Comstock (LODE) 19 Mar 202019 Q4 Earnings call transcript

Good day and welcome to the Comstock Mining Year-End Update Conference Call. Today's conference is being recorded.

And at this time, I would like to turn the conference over to Mr. Corrado De Gasperis. Please go ahead, sir.

good and Jeff, you, morning, everyone. Thank De line. Corrado Gasperis, CEO the on Mining Comstock of It's also Zach I the And have line Relations of today on External as well. Spencer, our Director Comstock -- you you XXXX welcome And to the conference Mining's welcoming call. full-year

information summary from including on a progress our initiatives. strategic morning, in of provide press included I'll our our brief release this

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

the on the We reporting accounting documentations will All annual XX-K will and when report done filed Form are file audit it and is timely. our and complete. be processes

and I you could risks company release. on with brief other are forward-looking and questions also regarding summary expectations risks that statements [Technical Difficulty] reports during we can also matters our our a risks of all all the These detailed are by same uncertainties are most based made Please the this can't to call morning's provided filed in may subject are may in those make we uncertainties answer facts, any we to not historical of press constitute are this relating and remind financials, in that and statements statements. results me to cause to relevant forward-looking the current release. same materially. risks identify. that And subject previous These differ those press actual that and SEC let and and

Okay.

silver We intents with be on talking value the in from properties growing royalties value the XXXX, only And our for gold through revenues. growth. last Comstock's the gold [Technical partners. focus our we legally and our and precious in exposure depicted the and our shareholders silver, over our year, dedicated ourselves gold properties, So, few existing of mineral company resources our extreme press facilitate for to and and repositioning years and our last properties, driving natural to especially all and realigned and future we'll acceleration our our growth purposes, the most as of partners, of about again, Difficulty] through growth assets, in silver gold ground, to our metal-based

with partnered We Tonogold. twice

XX% lastly, in properties. November $XX of the XXX% that owned also partnered remediation And Fund we and some partnered helped of in existing Mercury platform Firstly, are commercializing plus different LLC our and for again Lucerne our selling to mercury last launched with Springs now We've leasing with Clean to Up that mineral Silver leverage we Springs permitted in million. and assets non-mining business our two Sierra Opportunity established locations. sell found

fund and XX is next expect full all to asset to in moving we ahead sales XX speed the on days. close The

much but all very For to at despite corona meaningful the down for slowed partners. up impacts We're we're positioned sure, this the good progress, In very equity some of turmoil. not picking while retaining of we've of growth, these fully interest close expecting all our ventures, recent and ownership all in us. have so

and again again again relating mineral against Dayton In claims. county and XXXX, us and changes Resource the the zone guess, CRA the lawsuit, repeated the we despite won for I also appeals to

this incredible which the County. and area the to an Archaeologists and on Resource During and pursue year. report complex, work the Silver Valley continuous Dayton Lyon expand towards resource an amount are updated both of are us standalone permitting later expanding Spring past that of doing the for and gold the publishing for -- in

us, a increased where financials, Improvement few improved the to our our XXXX, throughout financial turn folks, assets almost to we me significantly as not XX%. [indiscernible] of really XXXX. continuously by position quite Let throughout

the final pay-off debt next putting cross the in Our XX%, debt decreased over quarter. shares by

still in retaining non-refundable million expense of valued received year. cash. million while of XX% non-refundable reimbursements year-end on so, the received just million In at doing entity. Lucerne $X.X as full over Specifically, we in received we throughout at in $X.X And closed the control we We million. sale stock, mentioned, $X.X I $X

Tonogold year. grouping reports to in mineral commitments partnership, drilling three mineral also claim expected, the those sorry, the in million this ultimately published, million leases up claims I'm Occidental be with progressive We [Technical leased Lode required, in in other requires $XX with to through which second Difficulty] $X fiscal and a technical drill to

well exciting directly [Technical very We've and our with working been the that in with in launching technical second in the combined would that of commence towards also be with quarter, the that second planned researched Difficulty] we drilling Tono continuously, out, and regulators County the county quarter. Storey program been meeting teams very, drill very, our a has and with expect to Tonogold

site. sited We've spirals small Comstock multiple in -- [Technical with already just the the around sample we the started Comstock locations the quite equipment different The launched remediation LLC mercury last and than month, on both Philippines. technology global just which process Difficulty] mentioned, the test system feet sample also from meaningful partnered something arrived The As Mercury on clean both Clean put those in test mercury samples to spirals. and is year, equipment through through company Up a the is material with projects this Company, tall. full and has gold arrive starting growth

and our again our us sort being this opinion. in technological not. say circumstance would less, be we're shipped the resulting to the purposes -- in It's I to is certainly to It's quarter a just for been Comstock the assembled It's overall other in finally out on but California. for a dramatically less empathy been quite expectation have have additional all impact of than the there manufactured Difficulty] there. intended on last for and weeks, in April, of to second slowdowns been spectacle semi-paralyzed lot intents been few [Technical companies

small We team. full-time. working have a We're all

been which just around to and able do obstacles, working week to all remotely effectively. schedule far We effective trying certain now are so been this past we've

as Springs. $XXX,XXX received $XX And are escrowed closing and we've the in assets in quarter. next forward fund of second non-refundable sale in know, deposits those also we you non-mining debt lastly, two remaining quarter all We've extinguishing looking plus million escrow. in them of to And to the our all the Silver

we'll We as the Financially, costs. overall see XX% expenses at mentioned, all overall, me of month procedures finalizing has reduction been in be XX-K XX%. a Year-on-year, some some anticipate XXXX, audit were expect details. already as those towards the share this done. numbers I our on just operating primarily from the and filing is we let We're administrative on work publishing, but of least general to another this reduction we time, of that Much work administrative down in lower cost. XX% focus done

more of the significant evident that XXXX. most be been first to of Difficulty] results has next again, already in work completed quarter and year, [Technical already be will those

down development Our and were costs exploration XX%.

environmental that finished almost XXX%, of big costs the Our Lucerne of [Technical were part was down reclamation by efforts. Difficulty] driven really We but result a a our remarkable

real reduction Protection reclamation expense $XXX,XXX it Department but Environmental we're quite of of that. reflected savings that releasing proud real so our was line, almost of was liabilities, reduction and worth liability, net in of so

a dramatically million certainly believe by that. decreasing loss have costs, a first the with I'll in net about almost loss but these in net we time the not lowering XXXX, full-year transactions We'll because [Technical have Difficulty] for from $X to only income which going also talk that some second, actually being for resulting consummated. are this of of loss We our in resulted a that $X.X million year. for Overall, from just

can So shelter we're very happy happy the of about Difficulty] that. because [Technical losses. nature tax-free incomes We're also we about those

impressively, coupled that's asset the we equivalents partners, of our our liabilities, our grew in million. as XX% side includes in Overall, Tonogold. were reduced to cash debt have $X a $XX dramatic and in over tremendously $X the our think reduction our of total and strong most the the million. our XX% my total investment that including in almost I said growth mind, to the Cash year by investments over at with includes This I a end million. balance over in by being assets But almost just sheet,

net will net about million Our we the $XX million when you'll alone balance $XX assets sheet that almost transactions. in in at to year-end, these see now grow assets, consummate were just

show net our net [Technical value alone, assets our alone Difficulty]. assets a So

So, evident sold not more the and sheet. balance fact on that just more in becoming have -- that face XXXX we're the undervalued is the the importantly, we of fact any Most to-date. stock

happened. hasn't when happening XX-K, it file it's and that see You'll we the not

good. So that's

these I'm just of an to outlook. summarize points now all going with

back you I'll I summary So bullet Jeff that. questions to six [Technical after give Difficulty] do right for

sale of during So we XXXX, quarter the Silver number expect of one, Springs. to closing the second

of proceeds net remaining the in bring to from $X.X sales million. expect those We

program launch the relationship. never approximately $X debt, is expect all quarter. happens. the about in to two, We've [Technical second excited to extremely working never when extinguish our in drilling Tonogold in closer going it. Number of closer Difficulty]. We We're million been that the We've been

advancing we're Philippines. photos, commercializing about and in be something system system. goes similar the impressed display. we're there people excited quarter. the the The second videos, all be In that very be will going into commercializing be MCU work to will operating. There in It that will three, Comstock on the we're quarter, will Number be third will do very

Resource. planning profile and on net that excited about our [Technical drilling that. the on plan same property We our our can and been. resources operating development to be resources, assets our specific expenses remain very, $X.X we're publishing year. we're updated Difficulty] partners low The report operating looking to some the a to ever Dayton and at very this proud will fully tailored time. of four, to do be Number of that's proud We're technical the we equipment have that very later are timing circumstance with on year. owned planned We're depending five, and annual functional currently And Number million, this we're lowest expand real an XXX% that.

a at $X.XX just using I by the terms mentioned, for Number growth over with measure grow that's We the value stably in share, any the just in there from our undervalued but stop receivable us net journey. activities. just us the at, the asset we're plus puts look six, much basic plus as this transaction most my we train to of next Tono Springs significantly more opinion Silver

Jeff, So my briefer that's summary.

Look answering forward to there and to stop questions. any me questions. turn Let

[Operator from Thank you And [ph], first can sir. go question take private ahead, [James investor. we Instructions] Please who is Dell] a sir. much, our very

Jim. Good you hear Can morning, me?

you? Corrado, how are

I'm Jim. Good you, morning, sir? How fine. are

going Okay, anytime soon? you listen, are to replace hereon

I'm you sorry. repeat? Can

[Technical Difficulty] anytime soon?

Yes.

to strongly don't immediate as position. the a we really any plans team. We've replace have congregated So very

the to do plans ultimately, immediate is will that a I no we company think that. want it's is as role but there growing,

Okay.

be to second Difficulty] Your third what asset out, you -- report, [Technical quarter you to or it's quarter, get think? going put but coming, you tend said do it's

Jim? In of the terms Dayton,

Yes. Valley. Dayton Spring

Yes.

there's Mike amount chief So mean, a of of sort Martin, I none was amount amount work. never into of of negative a geologist, Mike primarily, tremendous been to Dayton. of put of all. it's reevaluation the surface tremendous [ph] Colin and technical aspect of every into incorporated and our amount mapping team and that the core exaggerate Norred it, work comprehensive [Technical that is tremendous have and Larry I a Difficulty]. that the a meant been almost of There's be surface at drilling can't

emphasize aware it appendix in say, sort there there out because of -- that technical is the Some even the that, people the report the a Comstock in buried let's report of Lucerne. was aren't

much next to the of update the so so things, Difficulty] much geological PEA, Preliminary estimate, of very, also very would most connectivity in resource of estimate, sort more Assessment. [Technical our start of, of call resulting program the and much that update it to of precise So, ability finding Economic resource information, and in contribute we're phase they stronger drilling data, put it's right, sort control, propose more to connectivity a more a so variables

it that people think face think So of will and asset report only next Difficulty] Spring Valley Dayton material portfolio. a the dollars I none mentioned asset reflection can them. the of not I in [Technical which our I standalone just net say Dayton asset have will be in the any unrecognized We lot of complex, the for of straight a with just Dayton reflection any the

unvalued our So, it's portfolio. an asset in

So think an will on that have people. impact standalone report tremendous I

a per of that. in have some average ton because higher have then, are of we permitting. But, grams shall of per than So, we And the previously maybe economic been X.XX grades and that for ounces dialog very talked developed very, path drilling ton, about. secondly, path preliminary a X.XX much the for K-shales over appreciation

on forward of permitting expensive move amount and regardless. be exploration permanent the going to are counting that a We inline development. We to currently an have allows

on they're we of need going to plan, going drilling initiated rest [indiscernible] consummation the the of will can transactions, then the first to for program. close. fund a And very finalization, are us of And a prepare drilling We which the be that sure of that ultimately encroach these them. us broader which will are -- permit, that catch the will which and allow also, of to up of to phase some the off

I of if that well, quarter as third think out, quarter the be work in some hopefully So in starting worked could we everything and geological to reporting do third well.

we these on just because we our close have to happened. schedule, transactions what I go likely current that's think that's if not but other first,

[Indiscernible]

missing? time little sorry. -- one little keep So slower? can you just a just I'm say more I that a

mine take I correct? basis plan, a that on it your

economic estimate preliminary a plan, are full the assessment that mine which a Yes. plan. pre-feasibility The think I resource of of preliminary steps feasibility ultimately, economic resource, assessment, this mine of

underground, you has to the activity, concepts economic bodies when plant surface be of economic to So, take buying you be or delineations a whatever -- have shape. you these start picture, preliminary of of concepts would have a or do to have

plan, start So, it's talking then in the economics the PA of us talking to correct? about exciting for mine you start context because about

Okay. about correct? talking We're mine, shallow dealing we're in surface the linear, more still

that's gold less and for feet is remarkable. factual. have which silver, done. structures surface, There's Larry's so all it. The tremendous is XXX work doing amount I near of amount There's a correlating deeper of Larry's to a just tremendous wait south and the and extending work that be to structures of from surface than each other extending

to yes, with point more answer there. the your So, come to is from

[Indiscernible]

Yes.

But ton, of I XXX say be per did seeing And we're targets were targeting internally multi-ounce as about ounce So I'm quoting amount ton. an right attracted bouncing are feet They've my -- both amount and tough gold amount and of [indiscernible]. gold just old a when an ounce on impressive on grades, will per positive. guys -- done of that an very, your that, and to most of historic the an what reassessment going and drill But concerns, The drilling work very with and we've now, was geological aside, obviously continuously of have some sort grades, half ton, quarters of been XXXX remain we feet of before question, $XXXX progress skeptical. seeing drill data, around consolidation that say of a while I targets a structures, to like some recent my historic activity work. I they of assessment and say answer most program. they're I'm current feet. with tremendous has But of a data data incredibly talking they've and based as aside seen done guys, range incredible is remarkable a a tremendous they've when drill There's XXXX. which new that tremendous tremendous obviously going amount that's and on plus per incredible analysis relating to you're developing XXX three good

I XX that we address of mean, had knowingly know material in they're know as tremendous the mean ton fundamental put the the right. We're we in ounce we and they calibrate put of per The an place, were That's and that of stuff out in taking grams investment exciting, and ton, needs Difficulty] there they from… which above [Technical there. go that had old were trend timers grades wasn't that When seeing smart ore that once capital. English, a just opportunity ton only attracting, drifts [Technical is grams And, grades it so Comstock I seriously. is if taken grades and were of per thesis like XX amount a they of the means Difficulty] that's exciting. I it's had and exploration what really per

technical finds. Difficulty] people who extremely to attention pay [Technical

say probably the development, not can't mean, That more to say safely assessing I reassessing, be mine of plus so [indiscernible] in like true. with bit percent that gotten the gold which plans prices, there's I that for much speak XX do they're if So or that want those like a current this really taken. taken you little [indiscernible] is to they're interest just that and know and programs. in I that it's I we've program backseat much their because involved, -- slowed collected has calories we of could that. a to be drilling that down reassessing they're would

right would top more going [Technical out pretty if are Difficulty] on. about excited now not think high to some not I the holes, if substantially, they're though, drill or that we're their it's immediate XX, on, all them working of So, is most And everything targets. priority, these them, list conversation XX attacking top be of of the that based grade you

they're occidental So, this they're corridor little a at [Technical whole think looking at Lucerne I bit Difficulty] looking load. more --

just all private attention. Difficulty] the able XX people have [Technical claims County we to the goes way the Story tail think of We aware aren't into wanted [indiscernible] the that right congregated, right east -- into few some grouping, a I border. people but congregate one that and Line to claims most county, were right down there's the-- patented property to unpatented all down lot occidental of a

And, nicely. it's that's about Difficulty] rather to holistically Virginia starting they're together it's think correlate it I intelligent. feels up Lucerne Occidental the being I to and City. stream to very more than [Technical -- coming So mean, talked

to mine you're I long going from. plans get your think where life that's

all the it's in has these think but opportunity, start all have I with whole royalties but see some extraction, those to to going we lost in the think some quarter, already Occidental properties pie, almost Like bigger. working to not enable doing but not of on them, second Lucerne way mining but properties, And is we of right? same near in the that's term all obviously, the it's working to Jim of that. going just anybody, have We're the work, we're just Lucerne, boat, every wait start results, now right so, that, the I pie not we're drilling to they're on and and those whole with where

going with Okay. a activity doing? they new Are produce you to are this resource import all that

Yes.

that's So a great question.

in So them this Occidental longer signed have year -- $X is we over million -- minimum to with hoping period have the million a that otherwise leases understanding a we've But commitments of and required, time. a certainly my immediately required spend drill year. they're a of over

point So a their we our of aren't intentions. know, leases the over minimums full feasibility. one really ability one be meaningful and at But, also three course but your progressive technical reports least Difficulty] the to period, required there's will to --[Technical

very progress and to promotion. for have and thing this one's We very, want we them, between reports, here mutual So no strong okay. it's us to technical

that three published us that And make of production. have get towards progress so ultimately, got being with we've over the control reports, technical to single lives to year, we every those leases

[Technical with we'll first in we're and connectivity the towards I Lucerne, all going partners, for which value. north. us, the you're and think we're time have to even the the by some is Difficulty] And driver on exciting owned though properties to [indiscernible] with to doing active it the way get, development get we'll me have, going to a lot south it's going in So

now to and get with him us partners. long it's our So, let's working a directly with been forward coming directly us back or moving here time either be

a last venture joint [Technical it's it's there. I'm One comment have to, going a a Do Difficulty] pretty question, stable? to concerned out pretty Okay. probably good culture about local partners, be

MCU… [indiscernible] to referring you Are

talking venture the in [indiscernible] We're about the Philippines? merger

yes. Oh,

no. So

mean their owner Difficulty] and longest lived MCU. before principal some when processing three largest or like one the been So of advising the of I we, the one three of -- MCU, them our say partners I largest operating, Paul our partner the claim mining [Technical at It's concerns. we've team it's well

together, one [Technical not our of also which cleaning Difficulty] priority. -- it's right, introduce in mining see tremendous, just from a position they artists district, areas [Technical in claims, in were mining being a going the Difficulty] of in so breakthrough the for the I all think, mountain, strongest district. the the the It's where clean community one clean providing They and but miners, supporters solution [Technical that mercury is It's river cleaning both the the which we're not mining contaminated to of just look breakthrough just their Difficulty] not to it's to And number and artistical processing action. really remarkable. eradicated the priority. is is up the the certainly just out our technology it's

provide, will don't continue still we in alternatives. people if we if any solution have the But then a can use of absence mercury to

have as And so, well. that solution we

partnering that's, of a as community second processing growth, a so third say shared provide, [indiscernible] let's local with partnering to facility our with, always And we've or either and viewed whole that opportunities scheme announced [Technical the to the the facility. that, and processing only or part the river. and us of But Difficulty] We clean right? focused That's up proliferate technology. of to cleaning on only all we're things, phase doing the grander

politically of partnership We're doing tremendous for in, for already, So, tremendous opportunities there Difficulty] global amount one financially, I've the [Technical one time a personally -- us wise of option I endless. we regulatorily, been am this the putting government, are first organizationally, right, twice opportunity. amount second legally, need

the on, Difficulty] being that It's there. in the we because that other of early very the things, but not it's over just laying care operation and we're foundation us, for taking all decisions we're are stages of So great most [Technical our get successful much based success

technological your Difficulty] transfer I ground stuff. be going comments the to of hope a most versus a is on [Technical boots

processing the we pole. boots we week the [Technical ground week, some U.S., underground, the Difficulty] be will you're to, non-U.S., different. have project single XX touch samples. on on like were don't the obviously, to before Every we in a want foot Obviously boots Yes. last referring

of want two We're Some I a on of first the starting something clean the really these ensure lease to solution will just us full spectrum hire that the very in to cases, all technology. we and it's above, have some to only up mean, government equipment that may protect prove focused to to everyone works. stay to possibilities. this

you Thank a of I Okay. Corrado. took time. lot else's everybody

take We ahead. from question can our Please next Investments. go [indiscernible]

Your ahead line sir, line your maybe open. go muted. is Please

This concludes today's question-and-answer closing remarks. any or session. At additional call to back this hand time, about the I'm sir, for to

Yes.

First that us. interest. for of for want three years. I their all, thank over feel thank point to is couple I to want at exciting or last everyone XXXX be going really to their for I here, the turning very patience we're everybody

flatten so all out, thing safe next interaction so with want follow work home, coronavirus, stay one up our and really we're caution. to think remote X, everybody this the And this wish and is, behind in work we and X, the weeks, the fundamental to families, damn any world to their let's we available X X, everyone for just most out just entail, many of minimize various curve simplest from directly the also us. whatever can There's remotely investors. get but get I your emphasize opinions take about this done I

So thank you all.

This and Ladies Thank call. today's gentlemen, you concludes participation. for you. thank your

You disconnect. now may