were there contemplated. when XXXX/XXXX, different was that the Lucerne published in parameters certainly

cutoff for that For economic Those to today. to any, think And we the grade We estimate be economic constrain I'll variable that could to is Having mining. to by would a is let's considerations. that resource doing what the very depths. constrained example, contemplation good, would was and allowances. report resource really about resource a the weren't expect the step very identify. consider it that economic constrain a any we It the wasn't would didn't say, it say to it's said when specific, Tono the didn't the is that, advanced in we constrained of But next comes we further resource I take practical work mineable broadest very resource cutoff, a we shell. try

seems it like I embedded, the are beyond So size just referred of much pedantic. assumptions more grade, and and being that the shell even that they're ones some to,

we the expect the of but maybe resource resource. see, size the estimates in quality that in word of not of the terms to to the So new total is I that applicable very think of terms robust the

small. a the for published to for really reserves work seeing we don't we're time. have foundation So that, And be reserves. strong the never to expect it be Tono Having is said that we first establishing doing

in it in things, importantly, shell cross-assessment preliminary same the for terms done do the resource, but the only context, an and the an in right, not establishing have more reserves. putting in area, the we'll we of a And with it, assessment Now Dayton. around economic economic of foundation constraining terms we're where the the tightening we're

However, geologists' Resource the It's but didn't nearer to breadth -- It's our relatively my I the say doesn't have certainly, opinion opinions, grade. much in some engineers' Dayton complexities of the and surface. average a have, would Lucerne. and the doesn't even of higher

see reductions saw the intentionally in don't -- So we in focus of certain contexts. some in Dayton the we In I reserve. a that don't they to Lucerne of expect others, will with be achieving there

about resource But great like almost great a even feel resource. Dayton XX%, really stand-alone economic We Resource, average something we that with first Resource. So higher the the in shell, our The It's well. twice pass assessment. grade, good smaller Dayton moving a has economic it's grade. about a feel quality XX% preliminary to as

positive. will So the update I be think

for investors clear foundationally critical it's resources. reconciled have the of think I our updated, view to current,

reserve, is just it resource, the that, really we a said which get really want prelude what to having to. course, is Of to the

news, the is them. do. X work work to happening is we showing I be economic. expect grow to to think, still paths to clear reserves. the them good And There's still There's that's So potential

that's ultimately So goal. end the

grade you're increasing cutoffs make that a So words, reason why that could a saying I'm in got positive change. strong you're and is estimate economic is the other resource eye the what shell, reasons up economic. number there's tightening to you've of the more A

of of it the think Comstock I overall. the us, be potential So great a for will is reestablishment what

[ph] Mordick Our from Harvey next from question comes Investor.

XX.X that shares to of million. number up went the at from million we looking XX.X I'm

purchased and this at you share? is you in million equity. personnel $X.XXX company that, roughly what of a the And addressed other company X.X that's have So

No.

about of for million sales an should That we other sales. some So that shares; were -- $X.XXX, placements: in the we mine of have. be million I purchase and facility not then And components X.X to shares. that major payment venture made. we August there number was one, that about made X referred you those $X.XXX those of investor the at to to through which make three was -- of Northern $X.XXX. equity The shares XX.X% there one raising Leviston Comstock sale But that think joint that the actually. X.X individual were was the equity capital was private at -- was did I

So cover that should that well. as

to that a unaccounted leaves Northern to Okay. still being equity. at And million the million of X.X private there came showing placement, appears X.X more be million that to of -- a X XX the showing XXX is I'm million Comstock. million million X.X That couple isn't least still couple for. from I'm addressed company that through. to

accounted it just not might second. where X -- -- -- for. just let it's I see me Yes, me give

[Operator Instructions].

still with I'm this question. Brittany, on second, one Hold please. on a Yes,

I to misspeak. no X Harvey, I than other sure I just see. there X want don't Just so Yes, see that don't make second, those there's I -- can categories shares other --

have So the to And to I facility. Leviston that might because... to just check number relating has million X.X double be it

How much to have Comstock? Northern do more liability we

So over over just it's $X million next a nine liability, Comstock little the Northern the years.

being that's determined by... $X.XXX at or And issued it's

it's it's that per value way No, of the annum. that structured $XXX,XXX is

month cash August, is And option to the a we month, have However, cash XX on XXth we the pay for in pay which then or months. stock. $XX,XXX in

the to [indiscernible]. payment option in year every under we'd pay Ultimately, way in in We we is that August the pay about all cash. the to pay half But current love have we So in determined it it cash. of cash. the

a to better quarter leaves price turned a little forward we're bottom we've hopefully, But hitting share So place. around with that the us now bit. the a moving third and

Okay.

are in this all... is new the So Or private that's any there institutionals placements, coming game? roughly XX% dilution. The

both a imagine can to coming currently of in couple net million, we've put a one you high in. in them worth on that's last the million new category, almost category would trading lot good got the of weeks. this X%. the we But eyes see or if sort that But we X. over been have new are accumulation. stock and the or We X over share a do [indiscernible]. don't investors institutional have I of Yes, million volume that's there's of X X mean, sort I X

I lot stock. that good they share the even think asset non-mining a to were investors, liquidity in fruition, this debt these know there's coming news stock. of is I eyes the the And some until with see some of the So on despite There's of sales finally hesitant price, the started happening. to reduction lower

So get some in seeing We're to overwhelming individual accumulations in yet. forward. amount point I the this -- it think we're volume not not traction not already, but just absolute it's good it's necessarily going from -- of

happening else quickly? happening What [indiscernible] of probability what's Okay. over us. at is And at something Springs? Silver looking the

I in is going the two One for [indiscernible] strategic there's major purpose of just financial right? think with land this discussions with a developer. forming And on, area. the other sole is the investing

They're get last I the These understand variable. So the they're area, do. to XX months, mean, the some people really didn't of going speculating which the in understand over people. developing. required a probably knowledgeable, people best but very prerequisites didn't serious very is of we've lot had

probability next X the in that the months to X is very think high. I

are transactions clear. the we're we've looking -- got, So contingencies getting that to the

to the as to. see That's just announce go We'll to it's as the market obviously debt going wants close. not soon critical. just down, hear the they're closed they're So them because that marching

agreed we'll as thing. be And rest as for do have four it, we same then to to the transactions of in or soon So move next that weeks so. will the the

doing mid-October, until of all time spending up almost I personally, that. So was my

my #X the make I'm because spending to sure obviously, to deck it a that it dramatic trying impact clears else. of time that's sort still everything the of priority for has dilution. us do on And about Now XX%

from these positive here So can closed. just it's get things if we

in not the The There's players are for picture But that in just assessment. lot area a serious has there we're gone [indiscernible]. through crisis, we're it's like a of the is all industrial housing a capacity The I crisis. literally hunkering think -- now happening. capacity seems it down no anything. area overall

as is getting So that building people are out it, away. filled right

lead expected, get I just So It's the -- excellent. to we longer than they're remains to it's but extraordinarily just where guess, with time happening. we are, environment

Okay.

there the us question, on my are assets? rest other at For of with last any looking the miners venturing

been question. properties. increase a mining So great interest a that's and There marked in has

And be Nevada. -- specific, so and the investors that are category. that meaningful in capital mining have to more I that speculative, aren't making resources unfinanced mean, with miners meaningful are is that this aren't prioritizing there increase

would but that early X the in of X put So to markedly increased I X. very category to from

Black question comes with from Our Paul Diamond. next Bornstein

since couple Making lack through into over the of at looking will maybe performance given money shares markets, mining the of more the volatile the years. some sector, come last

going sell more the pay mean, do coming -- I'm what at starting that. side, estate could else I -- because of on the time in, just a curious, check whatever how investor. and other nothing the you're pay you trying a on the hookups to players I'm on just mining instead other its on need, potential on deals you're or of much get working I you've look money you know money down And real -- positive mining got to period to mine to some you on short or maybe own I'm we So really been I'm move I'm had some side. your to the mining or balance to cash -- in see debt. little to the on equation got And side now, down a trying just you've really hopefully obviously things But with to if right trying of if other debt your sheet. do of looking real -- you're see lot and a results the

All right, sure.

Lucerne, capital preliminary Option and one technical quarter year. as economic with So that the through assessment -- coming with report for is Agreement for coming we covered next the you this happening option covered foremost, another first know Dayton speak and is that's the the through

it's about a its us. [indiscernible] own good And That's pace. So from is we're Lucerne pace, it. capital a happy

first if going about Dayton, minute, for the $X we're million cash second the land Dayton, the cuts half. But in a $X bag. we million about the to transactions talked On I one consummating the a puts work just debt And to in looking back the step Dayton based then technical internally. for just we already on drill the that we've with that of $X report expand publish in a to at done looking And we're $X.X were kind to funding, million program that million resource material. consummating

we're think two the the I in regardless. and place two Dayton both move So you'll Lucerne And reports to in a good the forward. technical get next quarters,

looking Yes, range looks And do investing to level, yet, it they'll reasonable get take you're not because companies up comfortable that can something. opportunity to move you like these people a the forward. opportunity feel where mining want potential still where to at it in at and

We're very close.

getting you're that's there. I'm why But just... Yes,

We're very close.

on looking not take it's to while little space out yours more the there's going to people yet, there in also. you're and they if that are there assets a at go at looking Because before opportunities other versus

that's screen So moved be this you at up and on the a radar little. especially has up everybody if space want to with price else looking

I think does there. get this get the it [indiscernible], Certainly, think I there. Yes, does time by us us

but real chopping still it's time. the wood, we're So

getting start you'll hopefully, there. upped at yes, And since in the marketplace your But you're recognized down least still Okay. bottom. you

filtering start will through. of So hopefully, this some news

it. like Paul. Thanks, seems It

to allotted De the a like and to to time would call turn come Ladies remarks. closing now the answers close. you. I has for Mr. and gentlemen, for back questions Gasperis Thank over

the the just getting I got traction want thank Brittany. lot everyone for the sales. stock interest. and in We've Thanks, eyes non-mining a time, on to of

the about, which updates developments So I'll is the that. just and talk on resource

time. happening but now the look year. and forward times least end all the coming year of at through a you, it's We real updating between here next to not So few

great look to I have to talking forward soon. you day, So Bye-bye. a and all

This today's teleconference. everyone. concludes you, Thank

may disconnect. You now