Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events

Subsequent Events

23.      Subsequent Events

COVID-19

On March 11, 2020, the World Health Organization declared the outbreak of the respiratory disease caused by the new coronavirus as “pandemic”. As of the date of issuance of the condensed consolidated financial statements, the Company’s financial condition has not been significantly impacted;  however, the Company continues to monitor the situation.  No impairments were recorded as of the condensed consolidated balance sheet date; however, due to uncertainty surrounding the situation, management’s judgment regarding this could change in the future.  In addition, while the Company’s results of operation, cash flows, and financial condition could be negatively impacted, the extent of the impact cannot be reasonably estimated at this time.

On April 23, 2021, a new labor law was made official in Mexico that will impact companies that utilize subcontractor structures, effective beginning August 1, 2021.  The Company utilizes subcontractor structures in Mexico, as is common practice among companies in the mining and other industries in Mexico.  Enacted to prevent the avoidance of employee profit sharing in Mexico, the law will disallow a deduction in computing income taxes for labor outsourcing costs, unless the arrangement falls within certain narrowly defined exceptions.  The new law does provide for annual caps on the amount of employee profit sharing a company would be required to pay, which is designed to even out the profit sharing tax over several years.  The Company is still evaluating the new law, but it anticipates its tax and profit sharing liability in Mexico will likely increase as a result of the new law.