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Summary
- Comstock Mining Inc. (NYSE:LODE) surges 200 per cent in early trade.
- It forays into the lithium-ion battery business in a big way with acquisitions, partnerships.
- LODE stocks skyrocketed nearly 500 per cent in the past six months.
American metal and mining company Comstock Mining Inc. (NYSE:LODE) was off to a great start on the indexes on Wednesday morning, gaining some 200 per cent lead in just a few hours of trading.
LODE stock traded at US$5.79 at the business close, up 157 per cent from the previous close of US$2.25 apiece.
So, why the stock has drawn such a huge response from investors, especially when almost half of the US has been reeling under a cold blitz, knocking out electricity and fuel supplies.
While this may seem almost magical for many, the answer may lie in the company’s recent acquisitions, joint ventures, and business agreements that may have provided an adrenal boost.
Should You Buy this Growth Stock?
But before delving into those details, let’s look into some other key data of the company.
In Tuesday’s trading session, some 205.3 million shares exchanged hands.
Compared to the US$2.24 apiece five days ago, this massive jump could not have been any better as a new year gift for the promoters. However, the stocks have been already in an upward trajectory this year, rising by over 450 per cent year-to-date.
In the last one year, the stock has skyrocketed by 770 per cent.
What Does Comstock Do?
Comstock, which has a market cap of US$243 million and a debt-to-equity value of 0.19, specializes in sustainable mineral development.
It has also acquired strategic assets that could swell the profits manifold in the future. It could be one of the reasons why investors have shown deep respect for the stock, demonstrated by the 10-day and 30-day volumes of 4.2 million and 12 million, respectively.
The metal and mining company recently acquired a majority stake in the battery recycling company LINICO Corporation from the Nevada-based Aqua Metals, Inc. This signaled its major shift in interest toward the lithium-ion battery business, which is to become a key driver of the future EV growth.
LiNiCo, in turn, will boost investments in Green Li-ion Pte, Ltd., mainly to acquire its patented products which would give it an exclusive right to produce lithium-ion cathodes in the US.
Furthermore, leading battery recycler, NASDAQ-listed Aqua Metals, Inc. (AQMS), has recently invested US$2 million in LiNiCo, which will give the company a 10 per cent ownership in the latter.
Last year, Comstock had also acquired a 15 per cent stake in Mercury Clean Up LLC and launched mercury remediation joint venture with the MCU Philippines Inc. in the East Asian country.
It had also acquired stakes in Pelen LLC and 100 per cent ownership of Sutro Tunnel Company.
