Toronto-listed G Mining Ventures (GMIN) has secured a significant tax break for its Tocantinzinho (TZ) gold mine in Pará state, Brazil, after the project was approved for inclusion in the Amazon regional development tax incentive programme administered by SUDAM.
The approval reduces the Brazilian nominal corporate income tax rate for TZ from 34% to about 15.25% for ten years starting in the 2025 financial year. The incentive can be renewed after the initial term and is expected to materially boost after-tax earnings and free cash flow.
“The approval of this tax incentive further strengthens TZ’s already robust economics and affirms the value of our investment in the Amazon region,” said president and CEO Louis-Pierre Gignac.
“With over 80% of our workforce from Pará and 99.8% Brazilian employees, we are deeply committed to sustainable growth that benefits local communities. By lowering our effective tax rate, we expand margins and increase free cash flow – reinforcing TZ’s role as the engine that funds our disciplined growth pipeline for our Oko West gold project in Guyana and our advanced exploration at Gurupi. This outcome highlights strong local support and underscores the execution capabilities of our in-country team.”
SUDAM is a federal development agency focused on fostering sustainable economic growth in the Amazon region. Its tax incentive programme provides eligible projects with a reduced corporate income tax rate, typically from 34% to about 15%, renewable after the first ten years, to encourage investment, job creation, and sustainable development.