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Agree Marky, This latest run is all about relative value to...

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knackerskirzner

463 Posts.

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22/03/16

19:47

Post #: 17340150
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Originally posted by markyjones ↑

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.

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Agree Marky,

This latest run is all about relative value to other deals being done in the sector, both domestic and international -and less about developing project announcements. There is a macro shift in sentiment from coal and fossil to renewable. The broader market is picking up on the theme. Once you add that to potential corporate activity it can be a sharp and sustained move up.

IFN Price at posting: 60.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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