Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Straight from the source:
listingcenter.nasdaq.com/assets/initialguide.pdf
Listing Timeline
While it generally takes four to six weeks to process a listing application, this time frame is variable and may be shortened considerably, if the application raises no issues and the company responds quickly to Staff comments.
Week 1. Company submits application for listing and Nasdaq Listing Qualifications Staff begins its review. Weeks 2-3. Staff completes its preliminary review and prepares comment letter.
Weeks 3-4. Company addresses any issues raised by Staff.
Weeks 5-6. Staff completes their review and company is approved for listing.
We are now in week 3. So could this be any week now?
A few commitments have been delayed. Once confirmed, it will reinstate trust that we're on track. It's been a dire few months worth of news and the monthly results are as expected. There have been no ground breaking announcements following China exodus. PW knows Texas is another 6 months away and NASDAQ application was purposely delayed to align to this. No point floating without momentum. I'm sure he wants to IPO with solid, tangible milestones (180 day lockup period no coincidence). Not much to do without the infrastructure to install new equipment.
Also, Hut 8 struggled vs the NASDAQ miners prior to listing. In fact, Hut 8 was the most shorted miner of all. There was simply no volume and it was continuously held back (confirmed by Sue Ennis in interviews back in the day on why they are keen to list NASDAQ - less shorting). Now look at the daily volume since NASDAQ. Crazy!
We can only hope Argo will experience the same fundamental shift in uptake.
A few random thoughts. With respect to comparative valuation, my eyes are firmly focused on Hut 8 (also green, also recently NASDAQ, also similar growth momentum but slightly different timings).
Let's say NASDAQ happens October (which is broadly realistic):
Argo 1.7EH (owned)
Hut 8 1.2EH (owned) + 1.5EH(contracted) = 2.7EH. We'll see if they continue to contract above and beyond once machines are installed.d
Hut 8 is increasing its capacity to 200MW in 2022, eg 6EH. Argo is increasing its capacity to min. 200MW in 2022, eg 6EH.
In terms of BTC production we should be en par, so key differentiator is the balance sheet which is currently c2.5x, but pending timing of miner production ugrades will of course change. If Hut 8 does well, so will Argo. I know it's basic, but somehow they are on similar paths.
A little reminder to myself when I get impatient:
1.7EH by October means monthly BTC production of min 250 (conservative!).
1900 BTC mined by end of September + 250*3 (4th quarter) = 750 + 1900 = 2850.
2850 x 50k BTC * PE 10 = £1.4bn / 450m shares (WORST CASE dilution from NASDAQ) = $3 per share.
If BTC goes to 100k then $6, $150k then $7.5, etc.
This all EXCLUDES Texas.
If we fill Texas by 1/6th (of 200MW capability) by end of Q1 with a mere 1EH (of 6EH) that's another 60% production boost.
This means by end of Q121 we are looking at 2850 + 400*3 (1st quarter) = 1200 = 4000.
4000 x 50k BTC * PE 10 = £2bn / 450m shares (WORST CASE dilution from NASDAQ) = $4.5 per share.
If BTC goes to 100k then $9, $150k then $13.5, etc.
All of above is purely headline capacity. Not underlying margin where Argo has an advantage.
Yep, I'm in ?? mode. And this is conservative. Time to load up is now before this kicks into gear.
Interesting that no one is talking about the confirmation that rigs are still on time to be installed this month and next. £1.7PH by end of October. After the issues re: Core Scientific cancellation, I suppose this will be a nice little boost in a few weeks.
Ah, here we go:
https://www.youtube.com/watch?v=Wg8UKdY-54Y