Replies to post #20186 on Comstock Inc (LODE)

[TMLonggun]

Sail,

I like Hamilton and agree with the vast majority of what he writes. I agree the industry as a whole has no problem with $1000 gold or less, as there are many low cost mines out there and the whole industry is flexible. The notion that sub $1k would destroy all the mines is absurd. In Mexico they are profitably mining fractions of what lode is for some nice margins. The sector isn't at risk, just the companies with high AISC.

http://www.mining.com/web/gold-miners-1200-cost-fallacy/

I actually have no comment aside to say I agree and that I think Adam is a sharp guy. There is a lot of false dichotomies and dilemmas in the investing and speculating world and it is handy to have help to cut a few of them away.

If you didn't read this one from this summer it is also must read:

http://www.zealllc.com/2015/absgslev.htm

I realize that startup miners usually, or at least often, do take more than five years to become profitable but I am really tired of saying maybe next year. Still the company has delivered on cash costs and after this round of exploration is completed I do think the AISC could be well below a thousand dollars.

It is madness if it takes 5 years and hundreds of millions of dollars to earn one dollar. Look at Claude, they pursued the "lose money on every ounce strategy" and changed to a high grade profitable strategy and low and behold once they start making money they are the number one performing Canadian gold stock and are now net debt free and make so much cash the sky is the limit for the stock price.

Lode will not see AISC below $1k, perhaps ever, IMO. It is more likely they hover around $12-1300 (where I currently think they sit) and then eventually because of rising gold prices, higher grades, and larger tonnages are able to progressively eek out a small and then larger and larger profit over time. If the USD would have devalued in a similar fashion as the CAD I think would be (barely) profitable right now. When lode becomes profitable its stock will perform and if not we will continue the long drift.

All IMO of course.
Take care.

[realtorwsm]

Thanks for sharing!