Flow-Through Shares
A Canadian share type that lets mining and energy exploration companies pass certain tax deductions through to investors.
What it is
Flow-through shares are a uniquely Canadian financing tool used mainly by mining, oil, gas, and renewable-energy exploration companies. The company agrees to spend the money it raises on eligible exploration and development, then renounces the related tax deductions and passes them through to the investors who bought the shares. Investors can then claim those expenses against their own income.
Why it matters
Flow-through shares give investors an immediate tax deduction, which is attractive to high-income Canadians, and they help fund early-stage resource companies. The risks are significant: these are often small, speculative exploration firms, the shares typically come at a premium, and the tax benefit lowers your adjusted cost base, increasing taxable capital gains when you sell.
How it's calculated
The deduction passed to an investor equals the eligible Canadian exploration or development expenses the company renounces and allocates to that investor's shares, claimed on the investor's Canadian tax return.
How Quintarthai uses it
Quintarthai covers Canadian resource and mining companies with SEDAR+ filing data and financial detail on each stock's company page, so you can research the issuer behind a flow-through offering.