Calculating the Operator's Annual Profit
You can calculate the operator's annual profit once you have calculated the annual earnings for each of the operator's mines. The following amounts can be claimed in calculating an operator's annual profit:
- the amount of expenses incurred by the operator in Canada for scientific research and experimental development with respect to its mining operation;
- the amount of gifts made by the operator (the amount deducted cannot exceed 10% of the total of the annual earnings of the operator's mines);
- the amount of general administrative expenses related to exploration work;
- the amount of the following allowances:
- exploration, mineral deposit evaluation and mine development allowance,
- development allowance,
- exploration allowance,
- pre-production development allowance,
- allowance for community consultations,
- environmental studies allowance,
- sustainable development certification allowance,
- allowance for critical and strategic mineral development, and
- additional exploration allowance.
The annual profit of an operator other than an eligible operator is calculated taking into account the operator's earnings. The annual profit of an eligible operator must be calculated taking into account both the earnings and the losses from the operator's mines.