Earnings release
Page 1
PEOPLE ENGINEERING A CLEAN ENERGY, ZERO CARBON FUTURE WWW.LGI.COM.AU P: +61 7 3711 2225 E: enquiries@lgi.com.au in: linkedin.com/company/lgi-ltd | 57 Harvey Street North, Eagle Farm QLD 4009 Saving the planet one landfill, one solar panel, one megawatt, one battery at a time Page 1 ASX Announcement 6 October 2026 LGI TO ACQUIRE 42MW OF OPERATING SOLAR GENERATION ASSETS Summary • LGI to acquire 42MW of Queensland-based operating grid connected solar assets for $22.0 million with no associated debt. • Based on current electricity prices, the acquisition is estimated to contribute annual EBITDA of $2.1 - $4.0 million dependent on timeliness of synergies realisation and Dynamic Asset Control System (DACS) implementation. • With this acquisition the Company upgrades its targeted medium -term strategic pipeline to over 120MW of distributed, renewable, dispatchable capacity from the 80MW high - conviction pipeline previously announced. • The purchase price is below greenfield development cost for like assets, with land lease life remaining for both solar assets over 30 years. • The addition of battery energy storage system (BESS) hybridisation could achieve even further enhancements to earnings. • LGI sees positive tailwinds for electricity markets in the medium to long term. • The Company will maintain disciplined capital management, targeting net debt to EBITDA below 2x throughout the remaining portfolio build out to 120MW. LGI Limited (ASX:LGI) (“the Company” or “LGI”), a renewable energy and carbon abatement company operating a portfolio of distributed assets, announces it has entered into a binding agreement to acquire 100% of the shares in Maryrorough Solar Pty Ltd (“Brigalow”) and 100% of the shares in Chinchilla Solar Pty Ltd ( “Chinchilla”) from IIG Solar Assets Pty Ltd ATF The IIG Solar Asset Trust which owns and operates the two grid connected solar farms in Queensland, for $22.0 million with no associated debt. This acquisition advances LGI’s strategic objective to develop and operate a diverse renewable energy platform, underpinned by low -cost sources of generation and storage collectively dispatched by LGI’s proprietary DACS to optimise returns across energy and carbon markets.
Page 2
PEOPLE ENGINEERING A CLEAN ENERGY, ZERO CARBON FUTURE WWW.LGI.COM.AU P: +61 7 3711 2225 E: enquiries@lgi.com.au in: linkedin.com/company/lgi-ltd | 57 Harvey Street North, Eagle Farm QLD 4009 Saving the planet one landfill, one solar panel, one megawatt, one battery at a time Page 2 The Chinchilla Solar Farm located in Baking Board QLD has 14.7 MWac export / 19.9 MWp installed and Brigalow Solar Farm located in Yarranlea QLD has 27.3 MWac export / 34.5 MWp installed . The solar farms have a combined 54MW of installed capacity, with 42MW of export capacity. Based on current electricity prices, the acquisition is estimated to contribute annual EBITDA of $2.1 - $4.0 million dependent on timeliness of revenue synergies realisation and success of DACS implementation. Strategic Rationale The acquisition aligns with the Company’s strategy to develop and operate a diversified renewable energy platform. Following completion of this transaction and the medium -term build-out of its targeted pipeline, the Company’s combined operating portfolio will exceed 120MW of distributed, renewable, dispatchable capacity. In addition to delivering enhanced scale, the acquisition broadens the Company’s access to end-markets for energy trading and introduces a wider set of potential offtake partners. Prior to listing on the ASX, LGI developed solar projects and has continued a disciplined search for strategically aligned renewable assets as part of its planned energy portfolio build -out. Over the past year, the Company has intensified its assessment of solar opportunities, undertaking due diligence on multiple assets as valuations have softened in line with energy prices. The Chinchilla and Brigalow solar generation assets are located close to the Company’s existing operations in the Toowoomba and Western Downs regions. LGI intends to transition the maintenance and operation of these assets in-house, and apply DACS across both sites to optimise energy dispatch and improve price outcomes. The Chinchilla and Brigalow facilities stood out for their high-quality construction and robust engineering, providing confidence in their ability to operate reliably for the remainder of their lease terms, both of which exceed 30 years. Each site features greater installed generation capacity than export capability (54 MW installed / 42 MW export), reducing the risk of operating below maxim um export levels and creating a platform to consider BESS. Electricity demand in the National Electricity Market continues to grow annually, driven by households transitioning to electric vehicles, the electrification of industrial processes, and emerging high-consumption sectors such as data centres. At the same time, the supply side is undergoing rapid structural change as variable renewable generation enters the market and conventional thermal generation approaches end -of-life, with declining reliability. Against this backdrop, the Company sees positive medium to long term tailwinds for electricity markets, underpinned by rising demand and a fundamentally shifting supply mix.
Page 3
PEOPLE ENGINEERING A CLEAN ENERGY, ZERO CARBON FUTURE WWW.LGI.COM.AU P: +61 7 3711 2225 E: enquiries@lgi.com.au in: linkedin.com/company/lgi-ltd | 57 Harvey Street North, Eagle Farm QLD 4009 Saving the planet one landfill, one solar panel, one megawatt, one battery at a time Page 3 Consideration and Completion The $22.0 million consideration, with no associated debt, equates to approximately $0.5 million per MW, materially below greenfield development cost for comparable assets. The acquisition will be funded through a combination of available cash and the Company’s existing debt facility. Following completion, the Company will continue to apply disciplined capital management, targeting net debt to EBITDA of below 2x as it builds out the portfolio to 120MW. The Company confirms shareholder approval is not required in connection with the acquisition, there are no outstanding material conditions to be satisfied, and completion is anticipated on 9 October 2026. Commenting on the acquisition, Chief Executive Officer Jarryd Doran of LGI, said: "This acquisition is a natural extension of our strategy to grow our renewable generation base within our disciplined capital approach framework. The 42MW of solar across Chinchilla and Brigalow are proven, operational assets acquired well below replacement cost that complement our existing distributed grid connected footprint. With this acquisition the Company upgrades its medium-term strategic pipeline target to over 120MW of distributed, renewable, dispatchable capacity, while remaining fully committed to developing the 80MW high-conviction pipeline previously announced. Solar generation assets operate using inverter-based technology like batteries, which integrate logically into LGI’s diverse energy platform asset strategy, combining dispatchable (24/7) landfill biogas fuelled generation with fast-dispatch BESS, and now solar to successfully build out our firming capacity under DACS control. Preliminary studies on BESS integration have been initiated at both sites with early viability supporting a case to consider expanding these sites with batteries over time.” This announcement has been authorised for release by the Board of LGI Limited. -- ENDS – For further information please contact: Investor Relations Sam Wells www.lgi.com.au NWR Communications investor.relations@lgi.com.au sam@nwrcommunications.com.au +61 427 630 152 About LGI (ASX: LGI) LGI Limited is a renewable energy and carbon abatement company. Operating a vertically integrated portfolio of distributed assets across landfill biogas, solar, and battery storage (BESS), LGI uses its proprietary Dynamic Asset Control System (DACS) to opt imise returns across energy and carbon markets.