Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
BLOK sold all their Argo shares...
https://amplifyetfs.com/wp-content/uploads/2022/11/BLOK-Chain_Monthly_2022-November.pdf
Looks like the Bonds can be repaid next Nov 23...
I guess markets are pricing in the fact Argo is more likely to go bankrupt.
I had to check end of year results:
In November 2021, the Group issued an unsecured 5 year bond with an interest rate of 8.75%. The directors do not consider that there is any variance between the fair value of the borrowings and the carrying amount. The bonds will mature on 30 November 2026. The bonds may be redeemed for cash in whole or in part at any time at the Group's option (i) on or after 30 November 2023 and prior to 30 November 2024, at a price equal to 102% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after 30 November 30 and prior to 30 November 2025, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iii) on or after November 30, 2025 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption.
The Group may redeem the bonds, in whole, but not in part, at any time at its option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon
the occurrence of certain change of control events. The bond is listed on the Nasdaq Global Select Market under the symbol ARBKL.
I'm expecting it to go down to 1p, I'm hoping it goes back to 20p though,
I've been a long term holder, since 2019, So I have faith in the project, Just no trust in management atm.
Argo hasn't given a reason to continue trusting it atm, and with the recent market volatility, I think it's only a matter of time before Loans are called back,
NASDAQ requires companies to have more than $1 share price,
I'm keeping an eye on CORZ as they're in a similar position,
But what are the options for a company to stay on the NASDAQ when given the 30-day warning, that their share price is below $1.
I am having similar thoughts on management,
Starting to believe they're not in the game anymore, and looking to leave...
We shall see what happens in the next RNS,
The company only has 3-6 months to survive In my opinion.
My RNS Guesses:
BTC Mined: 250
BTC Sold: 300 @ 20,000 * ( Hopefully Derivatives Trader sold Puts at 20k, Otherwise they're useless )
I think they're trying to decrease debts, and given up on getting PPA without a investor Prospect.
The Debt Restructuring needs to happen this month, as Argo can not stay below $1 for too long.
Otherwise, NASDAQ rules come into play,
Argo needs to show the market they can survive the next few months without a capital injection, with better cash flow management.
Currently, $ARBKL are trading at $1.50, The Senior Notes give 8.75% yield on $25.00, The current yield is 100%, Showing how badly the market believes Argo cannot repay loans.
With the FTX Fiasco in full show,
It's not looking too good for Argo, and it's mismanagement of Cashflow....
I hope to read the Q3 results to understand the companies finances deeper and make a decision whether to continue supporting the miner or not.
It's looking very Shaky right now,
based on RNS, The Mining break even Margin is around $15k,
I guess it's a good thing Argo Sold their HODL last RNS, and paid off the BTC backed loan.
Expecting Bitcoin Miners to go bankrupt within the next 2months if this range persists.
Valuing Argo at Net Asset Value ~$40M to $100M,
Rather than 5x, 10x, 20x P/E Ratio
Might do Argo some good,
Management was too excited by BTC Price that they forgot basic risk management.
Argo will end this year at a Loss,
But they will survive, barely, for 2023 growth.
Over the last two RNS, they've somewhat raised $18M,
That should be enough for a 6 Month PPA, at a $0.05...
we Will see what they say next week, This week is a big week for Interest rates, if BTC goes to $15k, we could see heavy selling pressure.
Look at the brightside....
We get to buy shares cheaper than when Peter wall bought shares 5 months ago..... jk jk jk
25-May-22 23-May-22 Buy Alex Appleton 49.74 GBX 39,415 39,415
25-May-22 23-May-22 Exercise of option Peter Wall 7.00 GBX 430,000 1,546,000
25-May-22 19-May-22 Buy Sarah Gow 49.20 GBX 20,000 2,760,000
25-May-22 19-May-22 Buy Maria Perrella 0.65 USD 60,000 60,000
Fri, 7th Oct 2022 RNS - Argo sold 3,400 new in box Bitmain S19J Pro machines, representing ~340 PH/s of total hashrate capacity, for cash proceeds of £6.0 million ($6.8 million). After accounting for this sale, the Company expects to achieve a total hashrate capacity of 2.9 EH/s by the end of October 2022.
Mon, 31st Oct 2022 RNS - Argo sold 3,843 new-in-box Bitmain S19J Pro machines, representing ~384 PH/s of total hashrate capacity, for cash proceeds of ~£4.8 million ($5.6 million). These machines are the last batch of the original Bitmain order scheduled for installation in October 2022. As a result, the Company's total hashrate capacity remains at 2.5 EH/s.
Argo sold 7243 Machines in total from the last two RNS, So they have raised $12.4M Cash. Selling machines at 20% is bad management,
But what do they plan to use the $12.4M cash for?
Based on the H1 interim results, I'm assuming the monthly Direct costs are $6M,
So This cash will last November - December. ... If that....
I guess the Management will sell another 3k Machines each month for $6M,
They likely hope Bitcoin Price to rise to $25-30k by year end, (Forecasted),
or Energy prices to ease (Currently $0.08, They require $0.07 for gross profit breakevens).
A lot of wishful thinking from management.
Although I can see BTC rising to $25k, I don't see Energy prices easing, Continuously Selling Machines will give Argo less hash share,
Also, Intel Deal in Jan, Epic deal wasteful cash and Despite the low share prices, No member of Argo is buying shares, A clear indicator that the company is tending towards a sinking ship scenario,
I will continue to buy and sell , but as a LTH I'm pretty sad to watch how management have ruined a golden opportunity with poor foresight and management.