Income Taxes

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Income tax (recovery) expense during the years ended December 31, 2023 and 2022 differs from the amounts that would result from applying the combined Canadian federal and provincial income tax rate of 27% (2022 – 27%) to income (loss) before income taxes. These differences result from the following items:


	2023			2022
Income (loss) before income taxes	$	14,768		$	(98,407)
Combined Canadian federal and provincial income tax rate	27		%	27		%
Expected income tax expense (recovery)	3,987			(26,570)
Foreign exchange impact	(36,551)			(16,050)
Non-taxable income and non-deductible expenses	22,556			5,640
Impact of tax rate differences between jurisdictions	(20,276)			5,213
Change in estimates of prior year	4,493			2,750
Impact of Mexican inflation	(4,498)			(7,772)
Tax effect of changes in temporary differences for which no tax benefit has been recognized	16,708			33,505
Other	(535)			10,904
Total income tax (recovery) expense	$	(14,116)		$	7,620

Comprising:
Current tax expense	$	19,235		$	23,515
Deferred tax recovery	(33,351)			(15,895)
	$	(14,116)		$	7,620

25. INCOME TAXES (CONTINUED)

The significant components of the Company’s recognized deferred income tax assets and deferred income tax liabilities at December 31, 2023 and 2022 were as follows:


	2023		2022
Non-capital losses	$	66,912	$	49,821
Deductible temporary differences relating to:
Mineral properties, plant and equipment	36,591		19,085
Inventories	28,076		33,044
Reclamation and closure cost provisions	16,753		9,057
Accrued liabilities	16,211		12,399
Investments and loans and borrowings	11,440		6,366
Mining tax	10,071		9,992
Other	3,030		6,486
Total deferred income tax assets	$	189,084	$	146,250
Taxable temporary differences relating to:
Mineral properties, plant and equipment	$	(393,309)	$	(381,385)
Intercompany loan	(26,814)		(13,157)
Inventories	(10,799)		—
Derivatives	(1,855)		(6,590)
Other	(1,011)		(7,140)
Total deferred income tax liabilities	(433,788)		(408,272)
Net deferred income tax liability	$	(244,704)	$	(262,022)

The movements in the Company’s net deferred income tax liability during the years ended December 31, 2023 and 2022 were as follows:


	Note	2023		2022
Balance – beginning of year		$	(262,022)	$	(319,706)
Recognized in net income (loss)		33,351		15,895
Recognized in OCI		(4,313)		25,009
Recognized directly in equity	13(b)	(11,720)		—
Disposition of subsidiaries	5(a)	—		18,084
Adjustment to opening retained earnings	3(n)(i)	—		(1,304)
Balance – end of year		$	(244,704)	$	(262,022)

25. INCOME TAXES (CONTINUED)

The Company’s deductible temporary differences, unused tax losses and unused tax credits at December 31, 2023 and 2022 for which deferred income tax assets have not been recognized were as follows:


	2023		2022
Deductible temporary differences relating to:
Investments and loans and borrowings	$	110,279	$	66,450
Mineral properties, plant and equipment	79,102		43,215
Reclamation and closure cost provisions	70,277		77,160
Accrued receivables and liabilities	58,640		15,244
Suspended interest deduction	22,048		—
Derivatives	8,632		10,010
Other	11,032		22,259
Non-capital losses	334,623		325,065
Capital losses	39,493		34,381
	$	734,126	$	593,784

At December 31, 2023, the Company had the following estimated tax operating losses available to reduce future taxable income, including both losses for which deferred income tax assets are recognized and losses for which deferred income tax assets are not recognized as listed in the table above. The loss carryforwards expire as follows:


	2023
Canada (expire between 2035–2043)	$	290,731
Brazil (no expiry)	162,864
United States - California (expire between 2030–2040 or after)	82,957
Mexico (expire between 2025–2033)	77,167
	$	613,719