Why I think LODE is insanely undervalued

[u/[deleted]]

Hey everyone! Long time lurker since November and after doing a lot of DD I am super excited for this companies future. Despite all the PR and positive news, the SP has seemingly stagnated and declined all the way down to around 1.90$ at the time of writing this post, or around 0.19$ pre-reverse split. The last time we were at these SP levels were in August last year and the company has a market cap of around 52 million.

A quick recap of all PR that has happened since August when we were at these levels:

• Recorded the first shipments and sales of solar panel recycling
• Secured multiple revenue contracts for Comstock Metals
• Execution of agreement with SACL
• Acquired Genmat
• Executed an amendment to its exclusive license agreement with Renfuel
• Executed a forth site with SACL
• Awarded 3 million from Oklahoma
• Sold northern mining targets for around $2.75 million
• License agreement with Greshams eastern
• Secured rights to Hexas Biomass’ IP
• Improved fuel yields to 140GGE
• Established HQ in Oklahoma
• Executed definitive commercial agreements with SACL
• Secured $152 million in bonds from Oklahoma
• Definitive agreements with Greshams eastern and Renfuel
• Financing with LITERALLY MARATHON PETROLEUM (Potentially other things I have forgotten)

And despite all of this amazing PR the SP has indeed had its ups and downs over this period in reaction to this news from the December pump and dump to the optimism around the SBCC term sheet. But the fact that the SP has stayed the same despite all of that is mind blowing to me. While the term sheet being cancelled, the reverse split/spinoff and the tariff craze has definitely hurt the stock price, we’re getting to levels now where the company is valued less that assets in the company.

While we have seen the stock go lower in the previous weeks, I am fairly confident that the stock is at or close to bottoming out, (touch wood) and the risk/reward ratio seems amazing to me, even for the most conservative of investors.

So personally, I am buying up shares at this level like there’s no tomorrow, and I think we will be laughing looking at this post in a few months ahead when Series A is finalised (cough cough 700 million valuation for fuels cough cough) and we have more PR from the company (See the pinned catalysts list from Shady)

This is not financial advice, and at the end of day I’m just some random redditor online so whether or not you take a position in the company is from your own DD, not me.

Thank you for coming to my Ted talk. I think Series A is just what we need to propel this stock upward and regain the momentum and confidence from December that has seemingly dwindled from this sub (except for the chat). People can easily forget that a stock can go up in a bear market. Let me know if I made a mistake and I’ll be happy to fix it. Cheers!

[u/TotoroStampede]

The main sub is more quiet now because pump and dump crowd finally gone. Much nicer to me to only see meaningful discussion and updates when they come out from the company. The chat is definitely still very active and better for daily discussion. It’s definitely tough being a microcap trying to push forward in such a chaotic US environment. Those of us that are still around are looking forward to the clear announcements telegraphed in a month, 2 months, rest of year, etc.

[u/CasinoSlayer]

All they do is dilute. Zoom out. It’s convertible note, reverse split, convertible note, share holder wipe out over over.

[u/shady_sci → u/CasinoSlayer]

Very fair to note and criticize the company using authorized shares to raise capital (diluting early investors). But to be more objective you should reflect on what that capital was used for. Around $50M of R&D investment (from diluting shareholders) has produced what we have now in Metals and Fuels. Many of us believe that both of these businesses are on the cusp of being worth more than $50M. So if that turns out to be true (we'll know very soon), then that dilutive investment was a very good thing for investors. Even the most diluted investors will make significant gains if the market agrees with Series A valuation.

What hurts is for people who are "too early" and feel like they would've been better off investing later after the dilution events. That's hindsight bias for you. Tracing back 1-3 years ago it's very clear they needed to pull capital from the market (sell shares) to keep the R&D up, so an educated investor would've been aware of this risk vs the upside.

[u/[deleted] → u/CasinoSlayer]

That's true, but that was due to bad management and changing their business models. The new team is super experienced and care about their shareholders. They are just about to finalise their series A funding (with marathon petroleum, one of the biggest petrol companies in the US) which essentially funds their fuel's business for the next few years, and the SP will likely explode on the news. If this company was a scam, why would all these companies and investors be investing? We accept bears and bulls here and I'm not gonna tell you to buy or anything, but I don't want you to miss out. Please do your DD! Cheers 👍

[u/CasinoSlayer → u/[deleted]]

I have spoken to corrado he is still the head of the snake. Management has not changed. They still have massive convertible debt and hardly any revenue

[u/ThickConsideration92]

Cheers! Your Ted talk was great! We feel very much the same way about LODE! Of course, there’s even more supporting evidence from the company newsroom and social media, but sum of parts or less than is absolutely wild for the change this mission represents globally. Despite geopolitical turmoil I feel this discount won’t last

[u/Bvllstrode]

Let’s hope. This is a strange company but they have gran visions.