Comstock's Q3 2025: Contradictions Emerge on Funding Strategy, Asset Sales, and Expansion Timelines

Guidance:

• Permits for Silver Springs expected to complete public notice periods by Christmas; equipment arriving in Q4 and commissioning targeted in Q1 2026.
• Plant 1 expected to be profitable at ~20k–25k tons throughput; target ramp through 2026 with full-scale cadence by late 2027.
• Site 2 targeted early 2027 and Site 3 early 2028; plan for multiple $12–15M industry-scale facilities.
• Bioleum Series A capital raise planned in Q1 2026; Bioleum is self-funding operationally and targeting separate public pathway.

Business Commentary:

• Debt Elimination and Financial Strengthening:
• Comstock eliminated all debt, previously amounting to $8.5 million, resulting in a debt-free balance sheet.

• This action was driven by a strategic decision to improve financial stability and capitalize on future growth opportunities.

• Fundraising and Capital Allocation:

• Comstock raised $34.5 million in an oversubscribed equity raise, with 61.5 million gross proceeds and $2.2 million in net proceeds.

• The funds will be dedicated to accelerate the launch of its R2v3 certified zero-landfill solar panel recycling business and expand its institutional shareholder base.

• Solar Panel Recycling Facility Expansion:

• The company deposited $5.1 million for solar panel recycling equipment, with a planned capacity of processing 100,000 tons per year.

• This expansion aligns with the increasing market demand for end-of-life solar panel recycling due to the growing volume of deployed panels.

• Silver and Precious Metal Market Demand:

• Silver demand hit record levels in 2025, with projections of increasing demand over the next 5-7 years.

• The demand surge is driven by industrial applications, including solar panels and electrification activities, leading to higher silver prices.

• Mining and Land Assets Strategy:

• Comstock acquired the Haywood Quarry, strategically positioning it near the Dayton mineral resource, and secured additional industrial land, totaling 440 acres.
• These acquisitions were aimed at enhancing the company's mining asset portfolio and facilitating potential joint ventures for mining and processing operations.

Sentiment Analysis:

Overall Tone: Positive

• Management emphasized a strengthened balance sheet ("completely debt-free"), an oversubscribed $34.5M equity raise, cash of $31.7M, permits on track with timeline to Christmas, equipment arriving Q4 and commissioning in Q1, and commercial MSAs and customer engagement expanding.

Q&A:

• Question from Zach Spencer (Comstock IR): Where does liquidity stand today?
  Response: Corporate cash of $31.7M at quarter end (including $12.4M at Bioleum) and net current assets of $21.3M; debt fully eliminated.

• Question from Zach Spencer (Comstock IR): How long is the cash runway?
  Response: Company says it's fully funded to take Comstock Metals to sustained profitability and growth into next year; Bioleum is being funded via its own raises.

• Question from Zach Spencer (Comstock IR): Why the loss on debt extinguishment and what's left?
  Response: Q3 $2.77M loss reflects payoff of Kips Bay Note and amendments to legacy notes; elimination removes future debt service and dilution.

• Question from Zach Spencer (Comstock IR): Now that Comstock is funded, should we expect any dilution?
  Response: No recent share issuances; 51.26M shares outstanding; company funded through commercialization and does not anticipate issuance to fund core rollouts.

• Question from Zach Spencer (Comstock IR): What will Comstock do with revenues once Plant 1 has funded future plants? Return excess cash to shareholders?
  Response: Priority is to reinvest cash flows into expanding metals recycling capacity; evaluate returns to shareholders after multiple plants stabilize cash generation.

• Question from Zach Spencer (Comstock IR): Any plans to dilute to fund mining operations?
  Response: No equity issuances planned for mining; mining funding would come via JV or asset-level transactions.

• Question from Zach Spencer (Comstock IR): What is the strategic rationale for continued funding of SSOF given prior monetization guidance?
  Response: SSOF investment is opportunistic to capture outsized value from land/energy/data infrastructure demand; management expects bigger strategic returns and will disclose more in early 2026.

• Question from Zach Spencer (Comstock IR): Why did revenue decline in Q3 and when does it inflect?
  Response: Decline driven by sale of leased mining assets (reducing lease revenue) and a deliberate slowdown as site prep, storage and permitting activities dominated; revenue inflection expected as Plant 1 commissions in Q1 and permits finalize.

• Question from Zach Spencer (Comstock IR): What's behind higher SG&A and R&D?
  Response: Higher SG&A/R&D from scaling headcount, facility rents, Bioleum science hires, nonrecurring expense from extinguishing legacy obligations which yields ~$1M annual savings going forward.

• Question from Zach Spencer (Comstock IR): What happened to metals recovery business and equipment?
  Response: Company pivoted earlier lithium-ion/battery efforts to focus exclusively on solar panel recycling; legacy battery/mercury assets largely repurposed or not a current business focus.

• Question from Zach Spencer (Comstock IR): Why not build smaller cookie-cutter plants to cut transportation costs?
  Response: Strategy is to locate larger high-throughput plants near major panel sources (Nevada covers ~55–60% of market); replication of the scalable $12M–$15M production line is planned rather than many smaller plants.

• Question from Zach Spencer (Comstock IR): How are you monetizing all recycled materials?
  Response: Sold as clean streams: aluminum, glass and silver-rich tailings today; plan to pursue downstream refining later to capture greater value.

• Question from Zach Spencer (Comstock IR): Can you elaborate on current MSAs and solar panel supply?
  Response: Signed three meaningful MSAs in the quarter including a major utility, a large e-recycler and an OEM, expanding supply pipeline and target customer base.

• Question from Zach Spencer (Comstock IR): When will the Silver Springs site hit capacity and what about Sites 2 and 3?
  Response: Commissioning Q1 2026 with potential 15k–20k tons on site early in Q1; full facility ramp into latter 2027; Site 2 targeted early 2027 and Site 3 early 2028 as conservative milestones.

• Question from Zach Spencer (Comstock IR): Throughput forecast for 2026–2028?
  Response: Conservative 2026 partial-year throughput of ~20k–30k tons (profitable milestone); potential to reach 200k+ tons by end of 2028 depending on customer commitments.

• Question from Zach Spencer (Comstock IR): What about silver refining?
  Response: Refining is planned post Plant 1 ramp; conceptual designs exist and piloting/TRL work will start as Plant 1 stabilizes, earliest in-house refining could be end of 2027 or later.

• Question from Zach Spencer (Comstock IR): Status of rare earth element recovery?
  Response: Company is designing comprehensive refining to recover all valuable elements from varied panel types; work ongoing to define processes and partners.

• Question from Zach Spencer (Comstock IR): What's happening with the mining and land portfolio and monetization?
  Response: Portfolio consolidated (Haywood, Mackay deals) enhancing attractiveness; monetization options include JV, sale, or sale+royalty and active inquiries are underway.

• Question from Zach Spencer (Comstock IR): Given high gold prices, what are you doing to enhance mining interest?
  Response: Completing a preliminary economic assessment (technical report) in coming months to publish updated economics and sensitivities to attract partners or buyers.

• Question from Zach Spencer (Comstock IR): Biggest barrier to restarting mining?
  Response: Prioritization and capital allocation; management prioritizes recycling facility buildout over allocating capital to restart mines right now.

• Question from Zach Spencer (Comstock IR): Will you JV or sell your gold and silver assets?
  Response: All monetization structures are on the table (JV, sale, sale+royalty, or direct mining); company prefers transactional structures that maximize shareholder value.

• Question from Zach Spencer (Comstock IR): Has Bioleum secured Series A capital for refinery scale-up?
  Response: Bioleum has secured initial Series A capital and investments (including Marathon participation); management expects to complete Series A fundraising in Q1 2026 ahead of project-level financings.

• Question from Zach Spencer (Comstock IR): What is Bioleum's capital structure?
  Response: Bioleum holds $65M in preferred (Series 1) representing ~75% pre-Series A completion; management/founders ~20% and other investors ~5%, with dilution expected as Series A completes.

• Question from Zach Spencer (Comstock IR): How did you determine the Oklahoma site and incentives update?
  Response: Site chosen for logistics/feedstock/infrastructure fit; secured $3M grant (first $1M completed), $152M bond allocation being extended, and active state-level incentive discussions ongoing.

• Question from Zach Spencer (Comstock IR): Are LODE shareholders still connected to the fuels business?
  Response: Bioleum was separated and capitalized as a standalone company; Comstock retains a significant position and incentives align for Bioleum to pursue independent public path.

• Question from Zach Spencer (Comstock IR): What about the Green Li-ion investment and battery recycling?
  Response: Green Li-ion remains a monitored investment being monetized over time; they are progressing facility #1 and may require additional capital; Comstock aims to monetize its stake.

• Question from Zach Spencer (Comstock IR): Will you license your solar panel recycle business internationally for royalties?
  Response: International interest exists; licensing/JV options are under consideration but not top priority; emphasis on finding reliable partners and appropriate control.

• Question from Zach Spencer (Comstock IR): Can you walk through the increased investment in SSOF?
  Response: Company advanced capital to position SSOF to execute larger transactions; advances may be structured to recoup capital or convert to ownership depending on final deals.

• Question from Zach Spencer (Comstock IR): How much do you expect to realize from the separation of Bioleum and how will that translate into share price?
  Response: Management declined to quantify; positioned for a multi-year build to a standalone public company with material upside over a multi-year horizon, timing dictated by execution and markets.

Contradiction Point 1

Funding and Debt Structure

It involves the company's financial strategy and debt management, which are critical for the company's financial health and sustainability.

How long is the cash runway? - Zach Spencer(Comstock Inc.)

2025Q3: We are fully funded on our business plans to take Comstock Metals to sustain profitability and growth as we head into next year. And we're wholly dedicated to accelerating that growth with customer acquisitions and then the most efficient rollout of our metals processing and storage facilities that we're currently building right now. - Judd Merrill(CFO)

As a shareholder, Corrado is unclear about the shares they will receive in a future Bioleum IPO—will it be equal to their current shares? - Zach M. Spencer(Comstock Inc.)

2025Q2: We have $5 million in assets. We have $65 million in preferred stock and management and founders own 20%. - Corrado F. De Gasperis(CEO)

Contradiction Point 2

Asset Sales Strategy

It involves the company's strategic approach to monetizing assets, which directly impacts financial performance and operational focus.

How did you determine the Oklahoma site? - Zach Spencer(Comstock Inc.)

2025Q3: The site activities in Oklahoma were -- I think the things that are important to us, I think, will probably be intuitive logistics, proximity to feedstock, relevant infrastructure... We have defined a site. It's fantastic. - Corrado De Gasperis(CEO)

Why are asset sales delayed? What is causing the delay? Can you explain the delay? - Zach M. Spencer(Comstock Inc.)

2025Q2: We're very engaged... And to capitalize best on that opportunity, we advanced some more funds there was made possible by the overallotment, but it was also opportunistic. - Corrado F. De Gasperis(CEO)

Contradiction Point 3

Expansion Timeline for Metals Recovery Business

It involves discrepancies in the expected timeline for the expansion and revenue generation from Comstock's metals recovery business, impacting investor expectations for growth and profitability.

What happened to the metals recovery business and equipment? - Zach Spencer(Comstock Inc.)

2025Q3: We expect permits for expanding storage in Q2, financing in Q3, and major permit for industry scale in Q4. Equipment ordering is synchronized with permits, aiming for commissioning by end of Q1 for first industry scale production, with revenues starting in Q2 of next year. - Corrado De Gasperis(CEO)

What are the key milestones for metals, including permitting, financing, and construction to first revenue? - Billy McCarthy

2025Q1: We are in the process of ramping up, but we'll begin this year with near-term positive cash flow in the quarter and ramp up to full profitability in the second half of the year. - Corrado De Gasperis(CEO)

Contradiction Point 4

Bioleum Capital Structure and Series A Funding

It involves confusion over the capital structure and funding status of Bioleum, which could impact investor understanding and valuation.

Has Bioleum secured Series A funding from outside investors for the refinery expansion? - Zach Spencer(Comstock Inc.)

2025Q3: We have secured Series A capital. We have the deal that we announced and closed in May... Our objective is to have Bioleum be a $2 billion company when we sell it to an energy major, and that will be part of the unearned investment for the 25% return of capital for our shareholders. - Corrado De Gasperis(CEO)

Can you provide an update on Comstock Fuels and Comstock Metals and their strategic initiatives? - Charles F. Berman(Berman Capital Advisors)

2024Q4: We have closed our seed round with lead investors from Traction Capital. Our objective is to have Bioleum be a $2 billion company when we sell it to an energy major, and that will be part of the unearned investment for the 25% return of capital for our shareholders. - Corrado De Gasperis(CEO)

Contradiction Point 5

Divestment of Non-Core Assets

It reveals a shift in Comstock's strategy regarding the divestment of non-core assets, which could impact the company's focus on core operations and shareholder value.

What is the strategic rationale for continuing to fund SSOF given previous guidance to monetize or divest non-core assets? - Zach Spencer(Comstock Inc.)

2025Q3: What we're seeing with these land and energy requirements for data infrastructure, data centers, it's more complex than just the horizontal development or the vertical development of a data center. So we're very engaged... And to capitalize best on that opportunity, we advanced some more funds there was made possible by the overallotment, but it was also opportunistic. - Corrado De Gasperis(CEO)

Can you outline the plan and timeline for restarting or monetizing your mining assets and how macroeconomic conditions are influencing these decisions? - Billy McCarthy

2025Q1: We're focused on becoming an integrated, multi-commodity metals company. We're not making any change to our strategy on that... We're selling the mining assets. - Corrado De Gasperis(CEO)