PearTree Securities MD Kendra Johnston and PearTree Canada CEO Ron Bernbaum Discuss the Benefits of Longer METC Tenures for the Industry

This interview was first published by The Northern Miner on March 28, 2025.

Canada’s failure to extend the mineral exploration tax credit (METC) beyond two years permanently keeps the junior mining sector in limbo, PearTree Securities says.

A two-year extension, announced on March 3 at the Prospectors and Developers Association of Canada conference, falls short of the long-term stability that industry demands, PearTree Securities managing director Kendra Johnston and PearTree Canada founder and CEO Ron Bernbaum said early this month.

“From my perspective, there is no reason to not make it permanent,” Johnston told The Northern Miner during the PDAC event in Toronto.

The credit has supported exploration financing for more than two decades. Yet the piecemeal renewals force companies to plan on short-term timeframes for projects that span eight to 20 years, Johnston said.

Bernbaum added that changes to alternative minimum tax rules have reduced access to flow-through shares, a financing tool vital to the sector. He cited that the tax policy changes “probably cost the sector conservatively $250 million and maybe $350 million in job creation in northern and remote communities,” he said.

The industry now faces short-term market changes, like U.S. tariffs and fluctuating exchange rates. Both stressed that the current framework hampers investment and slows project progress. They called for quick government action to clear up uncertainty and help with long-term planning.

Watch the full interview below with The Northern Miner western editor, Henry Lazenby. Joint venture videos are paid-for content in arrangement with The Northern Miner.