REG - Argo Blockchain PLC - November Operational Update

Argo BlockchainAnnouncement

09/12/2022 07:00

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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 £2.94 million [$3.46
million*](October 2022: £3.55 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 2022                                           Mont
                                                                                                                                                                                      h
                                                                                                                                                                                      Ende
                                                                                                                                                                                      d 30
                                                                                                                                                                                      Nove
                                                                                                                                                                                      mber
                                                                                                                                                                                      2022
                                                                       £(000s)                            $(000s)                                  £(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 2334

 Chief Executive
 finnCap Ltd
 Corporate Finance                   +44 207 220 0500

 Jonny Franklin-Adams

 Seamus Fricker

 Joint Corporate Broker

 Sunila de Silva
 Tennyson Securities
 Joint Corporate Broker              +44 207 186 9030

 Peter Krens
 OTC Markets
 Jonathan Dickson                    +44 204 526 4581

 jonathan@otcmarkets.com             +44 7731 815 896
 Tancredi Intelligent Communication

 UK & Europe Media Relations
 Salamander Davoudi                  +44 7957 549 906

 Fabio Galloni-Roversi Monaco        +44 7888 672 701

 Nasser Al-Sayed                     +44 7915 033 739

 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 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
(http://www.argoblockchain.com/) www.argoblockchain.com
(http://www.argoblockchain.com/) .

 

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