“We are pushing the boundaries of technology and sustainability, especially in metals, fuels, and artificial intelligence, by leveraging our technical bench, our diverse and growing technology portfolio, and our frontier research and development partner networks that are now delivering tangible solutions that impact industries, economies, and communities,” stated
Selected Segment Highlights for the First Quarter of 2024
Comstock Metals
- Secured all required operating permits and commenced production in
Silver Springs, Nevada ; - Secured revenue generating contracts and began receiving large quantities of end-of-life solar panels;
- Commissioned and successfully tested all stages of production, producing 100% salable materials;
- Collected cash payments on receivables for substantially all of the panels received to date;
- Identified and securing lease for industry scale production facility with up to 100,000 tons of annual production; and
- Prepared permits for first expanded industry scale storage site.
“Comstock Metals crossed the first finish line with a successful commissioning of our first, zero-landfill, solar panel recycling facility that is now producing three distinct, renewable products from end-of-life solar panels,” added De Gasperis. “Our unit economics are highly attractive with better-than-expected processing cycles. These achievements position our metals team for more rapid expansions, for both storage and production, with 2-3 more facilities now in planning for
- Commenced ongoing sample production of commercially available hydrodeoxygenated Bioleum Oil (“HBO”);
- Executed agreements for up to a
$3 million investment inSweden -basedRenFuel K2B AB (“RenFuel”); - Expanded research and development projects for even higher yields and lower costs of our biorefining solutions;
- Completed multiple, scaled techno-economic analysis for deploying customer solutions across the
Americas ; and - Proposed on and in advanced discussions with multiple operationally experienced, well-capitalized customers.
“Last year we validated industry-leading yields exceeding 100 gallons per dry tonne of wood on a gasoline gallon equivalent basis (“GGE”) and confirmed market-leading, extremely low carbon intensity (“CI”) score of 15 on our woody biomass fuel solutions,” said De Gasperis. “We are now engaged across the industry for both technology adoption and monetization, wherein our customers are doing diligence on varying scales of facility adoptions, economic assessments and investment into fuels.”
Our mining teams have advanced our monetization plans for the northern part of the district, primarily our
- Updated our internal
Dayton-Spring Valley economic assessment using current pricing assumptions; - Operationalized a first-of-its-kind satellite sensor platform through Quantum Generative Materials (“GenMat’s”) Hyperspectral Remote Sensing Imaging (“HRSI”) system, for optimizing future mineral exploration and discovery;
- Advanced Dayton’s mineral resource expansion plan together with GenMat’s geophysical teams; and
- Prepared, well-positioned and ready for the first full imaging scans of the Comstock historic district.
“Our economic assessment for the existing
Strategic Investments (Minority Investments by the Company)
- Realigned our ownership of GenMat to 32% with direct technology rights for biofuels and mineral discovery;
Green Li-ion Pte, Ltd. (“Green Li-ion”) launched its first production facility for renewable cathode materials; andSierra Springs Opportunity Fund Inc. (“SSOF”) executed a high-value LOI for a property purchase inSilver Springs .
“GenMat has rapidly built an exceptional team, a remarkable data infrastructure and platform, and achieved a series of critical technical milestones surrounding its physics-based AI, simulation, engineering, and satellite remote sensing technology with only about
GenMat
Comstock and GenMat recently agreed to simplify GenMat’s corporate and capital structure wherein GenMat will reincorporate as a
“This represents an exceptional pre-money valuation from our original investment as we continue supporting the technology developments in mineral discovery and low-carbon fuels and committing ongoing investment funds while GenMat commercializes its proprietary technology and assesses multiple, favorable outside capital opportunities,” said De Gasperis. “We anticipate GenMat consummating these transactions this year, and effectively closing out our investment commitment.”
RenFuel
“RenFuel’s team, technologies and our now collaborative joint venture are highly strategic and already impactful to our active commercialization activities,” said De Gasperis, “RenFuel’s highly specialized chemical expertise adds to the breadth and depth of our own technical team and their enabling patent portfolio complements our own extensive intellectual property portfolio. We are building a world class innovation and technology powerhouse, and we are just getting started.”
Green Li-ion
Green Li-ion recently announced the launch of its first commercial-scale installation to produce sustainable, battery-grade materials, the first of its kind in
De Gasperis continued: “Green Li-Ion was an early-stage minority investments with direct strategic importance that has made tremendous progress in its technology readiness and also seen remarkable appreciation in value that has now been validated on multiple occasions by third party transactions. The commercial advancements in
Other Strategic Investments
The Company’s strategic investments have all proven to have direct impact on its goal of accelerating the commercialization of hard technologies for the energy transition. Our innovations team has also recently identified and is investing in additional pathways for breakthrough increases in our biofuel yields and significant reductions in our CI scores and costs.
“We will continue innovating and investing, within our own team and an expanded network of world-class innovation partners, with the long-term objective of matching the effectiveness and efficiency of petroleum, in every possible way,” said De Gasperis. “Producing sustainable aviation fuel and other renewable fuels at fossil parity isn’t merely an obsession or dream of some of our leaders. We aren’t that far away, and our strategic investments are providing a real line of sight on that possibility.”
Consolidated Financial Results
During the three-month period ending
- Decreased total assets to
$104.9 million , down from$106.5 million atDecember 31, 2023 ; - Increased total liabilities to
$30.9 million , up from$28.2 million atDecember 31, 2023 ; - Increased total debt to
$10.9 million , up from$9.9 million atDecember 31, 2023 ; - Extended the maturities on our
GHF Inc. andAlvin Fund note obligations untilApril 15, 2026 ; - Increased revenues to
$0.4 million , from nil in the comparable 2023 quarter; - Decreased loss from operations to
$4.6 million , from a loss of$5.1 million in the comparable 2023 quarter; - Increased net loss attributable to Comstock to
$6.9 million , up from$5.7 million in the comparable 2023 quarter; - Net loss per share to
$0.06 was comparable to 2023 quarter net loss per share of$0.06 ; and - Outstanding common shares were 122,615,150 and 138,245,070 at
March 31, 2024 , andApril 26, 2024 , respectively.
“We also expanded our pioneering innovation network with a committed corporate investment of
OUTLOOK
Comstock Fuel’s 2024 objectives include:
- Executing revenue generating commercial agreements for at least one industry-scale joint development project with operationally experienced, technologically sophisticated, and well capitalized customers;
- Executing revenue generating technical and engineering services agreements, ultimately in pursuit of license agreements for commercial production facilities that would each create running royalties for decades;
- Advancing and expanding our innovation network for even higher yields and lower costs; and
- Expanding our integrated biointermediate production system, including cellulosic ethanol and
HBO .
Comstock Metals 2024 objectives include:
- Commissioning the photovoltaic material recycling;
- Commencing continuous production of our recycling facility and advancing the technology readiness;
- Expanding our existing revenue generating supply commitments; and
- Finalizing the design and site selection for the next 2-3 “industry-scale” facilities and commence permitting.
Industry scale facilities are expected to have up to 100,000 tons of annual capacity with market projections of up to 1 million tons of annual, end-of-life solar panels getting decommissioned by 2030, primarily in the southwest region of the
- Receiving cash proceeds of more than $2 million from mineral leases leveraging the northern district claims;
- Commercializing mineral development agreements that enable resource expansion of the central district claims;
- Developing with GenMat, AI-based exploration tools, using Comstock's extensive geologic data along with GENMAT-1’s hyperspectral imaging solution to condition and develop the AI and ground-truth its predictions; and
- Complete the development and mine plans that enables the economic development of the southern district claims.
Our 2024 efforts will apply economic analysis to our existing gold and silver resources progressing toward full economic feasibility for the southern part of the district and the ultimate development of full mine and reclamation plans.
GenMat’s 2024 objectives include:
- Elevating new material simulation to
TRL 7 by ongoing synthesis and testing of the physics-based AI’s ability to accurately predict material properties with confirmed precision and accuracy; - Commercializing its space-based hyperspectral imaging sensor for mineral discovery applications; and
- Commercializing physics-based AI solutions to enterprise clients for advanced materials simulation and synthesis.
GenMat’s technologies have advanced much faster than anticipated and multiple commercial agreements are likely in 2024.
CONFERENCE CALL DETAILS
Comstock will host a conference call today,
Date: April 30, 2024
Time: 5 am PT/
Register: Webinar Registration
HAVE QUESTIONS? There will be an allotted time following the results presentation for a Q&A session. Unaddressed questions will be reviewed by management and responded to accordingly. You may submit your question(s) beforehand in the registration form (linked above) or by email at ir@comstockinc.com.
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Tel (203) 487-2759
ir@comstockinc.com
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