Comstock Inc (LODE)

[TMLonggun]

If you look at the numbers the company is doing everything right. Their cost to mine an oz of gold is around $650. So they are profitable at any number above that.

100% factually incorrect. No, they are not profitable above $650, that you would even suggest that shows that you are very biased. LODE's AISC was over $1300/oz the last time I tried to figure it out. AISC is the only number that matters and conveniently something lode omits.

Lode reporting only cash cost applicable to mining is like a bakery saying the only cost to bake bread is electricity and claiming the cost to produce a loaf is 10 cents, while leaving out most of the inputs that make up its cost of production. It makes no sense whatsoever unless you were attempting to downplay a serious issue and make costs appear lower than they actually are.

LODE is down 40% in the last month because they lose money at current gold prices and at lower prices it starts to look quite unattractive. This is lode's optionality in reverse = high gold prices mean profits and higher share price while lower prices mean greater losses and lower prices.

Lode is worth a lot at 2k gold, very little at 1200, and almost nothing at less than 1000. If gold does go to 2k in the net couple of years lode is a huge bargain right now, if not, not so much.

A simple question is: Why does lode not report the only number that matters, unlike the vast majority of their peers?

The answer is obvious. Coupled with their losses if they say they are at $1200+ AISC and gold is at $1100 it is a giant, red flag that this mine is not economic at current prices and requires the company to restructure and be more aggressive in its cost cutting. Personally I would start with Corrado's pay but that's just my opinion as a very small shareholder, made smaller by lode management.