INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes Tables Abstract

Income tax recovery

(in thousands)		2018		2017
Deferred income tax:
Origination of temporary differences	$	4,520	$	1,930
Tax benefit-previously unrecognized tax assets		3,852		3,307
Prior year over (under) provision		(78)		(71)
		8,294		5,166
Income tax recovery	$	8,294	$	5,166

Reconciliation of the effective rate of income tax

(in thousands)		2018		2017
Loss before taxes from continuing operations	$	(38,371)	$	(24,620)
Combined Canadian tax rate		26.50%		26.50%
Income tax recovery at combined rate		10,168		6,524
Difference in tax rates		7,573		2,096
Non-deductible amounts		(5,996)		(2,237)
Non-taxable amounts		1,439		1,795
Previously unrecognized deferred tax assets (1)		3,852		3,307
Renunciation of tax attributes-flow through shares		(1,589)		(2,827)
Change in deferred tax assets not recognized		(7,488)		(3,743)
Prior year over (under) provision		(78)		(71)
Other		413		322
Income tax recovery	$	8,294	$	5,166

Deferred income tax assets (liabilities)

		At December 31		At December 31		At January 1
(in thousands)		2018		2017		2017
Deferred income tax assets:
Property, plant and equipment, net	$	381	$	977	$	889
Post-employment benefits		600		617		645
Reclamation obligations		8,798		8,296		8,217
Other liabilities		-		-		237
Tax loss carry forwards		13,346		11,718		11,790
Other		8,164		7,522		6,081
Deferred income tax assets-gross		31,289		29,130		27,859
Set-off against deferred income tax liabilities		(31,289)		(29,130)		(27,859)
Deferred income tax assets-per balance sheet	$	-	$	-	$	-
Deferred income tax liabilities:
Inventory	$	(742)	$	(741)	$	(744)
Investments		29		(651)		(368)
Investments in associates		(23)		14		(80)
Property, plant and equipment, net		(42,313)		(44,042)		(45,581)
Other		(1,203)		(1,132)		(1,254)
Deferred income tax liabilities-gross		(44,252)		(46,552)		(48,027)
Set-off of deferred income tax assets		31,289		29,130		27,859
Deferred income tax liabilities-per balance sheet	$	(12,963)	$	(17,422)	$	(20,168)

Deferred income tax liability continuity

(in thousands)		2018		2017
Balance-January 1	$	(17,422)	$	(20,168)
Recognized in income (loss)		8,294		5,166
Recognized in other liabilities (flow-through shares)		(3,835)		(2,420)
Balance-December 31	$	(12,963)	$	(17,422)

Deferred income tax assets not recognized

		At December 31		At December 31		At January 1
(in thousands)		2018		2017		2017
Deferred income tax assets not recognized
Property, plant and equipment	$	10,439	$	8,472	$	6,678
Tax losses – capital		66,527		66,763		36,981
Tax losses – operating		29,220		27,530		26,628
Tax credits		1,126		1,125		1,154
Other deductible temporary differences		2,220		826		783
Deferred income tax assets not recognized	$	109,532	$	104,716	$	72,224

Geographic split of tax losses and tax credits not recognized

	Expiry		At December 31		At December 31
(in thousands)	Date		2018		2017
Tax losses - gross
Canada	2025-2038	$	158,437	$	147,046
Tax losses - gross			158,437		147,046
Tax benefit at tax rate of 25% - 27%			42,566		39,248
Set-off against deferred tax liabilities			(13,346)		(11,718)
Total tax loss assets not recognized		$	29,220	$	27,530
Tax credits
Canada	2025-2035		1,126		1,125
Total tax credit assets not recognized		$	1,126	$	1,125