Hi Andy
You make a valid point.
Debt levels have been a concern up until recently when IFN renegotiated a particularly restrictive debt and covenant. The capital light strategy has been a welcome tactic with additional production sold without incurring major debt. The battery was half-funded by arena and previous calculation had this paying for itself in an estimated 18 months based on improved utilization of generation.The other half was funded from cash.
I think they are also in a better position to renegotiate debt funding with the present cash flows but I wouldn't be surprised if another capital light production source was signed up to further use Smithfield's firming capacity. This would increase cash flow without further debt as well.
Given current interest rates I think the likelihood of rolling over any residual debt at a reasonable rate is pretty good. It is not likely that IFN will be completely debt free as a capital intensive business usually has some debt, especially if it wants to invest in growth.
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