from Argo Blockchain PLC (LON:ARB)
Argo Blockchain PLC Announces Q3 2023 Results
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: https://www.investormeetcompany.com/argo-blockchain-plc/register-investor
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (UNAUDITED)
| Three months ended 30 Sept 2023 (unaudited) | Three months ended 30 Sept 2022 (unaudited) | Nine months ended 30 Sept 2023 (unaudited) | Nine months ended 30 Sept 2022 (unaudited) | ||||||||||||
$USD | $'000 | $'000 | $'000 | $'000 | |||||||||||
Revenues | 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 | ) | |||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
| As at | As at | |||||||
| 30 September 2023 (unaudited) | 31 December 2022 (unaudited) | |||||||
$USD | $'000 | $'000 | ||||||
ASSETS | ||||||||
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 | ||||||
EQUITY AND LIABILITIES | ||||||||