Iren Limited · NASDAQ:IREN
Iren — Iris Energy — Q2 FY2023 Earnings Presentation
22 slides from Iren's earnings presentation, Feb 15, 2023
Slide 1: Second Quarter FY23 Results Presentation
FEBRUARY 2023 | NASDAQ: IREN Bitcoin mining. Done sustainably. Second Quarter FY23 Results Presentation
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This 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 examp
Slide 3: Business Update
Business Update
Slide 4: Expansion to 5.5 EH/s self-mining capacity
Expansion to 5.5 EH/s self-mining capacity 4 2.0 EH/s1 5.5 EH/s2 US$67m remaining Bitmain prepayments utilized to acquire 4.4 EH/s of new S19j Pro miners No additional cash outlay Expansion to 5.5 EH/s expected over the coming months Considering options for the sale of surplus miners to re-invest in
Slide 5: Transformational growth opportunity at Childress
Transformational growth opportunity at Childress 5 20MW nearing completion, additional 80MW underway – 600MW total capacity Progress update Childress (January 2023) - aerial view of the first 20MW data center building Initial 20MW nearing completion in Q2 CY23 Energization of 600MW substation Commis
Slide 6: 5.5 EH/s underpins strong margins and operating cashflow
6 5.5 EH/s underpins strong margins and operating cashflow Illustrative mining profit (annualized)1 Bitcoin price (US$) $15,000 $25,000 $35,000 $45,000 2.0 EH/s self-mining2,3 $9m $33m $57m $80m 2.0 EH/s self mining2,3 + hosting (110MW @ 2c/kWh) $29m $52m $76m $100m 5.5 EH/s self-mining4 $29m $94m $
Slide 7: Peer comparison
Peer comparison 7 A leading Bitcoin miner with 5.5 EH/s of self-mining operating capacity Source: Nasdaq market data and public company filings. Market data as of February 10, 2023. Based on available peer public disclosures as of February 10, 2023. Represents deployed hashrate as of January 31, 202
Slide 8: Long-term alignment
Long-term alignment Founders, board & management own ~23% of IREN, promoting alignment of interest 8 Significant institutional & HNW investor representation on the register1 Broad sell-side research coverage Firm Analyst Canaccord Genuity Joseph Vafi Citi Jim Suva Compass Point Chase White Cantor Fi
Slide 9: Financial Summary
Financial Summary
Slide 10: Bitcoin mining revenue
Bitcoin mining revenue Source: Historical Bitcoin market data sourced from Blockchain.com 10 Decline in Bitcoin price and increase in global hashrate negatively impacted revenues in 2Q23 Mined 722 Bitcoin in 2Q23, as compared to 780 Bitcoin in the previous quarter. Lower Bitcoin production was prima
Slide 11: Operating costs
Operating costs 11 Increase in Electricity Costs reflect growth in hashrate between periods Cost base reflects a business that has growth ambitions beyond 5.5 EH/s Average operating hashrate (EH/s) 0.8 1.1 2.0 2.2 Installed MW (period end) 30 39 130 160
Slide 12: Balance sheet
Balance sheet 12 US$m As at As at Adjustments to remove As Adjusted Jun 30, 2022 Dec 31, 2022 limited-recourse financing SPVs Dec 31, 2022 Assets Cash and cash equivalents 110.0 40.7 (1.3) 39.4 Prepayments and other current assets 50.3 34.0 - 34.0 Total current assets 160.3 74.6 (1.3) 73.3 Property,
Slide 13: Q&A
Q&A
Slide 14: Appendix: Additional Financial Information
Appendix: Additional Financial Information
Slide 15: Adjusted EBITDA
Adjusted EBITDA 15 US$m 3 months ended Mar 31, 2022 3 months ended Jun 30, 2022 3 months ended Sep 30, 2022 3 months ended Dec 31, 2022 Bitcoin mining revenue 14.7 13.8 16.2 13.8 Other income/(loss)1 0.0 - - (5.1) Electricity costs (2.9) (3.8) (6.6) (7.4) Other costs (4.9) (11.1) (8.0) (9.3) Adjuste
Slide 16: Consolidated statement of profit or loss
Consolidated statement of profit or loss 16 US$’000 3 months ended Mar 31, 2022 3 months ended Jun 30, 2022 3 months ended Sep 30, 2022 3 months ended Dec 31, 2022 Revenue Bitcoin mining revenue 14.7 13.8 16.2 13.8 Gain/(loss) on disposal of assets 0.0 - - (5.1) Expenses Depreciation and amo
Slide 17: Appendix: Site Overviews
Appendix: Site Overviews
Slide 18: Canal Flats, British Columbia, Canada
Canal FlatsBritish Columbia, Canada Land: 100% owned Power Source: 100% renewable energy1 Power Capacity: 30MW Status: Operational Onsite fabrication facility supports BC build out Center of excellence for research and development 18 Currently approximately 97% from direct renewable energy sources a
Slide 19: Mackenzie, British Columbia, Canada
Land: 100% owned Power Source: 100% renewable energy1 Power Capacity: 80MW Status: Operational MackenzieBritish Columbia, Canada 19 Currently approximately 97% from direct renewable energy sources and approximately 3% from the purchase of RECs.
Slide 20: Prince George, British Columbia, Canada
Land: 30-year lease (plus 2 x 10 year extensions)1 Power Source: 100% renewable energy2 Power Capacity: 50MW Status: Operational Prince GeorgeBritish Columbia, Canada 20 Prince George (Sep 2021 vs Today) Includes option to purchase within first 10 years. Currently approximately 97% from direct renew
Slide 21: Childress County, Texas, USA
Land: 100% owned Power Source: Excess/under-utilized renewable energy1 Power Capacity: 20MW (initial), connection agreement for up to 600MW Status: Under construction Expected Timing: Q2 CY23 Childress CountyTexas, USA 21 Renewable power source and mix to be confirmed closer to time of commissioning
Slide 22: Thank You
Thank You