TIDMARB
RNS Number : 1412J
Argo Blockchain PLC
09 December 2022
Press Release
9 December 2022
Argo Blockchain plc
("Argo" or "the Company")
November 2022 Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining
(LSE: ARB; NASDAQ: ARBK) is pleased to provide the following
operational update for November 2022.
During the month of November, Argo mined 198 Bitcoin or Bitcoin
Equivalents (together, BTC) compared to 204 BTC in October 2022.
The decrease in BTC mined was primarily due to an increase in the
Bitcoin network difficulty in November compared to October. The
Company's total hashrate capacity continues to be 2.5 EH/s.
As of 30 November 2022, the Company held 126 Bitcoin, of which
116 were BTC Equivalents.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in November amounted to GBP2.94
million [$3.46 million*](October 2022: GBP3.55 million [$4.00
million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of 29% for the month of November (October 2022:
32%).
As first announced in November 2021 and reiterated in January
2022, from 31 December 2022 ARBKF shares will no longer be traded
on the OTCQX Best Market. Holders of the ARBKF shares have the
option to convert these shares to the Nasdaq-listed ADRs (Ticker:
ARBK). Instructions for this process are available on the Investor
Resources page of the Company's website. Conversion of the ARBKF
shares is not required; the ARBKF shares will continue to trade on
the OTC Pink Market starting in January 2023.
Argo continues to engage in financing discussions, as announced
on 31 October 2022, to provide the Company with working capital
sufficient for its present requirements. A further announcement
will be made in due course.
No Assurance of Definitive Agreements
While Argo is exploring financing opportunities, there can be no
assurance that any definitive agreements will be signed or that any
transactions will be consummated. Should Argo be unsuccessful in
completing any further financing, Argo would become cash flow
negative in the near term and would need to curtail or cease
operations. The Company is endeavoring to complete such financing
transactions to provide the Company with working capital sufficient
for its present requirements.
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
realised 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 October 2022 and
November 2022.
Month Ended 31 October Month Ended 30 November
2022 2022
--------------------------------------------- --------------------------------------
GBP(000s) $(000s) GBP(000s) $(000s)
Gross profit/(loss) (1,486) (1,673) (1,462) (1,724)
Gross Margin (42%) (42%) (50%) (50%)
Non mining revenue (41) (47) (33) (39)
Depreciation of
mining
equipment 1,934 2,177 1,849 2,180
Change in fair
value of
digital currencies
(1) 658 741 1 1
Realised
(profit)/loss
on sale of digital
currencies 64 72 493 581
Mining Profit 1,129 1,271 848 1,000
Bitcoin and Bitcoin
Equivalent
Mining Margin 32% 32% 29% 29%
----------------------- ----------------------- -------------------- ---------------------- --------------
(1) Due to unfavourable changes in the fair value of BTC there
was a loss on the change in fair value of digital currencies in
October and November 2022.
* 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 "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 be unable to secure sufficient additional
financing to meet its operating needs. 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
Chief Executive 2334
--------------------------
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
--------------------------
OTC Markets
--------------------------
Jonathan Dickson +44 204 526 4581
jonathan@otcmarkets.com +44 7731 815 896
--------------------------
Tancredi Intelligent Communication
UK & Europe Media Relations
--------------------------
Salamander Davoudi
Fabio Galloni-Roversi Monaco +44 7957 549 906
Nasser Al-Sayed +44 7888 672 701
argoblock@tancredigroup.com +44 7915 033 739
--------------------------
About Argo:
Argo Blockchain plc is a dual-listed (LSE: ARB; NASDAQ: ARBK)
blockchain technology company focused on large-scale cryptocurrency
mining. With its flagship mining facility 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. Argo also participates in
several Web 3.0, DeFi and GameFi projects through its Argo Labs
division, further contributing to its business operations, as well
as the development of the cryptocurrency markets. For more
information, visit www.argoblockchain.com .
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