Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

(a) Income tax expense (benefit) 

	December 31, 2019 $’000			December 31, 2018 $’000
Current tax expense (benefit)
Current period		1,119			815
Deferred tax expense (benefit)
Current period		(1,009	)		(3,255	)
Prior period tax adjustments		188			-
Total income tax expense (benefit)	$	298		$	(2,440	)

The actual income tax provision differs from the expected amount calculated by applying the Canadian parent corporate tax rate to income before tax. These differences result from the following:

	December 31, 2019 $’000			December 31, 2018 $’000
Income (loss) before tax		(9,377	)	$	(10,286	)
Statutory income tax rate		25	%		25	%
Expected income tax (benefit)	$	(2,344	)	$	(2,572	)
Increase (decrease) resulting from:
Non-taxable items		(242	)		(200	)
Change in valuation allowance		1,335			411
Tax rate changes, tax rate differences, and changes in tax legislation		1,361			(287	)
Prior period tax adjustments		188			208
Total income tax expense (benefit)	$	298		$	(2,440	)

(b) Components of deferred tax assets and liabilities

	December 31, 2019 $’000			December 31, 2018 $’000
Deferred tax assets are attributable to the following:
Property, Plant and equipment		982			1,343
Loss carryforwards		15,998			13,943
Other		1,587			770
Valuation allowance		(13,613	)		(12,278	)
Deferred tax assets	$	4,954		$	3,778
Set-off of tax		(355	)		-
Net deferred tax asset		4,599			3,778

	December 31, 2019 $’000			December 31, 2018 $’000
Deferred tax liabilities are attributable to the following:
Mineral properties		(2,668	)		-
Long-term debt		(322	)		-
Other		(58	)		-
Deferred tax liabilities	$	(3,048	)	$	-
Set-off of tax		355			-
Net deferred tax liability		(2,693	)

(c) Loss carryforwards

The Company and its subsidiaries have tax loss carryforwards within the jurisdictions in which they operate. These loss carryforwards expire between 2023 and 2039:

	$’000
2021		81
2022		3
2023		1,073
2024 and after		16,597
Total unused non-capital losses	$	17,754