Flyers Creek Approved, page-7

I believe that the lack of progress on the refinancing in addition to negative sentiment due to a lack of policy regarding energy in Australia is what is causing the share price to suffer. Perversely neither are bad for IFN.

Of course, current debt covenants require free cash flow to pay down existing debt. But as debt gets paid offf obviously the net equity value of the company increases. I am indifferent as to whether this money goes to me as a dividend or as an increase in the value of the company that I partly own. They've already structured a solution to finance development of new windfarms by ring-fencing this from exisitnig operations so current convenants haven't totally blocked expansion either (although it doesn't help). The main benefit from refinancing will be from lower interest rates which will be welcome when that day finally comes.

Furthermore, the lack of a bi-partisan policy for energy has made Australia a signficant sovereign risk in this sector resulting in a lack of investment in energy generation for many years now. Supply keeps coming off-line with old infrastructure retirement whilst demand increases with population growth. The result has been high electricity prices which is great for any producer and great for IFN.

I'm amazed that the share price has slackened so much despite such strong cashflows and a company that, despite having non-optimal debt is far from having and debt distress. The interest coverage ratio is huge and the P/E ratio is also amazing. As frustrating as this is now, I'll look back happily on these days when I have been able to accumulate to my already substantial holding in this cash cow company.