IREN Limited

Good day and thank you for standing by. Welcome to IREN's third quarter FY2024 investor update. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to hand the conference over to your speaker today, Lincoln Tan, Director of Investor Relations.

Thank you. Good afternoon all, to those of you in North America, and good morning to those of you in Australia. And welcome to IRON's third quarter FY24 results presentation. My name is Lincoln Tan, Director of Investor Relations, and joining me on the call today are Daniel Roberts, co-founder and co-CEO, and Belinda Nusifora, CFO. Before we begin, Please note that this call is being webcast live with an accompanying presentation. For those that are dialed in via phone, you can elect to ask a question via the moderator after our presentation. I would like to remind you that certain statements that we make during this call may constitute forward-looking statements, and IRON cautions listeners that forward-looking information and statements are based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the company. Listeners should not place undue reliance on forward-looking information or statements. Please refer to the disclaimer on slide two within the accompanying presentation. Thank you. And I will now turn the call over to Dan Roberts.

Thanks everyone for dialing in. Thanks Lincoln for the introduction. We're thrilled to be here for our quarterly earnings call. There's a little bit to get through, so let's jump straight into it. So first of all, It's probably worth recapping where we're at in terms of our business and our priorities for 2024 and beyond. And I think working from left to right on the slide deck in front of you, the big news is we're now going to 30 exahash this calendar year. So we're now at 10 exahash of current Bitcoin mining operating capacity, we told guidance and provided guidance around 30 June for that milestone. We've hit it in mid-May and we're now upgrading our end of year. So over the next seven months and a bit, we're going to 30 exahash. That's as a result of bringing forward the construction of some infrastructure. So some additional data centres that we will build by the end of this year, along with a transaction that we're pleased to announce today, recently completed with So a bit more on that to come, but that's obviously super exciting and will take us up into that very top tier of listed Bitcoin miners. The next part, which is also exciting, is the continual development of our AI cloud service business. We've provided updates over the course of this year. We're looking at ways to expand this. So we look forward to giving you a further update during the course of this presentation. And then there's been a lot of commentary publicly in the media, social media about the value of power and land in the context of the data center and AI crunch. As most of you know, we've got over 3000 megawatts of power and land secured. This not only provides us with fantastic optionality and flexibility to continue our organic growth profile, but it's also giving rise to some interesting nearer term opportunities to potentially bring forward monetization of some of that portfolio. Again, we'll get into that in a little bit more detail, but it's an exciting time. There's a lot going on. And without further ado, let's jump in to the Bitcoin mining side. We're now in a position to go to 30 exahash in 2024. And in fact, 20x a hash by the end of Q3. So over the next few months, we anticipate quite a large, swift ramp up in our capacity. We were the fastest growing Bitcoin miner last year in the listed market. And as a result of this, we anticipate being similar this year. So 30x a hash of capacity. The majority of that is via S21 Pros from Bitmain. which have an average efficiency of 15 joules per terahash, which by the end of it all being installed for the 30 exahash this year, we anticipate 16 joules per terahash in terms of nameplate efficiency and a $17,000 per Bitcoin electricity cost. So in terms of size, scale, low cost, we're very pleased to be in a position where we think that we're on course to be one of the real industry leaders in this. So again, this is as a result of bringing forward the construction of the infrastructure, the operations team, the construction team are really accelerating their work around this. As we've spoken about in the past, we've got a standardised data centre design that we've been rolling out for a number of years now. We recently upgraded that from the 20 megawatt design to 25 megawatt design. That's indeed helped. but the fact that it is standardised, the fact that we have been doing this for a number of years, the team is simply getting better and faster at it. So that's putting us in a great position to continue to build. What I also should say is that we're not stopping at 30 exahash. We've got options for another 10 exahash, as we'll see on the next slide. So as you can see, we're pleased to announce that we're at 10 exahash in terms of current operating capacity. We anticipate hitting 20 exahash over the course of the next few months, i.e. by the end of September, and then by the end of December, hitting that 30 exahash mark that I've mentioned a few times now. In addition, we've got fixed priced options for an additional 10 exahash to potentially deploy early in 2025. And I think what's really important about all of this is the fact that we've got the land, we've got the power. So six years ago, when Will, my brother and I set this business up, our belief was firmly that power and land would be scarce. And the fact that it takes multi-year timeframes to develop. And many of you on this call invested in our early rounds where we spoke about things like The Matrix, Ready Player One, Wreck It Ralph, all these sci-fi movies where It portrayed humanity in a certain direction. And as a result of that, how much computing power it would need. Now, who knows where we end up? Is it that way? Is it a different trajectory? But our belief was over the next 10, 20, 30 years, the world is going to have this insatiable amount of demand for computing power. And we're going to have this real world digital world dislocation that we've spoken about many times before. The fact that the revenue line, the demand drivers are largely driven by the digital world, whether it's the price of Bitcoin, whether it's demand for AI, whether it's some sort of new computing application in the future, the reality is once the real world gets to a critical mass, it's very hard to scale up. And this is why at the moment we're seeing such demand for new power, both from Bitcoin miners, data centers, hyperscalers, et cetera. The fact is you just cannot bring forward these power projects for various reasons we'll go into. So we're in a really good position where it's all organic growth. We've spoken to you for years about the platform and the foundation that we are laying down in terms of that organic growth. And over the next six to nine months, we believe that you'll really see the fruits of that investment as we scale up our business extremely quickly. So I might pass over to Lincoln.