Member Info for Hexam

Hi Huss - yes but they've messed up as they've posted the UK results twice and not Regal's (which should be docket 1296). So can't tell much from them other than UK did quite a bit better with revenue up about 50% on November (profit distorted though by some huge adjustments/intercompany transfer under finance income/expense).

The CLSK accounts for the end off December have been published so it is the latest, most complete information available and nothing is missing as at that date. As AB said you only get a full and true picture looking at the source information not the summaries produced by third parties like Yahoo or whoever.

Whatever way you look at CLSK’s balance is far healthier than ARB’s and their operations are far more efficient.

“a lot of these idiots get their information from magazines or the internet”

I take mine from the company accounts, not sites like Yahoo that only summarise them (and not always appropriately).

Would love to look through ARBs latest accounts but of course they haven’t produced any since the half-year results. When they do they will make CLSK’s look stellar by comparison :)

"how did clsk lose 30 million from operating expenses ?"

I'm pretty sure they will look one of the better ones for the last quarter - certainly better than ARB. Oct to Dec will look very grim for all miners, not just CLSK, because of very low BTC and curtailment issues.

Looks like their cash costs per BTC mined were 'only' around $20k in the last quarter so they are most likely generating cash on their operations now, not something many can probably say.

There are plenty of stones that can be thrown at all miners (including CLSK) at the moment but in terms of just the financials CLSK look pretty good to me - relatively speaking of course as they are shocking for all miners currently!

James, personally I think it’s a close call between a D4E with significant dilution and a sale of some assets with all proceeds going to the debtors and just leaves us with ROW (and possibly UK).

I would hope both options above would see us better off than we are now but not by huge amounts.

Of course it could be one of the many other possibilities, some better, some worse. I would be very surprised if it’s a share sale though (as they’ve ruled that out) or liquidation (as there seems to be more than enough interest to avoid this).

It’s anybody’s guess though and whilst it’s still all up in the air the sp is stuck at around this level. We should find out much more though soon so I think the wait is nearly over at last!

“ If a public traded company buys CINE then they have to offer a price to buy the share”.

No, CINE have already said they are not selling the shares, they are selling the assets. If these assets (subsidiaries) sell for less than the debts attaching to them then there is nothing leftover for shareholders - other than the assets not sold.

So this is not like Morrisons.

Or - the other option is restructuring.

My only slight concern with RoW is whether the overheads allocated as part of the segmental analysis will be as low if they are actually carved out. For example they are probably only allocated around 10% of Mooky at the moment. Depends how many fixed overheads and economies of scale are impacted by a reduction in the size of the business.

@Wellington - I think you are right that the RoW is not debt free as this seems to be made pretty clear by the RNS that I think you are referring to - especially the last sentence?

"The lenders providing the DIP financing have also agreed to provide funding through the DIP financing for the purchase by a newly incorporated Group company of the outstanding commitments under the Rest of World facility (being the facility advanced to fund the Group's operations in Poland, Romania, Hungary, the Czech Republic, Bulgaria, Slovakia and Israel). This debt transfer is expected to occur in the near term, following which the newly incorporated Group company will be the sole lender under the Rest of World facility."

I assume there is more up to date info somewhere but hard to know where to look. The debt is less than $300m so not massive and RoW profits (PBT) were between $50m and $100m pre-covid so was punching above its weight within the group.

I know others don't like the prospect but personally I think it would be quite a win if we get left with just RoW (debt-free or even with its existing debt). Just my view though and perhaps others are right to hope for (and believe in) much more.

HNS - Disagree. Sorry. Hope you're right though!

"Thanks for your opinion! Time for you to move on then!"

Fair enough but rather than that pithy response is there anything he said that is actually untrue? The only (minor) things I think are questionable are that I don't think any of the notes are convertible and PW probably didn't jump but was pushed.

One of the biggest signs that a company is more fluff than substance is that the rampers come up with so little by way of argument to counter any criticism. So would be good to actually hear a credible bull case in reply to Rookie's bearish view.

"Once a buyer is anounced... stock price will shoot up to match the anounced price per share...."

That's assuming that price per share is higher than the current one. In my view a share buyout is probably the worst possible option for us as it is the most likely one to wipe us out - which is perhaps why it was actually ruled out as an option by CINE as that obviously wouldn't be in Mooky's interest with his family's 20% holding.

Any share buyout means taking on $6bn debt so even a nominal dollar purchase seems expensive as it is effectively still a $6bn purchase.

Personally I believe the options they do say they are pursuing give us the best prospects. Either a debt for equity that may leave us enough of a stake to benefit or a sale of assets (subsidiaries) that may at least leave us something even if it is only RoW.

Dreams of a company swooping in with a 20p (or whatever) per share offer are just that I'm afraid given the debt and what the company have already said themselves.

"I don't see how you can execute 'smart growth' when the stuff you're mining drops 75%."

A bit of risk mitigation would have helped. It was a ballsy, gambling all-in strategy that was either going to end in moon or bust - unfortunately it was the latter (before the last minute rescue).

The consistently poor mining efficiency and lack of PPA are operational things that also didn't help.

"Do you think the market will see the whole Cine business as worth as much as that?"

Very possibly as compares well with pre-pandemic valuations especially with lower debt following restructuring.

"do you also need to take account of the $800m rights offering somewhere"

I've simply assumed the $4bn that was suggested was after all restructuring including the $800m offering (which looks more like a placing to me as it was described as not being open to us).

All these numbers are just speculation at the moment though - the main point is that a mooted $4bn valuation doesn't necessarily mean we are suddenly all rich as everything hinges on the the level of pain we have to suffer to get there plus of course they may end up still going down the sale route anyway (which could be similar, better or worse for us).

So in short still way too many unknowns, for me anyway, to be unduly confident or fearful of how it's all going to end for us. Just remain hopeful.

“PW doesn’t even have the decency to do that.”

To be fair I don’t think he had much choice in the matter. Galaxy stepped in to save the company and that would have come with conditions and we’re probably just seeing some of those conditions playing out already.

I really don’t think a few strangers on a BB have made any difference - it’s not us who have forced him out.

The $4bn sounds reasonable but the question remains how much of that would we still own as that valuation comes after the D4E and the “$800m”offering only open to existing lenders that the articles also mention. At $4bn though it only has to be more than 1.5% for us to be in a better position than now.

"That leaves the q4’s………… when are they due ?"

They have consistently come out at the end of April for the last few years but with the CFO gone who knows if they'll stick to that?

In terms of financials though there probably won't be much in there that we don't already know or can work out. They have already told us the end of year debt and cash position and from the monthly information and asset sales we know the annual loss will be huge - probably around $150m. It could be a lot more if they decide to throw the kitchen sink at it, as companies often do to get all the bad news out in one go.

The interesting part will be any information on the hosting agreement as it came too late to have a meaningful impact on 2022 financials. Given the further moves away from transparency though I don't hold out too much hope or share your confidence that we'll get Q1 financials (as they withheld Q3 numbers and they are only obliged to issue accounts every six months).

Still, keeping us all in the dark gives even more opportunity for idle speculation, rumour and FOMO - and hence for trading opportunities.

168 is better than 147 but still awful. Just a little less awful than last month which had the big storm. If ARB were as efficient as BITF they’d be mining around 270. If they were as efficient as they normally were in 2022 it would still be over 200.

Hopefully the poor figures are due to disruption from the handover of Helios to Galaxy - of which they did hint there might be some.

As to removing the ‘mining profit’ figure this is disappointing but not that surprising as it would effectively disclose the cost of the hosting agreement. This is because the hosting costs now form part of the direct mining costs so they won’t just include power costs anymore. We may be in the dark now until September on whether the agreement is good, bad or indifferent compared to the previous, non-hosted model.

Disappointing too that there is no update on what might have caused the recent uplift in sp so maybe it was just misplaced FOMO after all?

One bit of good news is that, understandably, they’ve dismissed the lawsuit as being frivolous.

On the whole though the only hope against a drop in sp today is that historically the mining updates haven’t tended to influence the sp either way.

You were looking at ARBKF though, which is typically all over the place. ARBK, the one to focus on, has been down a bit all day (but still ahead of UK at the moment).

"I'M sure we will get ours soon, and it would certainly help to sweeten any BID ATM"

Why? They will show losses (around $750m for the year and at least $300m for Q4).

So probably better they don't come out but I don't think it matters anyway as any potential bidder will know enough about them anyway and it looks like we are very much in the end game already.

I don't think the CP results have any relevance either as they have also come too late in the day and besides the profits they are showing appear to be generated by their other businesses rather than by the cinema part.