Discounted Cash Flow (DCF) Analysis Levered
Kirkland Lake Gold Ltd. (KL)
$38.92
-0.09 (-%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Revenue | 406.66 | 747.49 | 915.91 | 1,379.99 | 2,460.10 | 3,907.14 | 6,205.32 | 9,855.30 | 15,652.21 | 24,858.85 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 180.93 | 296.82 | 543.08 | 919.39 | 1,315.79 | 2,059.86 | 3,271.46 | 5,195.74 | 8,251.89 | 13,105.66 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -73.69 | -131.84 | -275.20 | -456.42 | -582.73 | -957.78 | -1,521.14 | -2,415.88 | -3,836.91 | -6,093.78 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 107.23 | 164.98 | 267.87 | 462.97 | 733.06 | 1,102.08 | 1,750.32 | 2,779.86 | 4,414.98 | 7,011.87 |
Weighted Average Cost Of Capital
| Share price | $ 38.92 |
|---|---|
| Beta | 0.528 |
| Diluted Shares Outstanding | 271.36 |
| Cost of Debt | |
| Tax Rate | 31.66 |
| After-tax Cost of Debt | 9.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.009 |
| Total Debt | 26.17 |
| Total Equity | 10,561.14 |
| Total Capital | 10,587.31 |
| Debt Weighting | 0.25 |
| Equity Weighting | 99.75 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Revenue | 406.66 | 747.49 | 915.91 | 1,379.99 | 2,460.10 | 3,907.14 | 6,205.32 | 9,855.30 | 15,652.21 | 24,858.85 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 180.93 | 296.82 | 543.08 | 919.39 | 1,315.79 | 2,059.86 | 3,271.46 | 5,195.74 | 8,251.89 | 13,105.66 |
| Capital Expenditure | -73.69 | -131.84 | -275.20 | -456.42 | -582.73 | -957.78 | -1,521.14 | -2,415.88 | -3,836.91 | -6,093.78 |
| Free Cash Flow | 107.23 | 164.98 | 267.87 | 462.97 | 733.06 | 1,102.08 | 1,750.32 | 2,779.86 | 4,414.98 | 7,011.87 |
| WACC | ||||||||||
| PV LFCF | 1,039.50 | 1,557.19 | 2,332.70 | 3,494.44 | 5,234.74 | |||||
| SUM PV LFCF | 13,658.57 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.02 |
| Free cash flow (t + 1) | 7,152.11 |
| Terminal Value | 177,913.20 |
| Present Value of Terminal Value | 132,821.74 |
Intrinsic Value
| Enterprise Value | 146,480.31 |
|---|---|
| Net Debt | -821.47 |
| Equity Value | 147,301.78 |
| Shares Outstanding | 271.36 |
| Equity Value Per Share | 542.84 |