Discounted Cash Flow (DCF) Analysis Levered

Hecla Mining Company (HL)

$4.9

+0.03 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.33 | 4.9 | 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	577.77	567.14	673.27	691.87	807.47	880.84	960.87	1,048.18	1,143.41	1,247.30
Revenue (%)
Operating Cash Flow	115.88	94.22	120.87	180.79	220.34	190.33	207.62	226.49	247.07	269.52
Operating Cash Flow (%)
Capital Expenditure	-98.04	-136.93	-121.42	-91.02	-109.05	-151.16	-164.90	-179.88	-196.23	-214.06
Capital Expenditure (%)
Free Cash Flow	17.84	-42.71	-0.56	89.78	111.29	39.17	42.73	46.61	50.84	55.46

Weighted Average Cost Of Capital

Share price	$ 4.9
Beta	2.075
Diluted Shares Outstanding	536.97
Cost of Debt
Tax Rate	-535.09
After-tax Cost of Debt	7.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.537
Total Debt	533.92
Total Equity	2,631.13
Total Capital	3,165.05
Debt Weighting	16.87
Equity Weighting	83.13
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	577.77	567.14	673.27	691.87	807.47	880.84	960.87	1,048.18	1,143.41	1,247.30
Operating Cash Flow	115.88	94.22	120.87	180.79	220.34	190.33	207.62	226.49	247.07	269.52
Capital Expenditure	-98.04	-136.93	-121.42	-91.02	-109.05	-151.16	-164.90	-179.88	-196.23	-214.06
Free Cash Flow	17.84	-42.71	-0.56	89.78	111.29	39.17	42.73	46.61	50.84	55.46
WACC
PV LFCF						35.05	34.21	33.40	32.60	31.82
SUM PV LFCF										167.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.75
Free cash flow (t + 1)	56.57
Terminal Value	580.21
Present Value of Terminal Value	332.93

Intrinsic Value

Enterprise Value	500.01
Net Debt	323.91
Equity Value	176.10
Shares Outstanding	536.97
Equity Value Per Share	0.33