SSL.TO WACC - Weighted Average Cost of Capital
The WACC of Sandstorm Gold Ltd (SSL.TO) is 14.0%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.8% | 9.35% |
| Tax rate | 27.2% - 40.3% | 33.75% |
| Cost of debt | 6.3% - 160.1% | 83.2% |
| WACC | 7.5% - 20.5% | 14.0% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.92 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.8% |
| Tax rate | 27.2% | 40.3% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 6.3% | 160.1% |
| After-tax WACC | 7.5% | 20.5% |
| Selected WACC | 14.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SSL.TO | Sandstorm Gold Ltd | 0.13 | 1.12 | 1.03 |
| GSC.TO | Golden Star Resources Ltd | 0.24 | 0.33 | 0.28 |
| HYMC | Hycroft Mining Holding Corporation | 1.07 | 0.84 | 0.51 |
| OLA.TO | Orla Mining Ltd | 0 | 1.24 | 1.24 |
| OR.TO | Osisko Gold Royalties Ltd | 0.01 | 1.07 | 1.06 |
| RUP.V | Rupert Resources Ltd | 0 | 0.8 | 0.8 |
| SBB.TO | Sabina Gold & Silver Corp | 0.08 | 0.87 | 0.83 |
| SEA.TO | Seabridge Gold Inc | 0.27 | 1.85 | 1.58 |
| VGCX.TO | Victoria Gold Corp | 7.37 | 0.17 | 0.03 |
| WDO.TO | Wesdome Gold Mines Ltd | 0 | 1.32 | 1.32 |
| Low | High | |
| Unlevered beta | 0.82 | 1.04 |
| Relevered beta | 0.88 | 1.12 |
| Adjusted relevered beta | 0.92 | 1.08 |
SSL.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 SSL.TO:
cost_of_equity (9.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.92) + 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.