UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
_____________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2022
Commission File Number: 001-40816
_____________________
Argo Blockchain plc
(Translation of registrant’s name into English)
_____________________
9th Floor
16 Great Queen Street
London WC2B 5DG
England
(Address of principal executive office)
_____________________
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form
40-F ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
Exhibit No.
1
|
Description
1st
Quarter Results 2022 dated 17 May 2022
|
Press Release
17 May
2022
Argo Blockchain PLC
("Argo"
or "the Company")
Q1 2022 Results (Unaudited)
Argo
Blockchain plc (LSE: ARB; NASDAQ: ARBK), a global leader in
cryptocurrency mining, is pleased to announce its unaudited
financial results for the quarter ended 31 March 2022. All $
amounts are in United States Dollars ("USD") and all £ amounts
are in British Pounds ("GBP"), unless otherwise
stated.
●
Revenue of $19.5 million (£14.9 million) (+9%
Y/Y)
●
Produced net income of $2.1 million
(£1.6 million) and $19.1 million of Adj. EBITDA
(£14.5 million of
Adj. EBITDA) (+24% Y/Y)
●
Mined 470 Bitcoin and Bitcoin Equivalents in Q1 2022 (+21%
Y/Y)
●
“HODL” of 2,700 Bitcoin and Bitcoin Equivalents as of
31 March 2022
Peter
Wall, Chief Executive of Argo, said: "During the first quarter, our
team has focused on working towards the completion of Helios Phase
1, while continuing to deliver strong performance from our existing
fleet. To be a successful miner you need three components - power,
miners, and capital. We already have a strong foundation for growth
at Helios with our access to 800 MW of power capacity. This
quarter, we improved our access to capital by establishing a
financing relationship with NYDIG and strengthened our access to
miners through our supply agreement with Intel for their new
Blockscale ASIC chips. This will allow us to build custom-designed
mining machines specifically to Argo’s specifications and
built for use in immersion-cooling technology.
“As
mining operations begin this month at Helios, we are excited to be
delivering on our commitment to shareholders to build a
best-in-class Bitcoin mining facility.”
Q1 2022 Financial Performance
●
The Company
generated $19.5 million (£14.9 million) of revenue in the
quarter, a 9% increase over the same period in 2021. This increase
was primarily driven by Argo’s growth in hash rate throughout
2021 and partially offset by lower Bitcoin prices in Q1
2022.
●
The Company
produced net income of $2.1 million
(£1.6 million).
●
Argo achieved Adj.
EBITDA of $19.1 million
(£14.5 million), an increase of 24% over the same
period in 2021.
●
Total Bitcoin mined
in the quarter increased by 21% to 470 Bitcoin and Bitcoin
Equivalents (together, “BTC”), compared to 387 BTC
mined in the same period in 2021.
●
The Company’s
mining margin for the first quarter was 76%, with an average direct
cost per BTC mined of $9,779 (£7,448).
●
The Company ended
the quarter with 2,700 BTC in its HODL; this, combined with a cash
balance of $11.9 million (£9.1 million), provides the Company
with ample liquidity.
Q1 2022 and Recent Operational Highlights
●
The Helios facility
was energized and commenced Bitcoin mining activities on 5 May
2022. The Company held a grand opening ceremony to commemorate the
event with elected officials, partners, suppliers, and members of
the local community in attendance.
●
The Company still
expects to increase its hashrate to 5.5 EH/s by the end of 2022,
subject to machine deliveries.
●
In March 2022, the
Company signed an agreement to swap approximately 10,000 S19 mining
machines currently hosted at Core Scientific facilities for new
S19J Pro mining machines to be delivered to the Helios facility. To
mitigate any temporary loss of hashrate for Argo, the swap of
miners will occur in stages as the machines are delivered, which
has already commenced and will continue through July 2022. Upon
completion of this mining machine swap, Argo will no longer have
any hosted machines and will have completed its strategic pivot
away from hosting to a fully vertically-integrated
model.
●
In January 2022,
the Company formally launched Argo Labs, its in-house innovation
arm established to identify opportunities within the disruptive and
innovative sectors of the cryptocurrency ecosystem while supporting
the decentralization of various blockchain protocols. Argo Labs is
primarily focused on two key areas: network participation and
strategic diversification through the efficient deployment of a
portion of the Company's crypto treasury assets. Argo has allocated
approximately 10% of the Company's crypto assets in its "HODL" to
Argo Labs, which gives the Company the opportunity to integrate cryptocurrencies into
existing financial infrastructure and gain exposure to the wider
digital asset ecosystem.
Q1 2022 and Recent Financing Highlights
●
Argo entered into
two significant non-dilutive debt financing arrangements with New
York Digital Investment Group LLC
(“NYDIG”).
●
In March 2022, Argo
signed loan agreements to borrow $26.7 million (£20.2 million
at the 3 March 2022 exchange rate), with the proceeds to be used
for the continued build out of Helios Phase 1. Under these loan
agreements, the borrowings are secured against certain electrical
infrastructure at Helios.
●
In May 2022, Argo
signed additional loan agreements to borrow up to $70.6 million
(£56.3 million at the 3 May 2022 exchange rate), subject to
customary drawdown conditions, with the proceeds to be used for the
continued build out of Helios Phase 1. Under these loan agreements,
the borrowings are secured against certain Bitcoin mining machines
installed at Helios.
Q1 2022 and Recent Personnel Updates
●
The Company
strengthened its executive team by appointing Seif El-Bakly as
Chief Operating Officer and Alana Marks as Vice President of People
and Culture.
●
Justin Nolan, who
previously held the role of Vice President of Business Development,
was promoted to the role of Chief Growth Officer.
●
The Company
appointed Raghav Chopra, a seasoned finance and investing
professional, as a non-executive director.
Earnings Conference Call
Argo
will host a conference call to discuss its results at 08:00
ET/12:00 BST tomorrow, Wednesday 18 May 2022. The live webcast of
the call can be accessed via the Investor Meet Company
platform.
Investors
can sign up to Investor Meet Company and add Argo Blockchain via
the following link: https://www.investormeetcompany.com/argo-blockchain-plc/register-investor
Investors
already following Argo Blockchain on the Investor Meet Company
platform will be invited automatically.
Inside Information and Forward-Looking Statements
This announcement contains inside information and includes
forward-looking statements which reflect the Company's or, as
appropriate, the Directors' current views, interpretations, beliefs
or expectations with respect to the Company's financial
performance, business strategy and plans and objectives of
management for future operations. These statements include
forward-looking statements both with respect to the Company and the
sector and industry in which the Company operates. Statements which
include the words "expects", "intends", "plans", "believes",
"projects", "anticipates", "will", "targets", "aims", "may",
"would", "could", "continue", "estimate", "future", "opportunity",
"potential" or, in each case, their negatives, and similar
statements of a future or forward-looking nature identify
forward-looking statements. All forward-looking statements address
matters that involve risks and uncertainties because they relate to
events that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. Accordingly,
there are or will be important factors that could cause the
Company's actual results, prospects and performance to differ
materially from those indicated in these statements. In addition,
even if the Company's actual results, prospects and performance are
consistent with the forward-looking statements contained in this
document, those results may not be indicative of results in
subsequent periods. These forward-looking statements speak only as
of the date of this announcement. Subject to any obligations under
the Prospectus Regulation Rules, the Market Abuse Regulation, the
Listing Rules and the Disclosure and Transparency Rules and except
as required by the FCA, the London Stock Exchange, the City Code or
applicable law and regulations, the Company undertakes no
obligation publicly to update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise. For a more complete discussion of
factors that could cause our actual results to differ from those
described in this announcement, please refer to the filings that
Company makes from time to time with the United States Securities
and Exchange Commission and the United Kingdom Financial Conduct
Authority, including the section entitled "Risk Factors" in the
Company's Annual Report on Form 20-F.
Non-IFRS Measures
Bitcoin
and Bitcoin Equivalent Mining Margin and Adjusted EBITDA are
financial measures not defined by IFRS. We believe Bitcoin and
Bitcoin Equivalent Mining Margin and Adjusted EBITDA have
limitations as analytical tools. In particular, Bitcoin and Bitcoin
Equivalent Mining Margin excludes the depreciation of mining
equipment and so does not reflect the full cost of our mining
operations, and it also excludes the effects of fluctuations in the
value of digital currencies and realized losses on the sale of
digital assets, which affect our IFRS gross profit. Further,
Adjusted EBITDA excludes interest income (expense), taxes,
depreciation and amortization, change in fair value of digital
currencies, and share based payments, which are important
components of our IFRS net income/(loss). These measures should not
be considered as an alternative to gross margin or net
income/(loss), as applicable, determined in accordance with IFRS,
or other IFRS measures. These measures are not necessarily
comparable to similarly titled measures used by other companies. As
a result, you should not consider these measures in isolation from,
or as a substitute analysis for, our gross margin or net
income/(loss), as applicable, as determined in accordance with
IFRS.
Statement of Income
|
Three Months Ended 31 March, 2022
|
Three Months Ended 31 March, 2021
|
Figures in ‘000 except per share and BTC mined
|
$
|
£
|
$
|
£
|
Revenues
|
19,515
|
14,862
|
17,836
|
13,583
|
Direct
costs
|
(4,596)
|
(3,500)
|
(2,562)
|
(1,951)
|
Depreciation
of mining equipment
|
(6,961)
|
(5,301)
|
(2,869)
|
(2,185)
|
Change
in fair value of digital currencies
|
(6,080)
|
(4,630)
|
13,248
|
10,090
|
Realized
gain on sale of digital currencies
|
41
|
30
|
1,472
|
1,121
|
Gross profit
|
1,919
|
1,461
|
27,125
|
20,657
|
|
|
|
|
|
Consulting
fees
|
(208)
|
(159)
|
(467)
|
(356)
|
Professional
fees
|
(1,262)
|
(961)
|
(259)
|
(197)
|
General
and administrative
|
(2,908)
|
(2,215)
|
(633)
|
(482)
|
Share
based payment charge
|
(1,423)
|
(1,084)
|
(123)
|
(94)
|
Foreign
exchange
|
5,705
|
4,346
|
(54)
|
(41)
|
Operating profit
|
1,823
|
1,388
|
25,589
|
19,488
|
|
|
|
|
|
Fair
value gain (loss) of investments
|
(174)
|
(132)
|
-
|
-
|
Fair
value revaluation of contingent consideration
|
2,742
|
2,088
|
-
|
-
|
Finance
costs
|
(2,442)
|
(1,860)
|
(289)
|
(221)
|
Profit before taxation
|
1,949
|
1,484
|
25,300
|
19,267
|
|
|
|
|
|
Tax
credit
|
117
|
89
|
-
|
-
|
|
|
|
|
|
Profit after taxation
|
2,066
|
1,573
|
25,300
|
19,268
|
Other comprehensive loss
|
|
|
|
|
Items
which may be subsequently reclassified to profit or
loss:
|
|
|
|
|
- Currency
translation reserve
|
(17,170)
|
(13,076)
|
-
|
-
|
Total other comprehensive (loss), net of tax
|
(17,170)
|
(13,076)
|
-
|
-
|
|
|
|
|
|
Total comprehensive (loss) income attributable to the equity
holders of the Company
|
(15,104)
|
(11,503)
|
25,300
|
19,268
|
|
|
|
|
|
Earnings per share attributable to equity owners
(pence)
|
|
|
|
|
Basic
earnings (loss) per share
|
$0.004c
|
0.003p
|
$0.080c
|
0.060p
|
Diluted
earnings per share
|
$0.004c
|
0.003p
|
$0.070c
|
0.050p
|
|
As at 31
March 2022
|
As at 31
December 2021
|
Balance Sheet
|
Figures
in ‘000
|
$
|
£
|
$
|
£
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Investments
at fair value through profit or loss
|
355
|
271
|
529
|
403
|
Investments
accounted for using the equity method
|
18,143
|
13,817
|
18,143
|
13,817
|
Intangible
fixed assets
|
11,655
|
8,876
|
7,359
|
5,604
|
Property,
plant and equipment
|
156,765
|
119,386
|
146,546
|
111,604
|
Right
of use assets
|
484
|
368
|
460
|
350
|
Total non-current assets
|
187,402
|
142,718
|
173,037
|
131,778
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade
and other receivables
|
111,500
|
84,914
|
83,196
|
63,359
|
Digital
assets
|
104,835
|
79,839
|
106,044
|
80,759
|
Cash
and cash equivalents
|
11,904
|
9,066
|
15,498
|
11,803
|
Total current assets
|
228,239
|
173,819
|
204,738
|
155,921
|
|
|
|
|
|
Total assets
|
415,641
|
316,537
|
377,775
|
287,699
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
Equity
|
|
|
|
|
Share
Capital
|
614
|
468
|
614
|
468
|
Share
Premium
|
183,282
|
139,581
|
183,282
|
139,581
|
Share
based payment reserve
|
3,925
|
2,989
|
2,501
|
1,905
|
Fair
value reserve
|
545
|
414
|
545
|
414
|
Currency
translation reserve
|
(16,588)
|
(12,633)
|
44
|
33
|
Other
comprehensive income of equity accounted associates
|
8,628
|
6,571
|
8,628
|
6,571
|
Accumulated
surplus
|
80,075
|
60,982
|
69,381
|
52,838
|
Total equity
|
260,481
|
198,372
|
264,995
|
201,810
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade
and other payables
|
18,122
|
13,803
|
20,018
|
15,245
|
Contingent
consideration
|
7,856
|
5,983
|
10,598
|
8,071
|
Loans
and borrowings
|
58,618
|
44,641
|
30,715
|
23,391
|
Income
tax
|
10,568
|
8,048
|
10,083
|
7,679
|
Deferred
tax
|
259
|
197
|
375
|
286
|
Lease
liability
|
10
|
7
|
9
|
7
|
Total current liabilities
|
95,433
|
72,679
|
71,798
|
54,679
|
Non-current liabilities
|
|
|
|
|
Deferred
tax
|
710
|
541
|
710
|
541
|
Issued
debt - bond
|
35,322
|
26,900
|
35,333
|
26,908
|
Loans
|
23,188
|
17,659
|
4,453
|
3,391
|
Lease
liability
|
507
|
386
|
486
|
370
|
Total liabilities
|
155,160
|
118,165
|
112,780
|
85,889
|
|
|
|
|
|
Total equity and liabilities
|
415,641
|
316,537
|
377,775
|
287,699
|
The
following table shows a reconciliation of Bitcoin and Bitcoin
Equivalent Mining Margin to gross margin, the most directly
comparable IFRS measure, for the three months ended 31 March 2022
and the three months ended 31 March 2021.
|
2022
|
2021
|
Figures
in ‘000
|
$
|
£
|
$
|
£
|
|
|
|
|
|
Gross profit
|
1,919
|
1,461
|
27,125
|
20,658
|
|
|
|
|
|
Depreciation
of mining equipment
|
6,961
|
5,301
|
2,869
|
2,185
|
Change
in fair value of digital currencies
|
6,080
|
4,630
|
(13,248)
|
(10,090)
|
Realized
gain (loss) on sale of digital currencies
|
(41)
|
(30)
|
(1,472)
|
(1,121)
|
Cryptocurrency
management fees
|
-
|
-
|
(434)
|
(330)
|
Mining profit
|
14,919
|
11,362
|
14,840
|
11,302
|
Bitcoin and Bitcoin Equivalent Mining Margin
|
76%
|
76%
|
83%
|
83%
|
The
following table shows a reconciliation of Adjusted EBITDA to net
income, the most directly comparable IFRS measure, for the three
months ended 31 March 2022 and the three months ended 31 March
2021.
|
2022
|
2021
|
Figures
in ‘000
|
$
|
£
|
$
|
£
|
|
|
|
|
|
Net income
|
2,066
|
1,573
|
25,300
|
19,267
|
|
|
|
|
|
Depreciation/amortization
|
7,166
|
5,457
|
2,914
|
2,219
|
Interest
expense
|
2,442
|
1,860
|
289
|
220
|
Income
tax credit
|
(117)
|
(89)
|
-
|
-
|
Share
based payment
|
1,423
|
1,084
|
123
|
94
|
Change
in fair value of digital currencies
|
6,080
|
4,630
|
(13,248)
|
(10,090)
|
Adjusted EBITDA
|
19,060
|
14,515
|
15,378
|
11,710
|
Adjusted EBITDA Margin
|
98%
|
98%
|
86%
|
86%
|
*Dollar values translated from pound sterling into U.S. dollars at
the rate of £1.00 to $1.31 unless otherwise
specified.
For further information please contact:
Argo Blockchain
|
|
Peter Wall
Chief
Executive
|
via Tancredi +44 203 434 2334
|
finnCap Ltd
|
|
Corporate
Finance
Jonny Franklin-Adams
Tim Harper
Joint
Corporate Broker
Sunila de Silva
|
+44 207 220 0500
|
Tennyson Securities
|
|
Joint
Corporate Broker
Peter Krens
|
+44 207 186 9030
|
OTC Markets
|
|
Jonathan Dickson
jonathan@otcmarkets.com
|
+44 204 526 4581
+44 7731 815 896
|
Tancredi Intelligent Communication
UK
& Europe Media Relations
|
|
Emma Valgimigli
Fabio Galloni-Roversi Monaco
Nasser Al-Sayed
argoblock@tancredigroup.com
|
+44 7727 180 873
+44 7888 672 701
+44 7915 033 739
|
About Argo:
Argo Blockchain plc is a global leader in cryptocurrency mining
with one of the largest and most efficient operations powered by
clean energy. The Company is headquartered in London, UK and its
shares are listed on the Main Market of the London Stock Exchange
under the ticker: ARB and on the Nasdaq Global Select Market in the
United States under the ticker: ARBK.
.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date:
17 May, 2022
|
ARGO BLOCKCHAIN PLC
By:
Name:
Peter Wall
Title:
Chief Executive Officer
Name:
David Zapffe
Title:
General Counsel
|
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