Mining Performance Beats Expectations

RNS Number : 1208E

Argo Blockchain PLC

02 July 2019

 

 PRESS RELEASE

 2 July 2019

Argo Blockchain PLC

('Argo' or 'the Company')

Business Update

Q2 2019 mining performance beats expectations

Argo, a UK-based provider of enterprise-scale crypto mining services, is pleased to provide the following trading update for June 2019:

●    mining yields from existing hardware in operation have improved in line with a strongly rising Bitcoin (BTC) price, which has increased by approximately 24% since the last operational update on 3 June 2019;

●   installation of new mining gear continues apace with 1,000 Z11 and 1,809 S17 Bitmain servers currently in production at Argo's Quebec facilities, ahead of the Company's original schedule;

●    2,500 additional mining machines will be delivered and in production by the end of Q3 2019, which is expected to increase total mining revenues considerably.

The Company now expects to generate 161 BTC, or £1.38m of cryptoassets, in June based on a BTC price of $10,817.16 USD as of 30 June 2019. This is an increase of approximately 101% from the Company's May mining results and represents a mining margin of roughly 81%. The Company considers that this demonstrates that the Company is one of the most efficient miners in the market.

As of 30 June 2019, and based on prevailing cryptoasset prices at $10,817.16 USD, the Company held the equivalent of approximately £3.07m in cryptoassets on its balance sheet.  This is approximately £220,000 or 7.7% higher than the previously announced revised estimate of £2.85m. This is the result of both a significant increase in cryptoasset prices from 3 June 2019 and higher than anticipated production levels by the Company's mining equipment.

Based on current market prices and mining difficulty rates, Argo expects to achieve a less than 4 month Return on Investment (ROI) on its current Antminer Z11 miners and a below 4.5 month ROI on its existing Antminer S17 hardware. This means the Company will have recouped the cost of almost all the mining rigs operational in Q2 by the end of Q3.

Mike Edwards, executive chairman of Argo, said: "Our better-than-expected mining performance reflects both improving industry conditions as well as Argo's business strategy, which has enabled it to rapidly ramp up operations and thereby take full advantage of the upturn. As a result, we enter the third quarter with a strong momentum to deliver further growth and improving mining efficiency."    

For further information please contact:

Argo Blockchain
Mike Edwards President & Executive Director Neil Thapar Financial Communications Adviser	via Tancredi [phone] [phone]
Mirabaud
Corporate Broker Peter Krens	[phone]
Tancredi Intelligent Communication Media Relations
Salamander Davoudi [e-mail]  Emma Valgimigli [e-mail]	[phone] [phone]

About Argo:

Argo Blockchain plc is a global data centre business that provides a purpose-built and flexible platform for mining of leading cryptocurrencies for the enterprise-scale and institutional sectors worldwide from operational centres in Canada. The Company is headquartered in London, UK and its shares are listed on the Main Market of London Stock Exchange under the ticker: ARB.

https://www.argomining.co/

See Argo's largest facility in Quebec:

https://youtu.be/LDWWaZ75Zbk

 

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