INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Summary of income tax recovery

(in thousands)	2022		2021
Deferred income tax:
Origination of temporary differences	$	149	$	1,795
Tax benefit-previously unrecognized tax assets		2,128		247
Prior year under provision		(8)		(47)
		2,269		1,995
Income tax recovery	$	2,269	$	1,995

Summary of reconciliation of the effective rate of income tax

(in thousands)	2022			2021
Income before taxes	$	12,085		$	16,982
Combined Canadian tax rate		26.50	%		26.50	%
Income tax expense at combined rate		(3,202)			(4,500)
Difference in tax rates		(3,394)			(1,704)
Non-deductible amounts		(3,018)			(4,637)
Non-taxable amounts		17,334			13,518
Change in deferred tax assets not recognized (1)		(5,257)			(409)
Change in tax rates, legislation		(151)			(29)
Prior year under provision		(8)			(47)
Other		(35)			(197)
Income tax recovery	$	2,269		$	1,995

(1) The Company has recognized certain previously unrecognized Canadian tax assets in 2022 and 2021 as a result of the renunciation of certain tax benefits to subscribers pursuant to its December 2021 $8,000,000 and December 2020 $930,000 flow-through share offerings.

Summary of deferred income tax assets (liabilities)

	At December 31		At December 31
(in thousands)	2022		2021
Deferred income tax assets:
Property, plant and equipment, net	$	387	$	387
Post-employment benefits		314		331
Reclamation obligations		8,990		11,420
Non-capital tax loss carry forwards		20,070		16,910
Capital loss carry forward		9,483		6,862
Other		8,077		7,942
Deferred income tax assets-gross		47,321		43,852
Set-off against deferred income tax liabilities		(47,321)		(43,852)
Deferred income tax assets-per balance sheet	$	—	$	—
Deferred income tax liabilities:
Inventory	$	(759)	$	(755)
Property, plant and equipment, net		(40,757)		(42,322)
Investments-equity instruments and uranium		(9,483)		(6,862)
Other		(1,272)		(1,132)
Deferred income tax liabilities-gross		(52,271)		(51,071)
Set-off of deferred income tax assets		47,321		43,852
Deferred income tax liabilities-per balance sheet	$	(4,950)	$	(7,219)

Summary of deferred income tax liability continuity

(in thousands)	2022		2021
Balance-January 1	$	(7,219)	$	(9,192)
Recognized in income		2,269		1,995
Recognized in other liabilities (flow-through shares)		—		(22)
Recognized in other comprehensive income		—		—
Balance-December 31	$	(4,950)	$	(7,219)

Summary of deferred income tax assets not recognized

	At December 31		At December 31
(in thousands)	2022		2021
Deferred income tax assets not recognized
Property, plant and equipment	$	5,372	$	4,022
Tax losses-capital		55,704		58,312
Tax losses-operating		57,580		51,353
Tax credits		1,126		1,126
Other deductible temporary differences		2,653		5,023
Deferred income tax assets not recognized	$	122,435	$	119,836

Summary of Canadian tax losses and tax credits not recognized

	Expiry		At December 31		At December 31
(in thousands)	Date		2022		2021
Tax losses-gross		2025-2042	$	287,754	$	251,967
Tax benefit at tax rate of 26% - 27%				77,650		68,263
Set-off against deferred tax liabilities				(20,070)		(16,910)
Total tax loss assets not recognized			$	57,580	$	51,353
Tax credits		2025-2035		1,126		1,126
Total tax credit assets not recognized			$	1,126	$	1,126