SSRM WACC - Weighted Average Cost of Capital
The WACC of SSR Mining Inc (SSRM) is 8.6%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.5% | 9.3% |
| Tax rate | 11.7% - 16.1% | 13.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.5% - 9.7% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.92 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.5% |
| Tax rate | 11.7% | 16.1% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.5% | 9.7% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SSRM | SSR Mining Inc | 0.15 | 1.93 | 1.71 |
| AGI.TO | Alamos Gold Inc | 0.03 | 1.07 | 1.05 |
| CDE | Coeur Mining Inc | 0.12 | 1.85 | 1.68 |
| CGG.TO | China Gold International Resources Corp Ltd | 0.44 | 1.27 | 0.92 |
| DPM.TO | Dundee Precious Metals Inc | 0.01 | 0.72 | 0.72 |
| GCM.TO | Gran Colombia Gold Corp | 1.03 | 1.33 | 0.7 |
| GSC.TO | Golden Star Resources Ltd | 0.24 | 0.33 | 0.27 |
| ORA.TO | Aura Minerals Inc | 0.3 | 0.97 | 0.77 |
| PVG.TO | Pretium Resources Inc | 0.1 | 0.86 | 0.8 |
| ROXG.TO | Roxgold Inc | 0.09 | 0.88 | 0.82 |
| Low | High | |
| Unlevered beta | 0.79 | 0.86 |
| Relevered beta | 0.88 | 1.01 |
| Adjusted relevered beta | 0.92 | 1.01 |
SSRM'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 SSRM:
cost_of_equity (9.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * 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.