We would love to hear your thoughts about our site and services, please take our survey here.
We are red! Shows the market is rather displeased with the results. Interesting note about upfront payments for power costs as that is a strong positive if true. If I were a rival I’d be putting in a 7-8p takeover offer ASAP before the numbers start to look really good later this year. We just need to keep adding the machines and grow fast so any takeover would be done at a higher price.
Lol. It’s not a spectacular RNS. Cash is a lot lower than I expected and they had to take a loan for machines. Good that it’s gonna be paid back by June but the company simply don’t have the cash for a dividend yet or share buyback. Best hope is to continue to invest in new machines. I think fair value for Argo is around 8-9p for now. Dreams of 50p and £1 a share will remain just dreams for now. If the company continues to perform well over the coming year we should creep into double digits share price but overall I’m slightly disappointed although its a good RNS. Let’s see what the market thinks
Id rather they spent some on machines and also some of buybacks to boost the share price up to 10p. When the market start to see the value and the share price is over 20p can always re-issue those shares and essentially double its money for use on new machines. Let see what the BoD do.
Next i want to see the 2019 results to verify the costs and profitably of the business. I want to also see what the BoD are planning to improve shareholder returns whilst growing the business. I'm not gonna stick around if the BoD cant develop market confidence in this share. My preference is increase machines, further lower electricity rates, share buyback, dividend in that order.
prefer to think of profit per PH of mining power. I reckon Argo will be making around £8m annual net profit per 600 PH of mining power. This method kind of includes the impact of rising difficulty. So main goal is to get to 1200PH of mining power this year and we can be throwing off £16m a year profit. Keep growing that and once we hit 2400 PH power we can be making £32m a year and easily justify a market cap of £120-150m.
Totally wrong as you ignore the impact of difficulty. As BTC price rises difficulty will grow also. If BTC explodes to $1m per BTC Argo would be mining maybe 3-4 BTC a month due to high difficulty.
really should be trading at 10p so good to see the price catching up. Once market knows the company cash position in full year accounts i think the share price can start to move towards 15p. If i was a rival miner and i had the cash i would want to make an offer to buy Argo while its cheap.
June contract likely to go negative like the May contract. The massive increase in Saudi production during April is currently on the seas and due to smash into the shores of USA from end of this month. Tanks will will be full and prices will collapse but i think June will see the bottom for oil and then it will be a recovery into H2. I can see Brent getting back towards $50 by year end if the virus situation improves and the economy get restarted again.
Yes i wish i didnt have so much tied up in this dog of a share as so many other shares are doing very well. I have completely reduced all my expectations for this share until the BoD start to focus on shareholder returns. I agree with their current strategy of building machines and computing power but i thin in H2 some focus on share buybacks if the share price is still very low or dividends would be useful.
BTC stays this low until halving its gonna blow the market up. At least 50% of miners will be heavy loss making unless BTC can get up to $9000. But as we have seen in previous halvings BTC doesnt usually make its move till a month or so after halving. Therefore i expect a huge difficulty decrease and I suspect ARB will make very little money in June but the rewards will come from July/August onwards.
surprised by the update. BTC selling price was a lot worse than i expected probably as they got caught out by the price plunge. BTC mined i expected 330 so i was quite close. Mining costs were lower than last month so i expect one off costs from machine installations contributed to that. I think we will get back to a 50% margin or better from this month.
some news from the company. I'm fairly relaxed after that RNS. The drilling delay makes sense and good to hear favourable economics for EOR at these oil prices. I think oil has more to drop to maybe $15 but after that we should get a very good bull run starting from Q3. If the drill hits gas that will be a company maker.
few rental cases closed. Hopefully investors can see these are all likely to be closed in JKX favour. Once the NG bull market starts this company will be raking in the cash. Probably still 6-9 month away from seeing that though.
much regret buying in here. All my shares are down in the crash but i added to some of them to bring averages down and am happy holding. Here there is no feedback from Paul and we dont know if there are any delays. I did buy a small amount today as my average of 4.2p i struggle to see any time soon. New average of 2.8p and if i see that ill probably sell out unless Paul is able to convince me otherwise.
looking forward to March results. I have a feeling there may be certain one off costs associated with installing new machines and that may have skewed some of the numbers for Jan and Feb (or maybe not). March will really show what our cost base is with no/minimal new machines installed and then it will be easier to predict monthly revenue going forward. Suprisingly it looks like difficulty on average for March will only be slightly higher than Feb so we could end up mining in the region of 330 BTC and sell for an average price of £6400 ish. £ weakening will have been pretty favourable for ARB this month also.
If they use the proceeds from the Hungarian sale to launch a share buyback and only aim to buy up 3% of the total share count this would very quickly be back in the 25-30p range. There really isn't any better use of their cash at the moment especially if they manage to land the $12m claim as well. UNB must be worth at least $50m as it made £100m profit last year and this is with low gas prices. I would prefer for the UNB holding to be sold off if its not going to pay dividends to JKX any time soon and the money disbursed as a special dividend.
TXP gas sold at fixed prices or is it subject to market pricing? Looking to enter here
Seems to be a delayed response. Hash rate has dropped significantly so miners are turning off machines. This will likely continue if BTC doesn’t recover back to $7-8k so I won’t be surprised if difficulty drops 10-15% at next adjustment and then more at the next one. There isn’t much point in mining at the moment unless you are very efficient
month our cost per BTC was $4900. At todays BTC prices we are making nothing but more importantly our competitors are likely losing a quite a lot. Some will keep mining on the presumption this is a short term dip and prices will go back up. Some will turn machines off also which we are seeing as difficulty is forecast to drop a fair chunk. I have no idea what BTC will do next but March results are not going to be good.
everyone is too shocked to post today? This is falling victim to general market selling and BTC selling off.