Glossary · Financing
Flow-through shares
Canadian-specific shares where exploration expense deductions flow through to the investor for tax purposes.
Flow-through shares are a Canadian tax instrument unique to the mining and oil & gas sectors. The issuer renounces its exploration tax deductions to the investor, who can apply them against personal income tax. Investors accept this in exchange for paying a premium (typically 20–40%) over the regular share price. Flow-through issuance is heavily concentrated in Q4 each year as investors chase year-end tax planning.