Q1 2024 Comstock Inc Earnings Call

Unknown Executive: Our Solar Panel Recycling Business, including our view of the markets, operations, tactics, and, importantly, provides real guidance on the robust amount of cash flow that we now expect metals to generate in just a few years. After that, we'll turn to questions.

Unknown Executive: Okay, let me start with the corporate update, again focusing on our strategic investments and how their own progress positively impacts both us and their own valuation, before I then turn to our business. From a corporate perspective, financially, our first quarter was very stable, with spending in line with plan and prior periods, although the mix reflects a higher allocation to investments in R&D and particularly investments in our technology partners. Our commitment to higher R&D investments like Renfuel, Genmat, and now certain others is all based directly on specific opportunities that we have identified and now secured that further extend our leadership in this massive energy transition. The investments have also been structured such that we can experience returns beyond just the direct impact that they may have on our businesses. Renfield's a great example.

Unknown Executive: We have now executed both an exclusive license for their technology in the Americas and, just last week, completed the investment agreement with Brent Fuel, effectively combining the power of our IP portfolio with theirs and bringing this world-class technology and team tightly into our innovation network. This investment is senior secured. It was safely and intelligently structured to ensure our efficient access to Renfield's critical IP. We've already physically deployed their proprietary esterification process to refine our biolume oil at our Wisconsin facility.

Our operating solar panel recycling business, including our view of the markets operations tactics, and importantly provide real guidance on the robust cash flow that we now expect metals to generate and just a few years.

After that we will turn to questions. Okay. Let me start with the corporate update again, focusing on our strategic investments and how their own progress positively impacts both us and their own valuations before I, then turn to our businesses.

Unknown Executive: And we're now producing our own samples for our own customers to test and ultimately use in their refineries for direct blending with their existing vegetable oil feedstock. Renfrew's technology is incredibly complementary to, and has already positively impacted, our commercialization activity. However, we haven't stopped there, nor can we. In fact, you'll see in our disclosure that we've made and are making additional investments into new breakthrough technologies with new development partners that can dramatically advance the efficacy of our solution. You might be wondering to what end.

From a corporate perspective financially our first quarter itself was very stable with spending in line with plan and prior periods. Although the mix reflects a higher allocation to investments in R&D and particularly investments in our technology partners.

Our commitment to higher R&D investments like Ren fuel Jen, Matt and now certain others are all based directly on specific opportunities that we have identified and now secured that further extend our leadership in this massive energy transition.

The investments we're also structured such that we can experience returns beyond just the direct impact that they may have on our businesses.

Unknown Executive: Well, our ultimate longer-term goal, and frankly, the goal of the whole renewable fuel industry, is and should be, what we internally refer to as the Holy Grail, which means to us achieving cost parity with petroleum. This notion was unrealistic just a few years ago, but with the advancement in yields and costs that we've already established and the new pathways that we have now identified. We believe we have a line of sight on breakthroughs for further increasing our fuel yields and further reducing our operating costs, all towards this ultimate objective of achieving cost parity with petroleum. I know and respect how huge of a statement this is.

<unk> is a great example.

We have now executed both an exclusive license for their technology in the Americas and just last week completed the investment agreement with branded fuel effectively combining the power of our IP portfolio with theirs and bringing this world class technology and team tightly into our innovation network.

This investment is senior secured.

It was safely and intelligently structured to ensure our efficient access to Ren fuels critical IP.

We've already physically deployed red fuels proprietary S terrific esterification process to refine our by OEM oil at our Wisconsin facility and we are now producing our own samples for our own customers to test and ultimately use in their refineries for direct.

Unknown Executive: And we're tempering our excitement internally because there is still real work to do. However, our leading and now expanding IP, our pioneering innovation team, and our expanding development network have brought this objective closer and into much clearer sight for us. We'll have more to say on this and specific developments as they occur, but I can assure you these new allocations have been extremely diligent and support our biggest goals in this energy transition.

Lending with their existing vegetable oil stocks.

<unk> technology is incredibly complementary with ours and has already positively impacted our commercialization activities.

We haven't stopped there nor can we.

In fact, youre going to see in our disclosures that we've made and are making additional investments into new breakthrough technologies with new development partners that can dramatically advance the efficacy of our solutions.

Unknown Executive: Our existing solutions are already changing the renewable fuel game, but to sustain and grow our technological leadership, our strategy must ensure that achieving our goal actually wins the day. And that is what these innovations are designed and intended to do.

You might be wondering to what add well our ultimate longer term goal and frankly the goal of the whole renewable fuel industry.

Unknown Executive: Let me move over to GenMAT because our investment in GenMAT is motivated by the same goal, accelerating these commercializations of these energy-enabling breakthroughs. I'm thrilled to announce that we have realigned our investment in GEMAT, taking something rather complex and simplifying it. We've invested $15 million over the past three years, and we now own 32% of Genmat. Full stop, and hopefully with no confusion.

Is it should be.

What we internally refer to as the Holy Grail.

Which means to us achieving cost parity with petroleum.

This notion was unrealistic just a few years ago.

However, with the advancement in yields and costs that we've already established.

The new pathways that we've now identified.

Unknown Executive: We also retain the rights to use GENMAT's AI for both biofuels exclusively and mineral discovery and mining, positioning us to lead in these fields of use. This restructured investment puts our initial valuation at $47 million, and we believe this should already easily reflect at least a 10x return when compared to other comparable, commercial-ready AI companies, although it's nearly impossible for us to find an AI company capable of what GenNet is currently demonstrating to the market. And they're proving it in the market, as they are now in discussions with several early adopters, including globally recognized stakeholders in high-value Remarkably, GEMMAT has also developed and deployed a fully operational and new proprietary mission control software for managing GEMMAT-1, its low earth orbiting satellite and hyperspectral imaging system.

We believe we have line of sight on breakthroughs for further increasing our fuel yields and further reducing our operating costs all towards this ultimate objective of achieving cost parity with petroleum.

Speaker Change: I know and respect how huge of a statement. This is.

And we're tempering our excitement internally because there is still real work to do however, our leading and now expanding IP, our pioneering innovation team and our expanding development network has brought this objective closer and into much cleaner sight for us.

Speaker Change: We will have more to say on this in this specific developments as they occur but I can assure you. These new allocations have been extremely diligent and support our biggest goals in this energy transition.

Speaker Change: Our existing solutions are already changing the renewable fuel game, but to sustain and grow our technology leadership, our strategy must ensure that achieving our go actually windows.

Speaker Change: And that is what these innovations are designed and intended to do.

Unknown Executive: GEMAT's also now engaged with even more customers for their imaging and predictive mineral discovery algorithms, which of course Comstock's very interested in, and also with customers signing up for satellite control system soft. So they built their own satellite. They deployed their own hyperspectral imager. They built encryption technology, programmed it themselves into this system, and then developed an entire software control system to control the missions of the satellite.

Speaker Change: Let me move over to vent to Jen, Matt because our investment in Genmab is motivated by the same goal accelerating these commercialization of these energy enabling breakthrough.

Jen: I'm thrilled to announce that we have realigned our investment in <unk>, taking something rather complex and simplifying it.

Jen: We've invested $15 million over the past three years, and we now own 32% of Genmab full stop.

Jen: Hopefully with no confusion.

Unknown Executive: And other companies who are putting satellites into orbit are saying, "We'd like to pay you for leveraging your system." Our restructuring positions GMAP for both their commercialization and monetization efforts in every single way. And it was designed to support their ability to raise much more capital from third party sources at a much higher valuation, which we expect will occur later this year. This would both validate their technology with third parties and their valuations. And ultimately, that would terminate our future funding obligations, which will reflect a powerful win, win, win all the way around.

Jen: We also retain the rights for using Gen. That's AI for both Biofuels exclusively and mineral discovery and mining positioning us to lead in these fields of use.

This restructured investment puts our initial valuation of $47 million and we believe this should already easily reflect at least a 10 X return when compared to other comparable commercial ready AI companies. Although it is nearly impossible for us to find another company capable of agenda is currently demonstrating to the mark.

Jen: Yes.

Jen: And they are proving it in the market.

Jen: As they are now in discussions with several early adopters, including globally recognized stakeholders in high value applications, starting with batteries and semiconductors that will leverage their physic based AI for material development application.

Unknown Executive: It should be clearer, and hopefully, more and more clearer that our innovation system, this extended innovation system, which includes GEDMAT, which includes Renfuel, and now includes new partners, is already world-leading for technologies that are enabling energy transit. And amazingly, each and every one of them is, independently, commercialized. Greenline is another example that we're proud to highlight. Greenline just launched their first commercial-scale facility in North America, and they have differentiated themselves in a very difficult EV recycling market with a very high-value product proposition.

Jen: Remarkably <unk> also developed and deployed a fully operational and new proprietary mission control software for managing Jim at one it's low earth orbiting satellite and hyper spectral imaging system.

<unk> also now engaged with even more customers further imaging and predictive mineral discovery algorithms of which of course Comstock very interested in and also with customer signing up for satellite control system software.

Jen: So they built their own satellite.

Unknown Executive: Their Oklahoma plant is now producing battery-grade precursor cathode active materials, and we understand that they're receiving offers for more capital financing at even higher values. This is in line with our plans to monetize some or all of our Green Lion investment this summer. In fact, Green Lion and Sierra Springs Opportunity Fund were both very early stage investments for us. We were literally in the seed stage in both cases.

Jen: They deployed their own hyper spectral imager.

Jen: They built encrypt and technology program did themselves into this system and then developed an entire software control system to control the missions of the satellite and other companies who are putting satellites into orbit are saying, we'd like to pay you for leveraging your system.

Jen: Our restructuring physicians surmount for both their commercialization and monetization efforts in every single way and it was designed to support their ability to raise much more capital from third party sources at much higher valuations, which we expect will occur later this year. This would both validate their technology with third parties.

Unknown Executive: And both have seen enormous appreciation and value over just the past three years. Yet both are also directly supporting and or have advanced specific aspects of our individual lines of businesses. Our initial green line investment alone has grown over 10x, and Sierra Springs' value growth has been even higher. Some of you may not realize it, but Sierra Springs Opportunity Fund has the only large-scale manufacturing complex in Silver Spring, and Comstock Metals has secured this capacity for both its existing production and its next industry-scale facility. Silver Springs, with all of its new highways and infrastructure, provides immediate access to California and to Las Vegas, which is perfectly suited for Comstock Metals.

Jen: And and their valuations and ultimately that would terminate our future funding obligations, which will reflect the powerful win win win all the way around.

Jen: It should be clearer and hopefully clear and clear that our innovation system. This extended innovation system, which includes jet map, which includes <unk> fuel and now includes new partners is already world, leading technologies that are enabling the energy transition.

Jen: And amazingly each and every one of them independently is commercializing <unk>.

Unknown Executive: Our sale of 2500 crew last year and our ability to pivot so quickly to a new solar panel operation would not have been possible without the availability of this Nevada platform. Silver Springs also just received and executed an LOI for the purchase of one of its properties that more than doubles the last known transaction value and hence correlates with and doubles the underlying value of our most recent investment and represents another significant increase in the value of Comstock's original investment in this equity.

Jen: Green lines and other example that we're proud to highlight Green line just launched their first commercial scale facility in North America, and they have differentiated themselves in a very difficult EV recycling market with a very high value product proposition. The Oklahoma plant is now producing battery grade precursor cathode active materials and we understand that they are receiving offers.

Jen: For more capital financing at even higher values. This is in line with our plans to monetize some or all of our Green line investment. This summer in fact Green line and Sierra Springs opportunity Fund, we're both very early stage investments for us.

Unknown Executive: These two advancements position us to monetize both our Greenline investment and our directly owned real estate, Comstock's directly owned real estate in Silver Springs, for over $60 million in cash. And again, to be clear, that $60 million does not include our equity investment in the Sierra Springs Opportunity Fund but just the 250 acres of land that Comstock owns separately in Silver Springs.

Jen: We were literally in the seed round in both cases and both have seen enormous appreciation in value over just the past three years. Yes. Both are also directly supporting have advanced specific aspects of our individual lines of businesses.

Jen: Our initial green line investment alone has grown over 10 acts and Sierra Springs values growth has been even higher.

Unknown Executive: Also, to be clear, the LOI is for lands owned by the Opportunity Fund, for one parcel of land adjacent to our Comstock properties there. Now, let me turn to our businesses and just give some brief updates. And as I mentioned, Billy will take you through a deeper dive with our metals recycling business. So, let me start with mining and fuels, and then I'll segue and wrap up with metals.

Jen: Some of you may not realize it but Sierra Springs opportunity fund has the only large scale manufacturing complex in silver Springs, and Comstock metals has secured this capacity for both its existing production and its next industry scale facility.

Jen: Silver Springs with all of its new highways and infrastructure provides immediate access to California, and Las Vegas, which is perfectly suited for Comstock metals.

Unknown Executive: Our mining team has advanced our monetization plans for the northern part of the district, primarily our Story County mineral estate, including the northern targets that are currently under lease, where we're experiencing current revenues and the possibility of even higher cash flows from expanding those transactions. Again, just in the northern part of the district. Internally, more excitingly, our mining teams have advanced our internal economic feasibility assessment for the southern part of the district during just the past few months. We've updated our mine plan for the date and resource using current pricing assumptions. You should be thinking $2,300 gold, not $1,800 gold and $27 silver.

Jen: Our sale of 2500, Peru last year, and our ability to pivot so quickly to a new solar panel operation would not have been possible.

Jen: Without the availability of this Nevada platform.

Jen: So where spring has also just received and executed an LOI for the purchase of one of its properties that more than doubles, the last known transaction value and hence.

Jen: Correlates and doubles the underlying value of our most recent investment and represents another significant increase in the value of Comstock original investment in this equity.

Unknown Executive: Our published technical reports use a cutoff that was actually equal to gold prices in 1800, where gold prices have now increased by $500 since then alone. So our internal assessments are showing nearly a doubling of the value of the Dane resource both on a net cash flow and a net present value basis from our analysis just over a year and a half ago. We've also advanced Dayton's expansion plan as we build a new model together with GenMAT's geophysics team and prepare a new geologic baseline for the full imaging scans by GenMAT-1 of our district, which we should be in a position to commence shortly. So we built a base, we've expanded the base, and now we're going to add that data to the base to ultimately come up with a whole new predictive ability to expand our mineral resources.

Jen: These two advancements position us to monetize both our green line investment and our directly owned real estate Comstock directly owned real estate in silver Springs at over $60 million in cash proceeds and again to be clear. That's 60 million doesn't include or does not include our equity investment.

In this year's springs opportunity for it but just the 250 acres of land that Comstock on separately in silver Springs also to be clear the LOI for lands owned by the.

Jen: The opportunity funds for one parcel of land adjacent to our Comstock properties there.

Jen: Let me turn to our businesses and just give some brief updates and as I mentioned Bill will take you through a deeper dive with our metals recycling business. So let me start with mining in fuel and then I'll segue and wrap with metals.

Unknown Executive: So in 2024, we're still looking to receive cash proceeds now, well above the $2 million that we originally predicted from the mineral leases in the northern part of the district, and potentially entering into additional sales agreements, as I just mentioned, while we develop this data and resource and expand the mine plan, ultimately for production. Turning the Fuel on, which, by the way, has been keeping us by far the busiest of all of our businesses. As most of you know, last year, we validated industry-leading yields exceeding 100 gallons per dry ton of wood, and we confirmed extremely low carbon intensity scores from our solution.

Jen: Our mining team has advanced our monetization plans for the northern part of the district, primarily our storey county mineral estate, including the northern targets that are currently under lease where we're experiencing current revenues and the possibility of even higher cash flows from expanding those transactions again, just in the northern part of the district more excitingly more Excitingly <unk>.

Jen: <unk> our mining teams have advanced our internal economic feasibility assessment for the southern part of the district during just the past few months.

Jen: We've updated our mine plan for the Dayton resource using current pricing assumptions, you should be thinking $2300 gold not $1800 gold.

Unknown Executive: We're now engaged across the industry for both commercial adoption and monetization. We're advancing multiple client discussions for monetization and deployment of our technology, and we very much expect multiple commercial agreements this year. We're in active and advancing conversations in the United States, in South America, in Europe, and now even in Asia. We expect multiple commercial adoptions with industry leaders this year. I know this is what people are very interested in and waiting for.

Jen: $27 silver.

Jen: Our published technical reports user cutoff that was actually equal to gold prices of eight 800, where gold prices have now increased by $500. Since then alone.

Jen: So our internal assessments are showing nearly a doubling of value of the Dane resorts both on it.

Jen: Hello, Ana net present value basis from our analysis, just over a year and a half ago.

Jen: We've also advanced Eaton's expansion plan as we build a new model together with Gen merch geophysics team and preparing new geologic baseline for the full imaging scans by Genmab blood.

Unknown Executive: And I'm confident as our teams convey offers to our partners that will not only validate our leading technology but also unlock tremendous value for Comstock. And let's talk about that for a minute. Everyone's very, very focused on the first revenue, the assumption being, you know, revenue will cover our costs, the assumption being, revenues will minimize dilution. That's all good.

Jen: Of our district, which we should be in a position to commence shortly so we build a base we've expanded the base and that we're going to add that data to the base to ultimately come up with a whole new predictive ability to expand our mineral resources. So in 2024, we're still looking to receive cash proceeds now well above 2 million.

Unknown Executive: But we're receiving and entertaining strategic interest from various partners for investing directly into Comstock Fuels, the subsidiary, and accelerating our deployments with these partners. This will have a tremendous impact on our liquidity, on this notion of dilution, or rather accretion of value, in exceptionally positive ways. These impacts will certainly be faster than when our technology starts pouring its first gallons, which will also be huge, but later than the monetization that I'm talking about and that we expect to consummate this year. This is all consistent with what we've been saying about commercialization and monetization with early adopters. We're just getting very, very close, and it's all coming together. Let me conclude with Matt.

Jen: That we originally predicted for the mineral leases in the northern part of the district and potentially entering into additional sales agreements as I just mentioned, while we develop this date in resource and expand the mine plan ultimately for production.

Jen: Turning to fuels, which by the way has been keeping us by far the busiest of all of our businesses. As you know last year, we validated industry, leading yields exceeding 100 gallons per dry ton of wood and we confirmed extremely low carbon intensity scores from our solution. We're now engaged across the.

Jen: The industry for both commercial adoption and monetization we are advancing multiple client discussions for monetization and deployment of our technology and very much expect multiple commercial agreements this year.

Unknown Executive: Glass, and certainly not lead, where we crossed the finish line with the successful commissioning of our first zero landfill solar panel recycling business, and it's now producing three distinct fully renewable and saleable products from those end-of-life panels. We had a little excitement last week with our senior senator from Nevada, Senator Catherine Cortez Masto, visiting and touring our new facility. And to be crystal clear, we're now receiving, processing, and, effective this week, recording revenue on the completion of processing those patents.

Jen: We're in active and advancing conversations in the United States.

Jen: In South America.

Jen: In Europe.

Jen: And now even in Asia.

Jen: We expect multiple commercial adoptions with industry leaders. This year I know this is what people are very interested in.

Jen: And waiting for and I am confident as our teams convey offers to our partners that will not only validate our leading technology, but also unlock tremendous value for Comstock.

Jen: Let's talk about that for a minute everyone is very very focused on the first revenue the assumption being revenue.

Jen: We'll cover our costs the assumption being revenues will minimize dilution that's all good.

Unknown Executive: I mean, just in this quarter alone, we secured all the required operating permits and commenced production. We secured revenue-generating contracts and began receiving large quantities of end-of-life panels. We commissioned and successfully tested every stage of production, producing 100% saleable materials from those materials that were coming in. We collected cash payments on receivables for substantially all of the panels that have been received to date. Remember, this is a tipping fee model; we get paid upfront.

But we are receiving an entertaining strategic interests by various partners for investing directly into Comstock fuels, the subsidiary and accelerating our deployments with these partners. This will have tremendous impact on our liquidity on this notion of dilution or rather accretion of value and exceptionally positive ways.

Jen: These impacts will certainly be faster.

Jen: And when our technology starts pouring its first gallons, which will also be huge but later than the monetization that I'm talking about and that we expect to consummate this year.

Unknown Executive: And we've now selected the site in Silver Springs, the same site, the same complex for our industry-scale production facility that's going to represent up to 100,000 tons of annual production. And that's not all. We've prepared and already submitted permits for the first expanded industry-scale storage site, and we've expanded our revenue-generating contracts into California, into Arizona, into Texas, where we're getting tremendous interest. Our metals team really rocked it this quarter, and I'm going to let Billy now take you into a deeper dive of our plans there, including what I feel is just a remarkable economic profile that we feel really, really good about executing on Billy?

Jen: This is all consistent with what we've been saying about commercialization and monetization with early adopting partners or just getting very very close if it's all coming together.

Jen: Let me conclude with metals.

Jen: Last and certainly not least where we cross the finish line with the successful commissioning of our first zero landfill solar panel recycling business.

Jen: Business.

Jen: And its now producing.

Jen: Three distinct fully renewable and sale of products from those end of life panels. We.

Jen: We had a little excitement last week with our senior Senator from Nevada.

Senator Catherine Cortez, Masco, visiting and pouring our new facility.

Jen: And to be Crystal clear, we're now receiving panels processing panels and.

Billy: It's very true. Our metals team has been quite busy this past quarter, and it's not going to slow down. So, I'm going to share some slides and talk a bit today about where the business is going to go from here, and I'm going to provide some more precise forecasts for this business. Before we dive into that, though, I want to take a minute and go back and talk about how we got here in this space of electrification product recycling. In 2021, Comstock acquired Linux, which was a development stage lithium battery recycling company. And there are some pictures here on the screen.

Jen: And effective this week recording revenue on the completion of processing those panels.

<unk> just in this quarter alone we secured all of the required operating permits and commenced production.

Jen: We secured revenue generating contracts and began receiving large quantities of end of life panels.

Jen: We commissioned and successfully tested every stage of production producing 100% salable materials from those materials that were coming in we collected cash payments and receivables for substantially all of the panels that have been received to date remember this is a tipping fee model, we get paid upfront.

Billy: That's me at the 2022 annual meeting showing off our pilots. And we showed a video of the system in operation, recycling batteries and producing black mass. Now, in early 2022, battery metal commodity prices were at all-time highs. The market was really frothing.

Jen: And we've now selected the site in silver Springs, the same side the same complex for our industry scale production facility, that's going to represent up to 100000 tons of annual production.

Speaker Change: And that's not all.

Speaker Change: We've prepared and already submitted permits for the first expanded industry scale storage site and we've expanded our revenue generating contracts into California into Arizona into Texas, where we're getting tremendous interest our metals seem really rocketed this quarter.

Billy: And, you know, we were doing what we like to do, which is to try to de-risk our process by looking for partners that can enhance our capabilities and de-risk our plan. As Corrado and I made the rounds with our competitors, we're sitting in the conference room of one of them in early 2022. And they were bragging about their market-leading economics in their battery recycling process. The crowd and I looked at each other. I had to bite my tongue because they showed us a model that was based on expectations of commodity prices at all-time highs going up perpetually for decades to come. Now you probably know the story and how it actually played out.

Speaker Change: And I'm going to let Billy now take you into a deeper dive of our plans there, including what I feel is just a remarkable economic profile that we feel really really good about executing on billing.

Billy: Thanks Corrado.

Billy: That's very true our metals team has been quite busy this past quarter.

Billy: <unk>.

Billy: It's not going to slow down.

Billy: So I'm going to share some slides and talk.

Billy: Our competitors raced to build up capacity for primary battery recycling, hoping the market was going to keep going up, hoping the supply of batteries was going to grow extremely quickly. But instead, those commodity prices fell, the tsunami of supply didn't materialize, and pain became the norm throughout the industry. You know, many of these competitors have not relented, and they continue operating on the hope that the market is going to perform for their model.

Billy: Talk a bit today about where the business is going to go from here.

Billy: I'm going to provide some more precise forecasts for this business.

Billy: Before we dive into that though I want to take a minute and talk go back and talk about how we got here.

Billy: In this space of electrification product recycling.

Billy: In 2021, Comstock acquired Linux.

It was a development stage lithium battery recycling company.

Billy: We made the strategic decision to exit this market. We executed an opportunistic sale of our battery recycling facility in 2023. We partially realized our investment in GreenLion. Now, as Corrado says, we believe GreenLion has a unique position in this market as a value-added operator downstream. But we still see future monetization of that position as well.

Billy: And some pictures here on the screen. That's me at the 2022 annual meeting showing off our pilot system.

Billy: And we showed a video of the system and Cros in operation.

Billy: <unk> batteries and producing black mass.

Billy: Now in early 2022 battery metal commodity prices were at all time highs.

Billy: The market was really frothy.

Billy: And we were doing what we like to do which is to try to derisk our process by looking for partners that can enhance our capabilities and de risks our plants.

Billy: Now, in 2023, we pivoted to solar panel recycling. The EIA is projecting a million tons per year of end-of-life solar panels available for recycling by just 2030. The first solar boom was really over 10 years ago in the Southwestern United States, and a solar panel manufacturer's quoted average life is around 20 years.

Its corrado when I made the rounds with our competitors, we're sitting in a conference room with one of them in early 2022.

Billy: And they were bragging about their market, leading economics in their battery recycling process.

Billy: When I look to each other I had to bite my tongue.

Billy: Because they showed US a model that was based on expectations.

Billy: What we see in the market is that the reality is much shorter than that, and these panels are already starting to come into recycling. In early 2023, Dr. Villamagna joined us and came with a proven process to recycle these laminated systems, with prior success in other materials.

Billy: Commodity prices at all time highs going up perpetually for.

Billy: For decades to come.

Billy: Yes.

Billy: Now you probably know the story and how it actually played out.

Billy: Our competitors race to build up capacity for battery primary battery recycling, hoping the market was going to keep going up and the supply of batteries was going to grow extremely quickly.

Billy: We've been able to develop a first mover advantage, including an advantage in sales with California being our primary source market, as well as building on top of an advantage in permitting and operation in Nevada. We have longstanding relationships with the Nevada Department of Environmental Protection that have allowed us to move very quickly on the permitting side. Today, in 2024, we're operating. Our demonstration facility in Silver Springs, Nevada is processing panels today.

Billy: And instead those commodity prices fell the tsunami of supply didn't materialize.

Billy: Pain became the norm throughout the industry.

Billy: Many of these competitors have not relented and they continue operating on the hope that the market is going to perform to their models.

We made the strategic decision to exit this market.

Billy: We executed an opportunistic sale of our battery recycling facility in 2023.

Billy: We partially realized our investment in Green line now Spreader says, we believe Green line has a unique position in this market as a value added operator downstream.

Billy: We're quickly filling up our existing storage capacity with Customer Contracts, and we're getting recognition on the local and the national stage. As Crado mentioned, Senator Cortez Masto visited last week to tour the facility and learn more about our process. Not only is Senator Masto our senator from Nevada.

Billy: But we still see future monetization of that position as well.

Billy: Now in 2023, we pivoted to solar panel recycling.

Billy: Yeah.

Billy: She also sits on the very important Senate Energy and Natural Resources Committee that defines a lot of policy around this area, and her support has been very welcome as we move forward from here. We're planning to build at least three 100,000 ton per year facilities, with an expected cost of $12 million each to get into operation. We're going to bootstrap this with project level financing for each of these projects. And this is going to be publicly supported financing, including industrial development bonds, USDA rural development financing, and potentially 48C Tax Credits from the Inflation Reduction Act, of which a new program was announced this week for renewable energy projects.

Billy: The EIA is projecting 1 million tons per year of end of life solar panels available for recycling by just 2030.

Billy: The first solar boom was really over 10 years ago in the southwestern United States.

Billy: Our solar panel manufacturers quota average life of around 20 years.

Billy: What we see in the market is that the reality is much shorter than that and these panels are already starting to come into the recycling space.

Billy: In early 2023, Dr. Bill ammonia joined US and came with a proven process to recycle these laminated systems.

Speaker Change: With prior success in other other materials.

Speaker Change: We've been able to develop a first mover advantage, including an advantage in sales with California, being our primary source market.

Speaker Change: As well as building on top of an advantage in permitting and operation in Nevada, we have long standing relationships with the Nevada Department of environmental protection that have allowed us to move very quickly on the permanent on the permitting side.

Billy: The best part about this business is that it moves very quickly. We expect it to be self-financing in just two to three years. We're planning to stage our expansion over the next four years. Facility number one is our demo facility that's operating today. That facility is going to scale to full capacity operating three shifts later this year. We're using this demo facility to shake out our process and to ensure a rapid and successful scale up as we move to the larger facility.

Speaker Change: Today in 2024 were operational.

Speaker Change: Our demonstration facility in Silver Springs, Nevada is processing panels today.

Speaker Change: We're quickly filling up our existing storage capacity.

Speaker Change: From customer contracts.

And we're getting recognition on the local and the National stage, Scott mentioned Center Cortez massive visited last week to tour the facility and learn more about our process now.

Billy: You see here the expected timelines for these projects are short, one year to go from funding to initial operations, and one year to go from that initial operation to operating at full capacity. We're staging this out over several years. These are conservative projections. We think there's a good chance that we can beat this schedule and move even quicker.

Speaker Change: Not only is center court as Massimo.

Speaker Change: Senator from Nevada.

Speaker Change: She also sits on the very important Senate energy and natural resources Committee the defined a lot of policy around this area.

And her support has been very welcomed.

As we move forward from here.

Speaker Change: We're planning to build at least three 100000 ton per year facilities.

Billy: As we think about our capacity build over the next several years, we're looking at 75,000 tons of capacity by 2026, 150,000 tons by 2027, and over 300,000 tons by 2029. The pace of this growth is going to be dictated by demand. For each of these facilities, we're establishing storage capacity in advance of the production capacity, and we're filling that storage capacity with revenue-producing inventory. This is an interesting industry because inventory is a source of cash, not a use. That inventory contributes to the funding of the build of these facilities. We're not going to do what the battery guys did.

Speaker Change: With an expected cost of $12 million each to get to operation.

Speaker Change: We're in a bootstrap this with project level financing for each of these projects and this is gonna be publicly supported financing, including industrial development bonds USDA Rural development financing.

Speaker Change: Potentially.

Speaker Change: <unk> 48 C tax credits from the inflation reduction act of which a new program was announced this week for renewable energy projects.

The best part about this business is it moves very quickly and we expect it to be self financing in just two to three years.

Billy: We're not going to build excess capacity. We're going to manage our market risk, and we're going to move at pace with the demand in the market. Again, we think these projections are conservative, and we expect this market to grow much quicker than. The projection results from this plan would produce over $125 million in top-line annual revenue in just five years, with 100 million in net profit, for an 80% operating margin. It's a very capital efficient business, a very capital efficient growth program.

Speaker Change: Okay.

Speaker Change: We're planning to stage our expansion over the next four years.

Speaker Change: Facility number one is our demo facility that's operating today.

Speaker Change: That facility is going to scale at a full capacity operating three shifts later this year.

Speaker Change: We are using this demo facility to shake out our process.

Insure a rapid and successful scale up as we move to the larger facilities.

You see here the expected timing for these projects were short one year to go from funding to initial operations in one year to go from that initial operation to operating at full capacity.

Billy: And again, it becomes self-funding in just three years, which sets us up for future growth to continue to pace growth in the market. Before I finish, I want to touch on one last point. I get a lot of questions about how we price our service. What does it cost to recycle a solar panel?

Speaker Change: We're stating this out over several years.

Speaker Change: These are conservative projections.

Speaker Change: We think theres a good chance that we can beat the schedule and move even quicker than us.

Speaker Change: As we think about our capacity build over the next several years, we're looking at 75000 tons of capacity by 2026 to 150000 tons by 2027 and over 300000 tons by 2029.

Billy: And I mentioned last quarter that, you know, this is not information we're planning to share publicly. There are a few reasons why. You know, first off, this is truly a service business, not a commodity business. Every contract is unique. Every contract is negotiated, and our sales team is motivated to seek the highest price possible for our service. Secondly, our customers are really marking up our services; we're acting as a destination. The solar installer who's taking down old solar panels is also seeking the largest, you know, the highest price it can get for the removal and disposal of those old panels.

Speaker Change: The pace of this growth is going to be dictated by the demand.

Speaker Change: For each of these facilities were establishing storage capacity in advance of the production capacity.

Speaker Change: We're filling up that storage capacity with revenue producing inventory. This is an interesting industry because inventory as a source of cash not a use.

Inventory contributes to the funding of the build to these facilities.

Billy: And those customers expect that we're going to keep our pricing confidential in order for them to have the best position in negotiation. Our competitors here today are really land; we are cost competitive with the hazardous waste landfill price, which is also generally a negotiated non-public price. For this reason, we think it's prudent to keep this information confidential and let our sales team operate to the best of their ability. So I'm going to wrap up there and turn back to Corrado, and look forward to any questions on this as we move back.

Speaker Change: We're not going to do with the battery guys did we're not going to build excess capacity, we're going to manage our market risk and we're going to move at pace with the demand in the market again. These projections are conservative and we expect this market to grow much quicker than us.

Speaker Change: The projected results from this plant.

Speaker Change: Would produce over $125 million in top line annual revenue in just five years.

Speaker Change: With $100 million and net profit.

Speaker Change: For an 80% operating margin.

Speaker Change: It's a very capital efficient business, a very capital efficient growth program and again it becomes self funding in just three years, which sets us up for future growth to continue to pace growth in the market.

Corrado: Excellent, Billy. Thank you.

Corrado: That picture is of the smaller facility, about 7000 square feet, sitting next to the industry-scale facility, which is well over 100,000 square feet, you know, on that same campus. I just want to reemphasize, though, how strongly this achievement hits on our financial, natural, and social objectives, the foundation of how we plan and what we're here to achieve. Financially, it's a huge local market, way over 10x the capacity of one facility. We're looking at this thing going to a million tons in a relatively short period of time.

Speaker Change: Before I finish I want to touch on one last point.

Speaker Change: I'm getting a lot of questions about how do we price our services what does it cost to recycle solar panels.

Speaker Change: And I mentioned last quarter that this is not information we're planning to share publicly.

Speaker Change: There's a few reasons why.

Speaker Change: First off this is truly a service business not a commodity business every contract is unique every contract is negotiated in our sales team.

It is to seek the highest price possible.

Speaker Change: Secondly.

Speaker Change: Our customers are really marking up our services, we're acting as a destination.

Corrado: And as Billy said, we can adeptly, versatily, quickly deploy capacity as we need it. But even a conservative plan against that million tons throws off nine figures of cash flow. I love businesses that have extremely low TVC, that is totally variable cost, that have fast cycles, measured in hours, not days. That's what we define as throughput.

The solar installer, who is taking down old solar panels is also seeking for the largest.

Speaker Change: Largest price it can get for the removal and dispose of those.

Speaker Change: And those customers expect that we're going to keep our pricing confidential in order for them to have the best positioned in negotiations.

Speaker Change: Our competitors here today are really landfills.

Speaker Change: We're cost competitive with hazardous waste landfill pricing.

Corrado: And that's over 80% cash margins. You know, and remembering that that's all in a company that's sitting on 250 million of net operating loss carry forwards, which will shelter a tremendous amount of profit from federal taxes. So metal makes, you know, metals makes this, metals alone would make Comstock succeed with the numbers that that we just looked at. And it's self-financing because where it's located in a rural area and the nature of the business, we have access to USDA loans for rural development, we have access to Nevada industrial bonds, which are typically limited to about $10 million a project, except if they're for renewable or recycling activities, there isn't a lot, So, you know, from a natural perspective, we're literally the only zero landfill solution that's keeping toxic materials, a literal tsunami of these materials coming from California out of Nevada landfill.

Which is also generally on negotiated nonpublic price.

Speaker Change: For this reason, we think it's prudent to keep this information confidential and what our sales team operate to the best of their abilities.

Speaker Change: So I'm going to wrap up there and turned back to crop.

Crop: And look forward to any questions on this as we move back.

Crop: Excellent Billy Thank you pictures of of the smaller facility about 7000 square feet sitting next to the industry scale facility does well over 100000 square feet on that same campus I just wanted to reemphasize, though how strongly this achievement.

Crop: Hits on our financial natural and social objectives Foundation of how we plan and what we're here to achieve.

Crop: Financially.

Crop: Huge local market.

Crop: Way over 10 X the capacity of one facility. We're looking at this thing going to a million tons in a relatively short period of time and as Billy said, we can we can adapt Lee versus Italy quickly deployed capacity as we need it.

Corrado: And socially, we're creating a clean, sustainable ecosystem in Silver Springs. We're bringing jobs and development to an opportunity zone that desperately needs it. So we don't just feel great about the achievements of the business. It's just remarkable what it's positioned to do. So Trevor, I think with that, we can turn it into questions.

But even a conservative plan against that million tons throws off.

Crop: Nine figures of ash flow.

Crop: I love businesses that have extremely low T V. C that is totally variable costs that have fast cycles measured in hours not days, that's what we define as throughput and that's over 80%.

Unknown Attendee: Thank you, gentlemen. If you have any questions, you may submit them in the Q&A module. If we don't get to all the questions today, we will be sure to review them internally and respond accordingly following today's event. Kick off with the first question here. So Corrado, Comstock has said it would sell its non-core strategic investment assets, namely the Sierra Springs real estate and Greenline shares. Would you say your confidence level in selling these assets in 2024 is higher now compared to previous quarters? And if so, why?

Crop: Cash margins.

Crop: And remembering that that's all in a company that's sitting on 250 million of net operating loss carryforwards, which will shelter a tremendous amount of profit from federal taxes.

Metal mix.

Metals makes this.

Crop: Metals alone would make comstock succeed.

The numbers that that we just looked at and it's self financing because where it's located in a rural area and the nature of the business. We have access to USDA loans for rural development, we have access to Nevada, industrial bonds, which are typically limited to about $10 million of project excel.

Corrado: Great question. Thanks, Trevor. So, let me try.

Corrado: Great question. Thanks, Trevor. So let me start with Greenline for You know, as I mentioned in the presentation, Green William was a seed investment for us. They had a remarkable idea that was complementary to our recycling process. That idea was to take black mass and go all the way to precursor cathode active materials, pulling themselves way up and above the commodity value chain. We love that.

Crop: Therefore, renewable our recycling activities.

There isn't a limit.

Crop: So.

Crop: From a natural perspective.

Literally the only zero landfill solution, that's keeping toxic materials, a literal tsunami of these materials coming from California out of Nevada landfills.

Corrado: We still love that aspect of where they really position themselves in the market, but they were an idea, and then they started producing a prototype. But today, literally today, Green Line just announced their first operational facility in Oklahoma, and they're producing precursor cathode active materials. And we understand that that was an important prerequisite for them to start the process of their next capital raise. And we understand that they're getting remarkable interest from infrastructure funds and energy transition funds.

Crop: And socially we're creating a clean sustainable ecosystem in silver spring, we're bringing jobs and development to an opportunity an opportunity zone that desperately needs. It.

No.

We don't just feel great about the achievements of the business.

Crop: It's just remarkable what it is positioned to do.

Speaker Change: So Trevor I think with that we can turn it to questions.

Speaker Change: Perfect.

Trevor: Well. Thank you gentlemen, if you have any questions you may submit them in the Q&A module.

Trevor: If you if we don't get to all the questions today, we will be sure to review them internally and respond accordingly, following today's event.

Corrado: And so, we are more confident, we are highly confident because their value has literally increased in every one of their four offerings, almost in a textbook manner. And because the demand is now so large and so established, we're already getting secondary interest, you know, interest from the secondary markets in our shares. So we look to synchronize our monetization with those plans that are near-term this summer. And I feel very confident, especially since we were successful in doing a piece last year.

Speaker Change: Let's kick off with the first question here.

Speaker Change: So corrado Comstock has said it would sell its noncore strategic investment assets, namely the Sierra Springs Real estate in Green line shares would you say your confidence level and selling these assets in 2024 is higher now compared to previous quarters and if so why.

Speaker Change: Great question. Thanks, Trevor So let me start with Green line first.

Speaker Change: As I mentioned in the presentation Green will mean was a seed investment for us. They had a remarkable idea that was complementary to our recycling process that idea was to take black math and go all the way to precursor cathode active material, owing themselves way up and above the commodity value chain.

Corrado: Sierra Springs, a little bit a little bit different, right? Silver Springs itself was sort of the last bastion of development in Northern Nevada. Reno is exploding right now. The Tahoe-Reno Industrial Center was the marquee location for heavy industrial businesses, and then that got complemented by distribution, and then it got complemented by data centers. Well, that explosion has now, you know, fully spilled over into Silver Springs, not only with the announcement last year of Microsoft, you know, claiming their stake in the ground adjacent to our properties, but also with this recent letter of intent, which is another hyperscale data center coming in and establishing a more than double valuation.

We love that that we still love that aspect, where they've really positioned themselves in the market, but they werent idea and then they were producing.

Speaker Change: Prototypes, but today literally today Green line, just announced their first operational facility in Oklahoma.

Speaker Change: And they're producing precursor cathode active materials and we understand that that was an important prerequisite for them to start the process of their next capital raise and we understand that theyre getting remarkable interest from infrastructure level and energy transition funds.

Corrado: And so the bad news is, you know, because Silver Springs was sort of the last bastion, the last sort of frontier of industrial development, it's taken longer. The good news is that property values have only gone up, you know, in that time period. And to have a direct comp that is adjacent to Comstock's properties there gives us some, you know, gives us, you know, an active ability now to market, negotiate, and monetize those properties. So I think Green Lion is this summer, and then Silver Springs is going to be right on its tail.

Speaker Change: And so we are more confident we are highly confident because their value has literally increased in every one of their four offerings almost.

Speaker Change: And in a textbook manner.

Speaker Change: And that the demand now is so is so large and so established we're already getting secondary interest interest in from the secondary markets and our share. So we look to synchronize our monetization.

Speaker Change: Those plans that are near term this summer so I feel very calm, especially since we were successful in doing a piece last year.

Speaker Change: Sierra Springs, little bit a little bit different right.

Speaker Change: Silver Springs itself.

Corrado: Could you please comment on Comstock's plans to address dilution during times of rapid operational growth?

Was sort of the last bastion of development to northern Nevada, Reno is exploding it has been hit.

The Tahoe Reno Industrial Center was.

Corrado: Yeah, I know that this is a point of angst. And let me first say that we are highly sensitive to the use of our capital and to the use of our currency. We're also highly sensitive to the acceleration of the business opportunities that we face. We've positioned ourselves remarkably well, and this is why I emphasize our strategic investment. So if you look at the youth of our capital and how large of a percentage of that capital is going to direct development, for direct expansions of our IP portfolios for immediate, you know, commercialization on all fronts, you see that it's just important for us, in no shape, in no way, to slow that down. So, we've generally had a capital light mindset, you know; we've been thinly capitalized, lightly capitalized.

Speaker Change: Was the Mark key location for heavy industrial businesses, and then that got complemented by distribution and then got complemented by data centers, while that explosion has now fully spilled over in the silver springs, not only with the announcement last year of Microsoft.

Speaker Change: Of claiming their stake in the ground adjacent to our properties, but also of this recent letter of intent, which is another hyperscale data center coming in and establishing a more than a whole valuation.

Speaker Change: And so.

Speaker Change: The bad news is.

Speaker Change: Because silver springs, the sort of the last fast in the last sort of frontier of industrial development, it's taken longer and the good news is property values have only gone up in that time period and to have a direct comp that is adjacent to comps.

Corrado: That's because of our sensitivity, right to, to issuing shares. We also, by the way, issued almost 7 million shares in April that were restricted, that we will retain the future value of while we, you know, add to, you know, large shareholders to our capital base. So we're being thoughtful about it. Now, let me tell you how we manage to how we plan to manage. And it really relates to what we just talked about.

Speaker Change: Stocks properties there right.

Speaker Change: It gives us some.

Speaker Change: Gives us.

And active ability now to market negotiate and monetize those property. So I think green line is the summer and then silver Springs is is going to be right on its tails.

Thank you Corrado.

Corrado F. De Gasperis: Could you please comment on Comstock plans to address dilution during times of rapid operational growth.

Corrado F. De Gasperis: I know that this is a point of angst.

Corrado: I have my eyes squarely on the prize, of monetizing these assets, you know, this 40, 50, and $60 million of cash. I have my eyes squarely on that product. Okay, we have always chosen to advance the business. We have never intentionally slowed a business down.

Corrado F. De Gasperis: And let me first say that we are highly sensitive.

Corrado F. De Gasperis: To the use of our capital into the use of our of our currency.

Corrado F. De Gasperis: We're also highly sensitive to the acceleration of the business opportunities that we face.

Corrado F. De Gasperis: We've positioned ourselves remarkably well and this is why I emphasized our strategic investments. If you look at the use of our capital.

Corrado: And in fairness, depending on the timing of some of these transactions, like Renfuel, like Genmat, etc., we've had to deploy more capital and use more of our currency than people might have preferred or expected. But we do that with high value. Like the markets that we're addressing, the values that we're looking to unlock are tremendous. Now, in addition to the eye on the prize of those asset sales, the maturity of these commercializations has now gotten to the point where we're engaged with strategic partners daily, right?

Corrado F. De Gasperis: And how large of a percentage of that capital is going to direct developments for direct expansions of our IP portfolios for immediate commercialization on all fronts you see that it's just important for us in no shape and no way to slow that down so.

Corrado F. De Gasperis: So we've generally had a capital light mindset, we've been we've been thinly capitalized lightly capitalized that's because of our sensitivity.

Two to issue. These shares we also by the way issued almost 7 million shares in April.

Corrado: And the conversations are incredibly collaborative, like we have very common goals here in commercializing this technology for low-carbon fuels, as an example, right? And so the ability to access capital, to invite and solicit capital into the subsidiary levels is prominent. It may be imminent, right? So I think we have such a value foundation, such a now demonstrable value equation, that we have multiple sources of capital at multiple layers of the enterprise that should allow us to frankly minimize evolution. Now, I want to say it very clearly.

Corrado F. De Gasperis: That were with strategic partners that were restricted.

Corrado F. De Gasperis: That.

Corrado F. De Gasperis: We will retain the future value.

Corrado F. De Gasperis: While we add two large shareholders to our capital base. So we're being thoughtful about it now let me tell you how we managed to how we how we plan to manage it and it really relates to what we just talked about I have my eyes squarely on the prize.

Corrado F. De Gasperis: Of monetizing these assets.

Corrado F. De Gasperis: <unk> 40, 50 $60 million of cash I have my eye squarely on that prize. Okay. We have always chosen to advance the business. We have never intention, we slowed that business down and in fairness dips.

Corrado: I'm not saying we won't issue shares. I'm saying that we will leverage the value of this platform to do it in a way that maximizes future value and maximizes future returns. And always, always in a way that ensures the enterprise is safe, right? There's too much value here to do anything that's maverick, right? And so we're, I think it's, you know, Trevor, Frankly, there's a little bit of a balancing act. But what I like is that we have many, many variables. Right, that ensures our success; it ensures our wherewithal to move.

Corrado F. De Gasperis: Depending on the timing of some of these transactions like <unk> like Jen, Matt et cetera.

Corrado F. De Gasperis: We've had to deploy more capital and use more of our currency than people might have preferred or expect it but we do that with high value like the markets that we're addressing the values that we're looking to unlock our tremendous now in.

Corrado F. De Gasperis: In addition to the eye on the prize of those asset sales.

The maturity of these commercialization has now gotten to the point, where we're engaged with strategic partners daily right and the conversations are incredibly collaborative like we have a very common goals here and commercializing this technology for low carbon fuels as an example.

Unknown Attendee: So let's dig a little deeper into that. Here's a multi-part question. How much capital has been committed to each business segment and how much future investment is needed for each? Where will these funds come from? So Corrado, I think it might make sense to perhaps kick off with the monetization strategy around your metals business.

Corrado F. De Gasperis: Right and so the ability to access capital.

Corrado F. De Gasperis: To invite and solicit capital into the subsidiary levels is.

Corrado: Yeah, well, I'll do that. So, so, you know, in the metals case, and metals is, it's just such a great business, right? The cash projections, which I concur wholeheartedly with Billy, and sometimes I feel like biting my tongue, we are being conservative, we're being practically conservative, we're looking at the real risks of commercializing 234 facilities that are new, right, that are pioneering, but We already understand the capital profile. We understand the locations that they're in. And as I mentioned, we've already tapped into the availability of USDA loans and Nevada industrial bonds. And we didn't model the point that Billy made, did we?

Corrado F. De Gasperis: As prominent it may be imminent.

Corrado F. De Gasperis: So I think we have such a value.

Corrado F. De Gasperis: Asia, such a now.

Corrado F. De Gasperis: Demonstrable value equation that we have multiple sources of capital at multiple layers of the enterprise that should allow us to.

Corrado F. De Gasperis: Two frankly minimize the dilution now I want to say it very clearly I'm not saying, we wont issue shares I'm, saying that we will.

Leverage the value of this platform to do it in a way that maximizes the future value maximizes the future returns.

Corrado F. De Gasperis: And always.

Corrado F. De Gasperis: Always in a way that ensures the enterprise's safe right, there's too much value here to do anything Thats Maverick right and so I think it's Trevor frankly.

Corrado: We didn't model that working capital here is a source of cash, not a use of cash, right? So we're being very conservative in our approach. I think it's a self-funding business, right? I think it's a self-funding business where we can bring capital without dilution to Comstock Metals. And before we know it, it'll become a source of cash for the corporation, first, initially, to continue to fund its growth. Because remember, if you talk about three facilities, that's 300,000 tons. That's beautiful. Look at that cash profile.

Corrado F. De Gasperis: A little bit of a balancing act.

Corrado F. De Gasperis: Mike as we have many many variables.

Corrado F. De Gasperis: Right that ensures our success it ensures our wherewithal to move forward.

Corrado F. De Gasperis: So, let's dig a little deeper into that here's a multipart question.

Corrado F. De Gasperis: How much capital has been committed to each business segment and how much future investment is needed for each where will these funds come from.

Corrado: But there's a million ton market staring us in the face. With mining, maybe it's a quickie and a simple one. We don't spend $2 million a year, you know, on our mining resources. We have excellent technical resources, we have an amazing land position, and mineral estate. And we right now have revenue that just about matches that number, right? So mining is sort of covered. We have not approved future funding and future development of the mineral assets.

So corrado I think it might make sense to perhaps kickoff with the monetization strategy around your metals business.

Corrado F. De Gasperis: Well I'll do that so so.

In metals case in metals is it's just such a great business right, the cash projections, which I I concur wholeheartedly with belly I mean, sometimes I feel like biting my tongue, we're being conservative we're being practically conservative we're looking at the real risk of commercializing 234.

Corrado: We've been developing the models and expanding the resources, either through our existing fixed costs or through the GenMAT effort. When we monetize the assets, we will then trigger, right, the advancement of those mining assets into production. And the same can be said for fuels.

Corrado F. De Gasperis: <unk>.

Corrado F. De Gasperis: That are new right that are that are pioneering but.

Corrado F. De Gasperis: We already understand the capital profile, we understand the locations that they're in and as I mentioned, we've already tapped into the availability of USDA loans the availability of <unk>.

Corrado: Now fuels takes a larger amount of our capital; you could easily assign six to $8 million of spend relating to fuels. What I love about the fuels profile, though, is most of that spend is innovation, engineering, research, development, business development, and commercialization. It's fun, we have almost no administrative costs in there; it's all moving the business to the finish line.

Corrado F. De Gasperis: Nevada industrial bonds, and we didn't model the point that Billy make right. We didn't model that working capital here is a source of cash not a use of cash right. So we're being very conservative in our approach I think it's a self funding business right I think it's a self funding business, where we can bring the capital without dilution.

Corrado: And so we need to keep that funding. There are things that we would want to advance faster, like the demonstration facilities in Wisconsin. I mean, if we had the wherewithal, we would build a larger demonstration facility ourselves. The good news is we're not going to have to do that.

Corrado F. De Gasperis: To Comstock metals.

Corrado F. De Gasperis: And before we know it will become a source of cash for the Corporation first initially to continue to fund its growth.

Corrado F. De Gasperis: Remember if you talked about three facilities. That's 300000 tonne that's beautiful look at that cash profile, but theres a million ton market staring us in the face.

Corrado: We've got at least two customers who want to do that and build the first few production facilities, so I believe that capital will come right into the subsidiary. And it'll unlock value because if you invest directly into the Comstock fuel subsidiary, then we have to value that subsidiary, and the value of that subsidiary will have zero correlation to the current value of the enterprise. However, once we value that subsidiary, and that capital comes into that subsidiary, it will do, it will, and should directly correlate with an increased value of the enterprise. Hopefully, that's coming across as sensible.

Corrado F. De Gasperis: With mining maybe it's a quickie in a simple one we don't spend a million dollars a year.

In our mining resources, we have excellent technical resources, we have an amazing lamb.

Corrado F. De Gasperis: Our land position mineral estate.

Corrado F. De Gasperis: And we right now have revenue that just about matches that number right. So mining is sort of covered.

Corrado F. De Gasperis: Have not accrue future funding and future development of the mineral assets, we've been developing the models and expanding the resources either through our existing fixed costs or through the genmab effort.

Corrado F. De Gasperis: When we monetize the asset.

Corrado: And what I want to just throw out is that if you start thinking about our investments, Genmat is in the exact same position as fuel. Genmat is commercializing with industry-scale partners. Genmat will be soliciting capital from sophisticated third parties, and Genmat will set a valuation in the same way that fuels will set a valuation at their level. And then people will know we own a third, you know, of that value. But if you want to talk real dollars, you know, we've committed another $4 million to Genmat for the rest of this year.

Corrado F. De Gasperis: We will then trigger right.

Corrado F. De Gasperis: The advancement of those mine assets into production and the same can be said for fuels now fuels takes a larger amount of our capital you could you could assign easily $6 million to $8 million of spend relating to fuels, what I love about the fuels profile, though is most of that spend is is innovation.

Corrado F. De Gasperis: Engineering research development and business development and commercialization, it's fun, we have almost no administrative cost in there. It's all moving the business to the finish line and so we need to keep that funding. There are things that we would want to advance faster like the demonstration facilities.

Corrado: We've committed another million dollars, or a million in total, actually, for Ren fuel, 1 million a year for three years. And we've committed about 2 maybe 3 million for these new partners that are bringing new breakthroughs that are enhancements to our existing platform. So it's not new in the sense of left field; it's new in the sense of home base. You know, and that's where we're expecting to really take our lead and move it to a whole new level.

Corrado F. De Gasperis: In Wisconsin.

Corrado F. De Gasperis: If we had the wherewithal we would build.

Corrado F. De Gasperis: Demonstrate a larger demonstration facility ourselves. The good news is we're not gonna have to do that we've got at least two customers who want to do that and build the first few production facilities. So I believe that capital will come right into the subsidiary.

Corrado F. De Gasperis: And it will unlock value because that if you invest directly.

Corrado F. De Gasperis: Directly into the Comstock fuel subsidiary that we have to value that subsidiary and the value of that subsidiary will have zero correlation.

Corrado: No, it does, Corrado. And perhaps just at a high level, you know, what are generally the monetization strategies? I mean, can we look at, you know, capital, you know, being brought in on the corporate level; capital being brought in on the project level, from strategics, you know, it's owning, perhaps a smaller piece of something much bigger. You know, these projects, there are many projects that we're all looking to roll out here over the next, you know, several years. Big picture again. So perhaps you can just allow them.

Corrado F. De Gasperis: To the current value of the enterprise however, once we value that.

Corrado F. De Gasperis: That subsidiary and that capital comes into that subsidiary.

Corrado F. De Gasperis: It will and should directly correlate.

Corrado F. De Gasperis: Value of the enterprise.

Corrado F. De Gasperis: Some that's coming across.

Corrado F. De Gasperis: Sensor goal and what I wanted to just throw out is that.

Corrado F. De Gasperis: If you start thinking about our investments 10 minutes in the exact same position as fuels Gen.

Corrado F. De Gasperis: Jen Matt.

Corrado F. De Gasperis: Is commercializing with industry scale partners.

Corrado: Strategies. I think I think, yeah, I think a simple summary of it would be to today. The readiness has been such that we've had to fund the businesses, you know, from the corporation. And as you see, that requires and has required the issuance of equity and some amount of debt, you know, to do that. Now, we're seeing that they're getting to the point of maturity where they can self-finance. Billy summarized it very well for metals.

Corrado F. De Gasperis: Jen, Matt will be soliciting capital from sophisticated third parties and Jen Matt will set a valuation in the same way that fuels, we will set a valuation at their level.

And then people will know we own a third.

Corrado F. De Gasperis: Of that value, but if you want to talk real dollars, we've committed another $4 million to Jen Matt for the rest of this year, we've committed another million dollars or $1 million in total actually for ran fuel $1 million a year for three years.

Corrado: It's right there for us. They've crossed the finish line. We now have empirical data. We can show revenue, we can show costs, and we can show projections. That's all we need, right, to start bringing that capital, fuels, and genmat; all we need is the commercial validations, right, they're happening already, with industry scale and sophisticated, early adopting customers. And so that is all we need, you know, in addition to the business plans, which are fully developed, right, internally, to start bringing that capital in at the subsidiary level. So that's what's going to happen. The beautiful compliment will be if we can get some asset sales done a little more timely here, releasing all the pressure on everybody's minds, but it's coming.

Corrado F. De Gasperis: And we've committed about two maybe $3 million for these new partners that are bringing new breakthroughs.

Corrado F. De Gasperis: Our enhancements to our existing platform. So it's not new in the sense of left field. It it's new incentive homebase.

Corrado F. De Gasperis: <unk>.

Corrado F. De Gasperis: And that's where we're expecting to really take our lead and move it to a whole another level. So I'm not sure if that covers the question fully.

Speaker Change: No it does corrado and perhaps just high level.

Speaker Change: What are generally the monetization strategies I mean can we look at theirs.

Speaker Change: Capital being brought in on the corporate level, there's capital being brought in on the project level from strategics.

Corrado: Trevor, let me just add, you know, we talked last quarter when we did Upload 24 about our commercialization process, right? It's a four-stage process. We innovate, we develop, we engineer, and we activate. Activate is where these things come into play, right?

Speaker Change: It's owning.

Speaker Change: Perhaps a smaller piece of something much bigger.

Speaker Change: These projects, there's many projects that we're all looking to roll out here over the next several years Big picture again.

Corrado: And as Corrado said, there are a lot of different ways to do it, but it's all about bringing outside capital, bringing outside partners into this business. Developing and engineering is about getting things ready for that, making them attractive, filling in all the pieces. Especially in fuels today, a lot of these partnerships, these deals we're doing with other third parties, right? Significantly accelerate our ability to get to that; every single one of them is like a leap forward in what we could do otherwise on our own. And it's really putting us into a tremendous position in the market with a lot of connectivity.

Speaker Change: So perhaps you can just elaborate on the different types of strategies.

Speaker Change: Yeah, I think the simple summary of it would be today right. The readiness has been such.

Speaker Change: That we've had to fund the businesses from the Corporation.

Speaker Change: As you see that requires and has required the issuances of equity in some amount of debt to do that now we're seeing that they are getting to the point of maturity, where they can self financed Billy summarized it very well for metals, it's right there for us They cross the finish line. We now have empirical data we can show <unk>.

Corrado: that we're activating, and activation is often synonymous with monetization.

Speaker Change: Revenue, we can show cost we can show projections that that's all we need to start bringing that capital land.

Corrado: You know, and shareholders keep on hearing about the progress with metals. And, you know, it's great, Billy, that you showed a picture of the facility. There's a little bit more of a tangible look at, you know, what you guys are, you know, embarking on. So, you know, I mean, do you anticipate maybe videos, more pictures as the operations develop, at least in metals?

Speaker Change: Fuels and Genmab, all we need is the commercial validation striped theyre happening already with industry scale and sophisticated early adopting customers and so that is all we need.

Speaker Change: In addition to the business plans, which are fully now developed internally.

Billy: Yeah, absolutely. Our marketing team was out at Metals last week filming a video. So expect that coming here in the... I'm not exactly sure of the date, but let's say in the next few months. Coming soon, yeah, coming soon.

Speaker Change: Internally to start bringing that capital at the subsidiary level. So that's what's going to happen. The beautiful complement will be if we could get some asset sales done a little more time, we hear it release, all the pressure on everybody's minds, but it's coming.

Billy: Coming soon, yeah, coming soon.

Speaker Change: Thanks, Trevor let me just add you know we talked at last quarter. When we did upload 24 about our commercialization process right and it's a four stage process. We innovate we develop we engineer we activate.

Unknown Attendee: Okay, let's see what else we have. Are you able to elaborate on the March 1st securities purchase agreement with an R&D company?

Corrado: Yeah, good question. So look, this is, and I want to give people a little bit of a feel for how we work. Okay, we're extremely focused. You know, if people come into my office with an acquisition idea or a diversification idea, I'm grumpy, like, I don't want to hear about it, right?

Speaker Change: Activators, where these things come into play right into <unk>. So there's a lot of different ways to do it but it's all about bringing outside capital, bringing outside partners into this business.

Speaker Change: Developing and engineering is about getting things ready for that making them attractive filling in all the pieces.

Speaker Change: Especially in fuels today, while these partnerships. These deals we're doing with other third parties right significantly accelerate our ability to get to that point. So every single one of them is like a leap forward and what we could do otherwise on our own.

Corrado: We're focused, right? We're commercializing fuels, we're commercializing metals. You know, Gen Mat is rocking.

Corrado: Okay, we were really, really focused. Now, when when a breakthrough occurs, when something happens in the markets, when a white paper is published, or a technology is revealed, that has a direct and potentially immediate impact on what we're doing, we can't ignore it. You know, we just can't ignore it. Right? And, and so to give a little bit of color. Our innovation team probably spent five or six months researching, analyzing, assessing, what is the implication of this? You know, is it bullshit, right? Is it something that is going to have a marginal or, or, you know, slightly incremental impact? Is it a game changer?

Speaker Change: It's really been into a tremendous position in the market with a lot of connectivity that we're activating inactivation often is is synonymous with monetization.

Speaker Change: And shareholders keep on hearing about the progress with metals and <unk>.

Speaker Change: Great Billy that you showed a picture of the facility. If there is a little bit more of a tangible.

Speaker Change: Look at what you guys are.

Barking on so I mean do you anticipate maybe video is more pictures as the operations develop at least at metals.

Billy: Yes, absolutely.

Billy: Our marketing team was out at metals last week filming of video so expect that coming here in the.

Billy: I'm not exactly sure the date, but let's say the next few months coming screw India coming soon.

Speaker Change: That's great.

Corrado: Is it potentially a game changer that we cannot ignore? And even if, let's just say, even if all of those gates were answered positively in the sense of, you know, we should do this, is it $20 million? Is it $50 million?

Yeah.

Speaker Change: Okay, let's see what else we have here.

Speaker Change: Yeah.

Speaker Change: Are you able to elaborate on the March for a securities purchase agreement with a R&D company.

Speaker Change: Yeah. Good question so.

Speaker Change: And I wanted to I wanted to give people a little bit of a feel for how we work okay.

Corrado: Then it's a no starter for us. We don't we don't have the capacity, right? So everything we think about, everything we do is, is correlated to our finite capacity.

Speaker Change: We're extremely focused.

If people come into my office with.

Speaker Change: An acquisition idea.

Speaker Change: Or a diversification idea I'm grumpy like I don't want to hear it right, we're focused strike or commercializing fuels, we're commercializing metals.

Corrado: If for a million dollars or $2 million, we could advance something to TRL 3, to TRL 5, to TRL 6, that will dramatically change the profile of what we're bringing forward, then we do it. Right. And so it's not, it's not something we could talk specifically about. And I want to just send a clear message that this is not something that's certain. Okay.

Speaker Change: Jen Matt as rocket. Okay. We are really really focused now when when a breakthrough of curves when something happens in the market when when a white papers published or a technology has surfaced that has direct and potentially immediate <unk>.

Corrado: But it's something that we would be literally fools not to allocate, you know, a million or $2. If it truly brings us to the holy grail, right, if it brings us to this possibility of prosperity through petroleum, we need to be on the front line of it. And I'm proud, I gotta say, even if this didn't work out, I'm proud of the competence of our team. It's world class, we're talking to world class people, we're talking to world class institutions. Renfuel is an example of that, and people are going to know very, very soon that Jetman is an example of that, too. But in the fuels and the sterification, you know, catalytic esterification process discussions, Renfuel's name is always at the top of the list; we couldn't be prouder to be partnered with them. So I hope that's helpful.

Speaker Change: Packed on what we're doing.

Speaker Change: Can't ignore it.

Speaker Change: We just we can't ignore right and and so to give a little bit of color.

Speaker Change: Our innovation team probably span.

Speaker Change: Five or six months researching analyzing and assessing what is the implication of this.

Speaker Change: And bullshit right is it something that is going to have a marginal or or slightly incremental impact is it a game changer is it potentially a game changer that we cannot ignore and even if let's just say even if all of those.

Speaker Change: Gates.

Speaker Change: Were answered positively in the sense of.

Speaker Change: We should do that.

Billy: Yeah, let's just add procedurally, like, you know, we talked again last quarter, and you know, if you want more color, rewatch the video with Kevin Kreisler, our Chief Technology Officer, right? We really have an innovation network we're working with. You know, before we get to the point of making this kind of investment in something, there's a tremendous amount of work that our team is doing, collaborating with these other groups, looking for solutions, looking for ideas, looking for things we can really bring to market someday soon, right?

Speaker Change: Is it $20 million or $50 million, then it's a nonstarter for us. So we don't we don't have the capacity right. So everything we think about everything we do is is.

Speaker Change: Is correlated to our finite capacity.

Speaker Change: Yes, $4 million or $2 million, we could advance to.

Speaker Change: <unk> III TRL five to TRL six.

Speaker Change: That will dramatically change the profile of what we're bringing forward.

Billy: Renfield's another good example of that. We were working with Renfield for over a year before, you know, anybody here really heard of them before we started talking about them, right? There's a lot of deep work going into these things, probing, finding synergies. And you know, in this case, as is disclosed in the filing, developing new technology, our team contributing to some of the stuff this group was working on, really proving out the thesis early on before we commit any capital, and I would

Speaker Change: Then we do it right and so it's it's not it's not something we could talk specifically about and I wanted to send a clear message is not something thats certain okay, but it's something that we would be literally fools not to allocate a.

Speaker Change: $1 million or $2.

Speaker Change: If it is a truly brings us to the Holy Grail right. If it brings us to this possibility of cost parity with petroleum we need to be on the front line, a bit and I and I'm proud I got to say, even if this didn't work out.

Corrado: And I would also add to that, our bias is not to be stealthy, like certainly my bias is not to be stealthy, right? But it doesn't serve any purpose, right, to discuss things that aren't going to be tangible and aren't going to be relevant to our shareholders. And even within our own organization, we compartmentalize it, right? We don't want David Winsness and the commercialization team distracted by things that aren't right in front of them right now, right? But when we can discuss it, we absolutely will, and we want to.

Speaker Change: <unk>.

Speaker Change: Our competency of our team its world class, we're talking to a world class people, we're talking to world class institutions. When fuel is an example of that people are going to know very very soon.

Speaker Change: And that is an example of that too.

Speaker Change: In the fuels and esterification catalytic esterification process discussions when feels names are always at the top of the list, we couldnt be prouder to be partnered with them. So I hope that's helpful.

Unknown Attendee: Coming up on the hour here, so let's look at just one more question, and then I'll pass it over to you for summary comments. Any thoughts on a stock split? I think it's a little premature to talk about that, but I'll put the ball on your court to just address any sort of reverse stock. Yeah, no, no, we don't.

Speaker Change: Now, let's just procedurally like we.

Again last quarter.

Speaker Change: And if you want more color Rewatched the video with Kevin Chrysler, Our Chief Technology Officer, right, we really have an innovation network, we're working with.

Speaker Change: Before we get to the point of making this kind of investment and something there's a tremendous amount of work that our team is doing collaborating with these other groups looking for solutions looking for ideas looking for things, we can really bring to market someday soon alright rental is another. Good example of that we were working with Ren fuel for over a year before.

Corrado: Yeah, no, no, we don't have any notions of that. You know, there are five listing requirements on the New York Stock Exchange, and we meet all five of them, right? The easiest one to meet is typically the price, and the other four are really substantive.

Speaker Change: Anybody here really heard of them before we started talking about right. There is a lot of deep work going into these things probing finding synergies and in this case.

Corrado: So there are no issues with listing, and there's no concept of a stock split, or reverse stock split, in our minds at all. You know, as we sit here and speak. So, no, we love our listing, and we love our liquidity, and we expect it just to get better.

Speaker Change: So it's in the filing.

Speaker Change: Developing new technology, our team contributing to some of the stuff. This group is working on really proving out the thesis early on before we commit any capital to it.

Corrado: So Corrado, could you please provide a summary of Comstock's near-term milestones that investors can look forward to? Yeah, no, thanks.

Speaker Change: And I would also add to that our bias is not to be stealth like certainly my bias to itself right, but it doesn't it doesn't serve any purpose right to discuss things that arent going to be tangible and aren't going to be relevant to our shareholders and.

Corrado: Yeah, no, thanks, Trevor, for all of that. We appreciate all those questions. And as you said earlier, if we didn't get to some of your questions, we'll follow up and look forward to answering them all. But just to wrap up, let me summarize what I would call our highest objectives, I guess in reverse order, starting with metal. We're going to run this facility up to three shifts by this summer, while initiating the expansion in Silver Springs with the existing manufacturing complex. We've already filed permits for the storage expansion. And we're preparing the permits for the facility scale expansion. So it's just grow, grow, grow.

Speaker Change: And even within our own organization, we compartmentalize it right, we don't want David weakness in the commercialization team distracted by things that aren't right in front of US right now right, but but when when we can discuss it we absolutely well and we want to.

Speaker Change: Okay.

Speaker Change: Summing up on the hour here so.

Speaker Change: Look just one more question and then I'll pass it over to you for summary comments.

Corrado: From a fuels perspective, we're going to secure and announce the adoption of our technology with industry leading partners and customers, possibly on every continent, starting with the Americas and including a highly valuable monetization of Comstock fuels. As I said, GenMap is going to do the same exact thing, commercializing with industry leading partners and customers and monetizing its value through third party capital. For mining, we will monetize, transact, and generate cash in the north, and develop and publish a highly economical and valuable mine plan for ultimate production in the south.

Speaker Change: Any thoughts on that.

Speaker Change: But I think it's a little premature to start talking about that but.

Speaker Change: Paul in your court to just address any sort of reverse stock split I should say no no no. We don't have any notions of that.

Paul: There's five listing requirements of the New York stock exchange and and we meet all five of them right.

Paul: The easiest one to meet as typically the price and the other four are really subset. So there's no issues with listing and Theres no concept of stocks were reverse stock split in our mind at all as.

Corrado: We're going to continue innovating towards this holy grail, cost parity with petroleum, while expanding our network of innovation partners, and they and the technology will be world-leading. Lastly, eye on the prize, monetize the $60 million in assets, and put this balance sheet discretion to bed. We appreciate everyone's interests, and we look forward to many updates between now and our next call in July.

Paul: As we sit here and speak.

Speaker Change: So.

Speaker Change: No we love, we love our listing and we love our liquidity and we expect it just to get better.

Speaker Change: So corrado could you. Please provide a summary of comp stocks near term milestones that investors can look forward to.

Corrado F. De Gasperis: Yeah, no. Thanks, Trevor for all of that we appreciate all those questions and as he said earlier, if we didn't get to some of your questions we'll follow up.

Operator: Thanks, Corrado and Billy, and thanks to everyone for joining Comstock's first quarter business update and outlook. As a reminder, please keep an eye out for Comstock's brief Q2 investor survey if you have not already filled it out. This will be generated and completed and announced and posted on the company's investors section shortly after the end of the Q2 quarter. Again, a link to that is at the top of the investors section.

Corrado F. De Gasperis: To answering them all.

Corrado F. De Gasperis: But just to wrap up let me summarize what I would call our highest objectives I guess in reverse order starting with metal.

Corrado F. De Gasperis: We're going to run this facility up to three shifts by the summer while hitting the expansion in silver springs as the existing.

Corrado F. De Gasperis: Manufacturing complex.

Corrado F. De Gasperis: We've already filed permits for the storage expansion and we're preparing the permits for the facility scale expansion. So at Cisco grow grow from the fuels perspective, we're going to secure and announced the adoption of our technology with industry, leading partners and customers, possibly on every continent, starting with the Americas, including a highly valuable monetization of <unk>.

Operator: Also, today's recording is going to be present on that page as well. If you have any additional questions that have not been addressed today, please feel free to email us at ir at comstockinc.com, and management and I will do our best to get back to you guys. Again, that's ir at comstockinc.com. Thanks again. That concludes today's presentation. We look forward to keeping you all posted on Comstock's developments throughout the rest of the year.

Corrado F. De Gasperis: Comstock fuels as I said, Jim is going to do the same exact thing commercializing with industry, leading partners and customers and monetizing the value of third party capital for mining, we will monetize transact and generate cash in the north.

Corrado F. De Gasperis: And develop and publish a highly economic and valuable mine plan or ultimate oxygen in the south.

Operator: Have a great day. Thanks, everyone.

Corrado F. De Gasperis: We're going to continue innovating towards this holy Grail cost parity with petroleum, while and by expanding our network of innovation partners and they and the technology will be we're beating lastly eye on the prize monetize a $60 million of asset, but this balance sheet discussion to bed. We appreciate every.

Corrado F. De Gasperis: Ones interest and we look forward to many updates and between now and our next call in July.

Speaker Change: Thanks Travis.

Travis: Thanks, Corrado and Billy and thanks to everyone for joining stocks first quarter business update and outlook.

Corrado F. De Gasperis: As a reminder, please keep an eye out for Comstock <unk> Q2, Investor Survey, if you have not already filled it out.

Corrado F. De Gasperis: This will be generated and completed and announced and posted on the company's investors section.

Corrado F. De Gasperis: Shortly after the end of the Q2 quarter.

Corrado F. De Gasperis: Again, a link on for that is at the top of the.

Corrado F. De Gasperis: The investors section also todays recording is going to be.

Corrado F. De Gasperis: Isn't on that page as well.

Corrado F. De Gasperis: If you have any additional questions that have not been addressed today. Please feel free to email us at IR at Comstock, Inc. Dot com.

Corrado F. De Gasperis: And management and I will do our best effort to get back to you guys again Thats IR at Comstock, Inc. Dot com. Thanks again that concludes today's presentation. We look forward to keeping you all posted on comp stocks developments throughout the rest of the year.

Speaker Change: Great day, thanks, everyone.