MUX WACC - Weighted Average Cost of Capital
The WACC of McEwen Mining Inc (MUX) is 8.0%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.8% | 8.2% |
| Tax rate | 6.9% - 8.9% | 7.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.4% - 9.6% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.59 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.8% |
| Tax rate | 6.9% | 8.9% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.4% | 9.6% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MUX | McEwen Mining Inc | 0.08 | 1.05 | 0.98 |
| CMCL | Caledonia Mining Corporation PLC | 0.07 | 0.79 | 0.75 |
| F.V | Fiore Gold Ltd | 0.02 | 0.98 | 0.96 |
| HRT.TO | Harte Gold Corp | 5.45 | 1.02 | 0.17 |
| HYMC | Hycroft Mining Holding Corporation | 1.07 | 0.96 | 0.48 |
| MGZ.H.V | Mangazeya Mining Ltd | 5.31 | -0.14 | -0.02 |
| NSR.TO | Nomad Royalty Company Ltd | 0.18 | 1.06 | 0.91 |
| RBX.V | Robex Resources Inc | 0.06 | -0.07 | -0.07 |
| SBB.TO | Sabina Gold & Silver Corp | 0.08 | 0.87 | 0.81 |
| VGCX.TO | Victoria Gold Corp | 7.37 | 0.17 | 0.02 |
| Low | High | |
| Unlevered beta | 0.36 | 0.77 |
| Relevered beta | 0.39 | 0.84 |
| Adjusted relevered beta | 0.59 | 0.89 |
MUX'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 MUX:
cost_of_equity (8.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.59) + 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.