TIDMARB
RNS Number : 9837Q
Argo Blockchain PLC
02 November 2021
Press Release
02 November 2021
Argo Blockchain PLC
("Argo" or "the Company")
Q3 2021 Results and Conference Call
Argo Blockchain plc (LSE: ARB; NASDAQ: ARBK), ("Argo" or the
"Company"), a global leader in sustainable cryptocurrency mining
and blockchain, today announced its financial results for the
quarter ended September 30, 2021. All $ amounts are in United
States Dollars ("USD") and all GBP amounts are in British Pounds
("GBP"), unless otherwise stated.
-- Generated record revenue of $26.0 million (GBP19.3 million)
-- Record $17.3 million of net income and $28.2 million of
EBITDA (GBP12.9 million of net income and GBP21.0 million of
EBITDA)(1)
-- Mined 597 Bitcoin and Bitcoin Equivalents in Q3 2021
-- Completed ADR listing on Nasdaq
-- Construction of Helios mining facility in Dickens County, Texas underway
Argo generated record-setting revenue, net income and EBITDA of
$26.0 million, $17.3 million and $28.2 million, respectively, for
the third quarter of 2021 (GBP19.3 million, GBP12.9 million, and
GBP21.0 million, respectively). For the nine months ended September
30, 2021, the Company's revenue, net income and EBITDA were $67.9
million, $27.1 million and $49.8 million, respectively (GBP50.4
million, GBP20.1 million, and GBP36.9 million, respectively).
"From breaking ground on our sustainable cryptocurrency mining
facility in Dickens County, Texas to our public listing on Nasdaq
in the United States, this quarter has been pivotal as Argo
continues to scale," stated Peter Wall, Chief Executive Officer of
Argo Blockchain. "I am proud of the growth we experienced during
the quarter and believe Argo is strategically positioned to
continue this momentum as we build out our Helios facility in
Texas."
Texas Mining Facility Update
In July 2021, Argo broke ground on its renewable energy-focused
200-megawatt (MW) cryptocurrency mining facility in Dickens County,
Texas. The new Helios facility will bolster Argo's mining capacity
and is expected to add at least 20 new, full-time jobs in Dickens
County. The site gives Argo access to up to 800 MW of electrical
power and has garnered excitement and support from local community
members and government officials.
Bitcoin Mining
During the third quarter, Argo mined 597 Bitcoin and Bitcoin
Equivalent (together, BTC), bringing Argo's BTC holding to 1,836 as
of September 30, 2021. Argo has been able to achieve these results
while maintaining a gross margin of 120% and an industry-leading
mining margin of 85% with an average direct cost per BTC mined of
$6,293 (GBP4,673). On September 30, 2021, Argo executed a purchase
agreement for 20,000 Bitmain Antminer S19J Pro machines for the
mining facility it is building in Texas. The machines are expected
to be delivered starting Q2 2022 and will increase our total
hashrate capacity to approximately 3.7 Exahash, up from 1.075 at
the end of Q3 2021.
(1) Due to favorable changes in fair value of Bitcoin and
Bitcoin Equivalents in Q3 2021, gross profit and EBITDA exceeded
revenue in the period.
United States Public Listing on Nasdaq
Among the many milestones experienced throughout the quarter,
Argo completed its ADR listing on Nasdaq on September 23, 2021. The
Company has been publicly listed on the London Stock Exchange since
August 2018 and is now listed in both jurisdictions.
Earnings Conference Call
Argo will host a conference call to discuss its results at 08:00
ET/12:00 GMT tomorrow, Tuesday, November 2, 2021. The live webcast
of the call can be accessed via the Investor Meet Company
platform.
Investors can sign up to Investor Meet Company for free 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.
Forward-Looking Information
This press release contains forward-looking statements within
the meaning of applicable securities laws with respect to our
cryptocurrency mining facility in Texas. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Without limiting the generality of
the foregoing, forward-looking statements contained in this press
release specifically include the expectations of plans, strategies,
objectives, and anticipated financial and operating results of the
Company, including hash rates, the Company's mining program,
delivery schedules, future hashrates and other guidance included in
this press release. These statements are based on certain
assumptions made by the Company based on management's experience
and perception of historical trends, current conditions,
anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Company, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. Actual results could differ from those described herein
for a variety of reasons, including unanticipated delays in machine
delivery due to component supply shortages or other reasons, or
disruptions to the Company's current mining fleet that could reduce
future hashrate. 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.
Non-IFRS Measures
Bitcoin and Bitcoin Equivalent Mining Margin and EBITDA are
financial measures not defined by IFRS. We believe Bitcoin and
Bitcoin Equivalent Mining Margin and 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, EBITDA excludes interest
income (expense), taxes, depreciation and amortization, which are
important components of our IFRS net income/(loss). 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.
Operating and Financial Overview
Three Months Ended September Nine Months Ended September
30, 2021 30, 2021
------------------------------ -----------------------------
Figures in 000s except
per share and BTC mined $ GBP $ GBP
-------------------------------- ------------- --------------- ------------- --------------
Operating results
Bitcoin mined 597 597 1,480 1,480
Income statement
Revenues $25,979 GBP19,287 $67,852 GBP50,372
Direct costs (3,757) (2,790) (11,322) (8,404)
Depreciation of mining
equipment (3,249) (2,412) (9,646) (7,161)
Change in fair value of
digital currencies 11,725 8,705 3,094 2,297
Realized gain on sale
of digital currencies 512 380 807 599
-------------------------------- ------------- --------------- ------------- --------------
Gross Profit $31,210 GBP23,170 $50,785 GBP37,703
Operating costs and expenses
Consulting fees (812) (602) (1,222) (907)
Professional fees (307) (228) (866) (643)
General and administrative (555) (412) (2,675) (1,986)
Share based payment (1,734) (1,287) (3,845) (2,855)
Foreign exchange (1,963) (1,458) (1,374) (1,020)
-------------------------------- ------------- --------------- ------------- --------------
Operating profit $25,839 GBP19,183 $40,803 GBP30,292
Loss on sale of investment (1,010) (750) (1,010) (750)
Interest expense (273) (203) (826) (613)
Interest income - - - -
-------------------------------- ------------- --------------- ------------- --------------
Profit before taxation $24,556 GBP18,230 $38,967 GBP28,929
Income tax expense (7,212) (5,354) (11,905) (8,838)
-------------------------------- ------------- --------------- ------------- --------------
Profit after taxation $17,344 GBP12,876 $27,062 GBP20,091
Other comprehensive income (138) (102) (624) (463)
-------------------------------- ------------- --------------- ------------- --------------
Total comprehensive income
attributable to the equity
holders of the company $17,206 GBP12,774 $26,438 GBP19,628
Earnings per share attributable
to equity holders
Basic earnings per share $0.04 GBP0.03 $0.06 GBP0.04
Diluted earnings per share $0.04 GBP0.03 $0.05 GBP0.04
-------------------------------- ------------- --------------- ------------- --------------
The following table shows a reconciliation of Bitcoin and
Bitcoin Equivalent Mining Margin to gross margin, the most directly
comparable IFRS measure, for the three months ended September 30,
2021 and the nine months ended September 30, 2021.
Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2021
---------------------- ----------
Figures in 000s except per
share $ GBP $ GBP
---------------------------------- ---------- ---------- -------------------- ----------
Gross Profit $31,210 GBP23,170 $50,785 GBP37,703
Gross Margin 120% 120% 75% 75%
Depreciation of mining equipment 3,249 2,412 9,646 7,161
Change in fair value of digital
currencies (11,725) (8,705) (3,094) (2,297)
Realized gain on sale of
digital currencies (512) (380) (807) (599)
Crypto-currency management
fees (710) (527) (2,257) (1,675)
Mining Profit $21,512 GBP15,970 $54,273 GBP40,293
Bitcoin and Bitcoin Equivalent
Mining Margin 85% 85% 83% 83%
The following table shows a reconciliation of EBITDA to net
income, the most directly comparable IFRS measure, for the three
months ended September 30, 2021 and the nine months ended September
30, 2021.
Three Months Ended September Nine Months Ended
30, 2021 September 30, 2021
------------------------------ ---------------------
Figures in 000s except per
share $ GBP $ GBP
Profit before taxation $17,344 GBP12,876 $27,062 GBP20,091
Interest expense 273 203 826 613
Income tax expense 7,212 5,354 11,905 8,838
Depreciation/Amortization 3,418 2,537 9,964 7,398
--------------------------- ------------- --------------- --------- ----------
EBITDA $28,247 GBP20,970 $49,757 GBP36,940
(1) Due to favorable changes in fair value of Bitcoin and
Bitcoin Equivalents in Q3 2021, gross profit and EBITDA exceeded
revenue in the period.
*Dollar values translated from pound sterling into U.S. dollars
at the rate of GBP1.00 to $1.347, which was the noon buying rate of
the Federal Reserve Bank of New York on September 30, 2021.
This release contains inside information.
For further information please contact:
Argo Blockchain
Peter Wall via Tancredi +44 203 434 2334
Chief Executive
------------------------------
finnCap Ltd
------------------------------
Corporate Finance
Jonny Franklin-Adams
Tim Harper
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
------------------------------
Emma Valgimigli
Emma Hodges +44 7727 180 873
Salamander Davoudi +44 7861 995 628
argoblock@tancredigroup.com +44 7957 549 906
------------------------------
About Argo:
Argo Blockchain plc is a global leader in cryptocurrency mining
with one of the largest and most efficient operations powered by
clean energy. The Company is headquartered in London, UK and its
shares are listed on the Main Market of the London Stock Exchange
under the ticker: ARB and on the Nasdaq Global Select Market in the
United States under the ticker: ARBK.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTFLFEDLLLLIIL
(END) Dow Jones Newswires
November 02, 2021 03:00 ET (07:00 GMT)
Argo Blockchain (LSE:ARB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Argo Blockchain (LSE:ARB)
Historical Stock Chart
From Apr 2023 to Apr 2024
