Fiscal Incentives: Super Flow-Through Shares
As a made-in-Canada financing tool, flow-through shares (FTS) have helped propel Canada to be a global leader in mineral exploration and mining. This effective mechanism can be combined with the Mineral Exploration Tax Credit (METC) to provide a competitive edge for investors and grassroots explorers in Canada. The PDAC, along with our industry partners and sister association's across the country, have once again stepped up to ensure that the government is aware of the importance of these vital incentive tools to the sector's prosperity.
PDAC has highlighted the importance of the super flow-through system in its Pre-Budget Submission, submitted in August 2018 for Budget 2019, as well as in a detailed technical analysis submitted to Finance Canada in October 2016. In addition, PDAC has engaged its members to gather their perspectives on the importance of this unique fiscal policy innovation. Summaries of interviews with our members, and member responses to a PDAC questionnaire distributed in August 2016, are provided below along with case studies of two existing mines that benefited from the issuing of super flow-through shares.