AUN.V WACC - Weighted Average Cost of Capital

The WACC of Aurcana Silver Corp (AUN.V) is 7.0%.

The Cost of Equity of Aurcana Silver Corp (AUN.V) is 13.30%.

The Cost of Debt of Aurcana Silver Corp (AUN.V) is 8.45%.

	Range	Selected
Cost of equity	11.50% - 15.10%	13.30%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	7.00% - 9.90%	8.45%
WACC	5.9% - 8.1%	7.0%

WACC

AUN.V WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.5%	6.5%
Adjusted beta	1.33	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	15.10%

Tax rate	26.20%	27.00%
Debt/Equity ratio	7.51	7.51
Cost of debt	7.00%	9.90%

After-tax WACC	5.9%	8.1%


Selected WACC	7.0%

AUN.V'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 AUN.V:

cost_of_equity (13.30%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (1.33) + 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.