Iren Limited · NASDAQ:IREN
Iren — Iris Energy — Investor Presentation (February 2022)
30 slides from Iren's investor presentation, Feb 9, 2022
Slide 1: Bitcoin mining. Done sustainably.
Bitcoin mining Done sustainably February 2022 NASDAQ: IREN
Slide 2: Disclaimer
Disclaimer 2 Forward-Looking StatementsThis presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Iris Energy’s future financial or operating performance. For exam
Slide 3: Bitcoin mining. Done sustainably.
3 Bitcoin mining. Done sustainably. We build, own and operate specialized data centers to mine BitcoinWe have been using excess renewable energy since 2019 We only enter markets where we can solve a problemWe support local communities
Slide 4: The Four M's
The Four M’s 4 15 EH/scomputing power secured 765MWoperating & under construction >$500mcapital raised to date >$25bnenergy & infrastructure projects delivered Miners Megawatts Money Management ~$870m illustrative mining profit1 100% renewable operations2 $724m market cap3 Operating since 2019 Illus
Slide 5: 1. Miners
3,135 2,4103 1,921 1,061 724 682 668 490 486 428 Market cap ($m) 1. Miners 5 Source: FactSet and public company filings. Market data as at February 4, 2022. Based on self-mining hashrate as disclosed by Core Scientific.Based on indicated minimum and maximum mining rig purchases under agreement with
Slide 6: 2. Megawatts
Site Overview Megawatts (MW) Miners (EH/s) Timing Status Canal Flats (BC, Canada) 30 0.8 Complete Operating Mackenzie (BC, Canada) 50 1.5 Q2-Q3 2022 Under construction Prince George (BC, Canada) 50 1.4 Q3 2022 Under construction 35 1.0 2023 Under construction Panhandle (Texas, US) 100 3.0 Q4 20222 U
Slide 7: 3. Money
3. Money 7 Nasdaq IPO Funding >$500mCapital raised to date * * * * * * (*) Iris Energy research coverage ~$300mFurther funding required for 15 EH/s1Additional equity funding not expected Progressing multiple potential funding options including hardware financing and corporate debt>$50m in limited re
Slide 8: 4. Management
4. Management 8 David BartholomewIndependent Chair30+ years’ experience across energy utilities, transportation and industrialsFormer CEO of DUET Group (sold to CKI for $5bn in 2017) Daniel RobertsCo-Founder and Co-CEO15 years’ experience across finance, infrastructure and renewablesPreviously 2nd l
Slide 9: Current market valuation
Current market valuation 9 Broker price targets imply a ~37-136% premium to current share price $31 $31 $30 $25 $22 $18$13.15 Broker Price Targets ($ per share) Average broker price target: $26 Source: Broker research. Market data as at February 4, 2022. Dec-21 Jan-22 Jan-22 Dec-21 Dec-21 Dec-21 Cur
Slide 10: Additional highlights
Additional highlights IrisEnercy
Slide 11: Why we own our infrastructure (vs. hosting)
Why we own our infrastructure (vs. hosting) 11 Iris Energy Hosting Long-term security Multi-decade access to power and data centers Recontracting / counterparty risk Lower costs Direct access to wholesale power price(higher profitability & improved Bitcoin price resilience) Wholesale power price + h
Slide 12: We build, own and operate our data centers
We build, own and operate our data centers 12 Iris Energy’s high efficiency specialized data centers are designed and built in-houseOur data centers have been designed to optimize operating performance and enhance miner life
Slide 13: We target markets with excess and under-utilized renewables
We target markets with excess and under-utilized renewables 13 Regulated markets (e.g. British Columbia) Deregulated markets (e.g. Texas) Problem: renewables intermittency creates grid instability Solution: we can support the grid by reducing load during peak periods & increasing load during off-pea
Slide 14: We support local communities
We support local communities 14 Ktunaxa First Nations communities Canal Flats volunteer fire department Local schools and appeals Local hockey clubs SOCIAL
Slide 15: Board of Directors
Board of Directors Audit and Risk Committee Corporate Governance Documents We are building an institutional grade platform 15 David Bartholomew (Independent Chair)*Mike Alfred (Non-Executive Director)*Chris Guzowski (Non-Executive Director)*Daniel Roberts (Co-Founder and Co-CEO)Will Roberts (Co-Foun
Slide 16: HODL considerations
HODL considerations 16 Non-HODL HODL Rationale Immediate ownership of Bitcoin todayPotential to borrow against BitcoinInvestors not required to self-custodyLess complexity for management teams (trading Bitcoin vs. building infrastructure)‘Locking up’ Bitcoin circulating supply Considerations In down
Slide 17: Notes
Notes:Please see the Coinwarz Bitcoin Mining Calculator (https://www.coinwarz.com/mining/bitcoin/calculator):Inputs for 10 EH/s: 10,000 PH/s (hashrate), 335MW (power consumption) and $0.04 /kWh (electricity costs) – prefilled link hereInputs for 15 EH/s: 15,000 PH/s (hashrate), 495MW (power consumpt
Slide 18: Illustrative mining profit sensitivities
Illustrative mining profit sensitivities 18 Annualized run-rate Bitcoin price $20k $30k $40k $50k $60k $100k 125 EH/s 624 1,022 1,421 1,819 2,218 3,812 150 EH/s 491 823 1,155 1,487 1,819 3,147 175 EH/s 396 680 965 1,250 1,534 2,673 200 EH/s 325 574 823 1,072 1,321 2,317 225 EH/s 269 491 712 934 1,15
Slide 19: Current sites
Current sites risEneray
Slide 20: Site 1: Canal Flats – 0.8 EH/s
Site 1: Canal Flats – 0.8 EH/s 20 Location BC, Canada Land 100% owned Power source 100% renewable1 Power capacity 30MW Miners 0.8 EH/s Timing Complete Status Operating 1. Currently 98% directly from renewable energy sources; 2% from purchase of RECs. Specialized data centers Miners operating in our
Slide 21: Site 2: Mackenzie – 1.5 EH/s
Site 2: Mackenzie – 1.5 EH/s 21 Location BC, Canada Land 100% owned Power source 100% renewable1 Power capacity 50MW Miners 1.5 EH/s Timing Q2-Q3 2022 Status Under construction 1. Expected to be 98% directly from renewable energy sources; 2% from purchase of RECs. Illustrative site layout (incl. pot
Slide 22: Site 3: Prince George – 2.4 EH/s
Site 3: Prince George – 2.4 EH/s 22 Location BC, Canada Land 50 year lease1 Power source 100% renewable2 Power capacity 85MW Miners 2.4 EH/s Timing Q3 2022 / 2023 Status Under construction 30 year lease including 2 x 10 year extensions plus option to purchase within first 10 years.Expected to be 98%
Slide 23: Site 4: Panhandle – 10.5 EH/s + EH/s
Site 4: Panhandle – 10.5 EH/s + 7 EH/s1 23 Location Texas, USA Land 100% owned Power source Renewable (TBC)2 Power capacity 600MW Miners 10.5 EH/s + 7 EH/s1 Timing Q4 20223 / 2023 Status Under construction Equivalent hashrate potential for the power capacity assuming installation of Bitmain S19j Pro
Slide 24: Significant development pipeline
Significant development pipeline 24 British Columbia Texas Asia-Pacific >1GWadditional growth pipeline Global diversificationCanada, USA & Asia-Pacific Grid connectedrenewables & long-term access to power 765MWoperating and under construction
Slide 25: Financial Summary
Financial Summary risEneray
Slide 26: Quarterly results
348 685 Sep-21 Dec-21 Average operating hashrate (PH/s) Quarterly results 26 241 364 Sep-21 Dec-21 Bitcoin mined 10 20 Sep-21 Dec-21$79m annualized Bitcoin mining revenue ($m) 6 14 Sep-21 Dec-21$57m annualized Adjusted EBITDA ($m)1 1. Adjusted EBITDA is a non-IFRS measure. Please refer to page 27 fo
Slide 27: Adjusted EBITDA reconciliation
27 Adjusted EBITDA reconciliation USD'000 Three months ended Three months ended Six months ended Six months ended 31 December 2021 31 December 2020 31 December 2021 31 December 2020 Bitcoin mining revenue 20,017 1,227 30,387 2,092 Electricity and other site costs(1) (3,041) (721) (4,976) (1,475) Oth
Slide 28: Financial performance
Financial performance 28 USD'000 Three months ended 31 December 2021 Three months ended 31 December 2020 Six months ended 31 December 2021 Six months ended 31 December 2020 Revenue Bitcoin mining revenue 20,017 1,227 30,387 2,031 Other income - 99 - 524 Expenses Depreciation and amortization (1,249)
Slide 29: Financial position
Financial position 29 USD'000 31 December 2021 30 June 2021 Assets Cash and cash equivalents 255,296 38,990 Other receivables 4,085 794 Prepayments and other assets 7,733 648 Total current assets 267,114 40,432 Property, plant and equipment 54,790 15,952 Right-of-use assets 1,000 1,405 Goodwill 643
Slide 30: Thank You for joining us today
Thank Youfor joining us today