Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 63

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 63
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 exchange rates. The subsidiary (Argo Innovation Labs Inc.) is based in Canada, and transacts in CAD$, USD$ and GBP. 9377-2556 Quebec Inc. is based in Canada and transacts in CAD. 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.

|      | Change      
 in GBP rate | Effect               
 on profit before tax |
|      |             | $’000                |
| 2024 | +/-10%      | +/-                  
 2                    |
| 2023 | +/-10%      | +/-74                |

|      | Change      
 in CAD rate | Effect               
 on profit before tax |
|      |             | $’000                |
| 2024 | +/-10%      | +/-                  
 172                  |
| 2023 | +/-10%      | +/-365               |

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.

|      | Increase/decrease 
 in basis points   | Effect               
 on profit before tax |
|      |                   | $’000                |
| 2024 | +/-180            | +/-15                |
| 2023 | +/-180            | +/-464               |

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