IAU.TO WACC - Weighted Average Cost of Capital

The WACC of I-80 Gold Corp (IAU.TO) is 9.5%.

The Cost of Equity of I-80 Gold Corp (IAU.TO) is 10.40%.

The Cost of Debt of I-80 Gold Corp (IAU.TO) is 7.00%.

	Range	Selected
Cost of equity	9.00% - 11.80%	10.40%
Tax rate	5.40% - 11.10%	8.25%
Cost of debt	7.00% - 7.00%	7.00%
WACC	8.5% - 10.6%	9.5%

WACC

IAU.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.14	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.80%

Tax rate	5.40%	11.10%
Debt/Equity ratio	0.28	0.28
Cost of debt	7.00%	7.00%

After-tax WACC	8.5%	10.6%


Selected WACC	9.5%

IAU.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 IAU.TO:

cost_of_equity (10.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.14) + 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.