Comstock Amends Its Partnership Deal With RenFuel

Comstock Inc. LODE announced revisions to its agreements with RenFuel K2B AB regarding the development of RenFuel's previously planned biorefinery project at a pulp and paper mill in Sweden. The changes also aim to broaden the scope of Comstock's partnership with RenFuel in the European markets. This move will significantly expand the markets of their joint technologies.
The amendments enable the liquidation of RenFuel's majority-owned subsidiary, RenFuel K2B Lignolproduktion AB. RenFuel formed the subsidiary to run its previously planned Swedish biorefinery as part of a joint venture with Preem. Comstock declined its option to step into the JV.
The expanded partnership better positions both parties for the building and management of a larger-scale commercial facility based on the joint Comstock-RenFuel technologies in Europe, following the completion of Comstock's first planned facilities in the Americas.
Comstock has already used RenFuel's patented catalytic esterification technology to refine its proprietary Bioleum derivatives into Hydrodeoxygenated Bioleum Oil capable of producing both SAF and Renewable Diesel Fuel. LODE has an exclusive license to RenFuel's refining technologies across North, Central and South America.
Comstock aims to prioritize a number of opportunities for commercial facility construction in the Americas based on joint applications of Comstock and RenFuel technologies. This includes an initial 50,000 TPY facility and at least one 1,000,000 TPY facility primarily designed to convert qualified biomass feedstocks into Sustainable Aviation Fuel and Renewable Diesel. This is consistent with all of LODE's current negotiations with strategic and capital partners.
The company reported a quarterly loss of 6 cents per share in the first quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 4 cents. The bottom line was flat year over year. Comstock posted revenues of $0.43 million for the quarter ended March 2024. 

Price Performance

LODE shares have fallen 68% in the past year against the industry's growth of 7.3%.

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Zacks Rank & Stocks to Consider

Comstock currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the basic materials space are Ero Copper Corp. ERO, Ecolab Inc. ECL and ATI Inc. ATI. ERO sports a Zacks Rank #1 (Strong Buy) at present, and ECL and ATI have a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Ero Copper's 2024 earnings is pegged at $1.66 per share. The consensus estimate for 2024 earnings has moved 20.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 53.9%. ERO shares have gained 9.5% in a year.
The Zacks Consensus Estimate for Ecolab's 2024 earnings is pegged at $6.59 per share, indicating an increase of 26.5% from the prior year's reported number. It has an average trailing four-quarter earnings surprise of 1.3%. ECL shares have gained 34.5% in a year.
The Zacks Consensus Estimate for ATI's 2024 earnings is pegged at $2.41 per share. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 8.3%. The company's shares have rallied 65.9% in the past year.

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