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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