Huge difference with respect to investing with intent on Capital growth over time versus high volume Trading to create short term income.....the latter being looked at by CRA as taxabe income in the year it's created.

And this goes without saying in non-registered accounts, as well.

When trading profits are income

Jamie Golombek / June 18, 2013

http://www.advisor.ca/news/industry-news/when-trading-profits-are-income-119954

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CRA TFSA ‘crackdown’ no cause for alarm

by Jonathan Chevreau / December 10th, 2014

http://www.moneysense.ca/save/tfsa/cra-tfsa-crackdown-no-cause-for-alarm

Transfer shares to your registered account, but not at a loss!

Income Tax Act s. 40(2)(g)(iv)(A) and (B)

If you transfer loss shares to a registered account, or sell them in a non-registered account and repurchase them within 30 days, the loss will not be deductible.

If you hold shares of corporations in a non-registered investment account, you can use them as your registered retirement savings plan (RRSP) contribution by transferring them to your RRSP as an in kind contribution. You can also use them as a contribution (not tax deductible) to your tax-free savings account (TFSA), or some other registered accounts. Your contribution amount is the market value at the time of the transfer.

If you are transferring a bond, the market value will include any accrued interest.

For tax purposes, you have effectively disposed of the shares (deemed disposition), so any gain will be taxable to you. However, if you have a loss on shares transferred to any of the registered accounts noted below, the loss is not deductible. In most cases, unless the loss is very small, it would be best to sell the shares and contribute the cash to the registered account.

If you or your spouse wish to repurchase the same shares in the registered account, do not do this until after 30 days. Otherwise the loss will be considered a superficial loss and will be disallowed.

Losses are not deductible on dispositions of property to

- deferred profit sharing plan (DPSP)

- registered disability savings plan (RDSP)

- registered retirement income fund (RRIF) or

- tax-free savings account (TFSA)

under which the taxpayer is a beneficiary or immediately after the disposition becomes a beneficiary.

Losses are not deductible on dispositions of property to a registered retirement savings plan (RRSP) if the taxpayer or taxpayer's spouse or common-law partner is an annuitant, or becomes an annuitant within 60 days after the end of the taxation year.

You may decide for some reason to make a transfer of a loss investment to this type of account. If so, when completing your tax return, do not enter this disposal on your Schedule 3, as the loss cannot be claimed.

Tax Tip: If you have a loss on shares, don't transfer them to your RRSP or TFSA.

http://www.taxtips.ca/personaltax/investing/transfersharestorrsp.htm

Here's the CRA link:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/221/menu-eng.html

This may explain it a little better:

http://www.taxtips.ca/personaltax/investing/interestexpense.htm

A friend provided an updated research report from CIBC World Markets (portion copied below) and the last few paragraphs outlined the benfits of new technology, some of the cost savings, ability to lower the risk profile, etc which, if similarly applied to Schaft Creek, could improve our value. Just thought I would share.

A Site Visit To HVC And Neptune - September 08, 2013

Site Visit To HVC And Neptune

We had an opportunity to visit Teck’s (TCK.B-SO) operations at Highland Valley Copper and receive an update on the coal business followed by a tour of the Neptune port facilities in British Columbia on September 4-5. The HVC mine showed well, reflecting the company’s experienced and stable workforce; our outlook for HVC has remained unchanged. Teck’s coal business appears well positioned to meet 2013 guidance for both production and cost. Overall, the trip served to largely reaffirm our existing estimates and we have made no substantive changes to our numbers.

HVC Optimization Project

Some elements of the HVC operation have been in service since the 1960s and to address the rising maintenance requirements of the existing plant, Teck initiated a $550 million mill optimization project in 2011. We see this as a revitalization project that, in conjunction with the ability to extend the mine life, would serve to improve the availability and reliability of the operation until the end of HVC’s planned mine life in 2027. The largest components of the optimization project include new flotation and pebble crushing plants and a retrofit of the existing control systems.

As of today, the mill optimization project remains on-schedule for completion by the end of 2013. The construction is 68% complete with the steel structure & major equipment in place and the new pebble crusher now connected with the rest of the milling circuit. The mill project is anticipated to provide a modest boost to mill throughput rates, rising to ~135,000 tpd from the current 120,000 tpd and given the ability to create longer flotation cell retention times, recoveries should improve by ~1-2% from the current average of ~85%. To match the increased mill requirements, the mine is expected to increase throughput & production in Q4 as previously announced.

Overall, we found that the expectations for the project continue to closely match those detailed in the recently issued technical report. Upon completion of the optimization project (expected late 2014), HVC is expected to benefit from the application of current process technology that would lower the risk profile and minimize downtime, and reduce sustaining capital going forward. Milling throughput and copper recoveries are expected to increase by ~10% and ~2% respectively, while unit operating costs are expected to decrease by ~5%. These improvements are meaningful given the operation’s lower grade nature.

In addition to mill optimization, the mine expects to carry out the “Mine-2-Mill” initiative in 2013 with the objective of increasing mill throughput by 7% (on top of the benefits from the mill optimization project). This is not currently factored into our estimates. The focus of this initiative is on the use of high energy blasting to reduce ore grinding requirements (thereby alleviating this bottleneck), and improving truck and shovel productivities. The company is targeted to achieve $30M ongoing cost reductions after implementation of these measures. We would note that in 2015 major pushback programs are planned for the Valley, Highmont and Lornex pits, consequently strip ratios (and costs) should track above average in this medium term timeframe.

We expect HVC to remain an important component of Teck’s copper production base for the foreseeable future contributing on average 150kt of copper (out of a company wide total of ~400kt) at cash costs of $1.50/lb over the next 5-years.

Alec Kodatsky

1 (416) 594-7284

Alec.Kodatsky@cibc.ca

Terry K.H. Tsui, CFA

1 (416) 956-3287

Terry.Tsui@cibc.ca

CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, Canada M5J 2S8

http://www.mineweb.com/mineweb/content/en/mineweb-canada?oid=187170&sn=Detail

This fruit and veggie tycoon likes his Canadian juniors

Ernesto Echavarria begins to add to his portfolio in serious again this year with new names he counts himself an insider.

Author: Kip Keen
Posted: Monday , 22 Apr 2013

HALIFAX, NS (MINEWEB) -

It might be said he likes his fruit and veggies as much as his Canadian-based resource stock.

Ernesto Echavarria, a controling shareholders of a fruit and vegetable distribution company with operations in Mexico, the U.S. and Canada, added a six company to the list of publicly-listed junior explorers in which he owns at least 10-percent stakes.

Soltoro, a Vancouver-headquartered junior that has silver-zinc assets in northern Mexico, said this week that Echavarria bought 4.44 percent of the company's stock bringing to 14.43 percent his stake in Soltoro (and thus also making him a reporting insider.)

Echavarria's timing in his buys makes one wonder if he sees a market bottom forming in the Venture, or at least select names on it. Right or wrong this time round, Echavarria's last round of heavy resource-stock buying came in mid-2009 when the market had just started to rebound after the late 2008/early 2009 crash in resource stocks, among other things (like the economy).

Back then Echavarria went on a tear, becoming a 10-percent-plus insider in four publicly-listed resource stock in Canada between June and August 2009. Here by the date he became a 10-percent insider:

Rye Patch Gold - 2009-08-06

Redhill Resources - 2009-08-06

Animas Resources - 2009-06-04

Copper Fox Metals - 2009-07-16

After the mid-2009 frenzy, in between late 2009 and early 2013 he did not buy great amounts of stock in any other Canadian junior names to push him over the 10 percent threshold (though he continued to buy stock within the above names, Copper Fox most notably). In terms of shareprice performance, Rye Patch and Copper Fox appreciated over the period, the latter especially. The others, Animas and Redhill, did not fare so well, declining considerably.

Echavvaria's appetite looks to have been piqued again. In addition to Soltoro he became a 10-percent insider in Blackheath Resources in late February this year.

Topics: Ernesto Echavarria, Copper Fox, Soltoro, juniors, gold price, silver price

Recently submitted document:

http://a100.gov.bc.ca/appsdata/epic/html/deploy/epic_document_283_35249.html