Q4 2021 Comstock Mining Inc Earnings Call
<unk> technologies, while we're unlocking the value of the other assets by monetizing that.
The acquisition of <unk> innovation, now Comstock innovations and renewable process solutions now Comstock engineering.
Represent our newly established innovation and commercial development capabilities.
Where we can now commercialized our own IP.
Physically demonstrate our technology and rapidly prototype new products for our customers. We can also engineer and manufacture these solutions for ourselves and our customers. We have already designed and built breakthrough crushing and separating solutions for advanced pure highly mineralized black mass from lithium ion batteries and we are currently advancing.
<unk>, our extraction technology for lithium.
Cellulosic sugar and by OEM and more our core competency is literally natural resource extraction.
When we realized last year their extraction technology was producing a carbon neutral equivalent to petroleum.
We immediately filed a trademark for that name by Ohio.
Which we are now saying publicly today for the first time.
All of our entire patent portfolio now resides in Comstock IP holdings.
Kevin Chrysler our President Billy Mccarthy, our Chief operating offer officer Havent continued to lead the organization daily to this end.
We've also established Comstock fuels, which I just mentioned a bit earlier, our 100% owned cellulosic fuels business, representing one of our two renewable energy businesses. The acquisition of <unk> initially as a minority in early 2021 and now owning over 90%.
Led by our newly appointed President of <unk> and.
And represents our other renewable energy business both of these businesses, we knew carbon neutral materials that fuel transportation.
Our leadership team, including Kevin, including Billy including Rio and David Witness, our Chief Technology Officer, and Rob <unk>, Our chief engineer here will be on hand at this year's annual meeting on May 26 Arena. Please register on the 10, where you can speak and discuss our capabilities with the entire senior team firsthand.
Let me dive a little bit deeper into renewable fuels, we believe that renewable fuels provides the most critical real world mechanism for decarbonization. However, today most current form of these renewable fuels draw from the same pool of conventional feedstocks like corn oil like <unk>.
<unk> oil without any truly meaningful carbon benefits.
That entire corn and vegetable universe only represents a tiny fraction.
Of the global transportation burn so they can barely make a dent.
Any serious plans.
To meaningfully decarbonize using renewable fuels, both involve abundant and available feedstocks that no one else is using today.
Comstock fuels on the portfolio of technologies that resolve these feedstock limitations by efficiently converting waste that is widely available and rapidly replenishable waste in the form of Woody biomass into these advanced Cellulosic fuels. We can do this today under existing regulations incredibly profitable.
<unk>.
And the federal government is now making sweeping changes to enable even more which we recently publicly commented on when we say ways, we mean sort of.
Mill residuals slash that no one is using for fuels and that worked perfectly in our process. We can now unlock vast quantities of these historically unused underutilized feedstocks with enough renewable carbon to permanently offset billions of tons of fossil fuel emissions. This is real world.
The carbonization incredibly responsible so incredibly profitable.
We understand that Theres upwards to 1 billion tons per year of this waste biomass currently generated in the U S alone.
That's enough to produce $1 7 billion barrels again per year of carbon neutral fuels with our technologies or more than a third of the U S transportation demand.
This doesn't address.
The potential of underutilized forest land.
Just talking about the waste the residual facades for flash.
He's going to be it was like four plans can be restored and used to sustainably grow harvest and replant billions of times, a fast growing energy crops for conversion is billions more barrels of renewable fuels again with our technologies. The combined output could exceed 50% of America. The current output on fossil crude and its 100%.
<unk>.
<unk>, Canada has even more the.
The impact here is massive it's truly the equivalent of an oil well that could never run dry and our technologies are effectively the grille that unlocks the natural resource. So our plan will be to rapidly build deploy own and operate a fleet of advanced carbon neutral attraction and refining facilities. Our goal is to safely generate 16 plus billion in revenue.
On an annual basis by 2030.
We plan to design.
Bill retrofit, an existing facility <unk> and commenced production producing and selling cellulosic ethanol and diesel.
We're already assessing the sites for the next 10 facilities.
Targeted in the first month targeted in the second one and we are assessing the sites for the next 10.
That's how we will achieve rapid scale by tapping into and leveraging the existing infrastructure.
Okay.
We're talking about less.
Leveraging the existing infrastructure, we're not talking about building a new infrastructure.
Our expanded team has extensive experience doing just that in this industry, having designed and built over 20 large scale industrial renewable fuel facilities.
Meeting that objective alone would offset more than 234 million barrels per year of fossil fuel, which is about 6% of the U S transportation burn get only requiring about 80% of this available U S biomass residuals.
What I'm, saying is that we will convert this untapped woody biomass into cellulosic drop in fuel like diesel.
<unk> sustainable aviation fuel like marine fuel gasoline and Cellulosic ethanol.
These fuels work in the existing infrastructure that is diesel goes into existing truck.
This aviation four goes into existing claim.
It works with existing depots fueling stations et cetera, and just one of our bio refineries just want can produce over 100 million gallons of biofuel per year.
Which would represent about 70 million gallons of Cellulosic ethanol and 30 million gallons of renewable diesel again per year from just 1 million metric tons of wood biomass.
This is how we enable global de carbonization by burning less followed fossil fuels earnings smarter with more renewable fuels and burning cleaner by recycling munitions into more feedstock.
I can stop there, but theres more because as we know our electrification is also playing a meaningful role in reducing our reliance on fossil fuels, although frankly, the notion that it's the sole solution is is factually in literally nonsense.
But our second decarbonization initiatives is our electrification products business with results from our 90% ownership of <unk>. We are pleased to announce that we have onboard our new nickel president as I just mentioned the <unk> Neo is it.
Extensive background in building the type of renewable business. He is the founder of <unk> viral power renewable inkjet develop waste to energy solutions, both domestically internationally.
Extensive domestic and international M&A experience.
<unk> strong financial project and transactional management experience.
We're not only excited to have real fully onboard these here in Nevada, as we see at political facility.
TVA registrations of course are exploding more than doubled in 2021 and meeting even the most conservative estimates for these increases in EV demand will likely result in about five times more lithium carbonate than the entire mining industry produces today the conventional recycling processes that we are seeing deploy.
<unk> suffer from.
Extremely high if not total loss of lithium.
Our technology needs the realities of this demand and this demand shortfall by extract lithium early and profitably we will extract lithium immediately after crushing and separating in a manner that maximizes the lithium recovery for reuse in batteries.
These market, leading yields and additional revenues allows us to be profitable at very low levels of production.
Very low production levels by putting lithium first we're also partnered with the developing technology with developing technologies for cleaning processing and producing other metals like nickel cobalt manganese as well as technologies that can recycle our highly pure black mass and produced 99% pure precursor cat.
Active materials collectively these technologies given window, great scalability, including the ability to process up to 100000 tons of spent batteries per year.
With broad differentiating advantages up and down the supply chain and up and down our novel processes. This breath as a platform a much larger addressable market and there is no spoke or hub.
Just a well designed well engineered and fully integrated system with higher yields faster throughput that operated at a fraction of the industry's current costs.
Our first commercial prototype.
Six ton per day, crushing and separating system is being assembled.
<unk> right now as we speak.
Once our Nevada permits are secured this summer it will be located at our state of the art facility right here in Nevada, where we expect production this year.
This positions our recycling business to contribute billions of dollars to our enterprise value just from when it go just based on existing valuations of comparable companies and are perceived advantages.
In that industry against those companies.
Let me just conclude the prepared remarks with the monetization of our noncore assets if it hasnt been obvious we've been working hard to monetize.
Our nonperformer mineral and real estate assets.
For us performing needs generating socially responsible revenue robust throughput and impacting the carbonization. We're pleased to announce that we've just completed a transaction with tunnel gold pays us $175 million. This way as a prerequisite for us exchanging the $6 $65 million.
This month.
For an option to repurchase the Lucerne mine by the end of this year for just under $8 million.
This does technically means that we took back the ownership of the Lucerne mine at least temporarily and lula cash payments and a higher value.
Due later this year for US. This is just one example of extraordinarily effective monetization of these assets.
<unk> is also separately payments annually.
For the leasing of all of our other mining our northern mining claims.
That they are planning to drill and develop with their capital where we retain royalties on all of those properties. They have committed to us in writing tens of millions of dollars to spend and this is another example of monetization.
Tunnel will still reimburse us an additional $2 million per year.
For the cost of maintaining the mining platform and certain mining property payment.
This is yet another example for monetization.
Now completed their draft SK <unk> hundred.
That we have reviewed and we expect that total will announce shortly.
Very meaningful restructuring and realignment that reset their financial position and funds their development plans.
We will also publish our own SK <unk> Hunter the compliant technical report on the southern part of the district with the Dayton and Spring Valley.
<unk> territories within reasonable proximity of Kona publishing theirs.
On the northern part of the district.
We are on the southern part of the district.
Both these reports will have mineral resource estimates in the combined reports for present substantially all of the Comstock mineral district and.
<unk> is to maximize.
Another round of monetization.
Of course as of today, we own all the assets, including MRSA.
With gold hovering around $1900, an ounce to publication of these two reports is timely for meeting our monetization objectives.
Closing, let me say, we've already made a remarkable process on our operating businesses.
We are currently building commercial scale, cellulosic fuels and <unk> facilities.
We are preparing to deploy the <unk> recycling facility in Nevada later this year as I just mentioned.
The monetization of our non strategic assets will support funding of our new operating businesses, while limiting substantially all of our focus.
Substantially all of our focus to Cellulosic fuels lithium battery recycling any intelligent monetization of these other assets to unlock the highest value for our shareholders.
I decided to take all your questions.
Please let's stop here and let's go right into the Q&A.
Thanks, Corrado, we've had quite a few questions submitted during your presentation.
And I know you have addressed all of these different lines of business.
So the first one is with respect to Jen, Matt and to the extent possible can you provide some further details about that and also there was an NDA discussed a few months ago, when does that and they want to know if it's a timetable or if it's based on the completion of some sort.
A milestone.
Thank you. So yes I appreciate the question very well so I think as we evolve here and as we are making it clear we are prioritizing where our priorities priorities are especially our mission of enabling systemic de carbonization, it's going to become clearer and clearer to everyone. How gen <unk>.
With our goals, having said that right having said that.
And you know that Denmark's core business objectives is to generate new materials, new materials, where for us we're prioritizing carbon capture decarbonization of the energy infrastructure and.
As well as batteries and battery science, so so genmab working on those objectives as as a policy as it is.
As a rule, we wont talk about the research and development activities until the achievements are made and communicated to everyone at the same time.
So I'd like to leave it by saying that.
The schedule of Jen Matt work spans the next 18 to 24 months.
That's the timeframe, where theyre going to be dedicated to the generic material science work that theyre doing.
And as those results come out.
Not only will they be meaningful, but youll see clearly how they are aligned with everything else that Comstock team is now focusing on is the priority.
Thank you Corrado, we have had a few questions about MCU.
Would you please detail the MCU revenues and projections. Thank you. Thanks, Doug So I mentioned that we were disappointed.
Hi.
Results in the river in the Philippines, Let me put a contact center when we went into the Philippines.
Project 27 kilometer river.
We're expecting to be taking.
Large claims of Mercury amalgam out of that river with average grades representing at least a gram per ton. Some of you've heard me say that a grant and per ton, we can be generating millions of dollars a month. Okay. We're sampling now with the results.
Two tenths of a gram even less so it is not sufficient for the system to be profitable.
If those results were.
We're higher in other words, if the grades were higher.
Then we would have the ability to generate the cash that we were looking forward to so what we're going to do is we're going to complete the testing that we want to be thorough.
We're working incredibly well with the local environmental regulators could not have gone better incredibly well with our local joint venture partner.
None of that dismisses the depth of disappointment right that we're having.
With the results not being there. So after that work is done we will SaaS.
Current situation and we will decide what the best next steps are in terms of deploying these assets I also want to emphasize we own 25% and then CEO .
Or not.
Deployed with our human resources, we are not deployed with our cash.
Working in this business. So we're focused with substantially all of our resources substantially all of our <unk>.
Dedication to the renewable energy businesses now so.
At this point for me is I think it is for everyone.
It stopped diminished, but we will have meaningfully specific results in terms of the Philippines.
Shortly and as we go forward.
Colorado, we have an overall question Wendy.
<unk> our investments lead to visible revenue. Thank you Zack so I've alluded to it in the shareholder letter I've alluded to it in the press release this morning.
And that we will be communicating in the nearer term.
We're not going to put dates on it we're going to deliver when it's ready to be delivered but in the near term coming soon.
A meaningful engagement that will result in meaningful revenues 2022, and 2023 relating to our Cellulosic fuels technology and.
So that's that's something we're very excited about it.
<unk> in a number of ways, what we're doing and what others can do with our technology. It in no way.
Limits, what we are going to do and what I. Just described we are doing with that same technology in other words there are other applications of.
This technology using Woody biomass that go into other markets that we are thrilled to help enable others to do internationally.
Okay Corrado now we have a question about mining.
Is the status of the Dayton consolidated and spring Valley.
We closed two publishing a report.
The property geological work.
Is finally complete.
The digitization and integration of that work.
Into the model is near complete.
The consultative audit work that very low Bayer has to do is deeply in progress once the final models are completed and audited.
We will look towards publishing report hopefully in the next couple of months I think it will be pretty well synchronized coincidentally not by design with total road publishing there, let's say 304, as we said and I'm very satisfied to say there'll be two technical reports with mineral resources measured and indicated.
And inferred mineral resources.
Hum.
Promulgated and communicated in both of those reports in the very near future.
And when it comes to our mining assets, let me be clear right, we're allocating our.
Capacity, we're allocating our capital Cellulosic fuels were hitting.
Hitting our capacity, we're dedicating our resources to lithium ion battery recycling, putting lithium births.
And we are partnering with others to deploy capital and to monetize these assets and to unlock the value.
For our shareholders, but you won't be seeing Kevin Beverly David Raul.
Leo.
Or any of our management team.
Building in commercializing these businesses you will meeting Larry in mind.
Boarding the ability for others to be affair.
Effectively.
Corrado.
Several questions about an update on <unk> I know you've provided one during your presentation.
A lot of.
Listeners are asking about when will recommence.
Battery recycling and links we expect revenue.
So thank you for the question Jack So I mentioned on the call that we expected to be up and running by the end of the year. Let me just give you a little bit of color.
We've engineered and designed a system that we think is novel and a number of regards <unk> first we have a very diverse ability in terms of.
Ability to access diverse feedstocks from the largest of EV batteries to.
To the smallest of power tool batteries, we literally you can see in the system with the diverse diverse array of feedstock. This is important.
Does EV batteries, which is the tsunami that people see coming in we see coming right still have some time before the wave Kraft right and crushes the market with all of those EV batteries coming off market.
But in terms of electronic devices.
The way the already crested like the ocean is already out there and so the ability to take diverse feedstocks as a differentiator that we're very proud of the ability to take diverse feedstocks and even charge batteries into our system safely.
We are very proud of the ability to extract lithium and I mentioned it on the call and it's worth we emphasizing our core competency is extraction extraction.
Minerals from natural resources from waste resources, it's our core competency might say core competency I mean, we have decades of experience doing this with other material and other applications.
Decades of experience doing this directly with cellulose and Cellulosic sugars and ethanol.
And the same technology.
We have.
Patents and intellectual property.
Around is being used to extract the lithium FERC first from the black masses. So this is a synergy that.
That is hard to quantify the value of this remarkable.
So all of that is being commit.
Commission.
Put into process and from an attraction for site being developed right in our R&D facility.
Once we have the permits we're going to move that prototype, which is not small six tons per day is not small it's not 100 tonnes per day like Blake the main unit, but it's not small and we will be able to.
To receive crush appears to black masses.
And sell those materials, that's coming very soon then we'll be able to extract lithium thereafter.
And thats coming and we will be profitable at very low levels of volumes.
These are the differentiators that we see when we compare ourselves to others, we don't see anybody tracking lithium I mean, factually, we see that theyre not exact in lithium we see that there is selling black math and getting zero for the lithium.
Yes, they are highly valued okay. So we feel we're right behind them and once we prove it once we demonstrate it then the value will be clear to everybody else as well.
Thank you Corrado de.
The next question is please provide us with an update on our non mining assets such as our land.
And real estate in Silver Springs, sure. So theres really two buckets right the.
Glenn in Silver Springs.
And the Daney ranch, so the Daney ranch, we have full expectation to be closing on the sale of being ranch $2 $5 million before the end of the summer.
Active.
Transaction that.
And there are certain to close.
We have a great counterparty, who has leased the property to two year lease with the option to buy they have indicated they are ready to exercise the option. They are going through the process. It seems to be going extremely well in terms of the silver springs assets right Theres been delays in that context, we understand that.
The defined that has contracted to and put a deposit on those assets. The agreement is to close them by the end of June that fund is actively raising money at successfully raising money, it's raising money at much much higher values.
Then when it started two years ago.
It's been a little slower than was anticipated we expect that to close all in all we are talking about $15 million of non dilutive proceeds coming into the company.
Within the next five six months.
Corrado people would like to hear more about by OEM.
And how it is produced.
And also our expected revenue generation from it.
No.
Once this gets traction.
Once people actually understand what we now understand.
Yeah.
It's going to be a remarkable rate realization the ability to take from waste effectively the carbon neutral equivalent to petroleum.
And turn it into diesel fuel that can drop into existing vehicles.
Sustainable aviation fuel that can drop into existing claims.
Marine fuels that can drop into ocean bearing fruit bearing.
Liners.
From waste.
And any other derivatives.
That comes out of petroleum the.
The carbon neutral.
Replacement.
Things are going to get exciting huh.
How is that realization is going to occur first by us telling people what we have.
Secondly by us demonstrating it.
To the world and so we are building, we are designing and building a prototype right to do just that and exactly the same fashion that we did with the lithium ion battery questions the operating system.
When that comes online, we'll be able to demonstrate not only our ability to produce pulp cellulosic sugar and ethanol, which we can do today in our facilities. We can do today in our facility.
Already done.
From the same material.
Okay.
<unk> extract carbon neutral equivalent to petroleum, which we're calling <unk>.
There's going to be an incredible amount of excitement outside the company I can tell you guys right now there is an incredible amount of excitement inside the company. This is one of the single largest discoveries and variables and our decision to move so hard and so singularly bulk.
Just to renewable energy.
We acquire plain sight innovation now Comstock renovation, because we knew they compete woody biomass and converted into Cellulosic ethanol Cellulosic ethanol, which is superior in every single way.
Corn ethanol.
It's identical molecularly.
When youre, taking waste material at a fraction of the cost of the feedstock and Youre getting revenues.
At dramatically increased percentages because of the specific carbon impact as cellulosic fuel has as compared to corn ethanol.
Cellulosic ethanol as compared to corn ethanol, if theyre getting ramp because theyre getting carbon credits of $40.50 a gallon, we're getting them at $2 plus a gallon that's.
What we're talking about a difference in revenue that is dramatic and a fraction of feedstock. That's dramatic you can do we can do that that's already know and that's why we bought.
Comstock innovation, formerly known claims side innovation.
That's also why we bought renewable process solutions, because they built 20 similar facilities over the last 15 years.
But the breakthrough.
To be able to extract not just a byproduct.
We're diligently and stuff we were talking about while there's some by products what is lignin what do you do with it burning in a boiler is that good yeah. That's good saves you money as carbon impact not that exciting.
To be able to be in <unk>.
The molecular equivalent.
Alright.
Petroleum and even fine variations of that.
I can't exaggerate the drama can exaggerate the mean the Mena.
And then you say well gosh.
How are you going to do that.
We already know how to do it take an existing 100 million gallon ethanol facility.
Convert the feedstock equation.
Instead of.
That is making 100 million gallons of corn ethanol like a 100 million gallons.
Cellulosic ethanol.
Or 70 or 80.
But then throw in another $30 million.
Of diesel same facility.
Same feedstock.
The Derisking nature of this breakthrough when you talked about taking existing platforms with existing profitable throughput speeds and then adding a whole number.
Streamed to it.
We were stopped and.
So I couldnt be more excited by hope that at least touches on what we see coming with by OEM I want to reiterate annual meeting in May 2000, and Kevin is going to be Billy is going to be there David is going to be that Raul as it can be there you want to talk about that.
That's who you want to be talking directly to a very strong encourage you guys to register and MB in Reno.
On that Thursday.
Thank you Corrado and just a reminder to everyone you can register for the annual meeting.
Our new website and corrado that tick.
Our next question.
And statement. Thank you for all of your hard work the new logo and website look really good.
When will the new Hep C available.
Okay.
So there are already in progress I will tell you guys I know you're being finding but.
They will be available for the annual meeting that's for sure. So no. There was some there was a nice thought put into the logo the circularity, especially right.
I think I think everyone can see.
Regardless of how you feel about climate change that there is a global shift in sentiment okay.
That's nice global shifts in sentiment or not okay people are paying attention capital is seeking solutions.
What's really nice is when you have technology, that's profitable when you have a technology that's impactful.
And you can synchronize the rate at which you decarbonize and make money with no conflict. That's what we've been working on for seven or eight months here and we have the solution now, let's say we have the solution I don't I don't want to come across the runway.
There's going to be developments that advance the yields on diesel theres going to be developments on breakthrough in advancing the yields on aviation fuel, whether it'd be working our butts off right for the next 24 months, just making it better okay more and better so.
We're not to the finish line like we're at the starting line.
And the wind starts with a profitable solution.
Can start building the solution now.
We can start.
Generating throughput with these facilities.
We're moving forward now we've cleared the GE on minimum sufficiency, they're highly profitable, okay, but we're going to continue to develop and expand how many things can do with oil.
Right. The same exact thing that's what we're talking about.
Corrado you stated in your recent letter to shareholders.
Also in the 10-K.
There are announcements coming about near term revenue.
Can you please share more information on that really is similar.
A similar question that I answered previously right we have.
A great situation with with an international company with a huge woody biomass footprint, that's going to use our exact technology right.
Not to produce.
Cellulosic sugar opportunity fuels, but to produce intermediary that's extremely profitable validates our tech.
Brings in revenue this year brings in revenue next year, which is really frankly, a nice bridge to getting our first facility online people should not expect the first facility on line to be online until 2025, okay, but you can expect frequent updates to our achievements our processes our prototypes.
You can expect demonstrations of our ability to deliver these solutions and <unk> physically demonstrate.
What we are saying we can do at at prototypes scales that prove the viability. That's what we're hustling to do right.
Brian we're hustling to show.
To quickly pass.
So as we can say that we can do it.
And we're doing it we're excited about it.
It's going to take a little bit of time, but we're going to do it and when we can do it we're going to show everybody in the same time, we are securing the first site and the same time, we're looking at for the next nine sites at the same time, we are building. The plan. Okay. The question that people will ask and I'll just preempt it is housing finance system.
Well when you see the robustness of the cash flows you finance it at the project level.
And we're all ready to directly in the <unk>.
We've already got incredibly strong feedback.
On that point.
So we will look to regionalize.
These operations and at all times for the feedstock, we know where the feedstock is thats, where the facilities are going to be sort of a secret and.
And.
That's where we'll go with that.
Excellent. So yes that was good for the near term.
As well as the financing of the pricing.
Level.
People would like to know how much capital, we would need to hit the $16 billion dollar Mark.
30, and if you could provide.
A little more clarity on how we get.
To that amount.
Just alluded to it let me yesterday the facilities the series requirement to hundreds of millions of the capital to four okay theyre not small facilities. They produced a 100 million gallons of fuel per annum, okay, and what I, just said and I want to reiterate is that we are getting interest too.
Finance.
Both equity and projects means and at the project level.
So we're going to do everything in our power right.
And we're getting great reception, so not even feeling like.
This is a lot of wood to chop here right to ensure that we minimize the dilution of load shareholder and we maximize the value I'd like to make the point all the technology resides at low our goal is to accelerate the commercialization of these technologies.
At the low level.
Comstock E P.
All of the technology Comstock. He holds all the growth prospect Comstock, Inc holds the growth.
Yeah.
And in that value.
The subsidiary is think of them as just operating cash machines, Oh, yeah by the way of Comstock owns a substantial majority of those two.
Willing to finance at that local level means mainly minority.
We'll come in as equity and debt financing and project financing.
And that's a cash machine that the cash machine that returns cash to Comstock, that's a cash machine that returns cash to the financing capital at the subs.
<unk> local Comstock gets the cash comes back to the growth that comes with existing technology and with the new technologies that will be rolling out from here that's the model.
Yeah.
With the new lines of businesses.
Do you expect to be able to receive any grants from the government payment for these new businesses.
Yes, the answer we have dedicated senior resources and quite frankly, Billy Kevin David.
I have spent a lot of time with our other senior resources Tracy too.
Identify bofa global.
Alternative sources of funds.
A list is.
I mean, the dollars are big.
And in terms of high level, we qualify across the broad spectrum. So we're rolling up our sleeves now and.
We're looking to bring in some of that and I'm sure. Some of that will be there I don't have any specifics to discuss that when we get brand.
Federal or otherwise, we will communicate them.
In addition to the 10-K being filed there was an S. Three filed today to.
Could you. Please provide some more details about that final, yes, absolutely look ever since 2012.
Always had and we always will have.
A form S. Three which is essentially a registration statement quote unquote on the shelf.
It's only RFP share responsibility to assure ensure as a public company, we have efficient access to the capital markets. The shelf is identical to the one that was there.
Three weeks ago, it's identical to the one that was there three years ago, it's identical to the one that was 10 years ago.
Having said that it doesn't.
It doesn't.
Have any plans.
To use the shelf, but we will as we need it to ensure our liquidity and ensure stability we're very excited.
About the valuation.
Potential of this company.
If youre talking about $16 billion in revenue, which I'm going to say is a safe number we're talking about $16 billion in revenue. Okay. When you start thinking about multiples of that number. That's when you should start thinking about our valuation will there be more shares and $60 7 million outstanding there will be okay.
But but.
But in past calls in relative comparison to the value that's going to be created so.
We're sitting in the best possible situation right now with a very tight shareholder base with 67 million shares outstanding with a clean capital structure.
Find anywhere for growth of that value.
And look it's not a one man show here.
We've got five senior managers that work and are capable of being Ceos.
This is a big endeavor.
And we are dedicating the serious resources and so that's from.
The shelf.
Okay.
Moving back to <unk> can you speak about the feedstock that you have there specifically.
The relationship that you have with Aqua metals.
Two questions right. So in terms of feedstock.
We've been very happy today.
With.
Sort of the realm of <unk>.
Seedstock work that we've done and but it's been limited in scope.
Pension, Italy to receiving as much of a variety of different feedstock.
As we could for development for research and development. If you want to think of it that way our prototype 610 per day prototypes.
Mall and what it's designed to do so not only produce the purest black masses.
And by the way our prototype is nearly identical to the full scale system.
Not only produce pure black masses with evaluate this.
Variety of feedstocks that come in that have nickel manganese cobalt that have lithium carbonate.
There are at least five major types of these <unk>.
And plus all the different types that come from all the other devices. So we're not only able to produce and sell black mass with the system, but we're going to use it primarily for putting through the most diverse array of feedstocks that we can get our hands and to that end, we're getting a lot of diverse array of feedstocks.
Course, we don't want large quantity.
The diverse way of feedstock, we want very small quantities to do all this testing that's what we're doing okay. Secondly, we have secured a storage site.
And if you if you look at the other companies appear in northern Nevada that are.
Delving into lithium ion battery recycling everyone has done the same thing I think we've done our best based secure the site for processing in our case, we have a state of the art 137000 square foot battery metal recycling facility ready to go what is ready to go you just as an update all of this facility was sterilized.
Waiting for the former owner Aqua metals, they pay for it they took the lead out. Okay. Secondly, we see fully restored the refinery and the infrastructure Bill done three years ago.
Then secondly, you have to have a separate facility for storage, we secured a 200 acre site in Mannheim, Nevada in immediate proximity to highway 50, which is immediate proximity to our facility in Palo Reno Industrial Center.
And that location will now undergo a relatively shorter permitting process that will allow storage or batteries and so now we are engaging in counterparties to talk about.
And secure larger quantities of the right types of the REIT feedstocks to feed our facility later this year. So we're happy with the progress it's probably the area that's going to take on priority emphasis now that the other prerequisite on place now that we can receive any type of batteries.
Anybody in testing, that's one thing and we can start to receive larger quantities of batteries and storage I can't do that today just to be clear right, but we secured the site. We're commencing the engineering, we will get the permitting done that's the three or four months process. Okay timing is perfect for what we're trying to do so it is all with synchrony.
Yes.
Corrado that concludes our question and.
Answer section I would like to thank everyone who.
Tended the webcast today and submitted their questions and I would like to turn that back to our executive chairman.
CEO incredibly Gaspar for his closing remarks, Sam I want my only closing remark is that.
We.
Really worked hard.
Higher liquidity.
Teams internally to get.
We were at in 10-K that most accurately most completely reflects our company today.
<unk> put out a website admittedly we anticipate few pages that accurately reflects our business today and set ourselves up so that as we now engage the market meaning.
Battery providers meeting off takers, meaning investors when they go and look at crew as Comstock team.
Base. They can read in the 10-K, they can read on the website. They can read it in the shareholder letter they can see consistency of purpose.
And just please if you can in person we'd love to see you on May 26 at the annual meeting.
And certainly we'll be communicating with you between now and then.
Our first quarter.
<unk>.
And the results that we've talked about thank you all for your interest in consideration.
Okay.
They're recording has stopped.