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 June, 2023
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.
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 No.
1
|
Description
Q1 2023
Results dated 06 June 2023
|
Press Release
6 June 2023
Argo Blockchain plc
("Argo" or "the Company")
Q1 2023 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 2023. All $
amounts are in United States Dollars ("USD") unless otherwise
stated.
Q1 2023 Financial Results
●
The
Company ended the quarter with $14.2 million of cash on its balance
sheet, along with 85 Bitcoin or Bitcoin Equivalent (together,
"BTC") in its HODL
●
Revenue
of $11.4 million, an increase of 15% compared to Q4
2022
●
Net
loss of $8.7 million
●
Adjusted
EBITDA of $1.6 million
●
Total
BTC mined in the quarter was 491, or 5.3 BTC per day
●
Mining
margin percentage for the quarter was 49%, an increase from a 35%
mining margin percentage in Q4 2022
●
Reduced
operating costs and expenses by 70% compared to the quarterly
average in the second half of 2022
●
Reduced
finance costs by 63% compared to the quarterly average in the
second half of 2022
Management Commentary
Seif El-Bakly, Interim Chief Executive Officer of Argo, said: "The
Argo team is moving ahead with a focus on financial discipline,
operational excellence, and growth and strategic partnerships. To
support these initiatives, we recently strengthened our finance
team and appointed Jim MacCallum, CPA, CFA as Chief Financial
Officer."
"In terms of financial discipline, we are taking a much more
critical view of all operating expenses, and we've implemented a
robust internal process aimed at reducing non-mining operating
expenses. Compared to 2022, we've reduced our expenses by 70%. We
are also evaluating options to strengthen our balance
sheet."
During the first quarter, Argo successfully transitioned the Helios
facility to Galaxy Digital. In addition, the average all-in
price of power and hosting was lower than the previous guidance of
$0.05 - $0.055 per kilowatt-hour for the quarter.
Moving forward, Argo expects to receive and install "BlockMiner"
machines later this year at its Quebec facilities. This is expected
to increase the Company's total hashrate to approximately 2.8
EH/s.
Earnings Conference Call
Argo will host a conference call to discuss its results at 10:00 ET
/ 15:00 BST today, Tuesday 6 June 2023. 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, 2023
|
Three Months Ended March 31, 2022
|
Six Months Ended December 31, 2022
|
|
|
$
|
$
|
$
|
|
|
|
|
|
|
Revenues
|
11,438
|
19,515
|
24,979
|
|
Direct costs
|
(5,799)
|
(4,596)
|
(16,647)
|
|
Mining margin
|
5,639
|
14,919
|
8,332
|
|
Depreciation of mining equipment
|
(6,116)
|
(6,961)
|
(6,887)
|
|
Change in fair value of digital currencies
|
(79)
|
(6,039)
|
(1,502)
|
|
Gross profit (loss)
|
(556)
|
1,919
|
(57)
|
|
|
|
|
|
|
Operating costs and expenses
|
(4,054)
|
(4,173)
|
(21,300)
|
|
Restructuring
|
(806)
|
-
|
(11,593)
|
|
Foreign exchange
|
1,300
|
5,705
|
8,444
|
|
Depreciation/amortisation
|
(323)
|
(205)
|
(7,295)
|
|
Share based compensation
|
(958)
|
(1,423)
|
(2,553)
|
|
Operating profit (loss)
|
(5,397)
|
1,823
|
(34,354)
|
|
|
|
|
|
|
Fair value gain/(loss) of investments
|
-
|
(174)
|
(53)
|
|
Fair value revaluation of contingent consideration
|
-
|
2,742
|
-
|
|
Loss on sale of subsidiary and investment
|
-
|
-
|
(54,325)
|
|
Loss on disposal of fixed assets
|
-
|
-
|
(22,702)
|
|
Finance costs
|
(3,313)
|
(2,442)
|
(17,945)
|
|
Other income
|
-
|
-
|
3,641
|
|
Impairment of tangible fixed assets
|
-
|
-
|
(54,574)
|
|
Impairment of intangible assets
|
-
|
-
|
(5,038)
|
|
Equity accounted loss from associate
|
-
|
-
|
(5,298)
|
|
Profit/(loss) before taxation
|
(8,710)
|
1,949
|
(190,648)
|
|
|
|
|
|
|
Tax credit / (expense)
|
-
|
117
|
(7,284)
|
|
|
|
|
|
|
Profit/(loss) after taxation
|
(8,710)
|
2,066
|
(197,932)
|
|
Other comprehensive income
|
|
|
|
|
Items which may be subsequently reclassified to profit or
loss:
|
|
|
|
|
Currency translation
reserve
|
-
|
(17,170)
|
9,544
|
|
Total other comprehensive income (loss), net of tax
|
-
|
(17,170)
|
9,544
|
|
|
|
|
|
|
Total comprehensive loss attributable to the equity holders of the
Company
|
(8,710)
|
(15,104)
|
(188,387)
|
|
|
|
|
|
|
Earnings per share attributable to equity owners
|
|
|
|
|
Basic earnings/(loss) per share
|
$(0.018)
|
$0.004
|
$(0.414)
|
|
Diluted earnings/(loss) per share
|
$(0.018)
|
$0.004
|
$(0.414)
|
The income statement has been prepared on the basis that all
operations are continuing operations.
GROUP
STATEMENT OF FINANCIAL POSITION
As at
|
|
March 31,
2023
|
|
December 31, 2022
|
|
Figures in '000
|
$
|
|
$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Investments at fair value through profit or loss
|
417
|
|
414
|
|
Investments accounted for using the equity method
|
2,933
|
|
2,863
|
|
Intangible fixed assets
|
2,106
|
|
2,103
|
|
Property, plant and equipment
|
71,106
|
|
76,991
|
|
Right of use assets
|
525
|
|
525
|
|
Total non-current assets
|
77,087
|
|
82,896
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
14,244
|
|
20,092
|
|
Trade and other receivables
|
7,652
|
|
6,802
|
|
Digital assets
|
20
|
|
443
|
|
Total current assets
|
21,916
|
|
27,337
|
|
|
|
|
|
|
Total assets
|
99,003
|
|
110,233
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
Equity
|
|
|
|
|
Share Capital
|
590
|
|
576
|
|
Share Premium
|
177,541
|
|
173,334
|
|
Share based payment reserve
|
9,358
|
|
8,201
|
|
Currency translation reserve
|
1,339
|
|
2,132
|
|
Accumulated surplus / (deficit)
|
(183,344)
|
|
(170,495)
|
|
Total equity
|
5,484
|
|
13,748
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
7,504
|
|
10,021
|
|
Loans and borrowings
|
12,499
|
|
11,605
|
|
Deferred tax
|
2,165
|
|
2,647
|
|
Lease liability
|
5
|
|
5
|
|
Total current liabilities
|
22,173
|
|
24,278
|
|
Non-current liabilities
|
|
|
|
|
Deferred tax
|
8,134
|
|
7,942
|
|
Issued debt - bond
|
37,824
|
|
37,809
|
|
Loans
|
24,848
|
|
25,916
|
|
Lease liability
|
540
|
|
540
|
|
Total liabilities
|
93,519
|
|
96,485
|
|
|
|
|
|
|
Total equity and liabilities
|
99,003
|
|
110,233
|
GROUP
STATEMENT OF CASH FLOWS
For the three months ended 31 March
|
|
2023
|
|
Figures in '000
|
$
|
|
Cash flows from operating activities
|
|
|
Loss before tax
|
(8,710)
|
|
Adjustments for:
|
|
|
Depreciation/Amortisation
|
6,439
|
|
Foreign exchange
|
(1,301)
|
|
Finance costs
|
3,313
|
|
Fair value change in digital assets through profit or
loss
|
79
|
|
Share based payment expense
|
958
|
|
Cash flow from operating activities before working capital
changes
|
778
|
|
|
|
|
Working capital changes:
|
|
|
Increase in trade and other receivables
|
(685)
|
|
Decrease in trade and other payables
|
(3,345)
|
|
Decrease in digital assets
|
356
|
|
Net cash used in operating activities
|
(2,895)
|
|
|
|
|
Investing activities
|
|
|
Purchase of tangible fixed assets
|
(329)
|
|
Net cash used in investing activities
|
(329)
|
|
|
|
|
Financing activities
|
|
|
Loan repayments
|
(364)
|
|
Interest paid
|
(2,728)
|
|
Net cash generated used in financing activities
|
(3,092)
|
|
|
|
|
Net decrease in cash and cash equivalents
|
(6,316)
|
|
Effect of foreign exchange on cash
Cash and cash equivalents at beginning of period
|
468
20,092
|
|
Cash and cash equivalents at end of period
|
14,244
|
|
|
|
The table below reconciles Adjusted EBITDA to net income/(loss),
the most directly comparable IFRS measure, for the three months
ended 31 March 2023 and three months ended 31 March
2022.
|
|
2023
|
2022
|
|
Figures in '000
|
$
|
$
|
|
|
|
|
|
Net income/(loss)
|
(8,710)
|
2,066
|
|
|
|
|
|
Interest expense
|
3,313
|
2,442
|
|
Depreciation / amortisation
|
6,439
|
7,168
|
|
Income tax (credit) / expense
|
-
|
(117)
|
|
EBITDA
|
1,042
|
11,559
|
|
Change in fair value of digital currencies
|
79
|
6,039
|
|
Impairment of intangible assets
|
-
|
703
|
|
One-time restructuring costs
|
806
|
-
|
|
Foreign exchange gain
|
(1,300)
|
(5,705)
|
|
Share based payment charge
|
958
|
1,423
|
|
Adjusted EBITDA
|
1,585
|
14,019
|
For further information please contact:
|
Argo Blockchain
|
|
|
Investor Relations
|
ir@argoblockchain.com
|
|
finnCap Ltd
|
|
|
Corporate
Finance
Jonny Franklin-Adams
Seamus Fricker
Joint
Corporate Broker
Sunila de Silva
|
+44 207 220 0500
|
|
Tennyson Securities
|
|
|
Joint
Corporate Broker
Peter Krens
|
+44 207 186 9030
|
|
Tancredi Intelligent Communication
UK
& Europe Media Relations
|
|
|
Salamander Davoudi
Emma Valgimigli
Fabio Galloni-Roversi Monaco
Nasser Al-Sayed
|
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:
06 June,2023
|
ARGO BLOCKCHAIN PLC
By:
Name:
Peter Wall
Title:
Chief Executive Officer
Name:
David Zapffe
Title:
General Counsel
|
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