Discounted Cash Flow (DCF) Analysis Levered

Dundee Precious Metals Inc. (DPM.TO)

$9.75

-0.14 (-1.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 14.88 | 9.75 | 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	377.11	419.06	609.56	641.44	569.79	641.94	723.21	814.77	917.93	1,034.15
Revenue (%)
Operating Cash Flow	98.16	99.43	197.07	252.68	232.05	208.25	234.61	264.32	297.78	335.48
Operating Cash Flow (%)
Capital Expenditure	-99.67	-68.98	-37.56	-64.15	-49.07	-86.87	-97.87	-110.26	-124.22	-139.95
Capital Expenditure (%)
Free Cash Flow	-1.51	30.45	159.51	188.54	182.98	121.38	136.74	154.06	173.56	195.53

Weighted Average Cost Of Capital

Share price	$ 9.75
Beta	1.181
Diluted Shares Outstanding	191.16
Cost of Debt
Tax Rate	38.85
After-tax Cost of Debt	10.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.055
Total Debt	14.58
Total Equity	1,863.79
Total Capital	1,878.37
Debt Weighting	0.78
Equity Weighting	99.22
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	377.11	419.06	609.56	641.44	569.79	641.94	723.21	814.77	917.93	1,034.15
Operating Cash Flow	98.16	99.43	197.07	252.68	232.05	208.25	234.61	264.32	297.78	335.48
Capital Expenditure	-99.67	-68.98	-37.56	-64.15	-49.07	-86.87	-97.87	-110.26	-124.22	-139.95
Free Cash Flow	-1.51	30.45	159.51	188.54	182.98	121.38	136.74	154.06	173.56	195.53
WACC
PV LFCF						111.29	114.97	118.76	122.68	126.73
SUM PV LFCF										594.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.06
Free cash flow (t + 1)	199.44
Terminal Value	2,825
Present Value of Terminal Value	1,831.01

Intrinsic Value

Enterprise Value	2,425.45
Net Debt	-418.59
Equity Value	2,844.04
Shares Outstanding	191.16
Equity Value Per Share	14.88