Q2 2025 Comstock Inc Earnings Call
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The actions that transformational transaction.
Colorado to gas, Chris Corrado, you may begin.
Thanks, <unk> and welcome Jonathan Zach and all the investors and stakeholders interested in Comstock.
For the second quarter results and update going to use some slides so for those that can see the webcast I think it'll be very effective for those who are just on a dial and I will try to voice over what we're looking at so that you can get the full gist of of the update.
It's outstanding and there is a heavy heavy emphasis now following the separation of bio Liam back in May on our metals right I think in our in our January shareholder letter, we said the real objective of getting through 2025 was in large part of.
Speaker #2: Good afternoon, and thank you for joining Comstock Inc.'s second quarter 2025 earnings call and business update. I'm Zach Spencer, Director of External Relations. Today is Thursday, August 14th, 2025.
Zach Spencer: Good afternoon, and thank you for joining Comstock Inc.'s second quarter 2025 earnings call and business update. I'm Zach Spencer, Director of External Relations. Today is Thursday, August 14th, 2025. We are streaming live, and this session is being recorded. A recording will be posted shortly after we adjourn in the Investor Relations section of our website. Today, we filed our Form 10-Q for the quarter ended June 30th, 2025, and issued a press release summarizing second quarter results. Both documents are available on our website. As a reminder, Comstock is listed on NYSE American with the ticker LODE. L-O-D-E. Joining me today is Corrado Gasperis, Comstock's Executive Chairman and Chief Executive Officer, and Judd Merrill, Comstock's Chief Financial Officer. We received more than 40 questions in advance of the call.
Certain transformational transactions that would result in a public Nevada based metals company.
And in Oklahoma based oil and gas company, both certainly at the highest end of renewable witty.
Speaker #2: We are streaming live, and this session is being recorded. A recording will be posted shortly after we adjourn in the investor relations section of our website.
And so that's what we're getting to its it's a remarkable thing completing that separation of my oleum in may getting them independently and separately funded by strategic investors, we understand through the financial accounting and reporting process, but we will in the near future before a deconsolidation.
Speaker #2: Today, we filed our Form 10-Q for the quarter ended June 30, 2025, and issued a press release summarizing second quarter results. Both documents are available on our website.
Speaker #2: As a reminder, Comstock is listed on NYSE American with the ticker LODE, L-O-D-E. Joining me today is Corrado Gasperis, Comstock's Executive Chairman and Chief Executive Officer, and Judd Merrill, Comstock's Chief Financial Officer.
Getting them also from our financials. We think that's important so that people can have a clear view of what the Comstock metals in AR and the metal operations look like forward looking and.
Real time as well as with the fuels business looks like as I said, we will make some forward looking statements, but I'd like to take you through a presentation.
Speaker #2: We received more than 40 questions in advance of the call. If you have additional questions during the call, please use the Zoom Q&A window, and we will address as many as time allows.
Of you know some aspects of corporate and the recent transactions that we just completed as well as a deep dive into the metal recycling business has taken off its moving very very fast and the recent transaction that we just completed.
Zach Spencer: If you have additional questions during the call, please use the Zoom Q&A window, and we will address as many as time allows. Today's discussion will include forward-looking statements. Actual results may differ materially due to risks and uncertainties detailed in our SEC filings. Full risk disclosures can be found in our filings on the Investor Relations page and on the SEC website. With that, it is my pleasure to introduce our Executive Chairman and Chief Executive Officer, Corrado Gasperis. Corrado, you may begin.
Speaker #2: Today's discussion will include forward-looking statements. Actual results may differ materially due to risks and uncertainties. Detailed in our SEC filings. Full risk disclosures can be found in our filings on the investor relations page and on the SEC website.
Fully funded us through industry scale operations being up and profitable. So it was an absolutely remarkable.
Offering that we just completed its fully funded as of today we.
Speaker #2: With that, it is my pleasure to introduce our Executive Chairman and Chief Executive Officer, Corrado Gasperis. Corrado, you may begin.
We ended up pre offering with just over 35 5 million shares outstanding.
We issued 13.3 million shares as part of this offering bringing in a gross proceed of $30 million net proceeds of 27 $6 million on a pro forma basis and combined with some of the incredible proceeds that came in in may for by OEM.
Speaker #3: Thanks, Zach, and welcome, Judd and Zach, and all the investors and stakeholders interested in Comstock. For this second quarter results and update, I'm going to use some slides.
Corrado Gasperis: Thanks, Zach, and welcome, Judd and Zach and all the investors and stakeholders interested in Comstock for the second quarter results and update. I'm going to use some slides. So for those that can see the webcast, I think it'll be very effective. For those who are just on a dial in, I will try to voice over what we're looking at so that you can get the full gist of the update. It's outstanding, and there's a heavy, heavy emphasis now following the separation of Biolium back in May on our metals. Right? I think in our January shareholder letter, we said the real objective of getting through 2025 was in large part a certain transformational transactions that would result in a public Nevada-based metals company and an Oklahoma-based oil and gas company, both certainly at the highest end of renewability. And so that's what we're getting to.
Speaker #3: So for those who can see the webcast, I think it will be very effective for those who are just on a dial-in. I will try to voice over what we're looking at so that you can get the full gist of the update. It's outstanding, and there's a heavy, heavy emphasis now, following the separation of Bioleum back in May, on our metals, right?
That puts our cash position at over $45 million and maybe most remarkably as part of this offering we got our largest debt holder.
Who happens to also be one of our largest equity holders to agree to exchange and pay down those promissory notes with equity remarkably. They also participated in this equity offering so a very very strong testament to one of our largest equity holders not.
Speaker #3: I think in our January shareholder letter, we said the real objective of getting through 2025 was, in large part, a certain transformational transaction that would result in a public Nevada-based metals company and an Oklahoma-based oil and gas company.
Not only on being happy to work with us to eliminate the debt, but also coming in with even more equity capital.
Speaker #3: Both certainly at the highest end of renewability and so that's what we're getting to. It's a remarkable thing completing that separation of Bioleum in May, getting them independently and separately funded by strategic investors.
For that and that was about $8 4 million in promissory notes. We also had a tail on those on convertible notes $2 $2 million. There were provisions in that agreement to redeem those for cash we ended up negotiating a slightly low.
Corrado Gasperis: It's a remarkable thing completing that separation of Biolium in May, getting them independently and separately funded by strategic investors. We understand through the financial accounting and reporting process that we will, in the near future, be fully deconsolidating them also from our financials. We think that's important so that people can have a clear view of what the Comstock metals and the metal operations look like, you know, forward-looking and real-time, as well as what the fuels business looks like. As Zach said, we will make some forward-looking statements, but I'd like to take you through a presentation of, you know, some aspects of corporate and the recent transactions that we just completed, as well as a deep dive into the metal recycling business. It's taken off. It's moving very, very fast.
Speaker #3: We understand through the financial accounting and reporting process that we will, in the near future, be fully de-consolidating them, also from our financials. We think that's important so that people can have a clear view of what the Comstock metals and the metal operations look like, you know, forward-looking and real-time, as well as what the fuels business looks like.
Sure premium meaningfully lower cash premium with some additional shares to extinguish those convertible notes I can say to you unequivocally those notes have been fully paid off as of this moment.
And we don't have an interest in any of those interim or bridge capital activities going forward. So we've been trying very very hard to get the businesses ready to get the business is commercial to start growing that revenue so that we could attract.
Speaker #3: As Zach said, we will make some forward-looking statements. But I'd like to take you through a presentation of, you know, some aspects of corporate in the recent transactions that we just completed, as well as a deep dive into the metal recycling business.
More broader deeper institutional capital and that's what we just did in all of my 30 years of doing this it was one of the most.
Speaker #3: It's taken off. It's moving very, very fast. In the recent transaction that we just completed, it fully funded us through industry-scale operations, making us up and profitable.
Corrado Gasperis: And the recent transaction that we just completed fully funded us through industry-scale operations being up and profitable. So it was an absolutely remarkable offering that we just completed. It's fully funded as of today. We ended up pre-offering with just over 35 and a half million shares, outstanding. We issued 13.3 million shares as part of this offering, bringing in a gross proceed of $30 million, net proceed of $27.6 million on a pro forma basis, and combined with some of the incredible proceeds that came in in May for Biolium, that puts our cash position at over $45 million. And maybe most remarkably, as part of this offering, we got our largest debt holder, who happens to also be one of our largest equity holders, to agree to exchange and pay down those promissory notes with equity. Remarkably, they also participated in this equity offering.
Incredible successful pervasive Lee well received.
Speaker #3: So it was an absolutely remarkable offering that we just completed. It's fully funded as of today. We ended up pre-offering with just over $35.5 million shares outstanding.
Our offerings and to say that we have from markedly expanded broadened and deepened what we would say it was an already good.
Represented capital base.
Speaker #3: We issued 13.3 million shares as part of this offering. Bringing in a gross proceed of $30 million net proceed of $27.6 million. On a pro forma basis, and combined with some of the incredible proceeds that came in in May for Bioleum, it puts our cash position at over $45 million.
What we had was necessary what we had was not sufficient we now have a foundation.
That is not rock I would say, it's titanium most importantly, most importantly, we funded such that we have a clear line of sight to metals, bringing their first facility online we have a clear line of sight of that facility turning profitable and we have a clear line of sight.
Speaker #3: And maybe most remarkably, as part of this offering, we got our largest debt holder who happens to also be one of our largest equity holders, to agree to exchange and pay down those promissory notes with equity, remarkably they also participated in this equity offering.
Are not meeting or equity to go to facility two and beyond try we're going to give you a deep dive on the metals business and I'm reasonably certain you're going to like a lot of what's happening and what fortunato has created before I do that I want to say that.
The bankers who.
We've been working with for quite a bit here.
Speaker #3: So very, very strong testament to one of our largest equity holders. Not only being happy to work with us to eliminate the debt, but also coming in with even more equity capital for that end.
Corrado Gasperis: So a very, very strong testament to one of our largest equity holders, not only being happy to work with us to eliminate the debt, but also coming in with even more equity capital, you know, for that end. That was about $8.4 million in promissory notes. We also had a tail on those convertible notes, $2.2 million. There were provisions in that agreement to redeem those for cash. We ended up negotiating a slightly lower premium, meaningfully lower cash premium with some additional shares to extinguish those convertible notes. I could say to you unequivocally, those notes have been fully paid off as of this moment, and we don't have an interest in any of those interim or bridge capital activities going forward.
Ironically, when we first met them they were telling us we werent ready, we werent ready, we werent ready in and around the <unk> separation.
Eyebrows went up and said it looks like you're already in.
And they also have an option of.
Speaker #3: That was about $8.4 million in promissory notes. We also had a tail on those convertible notes, $2.2 million there were provisions in that agreement to redeem those for cash.
A 15% over allotment option that if they exercise their option would result in 2 million more shares and $4 5 million more dollars in proceeds we will see how that turns up as we go forward here welcoming jud to back into the family as our CFO.
Speaker #3: We ended up negotiating a slightly lower premium, meaningfully lower cash premium with some additional shares to extinguish those convertible notes. I can say to you, unequivocally, those notes have been fully paid off as of this moment.
<unk>.
He has already made an impact from day one.
Settling in huge part of that impact is around the financial organization around the capital needs. Another huge part of that impact is just freeing up a tremendous amount of my capacity and so that's extremely welcome I think things will move faster.
Speaker #3: And we don't have an interest in any of those interim or bridge capital activities going forward. So we've been trying very, very hard to get the businesses ready to get the businesses commercial, to start growing that revenue so that we could attract more broader deeper institutional capital and that's what we just did.
Corrado Gasperis: So we've been trying very, very hard to get the businesses ready, to get the businesses commercial, to start growing that revenue so that we could attract more, broader, deeper institutional capital. And that's what we just did. In all of my 30 years of doing this, it was one of the most incredible, successful, pervasively well-received offerings. And to say that we've markedly expanded, broadened, and deepened what we would say was an already good represented capital base. You know, what we had was necessary. What we had was not sufficient. We now have a foundation that is not rock. I would say it's titanium. Most importantly, we funded such that we have a clear line of sight to metals bringing their first facility online.
With that capacity and with our ability to do these things certainly with our funding and then Fortunato, who has been really the nuts and bolts Foundation top bottom.
Building this metal recycling business and some of the incredibly novel and unique technology that we have and I'm going to really emphasize that here in this discussion so.
Speaker #3: In all of my 30 years of doing this, it was one of the most incredible, successful, pervasively well-received offerings. To say that we've markedly expanded, broadened, and deepened what we would say was an already good-represented capital base.
So comstock metals is is our business that is recycling solar panels. Some of you. Many of you know that we started in the battery metal recycling arena. We built the system, we were producing some pretty damn good black mass, but we were struggling with getting to battery grade metals.
Speaker #3: You know, what we had was necessary; what we had was not sufficient. We now have a foundation that is not rock. I would say it's titanium.
In other words struggling to get to saleable metals, we know a lot of people in the industry to this day are still struggling to get the battery grade metals, and we went and looked for a technology that can help us with some of these laminates and plastics and glues and we found it Unfortunately I'm going to go deeper into that in a minute.
Speaker #3: Most importantly, we have funded such that we have a clear line of sight to Metals bringing their first facility online. We have a clear line of sight of that facility turning profitable, and we have a clear line of sight of not needing more equity to go to facility two and beyond, right?
Corrado Gasperis: We have a clear line of sight of that facility turning profitable, and we have a clear line of sight of not needing more equity to go to facility two and beyond. Right? We're going to give you a deep dive on the metals business, and I'm reasonably certain you're going to like a lot of what's happening and what Fortunato has created. Before I do that, I want to say that, you know, the bankers who we've been working with for quite a bit here, ironically, when we first met them, they were telling us we weren't ready, we weren't ready, we weren't ready.
But what when we founded his comment to us was.
I don't think you should be focused on batteries. The industry has a problem the industry has multiple problems.
Speaker #3: We're going to give you a deep dive on the metals business and I'm reasonably certain you're going to like a lot of what's happening and what Fortunato's created.
One is they're all chasing the same batteries and they're treating these batteries like they are extremely valuable assets and extremely valuable commodities and that doesn't pencil.
Speaker #3: Before I do that, I want to say that, you know, the bankers who we've been working with for quite a bit here ironically when we first met them, they were telling us we weren't ready, we weren't ready, we weren't ready.
If the total variable cost of these <unk>.
<unk>. These feedstocks are so high and if it's difficult to get your hands on them, it's not going to work, it's not going to work well that's for sure. So.
Speaker #3: In and around the Bioleum separation, you know, eyebrows went up and said, it looks like you're ready. And they also have an option of 15% over allotment option that if they exercise it at their option, would result in $2 million more shares and $4.5 million more dollars in proceeds we'll see how that turns up as we go forward here.
Corrado Gasperis: In and around the Biolium separation, you know, eyebrows went up and said, "It looks like you're ready." And they also have an option, a 15% overall allotment option, that if they exercised it at their option, would result in 2 million more shares and 4 and a half million more dollars in proceeds. We'll see how that turns up as we go forward here. Welcoming Judd to, you know, back into the family as our CFO. You know, he's already made an impact from day one, you know, settling in. A huge part of that impact is around the financial organization, around the capital needs. Another huge part of that impact is just freeing up a tremendous amount of my capacity. And so that's extremely welcome. I think things will move faster with that capacity and with our ability to do these things, certainly with our funding.
He said the entire world seems to be missing. This epidemic in end of life solar panels. These panels are coming out of the market so much faster than anybody even imagine that they would be.
So.
My first reaction to that was.
Solar panels threats.
Doesn't sound that sexy, what's so great about solar panels.
Speaker #3: Welcoming Judd to, you know, back into the family as our CFO. You know, he's already made an impact from day one, you know, settling in.
Number one.
There's millions of panels coming out of the market today at least a decade before anybody was expecting to millions of panels number two it's growing exponentially its going to be 10 times that number.
Speaker #3: A huge part of that impact is around the financial organization, around the capital needs. Another huge part of that impact is just freeing up a tremendous amount of my capacity.
Speaker #3: And so that's extremely welcome. I think things will move faster with that capacity and with our ability to do these things, certainly with our funding.
For years and.
It's in a major major environmental problem, where the states and the communities in the counties are already mobilizing to prevent these things from going into landfills and nobody is addressing this problem. So fast forward to today, yeah. It was two and a half years ago, we literally we literally take.
Speaker #3: And then Fortunato, who has been really the nuts, bolts, foundation, top, and bottom of building this metal recycling business, and some of the incredibly novel and unique technology that we have.
Corrado Gasperis: And then Fortunato, who has been really the nuts and bolts, foundation, top bottom of building this metal recycling business and some of the incredibly novel and unique technology that we have. And I'm going to really emphasize that here in this discussion. So Comstock Metals is our business that is recycling solar panels. Some of you, many of you know that we started in the battery metal recycling arena. We built a system. We were producing some pretty damn good black mass, but we were struggling with getting to battery-grade metals. We were, you know, in other words, struggling to get to saleable metals. We know a lot of people in the industry to this day are still struggling to get to battery-grade metals. And we went and looked for a technology that could help us with some of these laminates and plastics and glues.
These these solar panels, we take them from our customers and they pay us upfront a tipping fee $500 a ton to do want to receive intake from them their environmental liability their environmental problem that they don't have a solution for.
Speaker #3: And I'm going to really emphasize that here in this discussion. So Comstock Metals is our business that is recycling solar panels some of you, many of you know that we started in the battery metal recycling arena.
Speaker #3: We built a system, we were producing some pretty damn good black mass, but we were struggling with getting to battery grade metals. We were, you know, in other words, struggling to get to saleable metals.
Next week, we do not want those solar panels going into landfills. They will contaminate the ecosystem. They will contaminate the water system. Those those materials will lead <unk> into the system and be very very bad for our communities plus you're throwing away valuable commodities people.
Speaker #3: We know a lot of people in the industry to this day are still struggling to get to battery grade metals. And we went and looked for a technology that could help us with some of these laminants and plastics and glues.
Speaker #3: And we found it in Fortunato. I'm going to go deeper into that in a minute. But when we found it, his comment to us was, you know, I don't think you should be focused on batteries.
Corrado Gasperis: And we found it in Fortunato. I'm going to go deeper into that in a minute. But when we found it, his comment to us was, "You know, I don't think you should be focused on batteries. The industry has a problem. The industry has multiple problems. One is they're all chasing the same batteries, and they're treating these batteries like they're extremely valuable assets and extremely valuable commodities. And that doesn't pencil. If the totally variable cost of these batteries, these feedstocks are so high, and if it's difficult to get your hands on them, it's not going to work. It's not going to work well. That's for sure." So he said, "The entire world seems to be missing this epidemic in end-of-life solar panels.
Seem to be surprised when we tell them that there's over a 0.6 ounces of silver in every solar panel. There is aluminum theres also some critical in rare elements iridium manganese hilarious, depending on the types of panels.
Speaker #3: The industry has a problem. The industry has multiple problems. One is they're all chasing the same batteries and they're treating these batteries like they're extremely valuable assets and extremely valuable commodities.
Like there is very very valuable minerals. There. So so what we did was we brought in <unk> technology and we integrated this delamination process.
Speaker #3: And that doesn't pencil. If the total variable cost of these batteries, these feedstocks are so high, and if it's difficult to get your hands on them, it's not going to work.
Into our solution and then expanded it out and built an entire demonstration scale facility now there's four very very key things that we believe are novel that our technology does that nobody else can do the first is that we thoroughly destroy it.
Speaker #3: It's not going to work well. That's for sure. So he said, the entire world seems to be missing this epidemic in end-of-life solar panels.
Speaker #3: These panels are coming out of the market so much faster than anybody even imagined that they would be. And so at my first reaction to that was, solar panels, that's, you know, doesn't sound that sexy.
Corrado Gasperis: These panels are coming out of the market so much faster than anybody even imagined that they would be." And so my first reaction to that was, "Solar panels? That doesn't sound that sexy. What's so great about solar panels?" Well, number one, there's millions of panels coming out of the market today, at least a decade before anybody was expecting to. Millions of panels. Number two, it's growing exponentially. It's going to be 10 times that number, you know, in four years. And it's a major, major environmental problem where the states and the communities and the counties are already mobilizing to prevent these things from going into landfills, and nobody's addressing this problem. So fast forward to today, that was two and a half years ago.
At the molecular level, we're breaking carbon bonds and worth thermally, destroying these polymers. These laminates. These plastics such that they are broken down and ultimately reassembling with very very safe emission cotwo going up the stack. So we have air quality.
Speaker #3: What's so great about solar panels? Well, number one, there's millions of panels coming out of the market today. At least a decade before anybody was expecting to.
Controls, we have scrubbers, but we do not have any harmful emissions and we eliminate all the contaminant secondly, we don't harm the metals.
Speaker #3: Millions of panels. Number two, it's growing exponentially. It's going to be 10 times that number. You know, in four years. And it's an major, major environmental problem, where the states and the communities and the counties are already mobilizing to prevent these things from going into landfills.
We don't Carbonize, we don't.
Destroy we don't burn the metals in our process.
And to that point.
Laminates and plastics are sticking to the silver or sticking to the glass are sticking to the aluminum they're not favorable in fact, if you do that you're just generating new hazardous materials in the permitting regime that we work under wouldn't even allow them.
Speaker #3: And nobody's addressing this problem. So fast forward to today, that was two and a half years ago. We literally we literally take these solar panels, we take them from our customers and they pay us upfront a tipping fee.
Corrado Gasperis: We literally take these solar panels, we take them from our customers, and they pay us upfront a tipping fee, $500 a ton, to do what? To receive and take from them their environmental liability, their environmental problem that they don't have a solution for. Nextly, we do not want those solar panels going into landfills. They will contaminate the ecosystem. They will contaminate the water system. Those materials will leachate into the system and be very, very bad for our communities. Plus, you're throwing away valuable commodities. People seem to be surprised when we tell them that there's over 0.6 ounces of silver in every solar panel. There's aluminum. There's also some critical and rare elements: iridium, manganese, tellurium, depending on the types of panels, germanium. Like, there's very, very valuable minerals there.
So we have a zero landfill solution because those aluminum's those glass and those silver tailings come out clean free of those contaminants less number two the third thing is it's ridiculous Lee efficient.
Speaker #3: $500 a ton, to do what? To receive and take from them their environmental liability. Their environmental problem that they don't have a solution for.
Speaker #3: Nextly, we do not want those solar panels going into landfills. They will contaminate the ecosystem. They will contaminate the water system. Those materials will leach into the system and be very, very bad for our communities.
Our variable costs are less than 7% of our revenue less than 7%.
Most of that is natural gas and the rest of the electricity, but I'm reasonably in relatively small small quantities for what we're doing.
Speaker #3: Plus, you're throwing away valuable commodities. People seem to be surprised when we tell them that there's over 0.6 ounces of silver in every solar panel.
And then the fourth which I think is the most powerful is it still.
Do a panel every seven seconds.
What does that mean of course it means we have incredibly high throughput low variable cost high speed process, but it's more than that because that speed is what enables us to scale. One production line can do millions and millions and millions of panels per year three points.
Speaker #3: There's aluminum. There's also some critical and rare elements, iridium, manganese, tellurium, depending on the types of panels. Germanium. Like there's very, very valuable minerals there.
3 million panels per year from one production line, we don't know anybody that can do that in fact, we were are <unk> certified this year as the only company in North America, which to US means the only company in the world.
Speaker #3: So, what we did was we brought in Fortunato's technology, integrated this delamination process into our solution, and then expanded it out to build an entire demonstration scale facility.
Corrado Gasperis: So what we did was we brought in Fortunato's technology, and we integrated this delamination process into our solution and then expanded it out and built an entire demonstration scale facility. Now, there's four very, very key things that we believe are novel that our technology does that nobody else can do. The first is that we thermally destroy, at the molecular level, we're breaking carbon bonds, and we're thermally destroying these polymers, these laminates, these plastics, such that they're broken down and ultimately reassembling with very, very safe emissions, CO2 going up the stack. So we have air quality controls, we have scrubbers, but we do not have any harmful emissions, and we eliminate all the contaminants. Secondly, we don't harm the metals. We don't carbonize, we don't destroy, we don't burn the metals in our process.
The only company in North America that is certified channel checked ordered as.
Speaker #3: Now, there are four very, very key things that we believe are novel, that our technology does that nobody else can do. The first is that we thermally destroy at the molecular level; we’re breaking carbon bonds and we're thermally destroying these polymers, these laminates, these plastics.
As generating no waste and then having a.
Certified proven zero landfill solution.
And one person said to me well that's nice for the environment is that important is absolutely that important for two critical reasons. Most of our customers are sophisticated utility companies, who had nightmare experiences with landfills and super funds and they don't want that number one it's one of the biggest boxes that they check but number two.
Speaker #3: Such that they're broken down and ultimately reassembling with very, very safe emissions, CO2 going up the stack. So we have air quality controls, we have scrubbers, but we do not have any harmful emissions.
To every pound.
That we produce clean we sell for money.
Speaker #3: And we eliminate all the contaminants. Secondly, we don't harm the metals. We don't carbonize, we don't destroy, we don't burn the metals. In our process.
Every pound that wouldn't be produce clean is not a loss of revenue. It's certainly is bad. It's a cost that then is required to be paid to dispose at the landfill. So how do you have the total lowest cost.
Speaker #3: And to that point, if laminates and plastics are sticking to the silver or sticking to the glass or sticking to the aluminum, they're not saleable.
Corrado Gasperis: And to that point, if laminates and plastics are sticking to the silver or sticking to the glass or sticking to the aluminum, they're not saleable. In fact, if you do that, you're just generating new hazardous materials, and the permitting regime that we work under wouldn't even allow that. So we have a zero landfill solution because those aluminums, those glass, and those silver tailings come out clean, free of those contaminants. That's number two. The third thing is it's ridiculously efficient. Our variable costs are less than 7% of our revenue, less than 7%. Most of that is natural gas, and the rest is electricity, but in reasonably and relatively small, small quantities for what we're doing. And then the fourth, which I think is the most powerful, is it's fast. We do a panel every seven seconds. What does that mean?
It's that way so we prove it in our demonstration facility in silver Springs, we proved over a year ago that we can produce clean aluminum clean glass and these tailing he's really funneling residual materials. That's all it. That's all there is there's nothing that comes out we haven't.
Speaker #3: In fact, if you do that, you're just generating new hazardous materials, and the permitting regime that we work under wouldn't even allow that. So, we have a zero-landfill solution because those aluminums, those glass, and those silver tailings come out clean.
At one ounce, we haven't set one pound of waste to landfill. So people said, we don't understand how you do that when you're incinerating in an oven.
Speaker #3: Free of those contaminants. That's number two. The third thing is it's ridiculously efficient. Our variable costs are less than 7% of our revenue—less than 7%.
Uh huh.
We don't incinerators.
Our process is not an incinerator.
Right, it's much more on molecular much more thermally dynamic.
Speaker #3: Most of that is natural gas and the rest is electricity. But in reasonably and relatively small, small quantities for what we're doing. And then the fourth, which I think is the most powerful, is it's fast.
And much cleaner than that.
What was really a surprise is the grades of silver that were concentrating in the metal tailings.
We would have been probably pleased with $15 2000 ounces of silver per ton were consistently depending on how fine. We screen. We're consistently gaining 30 40, sometimes 50 ounces per ton of these residual materials now these materials here rep.
Speaker #3: You do a panel every seven seconds. What does that mean? Of course, it means we have incredibly high throughput, low variable cost, and a high-speed process.
Corrado Gasperis: Of course, it means we have incredibly high throughput, low variable cost, high-speed process. But it's more than that because that speed is what enables us to scale. One production line can do millions and millions and millions of panels per year, 3.3 million panels per year from one production line. We don't know anybody that can do that. In fact, we were R2V3 certified this year as the only company in North America, which to us means the only company in the world, but the only company in North America that is certified, channel checked, audited as generating no waste and having a certified, proven zero landfill solution. Now, one person said to me, "Well, that's nice for the environment. Is it that important?" It is absolutely that important for two critical reasons.
Speaker #3: But it's more than that because that speed is what enables us to scale. One production line, can do millions and millions and millions of panels per year.
Present.
The tailings represent 12 13 up to 15% of the way the panel that's coming in the aluminum represents 12 13, let's say up to 15% of the way to the panel and the glass heaviest weight by far is about 70%, so you're getting almost a $125 per equivalent ton coming in the door.
Speaker #3: 3.3 million panels per year from one production line. We don't know anybody that can do that. In fact, we were R2V3 certified this year as the only company in North America, which to us means the only company in the world.
Speaker #3: But the only company in North America that is certified channel checked audited as generating no waste and having a certified proven zero landfill solution.
In recovery of aluminum beginning another $125 coming.
Equivalent ton coming in the door of the silver Rich Taylor, and let's say, you're getting 20 Bucks a ton for the glass even rounding it down there are $250 a tonne so you're getting paid fifth $500 a ton to take this environmental problem off the hands of our customer and then another $250 a ton to ship the same material.
Speaker #3: Now one person said to me, "Well, that's nice for the environment. Is it that important?" It is absolutely that important for two critical reasons.
Speaker #3: Most of our customers are sophisticated utility companies who've had nightmare experiences with landfills and superfunds, and they don't want that. Number one, it's one of the biggest boxes that they check.
Corrado Gasperis: Most of our customers are sophisticated utility companies who've had nightmare experiences with landfills and super funds, and they don't want that. Number one, it's one of the biggest boxes that they check. But number two, every pound that we produce clean, we sell for money. Every pound that wouldn't be produced clean is not a loss of revenue. It certainly is that. It's a cost that then is required to be paid to dispose it to the landfill. So how do you have the total lowest cost? It's that way. So we proved this in our demonstration facility in Silver Springs. We proved over a year ago that we can produce clean aluminum, clean glass, and these tailings, these really fine residual materials. That's all it. That's all there is. There's nothing that comes out. We haven't set one ounce.
Obviously, reprocessed <unk> receptor rated and bags.
Out the other side of the plant.
Speaker #3: But number two, every pound that we produce clean, we sell for money. Every pound that wouldn't be produced clean is not a loss of revenue.
I wanted to be clear, though that we're selling all the aluminum we're selling all the glass, we're selling it frankly as soon as.
Speaker #3: It certainly is bad. It's a cost that then is required to be paid to dispose of it to the landfill. So how do you achieve the total lowest cost?
We're selling it as soon as we can fill up a truck.
<unk> defines or going to a final refinery tips.
Typically.
Speaker #3: It's that way. So we prove this. In our demonstration facility in Silver Springs, we proved over a year ago that we can produce clean aluminum clean glass and these tailings, these really fine residual materials.
Either either in Texas or in Asia.
And then their final the refineries in refining down and now with the metals now.
We're probably getting paid 50%, 60% of the silver value based on those agreements, which is the equivalent to the dollars I just mentioned, but we do have a notion that we will develop one more stat that refining staff, we have refining competency fortunato has deep refining competency, we have refining competency from our mining days.
Speaker #3: That's all it. That's all there is. There's nothing that comes out. We haven't set one ounce. We haven't set one pound of waste to the landfill.
Corrado Gasperis: We haven't set one pound of waste to the landfill. Some people say, "We don't understand how you do that when you're incinerating in an oven." We don't incinerate. Our process is not an incinerator. Right? It's much more molecular, much more thermally dynamic, and much cleaner than that. What was really a surprise is the grades of silver that we're concentrating in the metal tailings. We would have been probably pleased with 15, 20 ounces of silver per ton. We're consistently, depending on how fine we screen, we're consistently getting 30, 40, sometimes 50 ounces per ton of these residual materials. Now, these materials here represent the tailings represent, you know, 12, 13, up to 15% of the weight of the panel that's coming in. The aluminum represents 12, 13, let's say, up to 15% of the weight of the panel.
Speaker #3: Some people said we don't understand how you do that. When you're incinerating in an oven, we don't incinerate. Our process is not an incinerator.
We'll look to do that in the future, but those silver grades in those silver concentrations come at a remarkably good time in 2025 silver is hitting all time record levels of demand where is that demand coming from it's coming from industrial demand industrial applications, primarily electronics electrification.
Speaker #3: Right? It's much more molecular, much more thermally dynamic. And much cleaner. Than that. What was really a surprise is the grades of silver that were concentrating in the metal tailings.
And especially from solar panels and photovoltaics. So not only is silver hitting all time record demands is projected over the 10 years next 10 years to grow dramatically more and more silver in demand and a few years back finally, the demand for silver exceeded the mine supply.
Speaker #3: We would have been probably pleased with 15 to 20 ounces of silver per ton. We're consistently, depending on how fine we screen, getting 30, 40, sometimes 50 ounces per ton of these residual materials.
Speaker #3: Now, these materials here represent the tailings represent, you know, 12, 13, up to 15% of the weight of the panel that's coming in. The aluminum represents 12, 13, let's say up to 15% of the weight of the panel.
Today, it's over 200 million ounces a year, that's being consumed more than is being produced which is what brought the silver prices from the mid to high teens to the high Twenty's to now high Thirty's pushing $40, an ounce that increase in prices over the last year contributed our.
Speaker #3: And the glass, the heaviest weight by far, is about 70%. So you're getting almost $125,000 per equivalent ton coming in the door in recovery of aluminum.
Corrado Gasperis: And the glass, heaviest weight by far, is about 70%. So you're getting almost $125 per equivalent ton coming in the door in recovery of aluminum. You're getting another $125 coming in, you know, equivalent ton coming in the door of these silver-rich tailings. And let's say you're getting 20 bucks a ton for the glass, even rounding it down, you're at $250 a ton. So you're getting paid $500 a ton to take this environmental problem off the hands of our customer, and then another $250 a ton to ship the same material, obviously reprocessed, re-separated, and bagged, you know, out the other side of the plant. I want to be clear, though, that we're selling all the aluminum. We're selling all the glass. We're selling it, frankly, as soon as we're selling it, as soon as we can fill up a truck.
That's from going from $200, a ton recovery to almost $250 a ton recovery to now slightly over $250 a tonne.
Speaker #3: You're getting another 125,000 coming in, you know, equivalent ton coming in the door of these silver rich tailings. And let's say you're getting 20 bucks a ton for the glass, even rounding it down, you're at 250,000 a ton.
For those of you that are familiar with our locality. This is silver Springs, Nevada on this picture that you are seeing in a small facility in the back is where we are operating three shifts processing solar panels as fast as humanly possible.
Speaker #3: So you're getting paid $500 a ton to take this environmental problem off the hands of our customer and then another $250,000 a ton to ship the same material obviously reprocessed, re-separated, and bagged you know out the other side of the plant.
<unk>.
If you looked at this picture today, if I took this picture today. This parking lot will be completely full of solar panels. It is absolutely 100% full of solar panels. Hence in may we got a massive permanent expansion to the left you see this flat land here in Silver Springs. This facility is 600 Lake Avenue.
Speaker #3: I want to be clear though that we're selling all the aluminum. We're selling all the glass. We're selling it frankly as soon as we're selling it as soon as we can fill up a truck.
The land right next to it is 800 Lake Avenue, we secured that land and we just had a permitted to do what to store up to 25000 tons of solar panel material to be able to bring that material in advance of starting this plan up so that we continue.
Speaker #3: The fines are going to a final refinery. Typically, either in Texas or in Asia. And then the final the refinery is then refining down and now with the metals.
Corrado Gasperis: The fines are going to a final refinery, typically, either in Texas or in Asia. And then the refinery is then refining down and out with the metals. Now, we're probably getting paid 50, 60% of the silver value based on those agreements, which is the equivalent to the dollars I just mentioned. But we do have a notion that we will develop one more step, that refining step. We have refining competency. Fortunato has deep refining competency. We have refining competency from our mining days. We'll look to do that in the future. But those silver grades and those silver concentrations come at a remarkably good time. In 2025, silver is hitting all-time record levels of demand. Where is that demand coming from? It's coming from industrial demand, industrial applications, primarily electronics, electrification, and especially from solar panels and photovoltaics.
Speaker #3: Now, we're probably getting paid 50, 60% of the silver value based on those agreements, which is the equivalent to the dollars I just mentioned.
To grow our market share now that small facility you can see it says 135000 panels per year, that's not a small number but it is only about 5000 ton equivalent per annum. The large facility can do $3 3 million panels, a year from one production line.
Speaker #3: But we do have a notion that we will develop one more step that refining step. We have refining competency. Fortunato has deep refining competency.
Speaker #3: We have refining competency from our mining days. We'll look to do that in the future. But those silver grades and those silver concentrations come at a remarkably good time.
$3 three from one production line. That's a panel every seven seconds, that's lower than 7% totally variable cost and nothing will make money, even at 21% utilization anything over 20% utilization it is profitable.
Speaker #3: In 2025, silver is hitting all-time record levels of demand. Where's that demand coming from? It's coming from industrial demand. Industrial applications, primarily electronics, electrification, and especially from solar panels and photovoltaics.
And now we have all the storage that we need as we bring in more and more customers the market the market today or certainly last year.
Speaker #3: So not only is silver hitting all-time record demands, it's projected over the 10 years next 10 years to grow dramatically, more and more silver in demand.
Corrado Gasperis: So not only is silver hitting all-time record demands, it's projected over the next 10 years to grow dramatically, more and more silver in demand. And a few years back, finally, the demand for silver exceeded the mine supply. Today, it's over 200 million ounces a year that's being consumed, more than is being produced, which is what brought the silver prices from the mid to high teens to the high 20s to now high 30s, pushing $40 an ounce. That increase in price just over the last year contributed our estimates from going from $200 a ton recovery to almost $250 a ton recovery to now slightly over $250 a ton. For those of you that are familiar with our locality, this is Silver Springs, Nevada, on this picture that you're seeing.
Was about $3 three $3 5 million panels came to the end of their lives that's equivalent to about 100000 tons of material and about the size of one of our production lines, but what's staggering is in four five years that number is going to be 33 million.
Speaker #3: In a few years back, finally, the demand for silver exceeded the mine supply. Today it's over 200 million ounces a year that's being consumed more than is being produced, which is what brought the silver prices from the mid to high teens to the high 20s to now high 30s, pushing $40 an ounce.
<unk> panels coming out of the market and people are like my God 33 million panels, that's massive no it's not.
The U S has a billion solar panels deployed in 20 years 330 million panels a year.
Speaker #3: That increase in price just over the last year contributed our estimates from going from $200 a ton recovery to almost $250 a ton recovery to now slightly over $250 a ton.
It's a massive trajectory and I don't think people understand how big this problem is end of life solar panel issue is but some people understand California.
Speaker #3: For those of you who are familiar with our locality, this is Silver Springs, Nevada. In the picture that you are seeing, this small facility in the back is where we are operating three shifts, processing solar panels as fast as humanly possible.
Corrado Gasperis: And this small facility in the back is where we are operating three shifts, processing solar panels as fast as humanly possible. If you looked at this picture today, if I took this picture today, this parking lot would be completely full of solar panels. It is absolutely 100% full of solar panels. Hence, in May, we got a massive permit expansion. To the left, you see this flat land here in Silver Springs. This facility is 600 Lake Avenue. The land right next to it is 800 Lake Avenue. We secured that land, and we just had it permitted to do what? To store up to 25,000 tons of solar panel material, to be able to bring that material in in advance of starting this plant up so that we continue to grow our market share. Now, that small facility, you can see it says 135,000 panels per year.
Essentially prohibited.
Classified these materials as universal slash hazardous waste, which is what it should be classified as essentially prohibits it makes it extremely difficult.
Speaker #3: If you looked at this picture today, if I took this picture today, this parking lot would be completely full of solar panels. It is absolutely 100% full of solar panels.
If not illegal to put these things in landfills.
So what did we do we selected northern Nevada is if you. If you can see the screen I'm circling location, we selected northern Nevada excuse me.
Speaker #3: Hence, in May, we got a massive permit expansion to the left. You see this flat land here in Silver Springs. This facility is 600 Lake Avenue.
Right on the main artery of I 80, coming in from Northern California.
Speaker #3: The land right next to it is 800 Lake Avenue. We secured that land and we just had it permitted to do what? To store up to 25,000 tons of solar panel material.
Our second site and our site selectors driving down there today as we speak.
Is on the main artery coming in from Southern California, and Nevada why is that this map shows you adopt apply if you will for every major solar deployment in the United States the bigger the circle the older the deployment.
Speaker #3: To be able to bring that material in ahead of starting this plan up so that we continue to grow our market share. Now, that small facility, you can see it says 135,000 panels per year.
It takes every it takes everybody about one second to say well, California is by far the most solar panels deployed in the country and at the same time the oldest if you add Arizona, and Nevada to California, and the southwest region of the United States Youre literally sitting on more.
Speaker #3: That's not a small number, but you know it's only about 5,000 tons equivalent per annum. The large facility can produce 3.3 million panels a year for one production line.
Corrado Gasperis: That's not a small number, but you know it's only about 5,000 ton equivalent per annum. The large facility can do 3.3 million panels a year from one production line. 3.3 from one production line. That's a panel every seven seconds. That's lower than 7% totally variable cost. And that thing will make money even at 21% utilization. Anything over 20% utilization, it is profitable. And now we have all the storage that we need as we bring in more and more customers. The market today, or certainly last year, was about 3.3, 3.5 million panels came to the end of their lives. That's equivalent to about 100,000 tons of material and about the size of one of our production lines. But what's staggering is in four and a half years, that number is going to be 33 million panels coming out of the market.
Speaker #3: 3.3 from one production line. That's a panel every seven seconds that's lower than 7%, totally variable cost. And that thing will make money even at 21% utilization.
And then half of the entire market for end of life solar panels.
Who's sitting on it we're sitting on it because our two first two facilities are putting right immediate proximity of all that market share. That's what we're all about what's remarkable is the next four and a half years when that $3 3 million panels of waste becomes 33 million panels of waste.
Speaker #3: Anything over 20% utilization, it is profitable. And now we have all the storage that we need as we bring in more and more customers.
Speaker #3: The market, the market today or certainly last year was about 3.3, 3.5 million panels came to the end of their lives. That's equivalent to about 100,000 tons of material and about the size of one of our production lines.
Per year more than 50% that percentage grows between 2025 and 2030 in the southwest region of the United States. Eventually in the rest of the country will catch up and harmonize.
Speaker #3: But what's staggering is in four and a half years, that number is going to be 33 million panels coming out of the market. And people are like, my God, 33 million panels.
But for now this is where almost all of it is that Texas. This whole region here centered by Texas.
Corrado Gasperis: And people are like, "My God, 33 million panels. That's massive." No, it's not. The US has a billion solar panels deployed. In 20 years, 330 million panels a year. It's a massive trajectory. And I don't think people understand how big this problem, this end-of-life solar panel issue is. But some people understand. California essentially prohibited, classified these materials as universal/hazardous waste, which is what it should be classified as, and essentially prohibits and makes it extremely difficult, if not illegal, to put these things in landfills. So what did we do? We selected Northern Nevada. If you can see the screen, I'm circling the location. We selected Northern Nevada, excuse me, right on the main artery of I-80 coming in from Northern California.
And even all the way up to Colorado, New Mexico is the second most deployed panels in the country.
Speaker #3: That's massive. No, it's not. The US has a billion solar panels deployed. In 20 years, 330 million panels a year will be it's a massive trajectory.
Two California, they're not as old Theres quite sorry, there's quite a few old ones, they're not as old.
But Texas is number two but then you have Florida you have North Carolina, you have <unk>.
Speaker #3: And I don't think people understand how big this problem—the end-of-life solar panel issue—is. But some people understand. California essentially prohibited and classified these materials as universal/hazardous waste, which is what it should be classified as.
Alveda in new England in Michigan, We know exactly where these panels are in our business plan. You know is playing out exactly the way we hoped it would actually a little better because these are our customers. These are the customers. We've engaged with these are people were taking panels from what you see in Nevada, California, and Arizona is.
Speaker #3: And essentially prohibits and makes it extremely difficult, if not illegal, to put these things in landfills. So what did we do? We selected Northern Nevada, if you can see the screen, I'm circling the location.
<unk>, what we hoped we would see our W. E is our biggest customer there national Theyre not regional but their copper mountain location has 25 million panels deploy all by themselves.
Speaker #3: We selected Northern Nevada excuse me right on the main artery of I-80 coming in from Northern California. Our second site and our site selectors driving down there today as we speak is on the main artery coming in from Southern California to Nevada.
Their replacement rate over the next eight 910 years is going to be easily a million panels a year. It could be 2 million pounds, you are probably going to be higher than $2 million at some point in the.
Corrado Gasperis: Our second site, and our site selector is driving down there today as we speak, is on the main artery coming in from Southern California into Nevada. Why is that? This map shows you a dot, a plot, if you will, for every major solar deployment in the United States. The bigger the circle, the older the deployment. It takes everybody about one second to say, "Well, California is by far the most solar panels deployed in the country, and at the same time, the oldest." If you add Arizona and Nevada to California in the southwest region of the United States, you're literally sitting on more than half of the entire market for end-of-life solar panels. Who's sitting on it? We're sitting on it because our first two facilities are putting right in immediate proximity of all that market share. That's what we're all about.
Speaker #3: Why is that? This map shows you a dot, a plot if you will, for every major solar deployment in the United States. The bigger the circle, the older the deployment.
Continual well we didn't expect is that we would have Florida light and power and Nextera, sorry and Nextera.
<unk> as a top three customer we didn't expect people sending panels to Nevada from Florida from Pennsylvania from Ohio from from Louisiana, and Texas that reaffirmed to us that they don't really have a good alternatives. They don't have a good alternative.
Speaker #3: It takes every it takes everybody about one second to say, well, California is by far the most solar panels deployed in the country. And at the same time, the oldest.
Speaker #3: If you add Arizona and Nevada to California in the southwest region of the United States, you're literally sitting on more than half of the entire market for end-of-life solar panels.
We don't see any alternatives that can scale.
So so when we look at our our quote unquote competitors they have a little.
Speaker #3: Who's sitting on it? We're sitting on it because our two first two facilities are putting right in the immediate proximity of all that market share.
Foreign.
Mechanical systems can they do five or 6000 tons a year, yeah, our system, probably could do that.
Can they scale that bigger now they would need 20 of those to match our automated.
Speaker #3: That's what we're all about. What's remarkable is the next four and a half years, when that 3.3 million panels of waste becomes 33 million panels of waste per year, more than 50%, that percentage grows between 2025 and 2030, in the southwest region of the United States.
Corrado Gasperis: What's remarkable is the next four and a half years, when that 3.3 million panels of waste becomes 33 million panels of waste per year, more than 50%. That percentage grows between 2025 and 2030 in the southwest region of the United States. Eventually, the rest of the country will catch up and harmonize. But for now, this is where almost all of it's at. Texas, this whole region here centered by Texas, you know, going even all the way up to Colorado, New Mexico, is the second most deployed panels in the country to California. They're not as old. There's quite a few old ones. They're not as old. But Texas is number two. But then you have Florida. You have North Carolina. You have Pennsylvania, New England, and Michigan. We know exactly where these panels are.
Fully automated continuously operating system 20 of those would be two five times, our capex, which is a law.
But it's not even as big a problem as 25 times the opex, if they need four or five people to run one of those small systems, we only need three people to run a fully automated large system. We don't have to multiply that number of people times 20 systems. So the economics for us are formidable.
Speaker #3: Eventually, the rest of the country will catch up and harmonize. But for now, this is where almost all of it's at. Texas, this whole region here, centered by Texas, you know, going even all the way up to Colorado and New Mexico, is the second most deployed panels in the country.
We're sitting on a market opportunity.
Unlike one economically that I've ever seen before which is we get paid $500 a ton it's taken the panel.
Speaker #3: To California, they're not as old. There's quite a sorry, there's quite a few old ones. They're not as old. But Texas is number two.
We're getting another 200, you heard me say its really closer to 250.
Speaker #3: But then you have Florida, you have North Carolina, you have Pennsylvania, New England, and Michigan. We know exactly where these panels are. And our business plan, you know, is playing out exactly the way we hoped it would.
To sell and ship all of that material.
$70 million to $75 million of revenue. If 100 100000 ton facility was running full even at $85, 90% utilization right your $65 million of revenue.
Corrado Gasperis: And our business plan, you know, is playing out exactly the way we hoped it would, actually a little better, because these are our customers. These are the customers we've engaged with. These are people we're taking panels from. What you see in Nevada, California, and Arizona is exactly what we hoped we would see. RWE is our biggest customer. They're national. They're not regional, but their Copper Mountain location has 25 million panels deployed all by themselves. Their replacement rate over the next eight, nine, ten years is going to be easily a million panels a year. It could be 2 million panels a year. Probably going to be higher than 2 million at some point in the continuum. What we didn't expect is that we would have Florida Light and Power and NextEra, sorry, and NextEra as a top three customer.
Speaker #3: Actually, a little better. Because these are our customers. These are the customers we've engaged with. These are people we're taking panels from. What you see in Nevada, California, and Arizona is exactly what we hoped we would see.
And you're making $55 million of profit because our totally variable costs are only 7% are totally variable costs are only $35 a tonne.
Speaker #3: RWE is our biggest customer. They're national. They're not regional. But their copper mountain location has 25 million panels deployed all by themselves. They're replacement rate over the next eight, nine, ten years is going to be easily a million panels a year.
The fixed costs are everything out.
Mostly sales marketing and administration and logistics management, making system right.
Speaker #3: It could be two million panels a year, probably going to be higher than two million at some point in the continuum. What we didn't expect is that we would have Florida Light and Power and Nextara sorry, and Nextara as top three customer.
It's such a low number all in it comes out at about $150 a tonne.
So yeah, we want to have our first facility up and running immediately.
The plan is that we ordered all of the equipment.
<unk>.
Speaker #3: We didn't expect people sending panels to Nevada from Florida, from Pennsylvania, from Ohio. From Louisiana, and Texas. That reaffirms to us that they don't really have a good alternative.
Corrado Gasperis: We didn't expect people sending panels to Nevada from Florida, from Pennsylvania, from Ohio, from Louisiana, and Texas. That reaffirms to us that they don't really have a good alternative. They don't have a good alternative. We don't see any alternative that can scale. So when we look at our quote-unquote competitors, they have little foreign mechanical systems. Can they do five or six thousand tons a year? Yeah, a system probably could do that. Can they scale that bigger? No. They would need 20 of those to match our automated, you know, fully automated, continuously operating system. 20 of those would be two and a half times our CAPEX, which is a lot, but it's not even as big a problem as 25 times the OPEX.
This offering that we just closed all the deposits are going out tomorrow.
The permit is due in November.
The equipment lands November December were commissioning in Q1 were up and running and profitable in Q2, that's the plan, but the minute.
Speaker #3: They don't have a good alternative. We don't see any alternative that can scale. So when we look at our quote-unquote competitors, they have little foreign mechanical systems.
The Nevada Department of environmental protection hands us the permit.
For the North we're going to hand them right back the identical permit application for the South same state same Department same Bureau, chief same permit writer, because we want to corner half of the U S market immediately.
Speaker #3: Can they do five or six thousand tons a year? Yeah, a system probably could do that. Can they scale that bigger? No. They would need 20 of those to match our automated, you know, fully automated continuously operating system.
Speaker #3: 20 of those would be two and a half times our CapEx, which is a lot, but it's not even as big a problem as 25 times the Opex.
You could you could simply say, okay. So the up and running early 'twenty six facility up and running early 'twenty seven facility up and running early 'twenty eight whereas that third facility is going to go well, we will see will it be Florida will it be Texas will it be North Carolina, it'll it'll be one of those.
Speaker #3: If they need four or five people to run one of those small systems, we only need three people to run our fully automated large system.
Corrado Gasperis: If they need four or five people to run one of those small systems, we only need three people to run our fully automated large system. We don't have to multiply that number of people times 20 systems. So the economics for us are formidable. We're sitting on a market opportunity unlike one economically that I've ever seen before, which is we get paid $500 a ton to take in the panel. We're getting another 200. You heard me say it's really closer to 250 to sell and ship all that material. That's $70 to $75 million of revenue if a 100,000-ton facility was running full. Even at 85, 90% utilization, right, you're 65 million of revenue, and you're making 55 million of profit because our totally variable costs are only 7%. Our totally variable costs are only $35 a ton.
Speaker #3: We don't have to multiply that number of people times 20 systems. So the economics for us are formidable. We're sitting on a market opportunity unlike one economically that I've ever seen before.
Okay. We have three facilities now 29, 30, youre looking at a million tons of waste coming out of the market.
We'll be we'll be generating 150 168.
$165 million of cash flow, while last name correct crowd or you have to pay taxes on that number right now.
Speaker #3: We get paid $500 a ton to take in the panel. We're getting another $200. You heard me say it's really closer to $250.
$260 million of net operating loss carry forwards.
Speaker #3: To sell and ship all that material, that's $70 million to $75 million of revenue if a 100,000-ton facility was running at full capacity. Even at 85% to 90% utilization, right?
We will not pay cash taxes on the first quarter of a $1 billion in profit.
But I got to tell everyone on this call.
Fortunate I don't I will have a problem with each other and we will have a problem with our team if come 2029, we only have $27, 28% to 30% market share.
Speaker #3: You're 65 million of revenue. And you're making 55 million of profit. Because our totally variable costs are only 7%. Our totally variable costs are only 35.00 a ton.
So facility one will go up fast facility, two will come up right behind it but three four and five is going to go a little quicker. If this thing plays out the way we're seeing it play out now so let me just pause for one second and say.
Speaker #3: The fixed costs are everything else—mostly sales, marketing, administration, logistics, and management. It’s about making the system run. It's such a low number, all in. It comes out at about $150 a ton.
Corrado Gasperis: The fixed costs are everything else, mostly sales, marketing, administration, logistics management, making the system run. It's such a low number all in. It comes out at about $150 a ton. So yeah, we want to have our first facility up and running immediately. The plan is that we ordered all the equipment today. This offering that we just closed, all the deposits are going out tomorrow. The permit is due in November. The equipment lands November, December. We're commissioning in Q1. We're up and running and profitable in Q2. That's the plan. But the minute the Nevada Department of Environmental Protection hands us the permit for the North, we're going to hand them right back the identical permit application for the South. Same state, same department, same bureau chief, same permit writer, because we want to corner half of the US market immediately.
If you can't see the screen I apologize, but with this screen is the other assets are relevant.
That Comstock has other than this powerful business plan and this powerful focus that has resulted from the separation of <unk> from our portfolio, we still have our mining assets.
Speaker #3: So yeah, we want to have our first facility up and running immediately. The plan is that we ordered all the equipment today. This offering that we just closed, all the deposits are going out tomorrow.
People get upset when I don't mention it I'm sorry, you have 12 square miles of mineral properties. The Comstock load, we have almost 1 million ounces all category of gold resources, we have almost 5 million ounces all category of silver resources. The day in mind is the one where we have an end.
Speaker #3: The permit is due in November. The equipment lands November, December. We're commissioning in Q1. We're up and running and profitable in Q2. That's the plan.
<unk> internal mine plan that shows 400, and some million of free cash flow and now as you see on the screen a net present value assuming $3000 goal of over $200 million, we're working very hard to monetize those assets. What does that mean crowd are you selling them what does it mean it means any way that we can mine.
Speaker #3: But the minute the Nevada Department of Environmental Protection hands us the permit, for the north, we're going to hand them right back the identical permit application for the south.
Speaker #3: Same state, same department, same bureau chief, same permit writer. Because we want to corner half of the US market immediately. You could simply say, okay, facility up and running early 26, facility up and running early 27, facility up and running early 28.
<unk> those assets for the first time in literally 10 years people are taking an interest in in smaller scale, but very profitable a precious metal assets. So we're happy about that.
Corrado Gasperis: You could simply say, "Okay, facility up and running early '26, facility up and running early '27, facility up and running early '28." Where's that third facility going to go? Well, we'll see. Will it be Florida? Will it be Texas? Will it be North Carolina? It'll be one of those. Okay, we have three facilities. Now, 2930, you're looking at a million tons of waste coming out of the market. Well, we'll be generating 150, 160, maybe 165 million of cash flow. Well, that's not correct, Corrado. You have to pay taxes on that number, right? No. We have $260 million of net operating lost carry forwards. We will not pay cash taxes on the first quarter of a billion in profits.
We also are selling the real estate I know everyone's heard it for a very long time and I know we have some questions about it but let me tell you what happened northern Nevada got overwhelmed with industrial businesses, starting with Tesla Giga factory than redwood than everybody else and their mothers seem to come in and then the second wave, though was the data set.
Speaker #3: Where's that third facility going to go? Well, we'll see. Will it be Florida? Will it be Texas? Will it be North Carolina? It'll be one of those.
Speaker #3: Okay, we have three facilities. Now 2930, you're looking at a million tons of waste coming out of the market. Well, we'll be generating 150, 160, 165 million of cash flow.
Centers from switch to Google Microsoft.
And I can name five more without even blinking.
Speaker #3: Well, that's not correct, Corrado. You have to pay taxes on that number, right? No. We have 260 million dollars of net operating loss carry forwards.
And what they did is they really slowed down the public utilities ability to deliver power fast and that frankly slow down.
Speaker #3: We will not pay cash taxes on the first quarter of a billion in profits. But I have to tell everyone on this call, Fortunato and I will have a problem with each other, and we'll have a problem with our team if, come 2029, we only have 27%, 28%, or 30% market share.
The interest from the data centers it didn't go away.
Strong as it's ever been but but getting the power thing served out slowed us down so I feel badly about that.
Corrado Gasperis: But I got to tell everyone on this call, Fortunato and I will have a problem with each other, and we'll have a problem with our team if come 2029, we only have 27, 28, 30% market share. So facility one will go up fast. Facility two will come up right behind it. But three, four, and five is going to go a little quicker if this thing plays out the way we're seeing it play out now. So let me just pause for one second and say, if you can't see this screen, I apologize. But what this screen is, is the other assets of relevance that Comstock has, other than this powerful business plan and this powerful focus that has resulted from the separation of Biolium from our portfolio, we still have our mining assets. People get upset when I don't mention it. I'm sorry.
It is a very sad day for me.
When that bump hit the road now something newest happened off grid power suppliers, a hyperscale data center developers and capital.
Speaker #3: So facility one will go up fast. Facility two will come up right behind it. But three, four, and five is going to go a little quicker if this thing plays out the way we're seeing it play out now.
Our forming coalitions partnerships, whatever you want to call them and they are coming out now again, saying, we now have all the pieces, we need forget the public utility.
Speaker #3: So let me just pause for one second and say, if you can't see the screen, I apologize, but what this screen is, is the other assets of relevance that Comstock has, other than this powerful business plan and this powerful focus that has resulted from the separation of Bioleum from our portfolio.
We'd like to we'd like to do something with these properties. So were working that very very fast and very very hard green lines up and running in Oklahoma, They've got incredible offtake, they've got incredible feedstock they are really running well.
We hope that in 2026, they will do something very major in terms of capital raise their planning something very very big we think that at that time, we'll be able to monetize at or better.
Speaker #3: We still have our mining assets. People get upset when I don't mention it. I'm sorry. We have 12 square miles of mineral properties. The Comstock load.
Corrado Gasperis: We have 12 square miles of mineral properties, the Comstock load. We have almost a million ounces all category of gold resources. We have almost 5 million ounces all category of silver resources. The Dayton Mine is the one where we have an engineered internal mine plan that shows 400 and some million of free cash flow. And now, as you see on the screen, a net present value, assuming $3,000 gold, of over 200 million. We're working very hard to monetize those assets. What does that mean, Corrado? Are you selling them? What does it mean? It means any way that we can monetize those assets. For the first time in literally 10 years, people are taking an interest in smaller scale, but very profitable precious metal assets. So we're happy about that. We also are selling the real estate.
Speaker #3: We have almost 1 million ounces of all categories of gold resources. We have almost 5 million ounces of all categories of silver resources. The date in mind is one where we have an engineered internal mine plan that shows $47 million of free cash flow, and as you see on the screen, a net present value assuming $3,000 gold of over $200 million.
Startup companies are difficult, we see it with metals, we see it with fuels, but these guys really have a grip to them I've got to say.
They keep persevering and where their biggest cheerleaders mentioned the Nols.
They are not on our balance sheet at any value we were required to put a valuation allowance and reserve those assets, 100%, but if we generate quarter $1 billion of profit, which is right in front of us with this metal's business will be will be not paying cash taxes, and then lastly.
Speaker #3: We're working very hard to monetize those assets. What does that mean, Corrado? Are you selling them? What does it mean? It means any way that we can monetize those assets.
Lastly, the.
Speaker #3: For the first time in literally 10 years, people are taking an interest in smaller scale but very profitable precious metal assets. So we're happy about that.
The by OEM separation resulted in us taking a convertible preferred security what did we do we added up every dollar that we invested.
Speaker #3: We also are selling the real estate. I know everyone's heard it for a very long time and I know we have some questions about it.
Over the last four and a half years $65 million, we protected in a convertible preferred security that has liquidation preference over even the series a money that's coming in.
Corrado Gasperis: I know everyone's heard it for a very long time, and I know we have some questions about it, but let me tell you what happened. Northern Nevada got overwhelmed with industrial businesses, starting with Tesla's Gigafactory, then Redwood, then everybody else and their mother seemed to come in. And then the second wave, though, was the data centers from Switch to Google to Microsoft. And I could name five more without even blinking. And what they did is they really slowed down the public utility's ability to deliver power fast. And that, frankly, slowed down, you know, the interest from the data centers. It didn't go away. It's as strong as it's ever been. But, you know, getting the power thing certainly slowed us down. So I feel badly about that. It was a very sad day for me when that bump hit the road.
Speaker #3: But let me tell you what happened. Northern Nevada got overwhelmed with industrial businesses, starting with Tesla's Gigafactory, then Redwood, and then everybody else and their mother seemed to come in.
And we have $32 5 million underlying common shares to preserve our upside down I know some questions came in on that people get there I'm confused as to how I get value from by OEM as the load shareholder.
Speaker #3: And then the second wave, though, was the data centers. From Switch to Google to Microsoft. And I could name five more without even blinking.
Speaker #3: And what they did is they really slowed down the public utility's ability to deliver power fast. And that frankly slowed down, you know, the interest from the data centers.
Well first of all marathons investment was at 700 million.
Evaluation that was actually evaluation tap when they came in in March and February March.
Speaker #3: It didn't go away. It's as strong as it's ever been. But you know, getting the power thing certainly slowed us down. So I feel badly about that.
Second Investor came in with $20 million cash you all know that at a much much higher valuation, but even if you use the cap.
Speaker #3: It was a very sad day for me. When that bump hit the road, now something new has happened. Off-grid power suppliers, hyperscale data center developers and capital are forming coalitions, partnerships, whatever you want to call them.
Do you see that our underlying shares or 76%. Then today. There is an asset that could be valued at $5 billion market doesn't recognize that market is not giving us any credit for it so but now they're funded and now they're moving forward faster some of the most incredible people.
Corrado Gasperis: Now, something new has happened. Off-grid power suppliers, hyperscale data center developers, and capital are forming coalitions, partnerships, whatever you want to call them. And they're coming out now again saying, "We now have all the pieces we need. Forget the public utility. You know, we'd like to do something with these properties." So we're working that very, very fast and very, very hard. Green Line's up and running in Oklahoma. They've got incredible offtake. They've got incredible feedstock. They're really running. We hope that in 2026, they'll do something very major in terms of capital raise. They're planning something very, very big. We think that at that time, we'll be able to monetize, you know, at or better. You know, startup companies are difficult. We see it with metals. We see it with fuels. But these guys really have a grit to them.
Speaker #3: And they're coming out now again saying, we now have all the pieces we need. Forget the public utility. You know, we'd like to do something with these properties.
And the industry are joining that team its formidable theyre going to be.
Speaker #3: So we're working that very, very fast. And very, very hard. Green lines up and running in Oklahoma. They've got incredible offtake. They've got incredible feedstock.
Commercializing the state of Oklahoma has literally bending over backwards.
<unk> fully with US together in our strategic investors to to put a platform in place.
Speaker #3: They're really running we hope that in 2026 they'll do something very major in terms of capital raise. They're planning something very, very big. We think that at that time we'll be able to monetize, you know, at or better you know, a startup companies are difficult.
That will create a new oil well that never stops producing.
That's 65 million no will not show up on our balance sheet in the Q that Youll read Tonight, because we're still consolidating by OEM in our financials, but it's completely the objective to deconsolidation.
Speaker #3: We see it with metals. We see it with fuels. But these guys really have a grit to them. I got to say, they keep persevering and we're their biggest cheerleaders.
Corrado Gasperis: I got to say, they keep persevering, and we're their biggest cheerleaders. Mention the NOLs. You know, they're not on our balance sheet at any value. We're required to put a valuation allowance and reserve those assets 100%. But if we generate a quarter of a billion dollars of profit, which is right in front of us with this metals business, we'll be not paying cash taxes. And then lastly, the Biolium separation resulted in us taking a convertible preferred security. What did we do? We added up every dollar that we invested over the last four and a half years, 65 million. We protected it in a convertible preferred security that has liquidation preference over even the Series A money that's coming in. And we have 32 and a half million underlying common shares to preserve our upside. Now, I know some questions came in on that.
And based on our understanding of the accounting rules and we're going to ask the SEC two validated for US before we do it we believe before the end of this year. It will be fully deconsolidation and then people will have clarity to the fuels business and clarity to the metals business, but we can guide to that clarity today, obviously, we know what the.
Speaker #3: Mention the NOLs. You know, they're not on our balance sheet at any value. We're required to put a valuation allowance and reserve those assets 100%.
Speaker #3: But if we generate a quarter of a billion dollars of profit, which is right in front of us with this metals business, we will not be paying cash taxes.
Two pieces look like.
Speaker #3: And then lastly, lastly, the Bioleum separation resulted in us taking a convertible preferred security. What did we do? We added up every dollar that we invested over the last four and a half years, 65 million.
So I know, there's more I can say, but I also know that a lot of the questions that have already come in we'll cover it. So why don't we turn it over to the questions.
Thank you Corrado as I mentioned at the beginning of the call. We received more than 40 questions. Prior to the call and I can see we have a number of additional questions coming through zoom brother.
Speaker #3: We protected it in a convertible preferred security that has liquidation preference over even the Series A money that's coming in. And we have 32.5 million underlying common shares to preserve our upside.
Pronto and Judd our first question is.
Congratulations on the funding, we really want to see the solar recycling maintained its market share lead have you already negotiated ordered the equipment.
Speaker #3: I know some questions came in on that. People keep saying, I'm confused. As to how I get value from Bioleum as a load shareholder.
Corrado Gasperis: People can say, "I'm confused as to how I get value from Biolium as a low shareholder." Well, first of all, Marathon's investment was at 700 million valuation. That was actually a valuation cap when they came in in March, in February, March. The second investor came in with 20 million cash. You all know that at a much, much higher valuation. But even if you use the cap and you see that our underlying shares are 76%, then today there's an asset that could be valued at half a billion. Market doesn't recognize it. Market is not giving us any credit for it. So, but now they're funded. And now they're moving forward faster. Some of the most incredible people in the industry are joining that team. It's formidable. They're going to be commercializing.
Yeah.
You had mentioned I meant just mentioned that.
Speaker #3: Well, first of all, Marathon's investment was at $700 million valuation. That was actually a valuation cap when they came in in March, in February March.
So.
Well, let me say something after about four or five months of operating a demo facility. We knew we could produce clean zero landfill <unk>.
Materials, so that was a huge thing what we did for the next 12 months was Tuesday, we put every single type of panel, we could get our hands on to that thing I don't care if it's.
Speaker #3: Second investor came in with 20 million cash. You all know that. At a much, much higher valuation. But even if you use the cap, and you see that our underlying shares are 76%, then today there's an asset that could be valued at half a billion.
Mono Crystal lean.
Cylindrical.
Thin film those little tile concoctions, I mean, we put everything through the system.
Speaker #3: Market doesn't recognize it. Market is not giving us any credit for it. So but now they're funded. And now they're moving forward faster. Some of the most incredible people in the industry are joining that team.
Proved it proves it proved it proves it number one number two fortunato expanded and built a database of every possible.
Thermal cycle time every kinetic every chemistry.
Speaker #3: It's formidable. They're going to be commercializing. The state of Oklahoma is literally bending over backwards joyfully with us together. And our strategic investors to put a platform in place that will create an oil well that never stops producing.
And with all that data with all of that Knowhow, we finalized the design of the larger system.
Corrado Gasperis: The state of Oklahoma is literally bending over backwards, joyfully with us together and our strategic investors to put a platform in place that will create an oil well that never stops producing. That 65 million note will not show up on our balance sheet in the queue that you'll read tonight because we're still consolidating Biolium in our financials. But it's completely the objective to deconsolidate them. And based on our understanding of the accounting rules, and we're going to ask the FCC to validate it for us before we do it, we believe before the end of this year, it will be fully deconsolidated. And then people will have clarity to the fuel business and clarity to the metals business. But we can guide to that clarity today. Obviously, we know what the two pieces look like.
Someone said to me it looks like Youre scaling up 87 acts it's completely not correct. We're doing 5000 tons a year now we're going to go up to a 100000 tons of very very standard almost by the book scale up going from lab to pilot to now full demonstration operating where almost 20 months up to just the 20 X scale.
Speaker #3: That $65 million note will not show up on our balance sheet in the queue that you'll read tonight because we're still consolidating Bioleum in our financials.
And guess what that scale up is coming with all of the same manufactured equipment from the same manufacturer.
Speaker #3: But it's completely the objective to de-consolidate them and based on our understanding of the accounting rules and we're going to ask the SEC to validate it for us before we do it, we believe before the end of this year it will be fully de-consolidated.
That manufacturer.
We negotiated we enhanced we modified we finalized those designs so that we literally were ready today.
Speaker #3: And then people will have clarity to the fuels business and clarity to the metals business. But we can guide to that clarity today. Obviously, we know what the two pieces look like.
Two.
To purchase all of that equipment most of it requires like a 35 to almost 50% deposit.
Speaker #3: So, I know there's more I can say, but I also know that a lot of the questions that have already come in we'll cover it.
Corrado Gasperis: So I know there's more I can say, but I also know that a lot of the questions that have already come in will cover it. So, Zach, why don't we turn over to the questions?
And so it's about $5 million that will go right away tomorrow.
Speaker #3: So, Zach, why don't we turn over to the questions?
I would keep us on track for landing all this equipment by the end of the year.
Speaker #2: Thank you, Corrado. As I mentioned at the beginning of the call, we received more than 40 questions prior to the call. And I can see we have a number of additional questions coming through Zoom.
Zach Spencer: Thank you, Corrado. As I mentioned at the beginning of the call, we received more than 40 questions prior to the call. And I can see we have a number of additional questions coming through Zoom. Corrado and Judd, our first question is, congratulations on the funding. We really want to see the solar recycling maintain its market share lead. Have you already negotiated or ordered the equipment?
What are the lead times for the equipment should we expect higher capex due to tariffs.
Oh, that's a good question so.
Speaker #2: Corrado and Judd, our first question is, congratulations on the funding. We really want to see this solar recycling maintain its market share lead. Have you already negotiated or ordered the equipment?
The lead time is four to six months right and Thats not really a range that's.
Four months for one type of equipment five months for another type of equipment little buffer. So so people can understand how.
For us.
Speaker #3: Oh, yeah. I think I just mentioned I just mentioned that. So let me say something. After about four or five months of operating a demo facility, we knew we could produce clean zero landfill, you know, materials.
Getting this getting this ordered by now is absolutely critical so that it could concise coincide and synchronized.
Corrado Gasperis: Oh, yeah. I think I just mentioned that. So, let me say something. After about four or five months of operating a demo facility, we knew we could produce clean zero landfill, you know, materials. So that was a huge thing. What we did for the next 12 months was two things. We put every single type of panel we could freaking get our hands on through that thing. I don't care if it's, you know, monocrystalline, cylindrical, the thin film, those little tile concoctions. I mean, we put everything through the system, proved it, proved it, proved it, proved it. Number one. Number two, Fortunato expanded and built a database of every possible thermal cycle time, every kinetic, every chemistry, you know, and with all that data, with all that know-how, we finalized design of the larger system.
With our permits coming in.
By the end of this year.
All of our equipment is manufactured domestically and we have two major suppliers in California, very close to home we have one in Oregon. So it's like.
Speaker #3: So that was a huge thing. What we did for the next 12 months was two things. We put every single type of panel we could freaking get our hands on through that thing.
No tariffs no tariffs.
Speaker #3: I don't care if it's you know monocrystalline, cylindrical, the thin film, those little tile concoctions. I mean, we put everything through the system. Proved it, proved it, proved it, proved it, number one.
Can you phase in the capital for our facilities. So that was a question that.
I think probably came up because of something I. Previously said, we had laid out a scenario where we could.
Speaker #3: Number two, Fortunato expanded and built a database of every possible thermal cycle time, every kinetic, every chemistry. You know, and with all that data, with all that know-how, we finalized design of the larger system.
Phase in like instead of instead of $9 million to $10 million sort of phases, six and then another three to four but the way the ultimate crushed.
Crushing and separating system was designed we had our earnings.
I would call it almost like a mini breakthrough.
Speaker #3: Someone said to me, it looks like you're scaling up 87X. It's completely not correct. We're doing 5,000 tons a year now. We're going to go up to 100,000 tons.
Corrado Gasperis: Someone said to me, "It looks like you're scaling up 87x." It's completely not correct. We're doing 5,000 tons a year now. We're going to go up to 100,000 tons. A very, very standard, almost by the book, scale-up, you know, going from lab to pilot to now full demonstration operating. We're almost on 20 months up to just a 20x scale-up. And guess what? That scale-up is coming with all of the same manufactured equipment from the same manufacturer. And that manufacturer, we negotiated, we enhanced, we modified, we finalized those designs so that we literally were ready today, you know, to purchase all of that equipment. Most of it requires like a 35 to, you know, almost 50% deposit. And so it's about $5 million that'll go right away tomorrow that'll keep us on track for landing all this equipment by the end of the year.
We're just makes more sense to deploy the entire system.
So we won't phase it will be 100, well.
Speaker #3: A very, very standard almost by the book. Scale up, you know, going from lab to pilot to now full demonstration operating we're almost on 20 months up to just a 20X scale up.
We're not going to phase the first production line in the 100000 ton system.
Theoretically we could deploy another 100000 ton system same facility when the demand calls for it but the demand is ramping up the projects are ramping up the intimacy with the big utility companies.
Speaker #3: And guess what? That scale up is coming with all of the same manufactured equipment from the same manufacturer. And that manufacturer we negotiated, we enhanced, we modified, we finalized those designs.
Is is forging forward and this wont be linear it won't it won't be.
These things can improve.
20% every quarter until we're at 10 X, it's spiky and when it's spiky it means big orders and big panels, and if youre not in a position to take them and process them. Then you better be in a position to take them and store them, if you're not in a position to do either of those things youre going to Miss the market.
Speaker #3: So that we literally were ready today you know to purchase all of that equipment. Most of it requires like a 35 to you know almost 50% deposit.
Speaker #3: And so, it's about $5 million that'll go right away tomorrow that will keep us on track for landing all this equipment by the end of the year.
So so deploying this capacity fastest critical less likely to phase.
Speaker #2: What are the lead times for the equipment? Should we expect higher CapEx due to tariffs?
Zach Spencer: What are the lead times for the equipment? Should we expect higher CAPEX due to tariffs?
Full line will go in right away.
Can you permit and build facilities in parallel or the other states easier or harder to permit him.
Speaker #3: Oh, that's a good question. So the lead time is four to six months. Right? And that's not really a range. That's you know four months for one type of equipment, five months for another type of equipment, little buffer.
Corrado Gasperis: Oh, that's a good question. So the lead time is four to six months, right? And that's not really a range. That's, you know, four months for one type of equipment, five months for another type of equipment, little buffer. So people can understand how, you know, for us, you know, getting this ordered by now is absolutely critical so that it could coincide and synchronize, you know, with our permits coming in, you know, by the end of this year. All of our equipment is manufactured domestically. We have two major suppliers in California, very close to home. We have one in Oregon. So it's like no tariffs.
So I mentioned, Nevada, I would put in Nevada, and the harder ended the scale we did.
Speaker #3: So people can understand how you know for us, you know getting this getting this ordered by now was absolutely critical so that it could concide coincide and synchronize you know with our permits coming in.
Nevada somehow became a recycling hub not for solar panels of course, we're the only ones doing that but for batteries, you've got Redwood you've got American battery.
You've got some other companies are recycling here. So the regulations every state interprets and federal regulations, a little differently some of them coordinate with each other but because nevada sophisticated.
Speaker #3: You know, by the end of this year. All of our equipment is manufactured domestically. We have two major suppliers in California, very close to home.
Speaker #3: We have one in Oregon. So it's like no tariffs. No tariffs.
Cause of the mining industries platform here.
Take it very hard and very seriously. So the good news is we're through but one of the hardest task.
Speaker #2: Can you phase in the capital for a facility?
Zach Spencer: Can you phase in the capital for a facility?
Speaker #3: So So that was a question that I think probably came up because of something I previously said. We had laid out a scenario where we could phase in like you know instead of nine to 10 million, you know sort of phase in six and then another three to four.
Corrado Gasperis: So that was a question that I think probably came up because of something I previously said. We had laid out a scenario where we could phase in, like, you know, instead of 9 to 10 million, you know, sort of phase in six and then another three to four. But the way the ultimate crushing and separating system was designed, we had an, I would call it almost like a mini breakthrough where it just makes more sense to deploy the entire system. So we won't phase it. It'll be 100,000. Well, we're not going to phase the first production line in the 100,000-ton system. Theoretically, we could deploy another 100,000-ton system in that same facility, you know, when the demand calls for it. But the demand is ramping up, right? The projects are ramping up. The intimacy with the big utility companies is forging forward.
We understand that Texas is easier.
No disparagement or opinion on that what we did do though is we hired one of the top regulators from the Nevada Department of Environmental Protection, who was responsible for a.
Speaker #3: But the way the ultimate crushing and separating system was designed we had a I would call it almost like a mini breakthrough where it just makes more sense to deploy the entire system so we won't phase it.
A lot of these regulations guidelines and implementations for hazardous waste handling and recycling she's already scanning the country for the sites that were in the states that we're interested in and we're already preparing for.
Speaker #3: It'll be 100,000 well, we're not going to phase the first production line in the 100,000 ton system. Theoretically, we could deploy another 100,000 ton system in that same facility.
How we might modify our existing permitting regime once we leave Nevada now.
I think there's no question, we're going to get this first one commissioned in Q1 operating in Q2.
Speaker #3: You know, when the demand calls for it. But the demand is ramping up, right? The projects are ramping up. The intimacy with the big utility companies is forging forward.
We're going to we're going to try to go faster there isn't any reason, we shouldnt go faster for the second facility in Nevada as long as we get that permit filed before the end of this year that'll keep us on track to go faster facility to get it up and running let's say Q1 of next year.
Speaker #3: And this won't be linear. It won't be you know this thing's going to improve you know 10 or 20% you know every quarter until we're at 10X.
Corrado Gasperis: And this won't be linear. It won't be, you know, this thing's going to improve, you know, 10 or 20%, you know, every quarter until we're at 10x. It's spiky. And when it's spiky, it means, you know, big orders and big panels. And if you're not in a position to take them and process them, then you better be in a position to take them and store them. If you're not in a position to do either of those things, you're going to miss the market. So deploying this capacity fast is critical. Less likely to phase, you know, a full line will go in right away.
And then I <unk>.
Then the other question is relevant like what could we do in advance to at least sites select two or three sites at the same time at least start the permitting for two or three sites at the same time and at least enables storage because if you do that if you have storage, which has much shorter lead time for permitting.
Speaker #3: It's spiky. And when it's spiky, it means you know big orders and big panels and if you're not in the position to take them and process them, then you better be in a position to take them and store them.
Speaker #3: If you're not in a position to do either of those things, you're going to miss the market. So, deploying this capacity fast is critical.
And if you have any breakthrough in storage.
Speaker #3: Less likely to phase you know a full line will go in right away.
Pre existing storage or whatever then you'll be taking business right away, even before you get the permit so.
The permit for processing, so I think as I said earlier, if we do one a year for three years and we have a 30% market share.
Speaker #2: Can you permit and build facilities in parallel? Are the other states easier or harder to permit in?
Zach Spencer: Can you permit and build facilities in parallel? Are the other states easier or harder to permit in?
I'll personally feel like we dropped the ball if we if we have a.
Speaker #3: So I mentioned Nevada. I would put Nevada on the harder end of the scale. We did you know Nevada somehow became a recycling hub, not for solar panels, of course, we're the only ones doing that.
Corrado Gasperis: So I mentioned Nevada. I would put Nevada on the harder end of the scale. We did, you know, Nevada somehow became a recycling hub, not for solar panels, of course. We're the only ones doing that, but for batteries. You know, you've got Redwood, you've got American Battery. You know, you've got some other companies that are recycling here. So the regulations, every state interprets the federal regulations a little differently. Some of them coordinate with each other. But because Nevada is sophisticated, because of the mining industry's platform here, they take it very hard and very seriously. So the good news is we're through one of the hardest tests. We understand that Texas is easier. No disparagement or opinion on that.
Look I want 100% market share, but we will see what happens when we get 50 60 70, it'll be because we went for it all not because we were satisfied with less so when you when you have $55 million of facility.
Speaker #3: But for batteries, you know you've got Redwood, you've got American Battery, you know you've got some other companies that are recycling here. So the regulations every state interprets the federal regulations a little differently.
You started thinking about 567 facilities and remember everybody.
We're only talking about the United States.
Speaker #3: Some of them coordinate with each other. But because Nevada's sophisticated, because of the mining industry's platform here, they take it very hard and very seriously.
We haven't talked about.
Anything else so.
It's big.
A person is confused by the potential market is that millions of solar panels, where billions of tonnes.
Speaker #3: So the good news is we're through one of the hardest tests. We understand that Texas is easier. No disparagement or opinion on that. What we did do, though, is hire one of the top regulators from the Nevada Department of Environmental Protection who was responsible for a lot of these regulations, guidelines, and implementations for hazardous waste handling and recycling.
Yeah.
So.
Well ultimately, it's both so today or.
Or at least in 2024, we saw over 3 million panels come to end of life 3 million panels, which is about 100000 tons in 2030, it's going to be 1 million tons in the United States in 2015, we're projecting 8 million tons.
Corrado Gasperis: What we did do, though, is we hired one of the top regulators from the Nevada Department of Environmental Protection, who was responsible for, you know, a lot of these regulations, guidelines, and implementations for hazardous waste handling and recycling. She's already scanning the country for the sites that we're and the states that we're interested in. And we're already preparing for how we might modify our existing permitting regime once we leave Nevada. Now, I think there's no question we're going to get this first one commissioned in Q1 operating in Q2. We're going to try to go faster. There isn't any reason we shouldn't go faster for the second facility in Nevada. As long as we get that permit filed before the end of this year, that'll keep us on track to go faster for facility two, get it up and running, let's say, Q1 of next year.
Speaker #3: She's already scanning the country for the sites that we're and the states that we're interested in. And we're already preparing for how we might modify our existing permitting regime once we leave Nevada.
It's millions of panels today.
It'll be tens and hundreds of millions of panels in the future. It's hundreds of thousands of tons today, it'll be millions of tons in the future.
Speaker #3: Now, I think there's no question we're going to get this first one commissioned in Q1 operating in Q2. We're going to go we're going to try to go faster there isn't any reason we shouldn't go faster for the second facility in Nevada as long as we get that permit filed before the end of this year.
Good question a good clarification.
And metal success seems to rely on long term contracts.
<unk> are good but do you expect stronger longer guaranteed contract.
I think I think this is a really this is a really.
Speaker #3: That'll keep us on track to go faster for facility two, get it up and running, let's say Q1 of next year. And then I think then though the question is relevant.
This is this question is really profound in the sense of what the market is so let me let me let me re verbalize Theres three things that give us competitive advantage one zero landfill solution.
Corrado Gasperis: And then I think then, though, the question is relevant. Like, what could we do in advance to at least site select two or three sites at the same time, at least start the permitting for two or three sites at the same time, and at least enable storage? Because if you do that, if you have storage, which has much shorter lead time for permitting, and if you have any breakthrough in storage, you know, if there's pre-existing storage, you know, whatever, then you'll be taking business right away, even before you get the permit. So, you know, the permit for processing. So I think, as I said earlier, if we do one a year for three years and we have a 30% market share, I'll personally feel like we dropped the ball. If we have a, look, I want 100% market share, but we'll see what happens, right?
Speaker #3: Like what could we do in advance to at least site select two or three sites at the same time? At least start the permitting for two or three sites at the same time and at least enable storage.
Okay, we don't have one operating competitor.
Speaker #3: Because if you do that, if you have storage, which has much shorter lead time for permitting, and if you have any breakthrough in storage, you know if there's some preexisting storage, you know whatever, then you'll be taking business right away.
That represents that they're zero landfill I mean, the best we've heard is we can do up to 90% recovery someone might've said 95, I can't remember, but.
Speaker #3: Even before you get the permit. So you know the permit for processing. So I think, as I said earlier, if we do one a year for three years and we have a 30% market share, I'll personally feel like we dropped the ball.
Zero landfill number one.
Number two.
You have the capacity to handle millions and millions of panels. The only people that have the capacity to handle millions and millions of panel are us and landfill.
Speaker #3: If we have a look, I want 100% market share. But we'll see what happens. Right? We get 50, 60, 70, it'll be because we went for it all, not because you know we were satisfied with less.
The major landfill companies don't want this stuff, they're not taking this stuff, California, Texas no.
Corrado Gasperis: We get 50, 60, 70, it'll be because we went for it all, not because, you know, we were satisfied with less. So when you have 55 million a facility, you start thinking about five, six, seven facilities. And remember, everybody, we're only talking about the United States. We haven't talked about anything else. So it's big.
So so so where does this stuff going there as theyre shady stuff happening right. So so.
Speaker #3: So when you have 55 million a facility, you start thinking about five, six, seven facilities. And remember, everybody, we're only talking about the United States.
We are dealing our customer base, 85% of the market that we're projecting our highly sophisticated and responsible.
Speaker #3: We haven't talked about anything else. So it's big.
Utility companies that have HSN in key professionals.
You'd be shocked to hear maybe that the top two utility.
Speaker #2: A person is confused by the potential market. Is it millions of solar panels or millions of tons?
Zach Spencer: A person who's confused by the potential market. Is it millions of solar panels or millions of tons?
Companies in California have directly called our regulators in Nevada directly reviewed our permits with that.
Speaker #3: Oh, so, well, ultimately it's both. So today, or at least in 2024, we saw over 3 million panels come to the end of their life—3 million panels.
That's what we want.
Now now you've got scale, you've got environmental peace of mind for your customers literally selling them environmental peace of mind, because if you can't zero, if you can't destroy them and transform those materials into useful product. That's a tail on a liability that the customer has stuck.
Corrado Gasperis: Well, ultimately, it's both. So today, or at least in 2024, we saw over 3 million panels come to end of life, 3 million panels, which is about 100,000 tons. In 2030, it's going to be a million tons in the United States. In 2050, we're projecting 8 million tons. So it's millions of panels today. It'll be tens and then hundreds of millions of panels in the future. It's hundreds of thousands of tons today. It'll be millions of tons in the future. Good question, though. Good clarification.
Speaker #3: Which is about 100,000 tons. In 2030, it's going to be a million tons. In the United States. In 2050, we're projecting 8 million tons.
It's like a super fun thing so.
So we sell them peace of mind definitively.
Speaker #3: So it's millions of panels today; it'll be tens and then hundreds of millions of panels in the future. It's hundreds of thousands of tons today; it'll be millions of tons in the future.
And we can scale it so today the scaling issue. It's nice that you get even a big company that has 50 60 80000 panels, we take 80000 panels in from one customer in Q1.
Speaker #3: Good question though. Good clarification.
Speaker #2: And And metal success seems to rely on long-term contracts. MSAs are good, but do you expect stronger longer guaranteed contracts?
Zach Spencer: And metal success seems to rely on long-term contracts. MSAs are good, but do you expect stronger, longer guaranteed contracts?
You might have somebody able to take those panels I'm not sure when and how fast they're going to be able to process them, but they can probably get away with taken up.
Speaker #3: I I think I think this is a really this is a really this question is really profound in the sense of what the market is.
Corrado Gasperis: I think this is a really, this is a really, this question is really profound in the sense of what the market is. So let me reverbalize. There's three things that give us competitive advantage. One, zero landfill solution. Okay. We don't have one operating competitor that represents that their zero landfill. I mean, the best we've heard is we can do up to 90% recovery. I mean, someone might have said 95. I can't remember. But zero landfill, number one. Number two, you have the capacity to handle millions and millions of panels. The only people that have the capacity to handle millions and millions of panels are us and a landfill. The major landfill companies don't want this stuff. They're not taking this stuff. California, Texas, no. So, so, so where is this stuff going? There's, there's, there's shady stuff happening, right?
But when you have 500000 panels when you have a million house.
What are you going to do so so that's the second competitive advantage the third is cost.
Speaker #3: So let me reverbalize there's three things that give us competitive advantage. One, zero landfill solution. Okay. We don't have one operating competitor that represents that they're zero landfill.
There's no one that isn't as fast and as efficient as we are $150 all in per ton absolute lowest cost. However, if you're sitting right on California, if you're sitting right on Nevada, if you're sitting there in Arizona you when nobody can beat you not a chance in fact, if they are in Texas or in Florida. If you can add another 150 to 250.
Speaker #3: I mean, the best we've heard is we can do up to 90% recovery. I mean, someone might have said 95. I can't remember. But zero landfill, number one.
Dollars a ton for transport can't win can't beat Us However.
If there's somebody in Florida than we need to be in Florida, we need to be in Georgia, we need to be in North Carolina, we need to be in Texas. So that we don't have a disadvantage on logistics cost now customers pay for.
Speaker #3: Number two, you have the capacity to handle millions and millions of panels. The only people that have the capacity to handle millions and millions of panels are us and a landfill.
Sending it to us today, but.
Speaker #3: The major landfill companies don't want this stuff. They're not taking this stuff. California, Texas, no. So where is this stuff going? There's shady stuff happening.
It's an all in cost for the customer if youre not minimizing it.
You won't hold onto it so.
I hope I answered that question effectively I guess the point, let me make the point is the msas fully and totally define the interdependent and operating parameters between us and the customer and us.
Speaker #3: Right? So we're dealing with our customer base, 85% of the market that we're projecting are highly sophisticated and responsible utility companies that have HS&EP professionals. You'd be shocked to hear, maybe, that the top two utility companies in California have directly called our regulators in Nevada.
Corrado Gasperis: So, so we're dealing, our customer base, 85% of the market that we're projecting are highly sophisticated and responsible utility companies that have HS&EP professionals. You would be shocked to hear maybe that the top two utility companies in California have directly called our regulators in Nevada, directly reviewed our permits with them. That's what we want. Now, now you've got scale, you've got environmental peace of mind for your customers. You're literally selling them environmental peace of mind. Because if you can't zero, if you can't destroy and and transform those materials into a useful product, that's a pale on a liability that the customer is stuck to. It's like a super fun thing. So we sell them peace of mind definitively. And we can scale it. So today, the scaling issue is, it's nascent.
Otherwise everything is in place for us to take that many panels from that we don't see anybody else having that in place to take that many pounds from them I think once that becomes clearer once that becomes more obvious than the agreements probably to their benefit the.
The agreements will become longer term and more secured and they're going to want some kind of economic benefit from giving us all of that business.
Speaker #3: Directly reviewed our permits with them. That's what we want. Now, now you've got scale, you've got environmental peace of mind for your customers, you're literally selling them environmental peace of mind.
We're happy to do that but today, we know we're the only ones that can take all of that business and it's not necessarily even our best interest to lock it up in terms of the long term contract I know it gives people peace of mind, but.
Speaker #3: Because if you can't zero if you can't destroy and and transform those materials into a useful product, that's a tale on a liability that the customer is stuck to.
We know where the panels are we know what the economic agreements are we know what the logistics extreme is our and the business is coming to us.
Speaker #3: It's like a super fun thing. So we sell them peace of mind, definitively. And we can scale it. So today, the scaling issue is that it's nascent.
Why are the asset sales, taking so long what is really happening there can you provide some better insight.
Speaker #3: Like if you get even a big company that has 50,000, 60,000, or 80,000 panels, we take 80,000 panels in from one customer in Q1. You might have somebody able to take those panels.
Corrado Gasperis: If you get even a big company that has 50, 60, 80,000 panels, we take 80,000 panels in from one customer in Q1. You might have somebody able to take those panels. I'm not sure when and how fast they're going to be able to process them, but they could probably get away with taking them. But when you have 500,000 panels, when you have a million panels, what are you going to do? So that's the second competitive advantage. The third is cost. There's no one that is as fast and as efficient as we are. $150 all in per ton. Absolute lowest cost. However, if you're sitting right on California, if you're sitting right on Nevada, if you're sitting right on Arizona, you win. Nobody can beat you. Not a chance.
So.
I mentioned it briefly.
I mentioned it briefly the.
The power grid bottleneck.
Speaker #3: I'm not sure when and how fast they're going to be able to process them. But they could probably get away with taking them. But when you have 500,000 panels, when you have a million panels, what are you going to do?
When Google and Microsoft and tracked.
All came in heavy.
And negotiated.
Power agreements that they need to top rate their data center switch did that a long time ago everything was kosher everybody was happy right. Then you get powerhouse and then you get.
Speaker #3: So that's the second competitive advantage. The third is cost. There's no one that is as fast and as efficient as we are—$150 all-in per ton.
Speaker #3: Absolute lowest cost. However, if you're sitting right on California, if you're sitting right on Nevada, if you're sitting right on Arizona, you win. Nobody can beat you.
Encore and then you can go on and on and the amount of energy like Wow. Okay. Six months lead time becomes 12 month lead time becomes 18 months lead time becomes a two year lead time.
Speaker #3: Not a chance. In fact, if they're in Texas or in Florida, it's going to add another 150 to 250 dollars a ton for transport.
Corrado Gasperis: In fact, if they're in Texas or in Florida, it's going to add another $150 to $250 a ton for transport. Can't win. Can't beat us. However, if there's somebody in Florida, then we need to be in Florida. We need to be in Georgia. We need to be in North Carolina. We need to be in Texas so that we don't have a disadvantage on logistics cost. Now, customers pay for sending it to us today, but you know, it's an all-in cost for the customer. If you're not minimizing it, you won't hold on to it. So I hope I answered that question effectively. I guess the point, let me make the point, is the MSAs fully and totally define the interdependent and operating parameters between us and the customer. In other words, everything is in place for us to take that many panels from them.
Lead time is manageable for large industrial development, but it made a lot of people pause.
Speaker #3: Can't win. Can't beat us. However, if there's somebody in Florida, then we need to be in Florida. We need to be in Georgia. We need to be in North Carolina.
And what they did was they basically scour the country for megawatts 50 megawatts in San Antonio, Let's go do a dataset Oh look Theres 65 megawatts in Georgia, Let's go do a data center, there and everybody ran around chasing and finding all these inefficiencies in the market now that's gone.
Speaker #3: We need to be in Texas so that we don't have a disadvantage on logistics costs. Now, customers pay for sending it to us today.
Speaker #3: But you know it's an all-in cost for the customer. If you're not minimizing it, you won't hold on to it. So, I hope I answered that question.
Now people are pulling tens and hundreds of billions of dollars.
Sovereign nations hundreds of billions are federal government, it's the whole AI compute data center.
Speaker #3: Effectively. I guess the point, let me make the point, is the MSAs fully and totally define the interdependent and operating parameters between us and the customer.
And it's not about making money on data it is about that of course.
Speaker #3: In other words, everything is in place for us to take that many panels from them. I don't see anybody else having that in place to take that many panels from them.
It's also about who's going to win this AI race.
Corrado Gasperis: We don't see anybody else having that in place to take that many panels from them. I think once that becomes clear, once that becomes more obvious, then the agreements, probably to their benefit, the agreements will become longer-term and more secured. And they're going to want some kind of economic benefit from giving us all that business. You know, we'll be happy to do that. But today, we know we're the only ones that can take all that business. And it's not necessarily even in our best interest to lock it up in terms of the long-term contract. I know it gives people peace of mind, but we know where the panels are. We know what the economic agreements are. We know what the logistics agreements are. And the business is coming to us.
Everybody and their mother wants to put Mega money. This is although we don't have any power we don't care.
Speaker #3: I think once that becomes clear, once that becomes more obvious, then the agreements probably to their benefit. The agreements will become longer term and more secured.
Let's get natural gas turbines.
Get a geothermal let's get solar let's get nuclear so what's happening now is that these consortiums have.
Speaker #3: And they're going to want some kind of economic benefit from giving us all that business. You know, where are we happy to do that.
Speaker #3: But today, we know we're the only ones that can take all that business. And it's not necessarily even in our best interest to lock it up in terms of the long-term contract.
Align themselves to do these things together and quite frankly, it's on a bigger scale than I ever even fathom. So.
Speaker #3: I know it gives people peace of mind. But we know where the panels are. We know what the economic agreements are. We know what the logistics agreements are.
We're now engaged with four or five of these new paradigm approaches.
I'm much more confident although no one will give me any.
Speaker #3: And the business is coming to us.
Kudos I don't I don't want any.
Speaker #2: Why are the assets sales taking so long? What is really happening there? Can you provide some better insight?
Zach Spencer: Why are the asset sales taking so long? What is really happening there? Can you provide some better insight?
Credibility on this until we sell them [laughter] right I know, we've gone through a little bit of rollercoaster, we understand the roller coaster, it's not lack of effort it's not in confidence since the market is dynamic and so net net it means higher values to our property, but we need to get them sold and.
Speaker #3: So I mentioned it briefly. I mentioned it briefly. The power grid bottleneck. You know, when Google and Microsoft and Tract. You know, all came in heavy, you know, and negotiated the power agreements that they needed to operate their data centers, which did that a long time ago.
Corrado Gasperis: So I mentioned it briefly. I mentioned it briefly. The power grid bottleneck, you know, when Google and Microsoft and TRACT, you know, all came in heavy, you know, and negotiated the power agreements that they needed to operate their data centers. Switch did that a long time ago. Everything was kosher. Everybody was happy, right? Then you get Powerhouse. And then you get Encore. And then you get, I mean, I can go on and on. And Nevada Energy is like, well, okay, six-month lead time becomes 12-month lead time, becomes 18-month lead time, becomes a two-year lead time. Two-year lead time is manageable for large industrial development, but it made a lot of people pause. And what they did was they basically scoured the country for megawatts. Oh, look, there's 50 megawatts in San Antonio. Let's go do a data center. Oh, look, there's 65 megawatts in Georgia.
Move on.
Berardo Chad also serves as the president of Comstock mining. Our next question is are we going to sell where mine the gold and silver mineral assets.
Speaker #3: Everything was kosher. Everybody was happy. Right? Then you get powerhouse. And then you get Encore. And then you get I mean, I can go on and on.
No.
Look Jud Jud Jud has.
An extensive career in precious metal mining three three distinct companies excluding ours.
Speaker #3: And Nevada Energy's like, well, okay, six-month lead time becomes a twelve-month lead time, becomes an eighteen-month lead time, becomes a two-year lead time. And a two-year lead time is manageable for large industrial development, but it made a lot of people pause.
Led to sales to intermediate or major mining companies that didnt common track record.
Speaker #3: And what they did was they basically scoured the country for megawatts. Oh, look, there's 50 megawatts in San Antonio. Let's go do a data center.
We're going to monetize the assets I cant I cant give any better color than that but there is companies that would buy them. There's companies that would joint venture and fund them, there's companies that would buy a percentage and joint venture and fund them.
Speaker #3: Oh, look, there's 65 megawatts in Georgia. Let's go do a data center there. And everybody ran around chasing and finding all these inefficiencies in the market.
Corrado Gasperis: Let's go do a data center there. And everybody ran around chasing and finding all these inefficiencies in the market. Now that's gone. Now people are pulling tens and hundreds of billions of dollars. Like sovereign nations, hundreds of billions. Our federal government, it's the whole AI compute data center. And it's not about making money on data. It is about that, of course. It's also about who's going to win this AI race. Everybody and their mother wants to put mega money. They say, oh, well, we don't have any power. We don't care. Let's get, you know, natural gas turbines. Let's get geothermal. Let's get solar. Let's get nuclear. So what's happening now is that these consortiums have aligned themselves to do these things together. And quite frankly, it's on a bigger scale than I ever even fathomed.
Speaker #3: Now that's gone. Now people are pulling tens and hundreds of billions of dollars, like sovereign nations—hundreds of billions. Our federal government, it's the whole AI compute data center, and it's not about making money on data.
Theres a big spectrum.
So we're.
It's not as heavy as the real estate discussions that are going on but it's it's absolutely picking up so I don't know, where it's going to land, but what our goal is is a.
Speaker #3: It is about that, of course. It's also about who's going to win this AI race. Everybody in their mother wants to put mega money these things.
Some money.
Hopefully, it's meaningful and B, we unlock the value of this thing for our shareholders.
So maybe separating maybe spinning them. So one of the transformational transactions that I alluded to in the January shareholder letter, but I'm entirely now for the first five or six months of the year, where all we got was inquiries that that sort of played out as being a credible or not.
Speaker #3: Oh, well, we don't have any power. We don't care. Let's get, you know, natural gas turbines. Let's get geothermal. Let's get solar. Let's get nuclear.
Speaker #3: So what's happening now is that these consortiums have aligned themselves to do these things together. And, quite frankly, it's on a bigger scale than I ever even fathomed.
Meaningful and now we're getting some meaningful incredible inquiries.
Again.
Without John.
Speaker #3: So we're now engaged with four or five of these new paradigm approaches. And I'm much more confident, although no one will give me any kudos.
Corrado Gasperis: So we're now engaged with four or five of these new paradigm approaches. And I'm much more confident, although no one will give me any kudos. I don't want any credibility on this until we sell them. Right? I know we've gone through a little bit of a roller coaster. We understand the roller coaster. It's not lack of effort. It's not incompetence. The market is dynamic. And so net net, it means higher values to our property. But we need to get them sold and move on.
I'm not sure how how well we would've been able to prioritize those things now they can be fully prioritized.
Rialto as a shareholder this person is not clear what they get from a future by Oleum IPO.
Speaker #3: I don't want any credibility on this until we sell them. Right? I know we've gone through a little bit of roller coaster. We understand the roller coaster.
Did it get shares equal to the average shares again apologies for me that to the extent we caused any confusion initially using terms like spin out and maybe examples of what was possible.
Speaker #3: It's not a lack of effort. It's not incompetence. It's that the market is dynamic. And so, net-net, it means higher values for our property. But we need to get them sold and move on.
Might have set the wrong expectation. So there was no real way to efficiently do a share for share spin out so that that got taken off the table very quickly. There is no way to do it in a tax free manner for our shareholders more importantly by only Amazon generating revenue or profit yet so.
Speaker #2: Corrado, Judd also serves as the president of Comstock Mining. Our next question is: Are we going to sell or mine the gold and silver mineral assets?
Zach Spencer: Corrado, Judd also serves as the president of Comstock Mining. Our next question is, are we going to sell or mine the gold and silver mineral assets?
Speaker #3: So So look, Judd, Judd has an extensive career in precious metal mining. Three distinct companies excluding ours. That led to sales to intermediate or major mining companies.
Corrado Gasperis: So look, Judd has an extensive career in precious metal mining. Three distinct companies, excluding ours, that led to sales to intermediate or major mining companies. That's an uncommon track record. We're going to monetize the assets. I can't give any better color than that, but there's companies that would buy them. There's companies that would joint venture and fund them. There's companies that would buy a percentage in joint venture and fund them. There's a big spectrum. So it's not as heavy as the real estate discussions that are going on, but it's absolutely picking up. So I don't know where it's going to land, but what our goal is, is A, some money, hopefully it's meaningful, and B, we unlock the value of this thing for our shareholders. You know, so maybe separating, maybe spinning them.
Taking a company public in the near term would have been an absolute disaster in my opinion so.
What we did do was we protected the investment with the preferred and we have.
76% today of the underlying common $32 5 million shares.
Speaker #3: That's an uncommon track record. We're going to monetize the assets. I can't give any better color than that. But there are companies that would buy them.
Our agreement is Ren is that.
We can't convert to common shares until there's an IPO.
Speaker #3: There's companies that would joint venture and fund them. There's companies that would buy a percentage and joint venture and fund them. There's a big spectrum.
If theres, an IPO and we hold onto the investment world.
Were eliminated in the amount of common shares that we could convert.
Unless we wanted to distribute it to our shareholders in which case, we could distribute it all to our shareholders I have no idea.
Speaker #3: So we're it's not as heavy as the real estate discussions that are going on. But it's absolutely picking up. So I don't know where it's going to land.
When it's going to go public what the value is going to be when it goes public.
Speaker #3: But what our goal is, is A, some money hopefully it's meaningful. And B, we unwant the value of this thing for our shareholders. You know, so maybe separating, maybe spinning them.
And how and if we would distribute it to shareholders. However.
If the company goes public and it's a multi multibillion dollar enterprise and we own a lot of it okay.
Speaker #3: But it's one of the transformational transactions that are alluded to in the January shareholder letter. But I'm going to tell you right now, for the first five or six months of the year, all we got was inquiries that sort of played out as being not credible or not meaningful.
Corrado Gasperis: It's one of the transformational transactions that I alluded to in the January shareholder letter. But I'm going to tell you right now, for the first five or six months of the year, all we got was inquiries that that sort of played out as being not credible or not meaningful. And now we're getting some meaningful and credible inquiries. Again, without Judd, I'm not sure how well we would have been able to prioritize those things. Now they can be fully prioritized.
If it is public if you have a validated public valuation.
Then the probability and chances are it's showing up in our valuation or a hell of a lot higher more probable than.
It would be today, where were seeing almost none of it show up in our valuation so ensuring that they were funded ensuring that they can continue this incredible business plan, which is bigger than anything I've ever seen.
Speaker #3: And now we're getting some meaningful and credible inquiries. Again, without Judd, I'm not sure how well we would have been able to prioritize those things.
Speaker #3: Now they can be fully prioritized.
Ensuring that they can get profitable ensuring that they can get revenue ensuring that they can then go public will be extraordinarily valuable for our shareholders any way you want to cut it.
Speaker #2: Corrado, as a shareholder, this person is not clear what they get from a future Bioleum IPO. They get shares equal to their own shares.
Zach Spencer: Corrado, as a shareholder, this person is not clear what they get from a future Biolium IPO. They get shares equal to their own shares.
Any way you want to cut it.
Speaker #3: Again, apologies for me that to the extent we caused any confusion initially, you know, using terms like spin out and maybe examples. Of what was possible.
Corrado Gasperis: Again, apologies for me that to the extent we caused any confusion initially, you know, using terms like spin-out and maybe.Examples
And if for some reason.
We have a multibillion dollar company.
That we own more than half of.
Corrado Gasperis: of what was possible. We might have set the wrong expectation. So there was no real way to efficiently do a share-for-share spin-out. So that got taken off the table very quickly. There's no way to do it in a tax-free manner, you know, for our shareholders. More importantly, Bionium is not generating revenue or profit yet. So, you know, taking that company public in the near term would have been an absolute disaster, in my opinion. So, what we did do was we protected the investment with the preferred, and we have, you know, 76% today of the underlying common, 32.5 million shares. The way that our agreement is written is that we can't convert to common shares until there is an IPO. If there's an IPO and we hold on to the investment, we're limited in the amount of common shares that we could convert.
Speaker #3: We might have set the wrong expectation. So, there was no real way to efficiently do a share-for-share spin-out. Okay? So, that got taken off the table very quickly.
That is not showing up in our share price then we will be forced to do something.
Like distribute it out or whatever.
But we don't we'll see when we come the answer to the question is will be the absolute best fiduciary is based on what we know and what we see for our shareholders always which is what we've always done.
Speaker #3: There's no way to do this in a tax-free manner, you know, for our shareholders. More importantly, Bioleum's not generating revenue or profit yet. So, taking a company public in the near term would have been an absolute disaster.
And even though we haven't seen big a recognition we are seeing recognition.
Speaker #3: In my opinion. So what we did do was we protected the investment with the preferred. And we have you know 76% today of the underlying common 32.5 million shares.
We are seeing enable Matt we are seeing funding go directly into the business and we're seeing now.
World Class and I don't say that with any hesitation world class institutional investors dozens and dozens of them in our stock today.
That wasn't true.
Yesterday.
So we now have a formidable high high high quality institutional capital base to complement.
Corrado Gasperis: Unless we wanted to distribute it to our shareholders, in which case we could distribute it all to our shareholders. I have no idea when it's going to go public, what the value is going to be when it goes public, and how, and if we would distribute it to shareholders. However, if the company goes public and it's a multi, multi-billion dollar enterprise and we own a lot of it, okay? If it's public, if you have a validated public valuation, then the probability and chances of it showing up in our valuation are a hell of a lot higher, more probable than it would be today, where we're seeing almost none of it show up in our valuation.
A very very sophisticated.
High net worth and retail capital there. It's the best of all worlds starting now now what does that mean, we need to execute going forward.
I purposely wanted to go through this metal's plan the way that I did because it's all about execution.
Get the permit land the equipment commission that facility get more and more bigger customers build that storage get the second site submit the permit at the third and fourth site.
And then pay attention to landscape.
Whereas the competitor that can do what we can do those show up eventually.
Corrado Gasperis: So, ensuring that they're funded, ensuring that they can continue this incredible business plan, which is bigger than anything I've ever seen, ensuring that they can get profitable, ensuring that they can get revenue, ensuring that they can then go public, will be extraordinarily valuable for our shareholders any way you want to cut it. Any way you want to cut it. Okay? If for some reason we have a multi-billion dollar company that we own more than half of that is not showing up in our share price, then we'll be forced to do something like distribute it out or whatever. Okay? But we don't, we'll see when we come. The answer to the question is we'll be the absolute best fiduciaries based on what we know and what we see for our shareholders, always, which is what we've always done.
Takes them two or three years theyre going to be too late.
Thank you Corrado.
We have come up on a one hour. So that concludes Comstock second quarter 2025 earnings call and business update.
If we did not get to your question. Please send it to IR at Comstock, Inc. Dot Com and we will do our best to respond either directly or we'll post a response on X for anyone who is not following us on X. Our main account is at Comstock each please.
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And Colorado did you want to yes, and Youre close yes, yes, I just want I want to make three closing statements one is.
I noticed someone had asked act that.
There was there is why was why it was a bit of a use of proceeds like over well over $1 million being used for northern Comstock.
Corrado Gasperis: And even though we haven't seen bigger recognition, we are seeing recognition. We are seeing enablement. We are seeing funding go directly into the business. And we're seeing now world-class, and I don't say that with any hesitation, world-class institutional investors, dozens and dozens of them in our stock today. That wasn't true yesterday. So we now have a formidable, high, high, high quality institutional capital base to complement a very, very sophisticated high net worth and retail capital base. It's the best of all worlds starting now. Now, what does that mean? We need to execute going forward. I purposely wanted to go through this metals plan the way that I did because it's all about execution.
Like to just address that one because.
As part of these proceeds in and.
And as part of our agreement we had acquired some very very very valuable mineral properties in the central part of the district, we did it through this northern Comstock entity and what the agreement says is that if we have a liquidity event or over $12 $5 million, we have to accelerate when payments. So we're accelerating one payment, but here's the good.
News this acceleration resulted in the completion of the payments for that mineral property, 100% complete and also represented almost $820000 of expenses in our annual P&L that are gone so no more obligation.
No more expenses.
Going forward.
And we own 100% of these mineral properties.
That have hundreds of thousands of ounces associated with them. So that's number one number two we concluded prior to this offering fully.
Corrado Gasperis: Get the permit, land the equipment, commission the facility, get more and more bigger customers, build that storage, get the second site, submit the permit, get the third and fourth site, and then pay attention to the landscape. Where's the competitor that can do what we can do? They'll show up eventually. But if it takes them two or three years, they're going to be too late.
Austin wishing the obligation associated with the acquisition.
The organic sales technology for fuels with American Science and technology.
That's extinguished and that had also like.
Almost $1 million a year of lease and rent expense, it's been extinguished we now own the property, 100% we pay no more rent. We also completed we haven't closed on it but we've eliminated the obligation. This was before not using these proceeds.
Zach Spencer: Thank you, Corrado. Well, it looks like we have come up on one hour. So that concludes Comstock's second quarter 2025 earnings call and business update. If we did not get to your question, please send it to ir@comstockinc.com and we'll do our best to respond either directly or we'll post the response on X. For anyone who is not following us on X, our main account is @ComstockInc. Please follow us. And Corrado, did you want to give your closing?
For the acquisition of the Haywood, Cory, which is an absolutely critical mining property adjacent or near adjacent to our Dean operation that enables that mine plan to get to the finish line and we extinguished.
The obligation associated with the acquisition of <unk>, which is who owns that green line investments. So we've extinguished all of these obligations on balance sheet off balance sheet, they're all gone.
And then we extinguished the convertible note and then we pay down the promissory notes. So it would be hard for me to clearly and easily.
Corrado Gasperis: Yeah, yeah, I just want to make three closing statements. One is, I noticed someone had asked Zach that, you know, there was, there was why was a bit of the use of proceeds, like a little over a million dollars being used for Northern Comstock. And I'd like to just address that one because as part of these proceeds and as part of our agreement, we had acquired some very, very, very valuable mineral properties in the central part of the district. We did it through this Northern Comstock entity. And what the agreement says is that if we have a liquidity event of over $12.5 million, we have to accelerate one payment. So we're accelerating one payment, but here's the good news. This acceleration results in the completion of the payments for that mineral property, 100% complete.
Be very hard for me to exaggerate the difference and I know Theres. Some investors were thinking is in their minds right now those sell pressures.
Using stock to acquire something using stock in a bridge with the convertible note using these that's what was always hurting our valuation now so people are upset.
Some people sold some shares.
I feel badly about it you should buy them back tomorrow honestly because now the foundation is that the technology is that the customers are coming in the revenue is growing and were funded were funded and refunded in a way where they.
These.
Things that we previously had to do.
Greg We previously saw no other ability to do.
Corrado Gasperis: And it also represented almost $820,000 of expenses in our annual P&L that are gone. So no more obligation, no more expenses, you know, going forward from that. And we own 100% of these mineral properties that have hundreds of thousands of ounces associated with them. So that's number one. Number two, we concluded prior to this offering fully extinguishing the obligation associated with the acquisition of the organosolve technology for fuels with American Science and Technology. That's extinguished. And that had also like almost a million dollars a year of lease and rent expense that's been extinguished. We now own the property 100%. We pay no more rent. We also completed, we haven't closed on it, but we've eliminated the obligation.
Our God, they're behind Us and I don't want to speak for others, but our bankers were like we don't even want to introduce you to these institutional investors and west our diligence proves that youre done with this like we need to see we need to come in and see are these liabilities gone.
We want you to agree not to incur them again blah blah blah.
So.
So I really wanted to say that that's huge.
Look out for updates in metals, it's going to be remarkable fuels will be giving their own updates.
In Oklahoma is is beyond bending over backwards.
To make us prosper there, that's partly because of our strategic investor and the series a and it's partly because of our relationships there, but my God youre going to hear some great things coming out of Oklahoma from four or five different perspective. So I know we're over to the <unk> sorry, but just wanted to get those last few comments.
Corrado Gasperis: This was before not using these proceeds for the acquisition of the Haywood Quarry, which is an absolutely critical mining property adjacent or near adjacent to our Dayton operation that enables that mine plan, you know, to get to the finish line. And we extinguished the obligation associated with the acquisition of Linoco, which is who owns that Green Lion investment. So we've extinguished all of these obligations on balance sheet, off balance sheet. They're all gone. And then we extinguish the convertible note, and then we pay down the promissory notes. So it would be hard for me to clearly and easily, it would be very hard for me to exaggerate the difference. And I know there's some investors who are thinking this in their minds right now.
Okay. Thank you very much corrado.
And thank you everyone for joining us today. This concludes our webcast.
[music].
Corrado Gasperis: Those sale pressures, you know, using stock to acquire something, using stock in a bridge with a convertible note, using these, that's what was always hurting our valuation. Now, some people are upset. Some people sold some shares. You know, I feel badly about it. You should buy them back tomorrow, honestly, because now the foundation is set, the technology is set, the customers are coming in, the revenue is growing, and we're funded. We're funded, and we're funded in a way where these things that we previously had to do, right, we previously saw no other ability to do, are gone. They're behind us. And I don't want to speak for others, but our bankers were like, we don't even want to introduce you to these institutional investors unless our diligence proves that you're done with this.
I feel badly about it you should buy them back tomorrow honestly because now the foundation is that the technology is that the customers are coming in the revenue is growing and were funded were funded and were funded in a way where the these things.
Things that we previously had to do.
We previously saw no other ability to do.
Our God, they're behind Us and I don't want to speak for others, but our bankers were like we don't even want to introduce you to these institutional investors and less our diligence proves that you're done with this like we need to see we need to come in and see are these liabilities gone.
Corrado Gasperis: Like we need to see, we need to come in and see, are these liabilities gone? We want you to agree not to incur them again, blah, blah, blah. It's done. So, so I really want to say that that's huge. Please look out for updates in metals. It's going to be remarkable. Fuels will be giving their own updates. And Oklahoma is is beyond bending over backwards, to make us prosper there. It's partly because of our strategic investor, in the Series A, and it's, partly because of our relationships there. But my God, you're going to hear some great things coming out of Oklahoma from four or five different perspectives. So I know we're over the time, Zach, sorry, but just wanted to get those last few comments in.
We want you to agree not to incur them again blah blah blah.
So so I really wanted to say that that's huge please look out for updates in metals, it's gonna be remarkable fuels will be giving their own updates and Oklahoma is is beyond bending over backwards.
To make us prosper there, that's partly because of our strategic investor and the series a and it's partly because of our relationships there, but my God, you're going to hear some great things coming out of Oklahoma from four or five different perspective. So I know we're over the times Act sorry, but just wanted to get those last few comments in.
Zach Spencer: Okay, thank you very much, Corrado. And thank you, everyone, for joining us today. This concludes our webcast.
Okay. Thank you very much corrado.
And thank you everyone for joining us today. This concludes our webcast.
Corrado Gasperis: Thank you.
Thank you.
Yes.
Corrado Gasperis: Goodbye.