via nrc.ca - Mining Taxation In Canada

In attempting to sort out why the company is paying taxes on drilling and how much that might mean they spent on drilling without showing any results, I came across the following tidbit. Just the fact that they are paying taxes on those revenues, without reporting the source of revenue, or how much, gives an indication that operations are ongoing. But there's also something else.

Since 2007, a new mining company in Saskatchewan has a tax holiday for ten years from paying provincial taxes. That makes the declaration of commercial production a very important milestone date.

In order to calculate an EBITDA and possible cash flow, the level of taxation is an important factor in evaluating the company. This money is presumably being taxed @21%, but with the tax holiday in vigour, the level of taxation should be only 15%. So the number representing 'drilling' really means 'drilling AND development' and is commensurate with the number reported in the August end of fiscal year report, ~$200m. There were also 'impairments' added to the total.

This is one place where the loopholes don't hide what they're doing.

https://www.nrcan.gc.ca/mining-materials/taxation/mining-taxation-regime/8892

-F6