Discounted Cash Flow (DCF) Analysis Unlevered

Kirkland Lake Gold Ltd. (KL)

$38.92

-0.09 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 289.68 | 38.92 | undervalue

Operating Data

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 (%)
EBITDA	84.21	329.42	529.52	968.02	1,156.23	1,873.39	2,975.31	4,725.40	7,504.88	11,919.26
EBITDA (%)
EBIT	84.21	180.77	395.81	799.10	773.05	1,264.82	2,008.79	3,190.36	5,066.93	8,047.31
EBIT (%)
Depreciation	-	148.66	133.72	168.92	383.18	608.57	966.53	1,535.04	2,437.95	3,871.96
Depreciation (%)

Balance Sheet Data

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Total Cash	234.90	231.60	332.23	707.21	847.64	1,646.63	2,615.18	4,153.43	6,596.48	10,476.54
Total Cash (%)
Account Receivables	7.48	15.67	20.15	30.15	23.16	72.38	114.95	182.56	289.94	460.49
Account Receivables (%)
Inventories	40.93	41.43	40.09	47.69	149.20	230.55	366.16	581.54	923.61	1,466.87
Inventories (%)
Accounts Payable	57.90	106.42	130.40	196.47	350.25	556.26	883.46	1,403.11	2,228.41	3,539.17
Accounts Payable (%)
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 (%)

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	6.023
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

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
EBITDA	84.21	329.42	529.52	968.02	1,156.23	1,873.39	2,975.31	4,725.40	7,504.88	11,919.26
EBIT	84.21	180.77	395.81	799.10	773.05	1,264.82	2,008.79	3,190.36	5,066.93	8,047.31
Tax Rate	42.53%	32.46%	30.53%	29.83%	31.66%	33.40%	33.40%	33.40%	33.40%	33.40%
EBIAT	48.40	122.08	274.98	560.73	528.27	842.34	1,337.81	2,124.71	3,374.47	5,359.33
Depreciation	-	148.66	133.72	168.92	383.18	608.57	966.53	1,535.04	2,437.95	3,871.96
Accounts Receivable	-	-8.19	-4.48	-10	6.99	-49.21	-42.57	-67.61	-107.38	-170.54
Inventories	-	-0.51	1.34	-7.60	-101.52	-81.35	-135.61	-215.38	-342.06	-543.27
Accounts Payable	-	48.52	23.98	66.07	153.78	206.02	327.19	519.65	825.31	1,310.76
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
UFCF	-25.29	178.73	154.33	321.70	387.97	568.58	932.20	1,480.53	2,351.37	3,734.45
WACC
PV UFCF						536.25	829.19	1,242.02	1,860.40	2,786.65
SUM PV UFCF										7,254.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.03
Free cash flow (t + 1)	3,809.14
Terminal Value	94,519.65
Present Value of Terminal Value	70,530.72

Intrinsic Value

Enterprise Value	77,785.23
Net Debt	-821.47
Equity Value	78,606.70
Shares Outstanding	271.36
Equity Value Per Share	289.68