Member Info for HarChris

Chaebol, do those all in mined bitcoin costs include everything before taxation i.e the break even BTC price with anything above that tipping those miners into profit?

It's not how the world works, it's how bitcoin miners work! Your average listed company isn't forced to move into a new industry because the one they are in isn't viable and if it were that wouldn't be a good thing!

I can't speak for others but personally I accept that things change in a fast growing business like this. We've seen from other companies entering the downstream space that margins are tight and capex high so I'm not surprised given the landscape that all resources are being focused at expanding production on the mining side through FY 2024. Still, there was discussion of the downstream in the full year results which shows there is still an aim to develop it when the time is right.

‘Don't forget clsk were an energy company before mining’

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I know that but look at the return since, it’s not usually a positive to have to pivot to an entirely different sector. If you were holding from the energy days you’d be angry by the returns…

Saying they’ll just move into a different industry is not exactly much of an investment case.

I don't get how you have come to the conclusion that 106p / £300m is the market rejecting Avacta yet 300p/ £830m would mean the market thinks it works? Would you mind explaining?

I would hazard a guess that if the share price was 50p you'd be saying something like 'well if the share price was 150p it would mean the market thinks it works'.

I think you've gone and answered your own question throughout your last post starting with 'if its (sic) as good as you imply, then why hasn't the company been bought already?' and later getting to 'BP clearly obviously won't move until unequivocal data is provided'

So there you have it, it is reasonable to say that the data is remarkable yet not unequivocally proven as of yet which means there's an enormous opportunity for those willing to take on the risk (albeit far smaller than your average life sciences company at this stage).

Sure but essentially you're agreeing then that bitcoin mining isn't an investable sector? And you're not even arguing here so much that they'll diversify into new business opportunities within the digital assets space but instead in something different like energy?

'HC, the miners that will survive the next 12 to 24 months, will diversify. Mining bitcoin will not be their only craft. Blockchain has huge potential, plus there is a list of industries they, they could get involved with, power generation is the first that comes to mind.'

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The same was being said across the space in 2020 but as far as I am aware three years on there's been no material change on this front? Argo was top of the list of miners that spoke of diversification and becoming a 'leading digital assets company 'but the closest they came was with Argo Labs and god knows what added value that ever provided.

Have any of the NA miners managed any form of meaningful diversification away from bitcoin mining yet?

It's tough to say what mining costs will be in the future. Every four or five years all machines will need replacing and they will have to be priced somewhat competitively by the manufacturers in order to sell so there will always be profits to be made for those with a healthy enough balance sheet.

The industry is not viable though with the way the halving works and the rewards for miners continually decreasing over time. Sure there will be big winners but less an investable sector and more a casino.

Sorry that was meant to say as long as graphite demand keeps growing then it's absolutely inevitable that the graphite price goes higher given time - the likes of Syrah being unable to operate profitability and curtailing production is only going to add to any growing graphite deficit which will soon feed through to higher prices.

And it’s worth pointing out that if the majority of large producers can’t profit at such low prices then it’s inevitable they’ll rise as long as graphite demand remains strong.

What we know for sure is that TGR is already the lowest cost listed producer by a country mile. You only have to compare with the largest listed producer Syrah that should be benefitting from a far greater scale than TGR yet has had to pause operations due to the depressed graphite market to see this.

What happens next is either:

(i) graphite prices remain low - this will leave sentiment depressed across the space but TGR will be quietly growing their production 10-fold to ~25K tonnes per annum

(ii) graphite prices start rebounding - sentiment across the space recovers and so does TGR's profit margins and access to competitive financing which greatly accelerates expansion.

(ii) is better than (i) but TGR will be successful no matter the backdrop.

Oh and the big one I forgot - new CEO.

In my opinion the share price is depressed for some very simple reasons...

This is AIM and whilst the last update was brilliant there was a sense of that being the last update for a little while. I think we'll tread water for a little while until there's enough conspiring together to give us the momentum for a big move north (~50%) - something like West Kenya drilling results, strong Q3 results, the announcement of an increasing dividend alongside a gold price on the rise (even if from a slightly lower base).

As long as the fundamentals remain so positive the move and share price range we're expecting will happen.

My thoughts are that the 'concerns' are so stupid that they should be totally ignored.

These same shareholders were oh so very concerned about the liquidity issue and the potential of a distressed discounted placing a week ago but when the BOD put that to bed they found something else to focus their attention on.

Gamblers and idiots I guess. Lose and they look to blame someone, win and they never acknowledge that they just copied someone else’s trades.

I think you’re a bit paranoid and imagining things that simply aren’t happening but we’re all entitled to our opinions if they fall within LSE’s rules so best of luck to you!

A fortune to be made for you giz with that understanding of market dynamics - hopefully share some of your profits with the little people (us!).

Wow 22% up whilst RiotMara are down 5% - well deserved for sticking to your guns 👍

Are you going to keep reposting this every few hours?