Magna Gold Corp (MGR.V) WACC Analysis

As of June 8, 2025, Magna Gold Corp (MGR.V) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate Magna Gold Corp must pay to both equity and debt holders.

Within that, the cost of equity is 28.0%, the cost of debt is 5.0%, and the effective tax rate is 23.7%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 4.33 – 6.53
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 11.57

What It Means for Investors

With a selected WACC of 6.4%, Magna Gold Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.