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56.0¢ infigen energy

Hi guys The hardware for Bodangora is rolling in... [IMG]...

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strangelogic

483 Posts.

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28/03/18

12:22

Post #: 32085586
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Originally posted by Ashentegra ↑

Billy,

That is all very flattering. I have used HC to try to work through my thoughts and understanding. Sorry if I inflict upon other investors who simply want binary answers to buy/sell.

I believe the issues confronting IFN are hard but do-able.

Refinance without the cash sweep conditions should happen by 31 March, but still at a relatively high interest rate. Investors will expect unconditional/cheap finance but this doesn't look possible. It is easy to jeer from the cheap seats.

Batteries are a priority, with immediate savings on frequency stabilisation ~$6m pa and despatch optionality exchanging off-peak production for peak supply. But large-scale batteries are hard to source cos everyone wants them.

Bodangora begins production June-August, with immediate cash and optionality benefits. This is a really big thing, adding 25% to output.

Cherry Tree is ready to commence construction. It would be nice to up-scale with bigger turbines but the Vic govt probably said no. Other projects seem much more distant and I an not sure why. There are big SA projects available yet no progress.

We marvel at the falling cost of wind turbines. However, this also discounts built/operating kit, making these assets less valuable. Hmmm.

Wind is an ideal compliment to solar. Solar is dispersed; wind is concentrated in few hands. I also like the EBIDTA margins. This business deserves a solid P/E.

There are many moving parts to the IFN equation and it would be easy for the BoD to make a serious mistake.

The refinance should unjam the balance sheet. The BoD will then be able to commit to significant expansion - within weeks, not months. I think the SP will then move up vigorously. That is how I am betting.

Ash

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Hi guys
The hardware for Bodangora is rolling in...

Looking forward to the monthly reports when that baby starts spinning!

On the subject of batteries, maybe Infigen should ask the government for a grant like the Gannawarra Energy Storage System has for the batteries instead of more expensive debt. If not a grant then maybe infrastructure loans at a low rate? It would make the politicians look like they are being proactive about renewable supply energy stability and supporting business.

IFN Price at posting: 57.3¢ Sentiment: Buy Disclosure: Held
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Hi guys The hardware for Bodangora is rolling in... [IMG]...

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