Comstock Mining: Time To Back-up the Truck for This LODE
Article # 2
Summary
LODE has announced a series of five strategic transactions expected to inject $325 million into the parent company and three of its subsidiaries.
This capital infusion will fund the development needs of the three subsidiaries.
Solar panel recycling operations are expected to begin generating cash flow in 2025, with sales commencing in 2026.
LODE will receive $50 million from the sale of unused land.
The group is making a direct investment in LODE at $0.40 per share, representing a 165% premium over the current trading price.
Introduction
In nearly 20 years of small and micro-cap investing, we may have just encountered one of the largest disconnects between market capitalization and asset value we've ever seen. You might assume we're referring to a company in a mature, declining market, but it's quite the opposite.
One of the biggest challenges for Comstock Mining (LODE) is its identity as a micro-cap conglomerate tech incubator operating under the guise of a gold mining company. This complex and unconventional business model is difficult to grasp, which makes it hard to attract investors and likely contributes to the disconnect between asset value and market cap.