REG - Argo Blockchain PLC - Trading Statement

Argo BlockchainAnnouncement

03/06/2019 07:05

RNS Number : 8473A
Argo Blockchain PLC
03 June 2019
 


PRESS RELEASE
 
3 June 2019
 
Argo Blockchain PLC
('Argo' or 'the Company')
 
Business update
Second quarter guidance upgraded by 57%
 
Argo, a UK-based provider of enterprise-scale cryptomining services, has experienced significantly better than expected trading conditions and results following its circular released on 18 April and the operational update released on 8 May 2019.
The Company's results for May were materially ahead of internal budgets, prompting the directors to review and significantly raise their expectations for the second quarter of this year.
The better than anticipated performance reflects a continuing improvement in market conditions and faster-than-planned implementation of newly acquired hardware in furtherance of the Company's strategy to create a world-class mining service for institutional and enterprise-level customers.
In particular, the Company is pleased to report that:
●    mining yields from existing hardware in operation have improved in line with strongly rising crypto prices of roughly 49% since the last operational update of 8 May.
 
●    due to earlier than expected delivery of new mining gear, Argo is currently mining on 1,000 Z11 and 1,025 S17 Bitmain servers from its Quebec facilities, being a month ahead of the Company's original schedule.
 
●    additional machines have been ordered since our last announcement on May 13th, at a cost of £2.85m which will be in production in Q2 and Q3 2019. 
 
As a result of the above factors, the Company expects to generate approximately £685,000 of crypto assets in May, based on a Bitcoin (BTC) price of $8,575 USD as of 31 May. This is approximately 37% better than the Company's previous guidance provided in the shareholder circular of 18 April. The Company's cash operating costs in May were in line with its forecast at £280,000.
 
Notwithstanding any material change in trading conditions, Argo also expects its results for the second quarter of 2019 substantially to exceed its previous guidance.
 
The Company now anticipates generating the equivalent of 420 BTC of crypto assets on Argo's balance sheet by the end of Q2, which at $8,575 USD per BTC (being the BTC price as at 31 May 2019), amounts to approximately £2.85 million. This is approximately £1 million or 57% higher than the previously announced estimate of £1.81m, and reflects both a significant increase in cryptocurrency prices from 7 May 2019 and higher anticipated production levels by the Company's new and existing equipment.
 
Mike Edwards, executive chairman of Argo, said: "I am very pleased with our results and progress as we continue to implement our strategy in a cost conscious and disciplined manner. These results and forward guidance vindicate our strategy to expand rapidly as market conditions strengthen. Our timely actions, together with our ongoing investment in mining capability, means we will not only comfortably beat our original expectations but also position Argo for long term growth. We are excited about the future prospects for the sector and continue to be focused on bringing greater institutionalization and growth to the digital assets and blockchain technology ecosystem." 
 
 
 
For further information please contact:
 



Argo Blockchain








Mike Edwards
Executive Chairman
 
Neil Thapar
Financial Communications Advisor


Via Tancredi on +44 7812 211 403
 
 
 
+44 7876 455 323




Tancredi Intelligent Communication
Media Relations








 
Salamander Davoudi
salamander@tancredigroup.com
 
Georgia Hanias
Georgia@tancredigroup.com


                                                                                          +44 7957 549 906
 
 
+44 7812 211 403
 



 
About Argo:
Argo Blockchain plc is a global data centre business that provides a purpose-built and flexible platform for mining of leading cryptocurrencies for the enterprise-scale and institutional sectors worldwide from operational centres in Canada. The Company is headquartered in London, UK  and its  shares are listed on the main market of London Stock Exchange under the ticker: ARB.




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