Share
clock Created with Sketch.
23/03/16
08:30
Share
Originally posted by knackerskirzner
↑
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.
Expand
I think the difficult question from a valuation perspective is, what value do you ascribe to the development portfolio. This is difficult because:
* its size, >1,000MW
* its diversity across differnt regions of Australia (wind capacity factors, etc.)
* latent optionality of adding solar to both existing and new wind farms http://reneweconomy.com.au/2016/hyb...ely-to-deliver-significant-cost-savings-72298
Assuming current developed portfolio is worth ~A$1, need to derive back-of-envelope value for development portfolio, but could easily be another 0.20c+
So, despite IFN being up 100%+ for last twelve months, there could be 50-100% further upside ... (blue skies scenario)