UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 6-K
_____________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2024
Commission File Number: 001-40816
_____________________
Argo Blockchain plc
(Translation of registrant’s name into English)
_____________________
Eastcastle House
27/28 Eastcastle Street
London W1W 8DH
England
(Address of principal executive office)
_____________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒
Form 40-F
☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
|
Exhibit
No.
1
|
Description
Argo
3rd Quarter Results dated 20 November 2024
|
Press
Release
20
November 2024
Argo Blockchain plc
("Argo"
or "the Company")
Q3 2024 Results (Unaudited)
Argo
Blockchain plc (LSE: ARB; NASDAQ: ARBK), a global leader in
cryptocurrency mining, announces its unaudited financial results
for the quarter ended 30 September 2024. All $ amounts are in
United States Dollars ("USD") unless otherwise stated.
Q3 2024 Financial Highlights:
●
Revenue of $7.5 million and $36.7 million for the three and nine
months ended 30 September 2024, respectively, compared to $10.4
million and $34.4 million for the prior year periods
●
Total Bitcoin ("BTC") mined in the quarter was 123, or 1.3 BTC per
day
●
Mining margin percentage of 8% and 33% for the three and nine
months ended 30 September 2024, respectively, compared to 58% and
47% for the prior year periods. The prior year periods benefited
from significant power credits due to economic
curtailments
●
Net loss of $6.3 million and $39.2 million for the three and nine
months ended 30 September 2024, respectively, compared to net loss
of $9.9 million and $26.1 million for the prior year
periods.
●
Adjusted EBITDA of negative $2.1 million and positive $3.9 for the
three and nine months ended 30 September 2024, respectively,
compared to positive EBITDA of $2.4 million and $5.2 million for
the prior year periods.
●
The Company ended the quarter with cash of $2.5 million and held
four BTC or BTC Equivalent.
●
Reduced debt by $12.4 million during the quarter, including the
full repayment of the Galaxy loan.
Post-period Updates:
● On 11 October 2024, the Company announced that
the class action lawsuit, Murphy vs. Argo Blockchain
plc et al, filed in the Eastern District of New
York on 26 January 2023, and transferred to
the Southern District of New York on 4
August 2023, was dismissed on 9 October 2024, with prejudice
and without leave to amend.
●
On 7 November 2024, the Company announced that it has entered a
non-binding letter of intent ("LOI") with BE Global Development
Limited ("BE"), a specialist in High Performance Computing (HPC)
solutions, to explore a significant expansion at the Company's
owned and operated Baie-Comeau facility.
●
On 7 November 2024, despite ongoing discussions with Galaxy to
renew the Company's current hosting agreement at Helios, the
Company was informed by Galaxy that it did not intend to renew the
contract beyond the current end date of 28 December 2024, as such
we are currently in discussions regarding our miners located at
Helios.
Management Commentary:
Thomas
Chippas, Chief Executive Officer of Argo, said: "The third quarter
was a difficult quarter for BTC miners, including Argo. It is
positive that we have seen improvement in BTC mining economics in
October, as noted in our October Operations Update, and that this
has continued into November which has also been strong. The High
Performance Computing hosting opportunity at our Baie Comeau
facility is exciting and demonstrates our ability to diversify our
capabilities beyond BTC into the growing AI computational market.
At this juncture for the industry, we are keenly focused on growth
opportunities that play to our deep expertise."
Earnings Conference Call
Argo
will host a conference call to discuss its results at 10:00 ET /
15:00 GMT today, Wednesday 20 November 2024. 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: https://www.investormeetcompany.com/argo-blockchain-plc/register-investor
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.
GROUP
STATEMENT OF COMPREHENSIVE INCOME
|
Figures in '000 except per share
|
Three Months Ended September 30,
2024
|
Three Months Ended September 30,
2023
|
Nine Months Ended September 30,
2024
|
Nine Months Ended September 30,
2023
|
|
|
$
|
$
|
|
|
|
|
|
|
|
|
|
Revenues
|
7,458
|
10,407
|
36,713
|
34,403
|
|
Direct
costs
|
(6,891)
|
(4,344)
|
(24,660)
|
(18,153)
|
|
Mining margin
|
567
|
6,063
|
12,053
|
16,250
|
|
Depreciation
of mining equipment
|
(2,252)
|
(6,181)
|
(11,919)
|
(18,228)
|
|
Change
in fair value of digital currencies
|
(15)
|
(635)
|
(40)
|
(146)
|
|
Gross profit (loss)
|
(1,700)
|
(753)
|
94
|
(2,124)
|
|
|
|
|
|
|
|
Operating
costs and expenses
|
(2,871)
|
(3,079)
|
(8,680)
|
(10,942)
|
|
Restructuring
and transaction related fees
|
(291)
|
(1,526)
|
(1,409)
|
(2,925)
|
|
Foreign
exchange
|
(299)
|
(144)
|
(293)
|
1,259
|
|
Loss on
hedging
|
(90)
|
-
|
(487)
|
-
|
|
Depreciation/amortisation
|
(216)
|
(528)
|
(664)
|
(1,179)
|
|
Share
based compensation
|
1,181
|
(920)
|
(2,413)
|
(2,809)
|
|
Operating profit (loss)
|
(4,286)
|
(6,950)
|
(13,852)
|
(18,720)
|
|
|
|
|
|
|
|
Gain on
sale of subsidiary (Mirabel)
|
-
|
-
|
3,528
|
-
|
|
Gain on
disposal of fixed assets
|
-
|
-
|
(429)
|
-
|
|
Finance
costs
|
(1,444)
|
(2,763)
|
(5,741)
|
(9,100)
|
|
Impairment
of intangible assets
|
(288)
|
-
|
(514)
|
-
|
|
Impairment
of PPE
|
(438)
|
-
|
(22,450)
|
-
|
|
Other
income
|
178
|
75
|
631
|
75
|
|
Equity
accounted loss from associate
|
-
|
(259)
|
-
|
(717)
|
|
Profit/(loss) before taxation
|
(6,278)
|
(9,897)
|
(38,827)
|
(28,462)
|
|
|
|
|
|
|
|
Tax
credit / (expense)
|
-
|
-
|
(340)
|
2,321
|
|
|
|
|
|
|
|
Profit/(loss) after taxation
|
(6,278)
|
(9,897)
|
(39,167)
|
(26,141)
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
Items
which may be subsequently reclassified to profit or
loss:
|
|
|
|
|
|
Currency translation reserve
|
-
|
699
|
-
|
(863)
|
|
Total other comprehensive income (loss), net of tax
|
-
|
699
|
-
|
(863)
|
|
Total comprehensive loss attributable to the equity holders of the
Company
|
(6,278)
|
(9,198)
|
(39,167)
|
(27,004)
|
|
Earnings per share attributable to equity owners
|
617,186
|
523,450
|
589,644
|
493,201
|
|
Basic loss per share
|
(0.01)
|
(0.02)
|
(0.07)
|
(0.05)
|
The income statement has been prepared on the basis that all
operations are continuing operations.
GROUP
STATEMENT OF FINANCIAL POSITION
|
|
As at September 30,
2024
|
|
As at December 31,
2023
|
|
Figures
in '000
|
$
|
|
$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Investments
at fair value through profit or loss
|
394
|
|
400
|
|
Intangible
fixed assets
|
239
|
|
888
|
|
Property,
plant and equipment
|
23,324
|
|
59,728
|
|
Total non-current assets
|
23,957
|
|
61,016
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Cash
and cash equivalents
|
2,524
|
|
7,443
|
|
Trade
and other receivables
|
2,970
|
|
3,835
|
|
Digital
assets
|
12
|
|
385
|
|
Assets
held for sale
|
-
|
|
3,261
|
|
Total current assets
|
5,506
|
|
14,924
|
|
|
|
|
|
|
Total assets
|
29,463
|
|
75,940
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
Equity
|
|
|
|
|
Share
Capital
|
842
|
|
712
|
|
Share
Premium
|
224,189
|
|
209,779
|
|
Share
based payment reserve
|
13,497
|
|
12,166
|
|
Currency
translation reserve
|
(31,507)
|
|
(30,129)
|
|
RSU/PSU
Reserve
|
3,832
|
|
-
|
|
Accumulated
surplus / (deficit)
|
(230,628)
|
|
(192.370)
|
|
Total equity
|
(19,775)
|
|
158
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade
and other payables
|
8,963
|
|
11,175
|
|
Loans
and borrowings
|
1,219
|
|
14,320
|
|
Corporation
Tax
|
423
|
|
-
|
|
Liabilities
held for sale
|
-
|
|
2,090
|
|
Total current liabilities
|
10,605
|
|
27,585
|
|
Non-current liabilities
|
|
|
|
|
Issued
debt - bond
|
38,633
|
|
38,170
|
|
Loans
|
-
|
|
10,027
|
|
Total liabilities
|
38,633
|
|
48,197
|
|
|
|
|
|
|
Total equity and liabilities
|
29,463
|
|
75,940
|
GROUP
STATEMENT OF CASH FLOWS
|
|
Nine Months Ended September 30,
2024
|
Nine Months Ended September 30,
2023
|
|
Figures in '000
|
$
|
$
|
|
Cash flows from operating activities
|
|
|
|
Loss
before tax
|
(38,671)
|
(28,462)
|
|
Adjustments for:
|
|
|
|
Depreciation/Amortisation
|
12,582
|
19,407
|
|
Foreign
exchange
|
9
|
(1,259)
|
|
Fair
value change in digital assets through profit or loss
|
40
|
635
|
|
Revenue
from digital assets
|
(36,713)
|
-
|
|
Impairment
of Intangible assets
|
515
|
-
|
|
Impairment
of Tangible assets
|
22,450
|
-
|
|
Realised
loss in digital assets
|
-
|
(489)
|
|
Loss on
hedging
|
397
|
-
|
|
Finance
cost
|
5,740
|
9,100
|
|
Proceeds
from Sale of Digital Assets
|
37,046
|
-
|
|
Interest
Income
|
(308)
|
-
|
|
Share
of equity accounted loss from associate
|
-
|
717
|
|
Share
based compensation
|
2,414
|
2,809
|
|
Gain on
Disposal of fixed assets
|
429
|
|
|
Gain on
sale of subsidiary
|
(3,397)
|
-
|
|
Cash flow from operating activities before working capital
changes
|
2,533
|
2,458
|
|
|
|
|
|
Working capital changes:
|
|
|
|
Increase
in trade and other receivables
|
457
|
(4,532)
|
|
Decrease
in trade and other payables
|
(2,013)
|
(117)
|
|
Income
taxes paid
|
-
|
306
|
|
Net cash used in operating activities
|
977
|
(1,885)
|
|
|
|
|
|
Investing activities
|
|
|
|
Interest
received
|
308
|
-
|
|
Proceeds
from sale of tangible fixed assets
|
894
|
(1,590)
|
|
Proceeds
from sale of intangibles and investments
|
6,119
|
989
|
|
Net cash used in investing activities
|
7,321
|
(601)
|
|
|
|
|
|
Financing activities
|
|
|
|
Proceeds
from borrowing
|
-
|
811
|
|
Increase
in loans
|
1,026
|
-
|
|
Loan
repayments
|
(26,393)
|
(8,417)
|
|
Interest
paid
|
(4,639)
|
(8,015)
|
|
Proceeds
from shares issued - net of issue costs
|
17,677
|
7,518
|
|
Net cash generated used in financing activities
|
(12,329)
|
(8,103)
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
(4,031)
|
(10,589)
|
|
Effect
of foreign exchange on cash
|
(888)
|
(1,516)
|
|
Cash
and cash equivalents, beginning of period
|
7,443
|
20,092
|
|
Cash
and cash equivalents at end of period
|
2,524
|
7,987
|
|
|
|
|
The table below reconciles Adjusted EBITDA to net income/(loss),
the most directly comparable IFRS measure, for the three months
ended 30 September 2024 and
three months ended 30 September 2023.
|
|
Three Months Ended September 30,
2024
|
Three Months Ended September 30,
2023
|
Nine Months Ended September 30,
2024
|
Nine Months Ended September 30,
2023
|
|
Figures
in '000
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
Net income/(loss)
|
(6,278)
|
(9,897)
|
(39,167)
|
(26,141)
|
|
|
|
|
|
|
|
Interest
expense
|
1,444
|
2,763
|
5,741
|
9,100
|
|
Depreciation
/ amortisation
|
2,468
|
6,709
|
12,583
|
19,407
|
|
Income
|
-
|
-
|
340
|
(2,321)
|
|
EBITDA
|
(2,366)
|
(425)
|
(20,503)
|
45
|
|
Restructuring
and transaction related fees
|
291
|
1,526
|
1,409
|
2,925
|
|
Foreign
exchange gain
|
299
|
144
|
293
|
(1,259)
|
|
Share
based payment charge
|
(1,181)
|
920
|
2,413
|
2,809
|
|
Impairment
of intangible assets
|
288
|
-
|
514
|
-
|
|
Impairment
of PPE
|
438
|
-
|
22,450
|
-
|
|
Loss on
disposal of fixed assets
|
-
|
-
|
429
|
-
|
|
Gain on
sale of investment
|
-
|
-
|
(3,528)
|
-
|
|
Loss on
hedging
|
90
|
-
|
487
|
-
|
|
Equity
accounted loss from associate
|
-
|
259
|
-
|
717
|
|
Adjusted EBITDA
|
(2,141)
|
2,424
|
3,964
|
5,237
|
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 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 www.argoblockchain.com.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
Date:
20 November, 2024
|
ARGO BLOCKCHAIN PLC
By:
/s/ Jim
MacCallum
Name:
Jim MacCallum
Title:
Chief Financial Officer
|
Argo Blockchain (NASDAQ:ARBKL)
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