An aerial view of the Tocantinzinho mine. Credit: G Mining Ventures.
Authorities in Brazil have granted G Mining Ventures’ (TSX: GMIN) main Tocantinzinho mine a reduced tax rate, a move that the Canadian miner says will “materially enhance” profit and cash flow.
Starting this year, the nominal corporate income tax rate applicable to Tocantinzinho will drop to about 15.3% from 34%, Quebec-based G Mining said late Thursday. The measure will be renewable after the end of the initial 10-year term.
“The update speaks positively to Brazil’s supportive taxation regime which incentivizes industrial development in remote areas,” National Bank Financial mining analyst Rabi Nizami said Friday in a note. Tocantinzinho “is emblematic of a successful project incentivized and built under this system.”
Located in northern Brazil’s Para state, Tocantinzinho began commercial production in September…
