ANX.TO WACC - Weighted Average Cost of Capital
The WACC of Anaconda Mining Inc (ANX.TO) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.9% | 6.7% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 6.2% - 7.0% | 6.6% |
| WACC | 5.5% - 7.9% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.45 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.9% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 6.2% | 7.0% |
| After-tax WACC | 5.5% | 7.9% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ANX.TO | Anaconda Mining Inc | 0.02 | 2.07 | 2.05 |
| DYNR | Dynaresource Inc | 0.27 | 0.48 | 0.4 |
| ELY.V | Ely Gold Royalties Inc | 1.13 | 0.78 | 0.43 |
| GG.V | Galane Gold Ltd | 0.16 | 1.13 | 1.01 |
| HRT.TO | Harte Gold Corp | 5.45 | 1.02 | 0.2 |
| MGZ.H.V | Mangazeya Mining Ltd | 5.31 | -0.14 | -0.03 |
| MIRL.CN | Minera IRL Ltd | 14.91 | -0.43 | -0.04 |
| MMY.V | Monument Mining Ltd | 0 | 0.78 | 0.77 |
| PGDC.V | Patagonia Gold Corp | 1.68 | 2.07 | 0.92 |
| XIA.V | Xiana Mining Inc | 3.03 | 0.44 | 0.14 |
| Low | High | |
| Unlevered beta | 0.32 | 0.57 |
| Relevered beta | 0.18 | 0.43 |
| Adjusted relevered beta | 0.45 | 0.62 |
ANX.TO's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for ANX.TO:
cost_of_equity (6.70%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.45) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.