Agree - At present in my opinion IFN's share price is undervalued by about 20% on its current generation portfolio. Now with this capital raise and the Bodangora announcement, they are converting their very substantial development pipeline into reality. I see it as a case of every $ invested into a new operational project = multiple $ of enhanced shareholder value.
In the case of Bodangora, using the economics of the existing portfolio, the extra 113 MW should generate an extra approx. $30m of EBITDA. Deduct $10m interest on the $163m borrowed and for the $74m invested into the equity component, we will see a $20m increase in cash generated before tax and debt amortisation. A 27% pre-tax cash return on the $74m invested can only enhance overall shareholder value in my book!
Next few weeks will be interesting to see how the market reacts, but for mine this finally sees IFN unlocking the significant latent value of its development portfolio and should result in a significant market re-rate. Given the large number of new development opportunities in its portfolio, IFN is now a legitimate growth stock!
Good luck to all and DYOR.
IFN Price at posting:
$1.01 Sentiment: Hold Disclosure: Held
