Comstock Q3 Earnings Call Highlights

Key Points

• A one-time mining-sale gain sharply narrowed Comstock’s Q3 loss: Net loss was about $753,000 versus $12.9 million a year earlier, helped by a $14 million gain on the sale. The transaction brought $20 million in cash, removed more than $8 million in reclamation liabilities, and reduced annual costs by about $1.5 million.
• The solar-panel recycling facility is ramping up: Silver Springs is targeting sustained production at roughly 25% of capacity by the end of 2026, with operating-cost coverage expected at that level and positive operating cash flow targeted in 2027 as output grows. Comstock said it had nearly 11,000 tons of material in its network, though incoming volumes are not yet sufficient for the target utilization.
• Comstock is preserving liquidity while pursuing growth and asset deals: It ended September with $39.5 million in unrestricted cash and no debt, and management does not currently expect to need new common equity over the next 12 months. The company is exploring Sierra Springs transactions and authorized a repurchase of up to 15 million shares, but said no immediate buybacks are planned.

Comstock NYSEAMERICAN: LODE reported a narrower third-quarter loss as a gain from the sale of its legacy mining business offset operating expenses, while executives said the company is working to increase production at its first commercial solar-panel recycling facility.

On its Nov. 4 earnings call, management said the Silver Springs, Nevada, facility is targeting sustained production at roughly 25% of rated capacity by the end of 2026. Comstock also is pursuing potential transactions involving its Sierra Springs investment and has authorized a share repurchase program, although Chief Executive Officer Corrado De Gasperis said no immediate buybacks are planned.

Mining sale helps narrow quarterly loss

Comstock reported a consolidated net loss of approximately $753,000 for the quarter ended Sept. 30, compared with a $12.9 million loss a year earlier. Revenue increased to approximately $367,000 from $54,000. Revenue for the first nine months of 2026 was approximately $954,000.

Chief Financial Officer Judd Merrill said the third-quarter results included a $14 million gain from the sale of Comstock’s remaining legacy mining business to Mackay Precious Metals. The transaction generated $20 million in immediate cash and 2 million Mackay shares, with another $7 million due in 2027. It also removed more than $8 million in reclamation liabilities and reduced annual operating costs by approximately $1.5 million, Merrill said.

Merrill noted that the mining gain was nonrecurring and said the company’s forward-looking financial priority is to grow recycling revenue and convert that growth into positive operating cash flow.

Comstock ended September with approximately $43.5 million in cash and restricted cash, including $39.5 million in unrestricted cash, and had no outstanding debt, Merrill said. Working capital was approximately $33.3 million, while stockholders’ equity rose to approximately $140.8 million from $110.9 million at the start of the year.

Merrill said reported revenue does not fully capture recycling customer activity because some billings are deferred until processing services are performed. Comstock Metals had approximately $4.6 million in deferred recycling revenue as of Sept. 30.

Recycling facility ramps up

De Gasperis said the Silver Springs facility has been operating daily since late September and is moving through a controlled ramp-up. The company expects the facility to cover its operating costs at 25% utilization and to contribute positive operating cash flow in 2027 as production rises beyond that level, Merrill said.

De Gasperis acknowledged that the main recycling machine came online later than planned. He described startup issues involving water pressure, oven temperatures and a conveyor, but said they had been addressed or were being managed without material setbacks.

Once the plant reaches 25% utilization, Comstock intends to operate at that level for approximately two to three months to validate reliability, safety and unit economics, De Gasperis said. Further increases would be tied to the rate at which panels arrive.

The CEO said the company had nearly 11,000 tons of material in its network, substantially all in Silver Springs, although incoming panel volumes were not yet at the rate needed for 25% utilization. Comstock is issuing certificates of destruction to customers including RWE, Illuminate USA and Waste Management, he said.

Comstock has also started a one-ton-per-day pilot for extracting silver from recycling tailings. De Gasperis said the pilot is producing silver, but the company needs several months of data to determine the potential economics and how best to scale the process.

Expansion and Sierra Springs plans

Comstock’s next planned recycling facility is in Ohio, where Merrill estimated the capital investment at approximately $15 million. De Gasperis said the company is considering a phased approach that would start with one oven and add capacity as demand grows. He said management wants to demonstrate sustained production and profitability at Silver Springs while responding to customer demand in the Ohio and Indiana region.

Separately, Comstock is working with commercial real estate adviser Newmark to evaluate development opportunities and potential partners for Sierra Springs. Merrill said Comstock’s ownership in the opportunity fund had increased to more than 48%, with a carrying value of approximately $50 million.

De Gasperis said the Newmark process includes exploring financing for Sierra Springs and interest from potential development partners. He expects the company to move into 2027 with a mindset of pursuing a transaction, while cautioning that an outcome is not guaranteed.

Management also wants to address commitments associated with Great Basin natural gas infrastructure without using more of Comstock’s liquidity. Merrill said the company is pursuing options that include surety arrangements, direct Sierra Springs financing and potential development partners.

Equity financing and buyback outlook

Merrill said Comstock does not currently anticipate needing to raise additional common equity over the next 12 months, based on its operating plans, liquidity and ability to phase discretionary investments. He cautioned that the plans remain subject to execution and financing risk. Management also intends to reduce Comstock’s ongoing funding exposure to Bioleum and pursue external financing and partnerships for that business.

The board authorized a repurchase program for up to 15 million shares, De Gasperis said. He emphasized that the company does not plan immediate purchases and wants to preserve liquidity while it advances its recycling and asset-monetization initiatives.

About Comstock (NYSEAMERICAN:LODE)

Comstock Inc is a technology and natural resources company focused on developing solutions for the energy transition and the decarbonization of industrial processes. Its business activities include renewable fuels, battery-metal recovery and mineral development, with operations and projects primarily connected to the United States.

Through Comstock Fuels, the company is developing technologies designed to convert woody biomass and other lignocellulosic materials into low-carbon fuels, including sustainable aviation fuel and other renewable fuel products.

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