39 of 2012 10-K) and thanks in part to this survey they expect to spend less than $2 million this year validating and discovering what gold is where. Associated with another SA Contributor Johannes Sorto. The first was the USS Comstock (LSD-19) which was launched in 1945 and the second is the USS Comstock (LSD-45) which was launched in 1988. All products, men and supplies, as well as recoverable ore, travels up and down the shaft in a cage. It operates through the following segments: Mining and Real Estate. I have reviewed their 10-Ks & Qs from this period to see what might have been reported that caused their stock to rise into the 80s. Ive been watching this company since the Goldspring days of 2008. The last time they were in a similar position was in 2012. Comstock is a mining company that is expanding into new potentially lucrative businesses. Why does the quant have it rated so high? Tonogold just announced the termination of their CEO, Mark Ashley, an odd move given that they are in the midst of a large-scale drilling campaign at Lucerne. The excavations were carried to depths of more than 3,200 feet (1,000 m) (eventually, after years of work). A historic mining area will still have a significant amount of deposits in the ground. The strategic importance of the MCU-P site is related to it being renown for being an extremely contaminated ecosystem. However, I believe Comstock Mining should be avoided. Jun. As a mining company, Comstock engaged in little actual mining, recording zero revenue from 2017 through 2020 from such activity. Maybe this can be overlooked, or maybe there is more than meets the eye to this deal. Is it possible to include a greater number of buzzwords in a single sentence? Orr named the gulch Gold Can. Lumber and cord wood were harvested with little regard for impact, for housing, commercial building, heating, and steam boilers at sawmills and ore mills. Henry T. P. Comstock learned of the two men working on land that he allegedly had already claimed for "grazing purposes". Comstock hopes to bring in at least $12.5 million from asset sales over the next three years. The company halted mining operations in 2016 and has been undergoing a painful reorganization process. Comstock Mining (NYSE:LODE) has sought to begin a new era, announcing a shift in strategy earlier this year. With the risks taken into account, management makes me feel comfortable with the risks for a few reasons. Man killed in blast during illegal mining in Rajasthan [2]:8098, The Crown Point-Belcher bonanza was discovered in 1870. They were a fraud then, and they are a fraud now. John D. Winters Jr., and J.A. The Company's segments include mining and real estate. Grosh and Bucke never made it to California. In particular, go through any filings with a fine-toothed comb. The costs of setting up the operations are also relatively inexpensive at a cost of $2 million and they have an estimated operation life of 6-10 years making the MCU-P a cash cow. This activity paralleled a rapid and substantial rise in the price of gold and silver, which was unpegged from the dollar by President Nixon in 1971. In fact, it's just the opposite. [2]:17. Bagley introduced a variation of the Freiberg process, using the revolving barrel process of amalgamation, and chloridizing-roasting of ores, after the stamp dry-crushed. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. They were pretty good for about a week and then it has been a solid decline since with really no Rhyme or Reason. After the March offering, the company used a portion of those proceeds to retire their debt, leaving them with approximately $14 million in cash, minus Q1 expenses, and no debt save for their reclamation liability. I wrote this article myself, and it expresses my own opinions. Comstock Mining, Inc. engages in the exploration and development of mineral properties. All mining from 1920 to present has taken place above the Sutro Tunnel level. Joshua, every time I find a stock that I like it seems that you have written a recent article covering it and confirming my reasons to invest. Comstock is attempting to erase years of failures as a mining company by joining the ESG wave. This compares to earnings of $0.05 per share a year ago. Management hasn't proven it can run a successful business and hasn't earned the benefit of the doubt that investors seem to be giving them for now. LODE is a buy, in my opinion, the risk here is asymmetrical as the stock has the potential to increase 3x and more. Virginia City, Washoe, and other mining "boomtowns" quickly arose in the vicinity, and in 10 years the lode's output justified establishment of a U.S. branch mint (closed in 1893) at Carson City. The Carson river and the Lake Lahontan carry warnings against mercury. After spending most of 2020 under $1, their stock price soared to more than $6 per share in February before sliding under $4 at the end of April. [ Index] What Happened to Manny? the promise of increasing Comstock's revenues by orders of magnitude from where they currently stand. Shares of Comstock Mining ( LODE -0.59%), a Nevada-based gold and silver miner with ambitions to enter the market for recycling lithium-ion batteries, crashed in morning trading today. The Motley Fool has no position in any of the stocks mentioned. The results speak for themselves, and those are sorely lacking. In 1920, the United Comstock Mines Company was organized by prominent Comstock mining engineers Roy Hardy and Alex Wise with financial backing by New York businessman Harry Payne Whitney. After 2016, their one and only producing mine was tapped out. Chollar Mine Tours With its riches first located in 1859, the Chollar Mine (later the Chollar-Potosi) was one of the leading producers on the Comstock. The weight of the cage being lifted, lifted the rods, released the teeth and tightened the spring, allowing the cage to move freely. During the earnings call while the CEO showed excitement about the future of the company he also set realistic expectations stating very clearly LiNiCo is a tiny player in the industry, and that's okay. Great improvements were also made in the hoisting apparatus and cages used to extract ore and transport the miners to their work. Some say scam and short it or avoid it. After the discovery was made public in 1859, prospectors rushed to the area and scrambled to stake their claims. "We'd love to talk to them about what we're doing. An investment here requires constant vigilance and an eagle eye. I have no business relationship with any company whose stock is mentioned in this article. William Chapman Ralston, founder of the Bank of California, financed several mining operations, repossessed some of those mines as their owners defaulted, and ultimately made enormous profits from the Comstock Lode. I am not receiving compensation for it (other than from Seeking Alpha). Management hasn't proven it can run a successful business and hasn't earned the benefit of the doubt that investors seem to be giving them for now. [2]:112,139,269. It will most likely be found in the quarterly results which should be released around May 14th. Please. Given the unique opportunity Comstock presents, and the pain long-term shareholders have experienced, I go back to how things looked in 2012, the last time the stock experienced a meaningful increase in its price as well as the future potential for their up and coming businesses. Unhappy with his current claim on Gold Hill, Comstock made threats and managed to work himself and his partner, Immanuel "Manny" Penrod, into a deal that granted them interest on the claim. Rio Tinto is a diversified mining company. Comstock owns 45% of LiNiCo, with the potential to own up to 64%. The operations of LiNiCo are to take used up lithium batteries, or batteries that were not up to spec and turn them into pure cathodes which are what is used to make the batteries for phones, cars, etc. Comstock Mining - Finpedia Then they dillute their stock so Gasperis get his $250k salary for literally doing nothing. Something doesnt add up. Spruce Point says it's especially concerned with Comstock's $11 million investment, alongside Aqua Metals, to acquire majority ownership of LiNiCo, a start-up lithium-ion battery recycler. The Comstock Lode was the first major U.S. discovery of silver ore, located under what is now Virginia City, Nevada, on the eastern slope of Mount Davidson, a peak in the Virginia Range. I think they'd be shocked.". [citation needed], The miners stated "porphyry makes ore". Then, in 2019, Comstock underwent a corporate realignment, the results of which were a tangled web of tiny, discrete business interests, none of which currently produce substantial revenue. Mining stocks have been great investments this year - MoneyWeek The company now seeks to rebrand itself as an emerging component of the green energy revolution, essentially playing on a trendy social movement in the hopes of gaining share price traction. It was the evening of March 7 last year and nickel prices had surged as much as 90% to an unprecedented $55,000 a ton, causing huge strains across the market. As population increased, wells were dug for domestic needs, and the water in several mine tunnels was added to the available supply. Seeking Alpha contributor Warren Ludford shared a thorough and optimistic rundown of Comstock back in February. [2]:113 The ventilation problems were solved at about the same time by compressed air for the use of pneumatic drills. To overcome these troubles, Adolph Sutro conceived the idea of running a drain tunnel under the Comstock Lode from the lowest possible point. Please disable your ad-blocker and refresh. Comstock Mining, Inc. (LODE) Reports Q2 Loss, Lags Revenue - Nasdaq It was rated A+ but severely dropped expectation. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. What happened in the Russia-Ukraine war this week? Catch up with the The Gould & Curry bonanza included 500 feet (150m) of the El Dorado outcrop, but dipped southward into the Savage at 500 feet (150m); the ore gave out by 1866. My take is a much more cynical one. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. The price of gold would need to reach much higher levels to make most of these pockets economically viable.