Comstock outlines 300,000-ton solar panel recycling capacity by 2028 as it eliminates debt and accelerates Nevada expansion

Earnings Call Insights: Comstock Inc. (LODE) Q3 2025

MANAGEMENT VIEW

*
Judd Merrill, Chief Financial Officer, described the quarter as “transformative” for Comstock, highlighting an oversubscribed equity raise that brought in $34.5 million, netting $31.8 million and expanding the institutional shareholder base by more than 30 new investors.

*
Merrill reported that these funds will “finance and accelerate the launch of our R2v3 certified zero-landfill solar panel recycling business,” and that $5.1 million in equipment deposits were placed for the first industry-scale solar recycling facility in Silver Springs, Nevada. He emphasized, “as of the end of September, Comstock is completely debt-free compared to $8.5 million of debt at the end of the last year.”

*
Corrado De Gasperis, Executive Chairman and CEO, stated, “the biggest news that we're reporting is that we've got great notice from the Nevada Department of Environmental Protection with a very specific timeline to the final issuances of our permit…by Christmas, all of the public comment notice periods will have been completed.” He noted the launch of the large-scale facility and ongoing discussions with new and existing customers for significant orders.

*
De Gasperis stressed that Comstock’s system “eliminates all contaminants cleanly,” operates with the “lowest variable and operating cost in the industry,” and is designed for high-speed processing, enabling scaling to millions of solar panels per year per production line. He added, "unit economics are holding strong. The variable costs are very, very low."

*
Merrill cited a cash position of $31.7 million at quarter end, including $12.4 million at Bioleum and net current assets of $21.3 million. He also confirmed the closing of the Haywood industrial mineral properties purchase and the sale of certain assets, further enhancing liquidity.

OUTLOOK

*
Merrill stated, “we are fully funded on our business plans to take Comstock Metals to sustain profitability and growth as we head into next year,” and that Bioleum is now self-funded through its own capital raises.

*
De Gasperis projected that with current progress, “commissioning [the large solar recycling facility] in the first quarter” is on track, and with ramp-up beginning in Q2, reaching 20,000 to 25,000 tons will be the first milestone, while full facility utilization is targeted for the end or latter part of 2027. He added, “you have three facilities with 300,000 tons of capacity by '28, that would be very good baseline.”

*
The company aims to reinvest cash flows from Plant 1 into expanding metals recycling capacity, with each new facility costing roughly $12 million to $15 million.

FINANCIAL RESULTS

*
Merrill reported that the company ended the quarter with $31.7 million in cash and equivalents and net current assets of $21.3 million. All debt has been eliminated, with Merrill stating, “as of the end of September, Comstock is completely debt-free compared to $8.5 million of debt at the end of the last year.”

*
De Gasperis explained a $2.77 million Q3 loss on debt extinguishment related to payoff and amendments of legacy notes, emphasizing the removal of future costs and dilution from such instruments.

*
De Gasperis noted approximately $0.5 million of billings in the third quarter, aligning with the target of $3.5 million in billings for the year, and cited a “slow burn leading up to these permits” with expectations of larger customer orders following permit finalization.

Q&A

*
Zach Spencer asked about liquidity; Merrill replied, “$31.7 million cash at the end of the quarter, corporate, that's $12.4 million at Bioleum and the net current assets at $21.3 million. And then, of course, we eliminated the debt.”

*
On cash runway, Merrill stated, “we are fully funded on our business plans to take Comstock Metals to sustain profitability and growth as we head into next year.”

*
When asked about the Q3 loss on debt extinguishment, Merrill explained, “the $2.77 million Q3 loss, that reflects the payoff of the 2025 Kips Bay Note and amendments to the legacy George and Alvin Notes. But more -- what's important, we did eliminate the debt on those instruments and any future costs and dilution associated with these types of variable rate instruments.”

*
Asked about dilution risk, Merrill stated, “we currently have the 51.26 million shares outstanding. And we're funded through commercialization and profitability of our first industry scale solar panel recycling facility.”

*
On revenue decline, De Gasperis attributed it to the end of lease revenue from mining assets sold to Mackay and a “slow burn” in metals as customers await permits and expanded storage, but emphasized that “the pipeline hasn't ever been bigger.”

*
De Gasperis addressed SG&A and R&D increases, pointing to scaling businesses, increases in personnel, marketing, and one-time expenses related to extinguishing obligations.

SENTIMENT ANALYSIS

*
Analyst tone in Q&A remained focused and pragmatic, with repeated inquiries about liquidity, dilution, and operational cash runway, signaling a neutral to slightly cautious sentiment.

*
Management adopted a confident tone, frequently referencing the company’s strengthened balance sheet and robust funding, with De Gasperis stating, “we could not be more thrilled, relieved probably is a better word that these permits are on their way.”

*
Compared to the previous quarter, management’s confidence has increased, with a stronger emphasis on execution and market engagement. Analyst sentiment remains consistent, centering on capital structure and growth delivery.

QUARTER-OVER-QUARTER COMPARISON

*
The transition from Q2 to Q3 shows the completion of a major equity raise, full debt elimination, and the advancement toward commercial-scale solar recycling deployment.

*
Management’s language has shifted from focusing on foundational funding and technology readiness in Q2 to scaling operations, customer acquisition, and facility expansion in Q3.

*
Analysts’ questions have remained consistent, emphasizing capital allocation, revenue trajectory, and execution against stated milestones.

*
Management’s tone is more assertive this quarter, signaling readiness for commercialization and increased market activity.

RISKS AND CONCERNS

*
De Gasperis acknowledged that ramping up customer panel deliveries is contingent on receiving final permits, noting some customers require confirmation of facility readiness before large-scale engagement.

*
Merrill addressed the nonrecurring expenses linked to extinguishing legacy obligations, indicating these actions will result in “about $1 million of savings a year.”

*
De Gasperis stated there is no current plan to issue equity for mining operations, with future mining funding likely to come from joint ventures or asset-level transactions.

FINAL TAKEAWAY

Comstock’s management highlights a fully funded position, debt-free status, and imminent commissioning of its large-scale solar panel recycling facility in Nevada. The company is targeting 300,000 tons of recycling capacity across three sites by 2028 and is prioritizing reinvestment into metals capacity expansion. Management underscores robust customer engagement, expanding institutional support, and advancing both metals and fuels platforms while actively pursuing monetization opportunities in mining and technology licensing abroad.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/lode/earnings/transcripts]

MORE ON COMSTOCK

* Comstock Inc. (LODE) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4835928-comstock-inc-lode-q3-2025-earnings-call-transcript]
* Comstock's Moonshot Businesses Should Be Heavily Discounted Based On Prior Dismal Execution [https://seekingalpha.com/article/4832332-comstocks-moonshot-businesses-should-be-heavily-discounted-based-on-prior-dismal-execution]
* Comstock Inc. (LODE) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4813892-comstock-inc-lode-q2-2025-earnings-call-transcript]
* Comstock Q3 2025 Earnings Preview [https://seekingalpha.com/news/4510269-comstock-q3-2025-earnings-preview]
* Comstock orders equipment for its first large-scale solar panel recycling plant [https://seekingalpha.com/news/4488980-comstock-orders-equipment-for-its-first-large-scale-solar-panel-recycling-plant]