Comstock Inc. expects to receive $20 million in cash in August upon closing the sale of 100% of its legacy mining assets to Mackay Precious Metals, while also targeting an immediate start of its first industry-scale solar panel recycling facility at 25% capacity that same month. CFO Judd Merrill stated the company ended the second quarter with approximately $31.4 million of cash and no debt, and total working capital of $39.9 million. CEO Corrado De Gasperis acknowledged the facility's commissioning is a few months later than previously thought but said testing of the oven will be completed by the end of July, with panel feeding beginning in August and plans to run at least 25% capacity through December. Management tied cash flow positivity to utilization, with Merrill noting that once the facility reaches 20 to 20-plus percent capacity it will generate cash from operations, and at 40 to 50 percent it will cover all corporate costs. The mining asset sale is expected to remove all reclamation liabilities and bonding requirements while retaining upside through net smelter return royalties and equity in Mackay.
Comstock Inc.Expects $20M cash from mining asset sale and targets 25% capacity start for recycling facility, improving financial position.