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

Jul 28, 2020 • 11:00 am ET


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


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Corrado De Gasperis

-- we will likely represent one of the first, if not the first, U.S. publicly listed mining companies to actually disclose our resource estimates in our U.S. filing. So this is long overdue. I'll talk about that a little bit more later.

Number 4, Lucerne's updated independent resource estimate, ultimately coming from Tonogold; Number 5, Tonogold's exploration and development work on Lucerne, on the Occidental and on the other northern exploration targets that they've put in the scope of their next development plan, which is very exciting; next, Sierra Springs Opportunity Zone and the advancements thereto, including the sale of our non-mining assets overall. Those assets that we are selling to the Opportunity Fund are valued at $10 million under contract. But our total non-mining assets are valued at $25 million, and that's actually net of subtracting our $5 million of debt, so net $25 million of non-mining assets and then royalty holdings and equity holdings on all of the above and more.

So ultimately, we are driving towards the goal of $500 million of realized value by implementing many more instances of these cash-generating, mercury-remediating, gold and silver projects and expanding our existing gold and silver holdings. The outreach that we're getting in regard to mercury remediation from other companies, from governments, from NGOs is almost unbelievable. We've recently reallocated some of our internal resources to more mercury and environmentally expert resources, subject matter experts for managing this growth, if you will.

So let me start by elaborating on MCU. As you know, we've partnered and launched MCU, Mercury Clean Up LLC, our clean mercury remediation high-growth venture, with our first two projects now finally becoming operational. Yesterday, supporting equipment began arriving on site, and we expect the core mercury remediation system to start arriving tomorrow. We've included pictures in our press release. And as you can see from those pictures, the system is impressive. It's not a toy. This is an incredibly sophisticated, 20-foot-high extensive alluvial mining system with state-of-the-art mercury centrifuges, mercury reactors, some of the most precise spirals and separators in the industry. And all put together, a remarkable system.

MCU has also worked very diligently, me personally and the partners with MCU on the front line, enhancing our definitive joint venture agreement with our Philippine partner, Clean Ore Solutions, to partner and lead in the cleanup of the Naboc River in the Philippines with permits secured and now legally formed a new entity called MCU Philippines Inc. So we've -- we formed the entity. We've provided initial funding. We've completed the first mercury-controlled, enhanced sand and gravel system that's being prepped as we speak for international shipment. Ultimately, Comstock will own 50% of this new entity, MCU Philippines Inc., and 25% overall of the parent company, MCU, sticking to the model of us participating in 62.5% of the overall economics -- MCU's overall economics, certainly in the case of the Philippines.

We plan on having two systems deployed in the Philippines this year, and that