Infigen Energy Ltd

IFN Details
· Strong first quarter performance: Infigen Energy Ltd (ASX: IFN) stock fell over 6.3% on November 15, 2016 with market volatility. On the other hand, the group reported a production of 437 GWh for the first quarter of FY17, which was 11% or 44 GWh more against earlier corresponding period (pcp). Better wind resource in New South Wales (NSW) and South Australia (SA) drove this performance. As a result, the group’s revenue surged 56% year on year (yoy) to $62.8 million during the period driven by the rising merchant electricity prices in SA and to a lesser extent in NSW, higher merchant Largescale Generation Certificate (LGC) prices, and rising production. The average bundled price for the sale of electricity and LGCs rose 40% or $41.21/MWh to $143.71/MWh over the same period of last year.

· Recommendation: IFN stock recovered over 15% (as of November 14, 2016) in the last four weeks while we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.82


First quarter 2017 performance (Source: Company Reports) 

Whitehaven Coal Ltd

WHC Details
· Strong production highlights: Whitehaven Coal Ltd (ASX: WHC) stock corrected over 10.1% on November 15, 2016 after generating huge returns this month based on coal price movement. The group’s FY16 operating EBITDA rose 72%. WHC reported that semi soft coking coal surged 86% yoy to US$130/t for the September quarter while Managed ROM coal production enhanced 41% yoy to 5.4Mt. Managed saleable coal production rose 20% yoy to 5.2Mt while managed and equity coal sales reached 5.0Mt and 3.8Mt, respectively. Maules Creek 10.5Mtpa ramp up is on track. The group’s expansion efforts for a 400-metre wide panel at Narrabri is on track to start production in the second half of FY2017.

· Recommendation: The strong results coupled with recent rise in commodity prices drove the WHC stock 7.3% in the last four weeks leading to a rise of over 321.9% (as of November 14, 2016) in the last six months. The huge rally placed the stock at higher levels which is trading at an unreasonable P/E. We give an “Expensive” recommendation on the stock at the current price of – $ 2.77


Production and Sales Highlights (Source: Company Reports)

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