FF.TO WACC - Weighted Average Cost of Capital

The WACC of First Mining Gold Corp (FF.TO) is 9.5%.

The Cost of Equity of First Mining Gold Corp (FF.TO) is 9.50%.

The Cost of Debt of First Mining Gold Corp (FF.TO) is 5.00%.

	Range	Selected
Cost of equity	7.60% - 11.40%	9.50%
Tax rate	3.50% - 7.50%	5.50%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.6% - 11.4%	9.5%

WACC

FF.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.88	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	11.40%

Tax rate	3.50%	7.50%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	7.6%	11.4%


Selected WACC	9.5%

FF.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 FF.TO:

cost_of_equity (9.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.