CMCL
Caledonia Mining Corporation PLC
Price:  
12.47 
USD
Volume:  
69,924.00
Jersey | Metals & Mining
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CMCL WACC - Weighted Average Cost of Capital

The WACC of Caledonia Mining Corporation PLC (CMCL) is 9.1%.

The Cost of Equity of Caledonia Mining Corporation PLC (CMCL) is 9.75%.
The Cost of Debt of Caledonia Mining Corporation PLC (CMCL) is 5.00%.

Range Selected
Cost of equity 8.40% - 11.10% 9.75%
Tax rate 41.10% - 42.70% 41.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.9% - 10.3% 9.1%
WACC

CMCL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.99 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.10%
Tax rate 41.10% 42.70%
Debt/Equity ratio 0.1 0.1
Cost of debt 5.00% 5.00%
After-tax WACC 7.9% 10.3%
Selected WACC 9.1%

CMCL'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 CMCL:

cost_of_equity (9.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.99) + 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.