Income Taxes

12 Months Ended

Dec. 31, 2018

Disclosure Of Income Taxes [Abstract]

Income Taxes

19. INCOME TAXES

a) Rate reconciliation

Income tax expense differs from the amount that would result by applying the combined Canadian federal and provincial income tax rates to earnings before income taxes.

The following is a reconciliation of income taxes calculated at the combined Canadian federal and provincial statutory tax rate to the income tax expense for the years ended December 31, 2018 and 2017:

Years ended December 31,
		2018				2017
(Loss) earnings before income taxes	$		(12,396	)	$		20,688
Combined Canadian federal and provincial income tax rates			27.0	%			26.0	%
Expected income tax (recovery) expense			(3,347	)			5,379
Items that cause an increase (decrease):
Effect of different tax rates in foreign jurisdiction			(1,341	)			748
Non-deductible expenses and Mexico inflation adjustments			244				(199	)
Foreign exchange			4,733				(1,925	)
Change in prior year estimates			196				-
Mexican special mining duty			1,020				1,105
Withholding taxes			670				424
Change in unrecognized deferred income tax assets			(147	)			2,243
Other			(380	)			1,015
Income tax expense	$		1,648		$		8,790

b) Deferred tax assets and liabilities

The composition of the Company's net deferred income tax liabilities at December 31, 2018 and 2017, are as follows:

		December 31, 2018				December 31, 2017
Deferred tax assets:
Provision for site reclamation and closure	$		5,466		$		1,427
Non-capital losses			6,017				-
			11,483				1,427
Deferred tax liabilities:
Mineral properties, plant and equipment, exploration and evaluation			(13,004	)			(5,186	)
Mexican special mining duty			(4,782	)			(1,613	)
Other			(5,130	)			(2,600	)
			(22,916	)			(9,399	)
Deferred tax liabilities, net	$		(11,433	)	$		(7,972	)

	Note		December 31, 2018				December 31, 2017
Deferred tax liability, opening		$		7,972		$		3,505
Acquisition of mines	5			3,617				-
Deferred tax (recovery) expense charged to earnings during the year				(65	)			4,467
Other				(91	)			-
Deferred tax liability, closing		$		11,433		$		7,972

The Company's unrecognized tax losses, deductible temporary differences, and tax credits at December 31, 2018 and 2017, are as follows:

		December 31, 2018			December 31, 2017
Non-capital losses	$		114,700	$		90,200
Mineral properties, plant and equipment, exploration and evaluation			328			114
Share issuance costs			4,422			3,657
	$		119,450	$		93,971

c) Non-capital losses

At December 31, 2018, the Company has losses for income tax purposes in Canada, US and Mexico of $47,728 (December 31, 2017 - $42,635), $9,810 (December 31, 2017 - $nil) and $71,113 (December 31, 2017 - $55,977), respectively, which may be used to reduce future taxable income. The Canadian losses, if not utilized, will expire beginning 2024 through to 2038, the US losses, if not utilized, will expire beginning 2019 through 2038, and the Mexican losses, if not utilized, will expire beginning 2019 through to 2028.