What is IGLD.CN's Intrinsic value?

Golden Independence Mining Corp (IGLD.CN) Intrinsic Value Analysis

Executive Summary

As of June 18, 2025, Golden Independence Mining Corp's estimated intrinsic value ranges from $3.03 to $3.03 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $3.03 +327.4%

Is Golden Independence Mining Corp (IGLD.CN) undervalued or overvalued?

With the current market price at $0.71, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Golden Independence Mining Corp's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

Weighted Average Cost of Capital (WACC)

The cost of capital is a critical factor in valuation models, representing the required return for investors.

WACC Component Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta -0 1.39
Cost of equity 3.5% 13.6%
Cost of debt 5.0% 5.0%
Tax rate 25.9% 26.5%
Debt/Equity ratio 1 1
After-tax WACC 3.6% 8.6%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 8.6%
  • Long-term growth rate: 4.0%
  • Fair value: $-0.86 (-221.3% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 13.6% (Low) to 3.5% (High)
  • Long-term growth rate: 3.0% (Low) to 5.0% (High)
  • Fair value range: $(1) to $8
  • Selected fair value: $3.03 (327.4% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $11M
Enterprise Value $10M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 0.00
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.82

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Dividend Discount Model (Stable) 100% $0.46
Weighted Average 100% $3.03

Investment Conclusion

Based on our comprehensive valuation analysis, Golden Independence Mining Corp's weighted average intrinsic value is $3.03, which is approximately 327.4% above the current market price of $0.71.

Key investment considerations:

  • Overall financial health and market position

Given these factors, we believe Golden Independence Mining Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.