"What it's demonstrating to the institutional investors, who are increasing their holdings in this stock, is that it may be one of the fastest-growing producers in the entire industry on track to go from 20–200 Koz/year. The management of the company continues to seek guidance and build institutional shareholders. Now it's on the verge of generating free cash flow in the coming quarters because it's increasing production. It went from 20 Koz to 40 Koz. This brings its average costs down, generating greater profit. I've been to the property. This is a historic district, the Comstock district, which in the 1800s produced billions of dollars worth of gold and silver, largely underexplored by modern methods. It's one of the few companies that's actually able to generate cash flow, even in a lower cost environment, as most of the ounces are near surface and heap-leach amenable."
Comstock is a junior that is actually producing, with good margins. The company could soon generate positive earnings per share possibly, in Q1/14. This cash flow and sustainability could allow Comstock to explore and add to its massive reserves without diluting current shareholders. Comstock is literally just scratching the surface right now. Its geological team is really excited about exploration, as there are numerous high-grade bonanza targets, most notably the Chute zone. The next few quarters could be huge for this company, as it should achieve positive earnings. Do not be surprised to see majors looking at the company's operations, should the gold price turn higher. Comstock has been flat for two years despite major fundamental progress. To me, this is a screaming buy. The stock is way undervalued and that is why some smart contrarian funds like Century Management have bought millions of shares. Follow the savvy value funds."
In a short period Comstock built a several million ounce gold equivalent resource. Its goal for 2013 is to produce about 20,000 oz gold. This requires only one quarter of the operations capacity. I was most pleased on the visit to see the exploration down the valley and the potential to build a much larger resource and quadruple production in the near future. Nevada is a great place to be, from a political perspective and as a jurisdiction friendly to mining."