Comstock Mining (LODE) Company Overview & Stock Price Forecast
This article provides an updated analysis and stock rating for Comstock Mining (LODE) including an updated stock price target for October 2021. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Updated October 2021
Comstock Mining Fundamentals
Stock Price Target: $5.85
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Comstock Mining in comparison to the Precious Metals industry and the S&P 500.
Comstock Mining is a Micro Cap company with a Market Cap of $136.7M.
| Comstock | Precious Metals | S&P 500 | T-Bill (10Y) |
|---|---|---|---|
| 20.40% | 6.62% | 2.94% | 1.51% |
The current earnings yield for Comstock is 20.40%, in comparison to 2.94% for the S&P 500 and 1.51% for the 10-year treasury bond. The median earnings yield for the Precious Metals industry is 6.62%.
| Comstock | Precious Metals | S&P 500 |
|---|---|---|
| 4.90 | 6.29 | 34.01 |
Comstock is currently trading at a P/E of 4.90. The P/E for the Precious Metals industry is 6.29 and the P/E for the S&P 500 is 34.01.
| Comstock | Precious Metals | S&P 500 |
|---|---|---|
| 380.31 | 4.64 | 3.09 |
Comstock is currently trading at a P/S of 380.31. The P/S for the Precious Metals industry is 4.64 and the P/S for the S&P 500 is 3.09.
| Comstock | Precious Metals | S&P 500 |
|---|---|---|
| 2.76 | 2.19 | 4.58 |
Comstock is currently trading at a P/B of 2.76. The P/B for the Precious Metals industry is 2.19 and the P/B for the S&P 500 is 4.58.
Return on Invested Capital (ROIC)
| Comstock | Precious Metals | S&P 500 |
|---|---|---|
| 32.26% | 9.20% | 8.6% |
Comstock ROIC is currently 32.26% in comparison to 9.20% for the Precious Metals industry and 8.6% for the S&P 500.
| Comstock | Precious Metals | S&P 500 |
|---|---|---|
| 134.62% | 24.73% | 17.14% |
The YTD performance for Comstock is 134.62%. The Precious Metals industry has a YTD performance of 24.73% in comparison to the YTD S&P 500 performance of 17.14%.
Recent Financial Results
- Adjusted net income of $55M in Q2 2021
- Production comprised of 98% natural gas (8% higher than Q1 2021 and 6% than Q2 2020)
- Revenues reported of $325M, 40% higher than Q2 2020
- EBITDA reported of $251M, 55% higher than Q2 2020
- Operating cash flow of $196M or $0.71 per diluted share
- Q2 2021 capital spending of $172M
- Free-cash-flow reported of $20 million (total FCF for 2021 of $53M)
- Refinanced 9.75% notes with new 8.5 year 5.875% senior notes (reduced annual interest payments by $28M)
Stock Price Target: $5.85
Company Overview
Comstock Mining engages in the exploration and development of mineral properties in Nevada. The company primarily mines for gold, silver, lithium, nickel, cobalt, and mercury ores. It operates in two segments: mining and real estate.
The mining segment of the company controls over 9,000 acres of mining claims and parcels (roughly 2,396 acres of patented claims and surface parcels) and nearly 7,000 acres of un-patented mining claims in the Comstock and Silver City districts. The company primarily focuses on exploring and developing properties in the Dayton resource area, as well as Occidental and Gold Hill properties (which focus on gold and silver).
The real estate segment is made up of land and real estate rental properties (to include the Gold Hill Hotel and Daney Ranch properties). The company also has collaborative agreements with Oro Industries and Mercury Clean Up, for the manufacture and deployment of mercury remediation systems (these systems focuse on processes to reclaim and remediate mercury from soils, waste, and tailings).
Additional Company Info.
Comstock is an emerging leader in sustainable mining and processing and is currently working on systems to commercialize environment-enhancing technologies for precious and strategic minerals recovery.
The company recently increased it’s investment stake in GenMat (Generative Materials, LLC) to 45% by providing an additional $15 million in seed funding. GenMat is in the process of developing a proprietary quantum operating system, focused on the discovery and development of minerals.
The company has also made investments in MCU Philippines (the first international remediation and extraction facility focused on reversing the course of environmental damage) and the LINICO Corporation, a lithium-ion battery recycling company who recently acquired a battery metal recycling facility, located in the immediate vicinity of the Tesla Gigafactory in Nevada.
The current CEO, Corrado De Gasperis, joined Comstock in April 2010.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.