Kevin Dede: Yes. It definitely helps, Geoff. Thank you. Maybe you could speak a little bit more specifically to the power prices that you’re seeing in the PPAs. As I understand it, they’re two separate ones, right? There’s one for Villarrica, and there’s another one for ANDE.
Geoff Morphy: Paso Pe and Iguazu.
Kevin Dede: Yes. So maybe you could speak to that clearly one of your competitors is working with a partner in that jurisdiction that I know you must be intimately familiar with. So maybe you could just help us, not just myself but all my colleagues here in understanding that power price scheme.
Geoff Morphy: Okay. Well, 1st our first 10 megawatts that we put in January of 2022 was in Villarrica. And our contract is with a private franchise owner within Paraguay. The only one like it and it’s called Eclipsa [ph]. And it’s been about $0.036, there’s been a few changes to it, but it’s pretty steady at $0.036 consistent now. But we can’t get any more power or production from that site because the ANDE distributes, which is the national – Paraguay National, the distributor of power. Eclipsa [ph] only gets so much. So our allocation is there. So for future growth, we’ve gone to ANDE itself. Just like the competitor that you mentioned just moments ago, Kevin. And pretty much all of these contracts are very similar in terms of rate.
There’s high voltage rates and there’s medium voltage rates; we’re taking the high voltage rates that put us in about $0.039 per kilowatt hour. Not subject to indexation with inflation. And all green power and all consistent and all done in a very harmonious partnership with the government and national distributor. It’s working well. And I think the other guys will have similar arrangements. We’re not privy to their contract, but unless they are taking smaller amounts. And under the media voltage tariff. And that would have a higher rate.
Kevin Dede: When you sort of take a step back and you look at ANDE source, right. I think they have, what, 50% of the 14 megawatts come out of that dam. How much do you think they’re willing to allocate to crypto?
Geoff Morphy: Rounding thereabouts and trying not to speak for them. But it sure seems like it’s about sort of 550 or so high voltage and about 100 mw medium voltage.
Kevin Dede: Okay.
Geoff Morphy: I think they want to make sure that they have good, strong, committed power from that. They’re making a commitment to the dam up there. But there is some variation season to season. And I don’t think they want to get into that all that much. So, I think they want to make sure that they can sign these contracts, get it into production and see what it looks like before going any further.
Kevin Dede: Okay. I’m sure you’re happy to hear, last question for me. Could you just give us a little more color, Geoff, please, on the Yguazu site selection, on the timeline. And maybe how you’re thinking about narrowing it down.
Geoff Morphy: Sure. Yguazu 100 megawatts, we know, ANDE likes to do it with 80 megawatt transformers. It’s their choice. That’s why we put one in Paso Pe and hoping that we might be able to get a little more there at some point. But Yguazu, we are looking for real estate up in that area fairly close to the substation up there. That’s the main transmission corridor, so there’s a lot of power up there. It’s recently been upgraded as well. So it’s a nice new substation there. And we are going through multiple sites right now. In terms of selection, some have been ruled out, some are still in the running, but they’re relatively close. And you basically measure, which ones are high and dry, which ones are fairly close, so that you can run less electrical cable, which is a big factor.
The electrical cable can cost more than the actual site itself. So we’re going through that. As we said in the script, it’s all fitting in within the timeline for next year. But I think we should be able to hopefully identify a preferred site this year, hopefully secure it, and then we’ll start laying out plans for the substation to reduce the voltage there. And we haven’t announced any plans in terms of hydro miners or containers or air cooled yet. That’s all part of design and development plans for next year.
Jeff Lucas: By the way, Kevin, let me just add a little comment here. You made a statement about the size of the Itaipu dam. It’s actually a 12 gigawatt dam. It’s been running now for about 40 years or so. Half of the power is allocated to Brazil, half of it goes to Paraguay. Paraguay is actually using less than 10% of it for their own purposes here. And the other 40% of their share, actually, they sort of sell back to Brazil at about $0.01 per kilowatt hour. So clearly it’s very compelling and strongly in their government’s interest to try to expand the use of it locally, including opportunities of Bitcoin mining, which is why one of our pair companies is following us as they’re looking at opportunities in that area.
Kevin Dede: Great comment to add. Thank you very much, Jeff. As always, gentlemen, very appreciative taking my questions. Thank you.
Geoff Morphy: Thank you, Kevin.
Jeff Lucas: Thanks, Kevin.
Operator: And our next [Technical Difficulty]. Please go ahead. Lucas. Is your line muted?
Kevin Dede: No, thank you, operator. Sorry, I didn’t hear my name. Hey, good morning, everyone. Thank you very much for all the color. Very informative call. Just a few quick questions. The first is kind of on the hash price assumption post having. What do you think is a reasonable level to assume to clear that hurdle rate you indicated earlier?
