Member Info for Hexam

The costs are $7m a month (as shown by my numbers) so it won't - and any improvements they've made to costs will be swallowed up by the increase in difficulty. I've reproduced the exact numbers in he accounts so if you have any other numbers that you feel prove something else then please share them - otherwise I prefer to put my faith in the reported accounts and what we know of since and not the odd random number that you keep throwing out.

For goodness sake. Here are the actual numbers (excluding one-offs etc.)

H1 2023 ($m)

Revenue 23.996

Less

Direct Mining Costs 13.809

Depreciation 12.047

Staff costs etc. 9.752

Interest 6.335

This adds up to a revenue of $23.996m and costs of $41.943m so a loss of £17.947m

They mined 947 BTC so the costs in H1 were $44.3k per BTC mined (or $41.2m in Q1 and $47.6m in Q2 if you do the quarterly numbers separately).

They are now mining less per month and so it is probably around $50k BTC they need to break even.

I don't know where you are getting your numbers from (or more likely how you are interpreting them) but they need $50k BTC to breakeven (or $100k post halving assuming other miners don't halt production before they do which is likely as they have the weakest balance sheet).

On a cash basis it looks much better (probably around $36k now to breakeven) but that assumes no new capital spend so no new machines and hence the position will continue to deteriorate.

Btw - my average is 34p so I'd very much welcome a move up. But it won't come from fantasy numbers.

The costs were about $7m per month in H1. You're probably forgetting about depreciation - most people do but machines cost money and they regularly need replacing - so you can't ignore it.

Typlcal johnny-come-lately ramper - doesn't understand the numbers. Or the business.

I have looked at the books. They do not make profit at 36k. In Q1 it was about $41K and Q2 is was about $47k. I think you are reading the wrong books.

Up my neck? MKS is easily one of my most profitable shares at the moment. Please tell me what elves, paper cards and the fairy on top of the tree has to do with Christianity? A few tweets from the easily offended (everything draws complaints from somebody or other) doesn't leave me petrified, just with a kind of sad despair about human nature.

In my view comparing to other religious festivals is at best disingenuous (and at worst something far more sinister) since they are not knocking the religious side just some of the silly trappings associated with Christmas.

No they don't. They probably need at least 50k to generate profit. 36k may be enough to generate cash (just) but that's not the same at all (for a start it leaves nothing to invest in any growth which is needed just to preserve revenue let alone increase it).

Apologies moodyrich, you're right but it's hard to not get drawn in sometimes when someone slings mud at you but still, I should do better. It's not a playground, although it very much feels like it at times.

Unbelievable. So if I say I have 1,000 shares plus 9,000 shares I'm not saying I have 10,000 shares just because I actually haven't said "10,000". Or if I have £30,000 of shares at 30p each then I'm not saying I have 100,000 shares? Well, I'll leave you to your (extremely literal) world as I'm quite happy in mine thank you and this is all getting really silly - again.

I think you're missing the point littletrader. It's not the difference between 2.785K and 3.000K it's that SCB is claiming he never told everyone he had 278k shares when clearly he did (by saying he made £2,785 for every penny the share price went up). Even accused me of coming up with the number. He's just been caught out - yet again - trying to attack others but just ending up wounding himself instead.

Anyway, meanwhile a good day for most shares for a change - even BOO :-)

If anybody thinks the ad is 'anti-Christian' then I'd advise not watching 'Life of Brian' over the holidays as you'll go absolutely apoplectic. Really can't see anything anti-Christian in the ad - just it knocking some of the sillier traditions and trappings of Christmas that many of us grin and bear and that have absolutely nothing to do with the religious meaning of Christmas and everything to do with the commercialisation of it. I think it's a decent ad and I get what it's trying to get across. So a thumbs up from me.

Please do as it will be close to the one where you told us yourself. I'm sure DTN will reproduce the one where you told us if you ask him nicely - assuming it hasn't be deleted though, though, though...

"I believe hexam came up with the 278k... I don't know how though."

You told us (though I though though from memory it was slightly higher).

BNS - That made me smile as it sounds exactly like me. It's only about 2% of my portfolio too despite my number of posts here but as you say most other boards are sensible and/or very quiet - but then again I'm not in many AIM stocks which is where most of the gamblers and crazies tend to hang out looking for the next 'big thing'. You're right, it's drama o'clock here :)

“Here hexam here, all that matters here is boohoo here.”

Fair enough then I presume you’ll stop dragging up old posts made on other boards and making references to other stocks when insulting people?

Good to know you’ve turned over a new leaf.

"Anyway all that matters is boohoo."

Maybe to you but some of us actually have other shares too so that we're up on some and down on others rather than being massively down on just one.

Those recommending nutmeg's post might like to look at how he behaves on the EZJ board. Exactly like those 'shorts' he is deriding so much here. Funny old game isn't it?

Cheers mountainous, you too all good here thanks.

I see now where you got your £500m figure from but you don't need to deduct £250m for the RCF drawdown as this was all paid back during the year (using the term loan and part of the equity issue). So £250m in, £250m out. The cash outflow you are looking for ignoring all the changes in financing - including the £30m costs of refinancing - is simply the free cash flow of £213m as that is exactly what that is meant to represent.

Hi mountainous,

Good to see you bouncing back from the wreck that was CINE and interesting/useful commentary on the report.

Just a couple of things though:

First you say net debt has gone down but actually it has gone up from £153m to £319m - though it has reduced since half-year which is what you may be referring to?

On the other hand cash flow is not nearly as bad as you suggest. You say they are reporting "free cash flow" as £32.1m but they don't. They report overall cash flow as this amount (after borrowings and new equity) but "free cash flow" is clearly shown throughout as an outflow of £213m (and much better than last year's £339m). FCF is always taken before financing and actually it is common to exclude interest too which they haven't and would have made it look a bit better. I'm not sure where you have got your £500m outflow from - unless you've double counted the impact of equity and borrowings?

The good thing is that they are forecasting positive FCF for FY24. The most disappointing thing for me though was that they've all but written off FY24 as far as just about everything else goes. So looks like we're going to have to be quite a bit more patient to see the recovery (assuming of course that goes to plan which is the big risk).

Otherwise the results themselves were as expected (as they'd already told us in September) so I think it's just the downbeat outlook that has caused the fall today.

So that's your supporting argument? Wow!

I was hoping for an articulate business case or other reasoning as to why the share might double in price within weeks which might throw up something I (and everybody else) had missed. The only thing I can think of is that you have some insider knowledge of a bid or something that you are illegally acting upon but a c.20p buyout looks unlikely in the extreme.

Never mind. Good luck anyway. (I would suggest though that you take a closer look at the financials and the impact that halving will have on these.)