Leigh Creek Energy Ltd (LCK.AX) WACC Analysis

As of June 13, 2025, Leigh Creek Energy Ltd (LCK.AX) carries a Weighted Average Cost of Capital (WACC) of 9.6%. WACC reflects the blended rate Leigh Creek Energy Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 8.3%, the cost of debt is 5.0%, and the effective tax rate is 30.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.7% – 4.2%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.97 – 1.08
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 9.6%, Leigh Creek Energy Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.