Discounted Cash Flow (DCF) Analysis Levered

Hudbay Minerals Inc. (HBM)

$4.28

-0.06 (-1.38%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.69 | 4.28 | 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	1,472.37	1,237.44	1,092.42	1,502	1,461.44	1,487.44	1,513.91	1,540.85	1,568.27	1,596.17
Revenue (%)
Operating Cash Flow	479.55	310.86	239.48	383.82	487.80	412.16	419.49	426.95	434.55	442.28
Operating Cash Flow (%)
Capital Expenditure	-190.90	-259.20	-361.18	-377.43	-308.96	-336.89	-342.88	-348.99	-355.20	-361.52
Capital Expenditure (%)
Free Cash Flow	288.65	51.65	-121.71	6.38	178.84	75.27	76.61	77.97	79.36	80.77

Weighted Average Cost Of Capital

Share price	$ 4.28
Beta	1.970
Diluted Shares Outstanding	261.46
Cost of Debt
Tax Rate	26.54
After-tax Cost of Debt	3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.933
Total Debt	1,245.18
Total Equity	1,119.06
Total Capital	2,364.24
Debt Weighting	52.67
Equity Weighting	47.33
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	1,472.37	1,237.44	1,092.42	1,502	1,461.44	1,487.44	1,513.91	1,540.85	1,568.27	1,596.17
Operating Cash Flow	479.55	310.86	239.48	383.82	487.80	412.16	419.49	426.95	434.55	442.28
Capital Expenditure	-190.90	-259.20	-361.18	-377.43	-308.96	-336.89	-342.88	-348.99	-355.20	-361.52
Free Cash Flow	288.65	51.65	-121.71	6.38	178.84	75.27	76.61	77.97	79.36	80.77
WACC
PV LFCF						69.55	65.41	61.52	57.86	54.41
SUM PV LFCF										308.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.22
Free cash flow (t + 1)	82.38
Terminal Value	1,324.49
Present Value of Terminal Value	892.30

Intrinsic Value

Enterprise Value	1,201.05
Net Debt	1,019.52
Equity Value	181.53
Shares Outstanding	261.46
Equity Value Per Share	0.69