Income Taxes

12 Months Ended

Dec. 31, 2024

13.INCOME TAXES

The income tax recovery balance from continuing operations consists of:



(in thousands)	2024		2023

Deferred income tax:
Origination of temporary differences	$	211	$	2,578
Prior year over (under) provision		25		(235)
Income tax recovery	$	236	$	2,343

The Company operates in multiple industries and jurisdictions, and the related income is subject to varying rates of taxation. The combined Canadian tax rate reflects the federal and provincial tax rates in effect in Ontario, Canada for each applicable year. A reconciliation of the combined Canadian tax rate to the Company’s effective rate of income tax is as follows:



(in thousands)	2024			2023

(Loss) Income before taxes – continuing operations	$	(91,826)		$	87,021
Combined Canadian tax rate		26.50	%		26.50	%
Income tax recovery (expense) at combined rate		24,334			(23,061)

Difference in tax rates		12,224			(6,536)
Non-deductible amounts		(12,864)			(5,042)
Non-taxable amounts		2,294			33,314
Change in deferred tax assets not recognized		(25,485)			3,925
Change in tax rates, legislation		(112)			(80)
Prior year under provision		25			(235)
Other		(180)			58
Income tax recovery	$	236		$	2,343

The deferred income tax assets (liabilities) balance reported on the balance sheet is comprised of the temporary differences as presented below:



	At December 31		At December 31
(in thousands)	2024		2023

Deferred income tax assets:
Property, plant and equipment, net	$	387	$	387
Post-employment benefits		268		295
Reclamation obligations		11,080		11,699
Non-capital tax loss carry forwards		13,806		18,489
Capital loss carry forward		17,738		25,088
Other		10,155		9,348
Deferred income tax assets-gross		53,434		65,306
Set-off against deferred income tax liabilities		(53,434)		(65,306)
Deferred income tax assets-per balance sheet	$	—	$	—

Deferred income tax liabilities:
Inventory	$	(850)	$	(852)
Property, plant and equipment, net		(35,872)		(40,707)
Investments-equity instruments and uranium		(17,738)		(25,088)
Other		(1,345)		(1,266)
Deferred income tax liabilities-gross		(55,805)		(67,913)
Set-off of deferred income tax assets		53,434		65,306
Deferred income tax liabilities-per balance sheet	$	(2,371)	$	(2,607)

The deferred income tax liability continuity summary is as follows:



(in thousands)	2024		2023

Balance-January 1	$	(2,607)	$	(4,950)
Recognized in income		236		2,343
Balance-December 31	$	(2,371)	$	(2,607)

Management believes that it is not probable that sufficient taxable profit will be available in future years to allow the benefit of the following deferred tax assets to be utilized:



	At December 31		At December 31
(in thousands)	2024		2023

Deferred income tax assets not recognized
Property, plant and equipment	$	9,323	$	6,985
Tax losses-capital		44,381		38,445
Tax losses-operating		86,494		69,919
Tax credits		2,500		1,126
Other deductible temporary differences		1,127		2,881
Deferred income tax assets not recognized	$	143,825	$	119,356

The expiry dates of the Company’s Canadian operating tax losses and tax credits are as follows:



	Expiry		At December 31		At December 31
(in thousands)	Date		2024		2023

Tax losses-gross		2025-2044	$	370,207	$	324,965

Tax benefit at tax rate of 26% - 27%				100,300		88,408
Set-off against deferred tax liabilities				(13,805)		(18,489)
Total tax loss assets not recognized			$	86,495	$	69,919

Tax credits		2025-2036		1,127		1,126
Total tax credit assets not recognized			$	1,127	$	1,126