Alba Mineral Resources PLC (ALBA.L) WACC Analysis

As of May 22, 2025, Alba Mineral Resources PLC (ALBA.L) carries a Weighted Average Cost of Capital (WACC) of 4.7%. WACC reflects the blended rate Alba Mineral Resources PLC must pay to both equity and debt holders.

Within that, the cost of equity is 3.7%, the cost of debt is 5.0%, and the effective tax rate is 19.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: -0.05 – 0.32
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 4.7%, Alba Mineral Resources PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.