PAU.CN WACC - Weighted Average Cost of Capital
The WACC of Provenance Gold Corp (PAU.CN) is 8.8%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.0% | 8.75% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.0% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.86 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.0% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.0% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PAU.CN | Provenance Gold Corp | 0 | 2.46 | 2.46 |
| BWR.V | BWR Exploration Inc | 0.11 | 0.03 | 0.03 |
| CCC.CN | Carlyle Commodities Corp | 0.07 | -0.82 | -0.77 |
| GDM.V | Goldstar Minerals Inc | 0.11 | 0.79 | 0.73 |
| GOCO.CN | Go Metals Corp | 0 | 1.07 | 1.07 |
| IXI.V | Indigo Exploration Inc | 0.01 | 0.75 | 0.75 |
| MREY.CN | Monterey Minerals Inc | 0.04 | 0.9 | 0.88 |
| MTH.V | Mammoth Resources Corp | 0.03 | 0.82 | 0.81 |
| SLZ.CN | Slave Lake Zinc Corp | 0.09 | 1.89 | 1.77 |
| ST.CN | Straightup Resources Inc | 0.01 | 1.03 | 1.03 |
| TR.V | Troubadour Resources Inc | 0.1 | 1.35 | 1.26 |
| Low | High | |
| Unlevered beta | 0.81 | 1.03 |
| Relevered beta | 0.79 | 0.94 |
| Adjusted relevered beta | 0.86 | 0.96 |
PAU.CN'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 PAU.CN:
cost_of_equity (8.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.86) + 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.