MGZ.H.V WACC - Weighted Average Cost of Capital
The WACC of Mangazeya Mining Ltd (MGZ.H.V) is 8.1%.
| Range | Selected | |
| Cost of equity | 18.7% - 31.6% | 25.15% |
| Tax rate | 21.2% - 28.1% | 24.65% |
| Cost of debt | 4.3% - 8.7% | 6.5% |
| WACC | 5.8% - 10.3% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 3.27 | 4.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18.7% | 31.6% |
| Tax rate | 21.2% | 28.1% |
| Debt/Equity ratio | 5.31 | 5.31 |
| Cost of debt | 4.3% | 8.7% |
| After-tax WACC | 5.8% | 10.3% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MGZ.H.V | Mangazeya Mining Ltd | 5.31 | -0.14 | -0.03 |
| ANX.TO | Anaconda Mining Inc | 0.02 | 2.07 | 2.04 |
| F.V | Fiore Gold Ltd | 0.02 | 0.98 | 0.96 |
| GG.V | Galane Gold Ltd | 0.15 | 1.22 | 1.09 |
| HRT.TO | Harte Gold Corp | 5.45 | 1.02 | 0.19 |
| LN.TO | Loncor Resources Inc | 0 | 0.12 | 0.12 |
| MIRL.CN | Minera IRL Ltd | 15.17 | -0.43 | -0.03 |
| MMY.V | Monument Mining Ltd | 0 | 1.02 | 1.01 |
| SGN.V | Scorpio Gold Corp | 0.23 | 2.68 | 2.27 |
| TML.TO | Treasury Metals Inc | 0.3 | 1.78 | 1.44 |
| Low | High | |
| Unlevered beta | 0.65 | 1.04 |
| Relevered beta | 4.39 | 6.66 |
| Adjusted relevered beta | 3.27 | 4.79 |
MGZ.H.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 MGZ.H.V:
cost_of_equity (25.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (3.27) + 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.