GSS.V WACC - Weighted Average Cost of Capital
The WACC of Gossan Resources Ltd (GSS.V) is 7.3%.
| Range | Selected | |
| Cost of equity | 7.2% - 14.7% | 10.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 9.2% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.65 | 1.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 14.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 9.2% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GSS.V | Gossan Resources Ltd | 1.07 | -1.74 | -0.98 |
| BAY.V | Aston Bay Holdings Ltd | 0.05 | 1.26 | 1.22 |
| CBA.V | Champion Bear Resources Ltd | 0.17 | -1.58 | -1.41 |
| CCD.V | Cascadero Copper Corp | 0.03 | -1.56 | -1.53 |
| GOM.V | Golden Dawn Minerals Inc | 0.32 | 1.64 | 1.33 |
| IMA.V | I Minerals Inc | 56.34 | 1.09 | 0.03 |
| KMAX.V | OrganiMax Nutrient Corp | 0.01 | 1.05 | 1.04 |
| LBY.V | Liberty One Lithium Corp | 0.03 | 2.05 | 2.01 |
| PSE.CN | Pasinex Resources Ltd | 0.29 | -1.54 | -1.27 |
| RMD.V | Richmond Minerals Inc | 0.55 | 0.62 | 0.44 |
| RTH.V | Rathdowney Resources Ltd | 0.83 | 1.99 | 1.23 |
| Low | High | |
| Unlevered beta | 0.03 | 1.04 |
| Relevered beta | 0.48 | 1.93 |
| Adjusted relevered beta | 0.65 | 1.62 |
GSS.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 GSS.V:
cost_of_equity (10.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.65) + 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.