Infigen Energy Ltd
IFN Details
· PPA with EnergyAustralia: Infigen Energy Ltd (ASX: IFN) stock rallied over 4.8% on March 15, 2017 given the positive sentiments. The group along with its development partner made a power purchase agreement (PPA) with EnergyAustralia for 60% of the output (electricity and LGCs) from the proposed 113.2 MW Bodangora wind farm project which is being developed near Wellington in New South Wales. The group also acquired 50% equity interest in Bodangora along with their development partner and intends to own entire Bodangora project which could be funded from their current cash reserves. Meanwhile, the group expects their Bodangora wind farm to produce enough low-emission and renewable energy to meet the electricity needs of over 49,000 NSW homes. The group also sees solid potential industry opportunity as Australian Government's renewable energy target is to have 23.5% of total energy in the national electricity market which should be offered by renewable sources by 2020.
· Recommendation: IFN stock rallied over 10% in the last three months (as of March 14, 2017) and we believe the momentum would continue in the coming months. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.98
Fortescue Metals Group Ltd
.JPG)
FMG Details
· Recovering iron ore prices: Fortescue Metals Group Ltd (ASX: FMG) stock surged over 5.65% on March 15, 2017 driven by the recovering iron ore prices. With China boosting their infrastructure spending, iron ore and steel prices have rallied. Moreover, FMG stock will be added in S&P/ASX 50 Index effective from March 20, 2017. The group has completed the process of buying 75% interest in the Nullagine Project from BC Iron Limited.
· Recommendation: FMG stock rallied over 32.8% in the last six months (as of March 14, 2017). On the other hand, we believe that the stock is trading at higher levels and give an “Expensive” recommendation on the stock at the current price of – $ 6.54
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