The WACC of Minaurum Gold Inc (MGG.V) is 8.4%.
Range | Selected | |
Cost of equity | 10.0% - 16.2% | 13.1% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.8% - 9.9% | 8.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 1.2 | 1.86 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.0% | 16.2% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.8% | 9.9% |
Selected WACC | 8.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MGG.V | Minaurum Gold Inc | 0.8 | 3.07 | 1.94 |
ADZN.V | Adventus Mining Corp | 0.07 | -0.07 | -0.06 |
ARU.V | Aurania Resources Ltd | 0.34 | 0.03 | 0.03 |
CTGO | Contango ORE Inc | 0.28 | 0.77 | 0.64 |
CYP.V | Cypress Development Corp | 0 | 1.26 | 1.25 |
ELO.V | Eloro Resources Ltd | 0 | 1.5 | 1.5 |
FCC.V | First Cobalt Corp | 0.04 | 1.82 | 1.76 |
FPX.V | FPX Nickel Corp | 0 | 0.83 | 0.83 |
GENM.TO | Generation Mining Ltd | 0.02 | 1.45 | 1.43 |
GWM.V | Galway Metals Inc | 0.01 | 1.57 | 1.57 |
MMS.V | Macarthur Minerals Ltd | 0.41 | -0.02 | -0.01 |
Low | High | |
Unlevered beta | 0.83 | 1.43 |
Relevered beta | 1.3 | 2.28 |
Adjusted relevered beta | 1.2 | 1.86 |
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 MGG.V:
cost_of_equity (13.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.2) + 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.