Ann: DC Two Sells All 2MW Mid-West Regional Data Centre Capacity, page-2

Credit where credit's due, glad management is out there selling their services for a change.

I've done some numbers. The 2 fixed contracts add up to $64k in monthly revenue, divided by the capacity of 1.25mW (per 17th Feb announcement), we'll get the rate of $51.80 per kW contracted.

The announcement today said the total month to month contracted clients add up to $131k monthly revenue. Since the full 2mW was sold, we'll get the rate of $175/kW for month to month clients, based on the remaining 0.75mW capacity.

So this implies month to month clients are paying 3x more than fixed contracts. This suggests to me that DC2 is facing a hard task of maintaining client retention rate. Management should let investors know the risk. You can't group fixed contract clients and month to month clients together and call it "recurring revenue". Yes it is technically recurring but month to month clients can cancel at any time, only 30d notice is required. Given the size of the month to month revenue, 131k/(131k + 64.7k) = 67% of the total "recurring revenue".

Also, Bibra Lake has always been the selling point of DC2. However, the point in regard to Bibra Lake was pushed to the end of the annoucement, which is bad optic. Bibra Lake certification process has been delayed for the 4th/5th time now, at least management should have provided an explanation. You can't just say you are "eagerly waiting for a response" when this was supposed to be done by mid 2021.

To me, this is a wishy washy report, attempting to diverge market's attention from Bibra Lake to Mid West DC. The fact that this report was published on the very last day of March, which is the previously provided deadline for Bibra Lake, furthers my argument.

		Contract Size	Length	Date signed	Monthly revenue	Capacity
1	Contract 1	$926,376	5 years	Jun-21	$15,440
2	Contract 2	$1,775,358	3 years	Aug-21	$49,316
3	Total				$64,755	1.25mW	$51.80
4
5				Month to month	$131,703	0.75mW	$175.60