Discounted Cash Flow (DCF) Analysis Levered

Sandstorm Gold Ltd. (SAND)

$5.845

-0.01 (-0.26%)

All numbers are in Millions, Currency in USD

Stock DCF: -22.65 | 5.845 | 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	73.15	89.43	93.02	114.86	148.73	178.20	213.49	255.79	306.46	367.17
Revenue (%)
Operating Cash Flow	46.58	57.34	65.62	81.14	106.92	121.48	145.54	174.37	208.92	250.30
Operating Cash Flow (%)
Capital Expenditure	-46.03	-61.29	-3.48	-152.70	-620.79	-244.31	-292.71	-350.70	-420.17	-503.40
Capital Expenditure (%)
Free Cash Flow	0.55	-3.95	62.14	-71.56	-513.87	-122.84	-147.17	-176.32	-211.25	-253.10

Weighted Average Cost Of Capital

Share price	$ 5.845
Beta	0.925
Diluted Shares Outstanding	234.32
Cost of Debt
Tax Rate	10.72
After-tax Cost of Debt	3.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.886
Total Debt	499.55
Total Equity	1,369.59
Total Capital	1,869.14
Debt Weighting	26.73
Equity Weighting	73.27
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	73.15	89.43	93.02	114.86	148.73	178.20	213.49	255.79	306.46	367.17
Operating Cash Flow	46.58	57.34	65.62	81.14	106.92	121.48	145.54	174.37	208.92	250.30
Capital Expenditure	-46.03	-61.29	-3.48	-152.70	-620.79	-244.31	-292.71	-350.70	-420.17	-503.40
Free Cash Flow	0.55	-3.95	62.14	-71.56	-513.87	-122.84	-147.17	-176.32	-211.25	-253.10
WACC
PV LFCF						-108.10	-121.49	-136.55	-153.47	-172.48
SUM PV LFCF										-737.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.60
Free cash flow (t + 1)	-258.16
Terminal Value	-5,612.21
Present Value of Terminal Value	-4,077.07

Intrinsic Value

Enterprise Value	-4,814.83
Net Debt	492.52
Equity Value	-5,307.35
Shares Outstanding	234.32
Equity Value Per Share	-22.65