Inca One Gold (IO.V) has announced it received a final payment from SUNAT, the Peruvian tax and customs authority, for a total of US$363,000 related to the outstanding VAT claims the company had on SUNAT. The audit took quite a bit longer than originally anticipated as SUNAT meticulously checks all the paper work to enforce the government’s crackdown on illegal mining, but has now approved this final payment.
US$363,000 is approximately C$475,000 which is less than the C$732,000 the company’s most recent balance sheet was showing, so we might see an impairment charge in the current financial quarter. What’s more important is the SUNAT’s repayment implies the company remains in good standing, follows the laws and meets all requirements for processors of gold-bearing ore, and gold exporters. As Inca One is now allowed to submit VAT refund requests on an ongoing monthly basis, the turnaround time for repayments will be much shorter, allowing the capital to be redeployed to purchase more ore and, why not, expanding the milling capacity of the company.