TIDMARB
RNS Number : 7040X
Argo Blockchain PLC
07 January 2022
Press Release
07 January 2022
Argo Blockchain PLC
("Argo" or "the Company")
December 2021 Operational Update
Operational Update
Argo Blockchain plc, a global leader in cryptocurrency mining
(LSE: ARB; NASDAQ: ARBK), is pleased to provide the following
operational update for December 2021.
During the month of December, Argo mined 214 Bitcoin or Bitcoin
Equivalent (together, BTC) compared to 185 BTC in November. This
brings the total amount of BTC mined in 2021 to 2,045 BTC.
Based on daily foreign exchange rates and cryptocurrency prices
during the month, mining revenue in December amounted to GBP7.82
million [$10.55 million*] (November 2021: GBP8.29 million [$11.20
million*]).
Argo generated this income at a Bitcoin and Bitcoin Equivalent
Mining Margin of approximately 83% for the month of December
(November 2021: 86%).
At the end of December, the Company owned 2,595 Bitcoin or
Bitcoin Equivalent.
Helios Mining Facility Update
The Company is also pleased to provide the following update on
the construction of its 200MW flagship cryptocurrency mining
facility, Helios, in Dickens County, Texas. The construction of
Argo's facility remains on time and the main structure, outside
facade, and roof have now been completed. The next phase of
construction and build out of essential infrastructure are ongoing,
with a projected completion date in the first half of 2022.
Peter Wall, Chief Executive of Argo and interim Chairman, said:
"2021 has been a transformational year for both Argo and the
cryptocurrency sector. We began development on our mining facility
in Texas and we took Argo to NASDAQ. Our efforts allowed us to
expand our global presence and we look forward to the year ahead
and the opening of our mining facility in Dickens County,
Texas".
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 have 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
realized 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 Bitcoin and
Bitcoin Equivalent Mining Margin to gross margin, the most directly
comparable IFRS measure, for the months of November and December
2021.
Month Ended 30 November Month Ended 31 December
2021 2021
------------------------------------- ----------------------------
GBP $ GBP $
Gross (loss) (1,108,192) (1,108,192) (12,593,995) (17,008,110)
Gross Margin(1) (13%) (13%) (161%) (161%)
Depreciation of mining
equipment 1,203,238 1,624,965 1,444,614 1,950,942
Charge in fair value
of digital currencies 7,371,093 9,954,614 18,271,429 24,675,448
Realised loss on sale
of digital currencies 8,364 11,296 740,713 1,000,328
Crypto-currency management
fees(2) (340,561) (459,925) (1,388,635) (1,875,343)
Mining Profit 7,133,942 9,634,344 6,474,126 8,743,625
Bitcoin and Bitcoin
Equivalent Mining
Margin 86% 86% 83% 83%
---------------------------- ----------------- ------------------ ------------- -------------
(1) Due to unfavourable changes in fair value of Bitcoin and
Bitcoin Equivalents in November and December 2021 there was a
significant loss on change in fair value of digital currencies.
(2) The cryptocurrency management fees include the settlement
amount with Celsius and as such are higher than normal in December
2021.
*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.
Forward-Looking Information
This announcement contains inside information and
forward-looking include 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 proposes to
operate. Statements which include the words "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. 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
Chief Executive 434 2334
----------------------
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
----------------------
OTC Markets
----------------------
Jonathan Dickson +44 204 526 4581
jonathan@otcmarkets.com +44 7731 815 896
----------------------
Tancredi Intelligent Communication
UK & Europe Media Relations
----------------------
Emma Valgimigli
Emma Hodges
Salamander Davoudi +44 7727 180 873
Fabio Galloni-Roversi +44 7861 995 628
Monaco +44 7957 549 906
argoblock@tancredigroup.com +44 7888 672 701
----------------------
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.
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END
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