Discounted Cash Flow (DCF) Analysis Unlevered
Sandstorm Gold Ltd. (SSL.TO)
$7.12
-0.20 (-2.73%)
All numbers are in Millions, Currency in USD
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 | 68.28 | 73.15 | 89.43 | 93.02 | 114.86 | 131.20 | 149.85 | 171.17 | 195.51 | 223.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 47.52 | 40.46 | 64.80 | 59.99 | 83.16 | 87.71 | 100.18 | 114.43 | 130.71 | 149.30 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 87.71 | 100.18 | 114.43 | 130.71 | 149.30 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| 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 | 30.79 | 19.83 | 17.77 | 115.63 | 21.17 | 61.61 | 70.37 | 80.38 | 91.81 | 104.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 7.57 | 6.87 | 7.61 | 8.01 | 12.14 | 12.64 | 14.44 | 16.49 | 18.84 | 21.51 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 6.44 | 4.98 | 3.87 | 3.43 | 7.35 | 8.04 | 9.19 | 10.49 | 11.98 | 13.69 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -4.41 | -46.03 | -61.29 | -3.48 | -152.70 | -72.05 | -82.30 | -94 | -107.37 | -122.64 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 7.12 |
|---|---|
| Beta | 0.934 |
| Diluted Shares Outstanding | 197.82 |
| Cost of Debt | |
| Tax Rate | 38.42 |
| After-tax Cost of Debt | 50.98% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.009 |
| Total Debt | 2.58 |
| Total Equity | 1,408.50 |
| Total Capital | 1,411.08 |
| Debt Weighting | 0.18 |
| Equity Weighting | 99.82 |
| 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 | 68.28 | 73.15 | 89.43 | 93.02 | 114.86 | 131.20 | 149.85 | 171.17 | 195.51 | 223.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 47.52 | 40.46 | 64.80 | 59.99 | 83.16 | 87.71 | 100.18 | 114.43 | 130.71 | 149.30 |
| EBIT | - | - | - | - | - | 87.71 | 100.18 | 114.43 | 130.71 | 149.30 |
| Tax Rate | 27.90% | 32.54% | 28.73% | 43.08% | 38.42% | 34.13% | 34.13% | 34.13% | 34.13% | 34.13% |
| EBIAT | - | - | - | - | - | 57.77 | 65.99 | 75.37 | 86.09 | 98.34 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | 0.70 | -0.74 | -0.40 | -4.13 | -0.50 | -1.80 | -2.05 | -2.35 | -2.68 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -1.46 | -1.11 | -0.43 | 3.91 | 0.69 | 1.14 | 1.31 | 1.49 | 1.70 |
| Capital Expenditure | -4.41 | -46.03 | -61.29 | -3.48 | -152.70 | -72.05 | -82.30 | -94 | -107.37 | -122.64 |
| UFCF | - | - | - | - | - | -14.08 | -16.96 | -19.38 | -22.13 | -25.28 |
| WACC | ||||||||||
| PV UFCF | -13.03 | -14.52 | -15.34 | -16.21 | -17.13 | |||||
| SUM PV UFCF | -76.24 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.09 |
| Free cash flow (t + 1) | -25.79 |
| Terminal Value | -423.43 |
| Present Value of Terminal Value | -286.98 |
Intrinsic Value
| Enterprise Value | -363.22 |
|---|---|
| Net Debt | -13.59 |
| Equity Value | -349.63 |
| Shares Outstanding | 197.82 |
| Equity Value Per Share | -1.77 |