Mercury NZ (MCY) Investor presentation summary

Project commitment and overview

• Approved construction of a 77 MW, 221 GWh per annum wind farm near Dargaville, with first generation expected by mid-2026 and full output by late 2026.

• Forecast capital expenditure of $287 million, contributing to over $1 billion in new renewables investment for FY24 and FY25.

• Multi-contract delivery approach adopted, leveraging experience from previous wind farm projects completed on time and under budget.

• Grid location and wind profile enhance portfolio diversity and are expected to deliver higher generation-weighted average prices.

Technical and locational features

• The wind farm will feature 12 Vestas V162 6.4MW turbines, the largest and tallest in New Zealand, with a tip height of 206m.

• Underground 33kV lines will connect turbines to a 66kV onsite substation, with a 14km transmission line to Northpower's substation.

• Proximity to Auckland and low correlation with the national wind fleet support higher average prices and partially offset higher capital costs.

Financial and operational metrics

• Capital cost for Kaiwaikawe is $287 million, with total operating costs of $17.8/MWh and expected EBITDAF impact of $29 million in the first full year.

• Net capacity factor is 33%, with a P50 yield of 221 GWh per annum over 30 years.

• Final stages of negotiating offtake arrangements with Genesis.