LONDON, UNITED KINGDOM / ACCESSWIRE / August 28, 2024 / Argo Blockchain plc, a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), is pleased to announce its results for the six months ended 30 June 2024.
Highlights
Revenues of $29.3 million for H1 2024 compared to $24.0 million for H1 2023, an 18% increase, driven primarily by an increase in Bitcoin price. Revenue in the first half of 2024 compared to 2023 increased despite the Bitcoin halving and a decrease in the number of Bitcoin mined. The total number of Bitcoin ("BTC") mined during H1 2024 was 507, a 46% decrease from H1 2023 of 947. This is primarily due to the increase in the global hashrate and the reduction in the bitcoin denominated hash price.
Mining margin of $11.5 million or 39% for H1 2024, compared to $10.2 million or 42% for H1 2023.
On 8 January 2024, Argo raised gross proceeds of $9.9 million through the issue of 38,064,000 ordinary shares at a price per share of £0.205 to certain institutional investors.
On 28 March 2024, the Company closed the sale of its five megawatt data centre located in Mirabel, Quebec for total consideration of $6.1 million. The Company relocated the mining machines from the Mirabel Facility to its facility in Baie Comeau, Quebec, and the Company expects this consolidation to reduce its non-mining operating expenses by $0.7 million per year.
Reduced the Galaxy loan by $18.2 million from $23.5 million at 1 January 2024 to $5.3 million at 30 June 2024. In August 2024, the Galaxy loan was repaid in full.
Recorded a $22 million impairment on its mining machines reflecting current mining economics.
Net loss was $32.7 million for H1 2024, compared to a net loss of $18.6 million in H1 2023. Adjusted EBITDA was $5.7 million for H1 2024 compared to $2.8 million in H1 2023.
The Company ended June 2024 with $4.0 million of cash and 11 Bitcoin equivalent. On 31 July 2024, the Company raised $8.3 million of gross proceeds from the issuance of 57.8 million shares and 57.8 million warrants through a private share placement with an institutional investor. The shares were issued at £0.1125 and the warrants have an exercise price of £0.1125.
Management Commentary
Thomas Chippas, CEO at Argo Blockchain said: "Argo's focus on financial discipline and operational efficiency enabled us to pay off our $35 million debt obligation to Galaxy, significantly deleveraging our balance sheet. This positions us well to explore investing in growth and strategic initiatives that can drive long-term value for our shareholders."
Non-IFRS Measures
The following table shows a reconciliation of mining margin percentage to gross margin, the most directly comparable IFRS measure, for the six month periods ended 30 June 2024 and 30 June 2023.
| Period ended | Period ended |
| 30 June 2024 | 30 June 2023 |
| (unaudited) | (unaudited) |
| $'000 | $'000 |
|
|
|
Gross margin | 1,792 | (1,371) |
Gross margin percentage | 6% | (6%) |
Depreciation of mining equipment | 9,667 | 12,047 |
Change in fair value of digital currencies | 27 | (489) |
|
|
|
Mining margin | 11,486 | 10,187 |
Mining margin percentage | 39% | 42% |
The following table shows a reconciliation of Adjusted EBITDA to net (loss) / income, the most directly comparable IFRS measure, for the six month periods ended 30 June 202.
| Period ended |
|
| Period ended |
| |||
| 30 June 2024 |
|
| 30 June 2023 |
| |||
| (unaudited) |
|
| (unaudited) |
| |||
| $'000 |
|
| $'000 |
| |||
|
|
|
|
|
| |||
Net Loss |
|
| (32,734 | ) |
|
| (18,563 | ) |
Interest expense |
|
| 4,296 |
|
|
| 6,335 |
|
Income tax expense |
|
| 340 |
|
|
| - |
|
Depreciation and amortisation |
|
| 10,114 |
|
|
| 12,698 |
|
Restructuring and transaction related fees |
|
| 1,118 |
|
|
| 1,399 |
|
Foreign Exchange |
|
| (292 | ) |
|
| (1,403 | ) |
Share based payment |
|
| 3,594 |
|
|
| 1,889 |
|
Impairment of property, plant and equipment |
|
| 22,012 |
|
|
|
|
|
Loss on sale of tangible assets |
|
| 429 |
|
|
|
|
|
Gain on sale of assets held for sale |
|
| (3,397 | ) |
|
| - |
|
Impairment of intangible assets |
|
| 226 |
|
|
| - |
|
Equity accounting loss from associate |
|
| - |
|
|
| 458 |
|
Adjusted EBITDA |
|
| 5,706 |
|
|
| 2,813 |
|
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, 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 in note 3 below. 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 Guidance and Transparency Rules and except as required by the United Kingdom Financial Conduct Authority ("FCA"), the London Stock Exchange, the City Code on Takeovers and Mergers 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 FCA, including the section entitled "Risk Factors" in the Company's Annual Report on Form 20-F.
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 operations in Quebec and 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.
Click on, or paste the following link into your web browser, to view the full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/8900B_1-2024-8-27.pdf
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
SOURCE: Argo Blockchain PLC
View the original press release on accesswire.com
