ORA.TO WACC - Weighted Average Cost of Capital
The WACC of Aura Minerals Inc (ORA.TO) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.7% | 10.25% |
| Tax rate | 25.5% - 33.8% | 29.65% |
| Cost of debt | 4.2% - 8.7% | 6.45% |
| WACC | 7.4% - 10.2% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.1 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.7% |
| Tax rate | 25.5% | 33.8% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 4.2% | 8.7% |
| After-tax WACC | 7.4% | 10.2% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ORA.TO | Aura Minerals Inc | 0.33 | 1.15 | 0.94 |
| AR.TO | Argonaut Gold Inc | 0.68 | 1.64 | 1.12 |
| CXB.TO | Calibre Mining Corp | 0.22 | 1.97 | 1.71 |
| GCM.TO | Gran Colombia Gold Corp | 1.03 | 1.33 | 0.78 |
| GPR.TO | Great Panther Mining Ltd | 1.52 | 1.95 | 0.96 |
| GSC.TO | Golden Star Resources Ltd | 0.24 | 0.33 | 0.28 |
| MND.TO | Mandalay Resources Corp | 0.02 | 1.43 | 1.41 |
| MUX | McEwen Mining Inc | 0.1 | 1.17 | 1.1 |
| ROXG.TO | Roxgold Inc | 0.09 | 0.88 | 0.83 |
| WDO.TO | Wesdome Gold Mines Ltd | 0 | 1.56 | 1.56 |
| Low | High | |
| Unlevered beta | 0.95 | 1.11 |
| Relevered beta | 1.15 | 1.36 |
| Adjusted relevered beta | 1.1 | 1.24 |
ORA.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 ORA.TO:
cost_of_equity (10.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.1) + 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.