DCF Tool

AEM

Agnico Eagle Mines Ltd – Gold Ore Mining
agnico eagle is a senior canadian gold mining company that has produced precious metals since 1957. its eight mines are located in canada, finland and mexico, with exploration and development activities in each of these regions as well as in the united states. the company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. agnico eagle has declared a cash dividend every year since 1983.
Analysis Results
Intrinsic Value $70.21
Latest Price $48.02
Relative Value 32% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 24.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.733 0.691
2024 0.91 0.808
2025 1.13 0.945
2026 1.4 1.11
2027 1.74 1.29
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 43.0 billion. This corresponds to a present value of 30.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.84 billion. Adding in the terminal value gives a total present value of 35.0 billion.

There are presently 498.0 million outstanding shares, so the intrinsic value per share is 70.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,180,059,000
Current Cash 658,625,000
Current Liabilities 946,422,000
Current Debt 136,466,000
Non-Cash Working Capital (NCWC) 711,478,000
Change in NCWC 103,989,000
EBIT 1,500,755,000
Tax Provision 445,174,000
Depreciation and Amortization 1,094,691,000
Capital Expenditure -1,538,237,000
Unlevered Free Cash Flow 562,234,999
Current Assets 1,302,388,000
Current Cash 191,074,000
Current Liabilities 761,813,000
Current Debt 257,988,000
Non-Cash Working Capital (NCWC) 607,489,000
Change in NCWC 261,610,000
EBIT 1,033,968,000
Tax Provision 360,400,000
Depreciation and Amortization 738,129,000
Capital Expenditure -867,684,000
Unlevered Free Cash Flow 753,538,657
Current Assets 1,247,188,000
Current Cash 406,463,000
Current Liabilities 515,698,000
Current Debt 20,852,000
Non-Cash Working Capital (NCWC) 345,879,000
Change in NCWC -32,582,000
EBIT 825,540,000
Tax Provision 255,958,000
Depreciation and Amortization 631,101,000
Capital Expenditure -759,342,000
Unlevered Free Cash Flow 389,426,220
Current Assets 1,193,560,000
Current Cash 414,154,000
Current Liabilities 775,638,000
Current Debt 374,693,000
Non-Cash Working Capital (NCWC) 378,461,000
Change in NCWC 49,982,000
EBIT 472,560,000
Tax Provision 265,576,000
Depreciation and Amortization 546,057,000
Capital Expenditure -882,664,000
Unlevered Free Cash Flow 16,050,798
Current Assets 1,072,452,000
Current Cash 384,438,000
Current Liabilities 361,449,000
Current Debt 1,914,000
Non-Cash Working Capital (NCWC) 328,479,000
Change in NCWC -35,974,000
EBIT 199,970,000
Tax Provision 67,649,000
Depreciation and Amortization 553,933,000
Capital Expenditure -1,089,100,000
Unlevered Free Cash Flow -371,171,000
Current Assets 1,461,534,000
Current Cash 766,672,000
Current Liabilities 333,821,000
Current Debt 3,412,000
Non-Cash Working Capital (NCWC) 364,453,000
Change in NCWC 63,173,000
EBIT 418,290,000
Tax Provision 98,494,000
Depreciation and Amortization 508,739,000
Capital Expenditure -874,153,000
Unlevered Free Cash Flow -4,282,020
Current Assets 1,230,179,000
Current Cash 640,708,000
Current Liabilities 423,622,000
Current Debt 135,431,000
Non-Cash Working Capital (NCWC) 301,280,000
Change in NCWC -77,206,000
EBIT 239,363,000
Tax Provision 109,637,000
Depreciation and Amortization 613,160,000
Capital Expenditure -516,050,000
Unlevered Free Cash Flow 161,513,355
Current Assets 829,425,000
Current Cash 163,457,000
Current Liabilities 311,522,000
Current Debt 24,040,000
Non-Cash Working Capital (NCWC) 378,486,000
Change in NCWC -36,606,000
EBIT 172,199,000
Tax Provision 58,045,000
Depreciation and Amortization 608,609,000
Capital Expenditure -449,758,000
Unlevered Free Cash Flow 173,476,640
Current Assets 908,060,000
Current Cash 238,626,000
Current Liabilities 328,666,000
Current Debt 74,324,000
Non-Cash Working Capital (NCWC) 415,092,000
Change in NCWC 24,779,000
EBIT 275,592,000
Tax Provision 106,168,000
Depreciation and Amortization 433,628,000
Capital Expenditure -475,412,000
Unlevered Free Cash Flow 103,890,157

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