ORA.TO WACC - Weighted Average Cost of Capital

The WACC of Aura Minerals Inc (ORA.TO) is 8.8%.

The Cost of Equity of Aura Minerals Inc (ORA.TO) is 10.25%.

The Cost of Debt of Aura Minerals Inc (ORA.TO) is 6.45%.

	Range	Selected
Cost of equity	8.80% - 11.70%	10.25%
Tax rate	25.50% - 33.80%	29.65%
Cost of debt	4.20% - 8.70%	6.45%
WACC	7.4% - 10.2%	8.8%

WACC

ORA.TO WACC calculation

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	8.80%	11.70%

Tax rate	25.50%	33.80%
Debt/Equity ratio	0.33	0.33
Cost of debt	4.20%	8.70%

After-tax WACC	7.4%	10.2%


Selected WACC	8.8%

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.