I agree A.
The lower interest rate going forward (from est. 7.5% to 5%) will save us $12-14M pa. But then the banks may insist Infigen lock in further PPA as guarantee, which may likely lower earnings going forward because it'll be at a discount to current merchant prices.
I am comfortable with them not refinancing in the short-term and happy to wait it out.
The cash raised in Feb that wasn't for Bodangora can fund Cherry Tree (est $80M) if its not used for refinancing.
Going forward, Bodangora + Woodlawn will generate est. $30M pa after costs and interest repayments (2019). And Cherry Tree, if funded internally and 100% merchant, could add another $20M pa after costs in 2020 (180k mwh * $130 bundled (less $20 mwh op ex) = $20M).
So, its quite possible that in 18 months time we will have three wind-farms generating net $50M cash pa that can be put towards dividends, new projects, batteries etc.
IFN Price at posting:
67.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)