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Argo Blockchain PLC Announces Q3 2023 Results

Tuesday, 14 November 2023 02:00 AM

Argo Blockchain PLC

Q3 2023 Results

LONDON, UK / ACCESSWIRE / November 14, 2023 / Argo Blockchain plc ("Argo" or "the Company"), a global leader in cryptocurrency mining (LSE:ARB)(NASDAQ:ARBK), is pleased to announce its results for the quarter ended 30 September 2023.

Financial Highlights ($USD)

  • Accrued $4.4 million in power credits from economic curtailment at Helios during periods of high electricity prices, which led to an increase in mining margin from 36% in Q2 2023 to 58% in Q3 2023
  • Decreased average direct cost per Bitcoin mined by 33% from $17,566 per Bitcoin in Q2 2023 to $11,736 per Bitcoin in Q3 2023
  • Reduced recurring non-mining operating expenses by 11% in Q3 2023 compared to the prior quarter
  • Achieved a positive Adjusted EBITDA of $3.1 million for the quarter (Adjusted EBITDA of $5.4 million for the nine month period ending 30 September 2023)
  • Mined a total of 370 Bitcoin and Bitcoin Equivalents (together, "BTC") during the quarter and generated $10.4 million of revenue
  • Reduced debt owed to Galaxy Digital from $32 million to $27 million and ended the quarter with $70 million of debt outstanding
  • Recorded a one-time non-cash charge of $1.2 million related to prior period sales taxes owed to the Canadian tax authorities based on new tax regulations
  • Net loss was $9.9 million for Q3 2023
  • The Company ended September 2023 with $8.0 million of cash and 32 BTC on its balance sheet.

Operating Highlights

  • During the quarter, the Company completed the deployment of its BlockMiner machines, representing approximately 0.3 EH/s in aggregate across its two Quebec facilities
  • The deployment of the BlockMiner machines increased the Company's total hashrate capacity to 2.8 EH/s
  • The Company is involved in advanced discussions to sell certain non-core assets, and it continues to evaluate options for further reducing debt

Management Commentary

Argo's interim Chief Executive Officer, Seif El-Bakly, said, "I am pleased with Argo's operating and financial performance during the third quarter. The ability of our mining machines to curtail operations at Helios during periods of high electricity prices allowed us to generate significant power credits. These power credits enabled us to achieve a fleet-wide all-in direct cost of 3.5 - 4 cents per kilowatt hour for the quarter, which contributed to a higher mining margin and higher Adjusted EBITDA compared to the prior quarter."

Q3 Results Management Call

Argo will host a conference call to discuss its results at 10:00 ET / 15:00 GMT on Tuesday, 14 November 2023. The conference call is open to all existing and potential shareholders, and the live webcast of the call can be accessed via the Investor Meet Company platform. Questions can be submitted via the Investor Meet Company dashboard during the live presentation.

Investors can sign up to Investor Meet Company and add Argo Blockchain via the following link:


Three months ended
30 Sept 2023
Three months ended
30 Sept 2022
Nine months ended
30 Sept 2023
Nine months ended
30 Sept 2022
$'000 $'000 $'000 $'000

10,407 13,097 34,403 47,741
Direct costs
(8,770) (7,852) (23,863) (18,055)
Power credits
4,426 118 5,710 118
Mining margin
6,063 5,363 16,250 29,804

Depreciation of mining equipment
(6,181) (763) (18,228) (14,844)
Change in fair value of digital currencies
(635) (2,491) (146) (57,502)
Gross margin
(753) 2,109 (2,124) (42,542)

Operating costs and expenses
(3,079) (11,541) (10,942) (23,195)
Restructuring and one-time items
(1,526) - (2,925) -
Foreign exchange
(144) 2,232 1,259 15,551
Depreciation and amortisation
(528) (4,729) (1,179) (5,852)
Share based payment
(920) (2,754) (2,809) (6,408)
Operating loss
(6,950) (14,683) (18,720) (62,446)

Finance cost
(2,763) (2,560) (9,100) (7,071)
Other income
75 (798) 75 (994)
Equity accounted loss from associate
(259) - (717) (636)
Revalue of contingent consideration
- - - 5,239
Loss before taxation
(9,897) (18,041) (28,462) (65,908)

Tax recovery
- - 2,321 8,286
Net loss
(9,897) (18,041) (26,141) (57,622)
Currency translation reserve
699 (30,792) (863) (36,518)
Equity accounted OCI from associate
- 173 - (10,620)
Fair value loss on intangible digital assets
- 537 - -
Total other comprehensive income (loss)
699 (30,082) (863) (47,138)

Total comprehensive loss
(9,198) (48,123) (27,004) (104,760)

Weighted Average Shares outstanding '000
523,450 477,825 493,201 472,174
Basic earnings per share*
$(0.02) $(0.04) $(0.05) $(0.12)


As at As at

30 September 2023
31 December 2022
$'000 $'000

Non-current assets

Investments at fair value through income and loss
426 414
Investments accounted for using the equity method
2,198 2,863
Intangible assets
785 2,103
Property, plant and equipment
63,923 76,992
Right of use assets
526 525
Total non-current assets
67,858 82,897
Current assets
Trade and other receivables
8,033 6,802
Digital assets
139 443
Cash and cash equivalents
7,987 20,092
Total current assets
16,159 27,337

Total assets
84,017 110,234
Share capital
710 634
Share premium
209,545 202,103
Share based payment reserve
11,321 8,528
Foreign currency translation reserve
(29,758) (28,895)
Accumulated surplus (deficit)
(194,764) (168,623)
Total equity
(2,946) 13,747
Current liabilities
Trade and other payables
9,802 10,028
Loans and borrowings
13,735 11,605
Deferred tax
3,820 2,648
Total current liabilities
27,357 24,281
Non - current liabilities
Deferred tax
4,806 7,941
Issued debt - bond
38,077 37,809
Loans and borrowings
16,180 25,916
Lease liability
543 540
Total non-current liabilities
59,606 72,206

Total equity and liabilities
84,017 110,234


Nine months ended

30 September 2023
Cash flows from operating activities

Loss before tax
Adjustments for:

Depreciation and amortisation
Foreign exchange movements
Finance cost
Fair value change in digital assets
Realised loss in digital assets
Share of equity accounted loss from associate
Share based payment expense
Working capital changes:

Increase in trade and other receivables
Decrease in trade and other payables
Decrease in digital assets
Net cash flow (used in)/from operating activities
Investing activities

Proceeds from sale of intangibles/investments
Purchase of tangible fixed assets
Net cash used in investing activities
Financing activities

Proceeds from borrowings
Loan repayments
Interest paid
Proceeds from shares issued
Net cash from (used in)/from financing activities
Net decrease in cash and cash equivalents
Effect of foreign exchange changes in cash
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

Non-IFRS Measures

The following table shows a reconciliation of mining margin percentage to gross margin, the most directly comparable IFRS measure, for the periods ended 30 September 2023 and 30 September 2022.

Three months ended Three months ended Nine months ended Nine months ended

30 September 2023 30 September 2022 30 September 2023 30 September 2022

(unaudited) (unaudited) (unaudited) (unaudited)
$'000 $'000 $'000 $'000

Gross margin
(753) 2,109 (2,124) (42,542)
Gross margin percentage
(7%) 16% (6%) (89%)
Depreciation of mining equipment
6,181 763 18,228 14,844
Change in fair value of digital currencies
635 2,491 146 57,502

Mining margin
6,063 5,363 16,250 29,804
Mining margin percentage
58% 41% 47% 62%

The following table shows a reconciliation of Adjusted EBITDA to net (loss) / income, the most directly comparable IFRS measure, for the periods ended 30 September 2023 and 30 September 2022.

Three months ended Three months ended Nine months ended Nine months ended

30 September 2023 30 September 2022 30 September 2023 30 September 2022

(unaudited) (unaudited) (unaudited) (unaudited)
$'000 $'000 $'000 $'000
Net loss
(9,897) (18,041) (26,141) (57,622)
Interest expense
2,763 2,560 9,100 7,071
Depreciation and amortisation
6,709 5,492 19,407 20,696
Income tax
- - (2,321) (8,286)
Restructuring and one-time items
1,526 - 2,925 -
Foreign exchange
144 (2,232) (1,259) (15,551)
Share based payment
920 2,754 2,809 6,408
Change in fair value of digital currencies
635 2,491 146 57,502
Equity accounting loss from associate
259 - 717 636
Adjusted EBITDA
3,059 (6,976) 5,383 10,854

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.

For further information please contact:

Argo Blockchain

Investor Relations

[email protected]

Tennyson Securities

Corporate Broker

Peter Krens

+44 207 186 9030

Fortified Securities

Joint Broker

Guy Wheatley, CFA

+44 7493 989014

[email protected]

Tancredi Intelligent Communication

UK & Europe Media Relations

[email protected]

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

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 [email protected] or visit

SOURCE: Argo Blockchain PLC

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