• Outstanding Shares: 209 million shares outstanding.
• Convertible Note: Closed on a $1.5 million convertible note.
• Revenue from Decommissioning: Added $80,000 to revenue in Q3 from decommissioning services.
• Silver Price: Silver price over $34 per ounce, moving towards $35.
• Gold Price: Gold prices nearly $2,750, with expectations to rise above $3,000.
• Mineral Resources: 293,000 ounces of gold and 2.1 million ounces of silver in measured and indicated resources; 90,000 ounces of gold and 480,000 ounces of silver in inferred resources.
• Fuel Yields: Validated yields of up to 125 gasoline gallon equivalents per dry ton of wood, with potential to increase to over 140 gasoline gallon equivalents.
• Commercial Fuel Agreements: Three agreements with South Asia Carbon Limited for biofuel production facilities in Australia.
• Royalty and Fees: 20% stake in each refinery, 6% royalty on revenue, and 6% preproduction engineering fees.

• Warning! GuruFocus has detected 4 Warning Signs with LODE.

Release Date: October 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Comstock Inc (LODE) has secured significant partnerships with the Department of Energy and the National Renewable Energy Lab, enhancing its technological and market positioning.
• The company has announced a binding agreement to restructure and own 100% of GenMat's material science discovery business, which includes AI technology and related IP, without issuing new shares or cash.
• Comstock Fuels has validated higher yields of up to 125 gasoline gallon equivalents from woody biomass, significantly outperforming other technologies.
• The metals and mining segment is experiencing rapid revenue growth, with silver prices reaching over $34 per ounce, positioning Comstock Inc (LODE) to capitalize on the demand for precious metals.
• Comstock Metals has expanded its urban mining operations, adding decommissioning services for solar panels, which contributed $80,000 to Q3 revenue and strengthened its market position.

Negative Points

• The company is still in the due diligence process with SBC for capital structuring, which introduces uncertainty regarding the finalization of funding.
• Comstock Inc (LODE) has 209 million shares outstanding, which may concern investors about potential dilution.
• The complexity of the company's operations, including multiple business segments and partnerships, may pose integration and execution risks.
• The company is reliant on securing additional permits and site selections for its expansion plans, which could face regulatory or logistical delays.
• Despite positive developments, the company acknowledges the need for patience as it works through the tranches of capital and commercialization efforts.

Q & A Highlights

Q: How many tons of end-of-life panels are presently stored at Comstock's warehouse, and what is the storage capacity? A: We currently have over 300 tons in storage and have received permits for expanded storage, sufficient for the first industry-scale facility, a 100,000-ton facility in Silver Springs. This allows us to develop the market and sales pipeline before the facility becomes operational. - William McCarthy, COO

Q: What valuable materials are being extracted from the recycled solar panels, and are they being stockpiled on-site? A: We are currently selling aluminum and are in discussions for the glass. The third stream, the solar panel ore, contains silver and other critical metals. We are exploring whether we can extract these metals more efficiently and profitably than selling to third parties. The market demand for this material is substantial, reflecting a shortage in the silver market. - William McCarthy, COO

Q: What are the plans for Comstock's historic gold and silver mining assets in Nevada, particularly regarding the Dayton project? A: The Dayton project is our top priority, with plans to conduct a preliminary economic analysis next year to formalize our production plan. We aim to move towards permitting and production quickly, leveraging our existing infrastructure and geological knowledge to minimize risk. - William McCarthy, COO and Corrado De Gasperis, CEO

Q: How should investors view Comstock's GenMat AI business for material science, and is GenMat still planning to analyze Comstock's mining assets? A: Our focus is on material science development, using AI to enhance our capabilities. We will benefit from any geophysical data GenMat collects, and they will scan the Comstock district at no additional charge when ready. This data will aid in expanding our mining operations intelligently. - Corrado De Gasperis, CEO

Q: Can you explain how the $1 million payout related to the GenMat deal will be funded without issuing new shares or cash? A: The payout will be funded through previous investments in GenMat, allowing us to manage the $1 million without additional disbursements from our treasury. - Corrado De Gasperis, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.