Argo Blockchain PLC Q2 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Argo Blockchain Q2 2024 Earnings Summary

  • Revenue: $12.4 million, a 26% decline from Q1 2024 ($16.8 million); roughly flat compared to Q2 2023 ($12.6 million).
  • Bitcoin Mined: 188 BTC (approx. 2 BTC/day), down 41% from Q1 due to April 2024 halving event.
  • Mining Profit: $5 million, down from $6.4 million in Q1 2024.
  • Mining Margin: Improved to 41% in Q2 from 38% in Q1, helped by lower power prices, particularly at the Helios facility.
  • Average Direct Cost per BTC Mined: $38,989.
  • Adjusted EBITDA: $2.6 million vs $3.8 million in Q1 2024 and $1.6 million in Q2 2023.
  • Impairment Charge: $22 million non-cash charge due to decline in mining equipment values and changes in economics post-halving.
  • Debt Reduction: Paid off $35 million Galaxy loan ahead of schedule, reducing monthly amortization obligations and interest expense. Remaining debt includes $40 million baby bonds due Nov 2026 and a $1 million mortgage.
  • Cash Position: $4 million as of end of Q2, plus $8.3 million equity raise in July 2024.
  • Cost Efficiency: Non-mining expenses reduced 14% QoQ and by over 70% vs H2 2022.

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Operator: Argo Blockchain plc Investor Presentation. Throughout this recorded meeting, investors will be in a listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The Company may not be in a position to answer every question it received during the meeting itself, however, the Company can review all questions submitted today. Before we begin, I'd like to submit the following poll. I'd now like to hand to the management team from Argo Blockchain plc. Markella, good afternoon. Markella Zarifi: Good afternoon, Lily. Thank you very much. Before we begin, I would like to remind everyone that today's presentation remarks may contain forward looking statements. Please see our Form 20-F filed with the Securities and Exchange Commission for our full risk disclosures. With us today for our discussion of Q2 2024 results are Thomas Chippas, Argo's Chief Executive Officer; and Jim MacCallum, Argo's Chief Financial Officer. And now, I'll turn now over to Thomas for some introductory remarks. Thomas Chippas: Thanks, Markella. And thank you to everyone for joining us today. I'm excited to update you on our progress so far this quarter and over the first half of the year. Financial discipline and to leveraging operational excellence and growth continue to remain Argo's three priorities and guide us on a daily basis for the sustainable future of this company, whi

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