Going for a run, page-12

You are both right.

The way I see it, the recent rally in IFN has been driven by:

* a number of data points whereby existing wind portfolios have sold for over ~A$2.5m per MW (this would value IFN at A$1.4bn, taking debt into consideration, about A$1 per share). O/night a Canadian renewable company purchased 131MW wind generation in Europe for C$300m.

* LGC price / political outlook, with looming election either leading to i) no change in renewable policy; ii) improvement in targets / duration of RET target

New projects will definitely be accretive. This monetises the development portfolio >1,000MW (assume ~10% IRR for every dollar invested).

IFN is shortlisted for a number of auctions, and given 6,000MW needs to be built in next 5 years, it should basically win 1 in every 6 projects.