Basically - they are expecting a pincer movement of drop-off in LGC revenues and increase in operating costs as the plant starts to approach end of economic life.
What they DON'T incorporate is any embedded / base value to the existing portfolio. In other words, I look at the IFN portfolio and say, yes Lake Bonney would need to be repowered in the late 2020's but that will be far cheaper than a new project as the infrastructure is already in place. If they go with plant that fits the towers, we are talking new turbines and blades and an upgrade in control systems, but the rest of the infrastructure should remain useable. I would think this is probably 50% of the cost of a greenfield project. This is not included in the future values used in the report.
IFN Price at posting:
68.5¢ Sentiment: Hold Disclosure: Held
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