The Conversation (0)
Comstock Mining Inc. (NYSEMKT:LODE) was mentioned by Heiko Ihle, managing director at H.C. Wainwright & Co., in his interview with The Gold Report about investors needing to focus on just three criteria: jurisdiction, management and asset viability.
As quoted in the interview:
TGR: Any other gold names?
HI: Another one that I follow is Comstock Mining Inc. (LODE:NYSE.MKT), with a price target of $2.50/share based on a price deck of $1,200/oz gold and $17.50/oz silver. (Editor’s note: Mr. Ihle adds that Comstock is processing above 1 g/t at Lucerne.)
Our target is based on 2,200 tons grading 0.29 grams per ton (0.29 g/t) gold from the Lucerne mine in Nevada at an average recovery of 65%. That should amount to 41,000 ounces (41 Koz) gold. Add in some silver and the total is roughly 45 Koz gold equivalent from Lucerne in 2015.
There may be some production from Dayton late in the year but we haven’t factored any Dayton production into our model. Dayton production should grow over the course of 2016 until it reaches full production, probably in 2017. All together that leads us to a net present value calculation of about $223M for the firm as a whole.