GRMC WACC - Weighted Average Cost of Capital
The WACC of Goldrich Mining Co (GRMC) is 4.3%.
| Range | Selected | |
| Cost of equity | 3.3% - 389.5% | 196.4% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 4.9% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -26.32 | 47.17 |
| Additional risk adjustments | 120.5% | 121.0% |
| Cost of equity | 3.3% | 389.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 301.69 | 301.69 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 4.9% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GRMC | Goldrich Mining Co | 301.69 | -27.93 | -0.13 |
| ARQ.CN | Argo Gold Inc | 0.19 | 0.23 | 0.2 |
| ATX.V | Atex Resources Inc | 0.03 | 1.39 | 1.36 |
| EMR.V | Emgold Mining Corp | 0.02 | 1.67 | 1.65 |
| GLB.V | Goldbank Mining Corp | 0 | 1.22 | 1.22 |
| PMC.CN | Peloton Minerals Corp | 0.03 | -0.12 | -0.12 |
| PTX.CN | Platinex Inc | 0.02 | -1.84 | -1.81 |
| TEM.V | Tembo Gold Corp | 0.02 | -0.28 | -0.27 |
| WAR.V | Warrior Gold Inc | 0 | 0.49 | 0.49 |
| WHY.V | West High Yield WHY Resources Ltd | 0.18 | -0.7 | -0.62 |
| XGC.V | Xali Gold Corp | 0.01 | -0.48 | -0.47 |
| Low | High | |
| Unlevered beta | -0.13 | 0.2 |
| Relevered beta | -39.78 | 69.91 |
| Adjusted relevered beta | -26.32 | 47.17 |
GRMC'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 GRMC:
cost_of_equity (196.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-26.32) + risk_adjustments (120.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.