Infigen cashes in on high LGC price as renewables construction remains stalled, page-7

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knackerskirzner

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09/02/16

16:11

Post #: 16977973
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Originally posted by anthony75 ↑

Knackers I agree.

Pacific Hydro (a company I had shares in years ago until it was taken private) was bought by Chinese investors a few weeks ago for over $3 billion including debt (therefore this was its Enterprise Value, not market capitalisation). It has 900 MW of generation capacity globally including Brazil and Chile.

Pacific Hyrdo = $3.33 million EV per MW of installed capacity

IFN has 557 MW of generation capacity, now purely in Australia (a AAA rated country, i.e. better than Brazil and Chile). It also has wind and solar projects on the drawing board (another 1,200 MW) ready to put shovels in the ground for. It's market cap is $370million + debt of around $650 million (I think) = Enterprise Value of approx $1 billion.

IFN = $1.80 million EV per MW of installed capacity, and a great pipeline of development projects too

So compared to the Pacific Hyrdro deal IFN seems ridiculously cheap! And since that Pacific Hyrdro deal was put together LGC pricing has gone up too.

PS this was mentioned in the annual report: "Every one dollar increase in the bundled price of electricity and LGCs contributes approximately $1 million in additional EBITDA to our business on an annualised basis"

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Completely agree- based on the Pac Hydro case, IFN is worth at least 65-70c if you take that line of reasoning.

IFN Price at posting: 47.0¢ Sentiment: Buy Disclosure: Held
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Infigen cashes in on high LGC price as renewables construction remains stalled, page-7

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