Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today
announced its recent business development highlights, third quarter
2022 results, and updated outlook.
Selected Strategic Highlights – Lithium
Extraction and Electrification Products
- Received a
Written Determination of Hazardous Waste Recycling (“Operating
Permit”) authorizing LINICO Corporation (“LiNiCo”) to conduct
lithium-ion battery (“LIB”) crushing, separating, lithium
extraction and precursor cathode active materials processing at its
battery metal recycling facility located in Storey County,
Nevada.
- Received a
first-of-its-kind Conditional Use Permit (“CUP”) by LiNiCo to
operate a lithium-ion battery (“LIB”) pre-recycling storage
facility at a nearly 200-acre industrial campus in Mound House,
Nevada.
- Submitted an Air
Quality permit covering Comstock’s novel crushing, separating, and
conditioning process.
- Comstock filed
three patents with 45 claims covering novel processes for crushing,
separating, and conditioning LIBs into competitively superior black
mass concentrates without prior electrical discharge, and selective
“lithium first” separation for dramatically reduced water,
chemical, energy, and costs in comparison to known
hydrometallurgical and pyrometallurgical processes, enabling direct
production of battery grade lithium carbonate and lithium
hydroxide.
- Green Li-ion, an
investee of LiNiCo, focused on precursor cathode active materials,
deployed its first system.
Selected Strategic Highlights –
Cellulosic Fuels
- Filed a grant
application with the U.S. Department of Energy (“DOE”) to
demonstrate one of Comstock’s unique new pathways to produce
renewable fuels from woody biomass at dramatically improved yield,
efficiency and cost.
- Assembled a
top-tier development team, including Topsoe Inc., Marathon
Petroleum Company LP, Novozymes, Xylome Corporation, RenFuel K2B
AB, Emerging Fuels Technology Inc., the University of Nevada Reno,
the University of Minnesota Duluth’s Natural Resources Research
Institute, and the State University of New York College of
Environmental Science and Forestry, supporting the DOE grant
application and the resultant pilot system.
- Expanded our
leading cellulosic technology portfolio by filing for a new patent
covering multiple breakthrough pathways to produce renewable
diesel, marine, sustainable aviation fuel (“SAF”) and gasoline from
woody biomass, at dramatically improved yield, efficiency, and
costs in comparison to all known methods.
- Launched the
commercialization of its cellulosic ethanol production technology
for construction of commercial scale facilities, with a focus on
upgrading pre-existing first-generation corn ethanol facilities to
woody biomass feedstocks.
- Engaged clients
in both the renewable diesel and carbon neutral pulp and paper
industries for engineering, technology and equipment sales
utilizing our cellulosic technologies for the deployment of carbon
neutral solutions in 2023.
Selected Financial Highlights – Corporate
- Total assets
were $116,499,012 at September 30, 2022, as compared to
$117,826,063 at June 30, 2022.
- Operating
expenses were $2,963,782 for the third quarter 2022, including
selling, general and administrative expenses of $1,894,500 and
research and development expenses of $1,330,340, and depreciation
of $794,565 offset by the $1,055,623 gain on sale of the Daney
Ranch property.
- Third quarter
2022 net loss was $5,315,044 or $(0.07) per share, as compared to
third quarter 2021 net loss of $9,494,506 or $(0.17) per share. The
2022 loss decreased primarily due to a $5,630,000 decrease in
losses from the estimated fair value of the derivative assets and
the gain of $1,055,623 on the sale of the Daney Ranch, partially
offset by increases of $1,166,006 for research and development
expenses, $458,960 in depreciation and amortization, and $311,809
for selling, general and administrative expenses.
- Deposited
$2,000,000 during October, on LiNiCo’s battery metal recycling
facility located at 2500 Peru Drive, with a total purchase price of
$15.25 million. The facility was recently appraised at a value well
in excess of $25 million.
- Debt was
$3,887,933 at September 30, 2022, net of discount, that increased
by approximately $2 million in October, 2022, from an additional
borrowing associated with the deposit paid toward the purchase of
the LiNiCo facility.
- Expanded
non-strategic asset monetization efforts with asset sales proceeds
now expected in excess of $25 million.
- Cash and cash
equivalents were $1,156,512 at September 30, 2022.
- Outstanding
common shares were 82,388,289 at September 30, 2022, and 86,055,389
at October 28, 2022.
“We made major advancements in both of our
renewable energy businesses, advancing our technology foundation,
our supply chain partners, and our ability to commercialize our
solutions into the markets in 2023,” stated Mr. Corrado De
Gasperis, Comstock’s executive chairman and chief executive
officer. “We are also on the brink of monetizing non-strategic
assets, thereby positioning our businesses for exponential growth
and meaningful, impactful decarbonization.”
Electrification Products
The Company made major advancements in
substantially all areas of its battery metal recycling business,
including technology development, permitting and readiness of the
facilities for deployment. The Company completed construction and
initial commissioning of its breakthrough LIB crushing, separating,
and conditioning process with the ability to produce a novel and
pure black mass. The Company also advanced testing of these
materials for high efficiency metals extraction, starting with
lithium, and successfully obtained permits for its processing and
storage facilities, both located in northern Nevada.
“We have successfully developed a proprietary
system that produces a novel and pure black mass, positioning us
for production and the development of high efficiency metals
extraction, starting with lithium, a critically needed mineral,”
said Mr. De Gasperis. “Our team is enhancing the pilot system for
deployment in Nevada where we look to integrate our black mass and
lithium extraction processes in 2023.”
During the third quarter of 2022, LiNiCo
received its main operating permit and submitted its modified air
quality permit for its battery metal recycling facility at 2500
Peru Drive, as well as a conditional use permit from Lyon County,
NV, authorizing the operation of a LIB pre-recycling storage
facility at a separate, expansive industrial site.
The Company’s LIB storage facility represents
one of the largest industrial parcels, nearly 200 acres, residing
in one of the largest industrial parks in Lyon County, Nevada, with
ample power, water and immediate highway access. The facility will
receive, sort, and store waste LIBs, with significant capacity for
expansion and possible crushing and separating operations.
“The receipt and storage of these batteries
represents an essential component of our regional supply chain for
recycling these critical metals,” said Mr. De Gasperis, “We are
thrilled with Lyon County’s support as we secure this fundamental
piece necessary for receiving, storing and potentially expandable
into also recycling waste LIBs.”
Cellulosic Fuels
Renewable fuels provide a critical opportunity
for decarbonization, however, most of the existing U.S. renewable
fuel refineries draw from the same limited pool of constrained
feedstocks, primarily vegetable-based oils. Comstock’s plans to
decarbonize with renewable fuels utilizes woody biomass, an
abundant, carbon-neutral feedstock not in use today, that enables a
vast untapped energy source with superior benefits. The Company
recently announced a significant expansion of its leading
cellulosic technology portfolio by filing for a new patent covering
breakthrough pathways to produce renewable diesel, sustainable
aviation fuel (“SAF”) gasoline and marine fuel from woody biomass,
at dramatically improved yield, efficiency, and cost in comparison
to all known methods.
“Our new patent covers processes and
compositions that have been validated at our existing two ton per
day cellulosic fuels pilot facility, verifying that we can
simultaneously produce multiple purified bio-intermediates that are
uniquely isolated and free of the contaminants that have frustrated
prior attempts at commercializing cellulosic fuels,” stated Mr. De
Gasperis.
Based on current data, Comstock projects
best-in-class renewable yields exceeding 80 gallons per dry ton of
woody biomass (on a gasoline gallon equivalent basis), with
lifecycle greenhouse gas emissions reductions exceeding 80% over
petroleum.
The Company is currently expanding its existing
cellulosic demonstration system to include the production of
Bioleum™ and expects the demonstration system to add to its
existing capabilities for producing carbon-neutral pulp, cellulosic
sugar, and cellulosic ethanol. The expansion into Bioleum™ will
demonstrate the full capability of producing these
biointermediaries suitable for the production of renewable diesel
fuel, sustainable aviation fuel, gasoline, marine fuel, and other
products from woody biomass.
The Company recently submitted a grant
application to the U.S. Department of Energy (“DOE”) entitled
“Production of Renewable Diesel, Sustainable Aviation Fuel,
Gasoline, and Marine Fuel from Lignocellulosic Biomass at
Dramatically Improved Yield, Efficiency, and Cost” reflecting
positively on our technology and the strength of our collaboration
partners.
De Gasperis continued, “The existing U.S.
biorefining capacity is far greater than current feedstocks can
support, and the DOE clearly recognizes the need for diverse
feedstocks. We believe that our expanded technology solutions, and
the magnitude of feedstocks that they enable, unblock one of the
most critical supply chain constraints across the U.S. and global
markets.”
The Company is also marketing its cellulosic
ethanol production technology for construction of commercial scale
facilities, with a focus on upgrading pre-existing,
first-generation corn ethanol facilities that can convert woody
biomass into cellulosic ethanol at dramatically improved yield,
efficiency, and cost when compared to corn. Comstock’s first
bio-intermediate is a purified form of cellulosic sugar that can be
used as a chemically identical “drop-in” feedstock in corn ethanol
facilities.
“Our goal is to accelerate the commercialization
of decarbonizing technologies,” added De Gasperis. “We are ready to
enable dramatic improvements in GHG reductions and ethanol
profitability today, with existing corn-based producers.”
Mineral Assets and Gold and Silver
Resources
The Company has completed its geologic and
engineering work associated with publishing a new mineral resource
technical report and related SK-1300 compliant mineral resource
estimates for the southern part of the historic Comstock District,
including the Dayton-Spring-Valley-Oest complex. The mineral
resource estimate and broader technical report are being reviewed
for publication by Behre Dolbear, one of the leading mineral
consultants, with publication expected this month.
Separately, Tonogold Resources Inc. had a
separate SK-1300 compliant report published by Mine Development
Associates Inc. (“MDA”), of Reno, Nevada, a Division of RESPEC
Company LLC. The MDA report identifies gold and silver mineral
resources for the Company’s 100% owned Lucerne resource area and is
also available on Tonogold’s website.
These reports are prepared in accordance with
the disclosure and reporting requirements of the United States
Securities and Exchange Commission’s (“SEC”) new mining rules under
subpart 1300 and item 601 (96)(iii) of Regulation S-K (the ‘New
Mining Rules’). MDA is the author of the Technical Report for the
Comstock Project in Storey County, NV, and are independent of
Tonogold. Behre Dolbear will be the author of the Technical Report
for the Dayton resource area and all of the other exploration
targets in Lyon County, NV, and are independent of Comstock Inc.
and its subsidiaries.
Corporate
The Company now expects more than $25 million in
proceeds over the next two quarters from the sale of its non-mining
properties, non-strategic investments, and collection of advances
receivable, including proceeds from Sierra Springs Opportunity
Fund. The Company is directly engaged with multiple parties and
expects these transactions to eliminate all debt obligations and
position the Company with a substantial cash position during the
first quarter of 2023.
Conference Call Details
Comstock will host the conference call on
Tuesday, November 1, 2022, at 1:15 p.m. PDT (4:15 p.m. EDT) and the
webcast will include a moderated question and answer session
following the Company’s prepared remarks. Please click the link
below to register in advance and please join the event at least 10
minutes prior to the scheduled start time. Once registered, you
will receive a confirmation email containing information about
joining the Webcast. Please click here to register in advance.
About Comstock
Comstock (NYSE: LODE) innovates technologies
that contribute to global decarbonization and circularity by
efficiently converting under-utilized natural resources into
renewable fuels and electrification products that contribute to
balancing global uses and emissions of carbon. The Company intends
to achieve exponential growth and extraordinary financial, natural,
and social gains by building, owning, and operating a fleet of
advanced carbon neutral extraction and refining facilities, by
selling an array of complimentary process solutions and related
services, and by licensing selected technologies to qualified
strategic partners. To learn more, please visit
www.comstock.inc.
Forward-Looking
Statements
This press release and any related calls or
discussions may include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical facts, are
forward-looking statements. The words “believe,” “expect,”
“anticipate,” “estimate,” “project,” “plan,” “should,” “intend,”
“may,” “will,” “would,” “potential” and similar expressions
identify forward-looking statements, but are not the exclusive
means of doing so. Forward-looking statements include statements
about matters such as: future industry market conditions; future
partnerships, contracts and collaborations, future grant awards,
future asset sales, future liquidity and financial positions,
future explorations or acquisitions; future changes in our
exploration activities; future changes in our research and
development; and future prices and sales of, and demand for, our
products and services. Except as may be required by securities or
other law, we undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Neither this press release nor any related call or discussion
constitutes an offer to sell, the solicitation of an offer to buy
or a recommendation with respect to any securities of the Company,
the fund or any other issuer.
Contact information: |
|
|
Comstock Inc.P.O. Box 1118
Virginia City, NV 89440www.comstock.inc |
Corrado De GasperisExecutive
Chairman & CEOTel (775) 847-4755degasperis@comstockinc.com |
Zach SpencerDirector of
External RelationsTel (775) 847-5272
Ext.151questions@comstockinc.com |
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