Discounted Cash Flow (DCF) Analysis Unlevered

Serabi Gold plc (SBI.TO)

$0.5

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.26 | 0.5 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	48.45	43.26	59.95	55.83	63.14	68.52	74.36	80.70	87.58	95.04
Revenue (%)
EBITDA	9.37	6.14	17.15	15.23	19.48	16.48	17.89	19.41	21.06	22.86
EBITDA (%)
EBIT	-1.10	-3.14	8.12	10.10	13.43	5.95	6.45	7	7.60	8.25
EBIT (%)
Depreciation	10.47	9.28	9.02	5.13	6.05	10.54	11.43	12.41	13.46	14.61
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	4.09	9.22	14.23	6.60	12.22	11.60	12.59	13.67	14.83	16.10
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	6.93	8.51	6.58	6.98	6.97	9.39	10.19	11.06	12	13.02
Inventories (%)
Accounts Payable	2.80	2.45	2.71	3.61	5.62	4.30	4.66	5.06	5.49	5.96
Accounts Payable (%)
Capital Expenditure	-6.51	-15.02	-12.98	-9.89	-13.74	-14.98	-16.25	-17.64	-19.14	-20.77
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 0.5
Beta	1.633
Diluted Shares Outstanding	76.73
Cost of Debt
Tax Rate	25.52
After-tax Cost of Debt	7.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.089
Total Debt	0.74
Total Equity	38.36
Total Capital	39.10
Debt Weighting	1.88
Equity Weighting	98.12
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	48.45	43.26	59.95	55.83	63.14	68.52	74.36	80.70	87.58	95.04
EBITDA	9.37	6.14	17.15	15.23	19.48	16.48	17.89	19.41	21.06	22.86
EBIT	-1.10	-3.14	8.12	10.10	13.43	5.95	6.45	7	7.60	8.25
Tax Rate	-37.38%	-19.14%	38.09%	17.16%	25.52%	4.85%	4.85%	4.85%	4.85%	4.85%
EBIAT	-1.51	-3.75	5.03	8.37	10	5.66	6.14	6.66	7.23	7.85
Depreciation	10.47	9.28	9.02	5.13	6.05	10.54	11.43	12.41	13.46	14.61
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-1.58	1.93	-0.40	0.01	-2.42	-0.80	-0.87	-0.94	-1.02
Accounts Payable	-	-0.35	0.25	0.91	2.01	-1.33	0.37	0.40	0.43	0.47
Capital Expenditure	-6.51	-15.02	-12.98	-9.89	-13.74	-14.98	-16.25	-17.64	-19.14	-20.77
UFCF	2.45	-11.41	3.26	4.11	4.33	-2.53	0.89	0.96	1.04	1.13
WACC
PV UFCF						-2.28	0.72	0.70	0.69	0.67
SUM PV UFCF										0.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.02
Free cash flow (t + 1)	1.15
Terminal Value	12.80
Present Value of Terminal Value	7.59

Intrinsic Value

Enterprise Value	8.09
Net Debt	-11.48
Equity Value	19.58
Shares Outstanding	76.73
Equity Value Per Share	0.26