Comstock Mining, Inc. (NYSE MKT:LODE) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 11:00 am ET

Previous

Comstock Mining, Inc. (NYSE MKT:LODE) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Thank you, sir. [Operator Instructions] We will take our first question from Carl Frankson, a private investor.

Executive
Corrado De Gasperis

Hi, Carl.

Analyst
Carl Frankson

Corrado, how are you doing? Good.

Executive
Corrado De Gasperis

Doing good.

Analyst
Carl Frankson

Yes, I would like to ask a question. Several weeks ago, there was an SEC EDGAR filing with Leviston Resources and Triton Funds. Could you please elaborate on that? And it appears that it's your option to sell them stock. Could you comment in terms of future dilution? You're talking about getting rid of the debt. Is it going to be necessary for -- to draw down on these funds and dilute us?

Executive
Corrado De Gasperis

Yes. Thank you, Carl, for the question. So there were two filings. The first one was -- well, the first one I'll mention was Leviston Resources. This is an equity facility that we've had variations of it in place over the last few years. We've hardly used the facility during 2020, which is very good, a very welcome change, but it's important for us to have the facility in place. That was $2.5 million. And it would only be our intention to use that facility as it was absolutely needed, and it wasn't put in place for the purpose of drawing down to pay down debt. Certainly, it would be available for that if that was required, but we don't see that, that would be required. So that's Number 1.

So that's a facility that's in place, that we've always had in place. I guess we always will have in place. And hopefully, the trend will continue that our reliance will go from being heavy on those facilities in '18 and '19 to be very, very light, in '20, to hopefully, ultimately, not being required at all. So the trend is our friend, I guess, but there will always be that facility in place.

In terms of the other filing, that was a direct placement. That's not a facility. That was a direct placement of $1.25 million with a fund that we used substantially all of those proceeds for funding the mercury business. Ultimately, we had hoped to have some of our asset sales done a little bit sooner. COVID kind of delayed that on us. Unfortunately, we're still driving very, very hard on that.

But the Philippine opportunity, frankly, it's a double-edged sword. The government has been really driving us hard to get over there. We could not feel more support, more alignment, more motivation with us to get those systems up there. I think the Philippines will ultimately be recognized as a leader in sort of embracing the Minamata Convention and really working hard to stop artisanal and small-scale mining use of mercury. This is the UN's biggest push.

We didn't initially expect to be deploying our first project outside of the Comstock until at least a year after we were operating the first system on the Comstock. So it was somewhat unplanned, if you want to say it that way. It's a good problem, but that money from