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Comstock to Add AI Materials to Its Portfolio With GenMat Buyout

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Comstock Inc. (LODE - Free Report) announced that it acquired substantially all of Quantum Generative Materials LLC's (“GenMat”) equity, including its artificial intelligence material discovery platform, material synthesis and related assets. Adding AI will help Comstock achieve its goal of decarbonizing energy and creating shareholder value through breakthrough solutions for efficient energy production, distribution, storage and use.

Comstock’s Strategic Deal With GenMat

As a result of the transaction, Comstock will own substantially all of GenMat's issued and outstanding equity, as well as continue to develop and commercialize its breakthrough physics-based artificial intelligence products and services for discovering materials and other technologies, primarily for decarbonizing energy.

GenMat's AI works similarly to OpenAI's ChatGPT, producing atoms, molecules and physical systems for materials applications by leveraging the collective knowledge of physics and chemistry. This method has made significant advancements in materials simulation and synthesis. GenMat's materials discovery AI is at Technology Readiness Level ("TRL") 3 and aims to reach TRL 6.

Transaction Details of the LODE-GenMat Deal

In 2021, Comstock struck an investment agreement with GenMat, which included a milestone-based investment of $50 million for 50% of GenMat's fully diluted equity. As part of the new acquisition deal, both parties have mutually terminated previous agreements.

Moving forward, Comstock plans to seamlessly integrate and commercialize GenMat's assets.

Comstock’s Q2 Loss Widens Y/Y

In the second quarter of 2024, LODE incurred a loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 4 cents. This compares to the loss of 5 cents per share reported a year ago. The company posted revenues of $0.44 million for the quarter ended in June 2024.

LODE Stock Price Lags Industry

Comstock shares have gained 13.9% in the past year compared with the industry’s growth of 49.7%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Comstock’s Zacks Rank & Stocks to Consider

LODE currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Eldorado Gold Corporation (EGO - Free Report) . CRS, IAG  and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.09 per share. The consensus estimate for 2025 earnings has moved 7% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 127.1% in a year.

The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 36% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 152.6% in a year.

The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 16% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 82.9% in a year.

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