Value Added Tax Receivable, Net

3 Months Ended

Mar. 31, 2024

Value Added Tax Receivable, Net

Value Added Tax Receivable, Net

7. Value Added Tax Receivable, Net

At March 31, 2024, the Company recorded a net VAT paid in Mexico of $1.1 million related to the Velardeña Properties and the Rodeo operation, as a recoverable asset, which appears in Value added tax receivable, net on the interim Condensed Consolidated Balance Sheet. Mexico law allows for certain VAT payments to be recovered through ongoing applications for refunds. The Company expects that the current amounts receivable will be recovered within a one-year period. At December 31, 2023, the Company had recorded approximately $3.1 million of net VAT receivable. At March 31, 2024 and December 31, 2023, the Company recorded approximately $0.7 million and $0.8 million, respectively, of VAT payable as a reduction to the VAT receivable in Mexico.

The Company has also paid VAT in other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability.