Discounted Cash Flow (DCF) Analysis Levered

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

$5.38

-0.27 (-4.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.63 | 5.38 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	570.57	657.46	864.03	1,137.36	1,104.95	1,313.32	1,560.99	1,855.36	2,205.25	2,621.12
Revenue (%)
Operating Cash Flow	154.94	158.31	260.46	417.28	447.28	416.45	494.98	588.33	699.27	831.14
Operating Cash Flow (%)
Capital Expenditure	-133.37	-130.64	-151.39	-154.08	-45.58	-206.03	-244.89	-291.07	-345.96	-411.20
Capital Expenditure (%)
Free Cash Flow	21.57	27.67	109.07	263.20	401.70	210.42	250.10	297.26	353.32	419.95

Weighted Average Cost Of Capital

Share price	$ 5.38
Beta	1.876
Diluted Shares Outstanding	396.41
Cost of Debt
Tax Rate	19.08
After-tax Cost of Debt	3.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.110
Total Debt	835.09
Total Equity	2,132.71
Total Capital	2,967.79
Debt Weighting	28.14
Equity Weighting	71.86
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	570.57	657.46	864.03	1,137.36	1,104.95	1,313.32	1,560.99	1,855.36	2,205.25	2,621.12
Operating Cash Flow	154.94	158.31	260.46	417.28	447.28	416.45	494.98	588.33	699.27	831.14
Capital Expenditure	-133.37	-130.64	-151.39	-154.08	-45.58	-206.03	-244.89	-291.07	-345.96	-411.20
Free Cash Flow	21.57	27.67	109.07	263.20	401.70	210.42	250.10	297.26	353.32	419.95
WACC
PV LFCF						190.61	205.23	220.98	237.93	256.18
SUM PV LFCF										1,110.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.39
Free cash flow (t + 1)	428.35
Terminal Value	5,105.43
Present Value of Terminal Value	3,114.47

Intrinsic Value

Enterprise Value	4,225.40
Net Debt	406.63
Equity Value	3,818.77
Shares Outstanding	396.41
Equity Value Per Share	9.63