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, 2024
Commission File Number: 001-40816
_____________________
Argo Blockchain plc
(Translation of registrant’s name into English)
_____________________
Eastcastle House
27/28 Eastcastle Street
London W1W 8DH
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.
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
Argo 1st Quarter
Results dated 23 May 2024
|
Press Release
23 May 2024
Argo Blockchain plc
("Argo" or "the Company")
Q1 2024 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 2024. All $
amounts are in United States Dollars ("USD") unless otherwise
stated.
Q1 2024 Financial Results
●
The Company ended the quarter with cash of $12.4 million and held
11 Bitcoin ("BTC") or Bitcoin Equivalent
●
Reduced debt by $12.4 million during the quarter, a 19% reduction
of the December 31, 2023 balance
●
Revenue of $16.8 million, an increase of 4% compared to Q4
2023
●
Total BTC mined in the quarter was 319, or 3.5 BTC per
day
●
Mining margin percentage for the quarter was 38% an increase on the
34% mining margin percentage achieved in Q4 2023
●
Gain on sale of Mirabel facility of $3.0 million, net of
tax
●
Net loss of $3.2 million
●
Adjusted EBITDA of $3.8 million
Management Commentary
Thomas Chippas, Chief Executive Officer of Argo, said: "The Argo
team's continued focus on financial discipline and operational
excellence can be seen in this quarter's results. Q1 was strong in
terms of revenue and earnings, both of which increased compared to
Q4 2023. We exited the Bitcoin halving with cash of over $12
million, Q1 debt reduction of over $12 million and streamlined
Quebec operations resulting from the sale of Mirabel. We are
enthusiastic about Argo's future growth and development, and are
dedicated to delivering value to our shareholders."
Earnings Conference Call
Argo will host a conference call to discuss its results at 10:00 ET
/ 15:00 BST today, Thursday 23 May 2024. 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 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 "remains confident", "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, including the risk that the Company may receive the
benefits contemplated by its transactions with Galaxy, the Company
may be unable to secure sufficient additional financing to meet its
operating needs, and the Company may not generate sufficient
working capital to fund its operations for the next twelve months
as contemplated. 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 removes such effects of our capital structure,
asset base and tax consequences, but additionally excludes any
unrealized foreign exchange gains or losses, stock-based
compensation charges and other one-time impairments and costs that
are not expected to be repeated in order to provide greater insight
into the cash flow being produced from our operating business,
without the influence of extraneous events. 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.
GROUP STATEMENT OF COMPREHENSIVE INCOME
|
Figures in '000 except per share
|
Three Months Ended March 31,
2024
|
Three Months Ended March 31, 2023
|
|
|
$
|
$
|
|
|
|
|
|
Revenues
|
16,840
|
11,264
|
|
Direct costs
|
(10,439)
|
(6,058)
|
|
Mining margin
|
6,401
|
5,206
|
|
Depreciation of mining equipment
|
(4,833)
|
(6,015)
|
|
Change in fair value of digital currencies
|
293
|
(77)
|
|
Gross profit (loss)
|
1,861
|
(886)
|
|
|
|
|
|
Operating costs and expenses
|
(3,152)
|
(3,558)
|
|
Restructuring and transaction related fees
|
(561)
|
(797)
|
|
Foreign exchange
|
192
|
634
|
|
Loss on hedging
|
(397)
|
-
|
|
Depreciation/amortisation
|
(232)
|
(319)
|
|
Share based compensation
|
(1,911)
|
(984)
|
|
Operating profit (loss)
|
(4,200)
|
(5,910)
|
|
|
|
|
|
Gain on sale of subsidiary (Mirabel)
|
3,397
|
-
|
|
Gain on disposal of fixed assets
|
75
|
-
|
|
Finance costs
|
(2,317)
|
(3,283)
|
|
Other income
|
230
|
1
|
|
Profit/(loss) before taxation
|
(2,815)
|
(9,192)
|
|
|
|
|
|
Tax credit / (expense)
|
(340)
|
-
|
|
|
|
|
|
Profit/(loss) after taxation
|
(3,155)
|
(9,192)
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
Items which may be subsequently reclassified to profit or
loss:
|
|
|
|
Currency translation
reserve
|
728
|
(401)
|
|
Total other comprehensive income (loss), net of tax
|
728
|
(401)
|
|
Total comprehensive loss attributable to the equity holders of the
Company
|
(2,426)
|
(9,593)
|
|
Earnings per share attributable to equity owners
|
|
|
|
Basic loss per share
|
$(0.01)
|
$(0.02)
|
|
Diluted loss per share
|
$(0.01)
|
$(0.02)
|
The income statement has been prepared on the basis that all
operations are continuing operations.
GROUP STATEMENT OF FINANCIAL POSITION
|
|
As at March 31,
2024
|
|
As at December 31,
2023
|
|
Figures in '000
|
$
|
|
$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Investments at fair value through profit or loss
|
400
|
|
400
|
|
Investments accounted for using the equity method
|
-
|
|
-
|
|
Intangible fixed assets
|
1,044
|
|
888
|
|
Property, plant and equipment
|
53,771
|
|
59,728
|
|
Right of use assets
|
-
|
|
-
|
|
Total non-current assets
|
55,215
|
|
61,016
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
12,444
|
|
7,443
|
|
Trade and other receivables
|
2,214
|
|
3,835
|
|
Assets held for sale
|
-
|
|
3,261
|
|
Digital assets
|
810
|
|
385
|
|
Total current assets
|
15,468
|
|
14,924
|
|
|
|
|
|
|
Total assets
|
70,683
|
|
75,940
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
Equity
|
|
|
|
|
Share Capital
|
763
|
|
712
|
|
Share Premium
|
219,522
|
|
209,779
|
|
Share based payment reserve
|
12,680
|
|
11,844
|
|
Currency translation reserve
|
(30,858)
|
|
(30,129)
|
|
RSU/PSU Reserve
|
1,156
|
|
322
|
|
Accumulated surplus / (deficit)
|
(195,525)
|
|
(192,370)
|
|
Total equity
|
7,738
|
|
158
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
10,670
|
|
11,175
|
|
Loans and borrowings
|
12,680
|
|
14,320
|
|
Corporation Tax
|
449
|
|
-
|
|
Liabilities associated with assets held for sale
|
-
|
|
2,090
|
|
Total current liabilities
|
23,799
|
|
27,585
|
|
Non-current liabilities
|
|
|
|
|
Issued debt - bond
|
38,346
|
|
38,170
|
|
Loans
|
800
|
|
10,027
|
|
Total liabilities
|
62,945
|
|
75,782
|
|
|
|
|
|
|
Total equity and liabilities
|
70,683
|
|
75,940
|
GROUP STATEMENT OF CASH FLOWS
|
|
Three Months Ended March 31,
2024
|
Three Months Ended March
31,
2023
|
|
Figures in '000
|
$
|
$
|
|
Cash flows from operating activities
|
|
|
|
Loss before tax
|
(2,815)
|
(9,192)
|
|
Adjustments for:
|
|
|
|
Depreciation/Amortisation
|
5,065
|
6,334
|
|
Foreign exchange
|
(192)
|
(634)
|
|
Fair value change in digital assets through profit or
loss
|
(293)
|
78
|
|
Revenue from digital assets
|
(16,840)
|
(11,438)
|
|
Loss on hedging
|
397
|
-
|
|
Finance cost
|
2,317
|
3,283
|
|
Gain on disposal of fixed assets
|
(75)
|
-
|
|
Proceeds from sale of digital assets
|
16,423
|
11,783
|
|
Share based compensation
|
1,911
|
984
|
|
Gain on sale of subsidiary
|
(3,397)
|
-
|
|
Cash flow from operating activities before working capital
changes
|
2,500
|
1,197
|
|
|
|
|
|
Working capital changes:
|
|
|
|
Increase in trade and other receivables
|
1,086
|
(514)
|
|
Decrease in trade and other payables
|
(307)
|
(3,359)
|
|
Income taxes paid
|
-
|
(213)
|
|
Net cash used in operating activities
|
3,279
|
(2,889)
|
|
|
|
|
|
Investing activities
|
|
|
|
Interest received
|
126
|
-
|
|
Proceeds from sale of tangible fixed assets
|
894
|
-
|
|
Proceeds from sale of subsidiary and investment
|
6,119
|
-
|
|
Net cash used in investing activities
|
7,139
|
-
|
|
|
|
|
|
Financing activities
|
|
|
|
Lease payments
|
-
|
-
|
|
Loan repayments
|
(12,617)
|
(245)
|
|
Interest paid
|
(1.966)
|
(2,424)
|
|
Proceeds from shares issued - net of issue costs
|
9,349
|
-
|
|
Net cash generated used in financing activities
|
(5,234)
|
(2,669)
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
5,185
|
(5,558)
|
|
Effect of foreign exchange on cash
|
(184)
|
16
|
|
Cash and cash equivalents, beginning of period
|
7,443
|
20,092
|
|
Cash and cash equivalents at end of period
|
12,444
|
14,550
|
|
|
|
|
The table below reconciles Adjusted EBITDA to net income/(loss),
the most directly comparable IFRS measure, for the three months
ended 31 March 2024 and three months ended 31 March
2023.
|
|
Three Months Ended March 31,
2024
|
Three Months Ended March 31,
2023
|
|
Figures in '000
|
$
|
$
|
|
|
|
|
|
Net income/(loss)
|
(3,155)
|
(9,192)
|
|
|
|
|
|
Interest expense
|
2,317
|
3,283
|
|
Depreciation / amortisation
|
5,065
|
6,334
|
|
Income tax (credit) / expense
|
340
|
-
|
|
EBITDA
|
4,567
|
425
|
|
Restructuring and transaction related fees
|
561
|
797
|
|
Foreign exchange gain
|
(192)
|
(634)
|
|
Share based payment charge
|
1,911
|
984
|
|
Gain on sale of investment
|
(3,397)
|
-
|
|
Loss on hedging
|
397
|
-
|
|
Adjusted EBITDA
|
3,847
|
1,572
|
For further information please contact:
|
Argo Blockchain
|
|
|
Investor Relations
|
ir@argoblockchain.com
|
|
Tennyson Securities
|
|
|
Corporate
Broker
Peter Krens
|
+44 207 186
9030
|
|
Fortified Securities
|
|
|
Joint
Broker
Guy Wheatley, CFA
|
+44 74930989014
guy.wheatley@fortifiedsecurities.com
|
|
Tancredi Intelligent Communication
UK
& Europe Media Relations
|
argoblock@tancredigroup.com
|
About Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK)
blockchain technology company focused on large-scale cryptocurrency
mining. With mining facilities in Quebec, mining operations in
Texas, and offices in the US, Canada, and the UK, Argo's global,
sustainable operations are predominantly powered by renewable
energy. In 2021, Argo became the first climate positive
cryptocurrency mining company, and a signatory to the Crypto
Climate Accord. For more information, visit www.argoblockchain.com.
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:
23 May 2024
|
ARGO BLOCKCHAIN PLC
By:
/s/ Jim
MacCallum
Name:
Jim MacCallum
Title:
Chief Financial Officer
|
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