INCOME TAXES:

9 Months Ended

Sep. 30, 2024

INCOME TAXES:

INCOME TAXES:

NOTE 4 — INCOME TAXES:

The income tax provision and the effective income tax rate for the nine-month period ended September 30, 2024 and 2023 consisted of (in millions):

	2024			2023
Statutory income tax provision	$	1,298.7		$	985.8
Peruvian royalty		45.5			30.2
Mexican royalty		116.3			102.5
Peruvian special mining tax		68.1			51.7
Total income tax provision	$	1,528.6		$	1,170.2
Effective income tax rate		37.2	%		36.9	%

These provisions include income taxes for Peru, Mexico and the United States. The Mexican royalty, the Peruvian royalty and the Peruvian special mining tax are included in the income tax provision. The increase in the effective income tax rate in 2024 compared to the same period in 2023 was primarily attributable to a movement in exchange rates of the Mexican peso versus the U.S. dollar.

Peruvian royalty and special mining tax: The Company has accrued $113.6 million and $81.9 million of royalty charge and special mining tax as part of the income tax provision for the nine months of 2024 and 2023, respectively.

Mexican mining royalty: The Company has accrued $116.3 million and $102.5 million of royalty taxes as part of the income tax provision for the nine months of 2024 and 2023, respectively.

Accounting for uncertainty in income taxes: In the nine months of 2024, the Company made payments for uncertain tax positions of $72.5 million and $19.5 million in the Peruvian and Mexican jurisdictions respectively. The Company also recorded current and non-current liabilities for the Peruvian and Mexican jurisdictions that increased the tax expense by approximately $15.5 million and $12.1 million respectively. The Company has a net current liability of $19.2 million and $10.7 million in the Peruvian and Mexican jurisdictions respectively that represents anticipated cash refunds or payments within 12 months.

Tax law updates: On May 31, 2019, the Organization for Economic Cooperation and Development (“OECD”) published a two-pillar system that introduces a minimum global tax of 15% and a proposed tax on base eroding payments. Certain aspects of Pillar Two took effect January 1, 2024, while other aspects go into effect January 1, 2025. If jurisdictions want to implement Pillar Two they will need to do so through domestic legislation. The countries in which the Company has significant operations have yet to enact Pillar Two into law and have not formally announced plans to implement these rules. The Company will continue to monitor these developments and analyze the potential impact that Pillar Two will have on future results.