At month end Infigen (IFN.AU) reported that revenue for the quarter ended 31 December 2016 had increased 22% over the prior year. The Company also upgraded its EBITDA guidance, which we continue to think remains conservative. We took the opportunity to trim our very large position, but continue to think the stock price ascribes zero value for Infigen’s development assets and ongoing debt reduction. Our math indicates debt reduction can drive ~10% equity value accretion over the next twelve months. In addition, Infigen appears to be on the cusp of finally developing a new project, which would result in a production capacity increase of around ten percent.
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