Wednesday, May 04, 2022

Comstock Mining (LODE)
Going All In

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Focusing on its mission. Comstock Mining hosted a webcast to discuss first quarter results and recent developments. The company is going all in on technologies that enable systemic decarbonization. Its renewable fuels division is advancing technologies to commercialize the conversion of woody biomass into advanced cellulosic fuels. Its lithium-ion battery (LIB) recycling business, LiNiCo, is commercializing a process to crush and separate lithium-ion batteries, extract lithium, nickel, cobalt, and graphite, and use the recovered metals to produce 99% pure cathode active precursor products.

Making significant headway. Comstock is currently building commercial pilot scale cellulosic fuels and LIB facilities, and the company is preparing to commence crushing and separating operations that will produce mineral-rich black mass at its 137,000 square foot LIB recycling facility later this year and deploy lithium extraction in the same facility next year. The company’s pilot scale cellulosic fuel system will also be operational at its Wisconsin facility later this year. Comstock has established a near-term goal to commission its first 100 million gallon biorefinery by 2025 and LiNiCo expects to produce marketable, battery-grade lithium carbonate by the end of the second quarter of 2023….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Comstock Announces First Quarter 2022 Results

Research, News, and Market Data on Comstock Mining

VIRGINIA CITY, Nevada, May 03, 2022 (GLOBE NEWSWIRE) — Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced its recent operational highlights, first quarter 2022 results, and updated outlook.

Selected Strategic
Highlights – Cellulosic Fuels

• Demonstrated breakthrough renewable Bioleum™ alternative to fossil crude oil, derived from from woody biomass, for use in producing renewable diesel, sustainable aviation, gasoline, marine and other drop-in carbon-neutral fuels.
• Established our near-term goal to commission our first 100 million gallon Bioleum™ biorefinery by 2025.
• Commenced construction on a demonstration facility for production of Bioleum™ and other co-products.
• Commenced site evaluation and selection process, prioritizing target sites with ready access to available feedstock.
• Commenced direct discussions for renewable fuel offtake agreements to support our first biorefinery and beyond.

Selected Strategic Highlights
– Lithium Extraction and Electrification Products

• Received and installed proprietary lithium-ion battery (“LIB”) crushing, separation, and conditioning systems and commenced commissioning in our R&D facility.
• On schedule to be producing marketable black mass from LIB feedstock in our state-of-the-art, battery metal recycling facility in Nevada by the end of Q4 2022.
• On schedule to be producing marketable, battery-grade lithium carbonate in our state-of-the-art, battery metal recycling facility in Nevada by the end of Q2 2023.
• Commenced construction of prototype “lithium first” extraction system in our R&D facility.
• Commenced new and continued ongoing discussions with LIB feedstock sources.

Selected Financial
Results

• Advanced non-strategic asset monetization, exchanging $6.65 million note receivable for the Lucerne properties and an option for $7.75 million. Our announced transactions for a portion of our non-strategic mineral and other assets now total over $25 million of expected 2022 proceeds from Tonogold, Sierra Springs and others.
• Total assets increased to $115,119,393 as of March 31, 2022, as compared to $43,123,562 at December 31, 2020.
• Operating expenses were $4,442,713 for the first quarter 2022, including selling, general and administrative expenses of $2,402,766 and research and development expenses of $1,195,418, as compared to operating expenses of $3,621,695 for the fourth quarter of 2021, with increases primarily relating to increased research and development, employment costs and depreciation.
• First quarter 2022 net loss was $6,547,023 or $(0.09) per share, as compared to first quarter 2022 net income of $8,188,231 or $0.22 per share. The 2021 results were primarily driven by changes in fair values of derivatives.
• Debt was $4,529,068 on March 31, 2022, representing an unsecured promissory note.
• Cash and cash equivalents were $2,249,007 on March 31, 2022.
• Outstanding common shares were 67,707,832 at March 31, 2022, and 69,943,776 at April 28, 2022.

“Our financial results reflect the impact of our continued investment in the development and commercialization of our renewable energy businesses,” said Corrado De Gasperis, Comstock’s executive chairman and chief executive officer. “Our Cellulosic Fuels and Battery Recycling demonstration systems are moving us rapidly towards commercialization. We are engaged in and securing untapped supplies of carbon neutral feedstocks to enable exponential and sustained growth.”

The Company expects to complete the demonstration of our breakthrough LIB crushing, separating, and conditioning process in the second quarter of this year, to successfully confirm LIB processing without discharge and the production of highly concentrated “black mass” powders. The Company expects to complete the submission of all expanded and modified operating permits for our LIB processes at our state-of-the-art, battery metal recycling facility in Nevada in the second quarter.

The Company is currently expanding its existing cellulosic demonstration systems in Wisconsin to include the production of Bioleum™ and expects these demonstration systems will be operational before the end of the fiscal year. The Company expects to release more detailed information about Bioleum™ and its planned biorefineries later this month at the Company’s Annual Meeting of Shareholders on May 26, 2022, at the Atlantis Hotel in Reno, Nevada.

The Company expects $15 million in proceeds over the next two quarters from the sale of its industrial and commercial properties. The Company is exploring options to monetize all non-strategic assets, with updates in the second and third quarters.

Conference Call Details

Comstock will host the conference call on Tuesday, May 3, 2022, at 8:00 a.m. PDT (11:00 a.m. EDT) and the webcast will include a moderated question and answer session following the Company’s prepared remarks.  Please click the link below to register in advance and please join the event at least 10 minutes prior to the scheduled start time. Once registered, you will receive a confirmation email containing information about joining the Webcast. Please click here to register in advance for this webcast.

About Comstock

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

Forward-Looking
Statements 

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future changes in our research and development; and future prices and sales of, and demand for, our products and services. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related call or discussion constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Sierra Metals Subsidiary in Peru, Sociedad Minera Corona Reports Q1-2022 Financial Results

Research, News, and Market Data on Sierra Metals

TORONTO–(BUSINESS WIRE)–Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the first quarter of 2022 (“Q1 2022”).

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Q1-2022 financial statements have not been reviewed by the Sierra Metals Board. The Company will be releasing its Q1-2022 consolidated financial statements on May 11^th, 2022 with an investor conference call taking place on May 12^th, 2022.

Corona’s Highlights for the
Three Months Ended March 31, 2022

• Revenues of US$35.8 million, a 15%
  decrease from Q1 2021.
• Adjusted EBITDA of US$14.8 million, an
  8% decrease from Q1 2021.
• Total tonnes processed of 315,250, a
  3% decrease from Q1 2021.
• Net production revenue per tonne of
  ore milled decreased by 5% to US$121.34.
• Cash Cost per copper equivalent
  payable pound higher by 48% to US$2.19.
• All-in sustaining cost
  (“AISC”) per copper equivalent payable pound higher by 40% to
  US$3.70.
• Copper equivalent pounds production
  decreased 32% to 10.9 million pounds.
• $17.0 million of cash and cash
  equivalents as at March 31, 2022.
• $70.3 million of working capital as at
  March 31, 2022.

The Yauricocha mine processed 315,250 tons during the Q1 2022, which represents a decrease of 3% compared Q1 2021. Labor shortages were experienced in development and mining areas due to the impact of COVID-19 in January and February.

The delays in preparation of the polymetallic mining zones forced the mine to focus on copper sulfides during the quarter, which resulted in higher copper head grades, but negatively impacted grades for all other metals, except gold. Q1 2022 copper and gold production was 60% and 19% higher, while silver, lead and zinc production were 43%, 56% and 57% lower respectively as compared to Q1 2021. Copper equivalent production for Q1 2022 from Yauricocha was 10,876 pounds or 32% lower than the same quarter of 2021. This reflects the decrease in average ore grade on current permitted mining areas.

Luis Marchese, CEO of Sierra Metals, commented, “During Q1 2022, 
Yauricocha metal production was negatively impacted due to
decreasing ore grades in the currently permitted mining areas, and Covid
related labour shortages in the early part of the year.”

He continued, “Looking ahead, our priority is to
treat ore at full plant capacity and incorporate the newly discovered
high-grade areas in order to maximize metal production at current prices.”

He concluded, “We expect that we will be able to
make up for the delay in production at Yauricocha, and with improved grades, we
are optimistic about our progress in the Mine’s performance going forward.”

The following table displays selected unaudited financial information for the three months ended March 31, 2022:

The following table displays average realized metal prices information for the quarter ended March 31, 2022 vs March 31, 2021:

Corona’s Financial Highlights
for the Three Months Ended March 31, 2022

• Revenue from metals payable at the Yauricocha Mine in Peru of $35.8 million for Q1 2022 decreased by 15% compared to $41.9 million of revenues in Q1 2021. Despite higher metal prices, revenues decreased during Q1 2022 mainly due to lower metal production attributable to lower grades except copper. Copper equivalent payable pounds dropped 51% due to lower quantities of metals sold as compared to Q1 2021.
• Yauricocha’s cash cost per copper equivalent payable pound was $2.19 (Q1 2021 – $1.48), and AISC per copper equivalent payable pound of $3.70 (Q1 2021 – $2.65). Higher unit costs resulted from a 36% decrease in copper equivalent payable pounds.
• Adjusted EBITDA of US$14.8 million for the first quarter of 2022 compared to US$16.2 million for the same period of 2021. The decrease in Adjusted EBITDA for the first quarter of 2022 compared to the same period of the year 2021 was due to lower revenues from the Company, explained above.
• Operating cash flow before movements in working capital of US$11.1 million for the first quarter of 2022 compared to US$16.5 million in the same period of 2021.
• Cash and cash equivalents of $17.0 million as at March 31, 2022, compared to $32.9 million as at December 31, 2021. Cash and cash equivalents decreased as cash used in investing activities ($6.2 million) and financing activities ($10.5 million) exceeded cash flow of $0.8 million generated from operating activities.
• Net income of $10.5 million, or $0.292 per share for Q1 2022 compared to net income of $5.2 million, or $0.144 per share for Q1 2021. The increase in net income during Q1 2022 resulted from the recovery of deferred taxes and no current taxes as there was no taxable income during the quarter.

Corona’s Operational
Highlights for the Three Months Ended March 31, 2022:

The following table displays the production results for the three months ended March 31, 2022:

Quality Control

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 16, 2022 for its fiscal year ended December 31, 2021 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Contacts

For further information regarding Sierra Metals, please visit www.sierrametals.com

Investor Relations
CEO

Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: 
info@sierrametals.com

Luis Marchese
Sierra Metals Inc.
Tel: +1 (416) 366-7777

Tuesday, May 03, 2022

Alliance Resource Partners (ARLP)
Solid First Quarter; Outlook Remains Bullish

ARLP is a diversified natural resource company that generates operating and royalty income from coal produced by its mining complexes and royalty income from mineral interests it owns in strategic oil & gas producing regions in the United States, primarily the Permian, Anadarko and Williston basins. ARLP currently produces coal from seven mining complexes its subsidiaries operate in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States. In addition, ARLP is positioning itself as an energy provider for the future by leveraging its core technology and operating competencies to make strategic investments in the fast growing energy and infrastructure transition.

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid first quarter performance. Alliance reported first quarter net income of $36.7 million, or $0.28 per unit compared to $24.7 million, or $0.19 per unit, during the prior year period. The company generated EBITDA of $152.3 million compared to $94.3 million during the prior year period. Results would have been stronger had it not been for transportation constraints that hindered the company’s ability to ship approximately 1.1 million tons of contracted tonnage during the first quarter. These shipments are expected to be delivered throughout the balance of the year. Additionally, financial results were negatively impacted by a $37.3 million one-time non-cash deferred income tax expense and liability to convert the holding company for ARLP’s oil & gas royalty activities, to a corporate taxable entity. Excluding the one-time tax item, adjusted EPU were $0.58.

Updating estimates. We have increased our full year GAAP and adjusted EPU estimates to $3.10 and $3.40, respectively, from $2.85 and $3.15. Our estimates reflect continued strength in commodity prices. We forecast 2022 adjusted EBITDA of $744.6 million and distributable cash flow of $515.1 million….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.