For what it is worth, I would expect that the refi of debt will...

For what it is worth, I would expect that the refi of debt will be wrapped in with the new financing for Bodangora - makes sense to tackle all of this at the same time via a panel of banks.

For the moment though they continue to amortise debt quite quickly and with that also amortise the interest rate hedge liability as well. Combined, we saw a $56m reduction in net financing liabilities in 6 months which is an impressive result. Yes the rise in interest rates assisted in reducing the mark to market hedge liabilities, but it is still very good.

I continue to sit on a large position that I have held for several years now as I think this story still has a way to run. The catalysts as I see them:

1. Continued reduction in debt in the near term which will add about 10c/share per annum;
2. A refi of the debt facility and an associated reduction in the cost of debt with the reset of interest rates;
3. A resumption of dividends - as IFN sits in the ASX200, this will drag a new group of instos into the stock (those that can only buy dividend paying stocks in the ASX200);
4. The commercial development of the project pipeline. Encouragingly they nominated 4 projects that are moving forward which for mine suggests we will see activity on a few of these this year. The 4 projects nominated would increase capacity by about 50% over current!
5. A re-rate of the stock. At $1.00 stock price, IFN is trading at about 8.5x EBITDA based on 1st half result (EBITDA $84m). They are conservatively forecasting a lower 2nd half EBITDA for an annualised $140m ($56m in 2nd half) which would place IFN on 10x EBITDA at current prices. If full year comes in higher, then this sets up one basis for a re-rate. Market for similar stocks seems to be between 9x and 11x EBITDA.

DYOR and GLTA