Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Detailed Information About Components Of Tax Expense Income

Income tax expense differs from the amount that would result from applying Canadian federal and provincial income tax rates of 27% (2018 – 27%) to earnings before income taxes. These differences result from the following items:


	2019			2018
Loss before income taxes	$	(13,186	)	$	(37,070	)
Canadian federal and provincial income tax rates		27%			27%
Expected income tax recovery based on the above rates		(3,560	)		(10,009	)
Non-deductible expenses		3,000			3,250
Non-taxable bargain purchase gain from Mesquite Acquisition		-			(176	)
Impairment and disposition of Elk Gold		536			2,679
Change in fair value of derivative liabilities		10,310			(5,394	)
Repayment of long-term debt		1,448			-
Deconsolidation of Solaris		1,008			-
Disposition of discontinued operation		-			(3,761	)
Tax effect of deferred tax assets for which no tax benefit has been recognized		5,238			8,097
Foreign exchange and other		(10,842	)		7,649

Total tax expense		7,138			2,335

Current tax expense		7,250			468
Deferred tax expense (recovery)		(112	)		1,867

Total tax expense	$	7,138		$	2,335

Disclosure Of Detailed Information About Components Of Deferred Tax Assets and Liabilities

The significant components of the Company’s recognized net deferred tax assets and liabilities are as follows:


	December 31, 2019			December 31, 2018

Non-capital losses	$	11,698		$	7,559
Mineral property, plant and equipment		4,727			3,691
Other		1,290			1,671
Total deferred tax assets	$	17,715		$	12,921

Mineral properties, plant and equipment	$	(18,456	)	$	(16,800	)
Other		(9,971	)		(4,609	)
Total deferred tax liabilities	$	(28,427	)	$	(21,409	)

Net deferred tax liability	$	(10,712	)	$	(8,488	)

Disclosure of Detailed Information About In Deferred Tax Assets And Liabilities Explanatory

The movement in the deferred tax assets and liabilities during the year is as follows:



Balance – December 31, 2017	(7,685	)
Recognized in net loss	(1,867	)
Acquisition of Mesquite	1,064

Balance – December 31, 2018	(8,488	)
Recognized in net loss	112
Recognized in equity component of Convertible Notes	(2,336	)

Balance – December 31, 2019	(10,712	)

Disclosure Of Detailed Information About Net Deferred Tax Assets And Liabilities

A reconciliation of net deferred tax assets and liabilities to the amounts presented in the consolidated statements of financial position follows:


	December 31, 2019			December 31, 2018
Deferred tax asset		-			1,064
Deferred tax liability		(10,712	)		(9,552	)

Net deferred tax liability		(10,712	)		(8,488	)

Disclosure Of Detailed Information About Deductible Temporary Differences Unused Tax Losses And Unused Tax Credits For Which Deferred Tax Assets Not Recognized

Deductible temporary differences, unused tax losses and unused tax credits for which deferred tax assets have not been recognized are as follows:


	December 31, 2019		December 31, 2018
Non-capital losses	$	41,647	$	58,304
State non-capital losses		41,025		42,325
Mineral properties, plant and equipment		18,735		31,141
Share issue costs		4,522		4,976
Inventory		27,422		13,079
Unrealized foreign exchange losses on investment and advances		38,948		53,850
Reclamation obligation		28,609		14,018
State alternative minimum tax credit		6,525		6,525
Capital losses		36,570		21,501
Interest expense		16,557		18,024
Other		2,100		5,456
	$	262,660	$	269,199

Disclosure Of Detailed Information About Non Capital Loss Applied To Reduce Future Taxable Income

The

non-capital

losses may be applied to reduce future years’ taxable income. The loss carryforwards expire as follows:


	December 31, 2019		December 31, 2018
Brazil (no expiry)	$	6,929	$	16,692
Mexico (expire between 2019-2028)		-		15,988
Canada (expire between 2026-2039)		34,719		23,420
Peru (expire between 2019-2022)		-		1,544
Chile (no expiry)		-		660

	$	41,648	$	58,304