Discounted Cash Flow (DCF) Analysis Unlevered
Sandstorm Gold Ltd. (SAND)
$5.585
+0.01 (+0.27%)
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 | 73.15 | 89.43 | 93.02 | 114.86 | 148.73 | 178.20 | 213.49 | 255.79 | 306.46 | 367.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 10.37 | 26.51 | 26.38 | 83.17 | 165.20 | 91.11 | 109.16 | 130.79 | 156.69 | 187.74 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 91.11 | 109.16 | 130.79 | 156.69 | 187.74 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| 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 | 19.83 | 17.77 | 115.63 | 16.17 | 10.80 | 68.65 | 82.24 | 98.54 | 118.06 | 141.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 6.87 | 7.61 | 8.01 | 12.14 | 21.39 | 18.34 | 21.98 | 26.33 | 31.55 | 37.80 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 4.98 | 3.87 | 3.43 | 7.35 | 3.81 | 8.47 | 10.15 | 12.16 | 14.57 | 17.46 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -46.03 | -61.29 | -3.48 | -152.70 | -620.79 | -244.31 | -292.71 | -350.70 | -420.17 | -503.40 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 5.585 |
|---|---|
| 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 | 1,308.67 |
| Total Capital | 1,808.21 |
| Debt Weighting | 27.63 |
| Equity Weighting | 72.37 |
| 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 | 73.15 | 89.43 | 93.02 | 114.86 | 148.73 | 178.20 | 213.49 | 255.79 | 306.46 | 367.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 10.37 | 26.51 | 26.38 | 83.17 | 165.20 | 91.11 | 109.16 | 130.79 | 156.69 | 187.74 |
| EBIT | - | - | - | - | - | 91.11 | 109.16 | 130.79 | 156.69 | 187.74 |
| Tax Rate | 32.54% | 28.73% | 43.08% | 38.42% | 10.72% | 30.70% | 30.70% | 30.70% | 30.70% | 30.70% |
| EBIAT | - | - | - | - | - | 63.14 | 75.65 | 90.64 | 108.59 | 130.10 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | -0.74 | -0.40 | -4.13 | -9.25 | 3.05 | -3.63 | -4.35 | -5.22 | -6.25 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -1.11 | -0.43 | 3.91 | -3.54 | 4.67 | 1.68 | 2.01 | 2.41 | 2.89 |
| Capital Expenditure | -46.03 | -61.29 | -3.48 | -152.70 | -620.79 | -244.31 | -292.71 | -350.70 | -420.17 | -503.40 |
| UFCF | - | - | - | - | - | -173.45 | -219.01 | -262.40 | -314.38 | -376.66 |
| WACC | ||||||||||
| PV UFCF | -162.78 | -192.88 | -216.86 | -243.83 | -274.14 | |||||
| SUM PV UFCF | -1,090.48 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.56 |
| Free cash flow (t + 1) | -384.19 |
| Terminal Value | -8,425.26 |
| Present Value of Terminal Value | -6,132.14 |
Intrinsic Value
| Enterprise Value | -7,222.63 |
|---|---|
| Net Debt | 492.52 |
| Equity Value | -7,715.14 |
| Shares Outstanding | 234.32 |
| Equity Value Per Share | -32.93 |