Comstock Mining LODE Stock News

Comstock Mining Inc (NYSEAMERICAN: LODE) is rocketing in the market this morning, nearly doubling in value in the premarket hours. The gains come after the company released its quarterly financial a strategic results. Here’s what’s going on:

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LODE Stock Heads Up On Positive Results

In a press release issued this morning, Comstock Mining provided its quarterly report, and updated investors with regard to its first mercury remediation system.

Operational Highlights

In terms of financial performance, LODE did overwhelmingly well. First and foremost, the company extinguished its current Senior Secured Debenture from a combination of $0.9 million in accelerated cash proceeds from Tonogold as well as new unsecured promissory notes with favorable terms.

Moreover, the company’s investments in Tonogold Resources increased $1.6 million in value, driving positive net income for the quarter. At the same time, investment in Mercury Clean Up LLC increased $1.75 million and the company extended agreements for its non-mining properties in Silver Springs for a total proceeds of $10.1 million. Closing on the deal is expected this quarter.

Financial Highlights

From a financial standpoint, LODE did overwhelmingly well in the quarter. Operating costs improved by 15.9% with interest expenses dropping nearly 50%.

Importantly, net income came in at $1.3 million, working out to $0.04 per share. This was a big swing to profitability, especially considering that the company produced a loss of $0.13 per share in the last quarter.

In a statement, Mr. Corrado DeGasperis, Executive Chairman and CEO at LODE, had the following to offer:

We have grown and strengthened our balance sheet, extinguished our secured debt, and deployed and installed the first MCU – Comstock system as we prepare for material testing within the boundaries of the Carson River Mercury Superfund Site (“CRMSS”). We have also reserved shipping containers as we prepare to ship our first international unit to the Philippines.

Final Thoughts

The news released by Comstock Mining proved to be overwhelmingly positive. Not only has the company restructured key debts, setting a strong financial foundation in place, it made a huge swing to profitability in what was a very rough quarter across the board.

All in all, with the results released by the company this morning, LODE is a stock to watch closely.

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