Discounted Cash Flow (DCF) Analysis Levered

China Gold International Resources ... (CGG.TO)

$5.07

-0.06 (-1.17%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.67 | 5.07 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	411.88	570.57	657.46	864.03	1,137.36	1,469.49	1,898.62	2,453.06	3,169.42	4,094.96
Revenue (%)
Operating Cash Flow	98.55	154.94	158.31	260.46	417.28	417.32	539.19	696.64	900.08	1,162.93
Operating Cash Flow (%)
Capital Expenditure	-256.43	-133.37	-130.64	-151.39	-154.08	-401.38	-518.60	-670.04	-865.71	-1,118.51
Capital Expenditure (%)
Free Cash Flow	-157.88	21.57	27.67	109.07	263.20	15.94	20.59	26.61	34.37	44.41

Weighted Average Cost Of Capital

Share price	$ 5.07
Beta	1.938
Diluted Shares Outstanding	396.41
Cost of Debt
Tax Rate	14.21
After-tax Cost of Debt	2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.527
Total Debt	973.27
Total Equity	2,009.82
Total Capital	2,983.09
Debt Weighting	32.63
Equity Weighting	67.37
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	411.88	570.57	657.46	864.03	1,137.36	1,469.49	1,898.62	2,453.06	3,169.42	4,094.96
Operating Cash Flow	98.55	154.94	158.31	260.46	417.28	417.32	539.19	696.64	900.08	1,162.93
Capital Expenditure	-256.43	-133.37	-130.64	-151.39	-154.08	-401.38	-518.60	-670.04	-865.71	-1,118.51
Free Cash Flow	-157.88	21.57	27.67	109.07	263.20	15.94	20.59	26.61	34.37	44.41
WACC
PV LFCF						14.58	17.23	20.36	24.07	28.45
SUM PV LFCF										104.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.32
Free cash flow (t + 1)	45.30
Terminal Value	618.87
Present Value of Terminal Value	396.37

Intrinsic Value

Enterprise Value	501.06
Net Debt	765.14
Equity Value	-264.08
Shares Outstanding	396.41
Equity Value Per Share	-0.67