Discounted Cash Flow (DCF) Analysis Levered

Lucara Diamond Corp. (LUC.TO)

$0.54

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.85 | 0.54 | 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	176.19	192.54	125.26	230.08	212.93	239.85	270.17	304.32	342.79	386.12
Revenue (%)
Operating Cash Flow	45.11	50.09	-1.53	83.39	96.23	63.24	71.24	80.24	90.39	101.81
Operating Cash Flow (%)
Capital Expenditure	-60.64	-27.15	-33.95	-15.29	-19.08	-43.76	-49.29	-55.52	-62.54	-70.45
Capital Expenditure (%)
Free Cash Flow	-15.52	22.95	-35.48	68.10	77.15	19.48	21.95	24.72	27.84	31.36

Weighted Average Cost Of Capital

Share price	$ 0.54
Beta	1.499
Diluted Shares Outstanding	428.81
Cost of Debt
Tax Rate	37.61
After-tax Cost of Debt	2.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.569
Total Debt	78.60
Total Equity	231.56
Total Capital	310.16
Debt Weighting	25.34
Equity Weighting	74.66
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	176.19	192.54	125.26	230.08	212.93	239.85	270.17	304.32	342.79	386.12
Operating Cash Flow	45.11	50.09	-1.53	83.39	96.23	63.24	71.24	80.24	90.39	101.81
Capital Expenditure	-60.64	-27.15	-33.95	-15.29	-19.08	-43.76	-49.29	-55.52	-62.54	-70.45
Free Cash Flow	-15.52	22.95	-35.48	68.10	77.15	19.48	21.95	24.72	27.84	31.36
WACC
PV LFCF						17.94	18.60	19.28	20	20.73
SUM PV LFCF										96.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.63
Free cash flow (t + 1)	31.99
Terminal Value	482.52
Present Value of Terminal Value	318.98

Intrinsic Value

Enterprise Value	415.53
Net Debt	52.18
Equity Value	363.35
Shares Outstanding	428.81
Equity Value Per Share	0.85