Comstock Inc. (LODE) – Upgrading Our Investment Rating to Outperform from Market Perform


Monday, August 12, 2024

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Proposed transaction with SBC Commerce. Comstock executed an indicative term sheet for $325 million, or $315 million net of transaction fees, in funding through SBC Commerce LLC (SBCC), a U.S. based private equity group. The transaction is contingent on final due diligence and applicable regulatory approvals and is expected to close in tranches over the next two to three months. At this point, we assume the transaction will close successfully within the contemplated time frame.

Infusion of growth capital to accelerate commercialization. The transaction provides a clear valuation marker for each of the company’s fuels, metals, and mining businesses and secures growth capital to accelerate commercialization efforts. SBCC will acquire Comstock’s industrial and commercial real estate and water rights in Nevada for $50 million, or $47 million net of transaction expenses.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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