Replies to post #14847 on Comstock Inc (LODE)

[bobbyinredwood]

That and debt restructuring. If you thought they had a really good chance to restructure the debt and obtain financing to get us into production you would be wise to get all the shares you can down here.
I feel with 2 billion worth of precious metals in ground and even in this time of tight lending they have a good chance. When you add Moelis into the fold it would seem those odds just became all that much better. JMO.
If you don't think 2B is worth 20M to get into production and that nobody would put that up, then I recommend not buying, this stock is not for you.
I've placed my bets on the former, obviously.

[Extreme4Reality]

The market is willing to value gold exploration.

UXG and RBY are sustaining market caps of over $500 million on drilling and exploration alone, without production revenues.

You have to ask two questions.

1. What is LODE's fair value as a gold-explorer?

2. What will LOAD be worth as a gold producer?

The market is willing to value gold explorers at 5 - 10% of the found gold in the ground. Comstock Mining, LODE, has found $2 billion, so that means LODE could be fairly valued at $100 - $200 million WITHOUT PRODUCTION (and growing as they find more gold).

Why isn't LODE being fairly treated by the market as a gold explorer? Lack of marketing and lack of marketability. They've corrected the sub-penny price and the 4 billion outstanding shares, they've got a permanent CEO in place, they've got a new website ready to go, they've got a new name, they just need to finish the debt restructuring in coming days and then they can start the marketing and investor relations to help achieve a fair valuation as an explorer.

Going into production is icing on the cake. Gold producers can be worth 15 - 20% of the gold in the ground, especially if there is good reason to believe that there is much more exploration potential. So production could take LODE to a valuation of perhaps $400 million (and growing as ounces are added to the 43-101).