Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40816 |
Entity Registrant Name | ARGO BLOCKCHAIN PLC |
Entity Incorporation, State or Country Code | X0 |
Entity Address, Address Line One | Eastcastle House |
Entity Address, Address Line Two | 27/28 Eastcastle Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W1W 8DH |
Entity Address, Country | GB |
Entity Common Stock, Shares Outstanding | 536,963,471 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001841675 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Auditor Name | PKF Littlejohn LLP |
Auditor Location | London, England |
Auditor Firm ID | 2814 |
American Depository Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depository Shares, each representing ten ordinary shares |
Trading Symbol | ARBK |
Security Exchange Name | NASDAQ |
Senior Notes [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | 8.75% Senior Notes due 2026 |
Trading Symbol | ARBKL |
Security Exchange Name | NASDAQ |
Common stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary shares, nominal value of £0.001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Eastcastle House |
Entity Address, Address Line Two | 27/28 Eastcastle Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W1W 8DH |
Entity Address, Country | GB |
City Area Code | +44 |
Local Phone Number | 20 788 400 3403 |
Contact Personnel Name | Jim MacCallum |
GROUP STATEMENT OF COMPREHENSIV
GROUP STATEMENT OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
GROUP STATEMENT OF COMPREHENSIVE INCOME | |||
Revenues | $ 50,558,000 | $ 58,583,000 | $ 98,748,000 |
Power and hosting costs | (35,964,000) | (26,759,000) | (15,185,000) |
Power Credits | 7,163,000 | 0 | |
Change in fair value of digital currencies | 738,000 | (53,978,000) | 2,167,000 |
Depreciation - mining hardware | (18,656,000) | (20,469,000) | (14,339,000) |
Gross profit (loss) | 3,839,000 | (42,623,000) | 71,391,000 |
Operating costs | (19,345,000) | (34,057,000) | (11,743,000) |
Gain on hedging | 2,097,000 | ||
Share based payment charge | (3,892,000) | (6,096,000) | (2,579,000) |
Operating loss | (19,398,000) | (80,679,000) | 57,069,000 |
Gain/(loss) on sale of investments | 36,000 | (837,000) | |
Loss on sale of subsidiary | (55,418,000) | ||
Write off of investment | (2,236,000) | ||
Loss on disposal of fixed assets | (23,228,000) | 244,000 | |
Investment fair value movement | (406,000) | ||
Finance costs | (11,556,000) | (22,661,000) | (2,935,000) |
Other income | 346,000 | 3,726,000 | |
Impairment of tangible fixed assets | (855,000) | (55,838,000) | |
Gain on disposal of intangible assets | 428,000 | ||
Impairment of intangible assets | (1,082,000) | (5,155,000) | |
Equity accounted loss from associate | (716,000) | (6,027,000) | (1,594,000) |
Revaluation of contingent consideration | 4,994,000 | 314,000 | |
Loss before taxation | (35,033,000) | (240,692,000) | 52,261,000 |
Tax credit (expense) | 11,731,000 | (11,319,000) | |
Loss after taxation | (35,033,000) | (228,961,000) | 40,942,000 |
Other comprehensive income | |||
Currency translation reserve | (779,000) | (20,639,000) | (8,834,000) |
Equity accounted OCI from associate | (8,744,000) | 8,744,000 | |
Fair value reserve | (551,000) | 551,000 | |
Total other comprehensive loss | (779,000) | (29,934,000) | 461,000 |
Total comprehensive loss attributable to the equity holders of the Company | $ (35,812,000) | $ (258,895,000) | $ 41,403,000 |
Loss per share attributable to equity owners (cents) | |||
Basic earnings/(loss) per share | $ (0.07) | $ (0.48) | $ 0.10 |
Diluted earnings/(loss) per share | $ (0.07) | $ (0.48) | $ 0.1 |
GROUP STATEMENT OF FINANCIAL PO
GROUP STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | |||
Investments at fair value through income or loss | $ 400 | $ 414 | $ 543 |
Investments accounted for using the equity method | 2,863 | 18,642 | |
Intangible fixed assets | 888 | 2,103 | 7,560 |
Property, plant and equipment | 59,728 | 76,991 | 150,571 |
Right of use assets | 525 | 472 | |
Total non-current assets | 61,016 | 82,896 | 177,788 |
Current assets | |||
Trade and other receivables | 2,480 | 823 | 10,072 |
Prepaids | 1,355 | 5,979 | 75,409 |
Digital assets | 385 | 443 | 108,956 |
Cash and cash equivalents | 7,443 | 20,092 | 15,923 |
Current assets | 11,663 | 27,337 | 210,360 |
Assets Held for sale | 3,261 | ||
Total current assets | 14,924 | 27,337 | 210,360 |
Total assets | 75,940 | 110,233 | 388,148 |
Equity | |||
Common Stock | 712 | 634 | 622 |
Additional paid-in capital | 209,779 | 202,103 | 196,911 |
Share based payment reserve | 12,166 | 8,528 | 2,531 |
Currency translation reserve | (30,129) | (29,350) | (8,711) |
Fair value reserve | 551 | ||
Other comprehensive income of equity accounted associates | 8,744 | ||
Accumulated surplus (loss) | (192,370) | (157,337) | 71,624 |
Total equity | 158 | 24,578 | 272,272 |
Current liabilities | |||
Trade and other payables | 11,175 | 9,780 | 20,566 |
Income Tax | 10,360 | ||
Deferred Tax | 386 | ||
Contingent consideration | 10,889 | ||
Loans and Borrowings | 14,320 | 11,605 | 31,558 |
Lease liability | 5 | 10 | |
Current liabilities | 25,495 | 21,390 | 73,769 |
Liabilities held for sale | 2,090 | ||
Total current liabilities | 27,585 | 21,390 | 73,769 |
Non-current liabilities | |||
Deferred tax | 730 | ||
Issued debt - bond | 38,170 | 37,809 | 36,303 |
Loans | 10,027 | 25,916 | 4,575 |
Lease liability | 540 | 499 | |
Total liabilities | 75,782 | 85,655 | 115,876 |
Total equity and liabilities | $ 75,940 | $ 110,233 | $ 388,148 |
GROUP STATEMENT OF CHANGES IN E
GROUP STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock | Additional paid in Capital | Currency translation reserve | Share based payment reserve | Fair Revaluation Reserve | Other comprehensive income of associates | Accumulated surplus / (deficit) | Total |
Balance at the beginning at Dec. 31, 2020 | $ 403 | $ 1,724 | $ 123 | $ 97 | $ 30,682 | $ 33,029 | ||
Total comprehensive loss for the period: | ||||||||
Loss for the period | 40,942 | 40,942 | ||||||
Other comprehensive loss | (8,834) | $ 551 | $ 8,744 | 461 | ||||
Total comprehensive loss for the period | (8,834) | 551 | 8,744 | 40,942 | 41,403 | |||
Transactions with equity owners: | ||||||||
Common Stock Issued | 219 | 195,187 | 195,406 | |||||
Share based compensation charge | 2,579 | 2,579 | ||||||
Common stock options/warrants exercised | (145) | (145) | ||||||
Total transactions with equity owners | 219 | 195,187 | 2,434 | 197,840 | ||||
Balance at the end at Dec. 31, 2021 | 622 | 196,911 | (8,711) | 2,531 | 551 | 8,744 | 71,624 | 272,272 |
Total comprehensive loss for the period: | ||||||||
Loss for the period | (228,961) | (228,961) | ||||||
Other comprehensive loss | (20,639) | (551) | (8,744) | (29,934) | ||||
Total comprehensive loss for the period | (20,639) | $ (551) | $ (8,744) | (228,961) | (258,895) | |||
Transactions with equity owners: | ||||||||
Common Stock Issued | 12 | 5,192 | 5,204 | |||||
Share based compensation charge | 6,096 | 6,096 | ||||||
Common stock options/warrants exercised | (99) | (99) | ||||||
Total transactions with equity owners | 12 | 5,192 | 5,997 | 11,201 | ||||
Balance at the end at Dec. 31, 2022 | 634 | 202,103 | (29,350) | 8,528 | (157,337) | 24,578 | ||
Total comprehensive loss for the period: | ||||||||
Loss for the period | (35,033) | (35,033) | ||||||
Other comprehensive loss | (779) | (779) | ||||||
Total comprehensive loss for the period | (779) | (35,033) | (35,812) | |||||
Transactions with equity owners: | ||||||||
Common Stock Issued | 78 | 7,676 | 7,754 | |||||
Share based compensation charge | 3,892 | 3,892 | ||||||
Share RSUs vested | (254) | (254) | ||||||
Total transactions with equity owners | 78 | 7,676 | 3,638 | 11,392 | ||||
Balance at the end at Dec. 31, 2023 | $ 712 | $ 209,779 | $ (30,129) | $ 12,166 | $ (192,370) | $ 158 |
GROUP STATEMENT OF CASHFLOWS
GROUP STATEMENT OF CASHFLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Loss before tax | $ (35,033) | $ (240,692) | $ 52,261 |
Adjustments for: | |||
Depreciation and amortisation | 20,129 | 29,003 | 15,318 |
Foreign exchange movements | (1,597) | (21,337) | 784 |
Loss on disposal of tangible assets | 23,228 | ||
Finance cost | 11,556 | 22,662 | 2,851 |
Loss on sale of subsidiary and investment | 55,418 | 837 | |
Fair value change in digital assets through profit or loss | (738) | 55,555 | (2,166) |
Revenue from digital assets | (50,558) | (60,172) | (106,902) |
Impairment of intangible digital assets | 654 | 5,548 | 712 |
Impairment of property, plant and equipment | 855 | 55,838 | |
Investment fair value movement | 406 | (244) | |
Write off of investment | 2,236 | ||
Share of loss from associate | 716 | 6,027 | 1,594 |
Non-cash settlement of management fees | (2,077) | ||
Gain on sale of investment | (36) | ||
Revaluation of contingent consideration | (4,994) | (314) | |
Derecognition of contingent consideration | (468) | ||
Hedging gain | (2,097) | ||
Purchase of digital assets | (19,973) | ||
Proceeds from sale of digital assets | 51,866 | 114,646 | 15,048 |
Stock based compensation expense | 3,892 | 6,096 | 2,579 |
Working capital changes: | |||
(Increase)/decrease in trade and other receivables | (1,152) | (26,150) | (18,136) |
Increase/(decrease) in trade and other payables | 1,041 | (5,576) | 16,352 |
Net cash generated from operating activities | 3,831 | 13,409 | (41,944) |
Investing activities | |||
Investments at fair value through profit or loss | (293) | ||
Investment in associate | (9,785) | ||
Acquisition of subsidiary, net of cash acquired | (884) | ||
Mining equipment prepayment | (63,113) | ||
Cash transferred on disposal of subsidiary | (1,678) | ||
Proceeds from sale of investment | 50 | 1,027 | |
Purchase of tangible fixed assets | (1,112) | (108,047) | (105,093) |
Proceeds from disposal of tangible fixed assets | 12,404 | ||
Net cash used in investing activities | (1,062) | (97,321) | (178,141) |
Financing activities | |||
Increase in loans | 1,429 | 96,995 | 29,595 |
Lease payments | (93) | (9,820) | |
Loan repayments | (14,064) | (1,592) | |
Interest paid | (10,661) | (22,661) | (162) |
Proceeds from issue of loan in conjunction with the disposal of subsidiary | 9,936 | ||
Proceeds from debt issue | 35,808 | ||
Proceeds from common stock issued - net of issue costs | 7,518 | 179,233 | |
Net cash (used in) generated from financing activities | (15,778) | 84,177 | 233,062 |
Net (decrease) increase in cash and cash equivalents | (13,009) | 265 | 12,977 |
Effect of foreign exchange on cash and cash equivalents | 360 | 3,904 | 161 |
Cash and cash equivalents at beginning of period | 20,092 | 15,923 | 2,785 |
Cash and cash equivalents at end of period | 7,443 | 20,092 | 15,923 |
Net debt | |||
Current loans and borrowings | (14,320) | (11,605) | (31,558) |
Non-current issued debt - bonds | (38,170) | (37,809) | (36,303) |
Non-current loans and borrowings | (10,027) | (25,916) | (4,575) |
Lease liability | (545) | ||
Cash and cash equivalents | 7,443 | 20,092 | $ 15,923 |
Total net debt | $ (55,074) | $ (55,783) |
GROUP STATEMENT OF CASHFLOWS (P
GROUP STATEMENT OF CASHFLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
GROUP STATEMENT OF CASHFLOWS | |
Prepayments for mining assets utilised during the period | $ 4,118,000 |
COMPANY INFORMATION
COMPANY INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
COMPANY INFORMATION | |
COMPANY INFORMATION | 1. Argo Blockchain PLC (“the company”) is a public company, limited by shares, and incorporated in England and Wales. The registered office is Eastcastle House, 27-28 Eastcastle Street, London, W1W 8DH. The company was incorporated on 5 December 2017 as GoSun Blockchain Limited and changed its name to Argo Blockchain Limited on 21 December 2017. Also on 21 December 2017, the company re-registered as a public company, Argo Blockchain plc. Argo Blockchain plc acquired a 100% subsidiary, Argo Innovation Labs Inc. (together “the Group”), incorporated in Canada, on 12 January 2018. On 4 March 2022 the Group acquired 100% of the share capital of DPN LLC and was merged into new US entity Argo Innovation Facilities (US) Inc (also 100% owned by Argo Blockchain plc). On 11 May 2022 the Group acquired 100% of the share capital of 9377-2556 Quebec Inc and 9366-5230 Quebec Inc. These are held by Argo Innovation Labs Inc. (Canada). On 22 November 2022, the Group formed Argo Operating US LLC and Argo Holdings US Inc. On 21 December 2022, Argo Innovation Facilities (US) Inc became Galaxy Power LLC. On 28 December 2022, the Group sold Galaxy Power LLC. The principal activity of the group is that of Bitcoin mining. The common shares of the Group are listed under the trading symbol ARB on the London Stock Exchange. The American Depositary Receipt of the Group are listed under the trading symbol ARBK on Nasdaq. The Group bond is listed on the Nasdaq Global Select Market under the trading symbol ARBKL. The financial statements cover the year ended 31 December 2023. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2023 | |
BASIS OF PREPARATION | |
BASIS OF PREPARATION | 2. The financial statements have been prepared in accordance with international financial reporting standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Standards Interpretations Committee (“IFRIC”). The financial statements have been prepared under the historical cost convention, except for the measurement to fair value certain financial and digital assets and financial instruments as described in the accounting policies below. During 2023, the Group changed its reporting currency to US dollars as further described in Note 3. Monetary amounts in these financial statements are rounded to the nearest thousand US dollars. Argo Blockchain PLC’s functional currency is GBP. Argo Innovations Labs Inc., 9377-2556 Quebec Inc, and 9366-5230 Quebec Inc.’s functional currency is Canadian Dollars; Argo Operating US LLC and Argo Holdings US Inc.’s functional currency is United States Dollars; all entries from these entities are presented in the Group’s presentational currency of US dollars. This change in accounting policy applied retrospectively requires a third balance sheet as at the beginning of the preceding comparative period to be reported Where the subsidiary's functional currency is different from the parent, the assets and liabilities presented are translated at the closing rate as at the Statement of Financial Position date. Income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions). Critical accounting judgements and key sources of estimation uncertainty The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty are disclosed in Note 6. Prior year restatement The 2022 income tax accounting was completed based on preliminary information at the time of the financial statement completion. When updating the income taxes for 2023 it was determined that the 2022 estimates were inaccurate and have been restated. The impact on the 2022 financial statements are as follows: Income tax recovery increased by $11,285,000 from $446,000 to $11,731,000 . Cumulative translation adjustment increased by $455,000 from $20,184,000 to $20,639,000 Net loss decreased by $11,285,000 from a loss of $240,246,000 to a loss of $228,961,000 . Deferred tax liability decreased by $10,589,000 from $10,589,000 to $ nil . Statement of Cashflows reclassification Proceeds from the sale of digital assets were reclassified from investing cashflows to operating cashflows in the 2022 Statements of Cashflows, amongst other presentational changes in 2022 in order to ensure comparability with the presentation and classification in the current year. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTING POLICIES | |
ACCOUNTING POLICIES | 3. The principal accounting policies applied in the preparation of these consolidated financial statements are below. Change in Presentation Currency The Group changed its presentational currency to US Dollars during 2023 due to the fact its revenues, direct costs, capital expenditures and debt obligations are predominantly denominated in US Dollars. In order to satisfy the requirements of IAS 21 with respect to a change in the presentation currency, the financial information as previously reported in the Group’s Annual Reports have been restated from GBP into US Dollars using the procedures outlined below: ● Assets and liabilities were translated to US Dollars at the closing rates of exchange at each respective balance sheet date ● Share capital, share premium and other reserves were translated at the historic rates prevailing at the dates of transactions ● Income and expenses were translated to US Dollars at an average rate at each of the respective reporting years ● Differences resulting from the retranslation were taken to reserves ● All exchange rates used were extracted from the Group’s underlying financial records Going Concern The preparation of consolidated financial statements requires an assessment on the validity of the going concern assumption. On 28 December 2022, the Group announced a series of transactions with Galaxy Digital Holdings, Ltd. (“Galaxy”) that improved the Group’s liquidity position and enabled the Group to continue its mining operations. As part of the transactions, Argo sold the Helios facility and real property in Dickens County, Texas to Galaxy for $65 million and refinanced existing asset-backed loans via a new $35 million, three-year asset-backed loan with Galaxy. The transactions reduced total indebtedness by $41 million and allowed Argo to simplify its operating structure. During 2023 and through March 31, 2024, the Group has repaid a significant portion of the Galaxy debt by making its scheduled amortization payments, sweeps on equity raises, and through the sale of non-core assets. In addition, an equity raise completed in January 2024 provided the Group with additional cash resources. This has strengthened the Group’s balance sheet and liquidity position. However, material uncertainties exist that may cast significant doubt regarding the Group’s ability to continue as a going concern and meet its liabilities as they come due. The significant uncertainties are: 1. The Group’s debt service obligations as of reporting date are approximately $18 million (Galaxy principal and interest on Galaxy and the bonds) from 31 March 2024 to 30 June 2025. 2. The Group’s exposure to Bitcoin prices, power prices, and hashprice, each of which have shown volatility over recent years and have a significant impact on the Group’s future profitability. The Group may have difficulty meeting its liabilities if there are significant declines to the hashprice assumption or significant increases to the power price, particularly where there is a combination of both factors. The recent April 2024 Bitcoin halving has created pressure on the hashprice. The Directors’ assessment of going concern includes forecasted scenarios drawn up to 30 June 2025 using the Group’s estimate of potential hashprices and power costs. Offsetting these potential risks to the Group’s cash flow are the Group’s current cash balance, cash generated from operations and the Group’s ability to generate additional funds by issuing equity for cash proceeds. Based on information from Management, as well as independent advisors, the Directors have considered the period to 30 June 2025, as a reasonable time period given the variable outlook of cryptocurrencies and the Bitcoin halving in April 2024. Based on the above considerations, the Board believes it is appropriate to adopt the going concern basis in the preparation of the Financial Statements. However, the Board notes that the significant debt service requirements and the volatile economic 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. Revenue and Other Income Recognition Mining Revenue The provision of hash calculation services is an output of our ordinary activities from the Company’s mining equipment. The Company has entered into arrangements with a Mining pool and has undertaken the performance obligation of providing computing power used for hashing calculations to the Mining pool in exchange for noncash consideration in the form of cryptocurrency, which is variable consideration. Providing our computing power is at the Company’s discretion and our enforceable right to compensation begins when, and continues for as long as, services are provided. The cryptocurrency earnings are calculated based on a formula which, in turn, is based on the hashrate contributed by the Company's provided computing power used for hashing calculations allocated to the Mining pool, assessed over a 24-hour period, and distributed daily based on the Full Pay Per Share (“FPPS”) methodology. The Company assesses the estimated amount of the variable non-cash consideration to which it expects to be entitled for providing computational power used for hashing calculations at contract inception and subsequently measures if it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The uncertainties regarding the daily variable consideration to which the Company is entitled for providing its computational power used for hashing calculations are no longer constrained at 23:59:59 UTC regardless of the timing of the BTC received. The amount earned is calculated based on the Company's computing power used for hashing calculations provided to the Mining pool and the estimated (i) block subsidies and (ii) daily average transaction fees which the Mining Pool expects to earn, less (iii) a Mining pool discount. 1. Block subsidies refers to the block reward that are expected to be generated on the BTC network as a whole. The fee earned by the Company is first calculated by dividing (a) the total amount of hashrate the Company provides to the Mining pool operator, by (b) the total BTC network’s implied hashrate (as determined by the BTC network difficulty), multiplied by (c) the total amount of block subsidies that are expected to be generated on the BTC network as a whole. 2. Transaction fees refer to the total fees paid by users of the network to execute transactions. The fee paid out by the Mining pool operator to the Company is further calculated by dividing (a) the total amount of transaction fees that are actually generated on the BTC network as a whole less the 3 largest and 3 smallest transactions per block, by (b) the total amount of block subsidies that are actually generated on the BTC network as a whole, multiplied by (c) the Company’s fee earned as calculated in (i) above. The Company is entitled to its relative share of consideration even if a block is not successfully added to the blockchain by the mining pool. 3. Mining pool discount refers to the discount applied to the total FPPS payout otherwise attributed to computing power service providers for their sale of computing power used for hashing calculations as defined in the rate schedule of the agreement with the Mining pool operator. The Company is entitled to the fee from the Mining Pool as calculated above regardless of the actual performance of the Mining Pool operator. Therefore, even if the Mining Pool does not successfully add any block to the blockchain in a given contract period, the fee remains payable by the Mining Pool to the Company. Accordingly, the Company is not sharing in the earnings of the Mining pool operator. The Company’s agreements with the Mining pool operator provide the Mining pool operator and the Company with the enforceable right to terminate the contract at any time without substantively compensating the other party for the termination. Upon termination, the Mining pool operator is required to pay the Company the amount due related to previously satisfied performance obligations. As a result, the Company has determined that the duration of the contract is less than 24 hours and the contract is continuously renewed throughout the day. The Company has also determined that the Mining pool operator’s renewal right is not a material right as the terms, conditions, and compensation amounts are at then-current market rates. The cryptocurrency earned is received in full and can be paid in fractions of cryptocurrency. Revenues from providing cryptocurrency computational power used for hashing calculations are recognized upon delivery of the service over a 24-hour period, which generally coincides with the receipt of crypto assets in exchange for the provision of computational power used for hashing calculations and the contract inception date. The Company updates the estimated transaction price of the non-cash consideration received at its fair market value. Management estimates fair value daily based on the quantity of cryptocurrency received multiplied by the price quoted from Coingecko on the day it was received. Management considers the prices quoted on Coingecko to be a level 1 input under IFRS 13, Fair Value Measurement. Power Credits - Power credits are credits we receive in Texas when we curtail our mining production and sell the power back to the grid. The hosting agreement with Galaxy allows Argo to share in the proceeds from these curtailments, which occurs when the Helios facility monetizes its fixed-price PPA during periods of high power prices. The Company records power credits in the period they are earned provided they are estimable and recoverable. Management fees: In 2022, the Group recognised management fees on the services provided to third parties for management of mining machines on their behalf, ensuring the machines are optimised and mining as efficiently as possible. The performance obligation is identified as the services are performed, and thus revenue is recorded over time. Other Income: The Group receives credits and or coupons for the purchase and use of “Application-Specific Integrated Circuits (“ASICs”) on a periodic basis for Bitcoin Mining. These credits are provided to the Group after it purchases ASICs based on the variance between the price paid by the Group versus the reduction in ASIC prices. The credits are transferable. The Group elects to sell the credits at the market rate to willing buyers upon receipt of the credits. Other income is recognised at the date the sale is completed. Derivative Contracts – Hedging: In 2022, the Group used derivatives contracts in connection with some of its lending activities and its treasury management. Derivative contracts are susceptible to additional risks that can result in a loss of all or part of the investment. The Group’s derivative activities and exposure to derivative contracts are subject to interest rate risk, credit risk, foreign exchange risk, and macroeconomic risks. In addition, Argo is also subject to additional counterparty risks due to the potential inability of its counterparties to meet the terms of their contracts. There were no hedging contracts in 2023. Basis of consolidation Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. The group consists of Argo Blockchain plc and its wholly owned subsidiaries Argo Innovation Labs Inc, Argo Operating US LLC and Argo Holdings US Inc., 9366-5230 and 9377-2556 and Argo Innovation Labs Ltd. Argo Innovation Labs Ltd has been dormant since incorporation. In the parent company financial statements, investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. The consolidated financial statements incorporate those of Argo Blockchain plc and all of its subsidiaries (i.e., entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Business Combinations The group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquisition and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. Associates Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of post-acquisition profit or loss is recognised in the income statement, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to ‘share of profit/(loss) of associates in the income statement. Segmented reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the CEO or equivalent. The directors consider that the Group has only one significant reporting segment being crypto mining which is fully earned by a Canadian and USA subsidiary for the financial year ended 31 December 2023. Loans and issued debt Loans and issued debt are recognised initially at fair value, net of transaction costs incurred. Loans and issued debt are subsequently carried at amortised cost; any difference between the proceeds and the redemption value is recognised in the income statement over the period of the borrowings, using the effective interest method. Loans and issued debt are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. Loans and borrowings and issued debt are classified as current liabilities unless the Group has an unconditional right to defer settlement of a liability for at least 12 months after the end of the reporting period. Intangible assets Intangible fixed assets comprise of the Group’s website and digital assets that were not mined by the Group and are held by Argo Labs (our internal team) as investments. The Group’s website is recognised at cost and is amortised over its useful life. Amortisation is recorded within administration expenses. Digital assets recorded under IAS 38 have an indefinite useful life initially measured at cost, and subsequently measured at fair value. Argo’s primary business is focused on cryptocurrency mining. Argo Labs is an in-house innovation arm focused on identifying opportunities within the disruptive and innovative sectors of the broader cryptocurrency ecosystem. Argo Labs uses a portion of Argo’s crypto assets to deploy into various blockchain projects. Increases in the carrying amount arising on revaluation of digital assets are credited to other comprehensive income and shown as other reserves in shareholders’ equity. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the fair value reserve directly in equity; all other decreases are charged to the income statement. The fair value of intangible cryptocurrencies on hand at the end of the reporting period is calculated as the quantity of cryptocurrencies on hand multiplied by price quoted on www.coingecko.com, one of the leading crypto websites, as at the reporting date. Goodwill is initially measured at cost (being the excess of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held of the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the difference is recognised in profit or loss. Tangible fixed assets Tangible fixed assets are comprised of right of use assets, office equipment, mining and computer equipment, data centres, leasehold improvements, and electrical equipment. Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of the right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. Office equipment assets are measured at cost, less any accumulated depreciation and impairment losses. Office equipment is depreciated over 3 years on a straight-line basis. Mining and computer equipment and leasehold improvements: Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their estimated useful lives. It is 3 to 4 years in the case of mining and computer equipment and 5 years in the case of the leasehold improvements, on a straight-line basis. Data centres: Depreciation on the data centres is recognised so as to write off the cost or valuation of assets less their residual values over their estimated useful lives of 25 years on a straight-line basis from when they are brought into use. Depreciation is recorded in the Income Statement within general administrative expenses once the asset is brought into use. Any land component is not depreciated. Electrical equipment: Depreciation is recognised on a straight-line basis to write off the cost less their residual values over their estimated useful lives of 7 years. Management assesses the useful lives based on historical experience with similar assets as well as anticipation of future events which may impact their useful life. Assets Held for Resale An asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, which is when the sale is highly probable, and it is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. Assets classified as held for sale are measured at the lower of the carrying amount upon classification and the fair value less costs to sell. Assets classified as held for sale and the associated liabilities are presented separately from other assets and liabilities in the Consolidated Balance Sheet. Once assets are classified as held for sale, property, plant and equipment and intangible assets are no longer subject to depreciation or amortisation. Impairment of non-financial assets At each reporting period end date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group and Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Digital assets Digital assets consist of mined bitcoin, and do not qualify for recognition as cash and cash equivalents or financial assets and have an active market which provides pricing information on an ongoing basis. The Group has assessed that the most appropriate accounting for its digital assets is IAS 2, Inventories, in characterising its holding of Digital assets as inventory. If assets held by the Group are principally acquired for the purpose of selling in the near future and generating a profit from fluctuations in price, such assets are accounted for as inventory, and changes in fair value (less costs to sell) are recognised in profit or loss. Digital assets are initially measured at fair value. Subsequently, digital assets are measured at fair value with gains and losses recognised directly in profit or loss. Digital assets are included in current assets as management intends to dispose of them within 12 months of the end of the reporting period. Digital assets are cryptocurrencies mined by the Group. Cryptocurrencies not mined by the Group are recorded as Intangible Assets (see note 18). Cash and cash equivalents Cash and cash equivalents are comprised of cash held at banks with high credit ratings. The Group considers the credit risk on cash and cash equivalents to be limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. Financial instruments Financial assets: Financial assets are recognised in the Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Financial assets are subsequently measured at amortised cost, fair value through OCI, or fair value through profit and loss. The classification of financial assets at initial recognition that are debt instruments depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortised cost, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Subsequent measurement: For purposes of subsequent measurement, financial assets are classified in four categories: ● Financial assets at amortised cost ● Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) ● Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) ● Financial assets at fair value through profit or loss Equity Instruments: The Group subsequently measures all equity investments at fair value. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit or loss as applicable. Financial assets at amortised cost (debt instruments): This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met: ● The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and ● The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Interest received is recognised as part of finance income in the statement of profit or loss and other comprehensive income. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group’s financial assets at amortised cost include other receivables and cash and cash equivalents. Derecognition: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated Balance sheet) when: ● The rights to receive cash flows from the asset have expired; or ● The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Impairment of financial assets: The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original EIR. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows and usually occurs when past due for more than one year and not subject to enforcement activity. At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. The Company has an Intercompany loan due from its 100% Canadian subsidiary for which there is no formal agreement including payment date and therefore it cannot be considered to be in breach of an agreement and accordingly the loan is not subject to adjustments and is maintained at its book value in the financial statements. Financial liabilities: Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables and loans. Subsequent measurement: The measurement of financial liabilities depends on their classification, as described below: Loans and trade and other payables: After initial recognition, interest-bearing loans and borrowings and trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss and other comprehensive income. This category generally applies to trade and other payables. Derecognition: A financial liability is derecognised when the associated obligation is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit or loss or other comprehensive income. Equity instruments: Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Gro |
FINANCIAL RISK FACTORS
FINANCIAL RISK FACTORS | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL RISK FACTORS | |
FINANCIAL RISK FACTORS | 4. The Group’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Group’s overall risk management programme seeks to minimise potential adverse effects on the Group’s financial performance. Risk management is undertaken by the Board of Directors. Market Risk The Group is dependent on the state of the cryptocurrency market, sentiments of crypto assets as a whole, as well as general economic conditions and their effect on exchange rates, interest rates and inflation rates. During the year the Group sold its digital assets held at 31 December 2022 at a loss. The Group now sells its Bitcoin production as it is mined to reduce the impact of Bitcoin prices. The Group is also subject to market fluctuations in foreign exchange rates. The subsidiary (Argo Innovation Labs Inc.) is based in Canada, and transacts in CAD$, USD$ and GBP. 9377-2556 Quebec Inc. and 9366-5230 Quebec Inc. are based in Canada and transact in CAD. Argo Innovations Facilities (US) Inc., Argo Holdings US Inc. and Argo Operating US LLC are located in the United States of America and transacts in USD. The Group bond is denominated in USD. Cryptocurrency is primarily convertible into fiat through USD currency pairs and through USD denominated stable coins and is the primary method for the Group for conversion into cash. The Group maintains bank accounts in all applicable currency denominations. Foreign currency sensitivity The following tables demonstrate the sensitivity to a reasonable possible change in GBP and CAD exchange rates, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of monetary assets and liabilities. Effect on profit Change in GBP before tax rate $’000 2023 + % +/-74 2022 + % +/-77 Effect on profit Effect on pre- Change in CAD before tax tax equity rate $’000 $’000 2023 + % +/-274 — 2022 + % +/-1,384 +/-3,208 Interest rate sensitivity The following table demonstrates the sensitivity to a reasonable possible change in interest rates on the portion of the loans and borrowings affected. With other variables held constant, the impact on the Group’s profit before tax is affected through the impact on floating rate borrowings, as follows. Effect on Increase/decrease profit before tax in basis points $’000 2023 + + 2022 + + Credit risk Credit risk arises from cash and cash equivalents as well as any outstanding receivables. Management does not expect any losses from non-performance of these receivables. The amount of exposure to any individual counter party is subject to a limit, which is assessed by the Board. The Group considers the credit risk on cash and cash equivalents to be limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The carrying amount of financial assets recorded in the financial statements represents the Group’s and Company’s maximum exposure to credit risk. The Group and Company do not hold any collateral or other credit enhancements to cover this credit risk. Liquidity risk Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. Management updates cashflow projections on a regular basis and closely monitors the cryptocurrency market on a daily basis. Accordingly, the Group’s controls over expenditure are carefully managed, in order to maintain its cash reserves. The Treasury committee meets on a weekly basis to make decisions around future cashflows and working capital requirements. Decisions may include considering debt/equity options alongside selling Bitcoin. The table below analyses the Group’s non-derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings, based on the remaining period at the Statement of Financial Position to the contractual maturity date. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. The Group complied with all covenants during the year and through to the reporting date. Less than 1 Between 1 Between 2 year and 2 years and 5 years Over 5 years At 31 December 2023 Loans 14,320 9,830 197 — Issued debt - bonds — — 38,170 — At December 2022 Loans 11,605 13,643 12,273 — Lease liabilities 5 5 15 511 Issued debt - bonds — — 37,810 — Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure. |
ADOPTION OF NEW AND REVISED STA
ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS | 12 Months Ended |
Dec. 31, 2023 | |
ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS | |
ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS | 5. The Group has adopted all recognition, measurement and disclosure requirements of IFRS, including any new and revised standards and Interpretations of IFRS, in effect for annual periods commencing on or after 1 January 2023. The adoption of these standards and amendments did not have any material impact on the financial result or position of the Group. At the date of authorisation of these financial statements, the following Standards and Interpretation, which have not yet been applied in these financial statements, were in issue but not yet effective: Standard or Interpretation Description Effective date for annual accounting period beginning on or after IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information 1 January 2024 IFRS S2 Climate-related Disclosures 1 January 2024 IAS 1 (Amendments) Classification of Liabilities as Current and Non-current 1 January 2024 IAS 1 (Amendments) Presentation of Non-current Liabilities with Covenants 1 January 2024 IAS 7 and IFRS 7 (Amendments) Disclosure on Supplier Finance Arrangements January 2024 The Group has not early adopted any of the above standards and intends to adopt them when they become effective. |
KEY JUDGEMENTS AND ESTIMATES
KEY JUDGEMENTS AND ESTIMATES | 12 Months Ended |
Dec. 31, 2023 | |
KEY JUDGEMENTS AND ESTIMATES | |
KEY JUDGEMENTS AND ESTIMATES | 6. In the application of the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. Valuation of tangible fixed assets- Note 19 The directors considered whether any impairments were required on the value of the property, plant and equipment. In doing so they made use of forecasts of revenues and expenditure prepared by the Group and came to the conclusion that impairment of those assets was required based on current forecasts. Key assumptions include Bitcoin production, hashprice, power prices and discount rate. Share-based payments – Note 21 The company has issued options and warrants to Directors, consultants and employees which have been valued in accordance with the Black Scholes model. Significant estimation and judgement is required in determining the assumptions under the Black Scholes method. Further details of these estimates are available in note 21. The company has issued restricted stock units (RSUs) and performance stock units (PSUs) to employees which have been valued based on the share price on the date of the award. The RSUs vest over three years, beginning six months after the award and then every three months thereafter. It is assumed that employees will meet each vesting period and a related expense is recorded each month. If an employee's employment is terminated prior to a vesting date, the prior expense for that vesting period is reversed. PSUs are amortised over the vesting period based on the mostly outcome of the performance metrics. Taxation and Contingent liabilities – Notes 13 and 28 The Group is subject to tax liabilities (both income and excise taxes)as assessed by the tax authorities in the jurisdictions in which it operates. The Group has recorded its tax liabilities based on the information which it has available, as described in Note 13. However, a tax authority could challenge our allocation of income, transfer pricing and eligibility for input tax credits or assert that we are subject to a tax in a jurisdiction where we believe we have not established a taxable connection. If successful, these challenges could increase our expected tax liability in one or more jurisdictions. The Group is also subject to a class action lawsuit as described in Note 28 and no accrual has been made as there is no basis to estimate any liability. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2023 | |
REVENUES | |
REVENUES | 7 . 2023 2022 2021 $’000 $’000 $’000 Crypto currency mining - worldwide 50,558 58,464 93,586 Crypto currency management fees – United States — 119 5,162 Total revenue 50,558 58,583 98,748 Cryptocurrency mining revenues are recognised at a point in time. Cryptocurrency management fees are services recognised over time. Other Income Argo held 2,441 Bitcoin (fair valued at $80 million as at 31 December 2022) on its Balance Sheet at the beginning of 2022. The Group used up to 1,504 Bitcoins as collateral with Galaxy Digital LP for a short-term payable on demand loan of USD$30 million taken out on December 23, 2022. To protect its Bitcoin holdings used as collateral for the loan and reduce overall exposure, Argo took positions in the markets which resulted in a net hedge gain of $2.1 million for 2022. There were no hedging contracts in 2023. During the year, Argo generated $7,163,000 in power credits (2022: $nil), with $3.8 million generated in the month of August during a state-wide heat wave. |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2023 | |
EXPENSES BY NATURE | |
EXPENSES BY NATURE | 8. 2023 2022 2021 Operating expenses $’000 $’000 $’000 Salary and other employee related costs 6,430 11,887 3,542 Restructuring and transaction related costs 4,969 11,862 Settlement re Crypto mining management fees (2,077) Insurance 2,128 7,455 1,874 Depreciation and amortisation 1,473 8,535 508 Legal, professional and regulatory fees 1,431 3,925 2,040 Indirect taxes 994 4,208 — Property tax 919 349 — Consulting fees 533 1,024 910 Repairs and maintenance 455 1,067 921 Audit fees 341 383 318 Office general expenses 285 1,039 564 Public relations and associated activities 255 642 930 Travel 226 839 170 Carbon credits 129 — 335 Bank charges 34 297 329 Derecognition of variable contingent consideration — — (468) Impairment of intangible assets — — 712 Hedging costs — — 434 Freight, postage and delivery 30 1,625 — Capital loss — 143 — Research costs — 11 — Foreign exchange loss (1,287) (21,234) 701 Total operating expenses 19,345 34,057 11,743 Finance costs – interest on borrowings and bond 11,556 22,661 2,935 Total finance costs 11,556 22,661 2,935 |
AUDITOR'S REMUNERATION
AUDITOR'S REMUNERATION | 12 Months Ended |
Dec. 31, 2023 | |
AUDITOR'S REMUNERATION | |
AUDITOR'S REMUNERATION | 9. 2023 2022 2021 $’000 $’000 $’000 In relation to statutory audit services 341 383 318 Total auditor’s remuneration 341 383 318 |
EMPLOYEES
EMPLOYEES | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEES | |
EMPLOYEES | 10. EMPLOYEES The average monthly number of persons (including directors) employed by the group during the period was: 2023 2022 2021 Number Number Number Directors and employees 30 82 26 The aggregate remuneration (including directors) comprised of: 2023 2022 2021 $’000 $’000 $’000 Wages and salaries 6,017 11,051 3,042 Social security costs 250 799 265 Pension costs 163 37 33 Share based payments 3,892 6,096 1,825 10,322 17,983 5,165 |
DIRECTOR'S REMUNERATION
DIRECTOR'S REMUNERATION | 12 Months Ended |
Dec. 31, 2023 | |
DIRECTOR'S REMUNERATION | |
DIRECTOR'S REMUNERATION | 11. 2023 2022 2021 $’000 $’000 $’000 Director’s remuneration for qualifying services 591 1,588 1,139 Severance 765 — 176 Share based payments 916 1,883 574 Total remuneration for directors and key management 2,272 3,471 1,888 Further details of Directors’ remuneration are available in note 29. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 12. The basic earnings per share are calculated by dividing the loss attributable to equity shareholders by the weighted average number of shares in issue. 2023 2022 2021 Net loss for the period attributable to ordinary equity holders from continuing operations ($’000) (35,033) (228,961) 40,941 Finance Weighted average number of ordinary shares in issue (‘000) 503,917 473,930 397,513 Basic earnings/(loss) per share for continuing operations ($USD) (0.07) (0.48) 0.10 2023 2022 2021 Net loss for the period attributable to ordinary equity holders from continuing operations ($’000) (35,033) (228,961) 40,941 Diluted number of ordinary shares in issue (‘000) 503,917 473,930 415,201 Diluted earnings/(loss) per share for continuing operations ($USD) (0.07) (0.48) 0.1 The diluted loss per Ordinary Share is calculated by adjusting the weighted average number of Ordinary Shares outstanding to consider the impact of options, warrants and other dilutive securities. As the effect of potential dilutive Ordinary Shares in the current and prior year would be anti-dilutive, they are not included in the above calculation of dilutive earnings per Ordinary Share for 2023 and 2022. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2023 | |
TAXATION | |
TAXATION | 13. TAXATION 2023 2022 2021 Current tax: $’000 $’000 $’000 Current tax recovery on loss for the year — (11,731) 10,979 Total current tax — (11,731) 10,979 2023 2022 2021 Deferred tax: $’000 $’000 $’000 Origination and reversal of temporary differences — — 340 Total deferred tax liability — — 340 Total tax credit — (11,731) 11,319 No deferred tax has been recognised on the losses brought forward and carried forward on the UK, Canada and US losses given the uncertainty on the generation of future profits. Income tax expense The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows: 2023 2022 2021 $’000 $’000 $’000 Profit (loss) before taxation (35,033) (240,693) 52,261 Expected tax charge (recovery) based on a weighted average of 25% (2022 - 25 )% (UK, US and Canada) (8,758) (60,172) 12,971 Effect of expenses not deductible in determining taxable profit 851 32,662 2,366 Temporary differences 5,930 8,470 (5,529) Other tax adjustments 18 254 (182) Origination and reversal of temporary differences — (1,023) 1,101 Unutilised tax losses carried forward 1,959 8,078 592 Taxation charge in the financial statements — (11,731) 11,319 The group has tax losses available to be carried forward and used against trading profits arising in future periods of approximately $136,000,000 (2022 - $87,000,000). The weighted average applicable tax rate was 25% (2022: 25%). A tax authority may disagree with tax positions that we have taken, which could result in increased tax liabilities. For example, His Majesty’s Revenue & Customs (“HMRC”), the IRS or another tax authority could challenge our allocation of income by tax jurisdiction and the amounts paid between our affiliated companies pursuant to our intercompany arrangements and transfer pricing policies, including amounts paid with respect to our intellectual property development. Similarly, a tax authority could assert that we are subject to tax in a jurisdiction where we believe we have not established a taxable connection and such an assertion, if successful, could increase our expected tax liability in one or more jurisdictions. |
INVESTMENT IN SUBSIDIARIES AND
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY | |
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY | 14. INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY Company Details of the Company’s subsidiaries at 31 December 2023 are as follows: Country of Ownership Voting Power Nature of Name of Undertaking Incorporation Interest (%) Held (%) Business Argo Innovation Labs Inc. Canada 100 % 100 % *** 9377-2556 Quebec Inc. Canada 100 % 100 % ** 9366-5230 Quebec Inc. Canada 100 % 100 % ** Argo Holdings US Inc. USA 100 % 100 % **** Argo Operating US LLC USA 100 % 100 % * * The provision of cryptocurrency mining services ** The provision of cryptocurrency mining sites *** Converted from the provision of cryptocurrency mining services to cost centre in 2023 **** Holding company 2023 2022 Investment in subsidiaries $’000 $’000 At January 1 65,000 15,067 Impairment (21,017) — Additions — 65,000 Disposals — (15,067) At 31 December 43,983 65,000 Argo Holdings US Inc. was incorporated on November 22, 2023, with a registered office of 1209 Orange Street, Wilmington, Delaware, USA, 19801. The company contributed shares in Argo Innovation Facilities (US) valued at $65m. Argo Operations US LLC was formed on November 22, 2022, with a registered office of 1209 Orange Street, Wilmington, Delaware, USA, 19801. Argo Innovation Facilities (US) Inc was incorporated on 25 February 2022 with a registered address of 2028 East Ben White Blvd. Austin, TX 78740. This entity held the Helios facility and real property in Dickens County, Texas. On 21 December 2023, Argo Innovation Facilities (US) Inc. was converted to Galaxy Power LLC. Galaxy Power LLC was sold on 28 December 2022 pursuant to an equity purchase agreement. The proceeds received for the sale were $65 The effects of the disposal of Galaxy Power LLC on the cash flows of the Group were: Group At 28 December 2022 $000 Carrying amounts of assets and liabilities as at the date of disposal: Cash and bank balances 1,678 Property, plant and equipment 129,736 Trade and other debtors 367 Total assets 131,782 Trade and other creditors 12,077 Total liabilities 12,077 Net assets disposed of 119,705 Cash flows arising from disposal: Proceeds used to paydown existing debt 56,029 Proceeds used for new loans 8,258 Total Proceeds 64,287 Net assets disposed of (as above) 119,705 Loss on disposal (55,418) |
ASSETS AND LIABLITIES HELD FOR
ASSETS AND LIABLITIES HELD FOR SALE | 12 Months Ended |
Dec. 31, 2023 | |
ASSETS AND LIABLITIES HELD FOR SALE | |
ASSETS AND LIABLITIES HELD FOR SALE | 15. In December 2023, the group signed an offer to purchase 9366-5230 Quebec Inc. In March 2024, a purchase and sale agreement was signed for the sale of 9366-5230 Quebec Inc. (“Mirabel”) for proceeds of $6.1 million. As a result of the sale, the material assets and liabilities of Mirabel were reclassified to be held for sale as at December 31, 2023, as follows: 2023 Non-current Assets $'000 Tangible Fixed Assets 2,725 Right of use assets 536 Assets held for sale 3,261 2023 Non-current liabilities $'000 Mortgage Payable 1,532 Lease Liability 558 Liabilities held for sale 2,090 |
INVESTMENTS AT FAIR VALUE THROU
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS | |
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS | 16 . Non-current 2023 2022 Group $’000 $’000 At 1 January 414 543 Foreign exchange movement — 1 Additions — 300 Fair value through profit or loss — (430) Disposals (14) — At 31 December 400 414 |
INVESTMENTS ACCOUNTED FOR USING
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | |
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 17. 2023 2022 $’000 $’000 Opening balance 2,863 18,642 Share of loss (716) (6,027) Share of fair value (losses)/gains on intangible assets through other comprehensive income — (8,744) Foreign exchange movement 89 (1,008) Write off of investment (2,236) — Closing balance — 2,863 Nature of investment in associates: % of Address of the ownership Nature of Measurement Name of entity registered office interest relationship method Emergent Entertainment PLC Previously Pluto Digital plc) Hill Dickinson LLP, 8th Floor The Broadgate Tower, 20 Primrose Street, London, United Kingdom, EC2A 2EW 19.5 % Refer below Equity In December 2023, Emergent Entertainment Ltd (“EEL”) announced they have engaged an insolvency advisor to place it in liquidation. On January 10, 2024, EEL appointed liquidators to voluntarily wind up the company. The Group has written off the balance of the investment in 2023. |
INTANGIBLE FIXED ASSETS
INTANGIBLE FIXED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE FIXED ASSETS | |
INTANGIBLE FIXED ASSETS | 18. Digital 2023 Goodwill assets Website Total Group $’000 $’000 $’000 $’000 Cost At 1 January 2023 96 5,722 873 6,691 Foreign Exchange Movements 16 334 19 369 Disposals — (727) — (727) At 31 December 2023 112 5,329 892 6,333 Amortisation and impairment At 1 January 2023 — 3,809 779 4,588 Foreign exchange movement — 90 1 91 Fair value movement — 654 — 654 Amortisation charged during the period — — 112 112 At 31 December 2023 — 4,553 892 5,445 Balance At 31 December 2023 112 776 — 888 Digital 2022 Goodwill assets Website Total Group $’000 $’000 $’000 $’000 Cost At 1 January 2022 96 6,394 873 7,364 Foreign Exchange movement — (274) — (274) Additions — 2,084 — 2,084 Disposals — (2,482) — (2,482) At 31 December 2022 96 5,722 873 6,691 Amortisation and impairment At 1 January 2022 — 146 543 689 Foreign exchange movement — (1,492) (31) (1,521) Fair Value movement — 5,155 — 5,155 Amortisation charged during the period — — 267 267 At 31 December 2022 — 3,809 779 4,588 Balance At 31 December 2022 96 1,913 94 2,103 Digital assets are cryptocurrencies not mined by the Group. The Group held crypto assets during the year, which are recorded at cost on the day of acquisition. Movements in fair value between acquisition (date mined) and disposal (date sold), and the movement in fair value in crypto assets held at the year end, impairment of the intangible assets and any increase in fair value are recorded in the fair value reserve. The digital assets held below are held in Argo Labs (a division of the Group) as discussed above. The assets are all held in secure custodian wallets controlled by the Group team and not by individuals within the Argo Labs team. The assets detailed below are all accessible and liquid in nature. Fair value Crypto asset name Coins / tokens $’000 Polkadot – DOT 16,554 135 Ethereum – ETH 4 10 USDC (stable coin – fixed to USD) 31,713 55 Other tokens, NFTs and other digital assets N/A 576 As at 31 December 2023 — 776 Fair value Crypto asset name Coins / tokens $’000 Token Deals N/A 931 Ethereum – ETH 518 626 Polkadot – DOT 32,964 142 Other tokens, NFTs and other digital assets N/A 214 As at 31 December 2022 1,913 |
TANGIBLE FIXED ASSETS
TANGIBLE FIXED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
TANGIBLE FIXED ASSETS | |
TANGIBLE FIXED ASSETS | 19. Mining Data Machinery Centres Equipment Total Group $’000 $’000 $’000 $’000 Cost At 1 January 2023 162,839 8,700 5,414 176,953 Foreign Exchange Movement 108 517 569 1,195 Additions 5,203 — 27 5,230 Transfer to Assets held for sale — (2,937) (1,976) (4,913) At 31 December 2023 168,150 6,280 4,034 178,464 Depreciation and impairment At 1 January 2023 (97,481) (1,924) (31) (99,437) Foreign exchange movement — (38) (43) (81) Depreciation charged during the period (18,656) (359) (1,000) (20,015) Impairment in asset (855) — — (855) Transfer to Assets held for sale — 784 868 1,652 At 31 December 2023 (116,992) (1,537) (206) (118,736) Carrying amount At 1 January 2023 65,358 6,775 5,383 77,516 At 31 December 2023 51,158 4,743 3,828 59,728 Mining Assets under Data Machines construction Centres Equipment Total Group $’000 $’000 $’000 $’000 $’000 Cost At 1 January 2022 70,539 73,924 7,900 5,313 157,676 Foreign exchange movement 3,310 8,787 701 — 12,797 Additions 162,315 — 99 103 162,518 Transfers to another class – cost — (82,711) 82,711 — — Disposals (73,325) — (82,711) (2) (156,038) At 31 December 2022 162,839 — 8,700 5,414 176,953 Depreciation and impairment At 1 January 2022 (22,316) — (364) — (22,680) Foreign exchange movement (1,047) — (17) — (1,064) Depreciation charged (19,955) — (8,286) (31) (28,273) Impairment in asset (54,163) — (271) — (54,434) Transfer to another class — — 7,014 — 7,014 At 30 December 2022 (97,481) — (1,924) (31) (99,437) Carrying amount At 1 January 2022 48,223 73,924 7,536 5,313 134,966 At 31 December 2022 65,358 — 6,775 5,383 77,516 Acquisition of DPN LLC On 8 March 2022 the Group completed the acquisition of DPN LLC to acquire 160 acres (with option to purchase a further 157 acres) of land in West Texas for the construction of a 200MW mining facility for completion mid-2023. The acquisition of DPN LLC, effectively comprising the land acquisition in West Texas, has been treated as an asset acquisition in the financial statements. The consideration for the acquisition was an initial price of GBP 3.6m, satisfied by the issue and allotment to the shareholders of DPN LLC of 3,497,817 new ordinary shares in Argo, with up to a further 8.6m of shares payable if certain contractual milestones related to the facility are fulfilled. The initial issue and allotment of GBP 3.6m has been recognised based on the estimated fair value of assets received at acquisition in line with IFRS 2 Share - based payments. Contingent consideration balance of this business combination has been subsequently measured at fair value with changes recognised in profit and loss in line with IFRS 9. The fair value of assets acquired was assessed in line with independent valuations of the site by CBRE as well as external financial due diligence and financial modelling. Financial models used historical power purchase assumptions for the area and the Company’s internal hash rate and Bitcoin pricing assumptions to help the Company evaluate the financial benefits of developing a Bitcoin mining operation on the land. Work performed by DPN LLC from August 2019, when it purchased the land, to March 2022, when it sold the land to the Company, to prepare for a Bitcoin mining operation added to the value of the land for that purpose. Consideration at 8 March 2022 $’000 Share based payment 4,355 Contingent consideration to be settled in shares 10,710 Total 15,065 Allocated as follows $’000 Tangible fixed assets (Asset under construction) 15,065 Total 15,065 Property, Plant and Equipment Impairments and Loss on Sale The Group has a single line of business, crypto mining. As such, the Group has one cash generating unit (CGU). At each reporting date, the Group assesses whether there is an indication that an asset may be impaired. If an indication exists, the Group estimates an asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset or CGU’s fair value, less costs of disposal and its value in use. When the carrying value of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the fair value of Mining and Computer Equipment, the Group used readily available tera hash pricing ("hashprice") less a 15% discount for used equipment. In assessing value in use, the discounted estimated future cash flows over the useful life of the mining machines using a pre-tax discount rate of 14.09%. As a result of the analysis, an impairment charge of $0.9 million (2022 - $55.8 million) was recorded. A 5% change in the hashprice has a $1.5 million impact on the impairment. A 1% change in the discount rate has a $0.4 million impact on the impairment. Impairment of Chips In assessing the fair value of machine components, the Group used readily available chip set prices and management’s estimate of other components in the chip sets to determine the value of chips on hand. As a result of this analysis, an impairment of $(0.1 million) was recorded (2022 - $18 million). Loss on Sale During 2022, the Group sold chips for proceeds of $12,404 and recorded a loss on disposal of $23,228. Mining Machine Swap In March 2022, the Group entered into an agreement to exchange mining machines and terminate a hosting agreement. With the completion of Helios, the Group no longer required third party hosting services. The agreement provided the hosting provider with ownership of the Group's machines at their facilities in exchange for new mining machines for our Helios facility. The hash rate between the two groups of mining machines was similar.This transaction lacks commercial substance, therefore, IFRS 16 requires the mining machines acquired to be recorded at the book value of the mining machines transferred to the hosting service provider. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
TRADE AND OTHER RECEIVABLES | |
TRADE AND OTHER RECEIVABLES | 20 . Group Group 2023 2022 $’000 $’000 Trade and other receivables 1,131 — Prepaids 1,355 — Mining equipment prepayments — 5,978 Other taxation and social security 1,349 824 Total trade and other receivables 3,835 6,802 Within other taxation and social security is a provision against GST/QST/VAT receivable of $2,325,000 in relation to ongoing matters in connection with GST Notice 324 released by the Canadian Revenue Authority, and ongoing discussions with HMRC. The Group have included the provision for prudence and upon conclusion of the matter, the Group will adjust this provision accordingly. |
DIGITAL ASSETS
DIGITAL ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
DIGITAL ASSETS | |
DIGITAL ASSETS | 21 . The Group mined crypto assets during the period, which are recorded at fair value on the day of acquisition. Movements in fair value between acquisition (date mined) and disposal (date sold), and the movement in fair value in crypto assets held at the year end, are recorded in profit or loss. All of the Group’s holding in crypto currencies other than Bitcoin are now classified as intangible assets. At the period end, the Group held Bitcoin representing a fair value of $385k. The breakdown of which can be seen below: 2023 2022 Group $’000 $’000 At 1 January 443 108,956 Foreign Exchange Movement 24 833 Crypto assets purchased and received — 264 Crypto assets mined 50,558 60,172 Total additions 50,582 61,269 Disposals Transferred to/from intangible assets — 420 Crypto assets sold (51,378) (114,646) Total disposals (51,378) (114,226) Fair value movements Gain/(loss) on crypto asset sales 738 (55,410) Movements on crypto assets held at the year end — (145) Total fair value movements 738 (55,555) At 31 December 385 443 As at 31 December 2023, digital assets comprised of 9 Bitcoin (2022: 25 Bitcoin). |
SHARE OPTIONS, RESTRICTED STOCK
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | 12 Months Ended |
Dec. 31, 2023 | |
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | |
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | 22. In 2022, the Remuneration Committee of the Board (“Committee”) approved the 2022 Equity Incentive Plan (“the Plan”). Under the Plan, the Committee, at its discretion, may issue awards, including share awards, stock options, stock appreciation rights (“SARs”), restricted stock units, performance awards and American Depository Shares to any employee of the Group. The exercise price of stock options and the base price of SARs may not be less than the market price of the underlying shares on the date of grant. Stock options and SARs may have an exercise period up to ten years after the grant date. The following table summarizes share-based compensation expense for the years ended December 31, 2023 and 2022: 2023 2022 Stock options and warrants 3,332 6,096 Restricted stock units 287 — Performance stock units 273 — 3,892 6,096 Number of Weighted options and average exercise warrants ‘000 price £ At 1 January 2023 18,698 0.78 Granted 659 0.13 Exercised — — Lapsed (8,329) 0.67 Outstanding at 31 December 2023 11,028 0.83 Exercisable at 31 December 2023 7,904 0.89 Number of Weighted options and average exercise warrants ‘000 price £ At 1 January 2022 17,689 0.81 Granted 5,220 0.50 Exercised (1,593) 0.07 Lapsed (2,618) 0.89 Outstanding at 31 December 2022 18,698 0.78 Exercisable at 31 December 2022 11,345 0.61 The weighted average remaining contractual life of options and warrants as at 31 December 2023 is 83 months (2022 -93 months). If the exercisable shares had been exercised on 31 December 2023 this would have represented 1.5% (2022 – 2.3%) of the enlarged share capital. At the grant date, the fair value of the options and warrants prior to the listing date was the net asset value and post listing determined using the Black-Scholes option pricing model. Volatility was calculated based on data from comparable listed technology start-up companies, with an appropriate discount applied due to being an unlisted entity at grant date. Risk free interest has been based on UK Government Gilt rates for an equivalent term. The inputs into the Black-Scholes model are as follows: 2023 2022 Grant date share price £ 0.14 0.94 - 1.57 Exercise price £ 0.13 0.94 - 1.57 Volatility 187 % 91 – 169 % Life 10 years 5 – 10 years Risk free rate 3.4 % 1.6 - 3.6 % Dividend yield 0 % 0 % Restricted Stock Units In 2023, the Committee approved the grant of RSUs to employees. The RSUs vest quarterly beginning the sixth month after the grant date over a three-year period. The weighted average remaining vesting period is the period to the last vesting date. 2023 Weighted Average Number of Weighted Average Remaining Vesting Awards Grant Date Price £ Period (months) Outstanding at beginning of period — — — Granted during the period 12,041,192 0.13 — Vested during the period (3,617,136) 0.13 — Forfeited during the period (1,424,239) 0.13 — Outstanding at the end of period 6,999,817 0.12 28 Performance Stock Units (American Depository Shares) In 2023, the Committee approved the grant of PSUs for the American Depository Shares to the CEO of the Group. The PSUs vest annually over a three-year period. The annual vesting amount may vary from 25% - 100%. The weighted average remaining vesting period assumes the last vesting date is the latest vesting date possible. 2023 Weighted Average Number of Weighted Average Remaining Vesting Awards Grant Date Price $ Period (months) Outstanding at beginning of the period — — — Granted during the period 2,850,000 1.15 — Vested during the period — — — Forfeited during the period — — — Outstanding at the end of the period 2,850,000 1.15 35 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES | |
ORDINARY SHARES | 23. As at 31 As at 31 December 2023 December 2022 $’000 $’000 Ordinary share capital Issued and fully paid 477,825,166 Ordinary Shares of $0.001 each 634 622 Issued in the period 59,138,305 Ordinary Shares of $0.001 each 78 12 536,963,471 Ordinary Shares of $0.001 each 712 634 Additional paid in Capital At beginning of the period 202,103 196,911 Issued in the period 7,676 5,192 Issue costs — — At the end of period 209,779 202,103 See the subsequent events note for additional shares issued after period end. |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2023 | |
RESERVES | |
RESERVES | 24. The following describes the nature and purpose of each reserve: Reserve Description Ordinary Shares Represents the nominal value of equity shares Share Premium Amount subscribed for share capital in excess of nominal value Share based payment reserve Represents the fair value of options and warrants granted less amounts transferred on exercise, lapse or expiry Currency translation reserve Cumulative effects of translation of opening balances on non-monetary assets between subsidiaries functional currencies (Canadian dollars and Uk Sterling) and Group presentational currency (US Dollars). Fair value reserve Cumulative net gains on the fair value of intangible assets Other comprehensive income of equity accounted associates The other comprehensive income of any associates is recognised in this reserve Accumulated surplus Cumulative net gains and losses and other transactions with equity holders not recognised elsewhere. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2023 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 25. Group Group 2023 2022 $’000 $’000 Trade payables 2,336 3,079 Accruals and other payables 7,153 6,012 Other taxation and social security 1,686 689 Total trade and other creditors 11,175 9,780 The directors consider that the carrying value of trade and other payables is equal to their fair value. Contingent consideration In June 2022, the Company issued 8,147,831 Ordinary Shares to settle $5.0 million in contingent consideration. The remaining contingent consideration of $5.0 million was not earned and as a result was reversed into profit or loss. |
LOANS AND BORROWINGS
LOANS AND BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND BORROWINGS | |
LOANS AND BORROWINGS | 26. As at 31 December As at 31 December 2023 2022 Non-current liabilities $’000 $’000 Issued debt - bond (a) 38,170 37,810 Galaxy loan (b) 9,230 18,475 Mortgage – Quebec facility (c) 797 2,785 Lease liability — 531 Total 48,197 59,601 Current liabilities Galaxy loan (b) 13,444 10,169 Mortgage- Quebec facility (c) 600 1,130 Other Loans 276 306 Lease liability — 5 Total 14,320 11,610 (a) Unsecured Bonds: In November 2021, the Group issued an unsecured 5-year (b) Galaxy and related loans On 23 December 2021 the Group entered into a loan agreement with Galaxy Digital LP for a loan of USD$30 million. The proceeds of the loan were used, in conjunction with funds raised previously, to continue the build-out of the Texas data centre, Helios. The short-term loan was a Bitcoin collateralised loan with an interest rate of 8% per annum. This loan was repaid during 2022 as part of the Galaxy transaction. In March 2022, the Group entered into loan agreements with NYDIG ABL LLC for loans in the amounts of USD$97 million for the purchase of mining machines and Helios infrastructure, respectively. The loan was repaid during the year as part of the Galaxy transaction. In May 2022, the Group entered into a loan agreement with Liberty Commercial Finance for a loan of USD$1.2 million ($1.0m) to purchase equipment. The loan is repayable over a period of 36 months with an interest rate of 11.9%. In June 2022, the loan was assigned to North Mill Equipment Finance LLC (“New Mill”). The loan was repaid during the year as part of the Galaxy transaction. In December 2022, the Group sold Galaxy Power LLC (see note 15) and entered into a loan agreement with Galaxy Digital LLC for USD$35 million. Proceeds were used to pay off the Galaxy Digital LP, New Mill and NYDIG loans and working capital. The Galaxy Digital LLC loan is payable monthly based on an amortization schedule over 32 months with an interest rate of the secured overnight financing rate by the Federal Reserve Bank of New York plus 11%. The loan is secured by the Group’s property, plant and equipment. (c) Mortgage – Quebec Facility The mortgage is secured against the property at Baie-Comeau and is repayable over 36 months at an interest rate of Lender Prime + 0.5%. (7.7% as of 31 December 2023). |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 27. Group Group 2023 2022 $’000 $’000 Carrying amount of financial assets Measured at amortised cost - Mining equipment prepayments — 5,978 - Trade and other receivables 1,131 — - Cash and cash equivalents 7,443 20,091 Measured at fair value through profit or loss 400 414 Total carrying amount of financial assets 8,974 26,483 Carrying amount of financial liabilities Measured at amortised cost - Trade and other payables 7,501 10,020 - Short term loans 280 11,605 - Long term loans 25,599 25,915 - Issued debt - bonds 38,170 37,810 - Lease liabilities — 545 Total carrying amount of financial liabilities 71,550 85,895 Fair Value Estimation Fair value measurements are disclosed according to the following fair value measurement hierarchy: ● Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) ● Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices), or indirectly (that is, derived from prices) (Level 2) ● Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3). This is the case for unlisted equity securities. The following table presents the Group’s assets that are measured at fair value at 31 December 2023 and 31 December 2022. Level 1 Level 2 Level 3 Total Assets $’000 $’000 $’000 $’000 Financial assets at fair value through profit or loss - Equity holdings — — 400 400 - Digital assets — 385 — 385 Total at 31 December 2023 — 385 400 785 Level 1 Level 2 Level 3 Total Assets $’000 $’000 $’000 $’000 Financial assets at fair value through profit or loss - Equity holdings 14 — 400 414 - Digital assets — 443 — 443 Total at 31 December 2022 329 443 400 857 All financial assets are in listed and unlisted securities and digital assets. There were transfers between levels during the riod The Group recognises the fair value of financial assets at fair value through profit or loss relating to unlisted investments at the cost of investment unless: ● There has been a specific change in the circumstances which, in the Group’s opinion, has permanently impaired the value of the financial asset. The asset will be written down to the impaired value; ● There has been a significant change in the performance of the investee compared with budgets, plans or milestones; ● There has been a change in expectation that the investee’s technical product milestones will be achieved or a change in the economic environment in which the investee operates; ● There has been an equity transaction, subsequent to the Group’s investment, which crystallises a valuation for the financial asset which is different to the valuation at which the Group invested. The asset’s value will be adjusted to reflect this revised valuation; or ● An independently prepared valuation report exists for the investee within close proximity to the reporting date. ● The deferred consideration has been fair valued to the year - end date as the amount is to be paid in Argo shares. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 28. The Group’s material contractual commitments relate to the hosting services agreement with Galaxy Digital Qualified Opportunity Zone Business LLC, which provides hosting, power and support services at the Helios facility. Whilst management do not envisage terminating agreements in the immediate future, it is impracticable to determine monthly commitments due to large fluctuations in power usage and variations on foreign exchange rates, and as such a commitment over the contract life has not been determined. The agreement is for services with no identifiable assets, therefore, there is no right of use asset associated with the agreement. As the company disclosed on February 8, 2023, it is currently subject to a class action lawsuit. The case, Murphy vs Argo Blockchain plc et al, was filed in the Eastern District of New York on 26 January 2023. The company refutes all of the allegations and believes that this class action lawsuit is without merit. The company is vigorously defending itself against the action. We are not currently subject to any other material pending legal proceedings or claims. The Company is also subject to other litigation matters in the ordinary course of business. Subsequent to period end, the Company settled a breach of contract claim for $0.5 million. This was accrued in operating expenses at 31 December 2023. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 29. The compensation paid to related parties in respect of services rendered in 2023 were: ● $170,554 (2022 - $133,867 ) to Webslinger Advisors in respect of fees of Matthew Shaw (Non-executive director); ● $129,752 (2022 - $148,679 ) in respect of fees for Maria Perrella (Non-executive director); ● $135,105 (2022 - $130,438 ) in respect of fees for Raghav Chopra (Non-executive director); ● $27,659 (2022 - $ nil ) to Jim MacCallum (CFO) through JMM Consulting Inc.; ● $166,738 (2022 - $803,112 ) to Alex Appleton (Previous CFO) through Appleton Business Advisors Limited. |
CONTROLLING PARTY
CONTROLLING PARTY | 12 Months Ended |
Dec. 31, 2023 | |
CONTROLLING PARTY | |
CONTROLLING PARTY | 30 . There is no controlling party of the Group. |
POST BALANCE SHEET EVENTS
POST BALANCE SHEET EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
POST BALANCE SHEET EVENTS | |
POST BALANCE SHEET EVENTS | 31. In January 2024, the Company issued 38,064,000 new ordinary shares at a price per share of £0.205 to certain institutional investors for gross proceeds of $9.9 million. In March 2024, the Group sold its Mirabel Facility for proceeds of $6.1 million. See note 15 for additional details. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTING POLICIES | |
Going Concern | Going Concern The preparation of consolidated financial statements requires an assessment on the validity of the going concern assumption. On 28 December 2022, the Group announced a series of transactions with Galaxy Digital Holdings, Ltd. (“Galaxy”) that improved the Group’s liquidity position and enabled the Group to continue its mining operations. As part of the transactions, Argo sold the Helios facility and real property in Dickens County, Texas to Galaxy for $65 million and refinanced existing asset-backed loans via a new $35 million, three-year asset-backed loan with Galaxy. The transactions reduced total indebtedness by $41 million and allowed Argo to simplify its operating structure. During 2023 and through March 31, 2024, the Group has repaid a significant portion of the Galaxy debt by making its scheduled amortization payments, sweeps on equity raises, and through the sale of non-core assets. In addition, an equity raise completed in January 2024 provided the Group with additional cash resources. This has strengthened the Group’s balance sheet and liquidity position. However, material uncertainties exist that may cast significant doubt regarding the Group’s ability to continue as a going concern and meet its liabilities as they come due. The significant uncertainties are: 1. The Group’s debt service obligations as of reporting date are approximately $18 million (Galaxy principal and interest on Galaxy and the bonds) from 31 March 2024 to 30 June 2025. 2. The Group’s exposure to Bitcoin prices, power prices, and hashprice, each of which have shown volatility over recent years and have a significant impact on the Group’s future profitability. The Group may have difficulty meeting its liabilities if there are significant declines to the hashprice assumption or significant increases to the power price, particularly where there is a combination of both factors. The recent April 2024 Bitcoin halving has created pressure on the hashprice. The Directors’ assessment of going concern includes forecasted scenarios drawn up to 30 June 2025 using the Group’s estimate of potential hashprices and power costs. Offsetting these potential risks to the Group’s cash flow are the Group’s current cash balance, cash generated from operations and the Group’s ability to generate additional funds by issuing equity for cash proceeds. Based on information from Management, as well as independent advisors, the Directors have considered the period to 30 June 2025, as a reasonable time period given the variable outlook of cryptocurrencies and the Bitcoin halving in April 2024. Based on the above considerations, the Board believes it is appropriate to adopt the going concern basis in the preparation of the Financial Statements. However, the Board notes that the significant debt service requirements and the volatile economic 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. |
Revenue and Other Income Recognition | Revenue and Other Income Recognition Mining Revenue The provision of hash calculation services is an output of our ordinary activities from the Company’s mining equipment. The Company has entered into arrangements with a Mining pool and has undertaken the performance obligation of providing computing power used for hashing calculations to the Mining pool in exchange for noncash consideration in the form of cryptocurrency, which is variable consideration. Providing our computing power is at the Company’s discretion and our enforceable right to compensation begins when, and continues for as long as, services are provided. The cryptocurrency earnings are calculated based on a formula which, in turn, is based on the hashrate contributed by the Company's provided computing power used for hashing calculations allocated to the Mining pool, assessed over a 24-hour period, and distributed daily based on the Full Pay Per Share (“FPPS”) methodology. The Company assesses the estimated amount of the variable non-cash consideration to which it expects to be entitled for providing computational power used for hashing calculations at contract inception and subsequently measures if it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The uncertainties regarding the daily variable consideration to which the Company is entitled for providing its computational power used for hashing calculations are no longer constrained at 23:59:59 UTC regardless of the timing of the BTC received. The amount earned is calculated based on the Company's computing power used for hashing calculations provided to the Mining pool and the estimated (i) block subsidies and (ii) daily average transaction fees which the Mining Pool expects to earn, less (iii) a Mining pool discount. 1. Block subsidies refers to the block reward that are expected to be generated on the BTC network as a whole. The fee earned by the Company is first calculated by dividing (a) the total amount of hashrate the Company provides to the Mining pool operator, by (b) the total BTC network’s implied hashrate (as determined by the BTC network difficulty), multiplied by (c) the total amount of block subsidies that are expected to be generated on the BTC network as a whole. 2. Transaction fees refer to the total fees paid by users of the network to execute transactions. The fee paid out by the Mining pool operator to the Company is further calculated by dividing (a) the total amount of transaction fees that are actually generated on the BTC network as a whole less the 3 largest and 3 smallest transactions per block, by (b) the total amount of block subsidies that are actually generated on the BTC network as a whole, multiplied by (c) the Company’s fee earned as calculated in (i) above. The Company is entitled to its relative share of consideration even if a block is not successfully added to the blockchain by the mining pool. 3. Mining pool discount refers to the discount applied to the total FPPS payout otherwise attributed to computing power service providers for their sale of computing power used for hashing calculations as defined in the rate schedule of the agreement with the Mining pool operator. The Company is entitled to the fee from the Mining Pool as calculated above regardless of the actual performance of the Mining Pool operator. Therefore, even if the Mining Pool does not successfully add any block to the blockchain in a given contract period, the fee remains payable by the Mining Pool to the Company. Accordingly, the Company is not sharing in the earnings of the Mining pool operator. The Company’s agreements with the Mining pool operator provide the Mining pool operator and the Company with the enforceable right to terminate the contract at any time without substantively compensating the other party for the termination. Upon termination, the Mining pool operator is required to pay the Company the amount due related to previously satisfied performance obligations. As a result, the Company has determined that the duration of the contract is less than 24 hours and the contract is continuously renewed throughout the day. The Company has also determined that the Mining pool operator’s renewal right is not a material right as the terms, conditions, and compensation amounts are at then-current market rates. The cryptocurrency earned is received in full and can be paid in fractions of cryptocurrency. Revenues from providing cryptocurrency computational power used for hashing calculations are recognized upon delivery of the service over a 24-hour period, which generally coincides with the receipt of crypto assets in exchange for the provision of computational power used for hashing calculations and the contract inception date. The Company updates the estimated transaction price of the non-cash consideration received at its fair market value. Management estimates fair value daily based on the quantity of cryptocurrency received multiplied by the price quoted from Coingecko on the day it was received. Management considers the prices quoted on Coingecko to be a level 1 input under IFRS 13, Fair Value Measurement. Power Credits - Power credits are credits we receive in Texas when we curtail our mining production and sell the power back to the grid. The hosting agreement with Galaxy allows Argo to share in the proceeds from these curtailments, which occurs when the Helios facility monetizes its fixed-price PPA during periods of high power prices. The Company records power credits in the period they are earned provided they are estimable and recoverable. Management fees: In 2022, the Group recognised management fees on the services provided to third parties for management of mining machines on their behalf, ensuring the machines are optimised and mining as efficiently as possible. The performance obligation is identified as the services are performed, and thus revenue is recorded over time. Other Income: The Group receives credits and or coupons for the purchase and use of “Application-Specific Integrated Circuits (“ASICs”) on a periodic basis for Bitcoin Mining. These credits are provided to the Group after it purchases ASICs based on the variance between the price paid by the Group versus the reduction in ASIC prices. The credits are transferable. The Group elects to sell the credits at the market rate to willing buyers upon receipt of the credits. Other income is recognised at the date the sale is completed. Derivative Contracts – Hedging: In 2022, the Group used derivatives contracts in connection with some of its lending activities and its treasury management. Derivative contracts are susceptible to additional risks that can result in a loss of all or part of the investment. The Group’s derivative activities and exposure to derivative contracts are subject to interest rate risk, credit risk, foreign exchange risk, and macroeconomic risks. In addition, Argo is also subject to additional counterparty risks due to the potential inability of its counterparties to meet the terms of their contracts. There were no hedging contracts in 2023. |
Basis of consolidation | Basis of consolidation Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. The group consists of Argo Blockchain plc and its wholly owned subsidiaries Argo Innovation Labs Inc, Argo Operating US LLC and Argo Holdings US Inc., 9366-5230 and 9377-2556 and Argo Innovation Labs Ltd. Argo Innovation Labs Ltd has been dormant since incorporation. In the parent company financial statements, investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. The consolidated financial statements incorporate those of Argo Blockchain plc and all of its subsidiaries (i.e., entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
Business Combinations | Business Combinations The group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquisition and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. |
Associates | Associates Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment in associates includes goodwill identified on acquisition. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of post-acquisition profit or loss is recognised in the income statement, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in an associate equal or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to ‘share of profit/(loss) of associates in the income statement. |
Segmented reporting | Segmented reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the CEO or equivalent. The directors consider that the Group has only one significant reporting segment being crypto mining which is fully earned by a Canadian and USA subsidiary for the financial year ended 31 December 2023. |
Loans and issued debt | Loans and issued debt Loans and issued debt are recognised initially at fair value, net of transaction costs incurred. Loans and issued debt are subsequently carried at amortised cost; any difference between the proceeds and the redemption value is recognised in the income statement over the period of the borrowings, using the effective interest method. Loans and issued debt are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. Loans and borrowings and issued debt are classified as current liabilities unless the Group has an unconditional right to defer settlement of a liability for at least 12 months after the end of the reporting period. |
Intangible assets | Intangible assets Intangible fixed assets comprise of the Group’s website and digital assets that were not mined by the Group and are held by Argo Labs (our internal team) as investments. The Group’s website is recognised at cost and is amortised over its useful life. Amortisation is recorded within administration expenses. Digital assets recorded under IAS 38 have an indefinite useful life initially measured at cost, and subsequently measured at fair value. Argo’s primary business is focused on cryptocurrency mining. Argo Labs is an in-house innovation arm focused on identifying opportunities within the disruptive and innovative sectors of the broader cryptocurrency ecosystem. Argo Labs uses a portion of Argo’s crypto assets to deploy into various blockchain projects. Increases in the carrying amount arising on revaluation of digital assets are credited to other comprehensive income and shown as other reserves in shareholders’ equity. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the fair value reserve directly in equity; all other decreases are charged to the income statement. The fair value of intangible cryptocurrencies on hand at the end of the reporting period is calculated as the quantity of cryptocurrencies on hand multiplied by price quoted on www.coingecko.com, one of the leading crypto websites, as at the reporting date. Goodwill is initially measured at cost (being the excess of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held of the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the difference is recognised in profit or loss. |
Tangible fixed assets | Tangible fixed assets Tangible fixed assets are comprised of right of use assets, office equipment, mining and computer equipment, data centres, leasehold improvements, and electrical equipment. Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of the right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. Office equipment assets are measured at cost, less any accumulated depreciation and impairment losses. Office equipment is depreciated over 3 years on a straight-line basis. Mining and computer equipment and leasehold improvements: Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their estimated useful lives. It is 3 to 4 years in the case of mining and computer equipment and 5 years in the case of the leasehold improvements, on a straight-line basis. Data centres: Depreciation on the data centres is recognised so as to write off the cost or valuation of assets less their residual values over their estimated useful lives of 25 years on a straight-line basis from when they are brought into use. Depreciation is recorded in the Income Statement within general administrative expenses once the asset is brought into use. Any land component is not depreciated. Electrical equipment: Depreciation is recognised on a straight-line basis to write off the cost less their residual values over their estimated useful lives of 7 years. Management assesses the useful lives based on historical experience with similar assets as well as anticipation of future events which may impact their useful life. |
Assets Held for Resale | Assets Held for Resale An asset is classified as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use, which is when the sale is highly probable, and it is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. Assets classified as held for sale are measured at the lower of the carrying amount upon classification and the fair value less costs to sell. Assets classified as held for sale and the associated liabilities are presented separately from other assets and liabilities in the Consolidated Balance Sheet. Once assets are classified as held for sale, property, plant and equipment and intangible assets are no longer subject to depreciation or amortisation. |
Impairment of non-financial assets | Impairment of non-financial assets At each reporting period end date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group and Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Digital assets | Digital assets Digital assets consist of mined bitcoin, and do not qualify for recognition as cash and cash equivalents or financial assets and have an active market which provides pricing information on an ongoing basis. The Group has assessed that the most appropriate accounting for its digital assets is IAS 2, Inventories, in characterising its holding of Digital assets as inventory. If assets held by the Group are principally acquired for the purpose of selling in the near future and generating a profit from fluctuations in price, such assets are accounted for as inventory, and changes in fair value (less costs to sell) are recognised in profit or loss. Digital assets are initially measured at fair value. Subsequently, digital assets are measured at fair value with gains and losses recognised directly in profit or loss. Digital assets are included in current assets as management intends to dispose of them within 12 months of the end of the reporting period. Digital assets are cryptocurrencies mined by the Group. Cryptocurrencies not mined by the Group are recorded as Intangible Assets (see note 18). |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are comprised of cash held at banks with high credit ratings. The Group considers the credit risk on cash and cash equivalents to be limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. |
Financial instruments | Financial instruments Financial assets: Financial assets are recognised in the Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Financial assets are subsequently measured at amortised cost, fair value through OCI, or fair value through profit and loss. The classification of financial assets at initial recognition that are debt instruments depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortised cost, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Subsequent measurement: For purposes of subsequent measurement, financial assets are classified in four categories: ● Financial assets at amortised cost ● Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) ● Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) ● Financial assets at fair value through profit or loss Equity Instruments: The Group subsequently measures all equity investments at fair value. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit or loss as applicable. Financial assets at amortised cost (debt instruments): This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met: ● The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and ● The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Interest received is recognised as part of finance income in the statement of profit or loss and other comprehensive income. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group’s financial assets at amortised cost include other receivables and cash and cash equivalents. Derecognition: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated Balance sheet) when: ● The rights to receive cash flows from the asset have expired; or ● The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Impairment of financial assets: The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original EIR. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows and usually occurs when past due for more than one year and not subject to enforcement activity. At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. The Company has an Intercompany loan due from its 100% Canadian subsidiary for which there is no formal agreement including payment date and therefore it cannot be considered to be in breach of an agreement and accordingly the loan is not subject to adjustments and is maintained at its book value in the financial statements. Financial liabilities: Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables and loans. Subsequent measurement: The measurement of financial liabilities depends on their classification, as described below: Loans and trade and other payables: After initial recognition, interest-bearing loans and borrowings and trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss and other comprehensive income. This category generally applies to trade and other payables. Derecognition: A financial liability is derecognised when the associated obligation is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit or loss or other comprehensive income. Equity instruments: Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Leases | Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. |
Taxation | Taxation The tax expense or recovery represents the sum of tax currently payable or receivable and deferred tax. Current tax: The tax currently payable or receivable is based on taxable profit or loss for the year. Taxable profit or loss differs from net profit or loss as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Deferred tax: Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred income tax assets are recognised on deductible temporary differences arising from investments in subsidiaries, associates and joint arrangements only to the extent that it is probable the temporary difference will reverse in the future and there is sufficient taxable profit available against which the temporary difference can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised. Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
Employee benefits | Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. The group does not have any pension schemes. |
Stock-based compensation | Share-based payments Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity. Cancellations or settlements are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately. |
RSUs (Restricted Stock Units) | RSUs (Restricted Stock Units) Where RSUs are granted to employees, the fair value of the RSUs at grant date is based upon the market price of the shares underlying the awards and is charged to the Statement of Comprehensive Income over the vesting period. The expense charged is adjusted based on actual forfeitures. |
Foreign exchange | Foreign exchange Transactions in currencies other than US dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are determined in foreign currencies are retranslated at the rates prevailing on the reporting end date - Gains and losses arising on translation are included in the income statement for the period. At each reporting end date, non-monetary assets and liabilities that are determined in foreign currencies are retranslated at the rates prevailing on the opening balance sheet date. Gains and losses arising on translation of subsidiary undertakings are included in other comprehensive income and contained within the foreign currency translation reserve. |
Earnings per share | Earnings per share Basic earnings per share is calculated by dividing: ● the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares; ● by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. ● Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: ● the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and ● the weighted average number of additional ordinary shares that would have been outstanding, assuming the conversion of all dilutive potential ordinary shares. |
FINANCIAL RISK FACTORS (Tables)
FINANCIAL RISK FACTORS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL RISK FACTORS | |
Schedule of foreign currency sensitivity | Effect on profit Change in GBP before tax rate $’000 2023 + % +/-74 2022 + % +/-77 Effect on profit Effect on pre- Change in CAD before tax tax equity rate $’000 $’000 2023 + % +/-274 — 2022 + % +/-1,384 +/-3,208 |
Schedule of interest rate sensitivity | Effect on Increase/decrease profit before tax in basis points $’000 2023 + + 2022 + + |
Schedule of contractual undiscounted cash flows | Less than 1 Between 1 Between 2 year and 2 years and 5 years Over 5 years At 31 December 2023 Loans 14,320 9,830 197 — Issued debt - bonds — — 38,170 — At December 2022 Loans 11,605 13,643 12,273 — Lease liabilities 5 5 15 511 Issued debt - bonds — — 37,810 — |
ADOPTION OF NEW AND REVISED S_2
ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS | |
Schedule of issued but not yet effective standards and interpretations | Standard or Interpretation Description Effective date for annual accounting period beginning on or after IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information 1 January 2024 IFRS S2 Climate-related Disclosures 1 January 2024 IAS 1 (Amendments) Classification of Liabilities as Current and Non-current 1 January 2024 IAS 1 (Amendments) Presentation of Non-current Liabilities with Covenants 1 January 2024 IAS 7 and IFRS 7 (Amendments) Disclosure on Supplier Finance Arrangements January 2024 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUES | |
Schedule of revenues | 2023 2022 2021 $’000 $’000 $’000 Crypto currency mining - worldwide 50,558 58,464 93,586 Crypto currency management fees – United States — 119 5,162 Total revenue 50,558 58,583 98,748 |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EXPENSES BY NATURE | |
Schedule of expenses by nature | 2023 2022 2021 Operating expenses $’000 $’000 $’000 Salary and other employee related costs 6,430 11,887 3,542 Restructuring and transaction related costs 4,969 11,862 Settlement re Crypto mining management fees (2,077) Insurance 2,128 7,455 1,874 Depreciation and amortisation 1,473 8,535 508 Legal, professional and regulatory fees 1,431 3,925 2,040 Indirect taxes 994 4,208 — Property tax 919 349 — Consulting fees 533 1,024 910 Repairs and maintenance 455 1,067 921 Audit fees 341 383 318 Office general expenses 285 1,039 564 Public relations and associated activities 255 642 930 Travel 226 839 170 Carbon credits 129 — 335 Bank charges 34 297 329 Derecognition of variable contingent consideration — — (468) Impairment of intangible assets — — 712 Hedging costs — — 434 Freight, postage and delivery 30 1,625 — Capital loss — 143 — Research costs — 11 — Foreign exchange loss (1,287) (21,234) 701 Total operating expenses 19,345 34,057 11,743 Finance costs – interest on borrowings and bond 11,556 22,661 2,935 Total finance costs 11,556 22,661 2,935 |
AUDITOR'S REMUNERATION (Tables)
AUDITOR'S REMUNERATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
AUDITOR'S REMUNERATION | |
Schedule of auditor's remuneration | 2023 2022 2021 $’000 $’000 $’000 In relation to statutory audit services 341 383 318 Total auditor’s remuneration 341 383 318 |
EMPLOYEES (Tables)
EMPLOYEES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEES | |
Schedule of number of employees | 2023 2022 2021 Number Number Number Directors and employees 30 82 26 |
Schedule of aggregate remuneration | 2023 2022 2021 $’000 $’000 $’000 Wages and salaries 6,017 11,051 3,042 Social security costs 250 799 265 Pension costs 163 37 33 Share based payments 3,892 6,096 1,825 10,322 17,983 5,165 |
DIRECTOR'S REMUNERATION (Tables
DIRECTOR'S REMUNERATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DIRECTOR'S REMUNERATION | |
Schedule of total remuneration for directors and key management | 2023 2022 2021 $’000 $’000 $’000 Director’s remuneration for qualifying services 591 1,588 1,139 Severance 765 — 176 Share based payments 916 1,883 574 Total remuneration for directors and key management 2,272 3,471 1,888 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
Schedule of earnings per share | 2023 2022 2021 Net loss for the period attributable to ordinary equity holders from continuing operations ($’000) (35,033) (228,961) 40,941 Finance Weighted average number of ordinary shares in issue (‘000) 503,917 473,930 397,513 Basic earnings/(loss) per share for continuing operations ($USD) (0.07) (0.48) 0.10 2023 2022 2021 Net loss for the period attributable to ordinary equity holders from continuing operations ($’000) (35,033) (228,961) 40,941 Diluted number of ordinary shares in issue (‘000) 503,917 473,930 415,201 Diluted earnings/(loss) per share for continuing operations ($USD) (0.07) (0.48) 0.1 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TAXATION | |
Schedule of taxes | 2023 2022 2021 Current tax: $’000 $’000 $’000 Current tax recovery on loss for the year — (11,731) 10,979 Total current tax — (11,731) 10,979 2023 2022 2021 Deferred tax: $’000 $’000 $’000 Origination and reversal of temporary differences — — 340 Total deferred tax liability — — 340 Total tax credit — (11,731) 11,319 |
Schedule of taxation charge in the financial statements | 2023 2022 2021 $’000 $’000 $’000 Profit (loss) before taxation (35,033) (240,693) 52,261 Expected tax charge (recovery) based on a weighted average of 25% (2022 - 25 )% (UK, US and Canada) (8,758) (60,172) 12,971 Effect of expenses not deductible in determining taxable profit 851 32,662 2,366 Temporary differences 5,930 8,470 (5,529) Other tax adjustments 18 254 (182) Origination and reversal of temporary differences — (1,023) 1,101 Unutilised tax losses carried forward 1,959 8,078 592 Taxation charge in the financial statements — (11,731) 11,319 |
INVESTMENT IN SUBSIDIARIES AN_2
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY | |
Summary of company's subsidiaries | Details of the Company’s subsidiaries at 31 December 2023 are as follows: Country of Ownership Voting Power Nature of Name of Undertaking Incorporation Interest (%) Held (%) Business Argo Innovation Labs Inc. Canada 100 % 100 % *** 9377-2556 Quebec Inc. Canada 100 % 100 % ** 9366-5230 Quebec Inc. Canada 100 % 100 % ** Argo Holdings US Inc. USA 100 % 100 % **** Argo Operating US LLC USA 100 % 100 % * * The provision of cryptocurrency mining services ** The provision of cryptocurrency mining sites *** Converted from the provision of cryptocurrency mining services to cost centre in 2023 **** Holding company |
Summary of investment in subsidiaries | 2023 2022 Investment in subsidiaries $’000 $’000 At January 1 65,000 15,067 Impairment (21,017) — Additions — 65,000 Disposals — (15,067) At 31 December 43,983 65,000 |
Summary of effects of the disposal of subsidiaries | Group At 28 December 2022 $000 Carrying amounts of assets and liabilities as at the date of disposal: Cash and bank balances 1,678 Property, plant and equipment 129,736 Trade and other debtors 367 Total assets 131,782 Trade and other creditors 12,077 Total liabilities 12,077 Net assets disposed of 119,705 Cash flows arising from disposal: Proceeds used to paydown existing debt 56,029 Proceeds used for new loans 8,258 Total Proceeds 64,287 Net assets disposed of (as above) 119,705 Loss on disposal (55,418) |
ASSETS AND LIABLITIES HELD FO_2
ASSETS AND LIABLITIES HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ASSETS AND LIABLITIES HELD FOR SALE | |
Schedule of material assets and liabilities reclassified to be held for sale | 2023 Non-current Assets $'000 Tangible Fixed Assets 2,725 Right of use assets 536 Assets held for sale 3,261 2023 Non-current liabilities $'000 Mortgage Payable 1,532 Lease Liability 558 Liabilities held for sale 2,090 |
INVESTMENTS AT FAIR VALUE THR_2
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS | |
Schedule of investments at fair value through profit or loss | Non-current 2023 2022 Group $’000 $’000 At 1 January 414 543 Foreign exchange movement — 1 Additions — 300 Fair value through profit or loss — (430) Disposals (14) — At 31 December 400 414 |
INVESTMENTS ACCOUNTED FOR USI_2
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | |
Schedule of investments accounted for using the equity method | 2023 2022 $’000 $’000 Opening balance 2,863 18,642 Share of loss (716) (6,027) Share of fair value (losses)/gains on intangible assets through other comprehensive income — (8,744) Foreign exchange movement 89 (1,008) Write off of investment (2,236) — Closing balance — 2,863 |
Schedule of nature of investment in associates | Nature of investment in associates: % of Address of the ownership Nature of Measurement Name of entity registered office interest relationship method Emergent Entertainment PLC Previously Pluto Digital plc) Hill Dickinson LLP, 8th Floor The Broadgate Tower, 20 Primrose Street, London, United Kingdom, EC2A 2EW 19.5 % Refer below Equity |
INTANGIBLE FIXED ASSETS (Tables
INTANGIBLE FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE FIXED ASSETS | |
Schedule of intangible fixed assets | Digital 2023 Goodwill assets Website Total Group $’000 $’000 $’000 $’000 Cost At 1 January 2023 96 5,722 873 6,691 Foreign Exchange Movements 16 334 19 369 Disposals — (727) — (727) At 31 December 2023 112 5,329 892 6,333 Amortisation and impairment At 1 January 2023 — 3,809 779 4,588 Foreign exchange movement — 90 1 91 Fair value movement — 654 — 654 Amortisation charged during the period — — 112 112 At 31 December 2023 — 4,553 892 5,445 Balance At 31 December 2023 112 776 — 888 Digital 2022 Goodwill assets Website Total Group $’000 $’000 $’000 $’000 Cost At 1 January 2022 96 6,394 873 7,364 Foreign Exchange movement — (274) — (274) Additions — 2,084 — 2,084 Disposals — (2,482) — (2,482) At 31 December 2022 96 5,722 873 6,691 Amortisation and impairment At 1 January 2022 — 146 543 689 Foreign exchange movement — (1,492) (31) (1,521) Fair Value movement — 5,155 — 5,155 Amortisation charged during the period — — 267 267 At 31 December 2022 — 3,809 779 4,588 Balance At 31 December 2022 96 1,913 94 2,103 |
Schedule of fair value of crypto assets | Fair value Crypto asset name Coins / tokens $’000 Polkadot – DOT 16,554 135 Ethereum – ETH 4 10 USDC (stable coin – fixed to USD) 31,713 55 Other tokens, NFTs and other digital assets N/A 576 As at 31 December 2023 — 776 Fair value Crypto asset name Coins / tokens $’000 Token Deals N/A 931 Ethereum – ETH 518 626 Polkadot – DOT 32,964 142 Other tokens, NFTs and other digital assets N/A 214 As at 31 December 2022 1,913 |
TANGIBLE FIXED ASSETS (Tables)
TANGIBLE FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TANGIBLE FIXED ASSETS | |
Schedule of property plant and equipment | Mining Data Machinery Centres Equipment Total Group $’000 $’000 $’000 $’000 Cost At 1 January 2023 162,839 8,700 5,414 176,953 Foreign Exchange Movement 108 517 569 1,195 Additions 5,203 — 27 5,230 Transfer to Assets held for sale — (2,937) (1,976) (4,913) At 31 December 2023 168,150 6,280 4,034 178,464 Depreciation and impairment At 1 January 2023 (97,481) (1,924) (31) (99,437) Foreign exchange movement — (38) (43) (81) Depreciation charged during the period (18,656) (359) (1,000) (20,015) Impairment in asset (855) — — (855) Transfer to Assets held for sale — 784 868 1,652 At 31 December 2023 (116,992) (1,537) (206) (118,736) Carrying amount At 1 January 2023 65,358 6,775 5,383 77,516 At 31 December 2023 51,158 4,743 3,828 59,728 Mining Assets under Data Machines construction Centres Equipment Total Group $’000 $’000 $’000 $’000 $’000 Cost At 1 January 2022 70,539 73,924 7,900 5,313 157,676 Foreign exchange movement 3,310 8,787 701 — 12,797 Additions 162,315 — 99 103 162,518 Transfers to another class – cost — (82,711) 82,711 — — Disposals (73,325) — (82,711) (2) (156,038) At 31 December 2022 162,839 — 8,700 5,414 176,953 Depreciation and impairment At 1 January 2022 (22,316) — (364) — (22,680) Foreign exchange movement (1,047) — (17) — (1,064) Depreciation charged (19,955) — (8,286) (31) (28,273) Impairment in asset (54,163) — (271) — (54,434) Transfer to another class — — 7,014 — 7,014 At 30 December 2022 (97,481) — (1,924) (31) (99,437) Carrying amount At 1 January 2022 48,223 73,924 7,536 5,313 134,966 At 31 December 2022 65,358 — 6,775 5,383 77,516 |
DPN LLC Inc | |
TANGIBLE FIXED ASSETS | |
Schedule of asset acquisitions | Consideration at 8 March 2022 $’000 Share based payment 4,355 Contingent consideration to be settled in shares 10,710 Total 15,065 Allocated as follows $’000 Tangible fixed assets (Asset under construction) 15,065 Total 15,065 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TRADE AND OTHER RECEIVABLES | |
Schedule of total trade and other receivables | Group Group 2023 2022 $’000 $’000 Trade and other receivables 1,131 — Prepaids 1,355 — Mining equipment prepayments — 5,978 Other taxation and social security 1,349 824 Total trade and other receivables 3,835 6,802 |
DIGITAL ASSETS (Tables)
DIGITAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DIGITAL ASSETS | |
Schedule of crypto assets representing a fair value | 2023 2022 Group $’000 $’000 At 1 January 443 108,956 Foreign Exchange Movement 24 833 Crypto assets purchased and received — 264 Crypto assets mined 50,558 60,172 Total additions 50,582 61,269 Disposals Transferred to/from intangible assets — 420 Crypto assets sold (51,378) (114,646) Total disposals (51,378) (114,226) Fair value movements Gain/(loss) on crypto asset sales 738 (55,410) Movements on crypto assets held at the year end — (145) Total fair value movements 738 (55,555) At 31 December 385 443 |
SHARE OPTIONS, RESTRICTED STO_2
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | |
Summary of options and warrants over ordinary shares have been granted by the company and are outstanding | The following table summarizes share-based compensation expense for the years ended December 31, 2023 and 2022: 2023 2022 Stock options and warrants 3,332 6,096 Restricted stock units 287 — Performance stock units 273 — 3,892 6,096 Number of Weighted options and average exercise warrants ‘000 price £ At 1 January 2023 18,698 0.78 Granted 659 0.13 Exercised — — Lapsed (8,329) 0.67 Outstanding at 31 December 2023 11,028 0.83 Exercisable at 31 December 2023 7,904 0.89 Number of Weighted options and average exercise warrants ‘000 price £ At 1 January 2022 17,689 0.81 Granted 5,220 0.50 Exercised (1,593) 0.07 Lapsed (2,618) 0.89 Outstanding at 31 December 2022 18,698 0.78 Exercisable at 31 December 2022 11,345 0.61 |
Summary of fair value of options and warrants determined using the black-scholes option pricing model | 2023 2022 Grant date share price £ 0.14 0.94 - 1.57 Exercise price £ 0.13 0.94 - 1.57 Volatility 187 % 91 – 169 % Life 10 years 5 – 10 years Risk free rate 3.4 % 1.6 - 3.6 % Dividend yield 0 % 0 % |
Restricted Stock Units | |
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | |
Schedule of outstanding awards | 2023 Weighted Average Number of Weighted Average Remaining Vesting Awards Grant Date Price £ Period (months) Outstanding at beginning of period — — — Granted during the period 12,041,192 0.13 — Vested during the period (3,617,136) 0.13 — Forfeited during the period (1,424,239) 0.13 — Outstanding at the end of period 6,999,817 0.12 28 |
Performance Stock Units | |
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | |
Schedule of outstanding awards | 2023 Weighted Average Number of Weighted Average Remaining Vesting Awards Grant Date Price $ Period (months) Outstanding at beginning of the period — — — Granted during the period 2,850,000 1.15 — Vested during the period — — — Forfeited during the period — — — Outstanding at the end of the period 2,850,000 1.15 35 |
ORDINARY SHARES (Tables)
ORDINARY SHARES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES | |
Schedule of common stock | As at 31 As at 31 December 2023 December 2022 $’000 $’000 Ordinary share capital Issued and fully paid 477,825,166 Ordinary Shares of $0.001 each 634 622 Issued in the period 59,138,305 Ordinary Shares of $0.001 each 78 12 536,963,471 Ordinary Shares of $0.001 each 712 634 Additional paid in Capital At beginning of the period 202,103 196,911 Issued in the period 7,676 5,192 Issue costs — — At the end of period 209,779 202,103 |
RESERVES (Tables)
RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RESERVES | |
Schedule of description of reserves within equity | Reserve Description Ordinary Shares Represents the nominal value of equity shares Share Premium Amount subscribed for share capital in excess of nominal value Share based payment reserve Represents the fair value of options and warrants granted less amounts transferred on exercise, lapse or expiry Currency translation reserve Cumulative effects of translation of opening balances on non-monetary assets between subsidiaries functional currencies (Canadian dollars and Uk Sterling) and Group presentational currency (US Dollars). Fair value reserve Cumulative net gains on the fair value of intangible assets Other comprehensive income of equity accounted associates The other comprehensive income of any associates is recognised in this reserve Accumulated surplus Cumulative net gains and losses and other transactions with equity holders not recognised elsewhere. |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TRADE AND OTHER PAYABLES | |
Schedule of trade payables and other payables | Group Group 2023 2022 $’000 $’000 Trade payables 2,336 3,079 Accruals and other payables 7,153 6,012 Other taxation and social security 1,686 689 Total trade and other creditors 11,175 9,780 |
LOANS AND BORROWINGS (Tables)
LOANS AND BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND BORROWINGS | |
Schedule of loans and borrowings | As at 31 December As at 31 December 2023 2022 Non-current liabilities $’000 $’000 Issued debt - bond (a) 38,170 37,810 Galaxy loan (b) 9,230 18,475 Mortgage – Quebec facility (c) 797 2,785 Lease liability — 531 Total 48,197 59,601 Current liabilities Galaxy loan (b) 13,444 10,169 Mortgage- Quebec facility (c) 600 1,130 Other Loans 276 306 Lease liability — 5 Total 14,320 11,610 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS | |
Schedule of carrying amount of financial assets and liabilities | Group Group 2023 2022 $’000 $’000 Carrying amount of financial assets Measured at amortised cost - Mining equipment prepayments — 5,978 - Trade and other receivables 1,131 — - Cash and cash equivalents 7,443 20,091 Measured at fair value through profit or loss 400 414 Total carrying amount of financial assets 8,974 26,483 Carrying amount of financial liabilities Measured at amortised cost - Trade and other payables 7,501 10,020 - Short term loans 280 11,605 - Long term loans 25,599 25,915 - Issued debt - bonds 38,170 37,810 - Lease liabilities — 545 Total carrying amount of financial liabilities 71,550 85,895 |
Schedule of assets that are measured at fair value | Level 1 Level 2 Level 3 Total Assets $’000 $’000 $’000 $’000 Financial assets at fair value through profit or loss - Equity holdings — — 400 400 - Digital assets — 385 — 385 Total at 31 December 2023 — 385 400 785 Level 1 Level 2 Level 3 Total Assets $’000 $’000 $’000 $’000 Financial assets at fair value through profit or loss - Equity holdings 14 — 400 414 - Digital assets — 443 — 443 Total at 31 December 2022 329 443 400 857 |
COMPANY INFORMATION (Details)
COMPANY INFORMATION (Details) | Mar. 04, 2022 | May 11, 2022 | Jan. 12, 2018 |
Argo Innovation Facilities (US) Inc. | |||
COMPANY INFORMATION | |||
Proportion of ownership interest in subsidiary | 100% | ||
Argo innovation Labs Inc. | |||
COMPANY INFORMATION | |||
Percentage of equity interests acquired | 100% | ||
DPN LLC Inc | |||
COMPANY INFORMATION | |||
Percentage of equity interests acquired | 100% | ||
9377 2556 and 9366 5230 Quebec Inc | |||
COMPANY INFORMATION | |||
Percentage of equity interests acquired | 100% |
BASIS OF PREPARATION (Details)
BASIS OF PREPARATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax credit (expense) | $ 11,731 | $ (11,319) | |
Currency translation reserve | $ 779 | 20,639 | 8,834 |
Loss for the period | $ (35,033) | (228,961) | $ 40,942 |
Deferred tax liabilities | 0 | ||
Previously stated | |||
Tax credit (expense) | 446 | ||
Currency translation reserve | 20,184 | ||
Loss for the period | (240,246) | ||
Deferred tax liabilities | (10,589) | ||
Increase (decrease) due to corrections of prior period errors | |||
Tax credit (expense) | 11,285 | ||
Currency translation reserve | 455 | ||
Loss for the period | 11,285 | ||
Deferred tax liabilities | $ 10,589 |
ACCOUNTING POLICIES - (Details)
ACCOUNTING POLICIES - (Details) $ in Millions | 12 Months Ended | |
Dec. 28, 2022 USD ($) | Dec. 31, 2023 USD ($) item | |
ACCOUNTING POLICIES | ||
Number of reportable segments | item | 1 | |
31 March 2024 to 30 June 2025 | Borrowings and bonds | ||
ACCOUNTING POLICIES | ||
Debt service obligations | $ 18 | |
Improvements To Data Centre | ||
ACCOUNTING POLICIES | ||
Useful life, property, plant and equipment | 5 years | |
Office Equipment | ||
ACCOUNTING POLICIES | ||
Useful life, property, plant and equipment | 3 years | |
Data centres and assets under construction | ||
ACCOUNTING POLICIES | ||
Useful life, property, plant and equipment | 25 years | |
Electrical equipment | ||
ACCOUNTING POLICIES | ||
Useful life, property, plant and equipment | 7 years | |
Argo innovation Labs Inc. | ||
ACCOUNTING POLICIES | ||
Proportion of ownership interest in subsidiary | 100% | |
Loan agreement with Galaxy Digital LP | ||
ACCOUNTING POLICIES | ||
Amount of loan facility | $ 35 | |
Loan agreement with Galaxy Digital LP | Asset-backed loans | ||
ACCOUNTING POLICIES | ||
Consideration received for sale of assets under loan agreement | $ 65 | |
Borrowings term | 3 years | |
Reduction in total indebtedness | $ 41 | |
Minimum | ||
ACCOUNTING POLICIES | ||
Percentage of voting rights | 20% | |
Minimum | Mining And Computer Equipment | ||
ACCOUNTING POLICIES | ||
Useful life, property, plant and equipment | 3 years | |
Maximum | ||
ACCOUNTING POLICIES | ||
Percentage of voting rights | 50% | |
Maximum | Mining And Computer Equipment | ||
ACCOUNTING POLICIES | ||
Useful life, property, plant and equipment | 4 years |
FINANCIAL RISK FACTORS - Foreig
FINANCIAL RISK FACTORS - Foreign currency sensitivity (Details) - Currency risk - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CAD | ||
FINANCIAL RISK FACTORS | ||
Increase in rate | 10% | 10% |
Decrease in rate | 10% | 10% |
Effect on profit before tax, reasonably possible increase in risk component | $ 274 | $ 1,384 |
Effect on profit before tax, reasonably possible decrease in risk component | $ (274) | (1,384) |
Effect on pre-tax equity, reasonably possible decrease in risk component | $ (3,208) | |
GBP | ||
FINANCIAL RISK FACTORS | ||
Increase in rate | 10% | 10% |
Decrease in rate | 10% | 10% |
Effect on profit before tax, reasonably possible increase in risk component | $ 74 | $ 77 |
Effect on profit before tax, reasonably possible decrease in risk component | $ (74) | $ (77) |
FINANCIAL RISK FACTORS - Intere
FINANCIAL RISK FACTORS - Interest rate sensitivity (Details) - Interest risk - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FINANCIAL RISK FACTORS | ||
Increase in rate | 1.80% | 1.80% |
Decrease in rate | 1.80% | 1.80% |
Effect on profit before tax, reasonably possible increase in risk component | $ 464 | $ 665 |
Effect on profit before tax, reasonably possible decrease in risk component | $ (464) | $ (665) |
FINANCIAL RISK FACTORS - Contra
FINANCIAL RISK FACTORS - Contractual undiscounted cash flows (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Less than 1 year | ||
Contractual undiscounted cash flows | ||
Loans | $ 14,320 | $ 11,605 |
Lease liabilities | 5 | |
Between 1 and 2 years | ||
Contractual undiscounted cash flows | ||
Loans | 9,830 | 13,643 |
Lease liabilities | 5 | |
Between 2 and 5 years | ||
Contractual undiscounted cash flows | ||
Loans | 197 | 12,273 |
Lease liabilities | 15 | |
Issued debt - bonds | $ 38,170 | 37,810 |
Over 5 years | ||
Contractual undiscounted cash flows | ||
Lease liabilities | $ 511 |
KEY JUDGEMENTS AND ESTIMATES (D
KEY JUDGEMENTS AND ESTIMATES (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period, share-based payment arrangements | 3 years |
Period between grant of award and first vesting occasion | 6 months |
Vesting interval after first vesting occasion | 3 months |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES | |||
Total revenue | $ 50,558 | $ 58,583 | $ 98,748 |
Crypto currency mining | |||
REVENUES | |||
Total revenue | $ 50,558 | 58,464 | 93,586 |
United states | Crypto currency management fees | |||
REVENUES | |||
Total revenue | $ 119 | $ 5,162 |
REVENUES - Textual Information
REVENUES - Textual Information (Details) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 23, 2022 USD ($) item | Dec. 31, 2021 item | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Power Credits | $ 3,800,000 | $ 7,163,000 | $ 0 | ||
Number of bitcoins held | item | 2,441 | ||||
Fair value of crypto assets | 80,000,000 | ||||
Gain on hedging | 2,097,000 | ||||
Galaxy Digital LP, on demand loan | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Amount of loan facility | $ 30,000,000 | ||||
Number of bitcoins pledged as collateral for loans | item | 1,504 | ||||
Gain on hedging | $ 2,100,000 |
EXPENSES BY NATURE (Details)
EXPENSES BY NATURE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses | |||
Salary and other employee related costs | $ 6,430 | $ 11,887 | $ 3,542 |
Restructuring and transaction related costs | 4,969 | 11,862 | |
Settlement re Crypto mining management fees | (2,077) | ||
Insurance | 2,128 | 7,455 | 1,874 |
Depreciation and amortisation | 1,473 | 8,535 | 508 |
Legal, professional and regulatory fees | 1,431 | 3,925 | 2,040 |
Indirect taxes | 994 | 4,208 | |
Property tax | 919 | 349 | |
Consulting fees | 533 | 1,024 | 910 |
Repairs and maintenance | 455 | 1,067 | 921 |
Audit fees | 341 | 383 | 318 |
Office general expenses | 285 | 1,039 | 564 |
Public relations and associated activities | 255 | 642 | 930 |
Travel | 226 | 839 | 170 |
Carbon credits | 129 | 335 | |
Bank charges | 34 | 297 | 329 |
Derecognition of variable contingent consideration | (468) | ||
Impairment of intangible assets | 712 | ||
Hedging Costs | 434 | ||
Freight, postage & delivery | 30 | 1,625 | |
Capital loss | 143 | ||
Research costs | 11 | ||
Foreign exchange loss | (1,287) | (21,234) | 701 |
Total operating expenses | 19,345 | 34,057 | 11,743 |
Finance costs - interest on borrowings and bond | 11,556 | 22,661 | 2,935 |
Total finance costs | $ 11,556 | $ 22,661 | $ 2,935 |
AUDITOR'S REMUNERATION (Details
AUDITOR'S REMUNERATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AUDITOR'S REMUNERATION | |||
In relation to statutory audit services | $ 341 | $ 383 | $ 318 |
Total auditor's remuneration | $ 341 | $ 383 | $ 318 |
EMPLOYEES - Aggregate remunerat
EMPLOYEES - Aggregate remuneration comprised (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) | |
EMPLOYEES | |||
Directors and employees | 30 | 82 | 26 |
Aggregate remuneration | |||
Wages and salaries | $ 6,017 | $ 11,051 | $ 3,042 |
Social security costs | 250 | 799 | 265 |
Pension costs | 163 | 37 | 33 |
Share based payments | 3,892 | 6,096 | 1,825 |
Employee benefits expense | $ 10,322 | $ 17,983 | $ 5,165 |
DIRECTOR'S REMUNERATION (Detail
DIRECTOR'S REMUNERATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
DIRECTOR'S REMUNERATION | |||
Director's remuneration for qualifying services | $ 591 | $ 1,588 | $ 1,139 |
Severance | 765 | 176 | |
Share based payments | 916 | 1,883 | 574 |
Total remuneration for directors and key management | $ 2,272 | $ 3,471 | $ 1,888 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EARNINGS PER SHARE | |||
Net profit/(loss) for the period attributable to ordinary equity holders from continuing operations | $ (35,033) | $ (228,961) | $ 40,942 |
Net loss for the period attributable to ordinary equity holders from continuing operations, basic | (35,033) | (228,961) | 40,941 |
Net loss for the period attributable to ordinary equity holders from continuing operations, diluted | $ (35,033) | $ (228,961) | $ 40,941 |
Finance Weighted average number of ordinary shares in issue | 503,917 | 473,930 | 397,513 |
Diluted number of ordinary shares in issue | 503,917 | 473,930 | 415,201 |
Basic earnings/(loss) per share for continuing operations ($USD) | $ (0.07) | $ (0.48) | $ 0.10 |
Diluted earnings/(loss) per share for continuing operations ($USD) | $ (0.07) | $ (0.48) | $ 0.1 |
TAXATION - Income tax expense (
TAXATION - Income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax: | |||
Current tax recovery on loss for the year | $ (11,731) | $ 10,979 | |
Total current tax | (11,731) | 10,979 | |
Deferred tax: | |||
Origination and reversal of temporary differences | 340 | ||
Total deferred tax liability | 340 | ||
Total tax (credit)/charge | (11,731) | 11,319 | |
Profit (loss) before taxation | $ (35,033) | (240,693) | 52,261 |
Expected tax charge (recovery) based on a weighted average of 25% (2022 - 25)% (UK, US and Canada) | (8,758) | (60,172) | 12,971 |
Effect of expenses not deductible in determining taxable profit | 851 | 32,662 | 2,366 |
Temporary differences | 5,930 | 8,470 | (5,529) |
Other tax adjustments | 18 | 254 | (182) |
Origination and reversal of temporary differences | (1,023) | 1,101 | |
Unutilised tax losses carried forward | $ 1,959 | 8,078 | 592 |
Taxation charge in the financial statements | $ (11,731) | $ 11,319 | |
Weighted average tax rate | 25% | 25% | |
Tax losses available to be carried forward and used against trading profits arising in future periods | $ 136,000 | $ 87,000 | |
UK, US and Canada | |||
Deferred tax: | |||
Weighted average tax rate | 25% | 25% |
INVESTMENT IN SUBSIDIARIES AN_3
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY - Details of the Company's subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Argo innovation Labs Inc. | |
INVESTMENT IN SUBSIDIARIES | |
Ownership Interest (%) | 100% |
Voting Power Held (%) | 100% |
9377-2556 Quebec Inc. | |
INVESTMENT IN SUBSIDIARIES | |
Ownership Interest (%) | 100% |
Voting Power Held (%) | 100% |
9366-5230 Quebec Inc. | |
INVESTMENT IN SUBSIDIARIES | |
Ownership Interest (%) | 100% |
Voting Power Held (%) | 100% |
Argo Holdings US Inc. | |
INVESTMENT IN SUBSIDIARIES | |
Ownership Interest (%) | 100% |
Voting Power Held (%) | 100% |
Argo Operating US LLC | |
INVESTMENT IN SUBSIDIARIES | |
Ownership Interest (%) | 100% |
Voting Power Held (%) | 100% |
INVESTMENT IN SUBSIDIARIES AN_4
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY - Investment in subsidiaries (Details) - Company - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of subsidiaries [line items] | ||
At 1 January | $ 65,000 | $ 15,067 |
Impairment | (21,017) | |
Additions | 65,000 | |
Disposals | (15,067) | |
At 31 December | $ 43,983 | $ 65,000 |
INVESTMENT IN SUBSIDIARIES AN_5
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY - Investment in subsidiaries (Details) - Company - USD ($) $ in Thousands | Dec. 31, 2023 | Nov. 22, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY | ||||
Value of shares contributed in subsidiaries | $ 43,983 | $ 65,000 | $ 15,067 | |
Argo Holdings US Inc. [Member] | ||||
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY | ||||
Contributed Shares Value | $ 65,000 |
INVESTMENT IN SUBSIDIARIES AN_6
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY - disposal of subsidiaries (Details) (Imported) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2021 | |
LOSS ON SALE OF SUBSIDIARY | ||||
Loss on sale of subsidiary | $ (55,418) | |||
Company | ||||
LOSS ON SALE OF SUBSIDIARY | ||||
Investment in subsidiaries | $ 65,000 | $ 43,983 | $ 15,067 | |
Galaxy Power LLC | ||||
LOSS ON SALE OF SUBSIDIARY | ||||
Proceeds from sale of subsidiary | $ 64,287 | |||
Loss on sale of subsidiary | (55,418) | |||
Galaxy Power LLC | Company | ||||
LOSS ON SALE OF SUBSIDIARY | ||||
Investment in subsidiaries | $ 120,000 |
INVESTMENT IN SUBSIDIARIES AN_7
INVESTMENT IN SUBSIDIARIES AND LOSS ON SALE OF SUBSIDIARY - disposal of subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | |
Carrying amounts of assets and liabilities as at the date of disposal: | |||||
Cash and bank balances | $ 20,092 | $ 7,443 | $ 15,923 | $ 2,785 | |
Property, plant and equipment | 76,991 | 59,728 | 150,571 | ||
Total assets | 110,233 | 75,940 | 388,148 | ||
Total liabilities | 85,655 | $ 75,782 | $ 115,876 | ||
Cash flows arising from disposal: | |||||
Loss on sale of subsidiary | $ (55,418) | ||||
Galaxy Power LLC | |||||
Carrying amounts of assets and liabilities as at the date of disposal: | |||||
Cash and bank balances | $ 1,678 | ||||
Property, plant and equipment | 129,736 | ||||
Trade and other debtors | 367 | ||||
Total assets | 131,782 | ||||
Trade and other creditors | 12,077 | ||||
Total liabilities | 12,077 | ||||
Net assets | 119,705 | ||||
Cash flows arising from disposal: | |||||
Proceeds used to paydown existing debt | 56,029 | ||||
Proceeds used for new loans | 8,258 | ||||
Total Proceeds | 64,287 | ||||
Net assets disposed of (as above) | 119,705 | ||||
Loss on sale of subsidiary | $ (55,418) |
ASSETS AND LIABLITIES HELD FO_3
ASSETS AND LIABLITIES HELD FOR SALE (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-current assets | ||||
Tangible fixed assets | $ 59,728 | $ 76,991 | $ 150,571 | |
Total non-current assets | 61,016 | 82,896 | $ 177,788 | |
Non-current liabilities | ||||
Mortgage Payable | 48,197 | $ 59,601 | ||
Disposal of major subsidiary | Quebec Inc. 9366-5230 ("Mirabel") | ||||
ASSETS AND LIABILITIES HELD FOR SALE | ||||
Proceeds from sale of subsidiary | $ 6,100 | |||
Assets and liabilities held for sale | ||||
Non-current assets | ||||
Tangible fixed assets | 2,725 | |||
Right of use assets | 536 | |||
Total non-current assets | 3,261 | |||
Non-current liabilities | ||||
Mortgage Payable | 1,532 | |||
Lease liability | 558 | |||
Total non-current liabilities | $ 2,090 |
INVESTMENTS AT FAIR VALUE THR_3
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INVESTMENTS AT FAIR VALUE THROUGH INCOME OR LOSS | ||
Financial assets, at beginning of period | $ 26,483 | |
Financial assets, at end of period | 8,974 | $ 26,483 |
Financial assets at fair value through profit or loss | ||
INVESTMENTS AT FAIR VALUE THROUGH INCOME OR LOSS | ||
Financial assets, at beginning of period | 857 | |
Financial assets, at end of period | 785 | 857 |
Financial assets at fair value through profit or loss | Equity holdings | ||
INVESTMENTS AT FAIR VALUE THROUGH INCOME OR LOSS | ||
Financial assets, at beginning of period | 414 | 543 |
Foreign exchange movement | 1 | |
Additions | 300 | |
Fair value through profit or loss | (430) | |
Disposals | (14) | |
Financial assets, at end of period | $ 400 | $ 414 |
INVESTMENTS ACCOUNTED FOR USI_3
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | ||
Opening balance | $ 2,863 | $ 18,642 |
Share of loss | (716) | (6,027) |
Share of fair value (losses)/gains on intangible assets through other comprehensive income | (8,744) | |
Foreign exchange movement | 89 | (1,008) |
Write off of investment | $ (2,236) | |
Closing balance | $ 2,863 |
INVESTMENTS ACCOUNTED FOR USI_4
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD - Nature of investment in associates (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Emergent Entertainment PLC (Previously Pluto Digital plc) | |
Disclosure of associates [line items] | |
% of ownership interest | 19.50% |
INTANGIBLE FIXED ASSETS (Detail
INTANGIBLE FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | $ 2,103 | $ 7,560 |
Intangible assets and goodwill, end of period | 888 | 2,103 |
Goodwill | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 96 | |
Intangible assets and goodwill, end of period | 112 | 96 |
Digital Assets | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 1,913 | |
Intangible assets and goodwill, end of period | 776 | 1,913 |
Website | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 94 | |
Intangible assets and goodwill, end of period | 94 | |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 6,691 | 7,364 |
Foreign Exchange movement | 369 | (274) |
Additions | 2,084 | |
Disposals | (727) | (2,482) |
Intangible assets and goodwill, end of period | 6,333 | 6,691 |
Cost | Goodwill | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 96 | 96 |
Foreign Exchange movement | 16 | |
Intangible assets and goodwill, end of period | 112 | 96 |
Cost | Digital Assets | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 5,722 | 6,394 |
Foreign Exchange movement | 334 | (274) |
Additions | 2,084 | |
Disposals | (727) | (2,482) |
Intangible assets and goodwill, end of period | 5,329 | 5,722 |
Cost | Website | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | 873 | 873 |
Foreign Exchange movement | 19 | |
Intangible assets and goodwill, end of period | 892 | 873 |
Amortisation and impairment | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | (4,588) | (689) |
Foreign Exchange movement | 91 | (1,521) |
Fair value movement | 654 | 5,155 |
Amortisation charged during the period | 112 | 267 |
Intangible assets and goodwill, end of period | (5,445) | (4,588) |
Amortisation and impairment | Digital Assets | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | (3,809) | (146) |
Foreign Exchange movement | 90 | (1,492) |
Fair value movement | 654 | 5,155 |
Intangible assets and goodwill, end of period | (4,553) | (3,809) |
Amortisation and impairment | Website | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Intangible assets and goodwill, beginning of period | (779) | (543) |
Foreign Exchange movement | 1 | (31) |
Amortisation charged during the period | 112 | 267 |
Intangible assets and goodwill, end of period | $ (892) | $ (779) |
INTANGIBLE FIXED ASSETS - Movem
INTANGIBLE FIXED ASSETS - Movement in fair value in crypto assets (Details) - Digital Assets $ in Thousands | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item |
INTANGIBLE FIXED ASSETS | ||
Intangible fixed assets | $ 776 | $ 1,913 |
Polkadot - DOT | ||
INTANGIBLE FIXED ASSETS | ||
Coins / tokens | item | 16,554 | 32,964 |
Intangible fixed assets | $ 135 | $ 142 |
Ethereum - ETH | ||
INTANGIBLE FIXED ASSETS | ||
Coins / tokens | item | 4 | 518 |
Intangible fixed assets | $ 10 | $ 626 |
USDC (stable coin - fixed to USD) | ||
INTANGIBLE FIXED ASSETS | ||
Coins / tokens | item | 31,713 | |
Intangible fixed assets | $ 55 | |
Token deals | ||
INTANGIBLE FIXED ASSETS | ||
Intangible fixed assets | 931 | |
Other tokens, NFT's and other digital assets [Member] | ||
INTANGIBLE FIXED ASSETS | ||
Intangible fixed assets | $ 576 | $ 214 |
TANGIBLE FIXED ASSETS (Details)
TANGIBLE FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | $ 77,516 | $ 134,966 |
Impairment in asset | (855) | (55,838) |
Property, plant and equipment, end of period | 77,516 | |
Cost | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 176,953 | 157,676 |
Foreign Exchange Movement | 12,797 | |
Additions | 162,518 | |
Disposals | (156,038) | |
Property, plant and equipment, end of period | 176,953 | |
Depreciation and impairment | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | (99,437) | (22,680) |
Foreign Exchange Movement | (1,064) | |
Transfer to another class | 7,014 | |
Depreciation charged during the period | (28,273) | |
Impairment in asset | (54,434) | |
Property, plant and equipment, end of period | (99,437) | |
Mining Machinery | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 65,358 | 48,223 |
Property, plant and equipment, end of period | 51,158 | 65,358 |
Mining Machinery | Cost | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 162,839 | 70,539 |
Foreign Exchange Movement | 108 | 3,310 |
Additions | 5,203 | 162,315 |
Disposals | (73,325) | |
Property, plant and equipment, end of period | 168,150 | 162,839 |
Mining Machinery | Depreciation and impairment | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | (97,481) | (22,316) |
Foreign Exchange Movement | (1,047) | |
Depreciation charged during the period | (18,656) | (19,955) |
Impairment in asset | (855) | (54,163) |
Property, plant and equipment, end of period | (116,992) | (97,481) |
Assets Under Construction | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 77,516 | 73,924 |
Property, plant and equipment, end of period | 59,728 | 77,516 |
Assets Under Construction | Cost | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 176,953 | 73,924 |
Foreign Exchange Movement | 1,195 | 8,787 |
Additions | 5,230 | |
Transfer to Assets held for sale | (4,913) | |
Transfer to another class | (82,711) | |
Property, plant and equipment, end of period | 178,464 | 176,953 |
Assets Under Construction | Depreciation and impairment | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | (99,437) | |
Foreign Exchange Movement | (81) | |
Transfer to Assets held for sale | 1,652 | |
Depreciation charged during the period | (20,015) | |
Impairment in asset | (855) | |
Property, plant and equipment, end of period | (118,736) | (99,437) |
Equipment | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 5,383 | 5,313 |
Property, plant and equipment, end of period | 3,828 | 5,383 |
Equipment | Cost | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 5,414 | 5,313 |
Foreign Exchange Movement | 569 | |
Additions | 27 | 103 |
Transfer to Assets held for sale | (1,976) | |
Disposals | (2) | |
Property, plant and equipment, end of period | 4,034 | 5,414 |
Equipment | Depreciation and impairment | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | (31) | |
Foreign Exchange Movement | (43) | |
Transfer to Assets held for sale | 868 | |
Depreciation charged during the period | (1,000) | (31) |
Property, plant and equipment, end of period | (206) | (31) |
Data Centres | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 6,775 | 7,536 |
Property, plant and equipment, end of period | 4,743 | 6,775 |
Data Centres | Cost | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | 8,700 | 7,900 |
Foreign Exchange Movement | 517 | 701 |
Additions | 99 | |
Transfer to Assets held for sale | (2,937) | |
Transfer to another class | 82,711 | |
Disposals | (82,711) | |
Property, plant and equipment, end of period | 6,280 | 8,700 |
Data Centres | Depreciation and impairment | ||
TANGIBLE FIXED ASSETS | ||
Property, plant and equipment, beginning of period | (1,924) | (364) |
Foreign Exchange Movement | (38) | (17) |
Transfer to Assets held for sale | 784 | |
Transfer to another class | 7,014 | |
Depreciation charged during the period | (359) | (8,286) |
Impairment in asset | (271) | |
Property, plant and equipment, end of period | (1,537) | (1,924) |
Mining And Computer Equipment | ||
TANGIBLE FIXED ASSETS | ||
Impairment in asset | $ (900) | $ (55,800) |
TANGIBLE FIXED ASSETS - Acquisi
TANGIBLE FIXED ASSETS - Acquisition of DPN LLC (Details) $ in Thousands, £ in Millions, shares in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 08, 2022 USD ($) a EquityInstruments shares | Mar. 08, 2022 GBP (£) a EquityInstruments shares | |
TANGIBLE FIXED ASSETS | ||||
Impairment of tangible fixed assets | $ 855 | $ 55,838 | ||
DPN LLC Inc | ||||
TANGIBLE FIXED ASSETS | ||||
Area of land acquired (in acres) | a | 160 | 160 | ||
Option to purchase further land (in acres) | a | 157 | 157 | ||
Number of shares issued and allotted (in shares) | EquityInstruments | 3,497,817 | 3,497,817 | ||
Consideration transferred in shares in asset acquisition, acquisition-date fair value | £ | £ 3.6 | |||
Share based payment | $ 4,355 | |||
Contingent consideration to be settled in shares | 10,710 | |||
Total | 15,065 | |||
Tangible fixed assets (Asset under construction) | 15,065 | |||
Total | $ 15,065 | |||
DPN LLC Inc | Maximum | ||||
TANGIBLE FIXED ASSETS | ||||
Number of shares issuable upon achievement of certain contractual milestones (in shares) | shares | 8.6 | 8.6 |
TANGIBLE FIXED ASSETS - Propert
TANGIBLE FIXED ASSETS - Property, Plant and Equipment Impairments and Loss on Sale (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of Cash Generating Units | item | 1 | |
Impairment | $ 855 | $ 55,838 |
Proceeds | 12,404 | |
Mining And Computer Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Discount on hashprice for used equipment, fair valuation of property, plant and equipment | 15% | |
Pre-tax discount rate (in %) | 14.09% | |
Impairment | $ 900 | 55,800 |
Mining And Computer Equipment | Hashprice | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Percentage of change in actuarial assumption (in %) | 5% | |
Impact on impairment due to change in actuarial assumption | $ 1,500 | |
Mining And Computer Equipment | Discount rate | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Percentage of change in actuarial assumption (in %) | 1% | |
Impact on impairment due to change in actuarial assumption | $ 400 | |
Chips | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment | $ 100 | 18,000 |
Proceeds | 12,404 | |
Loss on disposal of fixed assets | $ 23,228 |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
TRADE AND OTHER RECEIVABLES | ||
Trade and other receivables | $ 1,131,000 | |
Prepaids | 1,355,000 | |
Mining equipment prepayments | $ 5,978,000 | |
Other taxation and social security | 1,349,000 | 824,000 |
Total trade and other receivables | 3,835,000 | $ 6,802,000 |
Tax receivables | $ 2,325,000 |
DIGITAL ASSETS (Details)
DIGITAL ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
DIGITAL ASSETS | ||
At 1 January | $ 443 | $ 108,956 |
Additions | ||
Foreign Exchange Movement | 24 | 833 |
Crypto asset purchased and received | 264 | |
Crypto assets mined | 50,558 | 60,172 |
Total additions | 50,582 | 61,269 |
Disposals | ||
Transferred to/from intangible assets | 420 | |
Crypto assets sold | (51,378) | (114,646) |
Total disposals | (51,378) | (114,226) |
Fair value movements | ||
Gain/(loss) on crypto asset sales | 738 | (55,410) |
Movements on crypto assets held at the year end | (145) | |
Total fair value movements | 738 | (55,555) |
At 31 December | $ 385 | $ 443 |
DIGITAL ASSETS - Crypto assets
DIGITAL ASSETS - Crypto assets representing a fair value (Details) $ in Thousands | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) |
DIGITAL ASSETS | |||
Fair value of crypto assets | $ 385 | $ 443 | $ 108,956 |
Bitcoin - BTC | |||
DIGITAL ASSETS | |||
Fair value of crypto assets | $ 385 | ||
Number Of Coins / Tokens Held | item | 9 | 25 |
SHARE OPTIONS, RESTRICTED STO_3
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS - Share-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation expense | $ 3,892 | $ 6,096 | $ 2,579 |
Options and warrants | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation expense | 3,332 | $ 6,096 | |
Restricted Stock Units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation expense | 287 | ||
Performance Stock Units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share-based compensation expense | $ 273 |
SHARE OPTIONS, RESTRICTED STO_4
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS - Options and warrants number and exercise price (Details) Options in Thousands | 12 Months Ended | |
Dec. 31, 2023 Options £ / shares | Dec. 31, 2022 Options £ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding at the beginning (in shares) | Options | 18,698 | 17,689 |
Granted (in shares) | Options | 5,220 | |
Exercised (in shares) | Options | (1,593) | |
Lapsed (in shares) | Options | (2,618) | |
Outstanding at the end (in shares) | Options | 18,698 | |
Exercisable at the end (in shares) | Options | 11,345 | |
Outstanding at the beginning (in $ per share) | £ / shares | £ 0.78 | £ 0.81 |
Granted (in $ per share) | £ / shares | 0.50 | |
Exercised (in $ per share) | £ / shares | 0.07 | |
Lapsed (in $ per share) | £ / shares | 0.89 | |
Outstanding at the end (in $ per share) | £ / shares | 0.78 | |
Exercisable at the end (in $ per share) | £ / shares | £ 0.61 | |
Options and warrants | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding at the beginning (in shares) | Options | 18,698 | |
Granted (in shares) | Options | 659 | |
Lapsed (in shares) | Options | (8,329) | |
Outstanding at the end (in shares) | Options | 11,028 | 18,698 |
Exercisable at the end (in shares) | Options | 7,904 | |
Outstanding at the beginning (in $ per share) | £ / shares | £ 0.78 | |
Granted (in $ per share) | £ / shares | 0.13 | |
Lapsed (in $ per share) | £ / shares | 0.67 | |
Outstanding at the end (in $ per share) | £ / shares | 0.83 | £ 0.78 |
Exercisable at the end (in $ per share) | £ / shares | £ 0.89 |
SHARE OPTIONS, RESTRICTED STO_5
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS - Narratives (Details) - Options and warrants | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average remaining contractual life of options and warrants (in months) | 83 months | 93 months |
Estimated percentage of exercisable shares on enlarged share capital (in %) | 1.50% | 2.30% |
Maximum | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise period of stock options and SARs | 10 years |
SHARE OPTIONS, RESTRICTED STO_6
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS - Valuation of options and warrants (Details) | 12 Months Ended | |
Dec. 31, 2023 Y £ / shares | Dec. 31, 2022 Y £ / shares | |
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Grant date share price | £ 0.14 | |
Exercise price | £ 0.13 | |
Volatility | 187% | |
Life | Y | 10 | |
Risk Free interest rate | 3.40% | |
Dividend yield | 0% | 0% |
Minimum | ||
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Grant date share price | £ 0.94 | |
Exercise price | £ 0.94 | |
Volatility | 91% | |
Life | Y | 5 | |
Risk Free interest rate | 1.60% | |
Maximum | ||
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Grant date share price | £ 1.57 | |
Exercise price | £ 1.57 | |
Volatility | 169% | |
Life | Y | 10 | |
Risk Free interest rate | 3.60% |
SHARE OPTIONS, RESTRICTED STO_7
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS - Restricted stock units number and exercise price (Details) - 12 months ended Dec. 31, 2023 | shares £ / shares | shares $ / shares |
Restricted Stock Units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted during the period | 12,041,192 | 12,041,192 |
Vested during the period | (3,617,136) | (3,617,136) |
Forfeited during the period | (1,424,239) | (1,424,239) |
Outstanding at the end of period | 6,999,817 | 6,999,817 |
Share price at grant date, granted during the period | £ / shares | £ 0.13 | |
Share price at grant date, vested during the period | £ / shares | 0.13 | |
Share price at grant date, forfeited during the period | £ / shares | 0.13 | |
Share price at grant date, outstanding at the end of the period | £ / shares | £ 0.12 | |
Weighted Average Remaining Vesting Period (months) | 28 years | 28 years |
Performance Stock Units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted during the period | 2,850,000 | 2,850,000 |
Outstanding at the end of period | 2,850,000 | 2,850,000 |
Share price at grant date, granted during the period | $ / shares | $ 1.15 | |
Share price at grant date, outstanding at the end of the period | $ / shares | $ 1.15 | |
Weighted Average Remaining Vesting Period (months) | 35 years | 35 years |
SHARE OPTIONS, RESTRICTED STO_8
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS - Performance stock units number and exercise price (Details) - 12 months ended Dec. 31, 2023 | shares £ / shares | shares $ / shares |
Restricted Stock Units | ||
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Vesting period, share-based payment arrangements | 3 years | 3 years |
Granted during the period | 12,041,192 | 12,041,192 |
Vested during the period | (3,617,136) | (3,617,136) |
Forfeited during the period | (1,424,239) | (1,424,239) |
Outstanding at the end of period | 6,999,817 | 6,999,817 |
Share price at grant date, granted during the period | £ / shares | £ 0.13 | |
Share price at grant date, vested during the period | £ / shares | 0.13 | |
Share price at grant date, forfeited during the period | £ / shares | 0.13 | |
Share price at grant date, outstanding at the end of the period | £ / shares | £ 0.12 | |
Weighted Average Remaining Vesting Period (months) | 28 years | 28 years |
Performance Stock Units | ||
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Vesting period, share-based payment arrangements | 3 years | 3 years |
Granted during the period | 2,850,000 | 2,850,000 |
Outstanding at the end of period | 2,850,000 | 2,850,000 |
Share price at grant date, granted during the period | $ / shares | $ 1.15 | |
Share price at grant date, outstanding at the end of the period | $ / shares | $ 1.15 | |
Weighted Average Remaining Vesting Period (months) | 35 years | 35 years |
Performance Stock Units | Minimum | ||
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Annual vesting percentage, other equity instruments | 25% | 25% |
Performance Stock Units | Maximum | ||
SHARE OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS | ||
Annual vesting percentage, other equity instruments | 100% | 100% |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | |||
Balance at the beginning | $ 24,578 | $ 272,272 | $ 33,029 |
Issued in the period | 7,754 | 5,204 | 195,406 |
Balance at the end | 158 | 24,578 | 272,272 |
Ordinary share capital | |||
Disclosure of classes of share capital [line items] | |||
Balance at the beginning | 634 | 622 | 403 |
Issued in the period | 78 | 12 | 219 |
Balance at the end | 712 | 634 | 622 |
Additional paid in Capital | |||
Disclosure of classes of share capital [line items] | |||
Balance at the beginning | 202,103 | 196,911 | 1,724 |
Issued in the period | 7,676 | 5,192 | 195,187 |
Balance at the end | 209,779 | 202,103 | 196,911 |
Ordinary Shares | Ordinary share capital | |||
Disclosure of classes of share capital [line items] | |||
Balance at the beginning | 634 | 622 | |
Issued in the period | 78 | 12 | |
Balance at the end | $ 712 | $ 634 | $ 622 |
ORDINARY SHARES - Textual infor
ORDINARY SHARES - Textual information (Details) - Ordinary Shares - Ordinary share capital - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of shares issued [abstract] | ||
Issued and fully paid (in shares) | 536,963,471 | 477,825,166 |
Issued in the period (in shares) | 59,138,305 | |
Par value per share (in $ per share) | $ 0.001 | $ 0.001 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
TRADE AND OTHER PAYABLES | |||
Trade payables | $ 2,336 | $ 3,079 | |
Accruals and other payables | 7,153 | 6,012 | |
Other taxation and social security | 1,686 | 689 | |
Total trade and other creditors | $ 11,175 | $ 9,780 | $ 20,566 |
TRADE AND OTHER PAYABLES - Text
TRADE AND OTHER PAYABLES - Textual information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Trade And Other Payables | ||
Gain on derecognition of contingent consideration | $ 468 | |
DPN LLC Inc | ||
Trade And Other Payables | ||
Variable consideration (in shares) | 8,147,831 | |
Contingent consideration issued | $ 5,000 | |
Income from reversal of unearned contingent consideration | $ 5,000 |
LOANS AND BORROWINGS (Details)
LOANS AND BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND BORROWINGS | ||
Mortgage Payable | $ 48,197 | $ 59,601 |
Current loans and borrowings | 14,320 | 11,610 |
Bond | ||
LOANS AND BORROWINGS | ||
Mortgage Payable | 38,170 | 37,810 |
Galaxy loan | ||
LOANS AND BORROWINGS | ||
Mortgage Payable | 9,230 | 18,475 |
Current loans and borrowings | 13,444 | 10,169 |
Mortgage - Quebec facility | ||
LOANS AND BORROWINGS | ||
Mortgage Payable | 797 | 2,785 |
Current loans and borrowings | 600 | 1,130 |
Other loans | ||
LOANS AND BORROWINGS | ||
Current loans and borrowings | $ 276 | 306 |
Lease liability | ||
LOANS AND BORROWINGS | ||
Mortgage Payable | 531 | |
Current loans and borrowings | $ 5 |
LOANS AND BORROWINGS - Textual
LOANS AND BORROWINGS - Textual information (Details) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | May 31, 2022 USD ($) | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 28, 2022 USD ($) | May 31, 2022 GBP (£) | Mar. 31, 2022 USD ($) | Dec. 23, 2021 USD ($) | |
Loan agreement with Galaxy Digital LP | ||||||||
LOANS AND BORROWINGS | ||||||||
Amount of loan facility | $ 35 | |||||||
Loan Agreement with Galaxy Digital LLC | ||||||||
LOANS AND BORROWINGS | ||||||||
Borrowings term | 32 months | |||||||
Amount of loan facility | $ 35 | |||||||
Loan Agreement with Galaxy Digital LLC | Secured overnight financing rate | ||||||||
LOANS AND BORROWINGS | ||||||||
Borrowings, adjustment to interest rate basis | 11% | |||||||
November 2021 unsecured bond 8.75% | ||||||||
LOANS AND BORROWINGS | ||||||||
Borrowings term | 5 years | |||||||
Interest rate | 8.75% | |||||||
November 2021 unsecured bond 8.75% | Bond is redeemed between 30 November 2023 and 30 November 2024 | ||||||||
LOANS AND BORROWINGS | ||||||||
Percentage of notional amount redeemed in case of early redemption | 102% | |||||||
November 2021 unsecured bond 8.75% | Bond is redeemed between 30 November 2024 and 30 November 2025 | ||||||||
LOANS AND BORROWINGS | ||||||||
Percentage of notional amount redeemed in case of early redemption | 101% | |||||||
November 2021 unsecured bond 8.75% | Bond is redeemed between 30 November 2025 and maturity date | ||||||||
LOANS AND BORROWINGS | ||||||||
Percentage of notional amount redeemed in case of early redemption | 100% | |||||||
November 2021 unsecured bond 8.75% | Occurrence of certain change of control events | ||||||||
LOANS AND BORROWINGS | ||||||||
Percentage of notional amount redeemed in case of early redemption | 100.50% | |||||||
Galaxy loan | ||||||||
LOANS AND BORROWINGS | ||||||||
Interest rate | 8% | |||||||
Amount of loan facility | $ 30 | |||||||
Mortgage - Quebec facility | ||||||||
LOANS AND BORROWINGS | ||||||||
Borrowings term | 36 months | |||||||
Interest rate | 7.70% | |||||||
Mortgage - Quebec facility | Lender Prime rate | ||||||||
LOANS AND BORROWINGS | ||||||||
Borrowings, adjustment to interest rate basis | 0.50% | |||||||
Loan agreements with NYDIG ABL LLC | ||||||||
LOANS AND BORROWINGS | ||||||||
Amount of loan facility | $ 97 | |||||||
Loan agreement with Liberty Commercial Finance | ||||||||
LOANS AND BORROWINGS | ||||||||
Borrowings term | 36 months | |||||||
Interest rate | 11.90% | 11.90% | ||||||
Amount of loan facility | $ 1.2 | £ 1 |
FINANCIAL INSTRUMENTS - Carryin
FINANCIAL INSTRUMENTS - Carrying amount of financial assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying amount of financial assets | ||
Total carrying amount of financial assets | $ 8,974 | $ 26,483 |
Carrying amount of financial liabilities | ||
Total carrying amount of financial liabilities | 71,550 | 85,895 |
Measured at fair value through profit or loss | ||
Carrying amount of financial assets | ||
Total carrying amount of financial assets | 785 | 857 |
Trade and other payables | Measured at amortised cost | ||
Carrying amount of financial liabilities | ||
Total carrying amount of financial liabilities | 7,501 | 10,020 |
Short term loans | Measured at amortised cost | ||
Carrying amount of financial liabilities | ||
Total carrying amount of financial liabilities | 280 | 11,605 |
Long term loans | Measured at amortised cost | ||
Carrying amount of financial liabilities | ||
Total carrying amount of financial liabilities | 25,599 | 25,915 |
Issued debt - bonds | Measured at amortised cost | ||
Carrying amount of financial liabilities | ||
Total carrying amount of financial liabilities | 38,170 | 37,810 |
Lease liabilities | Measured at amortised cost | ||
Carrying amount of financial liabilities | ||
Total carrying amount of financial liabilities | 0 | 545 |
Mining equipment prepayments | Measured at amortised cost | ||
Carrying amount of financial assets | ||
Total carrying amount of financial assets | 0 | 5,978 |
Trade and other receivables | Measured at amortised cost | ||
Carrying amount of financial assets | ||
Total carrying amount of financial assets | 1,131 | |
Cash and cash equivalents | Measured at amortised cost | ||
Carrying amount of financial assets | ||
Total carrying amount of financial assets | 7,443 | 20,091 |
Measured at fair value through profit or loss | Measured at fair value through profit or loss | ||
Carrying amount of financial assets | ||
Total carrying amount of financial assets | $ 400 | $ 414 |
FINANCIAL INSTRUMENTS - Assets
FINANCIAL INSTRUMENTS - Assets and liabilities that are measured at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets at fair value through profit or loss | |||
Financial assets | $ 8,974 | $ 26,483 | |
Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 785 | 857 | |
Level 1 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 0 | 329 | |
Level 2 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 385 | 443 | |
Level 3 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 400 | 400 | |
Financial assets at fair value, class [Member] | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 400 | 414 | |
Equity holdings | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 400 | 414 | $ 543 |
Equity holdings | Level 1 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 0 | 14 | |
Equity holdings | Level 2 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 0 | 0 | |
Equity holdings | Level 3 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 400 | 400 | |
Digital assets | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 385 | 443 | |
Digital assets | Level 1 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | 0 | 0 | |
Digital assets | Level 2 | Financial assets at fair value through profit or loss | |||
Financial assets at fair value through profit or loss | |||
Financial assets | $ 385 | $ 443 |
FINANCIAL INSTRUMENTS - Textual
FINANCIAL INSTRUMENTS - Textual information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
FINANCIAL INSTRUMENTS | |
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period | $ 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period | 0 |
Transfers out of Level 1 into Level 2 of fair value hierarchy, liabilities held at end of reporting period | 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, liabilities held at end of reporting period | 0 |
Transfers into Level 3 of fair value hierarchy, assets | 0 |
Transfers out of Level 3 of fair value hierarchy, assets | 0 |
Transfers into Level 3 of fair value hierarchy, liabilities | 0 |
Transfers out of Level 3 of fair value hierarchy, liabilities | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 4 Months Ended |
Apr. 16, 2024 USD ($) | |
Settlement of Litigations | |
COMMITMENTS AND CONTINGENCIES | |
Litigation settlement | $ 0.5 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |||
Key management personnel compensation paid | $ 2,272,000 | $ 3,471,000 | $ 1,888,000 |
Matthew Shaw | |||
RELATED PARTY TRANSACTIONS | |||
Key management personnel compensation paid | 170,554 | 133,867 | |
Maria Perrella | |||
RELATED PARTY TRANSACTIONS | |||
Key management personnel compensation paid | 129,752 | 148,679 | |
Raghav Chopra | |||
RELATED PARTY TRANSACTIONS | |||
Key management personnel compensation paid | 135,105 | 130,438 | |
Jim MacCallum | |||
RELATED PARTY TRANSACTIONS | |||
Key management personnel compensation paid | 27,659 | 0 | |
Alex Appleton | |||
RELATED PARTY TRANSACTIONS | |||
Key management personnel compensation paid | $ 166,738 | $ 803,112 |
POST BALANCE SHEET EVENTS (Deta
POST BALANCE SHEET EVENTS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Jan. 31, 2024 USD ($) shares | Dec. 31, 2021 USD ($) | Jan. 31, 2024 £ / shares | |
Disclosure of non-adjusting events after reporting period | ||||
Mirabel facility for proceeds | $ 884 | |||
Major ordinary share transactions | ||||
Disclosure of non-adjusting events after reporting period | ||||
New ordinary shares issued | shares | 38,064,000 | |||
Share price | £ / shares | £ 0.205 | |||
Gross proceeds | $ 9,900 | |||
Disposal of major subsidiary | Quebec Inc. 9366-5230 ("Mirabel") | ||||
Disclosure of non-adjusting events after reporting period | ||||
Proceeds from sale of subsidiary | $ 6,100 |