KNT.TO WACC - Weighted Average Cost of Capital

The WACC of K92 Mining Inc (KNT.TO) is 10.7%.

The Cost of Equity of K92 Mining Inc (KNT.TO) is 10.65%.

The Cost of Debt of K92 Mining Inc (KNT.TO) is 20.30%.

	Range	Selected
Cost of equity	9.30% - 12.00%	10.65%
Tax rate	36.10% - 38.20%	37.15%
Cost of debt	4.00% - 36.60%	20.30%
WACC	9.1% - 12.3%	10.7%

WACC

KNT.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.21	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.00%

Tax rate	36.10%	38.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	36.60%

After-tax WACC	9.1%	12.3%


Selected WACC	10.7%

KNT.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 KNT.TO:

cost_of_equity (10.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.21) + 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.