GG.V WACC - Weighted Average Cost of Capital
The WACC of Galane Gold Ltd (GG.V) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.4% | 6.55% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.5% - 7.0% | 6.25% |
| WACC | 5.5% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.36 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.4% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.5% | 7.0% |
| After-tax WACC | 5.5% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GG.V | Galane Gold Ltd | 0.13 | 1.15 | 1.05 |
| DYNR | Dynaresource Inc | 0.3 | 0.13 | 0.11 |
| GGA.TO | Goldgroup Mining Inc | 2.61 | -0.76 | -0.26 |
| 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 | 14.92 | -0.43 | -0.04 |
| MMY.V | Monument Mining Ltd | 0 | 0.74 | 0.74 |
| PZG | Paramount Gold Nevada Corp | 0.38 | -0.01 | -0.01 |
| RBX.V | Robex Resources Inc | 0.06 | 0.07 | 0.07 |
| XIA.V | Xiana Mining Inc | 3.03 | 0.44 | 0.14 |
| Low | High | |
| Unlevered beta | 0.04 | 0.12 |
| Relevered beta | 0.04 | 0.13 |
| Adjusted relevered beta | 0.36 | 0.42 |
GG.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 GG.V:
cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.