Nucor

Nucor Corporation
Valuation Analysis of Thin-Slab Caster Mill
Change the Red Numbers Only:
Key Assumptions in valuation of mill:
Operating rate after 1992
Price per ton in 1989
Production Cost in 1989
Weighted average cost of capital
Salvage value of mill in 2000

85%
$325
250
10%
$0

Price trend per year after 1989

Experience effect on costs
b=

-3%
0.9
0.15

Valuation Analysis of Mill

1987
Tons sold (Thousands
0
Cumulative Volume produced
Price per ton
0
Cash cost per ton
0

0
0

1989
50
50
325
250

1990
400
450
317
250

1991
650
1100
309
218

1992
850
1950
301
200

1993
850
2800
294
189

1994
850
3650
286
182

1995
850
4500
279
176

1996
850
5350
272
172

1997
850
6200
265
168

1998
850
7050
259
165

1999
850
7900
252
162

2000
850
8750
246
159

0
0
0
0
0
0
0
0
0
0
0

16.3
12.5
22.5
-18.8
-1.9
15
-31.9
-10.8
-21.0
22.5
1.5

126.8
100.0
22.5
4.3
0.4
15
-11.2
-3.8
-7.4
22.5
15.1

200.8
141.9
22.5
36.5
3.6
0
32.8
11.2
21.7
22.5
44.2

256.0
170.0
22.5
63.5
6.4
0
57.2
19.4
37.7
22.5
60.2

249.6
160.9
22.5
66.2
6.6
0
59.6
20.3
39.3
22.5
61.8

243.4
154.6
22.5
66.3
6.6
0
59.7
20.3
39.4
22.5
61.9

237.3
149.7
22.5
65.1
6.5
0
58.6
19.9
38.7
22.5
61.2

231.4
145.9
22.5
63.0
6.3
0
56.7
19.3
37.4
22.5
59.9

225.6
142.6
22.5
60.5
6.0
0
54.4
18.5
35.9
22.5
58.4

220.0
139.9
22.5
57.6
5.8
0
51.8
17.6
34.2
22.5
56.7

214.5
137.5
22.5
54.5
5.4
0
49.0
16.7
32.4
22.5
54.9

209.1
135.3
22.5
51.2
5.1
0
46.1
15.7
30.4
22.5
52.9

0
0
-10
0
-10

0
0
-140
0
-140

1.5
-1.6
-130
0
-130.2

15.1
-11.1
0
0
4.1

44.2
-7.4
0
0
36.8

60.2
-5.5
0
0
54.7

61.8
0.6
0
0
62.5

61.9
0.6
0
0
62.5

61.2
0.6
0
0
61.8

59.9
0.6
0
0
60.5

58.4
0.6
0
0
59.0

56.7
0.6
0
0
57.3

54.9
0.5
0
0
55.4

52.9
21.4
0
0
74.4

Net Present Value:

19.21

Experience

19.21
1
0.95
0.9
0.85
0.8

-0.05
(196.4)
(123.3)
(58.4)
(1.2)
49.2

-0.025
(118.7)
(45.7)
19.2
76.5
126.8

Price Trend
0
$
(28.4)
$
44.7
$
109.5
$
166.8
$
217.2

All numbers below are in $Millions

Revenues
0
Cash costs
0
Depreciation
0
Operating earnings
0
Profit sharing
0
Start-up costs
0
Pre-tax income
0
Tax
0
EBIAT
0
Depreciation
0
Cash flow ops
0
Cash flow ops
Invest NWC
CAPEX
Salvage Value
Cash flow to Capital

1988
0

$
$
$
$
$

$
$
$
$
$

Page 1

$
$
$
$
$

0.025
76.8
149.9
214.7
272.0
322.3

$
$
$
$
$

0.05
199.3
272.4
337.3
394.6
444.9