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Argo Blockchain PLC Announces Q1 2023 Results

Q1 2023 Results (Unaudited)

LONDON, UK / ACCESSWIRE / June 6, 2023 / 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:

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.


Figures in '000 except per share
Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Six Months Ended December 31, 2022

$ $ $

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 )
(806 ) - (11,593 )
Foreign exchange
1,300 5,705 8,444
(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.


As at

March 31,
December 31, 2022
Figures in '000
$ $

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

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
24,848 25,916
Lease liability
540 540
Total liabilities
93,519 96,485

Total equity and liabilities
99,003 110,233


For the three months ended 31 March

Figures in '000
Cash flows from operating activities
Loss before tax
(8,710 )
Adjustments for:
Foreign exchange
(1,301 )
Finance costs
Fair value change in digital assets through profit or loss
Share based payment expense
Cash flow from operating activities before working capital changes

Working capital changes:
Increase in trade and other receivables
(685 )
Decrease in trade and other payables
(3,345 )
Decrease in digital assets
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
Cash and cash equivalents at end of period

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 )
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

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

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

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 or visit

SOURCE: Argo Blockchain PLC

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