Eagle Royalties Stock Price Calculation

Assumptions:

Gold price: $4,000/oz
Silver price: $100/oz
FCF multiple: 20x
Shares outstanding: 30 million (estimate)
NSR portfolio production:
- Gold: 100,000 oz/year at 1% NSR
- Silver: 500,000 oz/year at 1% NSR
FCF margin: 85%

Step 1: NSR Revenue Calculation

Gold Revenue: 100,000 oz × $4,000/oz × 1% = $4,000,000
Silver Revenue: 500,000 oz × $100/oz × 1% = $500,000
Total Revenue: $4,000,000 + $500,000 = $4,500,000

Step 2: Free Cash Flow (FCF)

FCF: $4,500,000 × 85% = $3,825,000

Step 3: Market Cap Calculation

Market Cap: $3,825,000 × 20 = $76,500,000

Step 4: Stock Price Calculation

Stock Price: $76,500,000 ÷ 30,000,000 = $2.55/share

Conclusion:

If gold reaches $4,000/oz and silver hits $100/oz, the estimated stock price for Eagle Royalties would be $2.55/share, assuming the above revenue and production scenario.

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Disclaimer

The user RockeTeller holds no position in CNSX:ER. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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