Comstock Inc. Q1 2023 Earnings Call

Ladies and gentlemen, welcome to Comstock <unk> first quarter 2023 business results webcast. This is will amaze with RV milestone for those of you newer to the story come stack Comstock commercializing innovative technologies that contribute to global decarbonization through three primary operating units Comstock fuels, which converts.

<unk> into net zero renewable fuels, Comstock metals, which recycles E waste and critical metals, and Comstock mining, which holds significant gold and silver resources in target rich districts in Nevada, and plans to dramatically expand reserves through generative AI enabled mineral discovery com.

<unk> shares are listed on the New York stock exchange under the symbol L. O D E.

Joining us today is the Companys executive chairman and CEO Corrado to gas spreads and C. L. Williams Mccarthy to discuss first quarter results and update our two current operations and will also be answering questions at the end of the presentation and if you're interested in asking a question are logged into the zoom app or web platform.

You can submit your questions directly to us in the Q&A module.

Please note that this presentation is being recorded today may three 2023 and will soon be made available on the company's website at Comstock Dot I N C. That's comstock that I N C. Today's call may contain forward looking statements that are subject to risks and uncertainties that may cause actual results performance or developments to differ.

Materially from those contained in the statements that are not guarantees of future performance of the company.

No assurance can be given that any of these events anticipated by the forward looking statements will occur or if they do occur what benefits. The company will obtain from them also some risks and uncertainties may be out of control of the company Comstock has a full disclaimer contained in their presentation.

Lastly, our BMG is not a registered investment advisor or broker dealer for more information. Please visit our be milestone dotcom.

Now, it's my pleasure to introduce Mr. Corrado to get spares and Mr. William Mccarthy gentlemen, the stage is yours.

Thanks will and good afternoon, everyone and welcome to Comstock is first quarter 2023 report as well just mentioned you have both myself and billing Mccarthy our CFO on the call today for this business update and the Q&A that will be following the call.

Our business update will include covering the information from today's press release, and our recently filed quarterly report on Form 10-Q.

We actually received some excellent feedback on the quality of our last call and our annual shareholder letter.

Very happy to formally announce as you just heard that we've engaged RV milestone group or our BMG to support our Investor Relations effort and welcome will made in the rest of the <unk> team to Comstock.

As you just heard well and his team are now facilitating these calls and they will also be enhancing our investor communication efforts.

Directly interfacing with you and soliciting more and better feedback so that we can both improve our communications and our overall effectiveness.

They'll also be working with us to enhance and expand our overall shareholder base welcome willing. Thank you RMB G.

Let me start today with the corporate side of the update as you saw last week, we closed on the 2500 approved facility and we're substantially complete with the sale of that facility to American Battery Corp, with $18 million in cash already received $12 million of which was used just last week to buy the building and another.

8 million loss on its way $3 million of which that is scheduled for next week and the rest coming in as we liquidate the 10 million <unk> shares that we have in our possession.

We expect all of this to be completed over the next few months, netting us well over $14 million and net cash proceeds were also on track now to.

To exceed our overall $30 million target for this year's asset sales.

Let me also acknowledge that we have not sold any additional common stock shares since February and if these asset sales that avoids us having to sell stock at these still very low levels.

Outstanding share count today is the saying well actually it's a little lower than when we reported on March 16th.

And we all appreciate and Keven see how meaningful this fact pattern as to our share performance.

Paying with the asset sales, we are now seeing a significantly greater level of interest in our silver springs assets, where we own land and water rights and have a meaningful investment in the opportunity Zone Fund <unk>.

Interest from potential buyers of these properties has actually skyrocketed since Tesla and Redwood industries recently announced.

With multibillion dollar expansions in immediate proximity of Silver Springs, and Microsoft Corporation purchased land directly in Silver Springs.

For those of you that didn't hear the specifics Tesla not only building an entirely new battery plant next to the existing Giga factory, but they've also announced that they are manufacturing all of their semi trucks here as well.

This is all just minutes from our properties in silver spring.

We now see a much higher probability for closing multiple silver springs transactions this year and that positions us again to meet and possibly exceed our 2023 objective of $30 million in cash proceeds.

So our balance sheet has and continues to strengthen and as we move faster and better ahead with all of our business says as.

As I mentioned in our last update 2021, and 2022, we're about business integration technology development and technology readiness.

We discussed that readiness for all of our businesses on our last call, including the notion of technology readiness levels or <unk>.

We're at currently at Tara I'll fix for fuels and we are very excited by the major advances we've made in fuels that we've made and Jen, Matt and I will discuss some of that more later.

We are also positioning and advanced our metals and mining businesses and all the while lined up Newman critical strategic technical partners and prospective customers.

Our estimate just are known and ready technologies could easily justify more than a tenfold increase in our stock price based on the current values of comparable companies I think we're finally, just now starting to see some of that traction.

Unlocking that full value comes down to successfully commercializing and using our technologies to generate revenue and earnings while successfully marketing these technologies and the value they bring to our shareholders.

We're committed to this end we are even more emboldened by the growing number of current prospects in the real market momentum our businesses are gaining.

We also recently engaged a professional marketing firm in addition to <unk>.

In that context, we are now preparing presentations for each of our businesses and we are looking forward to sharing all of this at our June upload twenty-three event.

This event will showcase comp stocks overall system each of our businesses their leadership teams and doing all in a way that will convey a deeper better understanding of us and our value propositions and greatly expand on the information that we released to date.

Look for more information and registration details for upload 'twenty three to be released in the upcoming weeks.

Let me summarize for each business, where we currently are.

What our next key 2023 objectives are and our efforts towards generating new revenues burst with Comstock fuels is truly remarkable that most renewable fuels draw from the same feedstock pool typically vegetable oils.

But this total supply of oils can only meet a small fraction of the rapidly growing demand our technologies unlock this major bottleneck by converting abundant, but underutilized woody biomass into bio intermediates like cellulosic sugar and by OEM.

Our refining into renewable fuels.

Our team recently demonstrated commercial readiness with unprecedented yields of 100 gallons of fuel.

Her dry tons of feedstock on a gasoline gallon equivalent basis.

This has caught the attention of a large number of significant industry players and we are currently engaged with these prospects. We look forward to the execution of one or more license agreements with these more than technologically sophisticated customers. This year.

One of these licenses could create more than 20 years of recur bring royalty revenue on top of material upfront engineering fees.

Let's move to Comstock metals here the world seems highly focused on electrification to reduce reliance on fossil fuels, including of course, the growing electric vehicle fleet and their lithium ion batteries, we're positioned for this market, but it's still a ways off we also see how much near term opportunity from the growing number of <unk>.

Firing photovoltaics systems coming out of these large solar fields across the country.

And frankly, especially here in Nevada, Arizona and other parts of the Western territories. These materials are now going into landfills and creating a major hazards to the environment.

<unk>, our new President for metals has hit the ground running and we have a better plan for deploying our redesigned pilot plant that will commence crushing conditioning extracting and recycling of these end of life solar panels first we selected the new site and we have commenced pre permitting activities. We are also coordinated the relocation of our existing system.

Here in Nevada, We believe this modified model a safer and faster we will receive tipping fees for these materials that is upfront revenues and then we will efficiently process them for profit.

<unk> already directly engaging.

<unk> waste solar panel materials or processing, and we now see a clear and faster path to achieving positive cash flow in 2024.

Securing these revenue generating supply commitments as the key objective for 2023, as well as advancing our permitting or processing.

Now, let me move to Comstock mining not surprising to us gold has strongly across the $2000 Mark to 2030 last I checked and most analysts see this positive upward trend for both gold and silver continuing.

We recently enhanced our mining platform with <unk> hundred technical reports.

Confirming measured and indicated resources of over 600000 ounces of gold and nearly 6 million ounces of silver.

Plus additional inferred resources of an additional 300000 ounces of gold and over two 5 million ounces of silver or.

Our mining claims cover 12 square miles of property, including six and a half miles with continuous mineralized strike yet balances I just mentioned.

<unk> only a very small fraction.

Less than 10% of our overall minerals overall mineralized properties.

We do believe that our mining properties collectively contain billions of dollars of potentially recoverable metals and our plan is to unlock that value intelligently.

We will use human intelligence of course, but also artificial intelligence AI. If you will how are we going to do that.

Well first by combining our massive amount of historical and current geological data with additional hyper spectral overall imaging data and powerful predictive AI driven analysis that will expand on and validate geologic trends in our district and enable new mineral discoveries and mineral expansions ultimately.

Just for a fraction of the cost of conventional exploration.

Look conventional exploration drilling and mining is very risky expensive and frankly insufficient to achieve our goals and the real potential that we see in this district.

Believe me I know I've lived it for 13 years and many of you have lived it with me, but we own one of the largest mineral districts and one of the largest best mineral jurisdictions in the world right here in Nevada.

Genmab hyper spectral imager and satellite is already built and ready for operation. Our satellite is targeting its launch on the Spacex Falcon later this year.

Once all government improvements are secured and the space frees up it represents one of the most powerful hyper spectral systems to be launched into space and will enable us to extract relevant chemical and physical information for both high precision mineral prospecting and site specific recovery.

This is what interested us in genmab to begin with and after two years of the development we're almost there.

Our 2023 efforts here will include launching a satellite image or enhancing our data integrating our analysis and ultimately our ability to refine and better pinpoint our targets as we expand and integrate gen minutes AI into our predictive analysis.

We can then ground truth, those predictions with drill rigs and proven minerals.

This will meaningfully advance us towards the experience chin and full economic feasibility of our existing Comstock resources, but it will simultaneously create global capability for the effectiveness and efficiency of critical mineral discovery and extraction again, starting forced here on the Comstock.

And then the rest of the world.

Let me expand further on Genmab as their Agi for physics goes way way beyond the mineral discover applications that I just discussed for mining.

The market is now very much aware of general artificial intelligence or Agi. If you will with daily news on how these large language models are already impacting and affecting businesses.

Jen Matt was pioneering this three and four years ago, and we have Comstock also recognize this acceleration and disruptive technology over two years ago what.

What I would like everyone to understand is that Jeremy is building and commercializing an artificial general intelligence for physics.

As compared to these other language based models are AI is science based.

This AI is physics based not language based.

<unk> has already simulated critical properties of known materials. This is statistics at the atomic and quantum mechanical level.

This was done during calibration testing late last year remarkably Jenn Mann today is rapidly evolving its ability to stimulate new materials with predictable desired characteristics <unk> recently announced the customer showcase planned for later next month since its AI models can now be deployed for commercial use.

In 2023, Jim Matt will elevate new materials simulation capabilities to commercial readiness.

Again that means TRL six by deploying the system with early adopting customers for real world applications.

Our investment in Genmab, most certainly stands alone, whereas I believe it's becoming more and more apparent that it also double dips as a crucial component.

Component of our own ongoing innovation strategies and business developments.

We are focused on using this entire platform.

Metals.

X based AI and Miami to.

Break new ground and generate exponential growth in value.

Here at Comstock, we operate as one system.

With each business, having fully dedicated leaders teams and plans for significant growth.

On June 28th upload 2023.

Enables us to showcase this first to you and then as we proceed on a year long marketing campaign for all of our stakeholders. This is designed to expand awareness of our technologies and services and show what we will deliver to our customers. It's also designed to inform our shareholders.

Of our existing and potential value, we believe the value creation and recognizing here will be enormous.

We're also looking forward to our AGM on may 25th.

This will be a virtual and downsized mainly due to upload 'twenty three.

And we ask you all to vote your proxies online as soon as practical if you need any assistance in voting the proxies. Please reach out to Zach Spencer, our corporate Secretary, who will for sure assist you.

My last point of emphasis before we take questions is that 2021 and 2022, we're about technology developments and readiness. Our system is built on the <unk>.

Or RFP for our IP.

123, however is all about commercializing that IP.

Let's stop there and turn into questions Bill and I will both be taking questions. Today can you give us our first question.

Sure. Thanks, Corrado very informative presentations.

Its corrado mentioned, where youll now moving into the Q&A portion of the call as a reminder, if you'd like to submit a question you can do so directly into Q&A module here on your zoom App.

<unk> had several questions submitted prior to the call. So let's get started the first question is regarding asset sale.

The question the Investor asked when will the sale of the 2500, Peru B will be fully closed.

Thank you for that question.

So look the transaction ended up.

Closing out a number of steps in phases. If you will I believe for all risk purposes.

We're substantially complete today, we've received $18 million today as I mentioned, that's a net of 6 million cash into our treasury since we used $12 million of that to close on the building last week, we will get the remaining eight plus million over a continuum starting next week cash will be flowing in essentially.

Next week, and then as we responsibly monetize.

The $10 million <unk> shares in our possession, so it'll be methodical it'll be wrapped up in an all be closed.

Fully within just a few months.

Great. Thanks next question can you provide more color on the additional asset sales and the timing of them.

Sure.

Primary remaining additional asset sales really represents our non mining properties and water rights that are in silver Springs.

In the latter half of 'twenty two there was a macro pause in the real estate activity for most of what I would say the larger real estate investors as the fed started moving interest rates up hard.

And that even included a pause, but by one of our major potential investors.

Over just in the last few months with Tesla Redwood and Microsoft announcing these multibillion dollar investments in our immediate vicinity. The activity has picked up dramatically.

We can't predict the exact timing I don't think but but we have never seen this much serious activity looking to invest in northern Nevada real estate and specifically silver Springs.

<unk> sales alone will allow us.

To achieve our targeted asset sales. We also have other existing equity investments in both the opportunity fund. In addition to the assets that we're holding in silver Springs and in Green line, both of which are on our books that only a fraction of their current market values, we could exceed easily.

Our targets, if we sold some or all of these additional investments.

Great. Thanks Corrado.

Next question comes in so it was a couple of questions on <unk> and this one specifically can you provide more information or insight into the technology readiness levels that you've discussed last quarter.

I think this is a good one for Billy Billy could you take that one.

<unk> I want to talk about technology readiness levels.

The technology readiness scale, we use is really critical to everything we're doing today. It gives us the ability to assess the risk in a technology development project as we move to commercialization.

Not a new idea.

First conceived by NASA and the 19 sixties during the Apollo programs and it was evolve then originally into a seven level scale in the 19 seventies and then the nine level scale in the nineties.

And what we use today is a version of that that is widely used across government and industry today.

Tailored specifically to what we're doing.

But the point here is in technology development as you move up the curve.

<unk> three is a proof of concept in the laboratory.

And relatively easy to attain and we look at the history of innovation here, that's what our universities have largely been doing and Thats, what commercial entities do in their basic research function.

Commercialization going to 7% to nine.

It is also relatively predictable.

Middle and known widely as the value of that.

Taking that technology from a proof of concept to commercial state is difficult and requires real diligence and discipline in how you doing.

Implementing the scale at Comstock and aligning all of our efforts around that.

Contributes value in a number of different ways to us.

Accurately estimating the cost and timeline to get to commercialization and quantifying the risks in a repeatable and comparable way is certainly number one.

But the opportunity that comes out of this is that we see certain technologies that look riskier difficult, but when applying these are projected measures to them can often come in less difficult less costly than they would appear outside.

And this is true for technology that we're developing here stuff, we've talked about and stuff. We have an early stage R&D for the future as well as a third parties that we integrate with <unk>.

To get to a solution for our customers, especially in fuels. We're building tailored solutions to meet specific customer needs that involve our core technology integrated with a lot of third parties. So overall, we have a great ability using this process to us.

Actively SaaS, where we stand for ourselves.

It gives our perspective customers the same ability to effectively and efficiently evaluate the offerings that we're showing them.

Okay. Good thanks.

We've had a couple of questions coming in here on the capital structure. The first one here is are you issuing additional shares.

Thanks will.

I can say very happily.

Haven't sold any shares.

February and the only shares that were actually issued were associated with our convertible debt that we issued last year, we had $3.

$5 million of this debt outstanding at December 31 of last year and we currently have only 185 million shares outstanding today, there was sort of an unusual circumstance and that that conversion of that resulted in the issuance of about $4 5 million shares during the first quarter.

And when we issue those shares upon conversion.

We are required to estimate the number of shares initially and then do an.

An adjustment subsequently while in early April .

We had an adjustment for an excess issuance of over 327000 shares which was returned in April which resulted in our outstanding shares today actually being lower than our outstanding shares that were issued.

Sorry outstanding at the end.

Of March so again, we haven't sold any shares we don't.

<unk> tend to sell any shares.

And we're just seeing some issuances associated with the prior convertible debt.

Great well. The next question is kind of the same question in reverse so are you considering buying back any stock.

Thanks for that question also well no no. We're not really let me first restate what I. Just said is we're not issuing new shares but also that we're sitting here today with a tremendous growth portfolio I mean think about it this way between fuel.

And Jen Matt alone.

We have huge growth profiles with huge existing markets today in metals, we have a huge growth markets in front of us and in mining with what we're fixing to do.

In conjunction with Jen Matt in terms of mineral discovery.

We have literally the world is the oyster for this technology. So as we sit here we have for exponential growth stories that we expect to deliver incredible returns on.

Stock buybacks.

Are typically more for mature companies with excess cash producing businesses.

That wouldn't normally have these kind of opportunities for growth or.

Our capital allocation or they simply just have more cash than they can productively deploy that is really not our case.

Today, and we believe the market is starting to appreciate this and the market is starting to see the value and we're going to focus on funding and delivering objectives of those businesses that will drive the highest depreciation and the highest recognition of that value in our share price what the current app.

Net sales have had a meaningful impact on avoiding dilution no question, especially at these levels. We believe the opportunities. We have created that are immediately in front of us and all of our business will generate much more superior turns and we expect to see those returns from delivering our objectives and again.

Not from buying back our stock.

Similar question, what will you be redeeming any debt early.

That's a good question I mean, most most of our remaining debt is tied to our remaining asset sales and so it will effectively and automatically be paid down as we consummate those transactions I.

I guess, depending on the timing of those asset sales, we could we would redeem whatever amount of of that remaining convertible debt outstanding and I guess in that context.

Would be not only paying off debt we would be.

Ending that stock from getting into the market effectively buying it back yes.

Great now and the next question is more operationally focused.

Investor would like to know whether you have the first commercial people's contract.

Alright, Great question, I think maybe both Billy and I will take a shot at this one let me start by saying the short answer is that we will be selling our first commercial fuel solution. This year.

But but a better answer for me to provide some color on that process.

We engineer and tailor, our technology solutions to our customers and their specific needs and circumstances I'd like to both of US is to give you a little bit more insight about that when I think about the handful of large customers that we're already engaged with it is typically started with their business development teams trying to solve a problem.

In this case, mostly unblock their feedstock constraint.

Then we get through them and their internal engineers and technology folks show up and start poking and testing us for the fit.

Of our solution with their problem.

And then.

Once we get through that we evolve to specific requests for proposals typically by third party engineering firms that do an independent assessment of our technology qualifications and readiness.

And it's actually wonderful to tell you all that we are engaged.

That more advanced level.

With at least two major companies already and more on the way.

After we close our for sale there are several phases of these projects before our customers actually deploy our engineered solution and we start earning a royalty piece. However, initial phases entail a significant amount of revenue generating engineering for things like pre feasibility.

Feasibility final Engineering's all of which we provide.

While earning millions of dollars in engineering services and.

In support.

These are often structured as upfront fees that will bring immediate revenues for us, but let me just let me pause there ability why don't you provide some further insight to the near term objectives relating to fuels that support.

These kind of commercialization efforts.

Yes definitely.

All of our near term objectives relate directly to the commercialization of the fuel technology ball commercialization today and also some things for commercialization in the future.

But.

What you just said Toronto about the processes we're in today.

Jack There number one is to make get through all of these processes at the highest possible quality.

And so far we've had great success, we're making progress and we've had no major roadblocks along the way.

Second to that we frontloaded as much of the work that needs to be done to get approval post the first sale as we move towards commercialization.

The renewable fuel programs that provide incentives for renewable fuels our.

Primarily the renewable fuel standard administered by the EPA.

And in California, they have a low carbon fuel program as well that provides incentives for fuels.

Every production facility needs to be individually qualified and the pathway approved for every project that gets deployed what.

What we're doing today is really focused on getting all the modeling and all the documentation done let's not site specific so we can accelerate that process as much as possible with our first customers.

Beyond that we're continuing to advance the technology readiness of our system, including deploying an updated.

We have our pilot running in Wisconsin.

We're continuing to upgrade it and getting it to operate continuously.

We have over 4000 hours of run time on the system in Wisconsin.

Stature, but we're going to go a step further and we're going to get that system to demonstrate technology readiness level seven in our facility.

And further to that the fourth objective is.

Just to take a couple of key pieces of downstream third party technology that provides other functions for the solution and get them fully qualified as well we want to expand the capabilities of what we can do and what our bio intermediates can do as they get transformed into fuel.

It's outstanding.

You can imagine that we're not only engaged.

With a large number of customers theyre not only visiting our facility that Billy just described with great reception and great feedback where not only advancing too.

The ramp project.

Oh, Yeah, that's for belly.

So let me just say we were extremely excited when we were selected by the department of energy for this project we've been.

Diligently at work getting everything a line. So we have five core partners on this project.

Marathon petroleum <unk> emergency fuel technology, and the University of Nevada Reno.

And let me just say the University of Nevada, Reno is a critical partner here that is really transformed what we thought we could do with this project, we're going to be we're building a pilot system pre pilot system.

For a particular pathway in this project to demonstrate its effectiveness and where are we doing all of that work at the University of Nevada here in Reno.

Using a lot of resources that the universe being allowing us to know do this project with zero impact on any of our commercialization activities that we've been talking about so that's exciting but we're currently fully engaged with the department of energy and with all these projects, finishing the documentation the scoping and ultimately the award agreement.

For this project.

We have a great team at the D O D who's covering the project for us.

Really do appreciate those guys with all of these new grant programs that have come out of D. C. They are well overwhelmed and understaffed for what they need to do so it's going a little bit slower to get to the final award than.

Traditionally isn't the case, but we seem to be on the current timeline that everyone's doing phase one of that project will be very similar to what Corrado just talked about from the commercial process. The first phase will be the department of energy coming in with their third party engineering firm to do qualification an assessment of what we have is gonna be.

Three month phase of the project and we're looking forward to that kicking off hopefully in the next few months, but more to come as we hear from the deal you in the process proceeds.

Great. Thanks for like.

The next question is comes in on Comstock metals. This investors ask it with the new emphasis on photovoltaics does that mean, you are are banding lithium ion batteries or other types of batteries.

Yeah, I'll take that no we're absolutely not abandoning batteries on the contrary, bringing fortunate Idaho into this business allows us to take our existing tech and combine it with his decade agent experienced and technology and actually enabling us to advance in really efficiently process uhm.

<unk> batteries, but a much broader range of materials profitably our technology is particularly effective.

Eliminating the most difficult contaminants that we see the <unk> currently struggling.

Juggling with including these contaminants.

Since within battery cells, we have that capability, we have that technology. Today. However, we made the strategic decision now to start with solar panels, because they will bring more immediate volumes revenue and profitability, while the nascent North American battery supply chain gains traction.

And and and those recycled materials that ultimately we produce from those batteries can also be used here better supporting the U S needs. The tech that we use though for all of these materials is essentially the same.

<unk>, maybe you can provide a little better summary, two of what our near term objectives are in this business as well.

Yeah. So near term here is again, all about commercial demonstration as well. So we've selected a site here in northern Nevada.

We're actively working to get that site ready to get the utility another connections, we need and working on the pre permanent and getting ready to submit those permits soon at the same time, we've got our equipment and our pilot system from Wisconsin on its way here, We've got engineering work for that and you know securing.

<unk> the supply agreements.

Market for photovoltaics.

The supply side is where the revenue comes from.

And it's a very important component of the business. So near term, we're looking to get the site up and running we're looking to get the supply agreements in place and set the date or when that facility is going to be operational.

Excellent great. Thanks now this next question moves over to the metal with <unk>.

Reminding segment actually.

Does it this question the investors asking with gold prices rising what are your plans to realize the value of these assets will you be drilling in 2023.

Alright, Yeah, a couple of questions. There. Thank you for that I mean, we've actually been discussing this quite a bit internally and it's been at the forefront of our minds and you know for sure. Our mining teams minds [laughter], we are absolutely committed to advancing the existing resources and upgrading them into reserves, we have a clear line of sight.

And how we want to do that with the first step being the complete prefeasibility for both Lucerne in Dayton, but we continue to be data centric and how we do this in a much more we've always been sophisticated with.

With our geologic data, but we plan to be much more data centric and how we do this uhm and and really.

From our view right the more data that we have and the more data that we can corroborate and <unk> and and integrate N and analyze before we actually drill the better.

We're not we don't we're not gonna drill with Ah suboptimal data. Our team has completed a tremendous amount of this analysis already we have a remarkable level of precision with the cross sections that level of plans and the integration of that geologic data <unk>.

Into our existing model really it's it's it's fantastic, but Jim Nance abilities, and they're expanding team they're literally on the verge of hiring a geophysicist as we speak will greatly enhance how we can both.

Provide the data.

And analyze the data that we already have coupled with the new data that will come from Genmab sensing platform.

All in all the combination Navarre highly talented team get better AI tools and the ground true thing that proves that these enhanced predictions actually result in increased certainty of minerals is what is what we're really all about so.

Uhm as we think about these integrated mind plans, we think about integrating technology into those plans.

All of that results in increased certainty.

Of our mineral discovery targets.

Mendis Lea reduced cost of our traditional drove programs.

And increased and better categorization of our resources ultimately towards them being mostly proven and probable reserves. So.

Well I think we're all excited about the satellite launch the satellite launches a catalyst.

Not the only catalyst the data and analytics will drive everything that we do.

Well he's been involved in a lot of the strategic planning you know some associated not only with individually the mining business, but also with Jen man's business, but maybe Billy from that context, you can talk about our near term objectives for integrating genmab technology into our mining plans.

Yeah absolutely.

So we're kicking off.

And the next 60 days the phase one development of this you know digital model with Jenna.

Ah Scotto mentioned.

This is all using existing data we have so this'll include all the drilling an assay data in our database. The magnetometer surveys we've done in the past both Ariel and ground.

As well as the really robust historical data you know from the the.

Century, plus of expiration on a comstock so getting this initial model built is gonna be our first priority, we're hoping to get that done this year.

Well, that's gonna give us some initial insights, but what is really going to do is just kind of position us to be ready to take in the orbital hyper spectral data once the satellite does launch and we have the additional sensor data.

But that doesn't mean, we're not gonna get insights from it as we start and this is very much underway today.

Good <unk> and staying on that topic several.

Several questions that came in related to the large is there any timing on that.

Yeah. So so there's two factors that <unk>.

Strainer control the launch date, and let's just talk about what they are so the first of the regulatory approvals Jan not supplied for received conditional permit approval from Noah.

Permits any satellite that transmits data back to Earth.

And they're working through the final requirements to receive launch approval there.

The second.

Factor is the logistics of it.

The advent of this commercial space industry that enables accompany like us to launch a satellite a microsatellite in this case a cube sad is that we didn't <unk>.

Rent the rocket and pay for the fuel.

Where the ride along with somebody else. So there is a certain amount of uncertainty there.

That well once we have lots of approval will get scheduled but there's always some variation in that as we wait for our window that we can get on board.

We don't we don't see any of this happening before the end of the third quarter just to be clear.

But you know launch approval.

Soon after that timeline and and just waiting for our turn to get on board.

Very good Okay, and then you were pressing up against time here, but there is another question here a mining. So it was would you still sell the mighty assets.

Alright, I'll take that one.

I think it's it's consistent to say that we are and have an open.

Monetizing the mining assets, if it makes sense for our shareholders and and with the valuation.

These higher gold prices in there and there isn't much higher today, there's been a lot of interest.

But as we advance the assets Uhm as we continue to do the things that really just describe they also get more and more valuable. So we evaluate each and every single opportunity that comes our way include.

Including opportunities to potentially lease or property for certain parts of our property for revenues, including with and ultimately royalties, we've listen to opportunities about outright sales and any other other types Adventures. However, you know with our past <unk>.

Experiences we have prioritized the two very critical fact, that's right whoever whatever counterparty. We're dealing with you know has to have especially if there's some form of ongoing relationship has to have solid management, certainly salad C E O.

Leading the charge and and they have to be credit worthy. Those are those are critical prerequisites of course. In addition to what the economic terms or valuations are that are being discussed. So yes, we would absolutely monetizing assets you know in.

Potential series of ways as long as it benefits us, but I want to emphasize that we would always do it in a manner that wouldn't conflict with the enormous opportunity that Gen. Mat now presents to us for my <unk>.

Great. Thanks, we are pressing up against types of Corrado was wondering if you could just provide some closing remarks and perhaps some milestones that investors should have on their radar.

Sure just in closing during the first quarter, we completed the purchase and sale agreement of a major asset sale. This effectively stopped ourselves a stock and funded our growth businesses, but fuels, we achieved industry meeting yields of 100 gallons of fuel per guy kind of woody biomass gasoline gallon equivalent basis.

And then build a major working coalition of industry and technology leaders like marathon petroleum <unk>, among others, who are now collaborating with.

You are now collaborating with not only on a recently announced department of energy Grant, but I'll still on other commercialization opportunities for medals will deploying a crushing and separating system for electronic devices, starting with solar panels and ultimately recycling critical minerals for all batteries, we believe our system.

<unk> and efficiently and Emily eliminate the most difficult contaminants and all of these electronic devices, but the photovoltaic market is here and now and with an immediate revenue stream from tipping fees are mining assets already have nearly 1 million ounces of gold in over 8 million ounces of silver in.

All resource categories, and our generative AI will be deployed for mining this year first with our existing data.

That will be enhanced later this year, when we put our own powerful hyper spectral immature and advanced data analytics into production that will expand and validate our geologic trends in our district and enable new mineral discoveries in mineral expansions ultimately for just a fraction of the cost of conventional expiration.

Jamie at school itself. This developing commercialize an artificial general intelligence for physics and enables the sensing simulation in engineering of matter.

That sinks in please do register and get a deeper dive on all of these activities by attending our upload twenty-three event in June 28th and please. Please please put your proxies for a G. M. On may 25th. Thank you all for your interest and we really do look forward to seeing you in the upcoming months.

Of those gentlemen, and thanks, everyone for joining us today, and we know we did get a lot of questions that we weren't able to get to so please send in any questions that you may have to con Comstock at R. B milestone dot com again, that's common stock and all the milestones dot com.

Today's webinar recording will soon be made available on <unk> website as well. So thanks again for everybody and you are now free to disconnect.

Thank you.