Mawson Infrastructure Group Inc.

Q4 2022 Earnings Conference Call


spk_0: reading and walk into the mouth and infrastructure group fourth quarter and year and twenty twenty two earnings results call at this time all participants are no listen only man a brief question and answer session with all the formal presentation if anyone should require operators as and during the coffin we've got sars zero on your telephone keeper as a reminder that conference is being recorded it is not my pleasure to introduce your house been broadfoot keep corporate officer thank you thank you may begin thanks you and malaria to read okay to and infrastructure good things are you a fourth quarter to try to make twenty two adding scope
spk_1: joining me today on today's post a fan ha ha ha i say i play mostly and i say a aerial for the coffee we look forward to taking it really invested begging patients today
spk_0: firstly i need to be to your attention short disclaimer and forward looking statements please be aware to i will be making forward looking statements based adults are based on current expectations and assumptions and the subject to risk it could cause actual results to differ materially can expected
spk_1: we may also make forward looking statements had a part of at you and i are dictatorships pigmentation oh also discussed certain none get financial measures a bad performance journeyed like segregation answer
spk_0: you can find the reconciliation a get financial measures at the real the for you guys you which the bible on a website
spk_1: ht show up to repair to a cautionary takes regarding forward looking statements contained inside the occasional slide to as well as the risk that gives an annual report form tank a thought march twenty three two thousand twenty three and the the said heading risks relating to our business
spk_0: we that i'll hand across to see a gigantic
spk_2: thanks to a local everybody
spk_0: you deal with the transitory period for bolton as we close the salvage or the facility to point of a mental lapse into to up into by the facility scratches during his time
spk_2: our industry in particular and for me more boldly stated that he could not have kids
spk_1: go through his combat of they've had wings were discontinued five it's grand a bit out of touch of the model to taking a tree revenue service one been self money to be fighting i location and three a market lady energy market
spk_0: i'm alone provide a significant supported happy reading your part of a three people as virtually twenty two took a bullet from apparently the closing their doors the sale for over thirty million dollars to place in the build up a sized one of mid one pay for hundred and twenty mean what to capacity securing some additional thoughts the guy including funding up our hundred twenty megawatts is a real shown the an entry into partying celebrated to the texas facility for i put on a knows maybe if we continue sgt focus on the pages
spk_1: the that someone and a hand over to iraq to the coffee of able to renfrew the financial stability
spk_3: thanks james and i good everybody who's joined the cool
spk_1: touching on some highlights the for you results are two thousand and twenty two bosnias generated record revenue to you today and eighty four point three million
spk_3: up ninety two percent you're on you
spk_1: gross profit of thirty six point six million up eight percent you're on
spk_3: non get a bit done the thirty point four million op seventy percent you don't you
spk_1: and bitcoin produce for self mining increase sixty six percent to one thousand three hundred and forty three points importantly with a large depreciation shoot afford to us they have almost no tax burden and it's a bit done number pleasingly are hosting colocation business also generated solid growth rising one thousand four hundred and sixty four percent from two thousand and twenty one
spk_3: two thirteen point three million in two thousand and twenty three in addition to this most and had a new source of revenue in two thousand and twenty three been the energy markets program a generated thirteen point seven million in revenue at a gross margin of ninety one percent
spk_1: and received twenty point six million of proceeds from the south of the georgia facility in court for with additional she bites payments hitting the balance sheet subsequently you in these sons and been partially used to reduce debt as shown on the ballot shake with debt reduction payments and eleven point nine three million in court for
spk_3: some of the balance sheet highlights from the korea include
spk_1: in addition of eleven point three million in assets associated with energy contracts richard to here is derivatives assets
spk_3: has three point two million in crazy marketable securities and at five point four million increase in assets held to sail
spk_1: at the end of two thousand and twenty two a net assets was seventy six point one million based on shares on issue i that march six two thousand and twenty three fourteen point one million a net assets per share see that five dollars thirty four per share this is a share price of two dollars fifty turning to a consignment some other highlights from two thousand and twenty two vs two thousand and twenty one include the thirty seven percent reduction in our selling general and administrative expenses from the first half a two thousand and twenty two
spk_3: to the second half of two thousand and change it that twelve million dollar increase in you on year in hardware sales supporting point two million in two thousand and twenty two
spk_1: critically and with the challenge of two thousand and twenty two behind us most of these focus on ensuring that we have a strong balance sheets for two thousand and twenty three through strategic asset sales increases in l operations and the capital raising two thousand and twenty to be a well placed to grow in two thousand and twenty three
spk_3: oh now and i were to chief operating officer lame wilson to provide an operational update
spk_4: thanks aerial as james such short earlier more than has developed a diversified and highly flexible operating writing model
spk_0: three two thousand and twenty two we saw this model pay dividends as extreme weather events coupled with global social issues caused pal process to take worldwide our infrastructure first approach was highly favorable three two thousand twenty two today's events and the operating model more than had the ability to two thousand and twenty two included an average of point i'd have an ex a hash online to the year with the top of one point six three at the hacks online to self money reached in june twenty twenty two we look forward to a self mining ramping up significantly true to to and to trade as at one hundred and twenty megawatts middle and p i facility and the first twelve make what about one hundred and twenty megawatts facility in shower and p i come online we are actively watching the market the purchasing opportunities to add two and upgrade our self mine flights
spk_1: the second on the ground under suffered model hosting continued to pay dividends during twenty twenty two which further justified a mining hosting split a record thirteen point three million of hosting revenues and through two thousand and twenty two which ran into twenty four percent margin
spk_0: most hindus hosting a stable revenue and an option to hedge against full bitcoin exposure and will continue to look for five terrible and appropriate host department in the future after ad revenue stream the energy markets program was a renowned and success story at twenty twenty two
spk_1: thirteen point seven million in revenue is and during a period when our competitors would have otherwise been offline
spk_0: this program ran at a ninety one percent margin on top of these agreed stability contribution with significant particularly during the pre holiday period winter storm which is across the us
spk_4: into for most and exited the australian facility a condom this decision was made for that more than could five years old our attention on pennsylvania and ohio
spk_1: we firmly believe the climatic conditions in these areas are perfect for mining and has husband they also provide the opportunity to participate in the energy markets partner
spk_0: with regards to the climate wind is a cool with some rare for using events some as a mild with very few extremely warm days what you're left with is highly favorable a cold money whether to nine on of the it
spk_1: most and now has a our family and what can be achieved in twenty twenty three and this is underpinned by are secure energy pop on our infrastructure test model and existing strategic relationships have given more some first access to multiple attracted thought and we look forward to announcing into the growth in the near future we will continue to search for deal on and develop such which we believe will be highly lucrative ah the self money posting or meets i'm a little to add to our energy markets program where clickable as well
spk_0: more sense a sj program is something we are incredibly proud of and will continue to look for opportunities to further the program through twenty twenty three our proximity to the be the valley nuclear stations is a strategic advantage and we're very proud about one hundred percent nuclear certification during twenty twenty two we will welcome to the middle and p a community and were extremely proud to have contributed to the arts education and healthcare facilities with grass on top of this we have been active support in the sand is your community prior to our style for three years and have recently become involved in the shower and pih community
spk_4: that of pass doctor james thanks jones
spk_0: well they blame continue on important part of the have to check today and to the teacher he calculated
spk_2: a api full time is led by fcl i like blame also driving the operations obama to the coffee pretty bad at cdr he got the same a lot of that papalia facility the united states
spk_1: we didn't have at fullback take you to see a tom views in general cattle tempo to fcc ccl
spk_2: then hotel t v out an arrow for the cops as the epa
spk_0: it came brings a wealth of experience and knowledge and i am the meat industry that molten makes it goes now into the coming years the good combination of personal and structure for a competent exotic to take on any challenges in two thousand twenty two on me what i thought the market caught the that share this is several other measures
spk_1: but he to some open channel with a dead material decline in issue costs
spk_2: having taking consideration the current not about this is at these and other external factors such as bitcoin a to pay the final flight to help iran reflect upon the bay opposition way and most unsafe and the share costs
spk_0: in summary twenty thirty two with people who gave him the most take
spk_1: it's emergency expanded allies scale and like off and to buy a facilities which today's standards gonna building they got to capacity or possibly a successor to getting out he also completed this out of one have an uncle facility to claims but approximately forty million dollars
spk_2: and we intend to expand antibody facilities with a meat yourself money and hosting throughout play during three and intertwine table and look forward to sharing more information it's expansion energy to issue he that i just wanna take a moment to thank shareholders will continue to call the most and and we look forward to an entry any questions and give you up that in the future like it
spk_0: thank you jenny it is taking a snack and like he wanted to take it up seem to think all old employees supplies and shareholders and they ongoing support in two thousand and twenty take things to that than twenty three
spk_1: answer any questions
spk_0: thank you we will now be conducting easy question and answer session if you like that and question please press star one on your talk on keeper a confirmation time on the key you landed in the question the press or to feed like her move your concern from the key for isn't using speaker comments may be necessary to pick up the handset before president the sarkozy one long guzman call for question thank you our first question is who just siegler what cantor fitzgerald please proceed with your question yeah i got it to get my question today i think for my first one i love to get an update on what you're seeing in terms of hosting demands and the progress we've made in finding a hosting partner
spk_5: moving forward thank you
spk_6: i just good to hear from you i might have passed that one to lame he should have been dealing with the de de de de de de de or seen parisi be bit better position to answer that
spk_0: thanks just on thanks to the question ah my didn't i guess the superfan three that the tunnel that of inquiry coming true were saying plenty of the lodge on that the large mon and looking for hosting ah now that the other facilities to the market and seen i have had dropped off three twenty twenty two am and were saying plenty of new demand for hosting commentary from player that we previously hadn't heard of before so ah yeah in short the that than a large pot
spk_4: on it or because i'm ready i'm with regards to us ah you know nailing down a hosting partner
spk_0: we going through some pretty arm street in the day with a number of party that moment and we have to be am announcing some laws and exciting news on hosting neither the future that somewhere in there were in the fall of badges that now understood that help collect and then i have a lot to you know circle back to the build out at sharon and kind of what callbacks are you assuming will be required to finish know construction on that site
spk_7: james you're just your me just
spk_6: if you have your mama delay
spk_8: thanks
spk_5: josh the first or the first twelve megawatts on for that facility already fully funded on so that's the first out for six and they say the transformers now know the appalled and want to get that will not be balanced the one hundred and eight ah megawatts will be looking for a partner said to execute that saddam
spk_0: or i understood thank you thank you our next question is from kevin dealing with hc wainwright please proceed with your question
spk_9: i jones ah thanks for taking my call
spk_10: ah your your objectives look pretty appetizing and i was wondering
spk_6: what what i was behind them new york city fifty megawatts now hoping to go to what's your point five x the hash and then he on a mix of self mining and hosting can you give us more detail and how you expect that mix to break down sure such a about what i'd say a work fifty megawatts online envision sort of the next thirty days you expect to be one twenty megawatts online said that's the first ones to keep at it is it he makes probably not getting a full credit where credit's due that the balance of the facility built out at me blonde album twenty make of infrastructure is were just and commissioning faisal that such as we probably need it you know you intend it comes to matters when we start turning turning those those cans all over the over the next couple weeks the enough to contain is around on sought to substation is built m m m were in the testing phase a commission stokes you know to think about it is more one twenty make the line is probably close to the market where we are so let's see been funded and built up to date
spk_0: the next one is sharon which were of the united states as lame alluded to is currently already been in the price has been finalized from constructs expected it is also fully funded such nemo malek one thirty two one thirty five megawatts what to an infrastructure
spk_6: that alters he gives us a good head start on in a totally the structure build and and where we are i'm a huge amount of the slides we allude to am i i think it's like ten you'll see the sights one two or three there as they are some other sites that we've got a very low capita that site you know in turn on another in a almost fifty megawatts they very quickly average very very little small capital outlay of and we got i saw it's locked up or already with some mom analyze and and summit bonnie agreement such it will well down the track of having the infrastructure in place and infrastructure is funded so i think that that's important piece of them really what it leads his with his i'm picking the mix between do we self mine or do we host in l i was part of the place me last and and really that and sebastian optimize but profitability and risk as a comedian and so we're looking to strong counterparties in hosting that we feel comfortable with ah that continue to your odyssey pay bills on time funded relative proportion of a capital or provide security around that ah and be too profitable can parties or failing that you know we're looking at you know what's the meat self mining and and we would like to get but ultimately i'm a really it's just it's about balancing do we ever really strong posting past that partner with more like a i'm just dust and a business that we also like the profitability a big roy mining and so it just trying to find that balance there and and really that's a that's a delicate balance that we manage based on in a decisions around when the facilities can be ready what app epic sees hour or what the cottage at additional instruction might be ah
spk_10: or or or mining rigs are and what the market is about the return of by that football is also the around that stuff so you know you'll you'll see now in every they sit in a week we've got the equipment we just moved over from a stray away but and equipment we moved up from georgia so we had get to turn on fundamentally and with that turn on gay we you know we get closer to the to the asthma so you know we got get a bring on it exiting facilities as we bring out the iraq and will look forward to you know what's the just new gear a and with epics moving forward very helpful james thank you would you mind going to i guess a to different calculations are one in the police to to sell out taxes person's buying to facilities in ohio
spk_5: and the other his bow and saying
spk_6: ah energy sales vs consumption for mining and hosting yeah i i'm really happy get through both of those such an so to me last year as as group we we did a you know we sat down we had a real soul searching and strategy session and and and as it as a communist old we we we establish a clear strategy bit where we wanted to be located did what we wanted to be focused on and and how we wanted to operate the business mm the be the big outcome of that was in know we really wanted to be focused in a region we wanted to be with you on average six traveling all over the u s and m managing you know multiple sites which are multiple days trips between each one such we we decided we really like pennsylvania we like the pjm energy market we found the pricing need to be in competitive with the texas market and as huge climate benefits such is the idea was you know it although we do originally committed to going to texas we decided we wanted lead the texas market ah we realized that we could sell those takes his assets
spk_0: in the market and buddha am refocus our energy really up in the in the ohio pennsylvania region where in a our power is competitive
spk_11: and the climates a little bit more forgiving so that was the that was the real focus at of why we wanted to move or ultimately up into that region
spk_0: so that as that puts new person can wear that helps lodgings you have been
spk_12: thank you
spk_10: and the other components are grandson as you look at pennsylvania developing a sites in ohio how do you how would you recommend we look at your prospects
spk_6: and deciding how your allocate i wouldn't you'll have what to forty in p a and what about fifty in ohio how you balance use that power between ah your energy market strategy vs your host in self mining strategy
spk_0: as i i guess ultimately were always optimizing
spk_6: that for the greatest gross profit margin sucks because we don't have a huddle strategy with we celebrate point everything we do we were about maximizing profitability ultimately and and so if it's most
spk_10: lucrative also lead to be selling energy back to the market will have to do that if it's more lucrative to be money bitcoin will be doing that and and we have a am we have any total model and algorithm which we look at daily and which ultimately helps drive that decision so it off and that is not provide pipe for my modeling perspective for you kevin that what we're looking to do is ultimately be profitable as we can be is is this so we really make we make the jump between you know energy markets revenue mining will hosting ultimatum eight most much as possible
spk_13: okay the
spk_10: this pill in the onion back little bit on josh has questioned on on hosting partners ah could you give us an idea of what you're looking for and and i guess sort of the your partner were expectation your partner's flexibility given
spk_6: the flexibility that you wanna have in making that energy consumption decision and then if you're so you're able to find someone that will add that can fit that bill how do you compensate them yes it is great question i'm less to that contracts or it open book cause plus out on suggs that have some huge advantage because we're not i guess we're not exposed to price for his life he so cool was where they had unprofitable in a pound footsie with the are our town at the same eating some other you know hosting companies come across in a with similar rates since when they committed to at a cost per kilowatt hour of power and their prices spiked in and they subsequently you know they subsequently failed i guess also me so you know we've we've always been transparent in our pricing model so we we don't have plus model way with great charge for infrastructure recovery we've got a margin components of the business and then oversee paris out so you know with very transparent with their customers on that and wiki eta it's while they're at customers with the headphones
spk_14: that a partnership top or ancient with you know they get the benefits are saying it when power spikes you know typically people don't want to be operating because they are on a cost but basis of the very happy to turn off and and that built into it i guess how we see what our margins are you know as as part of what we consider our margin to have passed
spk_6: i'm month we ultimately so you know we get the benefit of the cut you know we we might get the benefit of any khatami on any new hosting contract that we get so ah
spk_10: you know we think they're on we think they're important parts of the in a contract negotiation and and making sure the relationships right ultimately and you know it it's it's about getting that makes right with their customers because you know that they don't want to they don't have a high pot our prices and you know we need to manage that okay
spk_15: yeah i love for fear of hog and the call games last question given a your and leaves view of the climate in ohio and pennsylvania i get the sense that you're not gonna explore immersion in dealing with those
spk_6: you know those a few hot days of or am i not as making the right assumption there look we've got a bible and those impact the reality is on a bit on a custom the a lot basis it doesn't compete with their in to build this stuff out at the moment the and you know until those economics changes busy with with what has starkly painter twenty two know depressed bitcoin prices are how to make the economic stat
spk_5: but i think if you're sitting in it you know if you sitting in a hotter climate deniers you you have to explore that in his and is very logical reason add to that putting it's all a trade off between ah thanks and capek since i guess given what we are you we're pretty comfortable that it's cabbage balance and i'd also say that typically when you see
spk_10: he you know the hottest days in somewhere like p a or higher it you wake up and realize that damn they're also the height a pricing power and so switching off for those few hours in a day
spk_6: for the few days in a year you make them my economic sense as well so you know when when you consider the overall we just don't see given the region in a climate where operating in that it makes a huge batman of economic sense perfect yeah thanks to that color appreciated james not a problem i do so then in her brother with anybody
spk_16: coles left ah questions uncles missouri a lot of an upper mock i mean i'm i'm in other to mean up questions as well suck
spk_6: amp
spk_17: the the one he from birth
spk_18: who's i think bright supporting shareholder back how are you hello him
spk_6: right to hear from you
spk_18: air am so first congrats on the earth causing out the arab very strongly with the or was a lot of moving pieces and just want to clarify few things
spk_19: you talked about the texas or agreements eight and a half million did you talk about the closing expectation and time of that is that's within two months or a few weeks actually think about that
spk_6: yeah i think we'd expect that to close in april at this point it taught
spk_19: okay okay so that that said eight and a half million dollars of cash that it's obviously not reflected in queue for yet but it will be on most like a second quarter sounds like an them just clarification on the clean spark burn now shares other than what you show on to for twenty twenty two there were other considerations received and kill one twenty three and in the form of stock so either you saw them and they became cash or they said as the stock on your balance sheet as of now is that fair assumption
spk_6: to correct am may it confirmed that we've we've solved the vast majority of all those things such as
spk_18: okay so basically there is it's pretty
spk_19: substantial strengthen form of cash on the balance sheet that them it's not even showing and to for yet so the rom yet like a position strengthened between you know i get thirty one december and and to die in a we're in it were wearing a much stronger position of role
spk_20: and that's that's great to hear that my question is on your targets ab you know you basically targeting two hundred megawatts for average capacity gone from thirty four on south mining and point eight to seven and you know and from a revenue perspective forty three million two
spk_18: two hundred million or hundred ninety nine million to be more specific in this year alone
spk_19: could you walk may true i mean those are always a pretty substantial increases
spk_6: we could you won't be true
spk_21: how you gonna get the i mean i could see what's gonna happen with midlands very you know in the short order as you talked about in the call and of was he already have the hosting demands from your existing partner and i imagine wow you guys were taken cause mit bitcoin prices going up sixty seventy percent since the beginning of the year
spk_4: and your focus on infrastructure only gives you a stronger and to be able to negotiate those contacts so i could see what's gonna happen in midland then you know sham but maybe to talk talk me through about how you get to at two hundred megawatt average forty year which would assume that oversees your exit rate for
spk_0: the end of the year is high and on that number to deport out to be an average so could you maybe give more granular information on that are we going to execute on that
spk_8: shaw all and lame take this one
spk_1: show sure thanks for the to the question i think
spk_0: that the things to consider is that more the middle facilities about citizen or know the seventies megawatts so when we look at more seen in the morning and were looking at it he makes to convince question earlier on and the reality is that ah a couple awaits realistically we're gonna be in one hundred and ah hundred and twenty megawatts now hundred and thirty two megawatts straightaway on after that sorry the ramp up you are you in is rapid of the next the next period post that we have decided that we have mentioned are you me in the deck and then we have a number on the site which we have various levels in comp of commitment on all the sites that more some upset and kevin is is have answer the to that old sites and more some books that do not require substation work
spk_10: so these small thought that we look for we look for thought to don't require substantial work and the reason we look for dollars is this a dramatically reduces the topics should be a dramatically cut down the ah the time needed to actually get those the shillings on my so to some of the facility them and looking at the moment from the sun we are
spk_19: she didn't miss a walkthrough to getting power mine is somewhere within ninety days
spk_18: i that's how we get to the on what more could be perceived as quite some
spk_19: quite dry up the numbers on but it's very is actually the reason for most and to ramp up there and so once we get off the mark without seventy megawatt expansion of middle and twelve may go expansion in fact sharon
spk_15: i think you will see most and quickly role on you know numerous other facilities
spk_7: which do not require i've a ton of topics have been a ton of time to get them
spk_0: perfect think tanks what i clarification am and i'm also assuming that
spk_18: you are between what to ship from australia and what do you have on and you're sitting on fairly sizable amount of eggs the ash that you can immediately or in a very short period of time connect and in pennsylvania here in weeks or months and always a you're hosting partner
spk_19: is already ready and able to come up on there and so you have visibility into how are you growing both sides of that business at the summit a kind of a short order is is that correct assumption yeah that that's correct is were stimulated nightmare in the
spk_6: yeah we have somewhere in the vicinity of one point five to one point six excess of are ready to go to be turned on that so money ah and then we have the reminder about voice patterns in the balance of their gear ready to go as well so we've got that hitting hitting that initial number for most innocuous four point five excessive without feel that's kind of yeah a struggle little okay and that and other question here obviously last year you have created a brand new business with ninety one for some margin i forgot to revenues in the twelve thirteen million range which is very substantial that gives you the flexibility it does the ohio sites that you're talking about are they're going to i'm familiar with what what's going on in pennsylvania but i don't will hire it could be in part of the similar plan as well or not necessarily
spk_19: i'll take that when i bought or say either go first you are right that this is the any energy mounted ready since phenomenal success for us
spk_22: note which or even for me knows that the revenue in december or higher will have a similar program
spk_19: and really excited about that sites is a short answer is yes and i think me i think the more important thing is you know it's given that we and ago from fifty megawatts worth it infrastructure do it one twenty one thirty two one twenty dateline them to one thirty two sheriff me online in the need to will be added row that revenue stream it's wealth of energy markets read had the opportunity to grow substantially well yeah mean that's exciting i'm just looking at your deck you guys just put put out the talking about four hundred megawatts i mean that's a times the size of if you get their on what you had and you were able to generate twelve million or so the with the so that's that certainly exciting my last question is and other slide that you have you you put and on your deck that i'm just just looking at
spk_6: i'm talking about the ab discount to your net asset value and or busy by selling decides that you're not using and converting it that into your core competency yard you know navigating that's very successfully but you know what i didn't realize is that the stop was fifteen dollar equivalent been bitcoin was basically where it was so today and i imagine that was on its become was on it's way down from the mid sixties to thirty one market sentiment was lower vs you have a convicted flip of a positive market sentiment brenner so long mean it's long question but what in your opinion and is creating that disconnect
spk_5: you have you know some alice coverage already that they were on the calls today and they do a great job following you what do you think is a disconnect on and everything else being equal bitcoin pricing thirty thousand and you're sitting at and eighty percent discount to that or seventy percent discount to that on or share price today
spk_6: thanks back i mean yeah it's it's a question in an apartment complex set of answers to be good at know all of them ultimately i am now i think twenty two was tough for us i'm a big knows a lot of concern about me hours in part the main celsius pay for it
spk_5: they continue to pilot continue pound time and cook food security but i think a lot of people are very concerned about that and
spk_6: i think about insane that you know that's that's less of a concern and than than than a brown realizes it is and you know he continued paid and we continue to operate the facility with them so no with pretty comfortable ramat full of as the or mine has had a tepee last year but damn i think we just got we got to the unloved six him of them are and unfortunately and i don't see it to pay a price reflection uniting of the big disconnect between you know ultimately we're waiting values in my the marketing a in does can to a inactivity and of it
spk_19: i think that pound for pound we've we've put on more infrastructure with less capital than just about anyone else in the market such i think we've been good stewards of capitalism and we delivered on what we said we did live us and i just don't think it would be rewarded in share price actions that that forty
spk_23: that we we if we'd raises a similar manner capital of the other group brick in iowa
spk_19: cbt number one another do today so
spk_23: you know at the i think it would you call out a problem that is in at one the top brass but you know we don't control capital markets also made it you know what we can do is focus on being a profitable business and at and getting a high return on their capital and and squeezing in affect every last drop out of the you know added what we have on our balance sheet do
spk_6: i get the most greatest for ten guys profitability of that we got church and understood that know you as of
spk_0: high level of inside an ownership as well so much certainly have skin and again but give up to a great work and man it's it's pretty exciting and with year plan for twenty three in an execution should should take girl five
spk_10: of with a surprise and melted for shareholders or thank you that's why i asked
spk_0: thanks book
spk_10: make him normal them have indeed a blue haven't you may proceed with your question thank you thank you me that games preheated i
spk_6: one of the back to your i yearn for infrastructure for strategy in your view of development and sale and i think this team up and discussion couple times last year's you guys work through the discussion of the georgian facility sale and now i'm wondering how close your keeping to your strategic thinking at this juncture
spk_24: or whether or not maybe are shifting back to may be would i
spk_0: perceived as the original moss and when it was cosmos where you are building the take over the world
spk_6: maybe could kind of you knows reset are thinking there yeah i have things get can i think look we're we're doing little bit about and know what we recognize his we very good in a very good builders ultimately we understand how to build the infrastructure we understand had to build a discount efficiently as the cost per megawatt at any many things you know what we think you know this is an opportunity is part of our hosting business too that business as well as you know where we seats for take off opportunity to other partner with hosting cats middle of oh it i sell a manage those sites you not for profit so importantly brasenose we recognize where we are in capital in my we are in the market so you know we can only do so much them you know i think we were very well regarded within the industry and a lot of in account of hotties would like to deal with such now we see good deal flown good site flow and ability and take some of those on potentially build build you know identify contract develop them and they move the month he is an attractive option to us as well where we can do that for customer or do and allowing balanchine you know and recycle some of his transactions so we can
spk_5: you know with with very much looking at all angles and ultimately kevin that know or the focus is on building a large sustainable business with recurring revenues and you don't get repairing reading is opening just selling site so you know it's about doing combination the hosting the money in the energy program
spk_10: and then you know optimizing the portfolio as we go so know as we live from the sites you know maybe we identify some sites and the papalia once built in a would be better operated by third party and and we can focus on the next thought the we identify so next we are around with their realistic about you know what we can build and run given their capital to get a capital structure and i think that pull the that you know with with the probably the largest you know what the largest the one of the largest unit
spk_6: high concentration of management team that owns in a management they with a high concentration ship of ownership in the business and because the that we're really focused on that return on capital and return on equity so very much in a don't want to see in a pizza delusion for to look for capital growth sites so we're very that very by the some things or with other a rapper time rebels
spk_25: great answer james that enhances again for taking the time yeah yeah yeah yeah ingredients answer
spk_5: with a focus on return on capital preceding arena
spk_0: as it or does good couple of them as we had written written queries are questions are under to take a couple night before we wrap up and know with we aim to look into it from a tom tom status so i've got
spk_1: the first one here and got from died ah you have a large amount of the a infrastructure capacity in pennsylvania what the total manifests as he could have across the side to see me easily use the latest generation essex my math has in it either eight x a has based on the latest generation it manic a
spk_7: it's a might let lame run that
spk_0: and thanks dave see a message
spk_6: thanks times on thanks sides of the question on though per one hundred and thirty two megawatts we could expect to get roughly to fund the thirty nine thousand units online i'm on just working at the nothing on these you're looking is he using an x p on than that would be five point four it's a house on the one hundred and thirty two megawatts if can look at the to call the to public sites which are sound and between the two hundred and forty megawatts which is the amount like capacity boom you just under seventy one thousand units and yeah actually at nine point nine a crash ah if you run the essays and if he runs a sustained the death nineteen your at seven point i think the hash the or nine point nine if you run the day so that that a casual that numbers are looking up a turned seventy one thousand units is approximately what we consider any sort of money
spk_5: i think claim sanction and next one's from jaws next one's from john i read in the endless reports sale as k have a row thought on a you us i asked when does expire i did how long do they have on this from memory of twelve months from september this year given the rates and a the space with hot eight cedric this become relevant
spk_26: thanks i might take that once and yes of the there was a structure with i am says right refusal first right of of up with sale as guy
spk_6: over select assets in the usa and it some out of that those right expire at six months and september was the dykes or some other mages coming up to expire it's and some have along the towel which is diploma towels so you are correct in that that it was six and two other style and look you know the it it and i can't of for sale as guy we have a great and we have great respect that anything over there is some of the see applied at georgia facility which we think you know we build will cost the silly there and now i'm sure they would like to have a look at our facilities in due course
spk_0: but you know i don't wanna preempt or in a cause any speculation on that that at his office a lot to emanate in a potentially on the cause this year and and in the industry and and mortem want to be part in a a bad the table playing with everyone and not in i will will obviously make sure that you know if anything to carrying that space where
spk_27: out there talking to everyone and making sure that we're looking at the right deals with counterparties to see it as any a an shady great value for shelves and i think and back to kevin's point you know it's all it's all about this are internal capital so ill and making sure we squeeze every last drop out of up out of it so when we very much focus on not identify
spk_0: anything we can granic survey
spk_3: i can emit other one from aaron what's the current debt and liability situation
spk_6: i might have that one to aerial to to take off i l from save file with boston welcome to everybody ah time death to stay off the balance eighties that he five point five million it's combination of time pay bills and barrons borrowing serving that twenty three million a year and and i was ten point five
spk_5: thanks area for that question
spk_6: and then i might have one last question which was is your local of energy in pennsylvania what is the power and how long the have this implies or my analysis of the sick to this is among the lowest in the industry it's great nuclear power if i recall
spk_5: thanks andric can earn the pennsylvania power with we've got a combination of pj market power was at a calm and ahead so our heads is locked in a three point six cents and then the pages pj marketed spot market power and currently in the market pjm powers you know any in the in it
spk_6: contact teens been a lot to the mid twenty dollars per megawatt so between one and two cents per megawatt hour
spk_28: and you know it's very competitive our that's why site competitive our anywhere else this it in within the usa i am we have a hedge for approximately four that could possibly for used like to run on it
spk_0: i'm and you know you're you're right it is one hundred percent green power and what a new player and you know it's it's all zero carbon site yeah that's very fat important point frost from in a cheap spec it is that were on zero carbon power power and you know what we believe that net it's really important for the entire industry
spk_6: to be moving towards that because it it'll all to me
spk_0: you know result him as being considered as a sustainable business and a sustainable industry such you know we like to think with were leading the charge on that and it's it pointed out of an investment criteria him in a t lenses you know when we're looking at he cites you know what's a generational makes it a power and and what's that gonna do and it's not to say we might look at site with

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