Exhibit
No.
|
Description
|
|
Press Release Announcing Third Quarter FY24 Results, dated May 15, 2024
|
||
Management Presentation, dated May 15, 2024
|
||
Unaudited Interim Consolidated Financial Statements for the Three and Nine Months ended March 31, 2024
|
||
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Nine Months ended March, 31, 2024
|
||
Press Release Announcing Increased Expansion Plans, dated May 15, 2024
|
||
101
|
The following materials from this Report are formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Unaudited interim consolidated statements of profit or loss and other comprehensive income, (ii) Unaudited interim
consolidated statements of financial position, (iii) Unaudited interim consolidated statements of changes in equity, (iv) Unaudited interim consolidated statements of cash flows and (v) Notes to the unaudited interim consolidated
statements
|
|
104
|
Cover Page Interactive Data File – The cover page from this Report on Form 6-K is formatted in iXBRL (included as Exhibit 101)
|
|
Iris Energy Limited
|
|
|
|
|
Date: May 15, 2024
|
By:
|
/s/ Daniel Roberts
|
|
|
Daniel Roberts
|
|
|
Co-Chief Executive Officer and Director
|
|
|
• |
Bitcoin mining revenue of $53.4 million, as compared to $42.0 million in the second quarter of fiscal year 2024, driven by growth in operating hashrate and higher Bitcoin prices
|
|
• |
Net profit after income tax of $8.6 million, as compared to a loss of $5.2 million in the second quarter of our fiscal year 2024
|
|
• |
AI Cloud Services revenue of $0.6 million, following the commissioning of 248 NVIDIA H100 GPUs during the quarter for our customer, Poolside AI, a leading AI company
|
|
• |
Mined 1,003 Bitcoin, as compared to 1,144 Bitcoin in the second quarter of our fiscal year 2024. Lower Bitcoin production was primarily driven by higher global hashrate rate during the period
|
|
• |
Net electricity costs of $19.4 million, as compared to $16.1 million in the second quarter of our fiscal year 2024, primarily driven by an increase in operating hashrate in the quarter1
|
|
• |
Other costs of $12.9 million, as compared to $12.0 million in the second quarter of fiscal year 20242
|
|
• |
Adjusted EBITDA of $21.8 million, as compared to $13.9 million in the second quarter of our fiscal year 20243
|
|
• |
Year to date operating cash inflow of $47.9 million, as compared to an outflow of $1.0 million in the nine-months ended March 31, 2023
|
|
• |
Cash and cash equivalents of $259.7 million as of March 31, 2024 and no debt facilities4
|
|
|
• |
Operating capacity currently 10 EH/s (May 2024) vs. 5.6 EH/s (December 2023)
|
|
• |
2024 expansion plans increased to 30 EH/s
|
|
o |
Secured latest-generation Bitmain S21 Pro miners with nameplate efficiency of 15 J/TH
|
|
o |
Upon completion, nameplate fleet efficiency of 16 J/TH and indicative electricity cost per Bitcoin mined of $17k5
|
|
o |
Funding through existing cash and other sources6
|
|
• |
Additional Bitmain S21 Pro miner purchase options (10 EH/s) supporting expansion pathway to 40 EH/s in 1H 2025.
|
|
• |
816 NVIDIA H100 GPUs
|
|
o |
Upsized (doubled to 504 GPUs) and extended our AI Cloud Services agreement with Poolside AI
|
|
o |
Testing on-demand market for our AI Cloud Services
|
|
• |
510MW of planned data center capacity by the end of 2024
|
|
o |
Increase from previous planned data center capacity of 460MW, enabled partly through a new substation design, as well as ongoing improvement and optimization of the Company’s construction and procurement process.
|
|
• |
2,160MW of secured power capacity
|
|
• |
$321.5 million cash and cash equivalents as of April 30, 20244
|
|
• |
The Third Quarter FY24 Results webcast will be recorded, and the replay will be accessible shortly after the event at https://iren.com/investor/events-and-presentations
|
|
Adjusted EBITDA Reconciliation
(USD$m) 1
|
3 months ended
Mar 31, 2024
|
3 months ended
Dec 31, 2023
|
Bitcoin mining revenue
|
53.4
|
42.0
|
AI Cloud Services Revenue
|
0.6
|
-
|
Other income
|
0.4
|
0.5
|
Electricity charges
|
(19.8)
|
(16.7)
|
Realized gain/(loss) on financial asset
|
0.1
|
0.1
|
Other costs
|
(12.9)
|
(12.0)
|
Adjusted EBITDA
|
21.8
|
13.9
|
Adjusted EBITDA Margin
|
40%
|
33%
|
Reconciliation to consolidated statement of profit or loss
|
||
Add/(deduct):
|
||
Reversal of impairment of assets
|
-
|
0.1
|
Share-based payments expense - $75 exercise price options
|
(2.9)
|
(3.0)
|
Share-based payments expense – other
|
(2.9)
|
(2.9)
|
Foreign exchange gain/(loss)
|
4.7
|
(4.7)
|
Other expense items2
|
(0.2)
|
(2.5)
|
Unrealized gain/(loss) on financial asset3
|
(1.1)
|
(0.3)
|
EBITDA
|
19.4
|
0.6
|
Other finance expense
|
(0.1)
|
0.0
|
Interest income
|
1.5
|
0.7
|
Depreciation
|
(8.7)
|
(7.6)
|
Profit/(loss) before income tax for the period
|
12.1
|
(6.3)
|
Income tax (expense)/benefit
|
(3.5)
|
1.1
|
Profit/(loss) after income tax for the period
|
8.6
|
(5.2)
|
|
1) |
For further detail, see our unaudited interim financial statements for the nine months ended March 31, 2024, included in our Form 6-K filed with the SEC on May 15, 2024.
|
|
2) |
Other expense items include one-off professional fees including legal fees.
|
|
3) |
Unrealized loss on financial asset represents the change in the fair value of the financial asset recorded in relation to electricity purchased for future usage periods.
|
Reconciliation of Electricity charges to Net electricity costs
(USD$m)
|
3 months ended
Mar 31, 2024
|
3 months ended
Dec 31, 2023
|
Electricity charges
|
(19.8)
|
(16.7)
|
Add/(deduct) the following:
|
||
Realized gain/(loss) on financial asset
|
0.1
|
0.1
|
ERS revenue (included in Other income)
|
0.4
|
0.5
|
ERS fees (included in Other operating expenses)
|
(0.0)
|
(0.0)
|
Net electricity costs
|
(19.4)
|
(16.1)
|
|
|
|
|
• |
Bitcoin Mining: providing security to the Bitcoin network, expanding to 30 EH/s in 2024. Operations since 2019.
|
|
• |
AI Cloud Services: providing cloud compute to AI customers, 816 NVIDIA H100 GPUs. Operations since 2024.
|
|
• |
Next-Generation Data Centers: 260MW of operating data centers, expanding to 510MW in 2024. Specifically designed and purpose-built infrastructure for high-performance and power-dense computing applications.
|
|
• |
Technology: technology stack for performance optimization of AI Cloud Services, Bitcoin Mining and energy trading operations.
|
|
• |
Development Portfolio: 2,160MW of secured power capacity across North America, >1,000 acre property portfolio and additional development pipeline.
|
|
• |
100% Renewable Energy (from clean or renewable energy sources or through the purchase of RECs): targets sites with low-cost & underutilized renewable energy, and supports electrical grids and local
communities.
|
Media
Jon Snowball
Domestique
+61 477 946 068
Danielle Ghigliera
Aircover Communications
+1 510 333 2707
|
Investors
Lincoln Tan
IREN
+61 407 423 395
lincoln.tan@iren.com
|
PROCEED WITH PURPOSE.
|
6
|
|
|
Contents
|
|
31 March 2024
|
Unaudited interim consolidated statements of profit or loss and other comprehensive income
|
2
|
Unaudited interim consolidated statements of financial position
|
3
|
Unaudited interim consolidated statements of changes in equity
|
4
|
Unaudited interim consolidated statements of cash flows
|
5
|
Notes to the unaudited interim consolidated financial statements
|
6
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of profit or loss and other comprehensive income
|
|
For the period ended 31 March 2024
|
Note
|
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
||||||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||||||
Bitcoin mining revenue
|
53,383
|
11,327
|
129,827
|
41,294
|
||||||||||||||||
AI Cloud Service revenue |
567 | - | 567 | - | ||||||||||||||||
Other income
|
3 |
399
|
1,798 |
926
|
3,117 |
|||||||||||||||
Gain/(loss) on disposal of subsidiaries |
- | 3,257 | - | 3,257 | ||||||||||||||||
Revenue |
54,349 | 16,382 | 131,320 | 47,668 | ||||||||||||||||
Expenses
|
||||||||||||||||||||
Depreciation
|
10 |
(8,692
|
)
|
(5,125
|
)
|
(23,870
|
)
|
(24,122
|
)
|
|||||||||||
Electricity charges
|
(19,834
|
)
|
(5,973
|
)
|
(55,944
|
)
|
(19,910
|
)
|
||||||||||||
Realized gain/(loss) on financial asset
|
7 | 91 | - | 3,210 | - | |||||||||||||||
Employee benefits expense
|
(4,333
|
)
|
(2,470
|
)
|
(12,844
|
)
|
(11,138
|
)
|
||||||||||||
Share-based payments expense
|
17
|
(5,817
|
)
|
(3,503
|
)
|
(17,622
|
)
|
(10,273
|
)
|
|||||||||||
Impairment of assets
|
-
|
-
|
-
|
(105,172
|
)
|
|||||||||||||||
Reversal of impairment of assets |
- | - |
108 | - | ||||||||||||||||
Professional fees
|
(2,018
|
)
|
(1,117
|
)
|
(5,938
|
)
|
(4,086
|
)
|
||||||||||||
Site expenses |
(2,096 | ) | (1,290 | ) | (5,892 | ) | (3,329 | ) | ||||||||||||
Other operating expenses
|
4
|
(4,537
|
)
|
(1,966
|
)
|
(14,809
|
)
|
(7,232
|
)
|
|||||||||||
Gain/(loss) on sale of assets |
1 | (160 | ) | 16 | (6,616 | ) | ||||||||||||||
Unrealized gain/(loss) on financial asset |
7 | (1,091 | ) | - | (1,349 | ) | - | |||||||||||||
Operating profit/(loss)
|
6,023
|
(5,222
|
)
|
(3,614
|
)
|
(144,210
|
)
|
|||||||||||||
Finance expense
|
(126
|
)
|
(2,311
|
)
|
(190
|
)
|
(16,227
|
)
|
||||||||||||
Interest income
|
1,500
|
244
|
2,878
|
458
|
||||||||||||||||
Foreign exchange gain/(loss)
|
4,714
|
4,557
|
2,265
|
(2,619
|
)
|
|||||||||||||||
Profit/(loss) before income tax expense
|
12,111
|
(2,732
|
)
|
1,339
|
(162,598
|
)
|
||||||||||||||
Income tax (expense)/benefit
|
(3,473
|
)
|
(321
|
)
|
(3,228
|
)
|
(2,349
|
)
|
||||||||||||
Profit/(loss) after income tax expense for the period
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||||||
Other comprehensive income/(loss)
|
||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss
|
||||||||||||||||||||
Foreign currency translation
|
(7,334
|
)
|
(9,126
|
)
|
(5,331
|
)
|
(21,241
|
)
|
||||||||||||
Other comprehensive income/(loss) for the period, net of tax
|
(7,334
|
)
|
(9,126
|
)
|
(5,331
|
)
|
(21,241
|
)
|
||||||||||||
Total comprehensive income/(loss) for the period
|
1,304
|
(12,179
|
)
|
(7,220
|
)
|
(186,188
|
)
|
|||||||||||||
Cents
|
Cents
|
Cents
|
Cents
|
|||||||||||||||||
Basic earnings per share
|
14
|
8.27
|
(5.70
|
)
|
(2.32
|
)
|
(310.03
|
)
|
||||||||||||
Diluted earnings per share
|
14
|
7.70
|
(5.70
|
)
|
(2.32
|
)
|
(310.03
|
)
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of financial position
|
|
As at 31 March 2024
|
Note
|
31 Mar 2024
|
30 Jun 2023
|
||||||||||
$'000
|
$'000
|
|||||||||||
Assets
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
5
|
259,695
|
68,894
|
|||||||||
Other receivables
|
6
|
35,867
|
6,543
|
|||||||||
Financial assets at fair value through profit or loss
|
7 | 3,425 | - | |||||||||
Prepayments and other assets
|
9 |
11,206
|
13,793
|
|||||||||
Total current assets
|
310,193
|
89,230
|
||||||||||
Non-current assets
|
||||||||||||
Property, plant and equipment
|
10
|
357,081
|
241,102
|
|||||||||
Right-of-use assets
|
|
1,624
|
1,374
|
|||||||||
Deferred tax assets
|
2,595
|
8
|
||||||||||
Computer hardware prepayments
|
8
|
41,407
|
68
|
|||||||||
Other assets
|
456
|
292
|
||||||||||
Prepayments and other assets
|
9 | 10,247 |
|
- | ||||||||
Total non-current assets
|
413,410
|
242,844
|
||||||||||
Total assets
|
723,603
|
332,074
|
||||||||||
Liabilities
|
||||||||||||
Current liabilities
|
||||||||||||
Trade and other payables
|
24,256
|
16,644
|
||||||||||
Lease liabilities
|
11 | 205 | 192 | |||||||||
Income tax
|
481
|
32
|
||||||||||
Employee benefits
|
4,554
|
961
|
||||||||||
Provisions
|
12
|
11,498
|
6,172
|
|||||||||
Deferred Revenue |
506 | - | ||||||||||
Total current liabilities
|
41,500
|
24,001
|
||||||||||
Non-current liabilities
|
||||||||||||
Lease liabilities
|
11 | 1,512 | 1,256 | |||||||||
Deferred tax liabilities
|
3,247
|
1,365
|
||||||||||
Employee benefits
|
104 | 91 | ||||||||||
Total non-current liabilities
|
4,863
|
2,712
|
||||||||||
Total liabilities
|
46,363
|
26,713
|
||||||||||
Net assets |
677,240 | 305,361 | ||||||||||
Equity
|
||||||||||||
Issued capital
|
13 |
1,327,668
|
965,857
|
|||||||||
Reserves
|
5,737
|
(6,220
|
)
|
|||||||||
Accumulated losses
|
(656,165
|
)
|
(654,276
|
)
|
||||||||
Total equity
|
677,240
|
305,361
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of changes in equity
|
|
For the period ended 31 March 2024
|
Issued
|
Accumulated
|
|
||||||||||||||
capital
|
Reserves
|
losses
|
Total equity
|
|||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 January 2023
|
926,581
|
(12,159
|
)
|
(644,299
|
)
|
270,123
|
||||||||||
Profit/(loss) after income tax expense for the period
|
-
|
-
|
(3,053
|
)
|
(3,053
|
)
|
||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
-
|
(9,126
|
)
|
-
|
(9,126
|
)
|
||||||||||
Total comprehensive loss for the period
|
-
|
(9,126
|
)
|
(3,053
|
)
|
(12,179
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs |
(1,014 | ) | - | - | (1,014 | ) | ||||||||||
Share issuances - paid |
6,912 | - | - | 6,912 | ||||||||||||
Share-based payments
|
-
|
9,846
|
-
|
9,846
|
||||||||||||
Balance at 31 March 2023
|
932,479
|
(11,439
|
)
|
(647,352
|
)
|
273,688
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 July 2022
|
926,581
|
(6,814
|
)
|
(482,405
|
)
|
437,362
|
||||||||||
Profit/(loss) after income tax expense for the period
|
-
|
-
|
(164,947
|
)
|
(164,947
|
)
|
||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
-
|
(21,241
|
)
|
-
|
(21,241
|
)
|
||||||||||
Total comprehensive loss for the period
|
-
|
(21,241
|
)
|
(164,947
|
)
|
(186,188
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs | (1,014 | ) | - | - | (1,014 | ) | ||||||||||
Share issuances - paid |
6,912 | - | - | 6,912 | ||||||||||||
Share-based payments
|
-
|
16,616
|
-
|
16,616
|
||||||||||||
Balance at 31 March 2023
|
932,479
|
(11,439
|
)
|
(647,352
|
)
|
273,688
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 January 2024
|
1,038,846
|
7,805
|
(664,803
|
)
|
381,848
|
|||||||||||
Profit/(loss) after income tax expense for the period
|
-
|
-
|
8,638
|
8,638
|
||||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
-
|
(7,334
|
)
|
-
|
(7,334
|
)
|
||||||||||
Total comprehensive loss for the period
|
-
|
(7,334
|
)
|
8,638
|
1,304
|
|||||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs | (5,694 | ) | - | - | (5,694 | ) | ||||||||||
Share issuances - paid |
294,214 | - | - | 294,214 | ||||||||||||
Share-based payments
|
302
|
5,266
|
-
|
5,568
|
||||||||||||
Balance at 31 March 2024
|
1,327,668
|
5,737
|
(656,165
|
)
|
677,240
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 July 2023
|
965,857
|
(6,220
|
)
|
(654,276
|
)
|
305,361
|
||||||||||
Profit/(loss) after income tax expense for the period
|
-
|
-
|
(1,889
|
)
|
(1,889
|
)
|
||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
-
|
(5,331
|
)
|
-
|
(5,331
|
)
|
||||||||||
Total comprehensive loss for the period
|
-
|
(5,331
|
)
|
(1,889
|
)
|
(7,220
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs | (8,495 | ) | - | - | (8,495 | ) | ||||||||||
Share issuances - paid |
369,886 | - | - | 369,886 | ||||||||||||
Share-based payments
|
420
|
17,288
|
-
|
17,708
|
||||||||||||
Balance at 31 March 2024
|
1,327,668
|
5,737
|
(656,165
|
)
|
677,240
|
Iris Energy Limited
|
|
Unaudited interim consolidated statements of cash flows | |
For the period ended 31 March 2024
|
Note |
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
||||||||||
$'000
|
$'000
|
|||||||||||
Cash flows from operating activities
|
||||||||||||
Receipts from Bitcoin mining activities
|
129,394
|
43,669
|
||||||||||
Receipts
from AI Cloud Service revenue |
1,071 | - | ||||||||||
Receipts from ERS revenue |
438 | - | ||||||||||
Payments for electricity, suppliers and employees (inclusive of GST)
|
(85,880
|
)
|
(41,084
|
)
|
||||||||
Interest received
|
2,996
|
507
|
||||||||||
Other revenue |
- | 12 | ||||||||||
Interest paid
|
(130
|
)
|
(4,102
|
)
|
||||||||
Net cash from/(used in) operating activities
|
47,889
|
(998
|
)
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Payments for property, plant and equipment net of hardware prepayments
|
10 |
(112,664
|
)
|
(93,620
|
)
|
|||||||
Payments for computer hardware prepayments
|
8 |
(70,638
|
)
|
-
|
||||||||
Repayments/(advancement) of loan proceeds
|
-
|
2,291
|
||||||||||
Prepayments and deposits
|
(4,683
|
)
|
(7,363
|
)
|
||||||||
Proceeds from disposal of property, plant and equipment
|
- | 30,601 | ||||||||||
Deconsolidation of Non-Recourse SPVs | - | (1,214 | ) | |||||||||
Net cash from/(used in) in investing activities
|
(187,985
|
)
|
(69,305
|
)
|
||||||||
Cash flows from financing activities
|
||||||||||||
Capital raising costs
|
13 |
(902
|
)
|
(860
|
)
|
|||||||
Repayment of borrowings
|
-
|
(9,432
|
)
|
|||||||||
Capital raising receipts |
332,075 | 7,549 | ||||||||||
Payment of borrowing transaction costs
|
-
|
(250
|
)
|
|||||||||
Repayment of lease liabilities
|
(406
|
)
|
(247
|
)
|
||||||||
Net cash from/(used in) financing activities
|
330,767
|
(3,240
|
)
|
|||||||||
Net increase/(decrease) in cash and cash equivalents
|
190,671
|
(73,543
|
)
|
|||||||||
Cash and cash equivalents at the beginning of the period
|
68,894
|
109,970
|
||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
130
|
(3,276
|
)
|
|||||||||
Cash and cash equivalents at the end of the period
|
259,695
|
33,151
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Registered office
|
Principal place of business
|
c/o Pitcher Partners
|
Level 12, 44 Market Street
|
Level 13, 664 Collins Street
|
Sydney NSW 2000
|
Docklands VIC 3008
|
Australia
|
Australia
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
● |
Step 1: Identify the contract with a customer;
|
● |
Step 2: Identify the performance obligations in the contract;
|
● |
Step 3: Determine the transaction price, which is the total consideration provided by the customer;
|
● | Step 4: Allocate the transaction price among the performance obligations in the contract based on their relative fair values; and |
● |
Step 5: Recognize revenue when (or as) the Group satisfies a performance obligation.
|
●
|
AI Cloud Services revenue is
recognized as service revenue rateably over the enforceable term of individual contracts which is typically the stated term. The Company satisfies its performance obligation as these services are provided over time.
This method best represents the transfer of services.
|
●
|
Transaction price is determined as the list price of services (net of discounts) that the Company delivers to its customers, considering the term of each individual
contract, and the ability to enforce and collect the consideration.
|
●
|
Usage revenue (overage and
consumption-based services) is recorded as AI Cloud Services revenue in the month the usage is incurred/service is consumed by the customer, based on a fixed agreed upon amount per unit consumed.
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
● |
A base case scenario assuming recent Bitcoin economics, with reduction in block rewards following the halving event which occurred in April 2024;
|
● |
Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie, 50MW Prince George and 30MW Canal
Flats;
|
● |
A fourth operational site at Childress, Texas with installed nameplate capacity of 85MW as at 6 May 2024 incrementally increasing to 350 MW by 31
December 2024;
|
● |
Securing additional financing as required to achieve the Group’s growths objectives.
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
|||||||||||||
$’000 | $’000 |
$’000
|
$’000
|
|||||||||||||
ERS Revenue |
399 | - | 926 | - | ||||||||||||
Net gain on disposal of other assets |
- |
1,798 |
- | 3,117 | ||||||||||||
Total other income | 399 |
1,798 |
926
|
3,117
|
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
|||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Insurance
|
1,736
|
1,160
|
4,835
|
4,552
|
||||||||||||
Sponsorship and marketing
|
748
|
66
|
1,442
|
176
|
||||||||||||
Charitable donations
|
4
|
9
|
237
|
158
|
||||||||||||
Filing fees
|
21
|
19
|
57
|
58
|
||||||||||||
ERS fees |
24 | - | 56 | - | ||||||||||||
Site identification costs
|
-
|
-
|
-
|
15
|
||||||||||||
Non-refundable sales tax (See Note 12)
|
1,351
|
402
|
4,317
|
1,429
|
||||||||||||
Non-refundable provincial sales tax
|
340 | 70 | 963 | 70 | ||||||||||||
Other expenses
|
313 | 240 | 1,105 | 774 | ||||||||||||
Legal expenses
|
- | - | 1,797 | - | ||||||||||||
Total other operating expenses
|
4,537
|
1,966
|
14,809
|
7,232
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Cash at bank
|
259,695
|
38,657
|
||||||
Cash on deposit |
- | 30,237 | ||||||
Total cash and cash equivalents
|
259,695 | 68,894 |
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Share issuance proceeds
|
28,376
|
1,581
|
||||||
Trade and other receivables
|
567
|
97
|
||||||
Provincial sales tax receivable
|
-
|
122
|
||||||
Goods and services tax receivable
|
6,924
|
4,743
|
||||||
Total other receivables |
35,867
|
6,543
|
Three months
ended
|
Three months
ended
|
Nine months
ended
|
Nine months
ended
|
|||||||||||||
31 Mar 2024
|
31 Mar 2023
|
31 Mar 2024 |
31 Mar 2023 |
|||||||||||||
$‘000 |
$'000 |
$'000 |
$'000 |
|||||||||||||
Current assets
|
||||||||||||||||
Electricity financial asset
|
3,425
|
-
|
3,425 | - | ||||||||||||
Reconciliation
|
||||||||||||||||
Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below:
|
||||||||||||||||
Opening fair value
|
1,280
|
-
|
- | - | ||||||||||||
Additions
|
9,388
|
-
|
10,926 | - | ||||||||||||
Financial asset realized |
(6,152 | ) | - | (6,152 | ) | - | ||||||||||
Revaluation decrements (unrealized loss)
|
(1,091
|
)
|
-
|
(1,349 | ) | - | ||||||||||
Closing fair value
|
3,425
|
-
|
3,425 | - |
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Non-current assets
|
||||||||
Mining hardware prepayments
|
39,440
|
68
|
||||||
High-performance computing hardware prepayments
|
1,967
|
|
|
|
-
|
|||
Total computer hardware prepayment | 41,407 |
68
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Security deposits
|
2,870
|
2,420
|
||||||
Prepayments
|
8,336
|
11,373
|
||||||
Total current |
11,206
|
13,793
|
||||||
Non-current assets
|
||||||||
Security deposits
|
10,247
|
-
|
||||||
Total prepayments and other assets
|
21,453
|
13,793
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Non-current assets
|
||||||||
Land - at cost
|
1,911
|
1,803
|
||||||
Buildings - at cost
|
169,765
|
153,100
|
||||||
Less: Accumulated depreciation | (10,805 | ) | (5,042 | ) | ||||
158,960
|
148,058
|
|||||||
Plant and equipment - at cost
|
4,704
|
4,145
|
||||||
Less: Accumulated depreciation
|
(1,022
|
)
|
(712
|
)
|
||||
3,682
|
3,433
|
|||||||
Mining hardware - at cost
|
144,623
|
115,024
|
||||||
Less: Accumulated depreciation
|
(32,549
|
)
|
(15,709
|
)
|
||||
Less: Accumulated impairment
|
(25,714
|
)
|
(25,934
|
)
|
||||
86,360
|
73,381
|
|||||||
HPC Hardware |
29,603 | - | ||||||
Less: Accumulated depreciation |
(339 | ) | - | |||||
29,264 | - | |||||||
Development assets - at cost
|
76,904
|
14,427
|
||||||
Total property, plant and equipment
|
357,081
|
241,102
|
Land
|
Buildings
|
Plant and equipment
|
Mining
hardware
|
HPC
hardware
|
Development assets
|
Total
|
||||||||||||||||||||||
Consolidated
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000 |
$'000
|
$'000
|
|||||||||||||||||||||
Balance at 1 July 2023
|
1,803
|
148,058
|
3,433
|
73,381
|
- |
14,427
|
241,102
|
|||||||||||||||||||||
Additions
|
125
|
1,237
|
681
|
31,301
|
29,693 |
79,637
|
142,674
|
|||||||||||||||||||||
Disposals |
- | - | (35 | ) | (6 | ) | - | - | (41 | ) | ||||||||||||||||||
Exchange differences
|
(17
|
)
|
(1,811
|
)
|
(70
|
)
|
(1,150
|
)
|
(90 | ) |
72
|
(3,067
|
)
|
|||||||||||||||
Reversal of impairment |
- | - | - | - | - | 108 | 108 | |||||||||||||||||||||
Transfers in/(out)
|
-
|
17,340
|
-
|
-
|
- |
(17,340
|
)
|
-
|
||||||||||||||||||||
Depreciation expense
|
-
|
(5,863
|
)
|
(327
|
)
|
(17,166
|
)
|
(339 | ) |
-
|
(23,695
|
)
|
||||||||||||||||
Balance at 31 March 2024
|
1,911
|
158,960
|
3,682
|
86,360
|
29,264 |
76,904
|
357,081
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current liabilities
|
||||||||
Lease liability
|
205
|
192
|
||||||
Non-current liabilities
|
||||||||
Lease liability
|
1,512
|
1,256
|
||||||
Total lease liabilities
|
1,717
|
1,448
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$‘000
|
$‘000
|
|||||||
Current liabilities
|
||||||||
Non-refundable sales tax and other provisions
|
11,498
|
6,172
|
||||||
Total Provisions |
11,498 | 6,172 |
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Consolidated
|
||||||||||||||||
31 Mar 2024
|
30 Jun 2023
|
31 Mar 2024
|
30 Jun 2023
|
|||||||||||||
Shares
|
Shares
|
$'000
|
$'000
|
|||||||||||||
Ordinary shares - fully paid and unrestricted
|
138,411,731
|
64,747,477
|
1,327,668
|
965,857
|
Details
|
Date
|
Shares
|
$'000
|
||||||
Opening balance as at
|
1 July 2023
|
64,747,477
|
965,857
|
||||||
Shares issued under Committed Equity Facility
|
12,887,814
|
51,417
|
|||||||
Shares issued under ATM Facility
|
60,570,797
|
318,468
|
|||||||
Share based payment - third party issuance |
101,084 | 302 | |||||||
Share based payment - vested shares
|
104,559
|
118
|
|||||||
Capital raise costs, net of tax
|
-
|
(8,494
|
)
|
||||||
|
|||||||||
Closing balance as at
|
31 March 2024
|
138,411,731
|
1,327,668
|
For the Three Months Ended 31 March 2024
|
||||||||
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
|||||||
$'000
|
$'000
|
|||||||
Profit/(loss) after income tax
|
8,638
|
(3,053
|
)
|
Number
|
Number
|
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
|
104,496,782
|
53,559,687
|
||||||
|
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
|
112,195,908
|
53,559,687
|
Cents
|
Cents
|
|||||||
Basic earnings per share
|
8.27
|
(5.70
|
)
|
|||||
Diluted earnings per share
|
7.70
|
(5.70
|
)
|
For the Nine Months Ended 31 March 2024
|
||||||||
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
|||||||
$'000
|
$'000
|
|||||||
Profit/(loss) after income tax
|
(1,889
|
)
|
(164,947
|
)
|
Number
|
Number
|
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
|
81,456,256
|
53,203,472
|
||||||
|
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
|
81,456,256
|
53,203,472
|
Cents
|
Cents
|
|||||||
Basic earnings per share
|
(2.32
|
)
|
(310.03
|
)
|
||||
Diluted earnings per share
|
(2.32
|
)
|
(310.03
|
)
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Amounts payable within 12 months of balance date
|
65,856
|
7,481
|
||||||
Amounts payable after 12 months of balance date
|
-
|
-
|
||||||
Total Commitments
|
65,856
|
7,481
|
●
|
Employee
Share Plan
|
●
|
2021
Executive Director Liquidity and Price Target Options
|
●
|
Employee
Option Plan
|
●
|
Non-Executive
Director Option Plan
|
●
|
$75 Exercise Price Options
|
●
|
2022
Long-Term Incentive Plan Restricted Stock Units
|
●
|
2023
Long-Term Incentive Plan Restricted Stock Units (see below for the grants made under this 2023 LTIP this period)
|
●
|
3,194,491 RSUs to certain employees and key management personnel (“KMP”) of the Group were issued RSUs of
which:
- 33.3% of each individual’s RSU grant are subject to time-based vesting conditions and will vest after one years;
- 33.3% of each individual’s RSU grant are subject to time-based vesting conditions and will vest after two years;
- 33.4% of each individual’s RSU grant are subject to performance-based vesting conditions and will vest
after three years based on total shareholder return measured against the Nasdaq Small Cap Index (NQUSS) (and
continued service over the vesting period).
|
●
|
120,303 RSUs to certain Non-Executive Directors. These RSUs will vest after one year.
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Number of
options
|
Weighted
average
exercise price
|
Number of
options
|
Weighted
average
exercise price
|
|||||||||||||
31 Mar 2024
|
31 Mar 2024
|
30 Jun 2023
|
30 Jun 2023 | |||||||||||||
Outstanding as at 1 July 2023
|
8,906,839
|
$
|
41.93
|
9,010,547 | $ | 41.67 | ||||||||||
Granted during the period
|
-
|
$
|
0.00
|
- | $ | 0.00 | ||||||||||
Forfeited during the period
|
-
|
$
|
0.00
|
(103,708 | ) | $ | 20.03 | |||||||||
Vested during the period
|
-
|
$ | 0.00 | - | $ | 0.00 | ||||||||||
Outstanding as at 31 March 2024
|
8,906,839
|
$
|
41.93
|
8,906,839 | $ | 41.93 | ||||||||||
Exercisable as at 31 March 2024
|
3,615,546
|
$
|
2.92
|
3,485,302 | $ | 2.97 |
Number of
RSUs
|
||||
31 Mar 2024
|
||||
Outstanding
as at 1 July 2023
|
3,623,867
|
|||
Granted
during the period
|
3,314,794
|
|||
Forfeited
during the period
|
(217,760
|
)
|
||
Vested
during the period
|
(104,559
|
)
|
||
|
||||
Outstanding
as at 31 March 2024
|
6,616,342
|
|||
|
||||
Exercisable
as at 31 March 2024
|
-
|
Iris Energy Limited
|
|
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
|
• |
Bitcoin price and foreign currency exchange rate fluctuations;
|
|
• |
our ability to obtain additional capital on commercially reasonable terms and in a timely manner to meet our capital needs and facilitate
our expansion plans;
|
|
• |
the terms of any future financing or any refinancing, restructuring or modification to the terms of any future financing, which could
require us to comply with onerous covenants or restrictions, and our ability to service our debt obligations, any of which could restrict our business operations and adversely impact our financial condition, cash flows and results of
operations;
|
|
• |
our ability to successfully execute on our growth strategies and operating plans, including our ability to continue to develop our
existing data center sites and to diversify into the market for high performance computing (“HPC”) solutions, and in particular any current or future AI Cloud (“AI Cloud”) Services we offer;
|
|
• |
our limited experience with respect to new markets we have entered or may seek to enter, including the market for AI Cloud Services;
|
|
• |
expectations with respect to the ongoing profitability, viability, operability, security, popularity and public perceptions of the Bitcoin
network;
|
|
• |
expectations with respect to the profitability, viability, operability, security, popularity and public perceptions of any current or
future AI Cloud Services we offer;
|
|
• |
our ability to secure and retain customers on commercially reasonable terms or at all, particularly as it relates to our strategy to
expand into AI Cloud Services;
|
|
• |
our ability to manage counterparty risk (including credit risk) associated with any current or future customers, including customers of
our AI Cloud Services and other counterparties;
|
|
• |
our ability to secure renewable energy, renewable energy certificates, power capacity, facilities and sites on commercially reasonable
terms or at all;
|
|
• |
the risk that any current or future customers, including customers of our AI Cloud Services or other counterparties, may terminate,
default on or underperform their contractual obligations;
|
|
• |
Bitcoin global hashrate fluctuations;
|
|
• |
delays associated with, or failure to obtain or complete, permitting approvals, grid connections and other development activities
customary for greenfield or brownfield infrastructure projects;
|
|
• |
our reliance on power and utilities providers, third party mining pools, exchanges, banks, insurance providers and our ability to maintain
relationships with such parties;
|
|
• |
expectations regarding availability and pricing of electricity;
|
|
• |
our participation and ability to successfully participate in demand response products and services and other load management programs run,
operated or offered by electricity network operators, regulators or electricity market operators;
|
|
• |
the availability, reliability and/or cost of electricity supply, hardware and electrical and data center infrastructure, including with
respect to any electricity outages and any laws and regulations that may restrict the electricity supply available to us;
|
|
• |
any variance between the actual operating performance of our miner hardware achieved compared to the nameplate performance including
hashrate;
|
|
• |
our ability to curtail our electricity consumption and/or monetize electricity depending on market conditions, including changes in
Bitcoin mining economics and prevailing electricity prices;
|
|
• |
actions undertaken by electricity network and market operators, regulators, governments or communities in the regions in which we operate;
|
|
• |
the availability, suitability, reliability and cost of internet connections at our facilities;
|
|
• |
our ability to secure additional hardware, including hardware for Bitcoin mining and any current or future AI Cloud Services we offer, on
commercially reasonable terms or at all, and any delays or reductions in the supply of such hardware or increases in the cost of procuring such hardware;
|
|
• |
expectations with respect to the useful life and obsolescence of hardware (including hardware for Bitcoin mining as well as hardware for
other applications, including any current or future AI Cloud Services we offer);
|
|
• |
delays, increases in costs or reductions in the supply of equipment used in our operations;
|
|
• |
our ability to operate in an evolving regulatory environment;
|
|
• |
our ability to successfully operate and maintain our property and infrastructure;
|
|
• |
reliability and performance of our infrastructure compared to expectations;
|
|
• |
malicious attacks on our property, infrastructure or IT systems;
|
|
• |
our ability to maintain in good standing the operating and other permits and licenses required for our operations and business;
|
|
• |
our ability to obtain, maintain, protect and enforce our intellectual property rights and confidential information;
|
|
• |
any intellectual property infringement and product liability claims;
|
|
• |
whether the secular trends we expect to drive growth in our business materialize to the degree we expect them to, or at all;
|
|
• |
the occurrence of any environmental, health and safety incidents at our sites, and any material costs relating to environmental, health
and safety requirements or liabilities;
|
|
• |
damage to our property and infrastructure and the risk that any insurance we maintain may not fully cover all potential exposures;
|
|
• |
ongoing proceedings relating to the default by two of the Company’s wholly-owned special purpose vehicles under limited recourse equipment
financing facilities; ongoing securities litigation relating in part to the default; and any future litigation, claims and/or regulatory investigations, and the costs, expenses, use of resources, diversion of management time and efforts,
liability and damages that may result therefrom;
|
|
• |
our failure to comply with any laws including the anti-corruption laws of the United States and various international jurisdictions;
|
|
• |
any failure of our compliance and risk management methods;
|
|
• |
any laws, regulations and ethical standards that may relate to our business, including those that relate to Bitcoin and the Bitcoin mining
industry and those that relate to any other services we offer (such as AI Cloud Services), including regulations related to data privacy, cybersecurity and the storage, use or processing of information;
|
|
• |
our ability to attract, motivate and retain senior management and qualified employees;
|
|
• |
increased risks to our global operations including, but not limited to, political instability, acts of terrorism, theft and vandalism,
cyberattacks and other cybersecurity incidents and unexpected regulatory and economic sanctions changes, among other things;
|
|
• |
climate change, severe weather conditions and natural and man-made disasters that may materially adversely affect our business, financial
condition and results of operations;
|
|
• |
public health crises, including an outbreak of an infectious disease (such as COVID-19) and any governmental or industry measures taken
in response;
|
|
• |
our ability to remain competitive in dynamic and rapidly evolving industries;
|
|
• |
damage to our brand and reputation;
|
|
• |
expectations relating to Environmental, Social and Governance issues or reporting;
|
|
• |
the costs of being a public company;
|
|
• |
and other important factors discussed under “Item 3.D. Key Information—Risk Factors” in our Annual Report, as such factors may be updated
from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://investors.irisenergy.co.
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Profit/(loss) after income tax (expense)/ benefit
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||
Add/(deduct) the following:
|
||||||||||||||||
Finance expense
|
126
|
2,311
|
190
|
16,227
|
||||||||||||
Interest income
|
(1,500
|
)
|
(244
|
)
|
(2,878
|
)
|
(458
|
)
|
||||||||
Depreciation
|
8,692
|
5,125
|
23,870
|
24,122
|
||||||||||||
Income tax (benefit)/expense
|
3,473
|
321
|
3,228
|
2,349
|
||||||||||||
EBITDA
|
19,429
|
4,460
|
22,521
|
(122,707
|
)
|
|||||||||||
|
||||||||||||||||
Revenue
|
54,349
|
16,382
|
131,320
|
47,668
|
||||||||||||
|
||||||||||||||||
Profit/(loss) after income tax (expense) /benefit margin(1)
|
16%
|
|
(19)%
|
|
(1)%
|
|
(346)%
|
|
||||||||
|
||||||||||||||||
EBITDA margin(2)
|
36%
|
|
27%
|
|
17%
|
|
(257)%
|
|
(1) |
Profit/(loss) after income tax (expense)/benefit margin is calculated as Loss after income tax
(expense)/benefit divided by Revenue.
|
(2) |
EBITDA margin is calculated as EBITDA divided by Revenue. Prior to the three months ended March 31, 2024, the Company calculated EBITDA margin as EBITDA divided by
Bitcoin mining revenue. The Company has revised the calculation of EBITDA margin to reflect that Revenue now includes revenue generated from AI Cloud Services as a result of its strategy to diversify its revenue streams. EBITDA margin for
prior periods presented in this MD&A has been revised to reflect this revised calculation.
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Profit/(loss) after income tax (expense)/benefit
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||
Add/(deduct) the following:
|
-
|
-
|
-
|
-
|
||||||||||||
Finance expense
|
126
|
2,311
|
190
|
16,227
|
||||||||||||
Interest income
|
(1,500
|
)
|
(244
|
)
|
(2,878
|
)
|
(458
|
)
|
||||||||
Depreciation
|
8,692
|
5,125
|
23,870
|
24,122
|
||||||||||||
Income tax (benefit)/expense
|
3,473
|
321
|
3,228
|
2,349
|
||||||||||||
EBITDA
|
19,429
|
4,460
|
22,521
|
(122,707
|
)
|
|||||||||||
Revenue
|
54,349
|
16,382
|
131,320
|
47,668
|
||||||||||||
Profit/(loss) after income tax (expense)/benefit margin(1)
|
16%
|
|
(19)%
|
|
(1)%
|
|
(346)%
|
|||||||||
EBITDA margin(2)
|
36%
|
|
27%
|
|
17%
|
|
(257)%
|
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Gain on disposal of subsidiary(3)
|
-
|
(3,257
|
)
|
-
|
(3,257
|
)
|
||||||||||
Impairment of assets(4)
|
-
|
-
|
-
|
105,172
|
||||||||||||
Reversal of impairment of assets(5)
|
-
|
-
|
(108
|
)
|
-
|
|||||||||||
Share-based payment expense – $75 exercise price options
|
2,873
|
2,913
|
8,682
|
8,868
|
||||||||||||
Share-based payment expense – other
|
2,944
|
590
|
8,940
|
1,405
|
||||||||||||
Foreign exchange (gain)/loss
|
(4,714
|
)
|
(4,557
|
)
|
(2,265
|
)
|
2,619
|
|||||||||
Other expense items(6)
|
218
|
58
|
3,404
|
175
|
||||||||||||
Unrealized (gain)/loss on financial asset
|
1,091
|
-
|
1,349
|
-
|
||||||||||||
Adjusted EBITDA
|
21,841
|
207
|
42,523
|
(7,725
|
)
|
|||||||||||
Adjusted EBITDA margin(7)
|
40%
|
|
1%
|
|
32%
|
|
(16)%
|
|
(1) |
Profit/(loss) after income tax (expense)/benefit margin is calculated as Profit/(loss) after income (expense)/benefit divided by Revenue.
|
(2) |
EBITDA margin is calculated as EBITDA divided by Revenue. Prior to the three months ended March 31, 2024, the Company calculated EBITDA
margin as EBITDA divided by Bitcoin mining revenue. The Company has revised the calculation of EBITDA margin to reflect that Revenue now includes revenue generated from AI Cloud Services as a result of its strategy to diversify its revenue
streams. EBITDA margin for prior periods presented in this MD&A has been revised to reflect this revised calculation.
|
(3) |
Gain on disposal of subsidiary represents a gain recorded on the deconsolidation of two separate wholly-owned, special purpose vehicles of the Company
(collectively the “Non-Recourse SPVs”) on February 3, 2023.
|
(4) |
Impairment of assets for the nine months ended March 31, 2024 and March 31, 2023 was nil and $105.2 million, respectively. Impairment of
assets for the three months ended March 31, 2024 and March 31, 2023 was nil and $105.2 million, respectively. See “—Components of our Results of Operations—Expenses—Impairment of assets” for further information.
|
(5) |
Reversal of impairment of assets for the nine months ended March 31, 2024 and
March 31, 2023 was $0.1 million and nil, respectively. Reversal of impairment of assets for the three months ended March 31, 2024 and March 31, 2023 was nil and nil, respectively. See “—Components of our Results of Operations—Expenses—Impairment of assets” for further information.
|
(6) |
Other expense items include professional fees incurred in relation to the securities class action, and one-off additional remuneration.
|
(7) |
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue. Prior to the three months ended March 31, 2024, the Company calculated Adjusted EBITDA margin as Adjusted EBITDA divided by Bitcoin mining revenue. The Company
has revised the calculation of Adjusted EBITDA margin to reflect that Revenue now includes revenue generated from AI Cloud Services as a result of its strategy to diversify its revenue streams. Adjusted EBITDA margin for prior periods
presented in this MD&A has been revised to reflect this revised calculation.
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Electricity Charges
|
(19,834
|
)
|
(5,973
|
)
|
(55,944
|
)
|
(19,910
|
)
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Realized gain/(loss) on financial asset
|
91
|
-
|
3,210
|
-
|
||||||||||||
ERS revenue (included in Other income)
|
399
|
-
|
926
|
-
|
||||||||||||
ERS fees (included in Other operating expenses)
|
(24
|
)
|
-
|
(56
|
)
|
-
|
||||||||||
Net electricity costs
|
(19,368
|
)
|
(5,973
|
)
|
(51,864
|
)
|
(19,910
|
)
|
||||||||
Bitcoin mined
|
1,003
|
501
|
3,371
|
2,003
|
||||||||||||
Net electricity costs per Bitcoin mined
|
(19.3
|
)
|
(11.9
|
)
|
(15.4
|
)
|
(9.9
|
)
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
Revenue
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
||||||||||||
Bitcoin mining revenue
|
53,383
|
11,327
|
129,827
|
41,294
|
||||||||||||
AI Cloud Services revenue
|
567
|
-
|
567
|
-
|
||||||||||||
Other income
|
399
|
1,798
|
926
|
3,117
|
||||||||||||
Gain on disposal of subsidiary
|
-
|
3,257
|
-
|
3,257
|
||||||||||||
Expenses
|
-
|
-
|
-
|
|||||||||||||
Depreciation
|
(8,692
|
)
|
(5,125
|
)
|
(23,870
|
)
|
(24,122
|
)
|
||||||||
Electricity charges
|
(19,834
|
)
|
(5,973
|
)
|
(55,944
|
)
|
(19,910
|
)
|
||||||||
Realized gain/(loss) on financial asset
|
91
|
-
|
3,210
|
-
|
||||||||||||
Employee benefits expense
|
(4,333
|
)
|
(2,470
|
)
|
(12,844
|
)
|
(11,138
|
)
|
||||||||
Share-based payments expense
|
(5,817
|
)
|
(3,503
|
)
|
(17,622
|
)
|
(10,273
|
)
|
||||||||
Impairment of assets
|
-
|
-
|
-
|
(105,172
|
)
|
|||||||||||
Reversal of impairment of assets
|
-
|
-
|
108
|
-
|
||||||||||||
Professional fees
|
(2,018
|
)
|
(1,117
|
)
|
(5,938
|
)
|
(4,086
|
)
|
||||||||
Site expenses
|
(2,096
|
)
|
(1,290
|
)
|
(5,892
|
)
|
(3,329
|
)
|
||||||||
Other operating expenses
|
(4,537
|
)
|
(1,966
|
)
|
(14,809
|
)
|
(7,232
|
)
|
||||||||
Gain/(loss) on sale of assets
|
1
|
(160
|
)
|
16
|
(6,616
|
)
|
||||||||||
Unrealized gain/(loss) on financial asset
|
(1,091
|
)
|
-
|
(1,349
|
)
|
-
|
||||||||||
Profit/(loss) before interest, foreign exchange gain/(loss) and income tax
|
6,023
|
(5,222
|
)
|
(3,614
|
)
|
(144,210
|
)
|
|||||||||
Finance expense
|
(126
|
)
|
(2,311
|
)
|
(190
|
)
|
(16,227
|
)
|
||||||||
Interest income
|
1,500
|
244
|
2,878
|
458
|
||||||||||||
Foreign exchange gain/(loss)
|
4,714
|
4,557
|
2,265
|
(2,619
|
)
|
|||||||||||
Profit/(loss) before
income tax (expense)/benefit
|
12,111
|
(2,732
|
)
|
1,339
|
(162,598
|
)
|
||||||||||
Income tax (expense)/benefit
|
(3,473
|
)
|
(321
|
)
|
(3,228
|
)
|
(2,349
|
)
|
||||||||
Profit/(loss) after
income tax (expense)/benefit
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||
Other comprehensive income/(loss)
|
||||||||||||||||
Items that may be reclassified subsequently to profit or loss:
|
||||||||||||||||
Foreign currency translation
|
(7,334
|
)
|
(9,126
|
)
|
(5,331
|
)
|
(21,241
|
)
|
||||||||
Other comprehensive income/(loss), net of tax
|
(7,334
|
)
|
(9,126
|
)
|
(5,331
|
)
|
(21,241
|
)
|
||||||||
Total comprehensive income/(loss)
|
1,304
|
(12,179
|
)
|
(7,220
|
)
|
(186,188
|
)
|
● |
A base case scenario assuming recent Bitcoin economics, with reduction in block rewards following the halving event which occurred in April 2024;
|
● |
Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie, 50MW Prince George and 30MW Canal Flats;
|
● |
A fourth operational site at Childress, Texas with installed nameplate capacity of 85MW as at 6 May 2024 incrementally increasing to 350 MW by 31 December 2024;
|
● |
Securing additional financing as required to achieve the Group’s growths objectives.
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||
($ thousands)
|
($ thousands)
|
|||||||
Net cash from/(used) in operating activities
|
47,889
|
(998
|
)
|
|||||
Net cash used in investing activities
|
(187,985
|
)
|
(69,305
|
)
|
||||
Net cash from financing activities
|
330,767
|
(3,240
|
)
|
|||||
Net cash and cash equivalents increase/(decrease)
|
190,671
|
(73,543
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
68,894
|
109,970
|
||||||
Effects of exchange rate changes on cash and cash equivalents
|
130
|
(3,276
|
)
|
|||||
Net cash and cash equivalents at the end of the period
|
259,695
|
33,151
|
1 year or
|
Between 1
|
Between 2
|
Over 5
|
Total
|
||||||||||||||||
less
|
and 2 years
|
and 5 years
|
years
|
|||||||||||||||||
($ thousands)
|
||||||||||||||||||||
Non-interest bearing
|
||||||||||||||||||||
Trade and other payables
|
24,256
|
-
|
-
|
-
|
24,256
|
|||||||||||||||
Lease liability
|
369
|
293
|
551
|
2,933
|
4,147
|
|||||||||||||||
Total
|
24,625
|
293
|
551
|
2,933
|
28,403
|
|
|
• |
Operating hashrate currently 10 EH/s, milestone achieved ahead of schedule
|
|
• |
2024 expansion plans increased to 30 EH/s
|
|
o |
Secured latest-generation Bitmain S21 Pro miners with nameplate efficiency of 15 J/TH
|
|
o |
Upon completion, nameplate fleet efficiency of 16 J/TH and indicative electricity cost per Bitcoin mined of $17k
|
|
o |
Additional 50MW data center expansion at Childress (announced April 29, 2024)
|
|
o |
Funding through existing cash and other sources
|
|
• |
Additional Bitmain S21 Pro miner purchase options (10 EH/s) supporting expansion pathway to 40 EH/s in 1H 2025
|
|
• |
Existing agreements – Bitmain T21/S21 purchase (5 EH/s)
|
|
• |
Amended agreement – Bitmain T21 options (11 EH/s)
|
|
o |
Flexibility, when exercising the options, to select either Bitmain T21 or S21 Pro miners (or a combination of):
|
|
◾ |
$14.0/TH for Bitmain T21 (unchanged); or
|
|
◾ |
$18.9/TH for Bitmain S21 Pro (new)
|
|
o |
Contract size of up to 9 EH/s (if T21 selected in full) or 11 EH/s (if S21 Pro selected in full)
|
|
o |
Option expiry in March 2025 (previously September 2024)
|
|
• |
New agreement – Bitmain S21 Pro purchase and options (24 EH/s)
|
|
o |
12 EH/s purchase at $15.1/TH (plus $3.8/TH payable 9 months after delivery); and
|
|
o |
12 EH/s options at $18.9/TH
|
|
◾ |
10 EH/s of which supports expansion pathway to 40 EH/s in 1H 2025
|
|
|
• |
Childress expansion plan in 2024 increased by 50MW
|
|
o |
Enabled partly through a new substation design, as well as ongoing improvement and optimization of the Company’s construction and procurement process
|
|
o |
Global data center capacity now planned at 510MW by the end of 2024
|
|
• |
Upgrade of the existing miner fleet across British Columbia and Texas
|
|
1. |
Cost per bitcoin mined represents indicative electricity cost per bitcoin mined assuming 30 EH/s, nameplate fleet efficiency of 16 J/TH, weighted average power cost of $0.037/kWh ($0.045/kWh in BC and $0.033/kWh
in Texas – latter calculated using actual monthly average net power price at Childress during FY24 to date (i.e. July 2023 to March 2024), including ERS revenue and adjusted for now eligible 4CP benefit), current global hashrate of 595
EH/s, block reward of 3.125 BTC per block and transaction fees of 0.3 BTC per block.
|
2. |
The new option agreement for 12 EH/s of Bitmain S21 Pro miners can be exercised incrementally until May 2025. The amended option agreement for 9 EH/s of T21 miners or 11 EH/s of S21 Pro miners can be exercised
incrementally over the option period until March 2025. An initial downpayment option fee equal to 10% of the total purchase price is associated with both option agreements.
|
3. |
Cash of $321.5 million reflects USD equivalent, unaudited preliminary cash, cash equivalents and term deposits as of April 30, 2024.
|
|
• |
Bitcoin Mining: providing security to the Bitcoin network, expanding to 30 EH/s in 2024. Operations since 2019.
|
|
• |
AI Cloud Services: providing cloud compute to AI customers, 816 NVIDIA H100 GPUs. Operations since 2024.
|
|
• |
Next-Generation Data Centers: 260MW of operating data centers, expanding to 510MW in 2024. Specifically designed and purpose-built infrastructure for high-performance and power-dense computing applications.
|
|
• |
Technology: technology stack for performance optimization of AI Cloud Services, Bitcoin Mining and energy trading operations.
|
|
• |
Development Portfolio: 2,160MW of secured power capacity across North America, >1,000 acre property portfolio and additional development pipeline.
|
|
• |
100% Renewable Energy (from clean or renewable energy sources or through the purchase of RECs): targets sites with low-cost & underutilized renewable energy, and supports electrical grids and local
communities.
|
|
Media
Jon Snowball
Domestique
+61 477 946 068
Danielle Ghigliera
Aircover Communications
+1 510 333 2707
|
Investors
Lincoln Tan
IREN
+61 407 423 395
lincoln.tan@iren.com
|
|
|
PROCEED WITH PURPOSE.
|
6
|