Retired international oil geologist
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Is it my imagination, or did LODE just get a million dollar farmin deal on their northern Comstock blocks??
I'm not so sure.
If I trusted Comstock "forward looking statements" I would be buying LODE hand over fist, for we are getting awfully close to 'moment-of-truth' time. But since I no longer do (and have the losses to prove it), I am merely buying a few speculative shares at these low prices, for we shall at long last soon know the answers.
Judging by the 'big announcement', I'd say Comstock is now hot air, stock dilution and a doubling of the rate of loss.
Thank you Steveruss. I bought Comstock over ten years ago when it was a gold mining company but lost a lot of money, time and other opportunities when it suddenly danced over to play "Technology" with the big boys. I still think the 'old-timer' goldmining methods and economics must have left gold behind at Comstock and have just one question: Where have the Lode Board of Directors been?
Interesting comments from the earnings transcript:
50:20 Pivoting back to mining. Are you going to try to market the mining operations?
Corrado De Gasperis
50:27 Yeah. We're going to, right. There is a high level of interest in the entire district. There is a lot of value supported by the technical reports and we're going to do, look its capital allocation decision, if you can deliver hundreds of billions of value in cellulosic fuels, right, where do you want to put your capital, where you want to put your resources, where do you want to put your team? So we made that decision.
Zach Spencer
50:55 Okay. And the next question, can you please describe the raises that were recently awarded?
Corrado De Gasperis
51:07 Yeah. Look, when we did the acquisitions and we brought the team on, we came in al it below market values that was done by necessity, right? We needed to get started right away. We didn't have necessarily resources right away and we did something out of necessity. I don't think anybody would benchmark any of our salaries or any of our compensation today or over the last five years is being anything other than below market.
Notice the greatly increased admin costs. The stock price may not be increasing, we may not be mining or exploring, the Philippine 'sure thing' may be a failure, but Lode, the new Eighth Wonder of the Green World, has a lot of top officers to pay. So issue more stock. Talk about the indefinite future, full of lithium, biowonder fuel and garden fairies. But where is the revenue? Any revenue?
I've owned this stock for over 10 years now. Does anyone remember the Comstock Mining Company? It should not have been that hard to profitably mining silver and gold left behind by 19th century mining techniques and 19th century gold and silver prices. Or were those old miners a lot better and more thorough than we thought?
I hate to bother any Comstock hemp and Lithium battery investors with any mining news, but Tonogold came out with their technical report on the Lucerne resource today.
Tonogold came out with technical report today on their Comstock area holdings.
Talk about lost opportunities. Imagine where we might be, once Corrado got
Tonogold to basically pay off our debt, if Comstock had just stuck to:
1. Finding Comstock gold that 1800s mining techniques and prices must have surely left in the ground,
2. Mercury remediation. preferably within U.S. borders or in other politically stable countries with rules we can trust,
3. Using more generalized remediation techniques to clean up (and mine) what was left behind in tailings deposits, and
4. Refrained from stock dilution to finance risky growth in hemp, lithium battery recycling, quantum computing and who knows what's next? Mining the asteroid belt?
I trusted Corrado and his plans for Comstock, and so far it has cost me dearly.
Someone please correct me if I am misinformed, but while accepting that Itronics is remarkably non-informative on financial details, I heartily dislike that the SEC apparently has two set of rules: one (sell only, with few to no buyers) for ordinary investors and another ("expert or sophisticated investor") for rich people.
I am not a millionaire, and might never be (not that it matters that much to me), but I consider myself sophisticated, and in order to be able to trade Itronics I would happily sign a paper or something that I understand and gladly accept the potential level of risk here.
This trading restriction is said to be necessary to "protect" us, the smaller investor, but all it seems to do is to prevent us from knowingly, knowledgeably and voluntarily investing in a company we really like, while rich people, apparently, still can.
No wonder most of the billionaires seem to be big government progressives. They seem to be reinventing feudalism, with them as Lord of the Manor and our hard-working, declining middle class as the new serfs.
As I write this, LODE has dropped to $1.95. No do I see major stakeholders jumping in to "snap up bargain stock."
Perhaps Comstock should have stuck to mining, mercury remediation and secondary metals recovery, Itronics style, leaving quantum analysis to the theoretical physicists.
Comstock is beginning to remind me of a bipolar patient. During the 'manic' phase, it acquires other companies (and personnel) left and right; and during the 'depressive' phase the stock goes to $1.95. Are we shareholders, metaphorically, its 'orphan children?'
I would love to be wrong about this, for I am heavily committed, but stock price can sometimes be a 'truth machine.'
I will say that I read the transcript today of Corrado's remarks and found the Q. and A. quite informative and upbeat.Definitely worth a read. But it would be greatly reassuring if the officers of the company were themselves purchasing Comstock stock. I wonder if they are.
Another disappointing quarter, financially. It would really be wonderful if Comstock would knuckle down, focus and show a profit somewhere. Somehow. Some time. Other than one time sales of supposedly valuable mining property. And I am beginning to wonder if those "primitive" 19th century miners actually did a far more thorough job of mining out Comstock than any of us ever believed.
Agreement Details R&D Parameters for Aqua Metals to Convert
LiNiCo’s Lithium-Ion Battery Black Mass into High-Value Metals
RENO, Nev., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ:AQMS) ("Aqua Metals" or the "Company"), a leading innovator in metals recycling with its AquaRefining™ technology, has signed a collaboration agreement with LINICO Corporation (“LiNiCo”), a cleantech innovator and aggregator focused on closed-loop lithium-ion battery recycling, to process lithium-ion battery black mass into high-quality metals. This agreement, which sets the parameters for future research and development cooperation, strengthens both companies’ expansion into lithium-ion battery recycling and builds on the two companies' commitment to advancing best-in-class technologies designed to recycle lithium-ion batteries cost-effectively and sustainably.
Aqua Metals and LiNiCo plans to source the necessary lithium-ion feedstock from battery manufacturing scrap and end-of-life cells from various sources, including electric vehicle battery suppliers interested in participating in the eco-network the two companies announced earlier this year. LiNiCo will process the feedstock into high-quality black mass utilizing its proprietary process. The resulting black mass will be used as input feedstock for Aqua Metals’ AquaRefining pilot cells to create high purity metals such as nickel, cobalt, and copper as well as other compounds.
AquaRefining, already proven at commercial grade for the clean recycling of lead-acid batteries, is a room temperature, water-based process that is fundamentally non-polluting and uses an electroplating process that builds metal by plating one atom at a time. Aqua Metals’ unique approach for multi-metal recovery for lithium-ion battery recycling is designed to recover a higher percentage of metals in a higher quality form, with better economics and lower emissions and waste streams than current recycling applications – all in a safe environment for workers.
“With the shift to the sustainable clean energy economy, we are facing a global challenge with the need to recycle an estimated 15 million tonnes of end-of-life lithium-ion batteries by 2030. As the world’s 1.4 billion cars transition to electric vehicles over time, it is imperative that we utilize innovative, clean lithium-ion battery recycling or risk undermining our environmental progress,” said Steve Cotton, President and CEO of Aqua Metals. “By working together, Aqua Metals and LiNiCo plan to provide a cost-effective and environmentally responsible solution for re-utilizing in country the scarce and expensive metals needed for lithium-ion batteries, instead of solely relying on mining strategic metals from out of country sources that can result in harsh environmental and social costs.”
“We are pleased to collaborate with Aqua Metals to develop valuable recycled metals not only economically but also environmentally safe,” said Michael Vogel, President, CEO, and Founder of LiNiCo. “By utilizing the power of our proprietary innovative recycling technology that is already capable of receiving, crushing, and producing high purity black mass in our new recycling facility, combined with Aqua Metals’ proven AquaRefining technology, we believe our joint partnership will enable us to develop new methods to cost-effectively and sustainably recover high-quality metals in ways that will benefit the industry and the planet.”
In February, 2021, the Company and LiNiCo reached a lease-to-buy agreement for the Aqua Metals' 136,000 square foot AquaRefining facility for which LiNiCo made the first purchase deposit of $1.25 million in October, 2021. Aqua Metals also committed a $2 million investment, paid in Aqua Metals shares, for a 10% ownership in LiNiCo, as part of its strategy to strengthen growth by potentially applying AquaRefining™ intellectual property to lithium-ion battery recycling while meeting its lead recycling commercial guidance. The Company’s investment transaction was undertaken in partnership with Comstock Mining Inc. (NYSE:LODE), which secured the rights to a majority equity stake in LINICO
Here is a quote, directly from the prospectus:
"Investors in shares of our common stock offered in this offering will experience an immediate dilution in the net tangible book value of their common stock from the public offering price of the common stock. The net tangible book value of our common stock as of June 30, 2021, was approximately $70.3 million, or approximately $1.51 per share of common stock."
I guess the key to whether this $5 million 'investment' is a good idea for us or not is whether the shareholders (that's us) feel that the difference between $1.51 and the current price of the stock is attractive or not, depending upon Comstock's future potential.
Am I reading this right? My own gut feeling is that LODE has real potential going forward, but that we now have too many unresolved irons in the fire. Thoughts, anyone?
Thanks bistouriman. That announcement by Corrado eases my mind a bit. I feel like Comstock is returning,at least in part, to the real world of mining and remediation.
I'm still very uncomfortable with recent unexplained developments and new players, however.
Yes, bistouriman, recent Comstock expansion into far fields and particularly those two glowing letters from the Friends of KK make me very nervous. Some detailed, precise words of explanation from Corrado or the Comstock board would help. Reports of mining or remediation progress or current profits, even if small, would help. Finishing those necessary mining reports would help.
Hype makes me itch. Worse than poison ivy. It is a really bad idea to fly off in all directions at the same time.
NOW I see why Corrado and the rest of the Comstock board have been so quiet.What were they thinking? This seems indefensible.Comstock seemed to be doing well: No debt much potential and plenty on it's plate already. What do we ever need KK for?
If there was ever a time when Corrado (or better still, his board of directors as a group) needed to make a public statement, it is now.
This headline (no article attached) puzzles me:
"Comstock Mining 13D Filing From Triple Point Asset Mgmt. Shows 8.5% Activist Stake In Co."
On one hand, this could be helpful, as Comstock itself has long emphasized community relations and proactive environmentalism.
On the other hand, some activist groups just hate capitalism (and particularly natural resource companies) and can never be appeased. Perhaps it depends who these "activists" are and who backs them.
Any thoughts, folks?
Thanks. Great idea, for that is where I (and possibly others) are far less knowledgeable, compared to their traditional activities.
I appreciate the thoughtful, information-based differences of opinion on this site. That's why I'm here; you guys have been very helpful. Information-based helps all of us, whether we always agree or not. So thanks.
I myself was very bullish not long ago, and still am bullish long term. But I am 10 years older than when I first bought Comstock, and am remembering Lord Kenyes rebuttal to long term: "In the long term, we are all dead."
Instead of hearing mostly about hemp, quantum computing and new acquisitions full of magic processes, it would also be delightful to also hear about:
1. Good news from Tonogold's drilling and of timely payments to Comstock.
2. Plans to further advance Dayton and to define/develop other prospects
3. Potentially profitable mercury remediation and mineral recovery on Comstock tailings
4. Philippine profit or loss details. Que Tal?
5. Real estate sale closings.
6. Finalization and release of key technical mine reports. Etc.
I don't mean to sound snarky, nor to want stockholder 'babysitting' quite the opposite. But surely Comstock has a small manpower headcount, and must be really straining to manage or closely follow so many different things at once, while adding more.
8,500,000 restricted shares of common stock plus 20% of the Company’s future consolidated net cash flow from operations up to $18,000,000??
This constant search for expensive new fields to enter (while announcing no progress on old goals) is making me very uneasy.
If the shorts want to play games, perhaps we who are long term investors can too. I am more tired of them than I can express, and therefore sold some Lode at $3.45 in the premarket this morning, buying it back (and more) at $3.04 during the regular session from the fools who shorted it.They obviously have a right to their opinion, but we shall soon see who is right.
I've owned LODE for over 10 years now. Good times and bad. Bought it when they were still producing gold - at a loss.
Lode is now up 28 cents (to 3.26) on the day, or just under 10%.
Thank you, Saildone! What an enormously detailed report.
A bit overly optimistic? Perhaps, perhaps not. I'm willing to bet on Comstock, and like the way the article 'resurrects' discussion of the gold and silver mining potential, which has been little discussed in recent months.
I tried to access the entire Seeking Alpha article not just the headline, but apparently I have already exceeded the reading limit (2 or 3 articles) for the month. Grr.
Perhaps someone else can.
Comstock Mining Accelerating Growth Plans, $9/Share Valuation Timing' -Seeking Alpha Report
Lode is looking strong today. Perhaps it is a delayed reaction to Corrado's Q2 presentation comments that strong new investors are coming in.
I am losing patience with the now badly misnamed Comstock Mining Company.Too many trendy new ideas - hemp, Li batteries, quantum computing etc., but no follow through mention of prospects or progress in mining, the Philippines or remediation.
Where is the focus?
I'm much more optimistic than this, but am very interested in the reasoning of the bears.
Comstock's Q2 report may be very important, at least in the short term. The stock is rather weak right now, and could react sharply up or down, depending upon Q2 earnings, if any.
I don't know if there is any connection here with Comstock's other businesses, but this quote (from the internet) is interesting:
"(Hemp) has also been tested with favorable results for phytoremediation in areas where lands are contaminated with various pollutants such as heavy metals, crude oil, chemicals and solvents."
Comstock's LiNiCo to Recycle 100,000 Tons of Lithium-ion Batteries Per Year
7:05 am ET July 21, 2021 (Benzinga) Print
Comstock Mining Inc. (the “Company”) (NYSE:LODE) today announced the filing of a Written Determination of Hazardous Waste Recycling (“Application”) by LINICO Corporation (“LiNiCo”), and its lithium-ion battery (“LIB”) recycling facility located in the Tahoe Reno Industrial (“TRI”) Center in Storey County, Nevada (“TRI Facility”).
The Application and LiNiCo’s final engineering plans are based on the first phase of LiNiCo’s proprietary LIB recycling technologies, which have been designed for extraordinary capacity and yield at a fraction of the capital and operating costs of all known methods. Those technologies are the direct result of Comstock’s recently announced and planned additional technology development, engineering, and materials science acquisitions and other transactions, including Renewable Process Solution (“RPS”) and its CEO and Comstock’s new Chief Process Engineer, Rahul Bobbili.
Construction of the first phase of LiNiCo’s new processes will commence at the TRI Facility upon approval of the Application, with an anticipated completion and start-up during the first half of 2022. Once complete, the TRI Facility is conservatively expected to scale up to its initial nameplate capacity exceeding 100,000 tons per year of LIBs over a period of three years, with annualized revenues exceeding $250,000,000, $410,000,000, and $505,000,000 per year during the TRI Facility’s first, second, and third full years of operations, respectively, as shown in the following excerpt from LiNiCo’s internal projections:
2022 2023 2024 2025
Throughput (tons per year) 26,880 53,760 80,640 87,091
Revenue ($000s per year) $ 90,339 $ 250,814 $ 410,450 $ 505,094
Extraordinary Growth
Spent LIBs are widely expected to contain more than $12 billion in recoverable strategic metals by 2025 and $26 billion by 2040, as global mobile device use increases to about 18 billion by 2025, and electric vehicle (“EV”) sales increase to about 138 million units by 2030 from 7.6 million in 2020, according to the International Energy Agency. ARK Invest also recently concluded that EV sales will increase to about 40% of global auto sales within five to six years. Tesla CEO Elon Musk provided a similar estimate, tweeting his view that the industry could produce 30 million EVs per year by 2027. Peter Rawlinson, CEO of Lucid, said in June 2021 that he believes that there is a growing recognition that EVs represent the future of the auto industry. And General Motors recently announced that it will increase spending on electric and autonomous vehicles to $35 billion through 2025, with a target of selling 1,000,000 EVs annually by 2025.
Well, it's come back considerably now. \
But with a low of 51 cents and a recovered high of 95 cents, that's almost a 100% range in stock price this morning alone. And still I find no public news. Yikes!
Does anyone know why Itronics is losing 37% of its value today? No public news that I see.
Some moderately-encouraging further results from the recent Tonogold drilling on their Comstock farmin acreage:
Tonogold has received assays from five recently completed holes in the Company's ongoing exploration of the Comstock Lode. Drilling has shifted to testing the mid to shallow levels of the Lode where two holes were completed in the Segregated Belcher target (TC-009 and TC-010) and the remaining three holes tested the Con Imperial-Alpha target (TC-011, TC-012, and TC-013).
Highlights of the results include:
6.10 meters (m) at 6.77 grams per tonne gold equivalent (g/t AuEq) in TC-009,
1.52 m at 5.60 g/t AuEq in TC-011,
7.62 m at 9.51 g/t AuEq in TC-012 including 3.05 m at 20.83 g/t AuEq, and
1.52 m at 4.02 g/t AuEq in TC-013.
I don't ever hearing or reading anywhere about Comstock owning 45% of this company, either.
And did I misunderstand, or did Corrado say they are (ultimately) paying $50 million for another 5% of the company? Surely not, for that would value that company at a billion dollars.(100% divided into 20 five percent pieces times 50 million for each 5% piece).
Again, surely not. For if so, how did Comsstock ever get 45% of such a valuable company and we didn't even notice?
Another possibility is that
1. I dropped a decimal place somewhere, or
2. I may be losing my everlovin' mind and this is all a dream.
Number 2 is probably the most likely possibility as I have not yet had my nap. Yikes!
I completely agree, Arcangues93. Either a lot of debt or a lot of new stock shares. And just when I was starting to really trust Corrado's judgement, based on his recent Comstock results.
Perhaps he is wise. But yes, we need a better explanation. Profitable new industrial scale day-to-day uses for non-binary computing sounds like something even a high-tech multinational giant with deep pockets might find challenging.
This latest decision by Corrado, with its multi-million dollar obligations, makes me very nervous. Unlike the earlier mercury cleanup and lithium battery decisions, this one seems unrelated to mining - quite far afield.
Is Comstock perhaps over-committing, and 'getting too many expensive balls in the air' at once? What do other commenters think?