Rate Reconciliation

The provision for income tax differs from the amount that would have resulted by applying the combined Canadian statutory income tax rates of approximately 26.5% (2020 - 26.5%):



	December 31, 2021			December 31, 2020

Income (loss) before income taxes	$	296,887		$	(263,429)

		26.5%			26.5%

Tax expense calculated using statutory rates		78,676			(69,809	)

Expenses not deductible (earnings not taxable)		926			(1,185	)

Change in tax benefits not recognized		(79,602	)		70,994

Deferred mining taxes		20,720			-

Deferred income tax expenses	$	20,720		$	-

Components of deferred tax assets and liabilities



	December 31, 2021		December 31, 2020

Deferred tax liabilities

Inventory	$	(183)		$ (449)

Property, plant & equipment		(82,773)		(30)

Derivative assets and debt		(874)		(519)

Total deferred tax liabilities		(83,830)		(998)

Deferred tax asset-tax losses		63,110		998

Net deferred taxes		$ (20,720)		$ -

Unrecognized deferred tax assets

Deductible temporary differences for which deferred tax assets have not been recognized are attributable to the following:



	December 31, 2021		December 31, 2020

Property, plant and equipment	$	-	$	104,795

Decommissioning and restoration liability		94,839		71,923

Income tax benefit of deferred mining taxes		20,720		-

Capital losses		942		426

Non-capital losses, expiring 2034 to 2041		132,659		351,218

Share issuance cost		50		178

	$	249,210	$	528,540

The Company also has unrecognized deductible temporary differences of $90.4 million

(2020 -

$277.8 million) related to the Northwest Territories Mining Royalty.