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What's the JMEI program and the 34 participating ASX junior explorers

Wed 03 Aug 22, 1:46pm (AEST)
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Key Points

  • The Junior Minerals Exploration Incentive (JMEI) program in incentivise investment into small cap, greenfield explorers
  • Exploration companies can generate tax credits by choosing to give up a portion of their losses
  • A total of 34 ASX-listed juniors are on the list for FY22-23

The FY23 list has been released for the Australian government's Junior Minerals Exploration Incentive program.

The JMEI program was introduced in 2018 as an initiative to incentivise investment into small cap, greenfield exploration companies based in Australia.

Eligible companies can transfer tax losses into 'exploration credits' which can be distributed among investors as refundable tax offsets or additional franking credits as opposed for holding onto these losses for years until they begin receiving mining income.

In May, the Australian Government announced it will invest a further $100m over four years to extend the JMEI program.

The ATO allocates the credits on a first-come, first-serve basis until the cap is reached.

JMEI Juniors

There are a total of 34 participating ASX-listed juniors for FY22-23.

Here are the companies with quotas worth more than $1m. You can see a full list (plus historical quotas) here.

Company

Ticker

Quota ($)

Black Cat Syndicate

BC8

1,250,000

Devex Resources

DEV

1,250,000

Encounter Resources

ENR

1,250,000

Hamelin Gold

HMG

1,250,000

Itech Minerals

ITM

1,250,000

Koonenberry Gold

KNG

1,250,000

Minerals 260

MI6

1,250,000

North Stawell Minerals

NSM

1,250,000

St George Mining

SGQ

1,250,000

Australian Rare Earths

AR3

1,200,000

Great Western Exploration

GTE

1,140,000

King River Resources

KRR

1,005,000

Demetallica

DRM

1,005,000

Source: Australian Government | Table: Market Index

A glance at last FY21-22

The JMEI list from FY21-22 includes 34 companies. Some of which have become pretty high-profile names in the battery metals space such as:

Though, most participating juniors are names that investors have never heard of and/or very thinly traded.

JMEI participation isn't necessarily an ingredient for success, with the average FY21-22 company up an average 16.5% year-to-date (as at 3 August 2022) but the median sits at -23.5%.

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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