Finance Assignment - New Earth Mining
AmazingExpert
finance-2.xlsmCash Flows
| x mln USD | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
| Revenue: 2 million @ 80 USD | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | 160.0 | |
| Mining costs | 28.8 | 28.8 | 28.8 | 30.4 | 30.4 | 30.4 | 33.6 | 33.6 | 33.6 | 38.4 | 38.4 | 38.4 | 38.4 | 38.4 | 38.4 | |
| Smelting, Refining, Freight | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | 48.0 | |
| Operating Profit | 83.2 | 83.2 | 83.2 | 81.6 | 81.6 | 81.6 | 78.4 | 78.4 | 78.4 | 73.6 | 73.6 | 73.6 | 73.6 | 73.6 | 73.6 | |
| Depreciation | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | 12.0 | |
| EBIT | 71.2 | 71.2 | 71.2 | 69.6 | 69.6 | 69.6 | 66.4 | 66.4 | 66.4 | 61.6 | 61.6 | 61.6 | 61.6 | 61.6 | 61.6 | |
| Tax | 35% | 24.9 | 24.9 | 24.9 | 24.4 | 24.4 | 24.4 | 23.2 | 23.2 | 23.2 | 21.6 | 21.6 | 21.6 | 21.6 | 21.6 | 21.6 |
| Net Income | 46.3 | 46.3 | 46.3 | 45.2 | 45.2 | 45.2 | 43.2 | 43.2 | 43.2 | 40.0 | 40.0 | 40.0 | 40.0 | 40.0 | 40.0 | |
| Free Cash Flow | 58.3 | 58.3 | 58.3 | 57.2 | 57.2 | 57.2 | 55.2 | 55.2 | 55.2 | 52.0 | 52.0 | 52.0 | 52.0 | 52.0 | 52.0 |
Debt
| x mln USD | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||
| Capital Takedown Schedule | |||||||||||||||||||
| Senior Secured Debt (3%) | 10.0 | 50.0 | |||||||||||||||||
| Senior Unsecured Debt (4%) | 10.0 | 30.0 | |||||||||||||||||
| Senior Subordinated Debt (5%) | 60.0 | - 0 | |||||||||||||||||
| Equity | 40.0 | ||||||||||||||||||
| Total | 80.0 | 120.0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | ||
| Loan Principal Repayment Schedule | |||||||||||||||||||
| Senior Secured Debt (3%) | - 0 | 8.5 | 8.1 | 8.5 | 8.2 | 7.8 | 7.1 | 6.1 | 5.7 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 60.0 | |||
| Senior Unsecured Debt (4%) | - 0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 40.0 | |||
| Senior Subordinated Debt (5%) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 60.0 | - 0 | - 0 | - 0 | - 0 | - 0 | 60.0 | |||
| Total | - 0 | 13.5 | 13.1 | 13.5 | 13.2 | 12.8 | 12.1 | 11.1 | 10.7 | 60.0 | - 0 | - 0 | - 0 | - 0 | - 0 | 160.0 |
Market Rates
| S.A. | U.S. | World | |
| interest rates | |||
| 3 month | 5.11% | 0.10% | |
| 6 month | 5.40% | 0.12% | |
| 1 year | 5.60% | 0.15% | |
| 2 year | 6.09% | 0.27% | |
| 3 year | 6.31% | 0.43% | |
| 5 year | 7.12% | 0.90% | |
| 10 year | 2.07% | ||
| Betas | |||
| Mining & Metals | 1.54 | ||
| Steel | 1.28 | ||
| Precious Metals | 1.00 | ||
| Stock Market | |||
| Equity Premium | 7.2% | 6.4% | 5.0% |
| Stdev | 19.6% | 20.5% | 15.5% |
| Exchange rate | 9.1732 | 0.1090 | |
| volatility USD/ZAR | 12.0% | 12.0% | |
| Iron market | $ 101.00 | ||
| volatility iron | 11.0% |
