American Battery Metals Corporation / Comstock Mining Inc. ABML / LODE
ABML and LODE are hype-driven EV battery-recycling penny stocks with fraud-tied management, fabricated permit claims, and a nonsensical LiNiCo deal — up to 90% downside.
Thesis
Spruce Point argues American Battery Metals Corporation (ABML) and Comstock Mining (LODE) are two penny-stock shells riding EV battery-recycling hype to a combined $1.4bn valuation they do not deserve. ABML's management — CEO Doug Cole and CRO Scott Jolcover (a Nevada brothel owner whose relative pleaded guilty to securities fraud) — has repeatedly slipped its 'fully operational by 2H 2020' timeline; a FOIA response from Fernley, NV confirms no permits have even been filed on the parcel. LODE, led by Corrado De Gasperis (10 years as CEO, $176m raised, $114m of negative FCF), is promoting a nonsensical LiNiCo transaction using LiFePO4 'patent pending' technology not used by Tesla in the U.S. Spruce Point values ABML at <$1/share (55-100% downside from $2.37) and LODE at $0.35-$0.70 on a cash multiple.
SCQA
ABML and Comstock Mining are two microcap mining shells that pivoted into EV battery recycling in Nevada near Tesla's Gigafactory, riding ESG and EV sector hype to a combined ~$1.4bn valuation.
Both management teams have fraud ties, SEC litigation, a brothel-owning CRO, and repeatedly slipped milestones; a FOIA response proves no permits have been filed on ABML's Fernley parcel despite public claims.
Strong Sell both stocks; reject the LiNiCo transaction, discount the 3-year $100m revenue model, and treat LODE as a cash shell rather than an EV recycling play.
Up to 90% downside: ABML best-case fair value <$1/share (65% downside from $2.37, possibly 100% on business failure); LODE worth $0.35-$0.70 on a cash multiple.
The three reasons
- 1
Management ties to fraud: CRO owns a brothel, relative convicted of securities fraud
- 2
FOIA shows no Fernley permits filed despite ABML's claims of being near-operational
- 3
$1.4bn valuation for pre-revenue shell implies 55-100% downside versus peer multiples
Primary demands
- Sell ABML and LODE (Strong Sell opinion)
- Scrutinize management claims on permits, partners, and market opportunity
- Reject the LiNiCo transaction narrative between ABML's CRO consulting arrangement and LODE
KPIs cited
Pattern membership
Precedents cited
- US Antimony (UAMY) — Spruce Point 2012 short that collapsed from $4.78 to $0.20
- Liquidmetal Technologies (LQMT) — Spruce Point 2012 short that collapsed to $0.10
- Barzel Industries bankruptcy 2009 (De Gasperis prior failure)
- Barry Honig / Pershing Gold pump-and-dump SEC litigation
Composition what's on the 73 slides
Slide gallery ·
Notes
Dual-target short report covering two linked Nevada microcaps (ABML and LODE) connected via the LiNiCo transaction and the Jolcover family. Signature Spruce Point features: photoshopped cover (man with '$1.4bn serious inquiries only' sign in desert), red-flag checkmark matrices, track-record table of prior shorts (UAMY, LQMT). Ben Axler credited as CIO on p.4 quote. Strong SCQA with stock-promotion narrative, FOIA-documented permit fraud, and named villains including brothel-owning CRO and securities-fraud-convicted relatives. No stake pct disclosed (short position only).