Now, I want to say it very clearly. I’m not saying we won’t issue shares. I’m saying that we will leverage the value of this platform to do it in a way that maximizes the future value, maximizes the future returns, and always in a way that ensures the enterprise is safe, right. There’s too much value here to do anything. That’s Maverick, right. And so we’re – I think, Trevor, frankly, there’s a little bit of a balancing act. But what I like is we have many, many variables here, right. That ensures our success. It ensures our wherewithal to move forward.
Trevor Brucato: So let’s dig a little deeper into that. Here’s a multi part question. How much capital has been committed to each business segment and how much future investment is needed for each? Where will these funds come from? So, Corrado, I think it might make sense to perhaps kick off with the monetization strategy around your metals business.
Corrado De Gasperis: Yes. Well, I’ll do that. So, in metals case, and metals is just such a great business, right, the cash projections, which I concur wholeheartedly with Billy. I mean, sometimes I feel like biting my tongue. We are being conservative. We’re being practically conservative. We’re looking at the real risks of commercializing two, three, four facilities that are new, right, that are pioneering. But we already understand the capital profile, we understand the locations that they’re in. And as I mentioned, we’ve already tapped into the availability of USDA loans, the availability of Nevada industrial bonds, and we didn’t model the point that Billy made, right. We didn’t model that working capital here is a source of cash, not a use of cash, right.
So we’re being very conservative in our approach. I think it’s a self funding business, right. I think it’s a self funding business where we can bring the capital without dilution to Comstock metals. And before we know it, it’ll become a source of cash for the corporation. First, initially to continue to fund its growth. Remember, if you talk about three facilities, that’s 300,000 tons. That’s beautiful. Look at that cash profile. But there’s a million ton market staring us in the face. With mining, maybe it’s a quickie and a simple one. We don’t spend $2 million a year in our mining resources. We have excellent technical resources. We have an amazing land position, mineral estate. And we right now have revenue that just about matches that number, right.
So mining is sort of covered. We have not approved future funding and future development of the mineral assets. We’ve been developing the models and expanding the resources, either through our existing fixed cost or through the GenMat effort. When we monetize the assets, we will then trigger, right, the advancement of those mine assets into production. And the same can be said for fuels. Now, fuels takes a larger amount of our capital, you could assign easily $6 million to $8 million of spend relating to fuels. What I love about the fuels profile though, is most of that spend is innovation, engineering, research developmentand business development and commercialization. It’s fun. We have almost no administrative cost in there. It’s all moving the business to the finish line.
And so we need to keep that funding. There are things that we would want to advance faster, like, the demonstration facilities in Wisconsin. I mean, if we had the wherewithal, we would build a larger demonstration facility ourselves. The good news is we’re not going to have to do that. We’ve got at least two customers who want to do that and build the first few production facilities. I believe that capital will come right into the subsidiary and it’ll unlock value, because if you invest directly into the Comstock fuel subsidiary, then we have to value that subsidiary. And the value of that subsidiary will have zero correlation to the current value of the enterprise. However, once we value that subsidiary and that capital comes into that subsidiary, it will and should directly correlate to an increased value of the enterprise.
Hopefully, that’s coming across sensical. And what I want to just throw out is that if you start thinking about our investments, GenMat’s in the exact same position as fuels. GenMat is commercializing with industry scale partners, GenMat will be soliciting capital from sophisticated third-parties and GenMat will set a valuation in the same way that fuels will set a valuation at their level. And then people will know we own a third of that value. But if you want to talk real dollars, we’ve committed another $4 million to GenMat for the rest of this year. We’ve committed another $1 million or $1 million in total, actually, for RenFuel, $1 million a year for three years. And we’ve committed about $ 2 million, maybe $3 million for these new partners that are bringing new breakthroughs that are enhancements to our existing platform.
So it’s not new in the sense of left field, it’s new in the sense of home base. And that’s where we’re expecting to really take our lead and move it to a whole other level. So I’m not sure if that covers the question fully.
Trevor Brucato: No, it does Corrado. And perhaps just high level. What are generally the monetization strategies? I mean, can we look at – there’s capital being brought in on the corporate level, there’s capital being brought in on the project level from strategics. It’s owning perhaps a smaller piece of something much bigger. These projects, there’s many projects that we’re all looking to roll out here over the next several years, big picture, again. So perhaps you can just elaborate on the different types of strategies that you guys have in mind.
Corrado De Gasperis: Yes. I think a simple summary of it would be, to date, right, the readiness has been such that we’ve had to fund the businesses from the corporation. And as you see, that requires and has required the issuances of equity and some amount of debt to do that. Now we’re seeing that they’re getting to the point of maturity where they can self-finance. Billy summarized it very well for metals. It’s right there for us. They’ve crossed the finish line. We now have empirical data. We can show revenue, we can show costs, we can show projections. That’s all we need, right, to start bringing that capital in. Fuels and GenMat, all we need is the commercial validations, right? They’re happening already with industry scale and sophisticated early adopting customers.
And so that is all we need in addition to the business plans, which are fully now developed, right, internally, to start bringing that capital in at the subsidiary level. So that’s what’s going to happen. The beautiful complement will be if we could get some asset sales done a little more timely here, it relieves all the pressure on everybody’s minds, but it’s coming.
Trevor Brucato: Thank you, guys.
