Discounted Cash Flow (DCF) Analysis Unlevered

Dundee Precious Metals Inc. (DPM.TO)

$9.5

-0.05 (-0.52%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.55 | 9.5 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	377.11	419.06	609.56	641.44	569.79	641.94	723.21	814.77	917.93	1,034.15
Revenue (%)
EBITDA	107.74	32.76	318.70	347	162.43	219.90	247.74	279.10	314.44	354.25
EBITDA (%)
EBIT	48.79	-49.36	218.49	250.80	61.18	111.49	125.61	141.51	159.43	179.61
EBIT (%)
Depreciation	58.94	82.13	100.21	96.21	101.25	108.41	122.13	137.59	155.01	174.64
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	17.04	23.44	149.53	334.38	433.18	209.01	235.47	265.28	298.87	336.71
Total Cash (%)
Account Receivables	22.80	32.32	76.42	118.72	116.84	83.85	94.47	106.43	119.90	135.08
Account Receivables (%)
Inventories	34.10	38.03	43.05	49.63	45.81	52.58	59.24	66.74	75.19	84.71
Inventories (%)
Accounts Payable	13.78	15.84	13.11	20.38	22.02	21.35	24.05	27.10	30.53	34.39
Accounts Payable (%)
Capital Expenditure	-99.67	-68.98	-37.56	-64.15	-49.07	-86.87	-97.87	-110.26	-124.22	-139.95
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 9.5
Beta	1.161
Diluted Shares Outstanding	191.16
Cost of Debt
Tax Rate	38.85
After-tax Cost of Debt	10.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.226
Total Debt	14.58
Total Equity	1,816
Total Capital	1,830.58
Debt Weighting	0.80
Equity Weighting	99.20
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	377.11	419.06	609.56	641.44	569.79	641.94	723.21	814.77	917.93	1,034.15
EBITDA	107.74	32.76	318.70	347	162.43	219.90	247.74	279.10	314.44	354.25
EBIT	48.79	-49.36	218.49	250.80	61.18	111.49	125.61	141.51	159.43	179.61
Tax Rate	14.19%	-24.40%	10.06%	8.42%	38.85%	9.42%	9.42%	9.42%	9.42%	9.42%
EBIAT	41.87	-61.41	196.51	229.68	37.42	100.99	113.77	128.18	144.41	162.69
Depreciation	58.94	82.13	100.21	96.21	101.25	108.41	122.13	137.59	155.01	174.64
Accounts Receivable	-	-9.52	-44.10	-42.30	1.88	32.99	-10.62	-11.96	-13.47	-15.18
Inventories	-	-3.93	-5.02	-6.58	3.81	-6.77	-6.66	-7.50	-8.45	-9.52
Accounts Payable	-	2.06	-2.73	7.27	1.65	-0.68	2.70	3.05	3.43	3.86
Capital Expenditure	-99.67	-68.98	-37.56	-64.15	-49.07	-86.87	-97.87	-110.26	-124.22	-139.95
UFCF	1.14	-59.66	207.33	220.13	96.94	148.06	123.46	139.09	156.70	176.54
WACC
PV UFCF						135.55	103.48	106.73	110.08	113.54
SUM PV UFCF										569.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.23
Free cash flow (t + 1)	180.07
Terminal Value	2,490.65
Present Value of Terminal Value	1,601.78

Intrinsic Value

Enterprise Value	2,171.15
Net Debt	-418.59
Equity Value	2,589.75
Shares Outstanding	191.16
Equity Value Per Share	13.55