Monday, April 17, 2023
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 Vice President – Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Battery recycling facility sale. Comstock’s LINICO subsidiary recently entered into amended and restated agreements to sell its battery recycling facility in the Tahoe Reno Industrial Center to American Battery Technology Corporation (OTCQX: ABML) for $27 million. Of the purchase price, $1.5 million will be held in escrow for up to 18 months. LINICO had leased the facility with an option to purchase for $15.25 million, of which $3.25 million was paid. The transaction contemplates Comstock would buy out the lease prior to closing the transaction in the second quarter.
Sale results in net cash inflows. On March 1, Comstock received $6 million from the sale of equipment associated with the agreement. On April 6, the company received $5 million in cash and 10 million restricted shares of American Battery Technology Corporation stock with the guarantee that Comstock will receive additional cash and/or shares if the proceeds for the shares are less than $6.6 million. Comstock will receive an additional $10 million in cash on or before April 21. We have updated our financial model to reflect expected cash flows, including an estimated net accounting gain of ~$5 million on the income statement in the second quarter.
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