Discounted Cash Flow (DCF) Analysis Unlevered
McEwen Mining Inc. (MUX)
$7.69
-0.46 (-5.64%)
All numbers are in Millions, Currency in USD
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 | 128.82 | 117.02 | 104.79 | 136.54 | 110.42 | 108.09 | 105.80 | 103.57 | 101.38 | 99.24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -31.22 | -38.05 | -123.19 | -32.28 | -47.95 | -52.18 | -51.08 | -50 | -48.94 | -47.91 |
| EBITDA (%) | ||||||||||
| EBIT | -47.64 | -63.59 | -146.28 | -57.83 | -67.48 | -72.28 | -70.76 | -69.26 | -67.80 | -66.37 |
| EBIT (%) | ||||||||||
| Depreciation | 16.42 | 25.54 | 23.09 | 25.55 | 19.53 | 20.11 | 19.68 | 19.27 | 18.86 | 18.46 |
| 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 | 18.89 | 48.34 | 20.84 | 56.09 | 40.92 | 33.29 | 32.59 | 31.90 | 31.22 | 30.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1.06 | 2.66 | 5.69 | 10.59 | 2.87 | 4.08 | 3.99 | 3.91 | 3.83 | 3.75 |
| Account Receivables (%) | ||||||||||
| Inventories | 22.04 | 38.38 | 26.96 | 15.79 | 31.73 | 25.06 | 24.53 | 24.02 | 23.51 | 23.01 |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | 42.52 | 41.62 | 40.74 | 39.88 | 39.04 | 38.22 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -81.32 | -29.71 | -13.37 | -34.89 | -24.19 | -32.15 | -31.47 | -30.81 | -30.16 | -29.52 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 7.69 |
|---|---|
| Beta | 1.285 |
| Diluted Shares Outstanding | 47.43 |
| Cost of Debt | |
| Tax Rate | -0.98 |
| After-tax Cost of Debt | 11.73% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.849 |
| Total Debt | 66.39 |
| Total Equity | 364.71 |
| Total Capital | 431.10 |
| Debt Weighting | 15.40 |
| Equity Weighting | 84.60 |
| 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 | 128.82 | 117.02 | 104.79 | 136.54 | 110.42 | 108.09 | 105.80 | 103.57 | 101.38 | 99.24 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -31.22 | -38.05 | -123.19 | -32.28 | -47.95 | -52.18 | -51.08 | -50 | -48.94 | -47.91 |
| EBIT | -47.64 | -63.59 | -146.28 | -57.83 | -67.48 | -72.28 | -70.76 | -69.26 | -67.80 | -66.37 |
| Tax Rate | 5.81% | 6.04% | 0.90% | 11.66% | -0.98% | 4.69% | 4.69% | 4.69% | 4.69% | 4.69% |
| EBIAT | -44.87 | -59.75 | -144.96 | -51.08 | -68.14 | -68.89 | -67.44 | -66.02 | -64.62 | -63.26 |
| Depreciation | 16.42 | 25.54 | 23.09 | 25.55 | 19.53 | 20.11 | 19.68 | 19.27 | 18.86 | 18.46 |
| Accounts Receivable | - | -1.60 | -3.03 | -4.90 | 7.72 | -1.21 | 0.09 | 0.08 | 0.08 | 0.08 |
| Inventories | - | -16.34 | 11.41 | 11.17 | -15.94 | 6.67 | 0.53 | 0.52 | 0.51 | 0.50 |
| Accounts Payable | - | - | - | - | - | -0.90 | -0.88 | -0.86 | -0.84 | -0.82 |
| Capital Expenditure | -81.32 | -29.71 | -13.37 | -34.89 | -24.19 | -32.15 | -31.47 | -30.81 | -30.16 | -29.52 |
| UFCF | -109.77 | -81.85 | -126.86 | -54.15 | -81.02 | -76.38 | -79.49 | -77.82 | -76.17 | -74.56 |
| WACC | ||||||||||
| PV UFCF | -69.35 | -65.53 | -58.24 | -51.76 | -46.01 | |||||
| SUM PV UFCF | -290.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.14 |
| Free cash flow (t + 1) | -76.06 |
| Terminal Value | -934.35 |
| Present Value of Terminal Value | -576.48 |
Intrinsic Value
| Enterprise Value | -867.36 |
|---|---|
| Net Debt | 26.60 |
| Equity Value | -893.97 |
| Shares Outstanding | 47.43 |
| Equity Value Per Share | -18.85 |