Geodynamics receives $23 million R&D Tax Incentive refund

Geodynamics receives $23 million R&D Tax Incentive refund Drilling crew preparing for spudding of Habanero 4, Australia (source: Geodynamics)
Alexander Richter 11 Apr 2013

Australian Geodynamics (ASX:GDY) announces it has received a US$23 million R&D tax incentive refund under the Australian Federal Government's R&D Tax Incentive Scheme.

This morning, Australian Geodynamics Limited (ASX: GDY) “advises that it has received a R&D Tax Incentive refund of $22.2 million under the Federal Government’s R&D Tax Incentive Scheme.

Under the scheme, companies with a turnover of less than $20 million are entitled to a cash refund of 45 cents per dollar spent on eligible research and development in Australia. The Company’s claim relates to the costs of research and development conducted on the Cooper Basin Enhanced Geothermal Systems Project for the 2011/2012 financial year.

Managing Director and CEO Geoff Ward said “Geodynamics is a world leader in the area of enhanced geothermal systems. This tax refund together with existing financial resources puts Geodynamics in a strong position to continue the development of our Habanero Project and Savo Island Project in the Solomon Islands. We acknowledge the Government’s support of these important R&D activities and look forward to a successful completion of the current 1 MWe Habanero Pilot Plant trial.”

Source: Company release (pdf)