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The call communicated strong progress on recapitalization, liquidity, completion and commissioning of the first industry-scale facility, solid customer engagement and concrete monetization plans (SSOF investment, sale of mining assets, powered land at Silver Springs). Management provided clear profitability thresholds (20% facility, 50% corporate) and outlined focused capital deployment toward metal recovery. Key risks discussed include ongoing net losses, higher operating and R&D spend, limited near-term feedstock visibility (3–5 months), execution/scale-up risk as the equipment ramps, and reliance on third-party monetization and Bioleum securing outside funding. On balance, the company appears positioned to execute the next stage of commercialization with meaningful liquidity and strategic optionality, while still facing execution and timing risks.
Management guided that Comstock is funded after an oversubscribed equity raise of $57.5M (≈$53M net) with cash of just over $53M at 3/31/26, has already deployed $14M toward its first industry‑scale facility (including $6.8M in Q1), and has spent roughly $11M on facility equipment plus ~$1.1M for power generation, ~$2.0M leasehold improvements (reimbursable), and ~$1.1M for storage; they plan ~ $1.5M more for glass/product upgrades (about half already spent) and an estimated $10M for a 1‑ton/day metal‑recovery pilot, while a second facility is estimated at $13M but won’t be purchased until the first is scaling; the plant is to be fully assembled by end‑May, operating in June and continuously by July, with the facility expected profitable at 20% utilization (≈2,000 tons/month) and the corporation profitable at 50% utilization, a shift from project‑based to throughput‑driven revenue with rising revenue/deferred revenue as commercialization proceeds; other metrics: Q1 operating expense rose ≈$1.7M, net loss ≈$9.4M, interest expense largely eliminated (no interest expense projected going forward), derivative impacts expected low-to‑zero, a $1.4M cash gain on royalty sales was recognized, $7.75M was invested in SSOF, and management expects to announce a definitive sale of remaining mining assets in Q3 that could cut cash spending by up to $1.5M annually.
Completed an oversubscribed equity financing of $57.5M in gross proceeds ($53.0M net after ~$4.5M of offering expenses, ≈7.8%). Cash balance at March 31, 2026 was just over $53M. Legacy debt largely eliminated and interest expense declined significantly year-over-year with no interest expense projected going forward.
Substantially all capital expenditures for the first industry-scale solar panel recycling facility have been completed. Of the ~$14M allocated between Aug 2025 and Mar 31, 2026, $6.8M was spent in Q1. Management reports total facility-related spend (excluding landlord-reimbursable leasehold improvements) of about $13M — in line with the prior $12–15M plan.
Facility assembled and commissioning underway; public showcase scheduled for May 28. Management expects the plant to begin operating in June and run continuously by July. Strategic, regional and national customers have scheduled visits and master service agreements are being executed.
Recognized revenue in the quarter from the pilot plant and deferred revenue from solar panel collections. Realized a $1.4M cash gain on sale of royalty rights tied to prior mining claim sales. Preliminary terms agreed to sell remaining mining assets with due diligence in progress and a definitive agreement expected in Q3—management expects the sale to provide meaningful cash proceeds, simplification and up to $1.5M annual cash spending reduction.
Invested $7.75M in SSOF and committed a natural gas feed capable of powering up to 300 MW to Silver Springs properties, positioning the company to monetize powered land at materially higher valuations per megawatt.
Interest income increased meaningfully driven by a strong cash position. Derivative-related impacts were smaller than prior year and management expects derivative/make-whole contingencies to be low to zero going forward.
Upgrades to downstream processing to improve glass purity are complete or underway; secured a domestic boutique offtaker for tailings (improves economics and logistics). Management is advancing metal recovery workstreams (targeting a 1 ton/day pilot for silver/copper/silicon), aiming for >90% silver recovery and plans a ~$10M investment into a 1 tpd integrated metal recovery system (R&D/accounting to GAAP R&D expense).
Management articulated economics: the first facility is expected to be profitable at ~20% utilization and the consolidated corporation at ~50% utilization. Company expects a shift from project-based revenue to throughput-driven revenue as operations scale.
Good afternoon, and thank you for joining Comstock Inc.'s First Quarter 2026 Results and Business Outlook. I'm Zach Spencer, Treasurer and Corporate Secretary. Today is Thursday, May 7, 2026. 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 March 31, 2026, and issued a press release summarizing quarter end results. Both documents are available on our website. As a reminder, Comstock is listed on NYSE American with the ticker LODE.
Joining me today are Corrado De Gasperis, Comstock's Chief Executive Officer; and Judd Merrill, Comstock's Chief Financial Officer. After their prepared remarks, we will take questions. We received more than 25 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. 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 Chief Financial Officer, Judd Merrill.
Judd, you may begin.
Thanks, Zach, and good afternoon, everyone. I have a few prepared remarks, and then we'll move on through the slide deck here. The first quarter of 2026 reflects the continuation of the transformation we drove in 2025. But more importantly, it marks the beginnin...