TIDMARB
RNS Number : 7190H
Argo Blockchain PLC
08 April 2022
Press Release
8 April 2022
Argo Blockchain PLC
("Argo" or "the Company")
March 2022 Operational Update
Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining
(LSE: ARB; NASDAQ: ARBK), is pleased to provide the following
operational update for March 2022.
During the month of March, Argo mined 163 Bitcoin or Bitcoin
Equivalent (together, BTC) compared to 135 BTC in February
2022.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in March amounted to GBP5.22
million [$6.92 million*] (February 2022: GBP4.15 million [$5.58
million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of approximately 74% for the month of March (February
2022: 71%).
At the end of March, the Company owned 2,700 Bitcoin, of which
259 were BTC equivalents.
Appointment of Chief Operating Officer
Argo is also pleased to announce the appointment of Seif
El-Bakly as Chief Operating Officer. Seif has over 16 years'
experience in the capital markets and trading sectors. Prior to
joining Argo, Seif founded a fintech startup and worked for TMX
Group, where his responsibilities included leading the strategy and
business management efforts for the entire Markets Business. Fluent
in three languages, Seif graduated from Concordia University's John
Molson School of Business and is a CFA Charterholder.
Update on Helios Facility
The Company is also pleased to provide the following update on
the construction of its 200MW flagship cryptocurrency mining
facility, Helios, in Dickens County, Texas. The Company has
continued to make significant progress on this stage of
construction and expects mining operations to commence at Helios in
Q2 2022. Argo has successfully installed critical equipment,
including immersion pumps, air coolers, transformers, power
distribution units, and pallet racks. Additionally, the fiber
internet connection to Helios has now been completed.
Participation in April Conferences
The Company is also pleased to announce that Chief Executive,
Peter Wall, participated in a panel discussion entitled "Mining the
Public Markets" at the Bitcoin 2022 conference in Miami on 7 April.
He will also be participating in a panel discussion entitled
"Sustainability & Energy Efficiency of Bitcoin Mining" at the
virtual Cowen Bitcoin Mining Summit on 12-13 April.
Peter Wall, Chief Executive and interim Chairman, said: "We are
delighted to welcome Seif as our Chief Operating Officer. He will
play a critical role in bolstering Argo's senior leadership team
and brings a wealth of experience in the trading and capital
markets sectors to Argo. As we approach the opening of our Helios
facility and significantly scale up our owned and operated mining
operations, Seif will be integral in driving the operational
performance of Argo."
Non-IFRS Measures
Bitcoin and Bitcoin Equivalent Mining Margin is a financial
measure not defined by IFRS. We believe Bitcoin and Bitcoin
Equivalent Mining Margin has limitations as an analytical tool. 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. This measure should not be considered as an
alternative to gross margin determined in accordance with IFRS, or
other IFRS measures. This measure is not necessarily comparable to
similarly titled measures used by other companies. As a result, you
should not consider this measure in isolation from, or as a
substitute analysis for, our gross margin as determined in
accordance with IFRS.
The following table shows a reconciliation of gross margin to
Bitcoin and Bitcoin Equivalent Mining Margin, the most directly
comparable IFRS measure, for the months of February 2022 and March
2022.
Month Ended 28 February Month Ended 31 March
2022 2022
--------------------------- -------------------------
GBP $ GBP $
Gross (loss)/profit
(1) 11,383,225 15,372,973 2,453,564 3,313,522
Gross Margin 276% 276% 48% 48%
Depreciation of mining
equipment 1,287,252 1,738,426 1,313,598 1,774,006
Charge in fair value
of digital currencies (9,380,856) (12,668,786) 40,937 55,285
Realised loss/(gain)
on sale of digital
currencies (377,028) (509,174) 3,628 4,900
Mining Profit 2,912,593 3,933,439 3,811,727 5,147,713
Bitcoin and Bitcoin
Equivalent Mining
Margin 71% 71% 74% 74%
------------------------ ------------ ------------- ----------- ----------
(1) Due to favourable changes in the fair value of Bitcoin and
Bitcoin Equivalents in February 2022 there was a gain on change in
fair value of digital currencies. March 2022 resulted in a loss due
to unfavourable changes in the fair value of digital
currencies.
* Dollar values translated from pound sterling into U.S. dollars
using the noon buying rate of the Federal Reserve Bank of New York
as at the applicable dates.
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 Registration Statement on Form F-1.
For further information please contact:
Argo Blockchain
Peter Wall via Tancredi +44 203 434 2334
Chief Executive
-------------------------------
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 +44 204 526 4581
jonathan@otcmarkets.com +44 7731 815 896
-------------------------------
Tancredi Intelligent Communication
UK & Europe Media Relations
-------------------------------
Emma Valgimigli
Emma Hodges +44 7727 180 873
Fabio Galloni-Roversi Monaco +44 7861 995 628
Nasser Al-Sayed +44 7888 672 701
argoblock@tancredigroup.com +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.
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