Torex Gold Resources Inc (TXG.TO) WACC Analysis

As of May 22, 2025, Torex Gold Resources Inc (TXG.TO) carries a Weighted Average Cost of Capital (WACC) of 9.3%. WACC reflects the blended rate Torex Gold Resources Inc must pay to both equity and debt holders.

Within that, the cost of equity is 8.0%, the cost of debt is 4.0%, and the effective tax rate is 36.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.95 – 1.07
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.06

What It Means for Investors

With a selected WACC of 9.3%, Torex Gold Resources Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.