Comstock Mining (LODE) – Laying the Groundwork for Growing Shareholder Value

Tuesday, August 18, 2020

Comstock Mining (LODE)

Laying the Groundwork for Growing Shareholder Value

Comstock Mining Inc is a mining company with a focus on gold and silver deposits in the Comstock and Silver City mining districts in Nevada. Its operations are divided into two segments, namely mining and real estate. Its mining projects include The Lucerne Resource area, the Dayton Resource area, the Spring Valley exploration target, the Northern Extension, Northern Targets and Occidental areas. The Real Estate segment involves land, real estate rental properties and a hotel, restaurant & bar provided by the Gold Hill Hotel located in Gold Hill, Nevada just south of Virginia City and the Daney Ranch, located just south of Silver City. The majority revenues are generated from the real estate segment.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

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LODE swings to second quarter profitability. Comstock Mining reported second quarter net income of $0.05 per share compared with losses of $(0.13) and $(0.01) per share during the prior year period and prior quarter. The variance to our estimate of $0.01 was largely due to other income of $2.2 million, including unrealized gains associated with an increase in value of the company’s holdings of Tonogold Resources preferred and common shares. Operating expenses declined 15.9% versus the prior year period and were flat sequentially.


Extinguishment of senior secured debt. Comstock extinguished the remaining balance of its senior secured debenture with proceeds from the issuance of unsecured promissory notes and recent payments received from Tonogold Resources associated with the purchase of interests in the Lucerne property. The new promissory notes offer flexible terms and are expected to be paid down with proceeds from the expected …

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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).

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