Bushveld Minerals Ltd (BMN.L) WACC Analysis

As of June 4, 2025, Bushveld Minerals Ltd (BMN.L) carries a Weighted Average Cost of Capital (WACC) of 5.8%. WACC reflects the blended rate Bushveld Minerals Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 7.7%, the cost of debt is 4.4%, and the effective tax rate is 8.7%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.61 – 2.21
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 10.58

What It Means for Investors

With a selected WACC of 5.8%, Bushveld Minerals Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.