Discounted Cash Flow (DCF) Analysis Levered

Capstone Copper Corp. (CS.TO)

$6.08

+0.27 (+4.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.20 | 6.08 | overvalue

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	415.89	418.66	453.76	794.77	1,296.02	1,773.19	2,426.04	3,319.26	4,541.34	6,213.36
Revenue (%)
Operating Cash Flow	131.10	92.88	147.17	553.34	87.42	576.32	788.51	1,078.83	1,476.03	2,019.47
Operating Cash Flow (%)
Capital Expenditure	-96.78	-96.75	-97.52	-133.43	-559.75	-453.40	-620.33	-848.72	-1,161.20	-1,588.73
Capital Expenditure (%)
Free Cash Flow	34.32	-3.86	49.65	419.92	-472.33	122.93	168.18	230.11	314.83	430.74

Weighted Average Cost Of Capital

Share price	$ 6.08
Beta	2.117
Diluted Shares Outstanding	630.18
Cost of Debt
Tax Rate	36.92
After-tax Cost of Debt	2.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.247
Total Debt	702.97
Total Equity	3,831.49
Total Capital	4,534.46
Debt Weighting	15.50
Equity Weighting	84.50
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	415.89	418.66	453.76	794.77	1,296.02	1,773.19	2,426.04	3,319.26	4,541.34	6,213.36
Operating Cash Flow	131.10	92.88	147.17	553.34	87.42	576.32	788.51	1,078.83	1,476.03	2,019.47
Capital Expenditure	-96.78	-96.75	-97.52	-133.43	-559.75	-453.40	-620.33	-848.72	-1,161.20	-1,588.73
Free Cash Flow	34.32	-3.86	49.65	419.92	-472.33	122.93	168.18	230.11	314.83	430.74
WACC
PV LFCF						109.32	133	161.83	196.89	239.56
SUM PV LFCF										840.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.45
Free cash flow (t + 1)	439.35
Terminal Value	4,204.32
Present Value of Terminal Value	2,338.29

Intrinsic Value

Enterprise Value	3,178.89
Net Debt	532.66
Equity Value	2,646.22
Shares Outstanding	630.18
Equity Value Per Share	4.20