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Argo Blockchain PLC Announces 2024 Annual Results and Restoration of Listing

1. Argo Blockchain reported a net loss of $55.1 million in 2024. 2. Bitcoin mined decreased significantly from 1,760 to 755 year-over-year. 3. Revenues fell 7% to $47.1 million due to lower hash prices. 4. Operating costs reduced by 34%, improving some financial metrics. 5. The company is actively working on strengthening its balance sheet.

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Why Bearish?

The significant net loss and decreased mining output indicate ongoing financial challenges. Historical examples show that sustained losses and lower production directly impact stock value, evident in mining sector volatility.

How important is it?

Financial performance metrics, such as net loss and operational efficiency, are crucial for investor sentiment. The article’s detailed financial disclosures provide insights into ARBK's operational health and strategic direction, which can impact stock performance.

Why Short Term?

Immediate financial results and volatility post-Bitcoin halving will influence the market perception. Stocks of mining companies often react quickly to quarterly earnings announcements.

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Argo Blockchain plc (LSE:ARB)(NASDAQ:ARBK), is pleased to announce its audited results for the year ended 31 December 2024. All figures have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and are stated in U.S. dollars. The directors have adopted the going concern basis of accounting in the preparation of the annual financial statements; more detail can be found in the accounting policies. However, the directors note that the debt service requirements, lower operating margins, and the volatile economic and industry environment, indicate the existence of material uncertainties that may cast significant doubt regarding the applicability of the going concern assumption, and the auditors have made reference to this in their audit report and additional information is included in Note 3 to the fianncial statements.HighlightsTotal number of Bitcoin mined during 2024 was 755, or 2.1 Bitcoin per day (2023: 1,760, or 4.8 Bitcoin per day).Revenues of $47.1 million (2023: $50.6 million), a decrease of 7% from 2023, driven primarily by the reduced hashprice resulting from the Bitcoin halving.Mining margin of 33%, down from 43% in 2023. Similar to revenue, this decrease was largely attributable to the reduced hashprice resulting from the Bitcoin halving in April 2024.Reduced non-mining operating costs by 34% in 2024 compared to the prior year.Adjusted EBITDA of $5.7 million, compared to $7.7 million in 2023.Net loss of $55.1 million, compared to a net loss of $34.6 million in 2023. The net loss was primarily the result of a $31.5 million asset impairment, $15.0 million of amortization and $6.8 million of interest expense.Reduced interest expense by 41%, as a result of fully repaying the Galaxy debt during 2024.Net debt (cash less debt obligations) was reduced by $24.1 million from $55.1 million at 31 December 2023 to $31.0 million at 31 December 2024.As at 31 December 2024, the Company had $8.6 million of cash, compared to $7.4 million at 31 December 2023. As at 31 March 2025, the Company had a cash balance of $2.4 million. The decrease from December reflects the costs required for refurbishing machines, Helios power payment for December 2024, significantly reduced mining margins, and hosting deposits.Post-period highlightsThe Group signed hosting agreements with Merkle Standard LLC to host 9,315 miners at Merkle's Memphis, Tennessee location and up to 4,000 machines at its Washington State location. Approximately 1,232 units were sent to the Group's Baie Comeau facility. A further approximately 8,000 units (6,000 were sold after 31 March 2025) were sold for cash proceeds of approximately $2.0 million. Our go forward hashrate, reflective of the machine sales, is expected to be 1.7 exahash.During the month of April we continued the deployment of our Helios miners to our hosting sites and mined 13 Bitcoin. The deployment of these units will be completed by the end of May 2025.Commenting on the results, Justin Nolan, Argo Blockchain CEO, said, "The repayment of the Galaxy debt during 2024 was a major achievement for the team, as was the successful refurbishment and rehosting of the Helios fleet. We continue to work on strengthening the balance sheet and pursuing strategic options."The tables below reconcile Bitcoin and Bitcoin Equivalent Mining Margin to gross margin, the most directly comparable IFRS measure, and Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure:Year endedYear ended31-Dec31-Dec20242023$'000$'000Gross profit1,4573,101Depreciation of mining equipment14,17118,656Mining profit15,62821,757Bitcoin and Bitcoin Equivalent Mining Margin33%43%The following table shows a reconciliation of Adjusted EBITDA to net income/(loss), the most directly comparable IFRS measure, for the years ended 31 December 2024 and 31 December 2023.Year endedYear ended31-Dec31-Dec20242023$'000$'000Net loss(55,102)(34,637)Interest expense6,81011,556Depreciation / amortisation15,02420,129Income tax expense340-EBITDA(32,928)(2,952)Impairment of assets31,498855Impairment of intangible assets4681,082Loss/(gain) on sale of subsidiary and investments842(36)Loss on sale of fixed assets429-Loss/(gain) on disposal of intangible assets98(1,166)Foreign exchange(458)(1,914)Restructuring and transaction-related fees1,9764,969Share based payment charge3,7593,892Equity accounted loss from associate0716Write off of investment02,236Adjusted EBITDA5,6847,682Restoration of ListingThe Company would like to advise that, further to this announcement, it has now requested that the suspension of the Company's listing be lifted by the Financial Conduct Authority as soon as possible to enable trading of the Company's shares to resume.This announcement contains inside information.For further information please contact:Argo BlockchainInvestor Relations[email protected]Tennyson SecuritiesCorporate BrokerPeter Krens+44 207 186 9030Fortified SecuritiesJoint BrokerGuy Wheatley, CFA+44 7493 989014[email protected] Tancredi Intelligent CommunicationUK & 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 a mining facility in Quebec 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, visitwww.argoblockchain.com.Forward looking statementsThis announcement contains "forward-looking statements," which can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. The information in this announcement about future plans and objectives of the Company are forward-looking statements. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, market and other conditions, the principal risks and uncertainties listed in the risk factors set forth in our Annual Report and Financial Statements and Form 20-F for the year ended 31 December 2024.Please refer to the attached PDF document to view the full announcement:http://www.rns-pdf.londonstockexchange.com/rns/9888H_1-2025-5-9.pdfSOURCE: Argo Blockchain PLC

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