Comstock (LODE) 29 Oct 192019 Q3 Earnings call transcript

Good day and welcome to the Comstock Mining Q3 Update Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Corrado De Gasperis. Please go ahead, sir.

Thank you, Samantha, and good morning, everyone. Gasperis, Comstock De line. on Corrado is CEO speaking of the This on I our our Zach listening Giron, both External line CFO Director And JC and new have and President; Relations the today. Spencer, to you quarter welcome we our And conference third call.

file week, this review included report quarterly on third this and summary information released & Deloitte that our Touche. supported Later press initiatives. provide our our today a the XX-Q, brief by quarter progress the on in release will we strategic morning customary with Form And I’ll was of our

you release our have a If website don’t will on a copy Releases. today’s copy News/Press you of at under www.comstockmining.com, find

let statements subject to this could to facts current not also forward-looking historical cause are remind statement are make expectations, constitute results and that we statements call. statements. forward-looking uncertainties based are Please may on and that actual on materially. The you related me the that Any to risks same differ matters

detailed filed uncertainty press risks previous SEC forward-looking necessarily risks And in those that this and call subject same by with and we to statements in the all are These identify. the release. during morning’s company other this and and are made cannot reports

in Nevada, Gold Gold deep have appreciation would take him our like who I Wanamaker] for Before I Hill he a at start, of a for moment our Jeff away known a Annual to many last with you seen even fixture for for of of Meetings, passed Hotel. one or [ph]. [Jeff shareholders, month. And the and the Shareholder passion and Hill especially Comstock was

those will deeply his and sympathies company. he We you. you, caring And missed. all Wanamaker] a who and to to is was thoughtful loved him. at he bless is miss Jeff. [Linda go God and the We and be [ph] He peace wife, our know advisor

that, for our and spend transactions, all financial I’ll the immediate on then just call year. our on strategic to to and be our and going mainly minutes what steps few XXXX, the LODE highlights. for valuation like over plan our brief focus I’d first next next it of this means

For the Total XXXX, last and of months compared representing total were costs every almost savings ended for XX, one $X.X million the expenses reductions year, in compared for as of $X.X to from a the period quarter, just almost date, on million compared period, X a in ended X category. costs X comparable the quarter, to for XX% million months XX% September and expense comparable coming savings for period. were months the comparable expenses to to $X.X $X.X XXXX million the quarter

in continuation collaboration subsidizing Tono, of the XXXX impact critical reflects where can friend. where be area our savings to from streamlining. The us of XXXX, into substantial our the the who from significant of platform. the with We all amount obviously really here to dramatically hard is for This work witness a trend from remains with restructuring internal the XX XX majority more change trend reimbursements this permitted a time, is attributed the the really Tonogold,

and a full of X expenses to year year-over-year amortization, a effective became XXXX planned base represents this is also that’s when XXXX. year. XX% increase company’s only them it that will XXXX operating XXXX approximately number the of excludes savings just savings but it at These for many as June million, $X looking for The year-over-year, forward when are depreciation

annualized tune million in this we when of subsidy X started And of as from total and expect I is of benefit the the of XXXX. that Tono of XXXX realizing we rate subsidy full that $X.X June to continue higher and mentioned, an receiving to

$X at depreciation million, year result operating little under and expenses planned amortization. about million, net again, should in next excluding for our a That $X.X

feel this income positioned non-recurring agreement. net from now stronger overall, place, also the with prior a team, fully We I an ourselves by did looking earning extremely million even But technical income, driven forward. $X.X a we excited fully mining platform like that functioning where record recognizing leadership efficient with for about functioning in quarter well we’re

our we’ve debenture financially, today. continued debt, Continuing also down less million paying than down to bringing $X.X

cash planned, not transactions sell $X a any to We have we’re more this little or need sales most expect immediate the quarter. just as forward looking and When under two we in million would on closing to those to stock. hand go

asset put detail, non-mining this discuss Let’s then financially more and sales, they the year the a little Silver where at next. of in the us Tono Springs and first transaction end

will we properties. in Tono, we plan few weeks, million the specifically, to cash in plus already million date of receive received meaning next in on to for For Lucerne closing addition cash the $X.X XX.X% the $X.XX in

our get Tono than reduce debt closer Lucerne are on the ever immediately to less. closer frankly, starting pretty exploration on down and expectations drilling that with we’re team, and for will next year. transaction. have early their we to with diligently finalizing This million working have been now advisors, drill with And And the about and before working $X.X programs programs excited we our are about and they for their

mineral been to context Lucerne exceptional. leases around all have our of mineral the for really and We planning north and have them claims explore geologic that in signed develop

that pays in of Additionally, that us year, And rate per in another $X.X reimbursing about the treasury. a annum. at continuous in is million million next cash of the first X I today deposited million to received translates as monthly $X we’ve also us said, our worth transaction and stock months $X

think market collaborations can Tonogold’s Comstock our the shows continued and doesn’t terms we our of agree the clap that rewarded to revised be progress near-term is I well reflect for deal, payments and will any and But our this. all and commitment and patience. that know that I

processing us we based can we where creating mining from and have discuss technologies non-mining year, metal precious the that sales. relationships on that focusing related or positions cash the precious value competencies, implement. approved ventures, company’s strategy, now specific me meaningful are the generating economically Let asset this specific Earlier metals and enhancing Board metal

this We’ve really of we The year for Inc., Fund by focus Sierra Enterprises quite the ventures. on opportunity qualified did this qualified to Springs Sierra formation its been on long bringing facilitating time, this advance a fund, business. quarter, but got Opportunity company Springs this these our transactions a working strategy zone named and Inc.,

that over properties million agreement agreed $XX XXX downtown with year. associated close rights XX of acquire and has Enterprises airport, non-mining the the acres assets Silver to very represents Springs cash alongside formally in the center acres an Springs Silver Sierra water in the Springs to the now in for this with those Comstock

of water including that the The and The properties already of fund capital of received lands, its been deposits all Springs, our centrally-located almost can placed adjacent projects, rights, is facilities consolidating in the secured approved ideally these see the the property gone swarmed. a initial over all projects, capital. airport, beyond commitments the past we The regional and acquisition nucleus new also country. weeks. the two areas getting dozen and on has has independent The growing and many development few and well has from fund located Silver fastest has one fund fund

properties. which that with of after entire and exploring and all going sold we cash still sold the directly we resource Also, this almost northern mine, non-mining from on we’ve the infrastructure, the targets, million of represented hand southern Lyon American positions Springs hold intact with of royalties Tono, on, Spring by these southern sold the County including into with properties, we the too the will of territories to assets tip own have still north our the of all debt miles nearly mineralized consummated X and Tono our $X will of XXXX. all Silver land, non-mining but Lucerne patent, of the Once our us transaction free, tip all we of we daily Valley closed targets Flat district facilities, be Dayton trend developing mineral

integrated option remain all Flat. under additional cost royalties that leaching, permitted and lease fully crushing, this subsidizes lands ownership, properties of operations waste potential a and and We revenues processing processing our from lease and private revenue, a future with plus American

have first a rectified and and includes we projection truth. the sell in planned in half sure, get Valley. Spring Lucerne, for million the at plus development that in perception money not And mind. left from closed, our has other somehow XXXX, be of with $X been also could we’ll number when very million the these from not $XX we actually and payments sale year am in the $X us in year cash I be drilling transactions some In of everybody’s company of our in further the there’s next of cash due of the investing non-mining a fixed nothing Ranch million mainly Dayton that the we’ll end the once addition assets and there that about

really up growth. that’s been positions what more And So then we’ve strategic it do. for to us setting

And mercury so discussion of me let with sort about initiative. ended the

processes industries reclaim, systems landscape, Mercury mercury are mechanical, X we oxidation from remediation development from As treat that launched to the you hydro, Clean know, the venture tailings, affluence. set industrial and with ago of Up remediate from from most months mercury and electro-chemical our proprietary with of mine exceptionally

for contaminants patents the are including the and and the the for the centrifuges reactor recovering including the and X metals. We spirals, applying solution mercury organic removing

already American received a Flat testing at this end-up with and system, per tons to X it’s be new arrive has for proceeding in XX And starting sampling, at facility about to sampling year begin drill MCU of equipment Comstock, starting with to per the up some just in secured approval and about hour we’ll the remediation We, platform and location. Comstock pilot operations collaboration ramping this for commence provides will week. tons hour. the with MCU’s

will materials facility to be to processing will will we and locations drilling with new start identifying this sampling the we new bringing Flat amazingly, year. So American be in we and be and up

this looks project. maybe in is discussions. engaged I We’ve it really mind getting in least, told my say will so can’t in I’ve serious international tuned at an And but stay that we twice it’s more we’re they for anything and sort me, it, and more one. promising about of approached also on it direct and mentioned it been now passing, amazing, is

The completing substantial part, Coming is has and closing. Comstock zone time And on to of X.X% of because for enterprise shifted an clear review the and that valuation. back board, in majority now my multi-billion my now JC a the most the because understanding to sort is our our established of Tono has planned importantly, time. going to a from new retain path in large and this the opportunity part, I’ve majority fund, in the ownership

of period time, almost And will in course. believe short-term. looking so XX% net to be that of But we going exceptionally that’s of million we’re longer $XX that proceeds the something over valuable this in have of addition we’re again a

include don’t opportunity are the adjacent also Industrial extent These zones know, people the Center. Reno Tahoe due to and

is tract. continues County it down right to there Springs of the It construction represents and a now nation. the So announcing Springs. is qualifies, closure ripping migrate a of Silver expanding X-census out combined multiple qualifies, Storey vehicles areas with to Fernley in fleet industrial literally developments one largest everything Google’s most Silver industrially closure mountain. and and

on we’re monetizing of lap final these So opportunities. the

XX annual real remarkable growth. interest we to meeting ownership forward going that’s are immediate And in just looking November investment to a we’re the and the and We’re cleaning XXXX what funded on for for platform X really showcase weeks. showcasing fund the in at our

a summarize assets bit of hopefully, year. $XX Lucerne specific sitting number me of quarter very, Number let But The most Number the stock, at X, this Lucerne. facets, is has monetizing debt, the we funded we meeting. evaluation of million $X cash $X X, million broken between we the million are multiple new be are down with million, assumption the high immediate little are very of one So eliminating monetizing position. level the slight $X cash, and in million the $XX million value liabilities. more with $XX non-mining cash, X,

for reimbursed the second immediate of the is, platform. one expenses The getting most we’re

we future, million value $X X.X% the to million. $XX could In that have royalty be

based ounces And We have around Valley, that development none could on that have $X,XXX that comes X.X, based on but being maybe a XX. we’ve resource $XX gold on trend. plus, American times size already down based looking Flat XX,XXX shell the X But it’s drill include itself that and economic got a mine dollars all number Highway built at runway what value long option, then the X, obviously mineral looks those about the at like. million, the what mineralized of that of gold, Dayton gold price going higher that would and we’re beyond resource the out way an plan rise, be where of really million in to Spring depending on which $XX develop about we to ultimately that the know that of and

and us. to Spring continuation the of development Dayton experienced Tono. we northern then targets, And just So the developing Valley targets through those exciting drilling is and resource

any value, with those continue we to see become of today. drilling seeing increase. our But then expect those published better value as resources not We’re the company certainly better obviously, those better in then results known, communicated, as to follow details

technology. market a a addressing is whole MCU with global disruptive different animal, it’s

notion looking each in We’re hundreds millions that’s project. our of of but quite frankly valuation,

that. efficacy from work have doing But it. solicited to So that – as out, worked obviously, already system that before we’re this and being about are has we’re for we we and we drive a excited XX% XX%, to prove trying

project doesn’t any each merit. we there own But like So prove move there stand seem as of and limit on its potential will forward. this it out is

the million. Sierra that’s Springs, terminal of in a X.X% $X is excess billion, of $XXX value

while a growth of we in to starting, nice what we had the to getting from monetization. like look we part just got here continue So a benefit the immediate foundation benefit in

are understand periods with, activities development of all based it. But that for these expert and we frankly, on intimate all are do engaged time, We they’re in extended opportunities.

detail. the much But more where the that we’re more only start the closing remain So sales better and closing and point property priority. vocal, can know market to in first the and being finally we to specifically we explain Tono much

all we XX these positioned really November then, and to look and, course, throughout Until other we on forward things XXXX. showcasing do of them

let me to Samantha, So, let And there. turn stop questions-and-answers. please us

will private [James [Operator Dell] Our first question [ph], you. come Instructions] Thank from investor.

Jim. Hey,

Thanks. you How doing? are

Good good, doing hear sir. voice. to I’m your

several listen, questions here. Alrighty. Hey,

– this important? why was was deal the it necessary? With Leviston Why

just to So while sales liquidity, our the done. maintaining foundational bridge answer to that, asset Jim, these we is getting

I good to path that really think to patience out transaction. know clear to see to closing coming the that the out had have have we is and fruition, been people maximum we’re closing exceptional transaction, positioned those what’s value. clear things a easy. Springs neither Lucerne get Silver the We path But

either interest by we continue we’re a region intimate initial in royalty maintain believe get to cases, and We both to or to by ownership value that But have the after liquidity. in monetization area our with.

the platform get maintain to to have We there.

the extent the transactions, extent to to end. to there extend a So the is liquidity time that that to needed is we to time there get the the and fund transactions done, have needed businesses the to

judgment the simple. It’s hopefully that not through it’s for it we not mind, It’s literally foundational us. and – even And in it. not It’s always work we’ve It’s a call. end my of discretionary. done just

that whatnot? couldn’t to Well, of like on provide just was note or reason there any credit, you go line a why go a item out

in incur any permitted we’re not Yeah, indebtedness we’re place. to with permitted – not the debenture

So…

All right.

joy don’t having stock And, this to so and with certainly don’t to we level. can full is going any the have But get the of rid debt we – our – forward we have from move nobody we just funded, get plans. at frankly,

Okay.

the outstanding now, shares something it XXX with is million Now, or what? like right or

the No, did It we million. million it the Leviston quarter. deal. at XXX was the of end And then was $XXX

a ensures line. these have these to ability the liquidity, our clear to we and path all We my on that closing. out to them are really ensures It transactions bring focus also sure just get finish things ensures to stability,

Okay.

of reverse I from dilution split So mine. of shares. been is yours. now real about Are million, going obviously, we like million concern just long-time gone XXX to last end like We’ve to like a the from XX it’s shareholder – have a of stop?

get we I’m we answer back. we so million now, $X that valuation some is very to had the will if levels. these cash, if got Yeah, got see million saying some even or cash we’re of of $X that $XX of or we what or open million discussion And million with ridiculous about, then that we’ve $XX

of want working get am things I clock myself, I to cannot prouder, the and like am our these I to – team just don’t around ahead be get So done.

progress, If But we the case. not there would if it – if be were horrible. that’s no stuck there was mud, the in

it great And behind with know very show up forward it’s moving We’re progress I doesn’t scenes. yet, the but close.

Okay. What wasn’t Why about some here? XX-Q compliance a filed?

is dotting Ts. the drafted, XX-Q the Is, crossing

It’s Deloitte Touche good They’re the end We had at at & have highest it. any probably a to at review We of and very quarter. go scrutiny issues. thorough review. through never every

the couple to weeks forward week, filing of deadline. look we of later that a this ahead hopefully, So

e-mail Okay. which an says One this think from got about last yesterday, meeting. question, you, I I

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We asking I to our came about responded back that everyone to me everything it. side. have fixed on

to trying We’re to bigger everybody. out get a broadcast

Just delete going fine it, should ignore it forward. be and everything

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keep to XX And secure. now horrible. just fixed just we’re responded more – I and and more yesterday. all and it’s think people getting hacking These all sophisticated. more it’s phishing But schemes and I like

a We solid third-party have provider.

came as it So the up, we everything. down, as changed all it locked soon fixed passwords,

the to communication get everybody out to it. ignore trying just to We’re

it for you bringing thank up. So

called was And Lode. came They a that year earlier themselves there this thing out. silver-backed Bitcoin

yeah. Yeah,

anything done Have you that? guys about

So I about an it. enquiry made

haven’t or with action anything any of kind associated taken We it.

enquiry. our hear we We anything did from haven’t back – not

that make note up to Jim. again, with a I’ll So back follow

the they But… being about were them like I told enquired it’s I guys because deceitful – it Okay, indignitively. and

Yeah.

some are like, a okay, funky of guys of for sort stealing name It’s your purpose these here. sort

don’t I So know.

thing forward Tono are last deal we future of So with area? Occidental is, on any the kind going with Target, northern a

We did.

exceptional that Lucerne – the central has all in been of opinion, time of the so is Tono been the infrastructure. has part the our one of one on work very kind really So, part with tremendous productive of Comstock it’s amount But developments it. the done. the Lucerne; they’ve spending It’s – very, of

think the Lode. southern would main of it’s Some the part

it continues Dayton, Valley. learning, Spring thought through further obviously than We’re originally much

they to long long, royalties, had properties But the that geologic properties, creep cetera. north mineral we’d the them lease north. started willing Lucerne to to if the into be forward assessment on agreed that ago, the We et close with

extrapolation, As data they And do accelerate the what signing saw. leases. mineral continue their wanted to they’re they seeing we of to those

put us. And We specific some feasibility, drilling which towards very specific put so, objectives, milestones great in of there. some for we commitments both very economic is

very, was Everybody it. executed those with and separately. And and already very we’ve gone ahead happy leases pleased

a So prompted is we northern economic most full meaningful get to a requirement general acceleration an fee. the is positive, it very commitments. drill activity targets. meaningful achieve what thing of ultimately on that prompted, and But overall, is technical, feasibility. And in those is There and

while them, I speak coming Lucerne program the of but don’t exploration to on as together, technical closing, an year. been want first the north. and next way there quarter have additional the involved, advisors, could soon with drilling and with their our looking as for technical the team, up people the technical is So and is be program there And to team core expansive their their team on engaged including and

a to drilling the north of forward. moving funded me, in and It’s Lucerne where be Spring changes be pretty could dynamic It the be the be drilling for the entire exciting. situation and they could a could in district. we so, And way, Valley entire Dayton

up I enough Okay. so – taken listen, thank you… And think I’ve

Bye-bye. it. Appreciate Jim. Thanks,

Thank you.

[Harvey Monarka Investor] Our with next from will come [ph]. question

Harvey. Hey,

Good morning, Corrado.

you. morning Good to

little talk X the bit of stock, you Tonogold’s is Can value more what million that at? a about

let very just specifically, loud second. think one for So, me prior to out –

sheet, a of valuation which the outside at, You $X.XX $X.XX on stock the the was got And should balance independent million. third-party $X.XX third-party, I that million, is believe, X.XX appear – that firm million valued we XX. face of had $X.XX million September by number about at

was the that stock the value above had received in that the face receive $X Since almost XX valued we have at by and So then… certificates million we of September treasury.

what? a that Yeah, value? it what $X.XX share or Was share was

So sorry. a different question,

a sorry. it’s good yeah, So, question, so

private on then stock would So placements, lower most to it the placements, their the underlying or share has mark offering the based the recent would of an comparable did. any One stock they preferred share that price is be lower that most that which be versus possibilities. $X.XX three conversion of public their private a recent current versus

would protect share on recent weight the your with where trifecta But lowest. the question, of we people the a tried put that to $X.XX options, So and they’re current take in we the most transaction the answering theirselves valuation at. price

some number. hybrid it’s So of that

around $X.XX, $X.XX – as Let’s say, maybe it’s $X.XX an probably assumption.

Okay.

they buy Now, our stock? can

there know I want honestly standstill But the say that a to I with that. on don’t agreement. is latest

have we and confidentiality counsel. have We

to So a yes, if get I and to I see is but check you, say know… to there that want back true don’t I’ll have to prohibition.

seem They to – it stock the would on that just their the should be they positions. mining values now our true seem based and that me me right to

right? very we although mine and are good and – and this are they is good in not still aware investors of, very million meant raising Yeah, to development. serious, from that funds this They be us substantively drilling owe $X.X for very is cash

anybody transaction. share have help can So stock. disparagement price no our this closing of help they by most transaction. I our the I They welcome us But and can certainly the it. this closing most, applaud buying by

So…

the did are – Okay. that have missed may Daney we presentation; Ranch? I the on where in say you

year next first $XX sort that of non-mining in Silver occur Springs this November, there embedded in level the The a Tono here of talked – assumptions ending and of occur Ranch and high closes $X between the year million the then at in fiscal the in in sales year. is year cash. asset of this would cash, at $X half next So between and million million I ending

and on Silver offer the Ranch, on the have an properties. we offers Springs’ don’t we agreements have So

do get the of to How $XXX valuation? Okay. million we

So…

you by of said we years couple A end ago, that, would be a $X the XXXX. of share

walk I with of bit from and Yeah. those up we Dayton little talking the we the are, monetizing to expand monetizing from a the Valley, Spring $XXX was Lucerne, that where assets, here add million you then through if the end, accrued if at and I the from where get an value non-mining about Dayton. you about overview you

get can and way and we’re on $XXX You fund to growing in territory. investing it mercury the million, on meaningful and growing Spring grows then now a the participating as expands focused business, Valley Dayton the value of the and

is not sales, And going the our that Lucerne left online that and is the closing say be I put sell out so we the that’s more from of meeting. we was fundamentally But the nothing we got further the number, there much meeting trying how if Tono, one will assets, then build-up up. perception predicated, of it’s presentations that to I’m truth. at somehow to build non-mining company And after that asset earlier the and closing annual that could non-mining be things, the to we sell from we specific

on mile for we’ve commercialize resources, the active XX-square and/or top businesses new either then that plans of component to it. got position, towards mining permitted now to processing. platform future we moving have in district these are using land of be developing We And every

want people once at a I right. hundreds these to for way, sheet, these sales. kind moving non-mining and talking the transactions millions. we’re we’re all everyone, non-dilutive future growth loud our X give desperately can it debt, start fix waiting So that fall the the because to these going but transport clear heard be of close. on don’t we close of that when spending on these X% ears, to of these get so close just we eliminate transactions XX% to is want the and funding, us table, the transaction, end, to We’ve so They Tono then behind transactions, we set so time it’s close the just about We to to deaf are or in us sales plan. ahead are myself, of balance the that if from

these which not moving to X somehow, transactions, transactions. been about, the distraction the to of I’m that, very fast other materially furious we’ve are We these of happy to distraction opportunities, and do on certainly but able closing closing these not

listening to… know, I get record, fairly want people to much we less. a like sound But I So I X broken until these closed, aren’t but

that the position that end position by approaching Your we will will next that valuation? – year, your is we is of $X be

My that the to have on enough timeframe projects we values. put of in kind about years, to we’re talking drive typically, not position it, those X is believe… did right I a get I X but to hopper it,

Sorry. A that say you number. did ago, years couple of

XXXX, of You ago. just years say a by the end of couple

Yeah. Yeah.

But I get that like be And to in position move this XXXX. that’s table held would to that. ready So accountable taken should I to moving that now are on and believe more right. for forward. It’s close to are us more the longer, the right, get things thing forward transactions mature, these

it will delineate will that the try don’t that others more pace I know the – and to specifically. happen, of it pace I could know So I’ll happen, that much some

typically for meaningful. but plan roll they’re X Our is years,

are So They what driving. of assets, real that’s of are hundreds they technologies, real. we’re potential are dollars They real millions real value. resources, transaction, of real with so

took My you split have you explain why CEO bit, can and to new President? a little with position, last a somebody as question, – you the a we always

Yeah.

expand Flat permit that the reengaged is requires of much coordination. getting American much Spring facility, the there expansion part international it to that be a permits an going this and want targets do and active acquiring business, permit. motion additional strong mercury is Tono still with more so will develop maintenance Valley a require that partnership more with and is require that to northern that legitimately requires we there. desperately the it We just was business Lucerne And recognizing own active So Lucerne, would the but business. Dayton

the that I putting they’re mean, are activities are a company. just you aside the so significant day to public And day fact consuming,

So that was number X.

properties a interest the and all county going in have forward. and we Number positioned operations opportunity, the the exact that in, the will in we’re fund meaningful same which are X,

really we more needed and activities so, the needed activities more we’re developing. new as And capacity, management, day felt the day that ground on to both for the that we we forging coming are as well that

So add not reorganization. compliance lot that We net We that business were the we eliminated positions in oriented, did didn’t of administrative, value. it certain were people. a

away met technologies We development business JC for and in activities, then by And metal in in American of waters, a and there then segment, leach were western was industrial industrial background. his routine market our Flat water Hydrus the at outsourced reporting. related financial part He actually view. commercialize of pads late blown our attack industrial just for much started him to how the the the States. polluted and analytical water affluence that I analyzing accounting starting piloting was all We metal some it. they heavy Hydrus were United when has purification to we

doesn’t the and hit And strongly that direction look we’re is and feel I and peak proportion biblical clean don’t we we materials. that yesteryear. going in, of are reprocess interested to The I need just still seem contaminated in technological the that gold. I majors feel, he that exactly said, stuck feel think that that. industry this breakthroughs tailings the we waters and intermediate in

lot seeing you’re seeing you’re a So by synergies of operational the majors, rationalization. of consolidation

view the that didn’t do is that And why I hell they sooner. guess, my

innovation. seeing not You’re

X for but over They’re that’s they million a Newmont, merger, big they sure. rate remarkable. few million depleting ounces from in a – In ounces to X.X growth Barrick, course You’re not of this a do remarkable seeing in resource, years. of go

industry that’s see the is thing gold by ton contaminated in for secondary processed every of it We And countries, opportunity a first-world in Production becoming we far mercury industry, decline way. see virgin in be we scarcer. and in so with for markets. the material reprocessing, think scarcer. and finite or this become creating is an third-world as has creating opportunity the So great it’s it’s for countries

is data. that’s of something mean, variables, that all constant things the grade, strip been attacking the of deal grade, processed is expensive there beauty the mining mean, all variation that it’s the are to the with. those already metallurgy, of that, empirical ratios all metallurgy, And monstrous known, one then I I of it’s variation, is in and challenges most of biggest course,

of any it and process. have grade the you the and you don’t reactivity with the exactly and So attack ratios, different metallurgy the the strip material, in

And so where we’re that’s heading.

share, time, we were split. a $X.XX Last at again? Okay. reverse a we we at had point that Are

get with but Exchange cooperating in and we’re over for by Stock $X.XX back We’ve York us. of on nothing to of end years, the they’ve incredible launch this So with worked New been year. terms the

we complaint, will delisted. remain be We not will

frankly But our to and conversations we that is is really valuable shareholders, these transactions, something feel it’s to because protected always a we have shareholders. our that finally communications solve it’s keep, It’s the listing consummating covet. it. Our if to we that possibility our

but So we’re it’s to be seen, to have happen. working not it hard,

Thank Okay. you much, very Corrado.

Thanks, Harvey. Thank you.

Thank you.

[Carl question next Frangson] will [ph], come private investor. from Our

Carl. Hi,

X That’s I to to expressed coincidentally extensively. not XX is back or I that, quite XX% amplify it’s $X.XX we’ve just Hi, Corrado. dilution. price certainly than is shares But situation, in gentlemen on last when and we $X.XX XXX dilution And as coincidentally, went call, our prior believe on months. million now. to more million And the then, the from share Hi. to gone need. don’t want the

So back, it’s small we’re doubled June? it down stock a a in was XX%. that The And number. not has

to very and view It’s our not, end is that. strongly

Our view is close these deals. strongly very to

there, I don’t without view Our almost very Carl. I can’t dilution, of and I is or – to – strongly that growth discussion we’re sorry? kind think emphasize fund

sorry. I’m

Just directors debt, company to is side a that the hold our one a kind understand, our correct? in principal of is I of question.

Say I part. that again, missed that front

directors… One the of

That’s correct.

couldn’t If or future, help help. part on, what’s understand Why going could the believe in and they have the take so we can debt, to to cutout – supposed I are they our would something, board on why that’s solutions? directors they new all covenant. have The on you of renegotiate renegotiated. the

Yeah.

future of the the think the fastest eliminate – least – year growing I right. were first supporting solution, all, is in we cash of with and pay So think and solution, couple in immediate have whole been in us interest, Clark when hard the I debenture And and the instead okay. allowed expense think has debt, don’t years your the debt X, and so revenue I the first cash you add to board exceptional flow in don’t working holders to of

So it bridge of has these it through rid transactions, for solution the us, get been to a flexible is right.

So frustrated I has not are broken they’re that mean, but closed. close. people I’m like record, mattered is why the deal that’s And a sound the thing only really getting also that

the I’m I been needed flexibility, help share wouldn’t there support be can it’s the – So But is when or that idea price. and – I increasing only of debt. to certain our think I there. only

will it. being price, it, eliminating share getting just it and think get I affect our mode. to growth into So and funded I know, a let’s back

and roughly restricted the is lockup XX stock? it can quarterly Well at free turnaround ugly it’s at XX anybody shares at $X.XX, have that they Is at issued but all? to shares market situation? basically point call. Or since fingers on million Are $X.XX it can stock there mean, been they arbitrage buy sell the – and last any just I – million that? somebody the of

Yeah.

we counterparties below being the noble one. just tend So our when with But track X%. be a is shareholders, we above they counterparties attended list has X%, worked shareholders, with, at than hold that work there look and be we to they we and filed the the as more to as that tend

in looking and always here. growth, base see longest to from growth That and to a capital shareholders flipping we’re we’re the building arbitrage. not do we That’s is our to forward that suggest the not by with terms come So good. means

on is a cash is the balance ending the positive. this positive, sheet So is strong think, positive, strong I strong a a having deals closing

then to the the would have They we turning, as if even have have But getting to, people as I wanted I to if the right capacity. we’re expect cash to well to But you the I’m why valuations didn’t even even from because would then finite the moving that’s say it, and you’re them it don’t are get. They growth say that type probably And growth, right with right that we trying come in businesses miners producing direction. mode. are going still not think Harvey, in I depletion goal just of driving down interested. be

silver gold in the ground, the but gold Certainly, in also put and growing. value value we processing pouring high we put the The high amount ground, silver on and high value we of silver. in and the and put on gold

got is certainly to from we’ve coming channels deals royalties, laid got exciting, exciting coming people’s I coming processing, we’ve chain talk think, I it. foundation I to channels And don’t channels really from want now our from very get just we’ve I from got where I resources. we’ve anybody coming a mean, that’s on – the channels move resource, we’ve close So that own got the and right, getting which to. is about move But wants anymore, think something closing to on, don’t, but other

All right.

far was opportunity Journal, on as article billion to week about an talk slower it expected. goes, saying Street to they ago investing, a and raised start just Wall there XXX slow says on are investors. off it’s bit, there Just that as don’t were I than we’ve traction of It break that seek. that the billion fund said $XX.X tax date, opportunities to little And $X just a for with is set says, roughly basically switching gaining up in

going closing And at to you going where forward get Silver the get what million? wanted to would way Is the to? How forward, $XX have Springs, you do to you we it point, there? that this relate comes is actually

Yeah.

you So great that Thank question. question. for asking

almost first to came involved been So we’ve it’s the legislation been out, watch. fascinating since

me right. strong give Let this, very to you a insight

in in this really of lot right. conference with we times, we or saw first X fund the I sort It year see was last it aggregate, money, – X times – single first earlier big we and it because of The fact, year, amazing, aggregation. was a Reno, was chasing saw project what big a patrons’

to anyway. Portland, Oregon, build So I’m looking in the hotel

just Let it. me the on going on it. an build a fund drop development, me to on just let opportunity I was on put residential opportunities fund

Okay.

looked this at say, And it you all sort my I product word over like of what I mind of the marginal do some and a the funds like project superficially, take came amateur and and materials, to saw sort finish that you are of presentations some would of or line. trying marginal to was and these form, the get

they the investors the at looked or They weren’t models, it. They And are proposals. very interesting models. This that and They like at treated, the at acted any we which there so what certainly smart said is was, the investors happened was have I happy interesting. more about looked been cases forget not many money. returns looked the is

So lower that’s one end the segment of population. of the

serious What to we’re also big them, problem means zone. seeing institutions it’s together a the get they’re The is serious aligned putting with in projects trying best that problem, project. is not and the

are lot by tough of a the places. Now definition, zones

the have legislation odd tough wouldn’t say, to. income. XX,XXX doubt, say, And to. any to don’t College normally then they you is are going get They that’s why capital then and don’t think I you places, it’s and okay, college and the off have any have things. to there’s Okay. population you students XX,XXX attract are help where one well, going go can me you have it, it’s before that let you to thing Park, Maryland more Like people, and

So because the the a census-tract, guess, a is you amazing it’s poor popping up the a developments area around see some good and thing. that’s I all apartmental little zone, thing, in right. hard. But good it’s it’s a university,

and the Center, sitting through that of the adjacent to largest where the Silver Parkway vast the almost from it’s Springs intersection industrial case, at kind XX,XXX-acre you coming park XX, hearing railroad one world, all you’re park have our and you’re County, XX,XXX largest right, the And a is not another USA zone Industrial right Tahoe write-down Silver mean, be we Lyon in Springs would flaw. real And have which you remarkably. rural, a activities regard. and just in together, poor the latest way it’s names I in in corridor, on surprised proposed it’s the you another are XX because all goes is all are converging. a entrant structural in on XX,XXX the census-tract some fantastic, census-tract, of of XX that the in corridor, bottom you’re in by. So that XX it’s in Reno and because come Google Fernley the – it’s the And there’s acre Fernley – to expanding and people poor we’re a because have not

contrary, structurally it’s the this desperate investment. for On

not project. we entire is We an talking not projects. development; that, of those XX-acre is downtown talking are on the about X other aviation park. industrial have an XXX-acre Now top are absolutely X about project, we

also an airport. We have

the XXX,XXX square over plant, et X,XXX-acre also a option X,XXX And rights, water cetera. secured we foot have facility. of of manufacturing We acres rights, sewer feet

to others, unlike So projects these backlog trying projects, marginal. are funds a have of chase other you typically most where

the with the introduction X And our – people, interface know so and we we’re I investors, with We’ve got we’ve friendly in area. to on far, thousand. who And think, back interests. I a got very are the just familiar for X area,

much a can dedicate get possible. pushing as I this, think And of time to of we XX% we’ve done all and are seed just annual it’s returns a it it’s question so the capital, year. IRR how don’t So got

attractive right, all So I’m – in nutshell it to a just tax it’s in not for that’s Difficulty] diligent a talking the fully returns be would even modeled, exemption, scenario, a the and [Technical people foundation. about so so the us, any solid because

have the get you $XX is What to for to get though, actual to numbers that million? us

Yeah.

million is existing million commitments deals equity $XX our of just So and looking the with fund rate closed. $XX the gets

million. $XX Just

our the closed. get $XX will deals million So first

get to have to million don’t close? You $XX the

do you U.S. like where a $XX gains, equity are you not million traditional source a capital That’s rounded absolutely raise. by closing, And definition, it’s and up right.

gains theme. I expect self-dock, commit stock now like to the execute prefer better And where capital going but investment, You’re gains the realized, them. because come it, that’s investors, connecting and it be with looks actually they it’s a market, with to the we’ve people to it a in, the common is, realize all they investment had are

a real saying and roll we’re We’re liquidate equity into market their real not telling portfolio, people take estate estate, and top-ish projects. little to related it off a

So…

Okay.

compelling. very It’s compelling. very It’s

just per was going in crushing good mentioned, a per hour Yeah. believe hour? certainly Also I X to tons many tons mean, No, to from I you explanation. it MCU, how regard

yeah. XX, Right,

I And we one is, scalability problems to prove the commercially understand, of is. understand it but unproven technology works, the understand make it viable. is scalability? I Whatever that Does

that’s exactly right. Yes,

do for spirals is the what to to enhancements and that and trying say have the those me rates. has let much centrifuges produced better, the mercury at sort sort produced, these our per the that that trying systems, in bigger we’re what of But the placer ensure it they these – industry – we we’re of is hour are and I to XXX remediation also So alluvial the mean, all mining systems system scale. do plus mining can scale systems XXX, ton

target we’ll know not or XX solidly system. we’re want a XX XX need I it is if produce X question, to higher is just to XXX – way scalability. from to an hour, the all from to the to to the X ton plus, at that we at going know engineering those engineering we to it reason XXX ensure It’s to go So to go so think anything. per to a like not getting want tons to that do XXX to for question, from get meticulously hour see if up, – right? higher we feel yields, it’s an And everything right? So we technological I to don’t XX absolutely X we the is

exciting. very it’s So

And profitability then? the comes – play that into make will

you ton a per and system, these The profitability, with $XXX,XXX had maximum hour gold, mercury a very the be price million XXX to if disposal, cost could $X,XXX grades things for $X of producing low month.

is a this make lot investment than at of engines capital So the for the we’re million. current unit And $X looking less money.

month mean, or larger could could something a is talking million. the I deployed. $X.X soon as that two as be about so, unit, in it you’re it return yeah, For

rock get and an fastest alluvial gold miner or asked the be the is if anybody underground the is, way would rather to easiest And you you miner, miner, open-pit question alluvium. a way hard

it. the really taking and from of and excited I’m I material gold love cleaning So mercury just idea surface about and getting It’s fantastic. it the silver.

scalability And hit we feel, you the profitability? for will

We going it We I help in an that. we’re ramp-up. as relates very yeah, mean, XXX in we scalability day a system. the meticulous dime, And the ton to understand yeah, throw a can Yes, every want to page doesn’t to hour plus ensure the XX to step can one. tons do be that us.

engineering and we higher get to the that’s – all we’re to It’s to have. engineering the going it’s The it to be level. already focused that that. So do technology on,

Okay. That sounds good.

Yeah.

seems get our anymore it seem it question, mentioned is to last of My one assets, biggest the Dayton. doesn’t like

tried I Yeah, mention to it.

XX-XXX for a bring the kind assets. part fold not our that’s back It seems that of It seems as maybe and of [indiscernible] like into as mentioned anymore. that

the Yeah, behind so let scenes. me tell you what’s happening

had then, Martin, Larry reworking So, been weekends; adding The runoff, all when interpretations our and meaning the updating Cowan, Wyatt they’re sheer buildups, the zone we exciting. Norred, our in of surface planes added – we’ve the very drilling mapping full-time; almost data, data. that the of junior the full water was and Chief exposed and all them, Mike the all time cross-sections, on the geologist, Engineer; and and level

cross-section publish some a enough level robust planning this is have to debated. pretty That’s report. here we is technical drill. standalone targets what’s more is But data debate incredible a into all reintegration internal model the happened more pointing with so, information out And to not and

And more exceptional in program drilling seeing fill data, very, amount we really So enhance an then them drilling it a they really in and of the to I and precise believe they gaps where – some love report and publish they’re the would that standalone. nothing structures would of targeted very team believe, trends. technical will than technical the really that really exceptional

But, approve the early they’re just finally publish it very That’s hasn’t Originally, real it’s need think looking we and go that signed that’s a I is come that’s could been – all in we very, drills can was where off and it. good. man, get drills have that done, keep by but you and done ahead to fast. off their before and I to asses funding scenario the it. it been But then think that in It yet Board. all going the discipline very working south. work really separate only But north we I have there to coming. the reviewed, why this approved XXXX and to get in is The very

growth So, of and in that about again, is I we think deals talk resource, once are these very done, no very there once cash question. treasury, precisely can credibly the

Thank And this of to to one, just just… some recommendation. that’s Okay, cash regard It’s sounds my good. use you. stock, repurchase last

Thank Thank much. you Carl. you, so

Thanks, Corrado.

Thanks.

Thank you.

will question last Akali] [ph], from Our [Syed come investor.

you? Hello, are Syed. How

Hey, to wanted thanks going see what’s plan just split. we call. stop just your for for stop Corrado, forward can I to How your reverse that?

I’m sorry.

missed Syed. part. I Just last your say that part again, last just

[indiscernible]. split to would what to I do see before wanted getting just reverse you stop

questions. asking for you thank Yeah, yeah. Yeah,

closing the it. and transactions, closing foundationally, transaction So these believe will I be more to do Tono other than it sufficient

A. that’s of So our sort plan

cash real We’re every these into week. very these future. And and very, very positive the the treasury near in of very, time day, transactions monitoring it every some I’m of getting some getting on

have And way. overviewed that much then, it in more a at the Meeting Annual really taking and out everything I today precise laying

front that’s I us. in what So think have we of right

with talking are experience very this. I the knowledgeable mean, the York good about had company. also Stock Exchange New they have actually We about

share except in price. the We regard for every are compliant

people the that’s have sufficient the except don’t capital if assets because we or you authorized And qualifying to for you sufficient that – important qualify just – have or if appreciate, are thing other structurally probably share don’t all requirements have price. if for you don’t

issue on or not our consummate foundationally solid is answer company So crosshairs. are that I need these effectively more technical. more a your just now means just communicate communicate, base. maybe to to more We to to transactions much that just, not much is everybody question the better, The – within guess

are we finish line, can crossing close the credibly start this. that to we communicating Now

more get to have we started interest. And

have more get to interest. We started

macro in Money may to and come in to to a the that obviously market especially that supporting way. all there is meaningful think there. back interest be turning. have gold contribute out ultimately But to valuation. the silver, and gold factor I And starting very with is I lifting think a

hope So I hope answered that’s the I I helpful. question.

If you are on…

you for Mr. you, Thank absolutely. Thank Corrado. your Yes, time.

you. sir. Samantha? Thank you, Thank

sir. the to would remarks. like I over Yes, you for call to turn closing

thank care, to everybody want attention, just and for patience. their their their I their questions

to you then forward to again. fourth Looking even of the in of forward here Meeting, next looking very And Annual the thank year. and amount significant quarter, communication course,

Thank and gentlemen. you, teleconference. This today’s ladies concludes

You may now disconnect.