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Note 20 - Income Taxes
12 Months Ended
Dec. 31, 2023
Statement Line Items [Line Items]  
Disclosure of income tax [text block]

20.

INCOME TAXES

 

The income taxes recognized in the consolidated statements of income and comprehensive income are as follows:

 

  

For the year ended

 
  

December 31,

  

December 31,

 
  

2023

  

2022

 
   $   $ 

Deferred tax expense

  (5,577)  (371)

Total income tax expense

  (5,577)  (371)

 

The provision for income taxes reported differs from the amounts computed by applying statutory Canadian federal and provincial tax rates to the loss before tax provision due to the following:

 

  

For the year ended

 
  

December 31,

  

December 31,

 
  

2023

  

2022

 
   $   $ 

Income for the year before income taxes

  54,236   18,015 

Statutory tax rate

  27%  27%
         

Income tax (expense) computed at statutory rates

  (14,644)  (4,864)

Share issuance costs

  1,050   - 

Share based compensation

  (762)  (878)

Mexican inflationary adjustments

  788   2,429 

Differing effective tax rate on loss in foreign jurisdiction

  (1,904)  (1,156)

Equity accounted earnings from Investment in Juanicipio

  22,398   13,060 

Withholding tax on planned foreign earnings repatriation

  (6,123)  (2,921)

Flow-through shares obligations

  (3,814)  - 

Unrecognized deferred tax assets

  (21,072)  (7,239)

Impact of foreign exchange and other

  17,055   1,198 

Other

  1,451   - 

Total income tax (expense) benefit

  (5,577)  (371)

 

The approximate tax effect of each item that gives rise to the Company’s unrecognized and recognized deferred tax assets and liabilities as at December 31, 2023 and 2022 are as follows:

 

 

  

December 31,

  

December 31,

 
  

2023

  

2022

 
  

$

  

$

 

Deferred income tax assets

        

Non-capital losses

  3,232   3,993 
   3,232   3,993 
         

Deferred income tax liabilities

        

Property and equipment

  (819)  (826)

Investment in Juanicipio

  (6,123)  (5,880)

Financing costs

  (26)  - 

Investments

  (137)  (208)

Exploration and evaluation assets

  (4,625)  - 
   (11,730)  (6,914)
         

Net deferred income tax liability

  (8,498)  (2,921)

 

The Company's movement of net deferred tax liabilities is described below:

 

  

December 31,

  

December 31,

 
  

2023

  

2022

 
   $   $ 

At January 1

  (2,921)  (2,557)

Deferred income tax (expense) benefit through income statement

  (5,577)  (371)

Deferred income tax benefit through OCI

  -   7 

At December 31

  (8,498)  (2,921)

 

The Company has the following deductible temporary differences for which no deferred tax assets have been recognized:

 

  

December 31,

      

December 31,

 
  

2023

  

expiry dates

  

2022

 
   $       $ 

Non-capital losses

  163,349   2024-2043   118,353 

Exploration and evaluation assets

  16,559  

no expiry

   15,915 

Financing fees

  5,109   2044-2046   3,242 

Other

  3,002  

no expiry

   1,141 

Total

  188,019       138,651 

 

At December 31, 2023, the Company has non-capital loss carry forwards in Canada aggregating $61,207 ( December 31, 2022: $57,196), which expire over the period between 2026 and 2043, available to offset future taxable income in Canada. None of these deductible temporary differences have been recognized.     

 

At December 31, 2023, the Company has non-capital loss carry forwards in Mexico aggregating $100,880 ( December 31, 2022: $59,943) which expire over the period between 2023 and 2032, available to offset future taxable income in Mexico. None of these deductible temporary differences have been recognized.

 

At December 31, 2023, the Company has non-capital loss carry forwards in the United States of America aggregating $1,262 ( December 31, 2022: $1,214), available to offset future taxable income in the United States of America. None of these deductible temporary differences have been recognized.