Inca One Gold (IO.V) has announced it has received a first cheque from SUNAT, the Peruvian tax and customs authority. As you might remember from our previous reports, Inca One had to pay VAT on the ore it purchased from the small-scale miners but had to wait on an audit before receiving this tax refund from the Peruvian government.
A first audit has now been completed, and a cheque of 1.1 million soles (approximately US$315,000/C$435,000) has now been cashed (see image). This will allow Inca One to purchase more ore to increase the daily throughput at the Chala One mill.
This first cheque could and should be seen as a huge vote of confidence by the Peruvian government, as it effectively confirms Inca One has taken all the right steps in the formalization process and the paperwork of all of the ore that has been purchased and processed has been approved. We expect to see more cheques heading Inca One’s way as even after this payment, SUNAT still owes Inca One approximately US$2.2M and the company expects to collect these payments over the next few months.
Even more important is the fact that now Inca One’s repayment has been ‘approved’ by SUNAT, the company can start to submit its paperwork for VAT refunds on a monthly basis and this will reduce the working capital needs as there will be less cash tied up in the IGV-process and the turnaround periods will be much shorter.
Go to Inca One’s website
The author holds a long position in Inca One Gold. Inca One is a sponsor of the website. Please read the disclaimer
