Comstock Mining: Producing Gold In Exciting District

Comstock Mining (LODE) was just invited to ring the opening bell on the New York Stock Exchange to commemorate one year of gold production in the historic Comstock Mining District.  Comstock Mining has the who's who list of shareholders and mutual funds such as U.S. Global Investors, Gabelli Funds and Century Management.  Comstock Mining is well capitalized on the premier New York Stock Exchange and increasing institutional support during a bear market in precious metals.  This outperformance during the hard times may forecast its emerging leadership in the gold mining sector as they may be able to sustain increasing production and resource growth with lower cash costs.  Smart investors may just be beginning to realize the potential and growth of this historic mining district which built The West.  Comstock Mining has delineated over 3 million ounces of gold and this is just from a tiny portion of the district.  There are very few companies growing production, paying down debts and reducing cash costs in the entire industry.  Comstock Mining has great potential to grow to 40k gold ounces then to 150k ounces with the addition of the Dayton Mine.  Not only should the company be able to produce a potential cash flow, but these funds could possibly sustain major resource growth without having to continue to dilute shareholders by relying solely on the capital markets.  Recent results show a major increase in production growth both gold and silver.  The company believes the production figures will increase significantly over the next few months.  Comstock with great infrastructure has lower capital costs that many of the majors.  Cash flow and potential earnings over the next few quarters can make the company self sustainable to drive further exploration and resource growth.

 

Disclosure: Author is long Comstock Mining and the company is a sponsor on my website.