LGI (LGI.AX) Stock Analysis & Winston Score

LGI Limited is an Australian company that captures methane gas leaking out of old landfill sites and turns it into electricity. Landfills naturally produce methane as buried waste breaks down, and LGI collects that gas before it escapes into the atmosphere, then burns it in generators to produce power sold to the electricity grid. The company operates across Australia, working with landfill owners and local councils as its main partners and customers. LGI makes money by selling the electricity it generates, and it can also earn revenue from carbon credits because capturing methane reduces greenhouse gas emissions. The business is relatively small, with a market cap around $300 million, and its competitive edge comes from owning long-term contracts on established landfill sites that competitors cannot easily replicate. The negative margins currently reflect the capital-heavy nature of building out new generation capacity, so the key risk is whether the company can bring enough new projects online to reach profitability before its funding runs thin.