Discounted Cash Flow (DCF) Analysis Levered

Sandstorm Gold Ltd. (SSL.TO)

$7.81

-0.20 (-2.50%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.09 | 7.81 | 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	68.28	73.15	89.43	93.02	114.86	131.20	149.85	171.17	195.51	223.32
Revenue (%)
Operating Cash Flow	44.77	46.58	57.34	65.62	81.14	87.78	100.27	114.53	130.82	149.42
Operating Cash Flow (%)
Capital Expenditure	-4.41	-46.03	-61.29	-3.48	-152.70	-72.05	-82.30	-94	-107.37	-122.64
Capital Expenditure (%)
Free Cash Flow	40.36	0.55	-3.95	62.14	-71.56	15.73	17.97	20.53	23.44	26.78

Weighted Average Cost Of Capital

Share price	$ 7.81
Beta	0.907
Diluted Shares Outstanding	197.82
Cost of Debt
Tax Rate	38.42
After-tax Cost of Debt	50.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.800
Total Debt	2.58
Total Equity	1,545
Total Capital	1,547.58
Debt Weighting	0.17
Equity Weighting	99.83
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	68.28	73.15	89.43	93.02	114.86	131.20	149.85	171.17	195.51	223.32
Operating Cash Flow	44.77	46.58	57.34	65.62	81.14	87.78	100.27	114.53	130.82	149.42
Capital Expenditure	-4.41	-46.03	-61.29	-3.48	-152.70	-72.05	-82.30	-94	-107.37	-122.64
Free Cash Flow	40.36	0.55	-3.95	62.14	-71.56	15.73	17.97	20.53	23.44	26.78
WACC
PV LFCF						12.53	13.27	14.05	14.88	15.76
SUM PV LFCF										82.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.87
Free cash flow (t + 1)	27.31
Terminal Value	465.32
Present Value of Terminal Value	318.60

Intrinsic Value

Enterprise Value	400.63
Net Debt	-13.59
Equity Value	414.22
Shares Outstanding	197.82
Equity Value Per Share	2.09