OIII.V WACC - Weighted Average Cost of Capital

The WACC of O3 Mining Inc (OIII.V) is 11.2%.

The Cost of Equity of O3 Mining Inc (OIII.V) is 11.45%.

The Cost of Debt of O3 Mining Inc (OIII.V) is 5.00%.

	Range	Selected
Cost of equity	10.10% - 12.80%	11.45%
Tax rate	21.30% - 36.90%	29.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.9% - 12.5%	11.2%

WACC

OIII.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.22	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.80%

Tax rate	21.30%	36.90%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.00%	5.00%

After-tax WACC	9.9%	12.5%


Selected WACC	11.2%

OIII.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 OIII.V:

cost_of_equity (11.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.22) + 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.