Comstock (LODE) 2 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, welcome to Comstock's 2022 Third Quarter business results webcast.

Here is Comstock's Executive Chairman and CEO; Mr. Corrado De Gasperis.

Good afternoon, everyone, and welcome to Comstock Inc.'s third quarter update. I'll provide a business update, including the information from today's press release and our recently filed third quarter report on Form 10-Q.

a on today's our have find release, don't copy a website you copy press of you'll If at www.comstock.inc. of top section. the the in page at the Investor Newsroom

may the available Our and is on in forward-looking this to will www.sec.gov. constitute remind relating and on make Investor me Edgar page matters let any not that the also Form statements via under also historical that call website you XX-Q Please forward-looking filings SEC on facts on statements. are we statements

our Our based are our statements that current Zach recent subject filed and to all and that most subject to actual most reports the questions. call uncertainties are we previous and risks release, differ by complete cause statements and made remarks, uncertainties company will on we are in those the Once this expectations the in are same materially. other forward-looking These to press prepared the can't and same could accept SEC and risks all detailed during and results risks and direct identify.

with start developments want a that cover really update, financial position including today as of there's I me Let to first. valuable our a number corporate

million, while $XX Our recently assets market totaled over valuation is reported barely our $XXX million.

our estate what well region see was this great values. Ranch incredible $X creating happening and transactionally much, Denny more. focused amount that complete. real All validated recorded much terms gain also the now of very an last work, finally we of to in over quarter, hard We a and million closed of unlocking while on is operationally and to working existing value We of on in

assets the more on monetizing break and these progress made values. recently we have down unlocking me of Let other

developer. simultaneously has been of regarding on and the transaction the approved This the Springs transaction Sierra multiple not now million Springs directly derisking Board Springs transaction, is to property a local engaging our fully time large amount This is spending Fund, also and and a prominent substantial now large Opportunity investment are Sierra capitalizes also Fund, both investors and in in been now Sierra only with companies proceeds we results now over Comstock. for Sierra First, investors development. seeing that multiple I've a $XX engaged Opportunity Springs with but by

Although I'm confidence plans it's only has of these development recent increased closing QX, the slipping the doing developments. and of a disappointed to transactions little prerequisite scale that the in with and are so high because into and size closing.The investment was these is the that

transactions as $X We will will, almost monetized Sierra course, of times XX for million, return to us. alone in an equity Comstock's announce close. these representing be soon they Springs as investment

proceeds you assets in for the the to magnitude million. Additionally, to quickly can million When recorded in expectations cash of these sheet interest values start $XX cash more we've $X better are one likely of in low proceeds you in on these balance be of million could excess another ridiculously $XX our investments, that that to to appreciate strategic non-dilutive SK District. and received result investments. our monetizing of XXXX we evaluating unlock on value I'm opportunities specific consider significant that mineral year, equity another internal this last work assets we're our representing have to now increasing for and mining is mining most designed technical say to completed happy of these, our significant entire course, recognize our the that values. we're that of call all unlock. of starting Comstock our report. assets, our mentioned that The our I are on

mining we on and also the estimates also reputable are technical and SK Lucerne. going resource can Behre really share support resource report resources indicated publish new mineral is our standard. like reports agreed alone, The gold and These Development in of reports how of additional two firm. finalizing their month. over We and this gold category. and Behre Mine SK out the results company's has an ounces XXX,XXX inferred that combined Reno-based XXXX a Tonogold on represent Tono by now that's Dayton today's stringent Coincidentally, the gold Dolbear ounces call. for silver some under report the to Associates, XXX,XXX measured very came assets reflect That completed posted For that Dolbear the to XXXX more resource of the has will was quantify

resources just reporting potential of our nearly this are all well for And unlocking to value to ounces this can exciting million resources. resources beyond that two indicated in of these represents show of X indicated of the over with improve also value. were avenues in millions properties, multiple These two of in silver realizing many us. us is As the needless X ounces also also in categories These I have over resource prerequisite in This measured silver Dayton resource resource the million want million appreciate, gold and in properties. X.X you ounces all inferred shareholders. additional committed to reports clear ounces X.X for combined technical validate of million for X.X in our to we say, value and silver areas silver we now million be for the resource. and Lucerne over an the silver measured There's

methodical. We will be

next there over will to and few We full will these around working more assets, as strategic be much come we're be time this on months. clock with the the

cellulosic back and come technology. now metal recycling battery me fuels to Let our

investments include operating design, Our September activities representing million, both ended of representing $X.X pilots. most fabrication X date recent amounts engineering, R&D associated test commissioning months material our results with $X.X the to with These and million in $X.X XXXX. R&D included extraction X-month work, million our

well and quarter The for as a as we lithium as of to and and renewable system our extraction. the significant IP, precursor in in for determination fuels Comstock cellulosic processing also past fuels the pathways battery representing Biomass. a XXX representing crushing has three that mass That was recycling black XX metal over Woody recycling is separating facility. over lithium-ion extraction active and also extremely Biolium XX holds processes. That including This filings accomplishment. claims for from lithium received expansion big metal Our includes this permit. for portfolio recent drop was our main patent for cathode filings produce and producing and permit, recycling permit written battery material graphite represent our that whole this battery busy currently, operating extraction the and authorizes patents within claims new recovery

Northern currently our to also are represents that first The their of We of separating a our facility kind black if And problem pure enabling a We year. in will our County PCAM that next in permit and recycling recycling saw as from test expectations commercial that the facility processes in We of Green lingo conducive deployed investment in outside and receiving storage collaboration in advanced we ability facility system lastly, assets received be from activity million producing extremely its value $XX appraised battery extraction America. internally solving also materials We're Nevada. meaningful a by processes what active of here in XXX-acre lithium conventional immediately Remarkably, North air they black from just had labs produce first also our series and us cathode black nearly transfer broad half also mass and our submitted Lyon losses quality first for Wisconsin lithium we Nevada. industrial our crushing that technology maximizes precursor value well [ph] lithium with Lion, work to prime in uniquely two of we the samples. mass the a positioning a the property last process. total partner for very extracting deployed lithium. recently the increase with of with for high, in campus county-level efficient to believe Fundamentally, a pure a a mass our own and inefficiently extraction quarter, permit permit Comstock's the Northern manner not here over at in recovery. covering operate suffer in

the First, battery with permitted transfer here nearly expansion. a for and now XXX-acre facility storage great that and material footprint facility recycling

soon separating near-term major objectives the completing cellulosic fuels. permit the in deploying extremely processes, received. our of Our and half modified of include system, completing in validation those was the reviewing our upgrading commissioning lithium and extraction as as crushing Nevada air are permits our The design receiving of also enhanced for first and busy the sorry, quality - quarter systems the XXXX our

our of application clients for grand multiple Department in fuels in IP, engage those technology producing from the demonstrate renewable and also U.S. industries addition In unique to carbon-neutral one and for to a expanding sales our of we using engineering also new fuels to technology our woody we solutions. with equipment drop both Energy pulp of the renewable the deployment And and pathways filed biomass. paper

producing call, coalition technologies of these and and mentioned for fuels. application world-class last complementary accelerates I industry-leading our renewable pipeline As a on grant DOE the partners our that facilitated to adds

and that producers universities enzyme too, if the States, and industry, for enabling our byproducts the cellulosic most there the be coalition, Petroleum, largest technologies we including the pathway and biomass in have drop-in ethanol the the already fuel Marathon United since have of today publicized researchers, another clear, handful largest the a Inc.,[ph] for Again, producing in complementary of, We companies, woody in renewable catalyst fuels. Topso to just produce company to world exciting one not and Novozyme, profitably. breakthrough largest producer technology

life announced, into to the we're available, of carbon impact enhance ability feedstock in for dramatically have the biomass of an expand extraordinary ethanol corn revenue substantially and the The delivers their and corn because Using producers. biomass. less when will industry it's As recently compared much corn. solution it to better readily we ethanol woody engaged impacts cycle expensive, sugars with higher is it cellulosic already

value in are ready drop discussed these like the including carbon-neutral We higher like and by commercial yielding, now. bamboo pathways our pathway corn we're ethanol situated opportunities well in source. as that because based producers Commercializing fuels produce meantime, to ethanol, feedstock are one with all existing higher that to Biolium, exploit our and multiple segments the single corn fastest we grant DOE advantages. from the leveraging paper abundant go pulp and targeting additional that developing proposed represents \In technology they're these revenues

and for of carbon corn fuels. system has our neutral over collaborations advancing deep our solutions number face clear to developing prove pulp response from commercializing industry The objectives for we Commercializing which strategic That's non-core, near-term capabilities assets so are these for multiple feedstock. and partners in our a million major potential to solution into motivated, to in of they highly summary, Our and pathway and demonstrate our faster paper, have the speak. insufficient industry-leading finalize this they're been highly fuels with enable long-term as and pilot and progress and a engaged this of by the speak cash commercial all term also industry-leading is $XX We're constraint, the value as near upgrade sheet development our we complete agreements announce common operationalize clearly us growth commercial technology. in In and progress. monetizing that's Biolium we nicely. and position and far first with first Biolium balance non-mining partners These engaged out will -enhanced half and year. second as next our agreements

just very turn all us our protected stop I'm and of by going We technology to objectives. there, the strong well novel have for grow. and exceptionally The to you go is IP question. for have XXXX to let's one. Jack, Do positioned our ahead and first a foothold

assets in Yes, of Corrado know would step value for It's the our And what to mining. next our this mining what the And is properties? is? regards do. like mining projected person to our

you thank for the So question.

published sure. be next to nice we highlights, report. ounces. a in But this very very of miles the communication put in the be That numbers the but in very only month able will not out stake am resource. strike ounces two that that into a for day X.X case, south miles ground, case, So publication have potential you ground, of summarizes been those to to give validated the the nice to of the the be large of strike the report the continuous the now in XXXX resource in that for And will I thrilled resource, report step a puts a especially very will north. continuous the from SK And in and exploration Occidental context. certain very,

able to indirect we we're our evaluating the acquisition alternatives fail we've those unlock assets significant share So and recognize the assets, to other already be price. gotten inquiry those about in should of value to

the it If plus. leave is, X you figures I'll nine not value me it's what ask to figures, say

next lithium on is Our than is battery Why marketplace/ lithium in the battery recycling others better Linaco's question recycling. process

Yes. mass It's is crushing what correlating a efficient extraction and that we're great then question. black emphasize novel. developing I to in what of and we're to want the separating conditioning were lithium of developing what in

so And ability to that the discharged. previously haven't batteries we safely, efficiently crush have been

environment have mass We the without of lithium black of is all a remarkably all cross-contamination materials an and the burn sizes We contaminants and up the and dry in then any losing crush technology voids dry environment, that temperature us down. the gives to contact. pure off of The burning the ability at extremely we scalable material off a process batteries. any of

So we do do marketplace, not can say, such very efficient crushing separating. looking to amalgamation anyone give really crushing in we announced really, and We've we at. large-scale something that separating, of the we and see result small an scalability working could are let's is that this already all scale technology having do together compilation the and

to it a quite and with us. It's learning by could the IP, it's and this to the valuable believe partners we we're novel. be be So protected And bit industry industry going certain develop as think I us. I to valuable in very very system. It's

your what process pivoting that BiOlium with And with Okay. BiOlium, better? the is renewable why difference is and working to and fuels process then

produce much do that's use not that able less expensive, a take abundant. woody has much We're more do is We times today ethanol. we nature. ethanol score lower it's feedstock ethanol costs can of is efficiently is corn see to right, of using of at carbon biomass can hardwoods, X carbon there's it's differences. see the There's identical feedstock much the feedstock and means ethanol versus so is The half Cellulosic softwoods to fundamentally, anybody to ethanol. So for we much, greater, abundant, much three. product. corn not it the [indiscernible] that revenue X much efficiently less already to any expensive, process. feedstock big much, a talking We get two cellulosic much less, which better anybody cost and One, And molecularly cellulosic impact, much, same willow,

you currently, that's impact substitute at other the carbon scale the can Now core. natural profitable and better half This and burning for of wood higher carbon a gives be even used gas. even impact as

in having is into opposed XX%, marine XX% to fuels. breakthrough of blend to feedstock fuel you the with able that the like to as what impact then means and the sustainable of What goes we're Biolia ethanol that Drop-in fossil process other like aviation directly will fuels. get infrastructure into produce calling gas [ph] drop-in existing treat our of now existing that is being fuels the like carbon into half drop diesel, XXX% fuel However, which fuel, tank. the

breakthrough yield the wood but the the of exponentially the impacts same Biolium reduction. So carbon with from enhances ton

So from get out we the from and from lease. cost, a advantage. the have of we revenue, think we And decarbonization a most we have breakthrough think standpoint, the solution we the best yield

bio the from Biolium, the now drop the can And for is fuel so The produce credit are in and developing giving we're government biointermediaries. intermediary. the carbon selling we Biolia. It as a EPA breakthrough

is I'll the say intermediaries said and I to fuels, a notion record, to going the of produce result produce will partners fuels. the We're excited is just this one-on-one. to decarbonization we these can and to that a couple all us sell nonsense. can the who know of This But of for this Electrification you and monstrous great. drop-in exciting metals. So acceleration I've replace about recycling think in because is so we these liquid is them bio then electrification

think is fuels. The nonsense, this that cellulosic impact is enterprise the right? with have decarbonizing electrification huge decarbonizing that We that these is also will notion

Okay. Thank for Corrado. you

XXXX, finance are your for overall cash? question and sources uses what question. of next is Our an

Thank you much. very

to So investment fund $XX obviously, are selling the the to be of we're Springs assets million. Sears that we sale keen monetize the them, that opportunity and will

these think monetizing. I've the investment we're our respond. $X could to stock we're to million, about X respond, We capital. seriously sitting inquiries. of monetize assets our million on because million, our extent we primary To those back then on that on banking million, gotten much and look and believe I of another be million sitting our more that by sources if that doesn't up doesn't we're $XX have $XX those be cap, we $XX - amount share I'm total but million. million Those market and The alone To will, bombarded going significant, some to this given strongly $XX the extent we over offer $XX sums to will cash which would the it it we're price buy of $XX

I think respond. will it

our think will horrible on a has course, the bit not And in year, a next we're if of we'll hopefully, get force monetizations we're banking some lucky, this but we'll market. the year, achievements better I be these market, been which, and response. turn

line for few a next had the with topic. the What the questions have We this grant on is time DOE? application

Yes.

it's in understood or Like be November. we time the understood latest it from their imminent. So that to grant, I going what - terms early of frames, was think we was the

catalyst engagements very dozen. in easily is now, over and repeat resulted call, about to relevant two parties. So just partners - initially maybe was even dozen with it funding XX mean number to said grant industry it. three I a last us. the we expect to for That XX hear on I'll that day back what optimistic I any opportunity we're that to

We can market are here has term in the recognition now fully and developments and our that more. to that technology and our here do very some is engaged with is the near are immediately things do technology even that

will government about one of validation that seven to So only a the from being it that win nice grant. It's be are pathways developed.

The moving forward. other are six

And soon. hear hopefully, we'll so very

There different And Genmab? over also further satellite you an people with have the elaborate little upcoming a Okay. on you would Shifting to launch. to Corrado, milestones that Genmab. like is

owner close we're what's and there that about things. happy very the might won't that Thank to have you I for all. with speak And work get their We're be incredible the to said research question. about very of Look, think they're Look, what majority about or doing. we a very, it We Genmab, that any entail. Genmab, past a clarify not first but milestone. you few objectives and happening or in at specifics Genmab's, to probably of high development, I'm the it the would into details a asked fair level

few to band define So I the intelligent first their of they a first mean actually analysis do electrical days. in the Genmab's take we take a of do By And objective most I They certain classical world can the can specific computing or critical properties, that advanced do or programs, material. is conductivity can Genmab that What's from the a research like worth company validate that can simulation that this. that concept artificial is can the just or with can proof properties in on months algorithms, material gap of of it characteristics, intelligence, incredible you there development a that And a the Genmab's things upon upon of material an known today if planet. they a mean, is will, in through few of thermal months known artificially the materials. they're hardware. just days and do companies some months believe today. conventional can

the materials, ultimately, for the to As Quantum short. able enhance and Genmab materials, and generative company, new this capability create Hence, evolves, materials generate ultimately they'll be these name material new right? even of capabilities

heretofore doing and of will their right? As evaluates the this mechanical capability. dissemination other it artificial level it's material not these as So a things we're of types precision able at materials, and such atomic as done AI before. these enable this level. at discovery. the It's programs mineral their to evaluates intelligence And develop quantum ultimately that materials be

of don't they're hyper I that Well, some tangible soon. is and has one imagers plans guess So of But mine most in and regard in - Genmab asked spectral minerals on talked you come do? to minerals like it already able be space developments and to more to believe frontier what I and that disclosed They're arrays achieving they're our sites, that about of has from on enable is publicly these satellite hopefully, way, launching an it's there's Genmab pioneering. - So we prospecting specifically. haven't a going the powerful real And right? we absolutely the objectives. these already high-precision

receive on does various our it questions that today. several questions for Corrado, did our We of business. lines

what definitely all. developing, to Gasperis to we has you, our that communicating appreciate I way, everyone will come two scheduled for the manifesting. time. I achievements I for is you in months front team than of be I've The So Corrado those tap more Thank the will say everyone, on update. De in management be as say Thank want I your technology and are for is three or they seen next exciting right? this are absolutely we online. as The partners questions. The and thank opportunities an us. have engaging. soon really that