What's in the Cards for Comstock Mining's (LODE) Q2 Earnings?

Comstock Mining, Inc. LODE is scheduled to report second-quarter 2021 results on Aug 10, before the market opens.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $0.07 million, suggesting growth of 40% from the prior-year quarter. The consensus mark for earnings stands at 1 cent per share, indicating a decline of 80% from the 5 cents reported in the year-ago quarter. The earnings estimate has remained unchanged over the past 30 days.

Q1 Results

Comstock Mining reported earnings per share of 2 cents per share against a loss of 5 cents in the prior-year quarter. The figure compared favorably with the Zacks Consensus Estimate of a loss of 4 cents per share. The company has a trailing four-quarter earnings surprise of 97.6%, on average.

Comstock Mining, Inc. Price and EPS Surprise

Comstock Mining, Inc. Price and EPS SurpriseComstock Mining, Inc. Price and EPS Surprise
Comstock Mining, Inc. Price and EPS Surprise

Comstock Mining, Inc. price-eps-surprise | Comstock Mining, Inc. Quote

Factors to Note

The company’s mining segment comprises mining, mine development, processing, and environmental and reclamation operations, related mineral properties, water rights, properties, plant and equipment, investments in Tonogold and Pelen, and general and administrative expenses. The company ceased mining in 2015 and has concluded processing material from its leach pad in December 2016. Thus, no production or mining revenues will be reported in the company’s second-quarter results.

The real estate segment consists of real estate rental operations, including the Daney Ranch and Gold Hill Hotel, and related properties and equipment, as well as assets held for sale to Sierra Springs Opportunity Fund, Inc. (“SSOF”), and investments in and advances to SSOF. Real estate revenues for the second quarter might have witnessed growth, courtesy of an increase from the Daney Ranch lease signed Sep 1, 2020. This is likely to be partly offset by decrease in rentals of its metallurgical labs at the company's processing site and a decreased rental rate with the Gold Hill Hotel lessees.

Real estate costs and expenses for the to-be-reported quarter are likely to have witnessed year-over-year escalation due to higher depreciation expenses associated with the Gold Hill Hotel and Daney Ranch properties, which were classified as assets held for sale prior to September 2020. With certain assets becoming fully depreciated, mining costs and expenses are likely to have been low. These costs include depreciation expense on temporarily idled mining equipment, processing facilities and heap leach pads. General and administrative expenses may have been higher primarily due to higher professional service and directors' fees and performance-based stock compensation expense. On Mar 5, 2021, the company extinguished all of its debt obligations totaling $3.6 million, leading to expected saving of more than $0.3 million in annual interest expenses. This might have contributed to earnings in the second quarter as well. All of these factors might get reflected in the company’s to-be-reported quarter results.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Comstock Mining this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Comstock Mining is 0.00%.

Zacks Rank: The company currently has a Zacks Rank #3.

Price Performance

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Zacks Investment Research

Image Source: Zacks Investment Research

Comstock Mining’s shares have soared 258.8% in the past year against the industry’s decline of 22%.

Stocks Poised to Beat Estimates

Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post earnings beat this quarter:

Nutrien Ltd. NTR has an Earnings ESP of +1.44% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GrowGeneration Corp. GRWG has an Earnings ESP of +3.45% and a Zacks Rank of 2, currently.

Wheaton Precious Metals Corp. WPM has a Zacks Rank #3 and an Earnings ESP of +1.18%, at present.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Comstock Mining, Inc. (LODE) : Free Stock Analysis Report

Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report

Nutrien Ltd. (NTR) : Free Stock Analysis Report

GrowGeneration Corp. (GRWG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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