Net value of the output
 6. (1) The amount of the net value of the output of a diamond mine for a fiscal year, for the purposes of the definition of that term in subsection 154 (1) of the Act, shall be determined using the formula, A + B – C + D + E + F + G + H – I + J – K in which, “A”  is the total of, (a)  the proceeds from sales during the fiscal year of diamonds produced as part of the output of the diamond mine after March 22, 2007, to persons not related to the operator, if satisfactory evidence of those sales is provided to the Minister, and (b)  the market value of any diamonds produced as part of the output of the diamond mine after March 22, 2007 that were otherwise sold or transferred from the diamond mine during the fiscal year, “B”  is the market value as of the end of the fiscal year of any inventories of diamonds produced as part of the output of the diamond mine after March 22, 2007, “C”  is the market value as of the beginning of the year of any inventories of diamonds produced as part of the output of the diamond mine after March 22, 2007, “D”  is the lesser of, (a)  the amount of any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or an allowance, other than an amount previously deducted in determining an undeducted balance, and (b)  the amount of the cost referred to in clause (a), “E”  is the amount of any excess determined under clause 7 (5) (b) for the fiscal year, “F”  is the sum of all amounts, if any, withdrawn during the fiscal year from a qualifying environmental trust, up to a maximum of the sum of all amounts contributed to the trust, “G”  is the amount of any proceeds received during the fiscal year from insurance on diamonds produced as part of the output of the diamond mine, “H”  is the amount of, (a)  any grants in respect of the diamond mine that were made to the operator by the Ontario or the federal government during the fiscal year, and (b)  any loans to the operator in respect of the diamond mine that were forgiven by the Ontario or the federal government during the fiscal year, “I”  is the total of the amounts claimed under subsection 7 (1), “J”  is the sum of, (a)  the amount by which the sum of the amounts determined under clause 7 (8) (d) and paragraph 5 of subsection 7 (9) exceeds the undeducted balance of the depreciable assets eligible for a depreciation allowance at the end of the fiscal year, and (b)  the amount by which the sum of the amounts determined under paragraphs 3 and 4 of subsection 7 (9) exceeds the undeducted balance of the development allowance at the end of the fiscal year, and “K”  is the amount claimed by an operator in respect of the operator’s Ontario community and economic development incentive for the fiscal year in respect of the mine, as determined under subsection 7 (2). O. Reg. 323/07, s. 6 (1). (2) No costs related to the production or valuation of diamonds from any land other than royalty land shall be taken into account for the purposes of determining the value of “A”, “B”, “C”, “D”, “G”, “I” or “K” in subsection (1).  O. Reg. 323/07, s. 6 (2). (3) In the case of a diamond royalty return for the last fiscal year of production of a diamond mine, the operator may, for the purposes of determining the value of “B” in subsection (1) for that fiscal year, elect to use the actual proceeds from the sale of its inventory of diamonds after the end of that fiscal year, instead of the market value of the inventory of diamonds at the end of that fiscal year, but only to the extent that the diamonds were sold to persons not related to the operator and satisfactory evidence of the sales has been provided to the Minister.  O. Reg. 323/07, s. 6 (3). (4) An election made under subsection (3) is irrevocable.  O. Reg. 323/07, s. 6 (4). (5) Gains and losses from hedging transactions shall not be included in calculating the net value of the output of a diamond mine.  O. Reg. 323/07, s. 6 (5).