DPMLF - Dundee's DCF Model Results: Cheap Gold Mines And Buying Its Own Shares
- Dundee Precious Metals is a free cash flow generating mining business producing 0.28 million ounces of gold per year.
- The company expects to deliver 0.271-0.317 million ounces of gold in 2021, 0.240-0.28 million in 2022, and 0.265-0.310 million in 2023.
- With 0.28 million ounces of gold from 2024 to 2029 and $1800 per ounce of gold, I assumed a copper price of $3.72 per pound.
- If we assume declining capital expenditures of around $47-$110 million and a WACC of 9%, the sum of free cash flows would stand at $1.396 billion.
- It is quite likely that Dundee comes with beneficial news from its projects. If the company adds new mineral reserves, I would be expecting FCF expectations to increase.
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Dundee's DCF Model Results: Cheap Gold Mines, And Buying Its Own Shares