Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”)
today announced that its executive chairman and chief executive
officer issued the following letter to Comstock’s shareholders in
advance of the Annual General Shareholders Meeting.
Dear Shareholders:On behalf of our Board of Directors, employees
and partners, we would like to thank all of you for participating
in a pivotal, exciting and successful year. We have repositioned
our assets by acquiring new technologies, launching new businesses,
liquidating non-core and non-performing assets, and eliminating our
debt. We have now positioned our existing platform for
extraordinary growth and high-impact value creation with clean
innovations, climate smart mining, and ESG driven projects.
This transformational “green shift” began years ago and gained
traction with our global mercury remediation and lithium-ion
battery recycling projects. Those efforts recently culminated in
the commissioning of our first commercial Mercury Clean-Up LLC
(“MCU”) project in the Philippines, and the acquisition of a
controlling stake in LiNiCo Corporation (“LiNiCo”), and its 20,000
ton per year lithium-ion battery recycling and 10,000 ton per year
of 99.9% pure cathode production in the Tahoe Reno Industrial
(“TRI”) Center located in Storey County, NV.
Each MCU system has the potential to produce more than $12
million in pre-tax operating income per year (depending on site
conditions, mineral content and spot price). The LiNiCo facility,
at just 33% of its capacity and 60% of applicable commodity prices,
has the potential to generate more than $100 million in sales with
estimated pre-tax operating income margins exceeding 30%. We’re
also actively exploring expansions and acquisitions that support
and accelerate LiNiCo’s growth with a hub-and-spoke model.
Comstock has historically focused on the extraction of precious
and strategic metals, where the words “precious” and “strategic”
were conventionally defined by magnitude of impact and relative
scarcity. We now believe that the global clean energy transition,
escalating population growth, and accelerating natural resource
scarcity is converging into a “perfect storm” of global demand for
a broader array of strategic materials, beyond metals, including
anything involving carbon, energy, and water – without the
corresponding global capacity to sustainably or reliably meet
escalating demand. Our strategic focus is consequently expanding to
include the extraction and valorization of a portfolio of critical
and inevitably scarce materials, with an initial preference for
high cash throughput generators that complement our existing
competencies and operations. We are evaluating several potential
transactions and investment opportunities, the first of which we
hope to close this during this quarter.
Our employee incentive compensation is 100% linked to specific
performance objectives designed to deliver $500 million in
shareholder value and more than $12.00 per share by 2023. Our team
is focused on achieving and exceeding those targets because the
“perfect storm” of current demand isn’t the only thing on our
horizon. A renaissance of green innovation is upon us and the pace
is increasing worldwide.
We will be a leader in those efforts, with a focus on the
systemic development and commercialization of new technologies and
robust new lines-of-businesses, such as MCU and LiNiCo, among
others, that have the potential to sustainably contribute to
humanity’s rapidly-escalating demand for increasingly scarce
natural resources, including the strategic metals and other
resources needed to fuel the world-wide quantum surge in, and
transition to, clean energy, carbon-neutrality, and natural
products.
We are systematically strengthening our organization and
positioning for continuous throughput growth. We will scale our MCU
footprint, enhancing efficacy and targeting new deployments in
qualified geographies. We will build our LiNiCo recycling and
battery production business. We will acquire and build accretive
technologies, projects, and businesses. We will measure the wealth
we create comprehensively, with throughput as our primary financial
measure, and by measuring and reporting the positive natural and
social impacts of all of our activities. By sustainably delivering
more than $500 million in shareholder value, we will have built an
innovative, continuously growing, throughput-generating, ESG-based
enterprise with diverse lines of businesses that rise above the
scarcity challenges.
We are at the dawn of a new era. This tragic pandemic is nearing
its end and it taught us how closely we are all connected. Not just
to each other and the natural world that sustains us, but to the
financial, natural, and social systems that have the power to save
us. We will contribute to that end by positively impacting the
existing systems, and building and integrating new systems and
shareholder value along the way.
We look forward to our next communication and seeing those of
you that can attend this year’s AGM, where we plan on showcasing
our existing lines of businesses, employees and partners, including
the results of our planned near-term transactions. Thank you always
for your continued interest and support.
Kindest regards,Corrado De GasperisExecutive Chairman and Chief
Executive OfficerComstock Mining Inc.
About Comstock Mining Inc.
Comstock Mining Inc. (NYSE: LODE) (the
“Company”) is an emerging leader in the sustainable extraction,
valorization, and production of innovation-based, clean, renewable
natural resources, with a focus on high-value, cash-generating,
strategic materials that are essential to meeting the rapidly
increasing global demand for clean energy, carbon-neutrality, and
natural products. To learn more, please visit
www.comstockmining.com.
Forward-Looking StatementsThis
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: consummation of all pending transactions; project,
asset or Company valuations; future industry market conditions;
future explorations, acquisitions, investments and asset sales;
future performance of and closings under various agreements; future
changes in our exploration activities; future estimated mineral
resources; future prices and sales of, and demand for, our
products; future impacts of land entitlements and uses; future
permitting activities and needs therefor; future production
capacity and operations; future operating and overhead costs;
future capital expenditures and their impact on us; future impacts
of operational and management changes (including changes in the
board of directors); future changes in business strategies,
planning and tactics and impacts of recent or future changes;
future employment and contributions of personnel, including
consultants; future land sales, investments, acquisitions, joint
ventures, strategic alliances, business combinations, operational,
tax, financial and restructuring initiatives; the nature and timing
of and accounting for restructuring charges and derivative
liabilities and the impact thereof; contingencies; future
environmental compliance and changes in the regulatory environment;
future offerings of equity or debt securities; asset sales and
associated costs; future working capital, costs, revenues, business
opportunities, debt levels, cash flows, margins, earnings and
growth. These statements are based on assumptions and assessments
made by our management in light of their experience and their
perception of historical and current trends, current conditions,
possible future developments and other factors they believe to be
appropriate. Forward-looking statements are not guarantees,
representations or warranties and are subject to risks and
uncertainties, many of which are unforeseeable and beyond our
control and could cause actual results, developments and business
decisions to differ materially from those contemplated by such
forward-looking statements. Some of those risks and uncertainties
include the risk factors set forth in our filings with the SEC and
the following: counterparty risks; capital markets’ valuation and
pricing risks; adverse effects of climate changes or natural
disasters; global economic and capital market uncertainties; the
speculative nature of gold or mineral exploration, including risks
of diminishing quantities or grades of qualified resources;
operational or technical difficulties in connection with
exploration or mining activities; contests over title to
properties; potential dilution to our stockholders from our stock
issuances and recapitalization and balance sheet restructuring
activities; potential inability to comply with applicable
government regulations or law; adoption of or changes in
legislation or regulations adversely affecting businesses;
permitting constraints or delays; decisions regarding business
opportunities that may be presented to, or pursued by, us or
others; the impact of, or the non-performance by parties under
agreements relating to, acquisitions, joint ventures, strategic
alliances, business combinations, asset sales, leases, options and
investments to which we may be party; changes in the United States
or other monetary or fiscal policies or regulations; interruptions
in production capabilities due to capital constraints; equipment
failures; fluctuation of prices for gold or certain other
commodities (such as silver, zinc, cyanide, water, diesel fuel and
electricity); changes in generally accepted accounting principles;
adverse effects of terrorism and geopolitical events; potential
inability to implement business strategies; potential inability to
grow revenues; potential inability to attract and retain key
personnel; interruptions in delivery of critical supplies,
equipment and raw materials due to credit or other limitations
imposed by vendors or others; assertion of claims, lawsuits and
proceedings; potential inability to satisfy debt and lease
obligations; potential inability to maintain an effective system of
internal controls over financial reporting; potential inability or
failure to timely file periodic reports with the SEC; potential
inability to list our securities on any securities exchange or
market; inability to maintain the listing of our securities; and
work stoppages or other labor difficulties. Occurrence of such
events or circumstances could have a material adverse effect on our
business, financial condition, results of operations or cash flows
or the market price of our securities. All subsequent written and
oral forward-looking statements by or attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
these factors. 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 calls
or discussions 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 Mining Inc.P.O. Box
1118 Virginia City, NV 89440ComstockMining.com |
Corrado De GasperisExecutive
Chairman & CEOTel (775)
847-4755degasperis@comstockmining.com |
Zach SpencerDirector of
External RelationsTel (775) 847-5272
Ext.151questions@comstockmining.com |
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