IZN.V WACC - Weighted Average Cost of Capital
The WACC of InZinc Mining Ltd (IZN.V) is 8.7%.
| Range | Selected | |
| Cost of equity | 11.7% - 15.9% | 13.8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 9.8% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.54 | 1.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.7% | 15.9% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 9.8% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IZN.V | InZinc Mining Ltd | 0.8 | -1.38 | -0.87 |
| 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 |
| MFM.V | Marifil Mines Ltd | 0.06 | 1.4 | 1.35 |
| PSE.CN | Pasinex Resources Ltd | 0.27 | -1.6 | -1.34 |
| QZM.V | Quartz Mountain Resources Ltd | 0 | 0.51 | 0.51 |
| VZZ.V | Val d Or Mining Corp | 0.08 | 1.13 | 1.07 |
| Z.V | Zinc One Resources Inc | 0.13 | 1.97 | 1.8 |
| Low | High | |
| Unlevered beta | 0.83 | 1.17 |
| Relevered beta | 1.81 | 2.21 |
| Adjusted relevered beta | 1.54 | 1.81 |
IZN.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 IZN.V:
cost_of_equity (13.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.54) + 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.