Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

A reconciliation of the income tax expense to the amount calculated using the Company’s combined Canadian federal and provincial statutory income tax rate of 27% (2022 – 27%) is as follows:


	Year ended December 31,
	2023			2022
Net income in the year before tax	$	112,351		$	126,383
Tax rate	27		%	27		%
Income tax expense at statutory rate	$	30,335		$	34,123
Tax effect of:
Difference in tax rate of foreign jurisdictions	(11,318)			(15,858)
Non-taxable items	(10,740)			(5,618)
Change in temporary differences not previously recognized	2,153			8,762
Withholding taxes and other	7,617			1,907
Income tax expense	$	18,047		$	23,316

Components of Income Tax Expense


	Year ended December 31,
	2023		2022
Current income tax:
Relating to current income tax charge	$	15,992	$	15,043
Deferred income tax:

Relating to origination and reversal of temporary differences	2,055		8,273
Income tax expense recognized in net income	$	18,047	$	23,316
Income tax expense recognized in other comprehensive income	1,262		523
Total income tax expense	$	19,309	$	23,839

Schedule of Deferred Tax Assets and Liabilities

The general movement in the deferred income tax liabilities is as follows:


	Year ended December 31,
	2023		2022
At the beginning of the year	$	(6,229)	$	2,315
Deferred income tax expense	(2,055)		(8,273)
Income tax expense recognized in OCI	(1,262)		(523)
Foreign exchange	(2)		252
At the end of the year	$	(9,548)	$	(6,229)

Recognized deferred tax and assets and liabilities consist of the following:


	December 31, 2023		December 31, 2022
Deferred tax assets:
Non-capital losses	$	5,655	$	2,546
Foreign exchange	—		2,087
Other	8,563		4,592
Mine closure and rehabilitation provision	4,070		3,381
Lease liabilities	2,805		1,511
	21,093		14,117
Deferred tax liabilities:
Mineral properties, plant and equipment	(15,566)		(9,364)
Loans and borrowings	(10,045)		(9,321)
Foreign exchange	(3,083)		—

Loans and borrowings	(1,947)		(1,661)
	(30,641)		(20,346)

Net deferred income tax liabilities	$	(9,548)	$	(6,229)

Presentation on Consolidated Statements of Financial Position
Deferred tax assets	1,315		—
Deferred tax liabilities	$	(10,863)	$	(6,229)

Schedule of Unrecognized Deductible Temporary Differences

Deferred tax assets of $35.1 million (December 31, 2022 - $30.4 million) have not been recognized for the following deductible temporary differences as it is not probable that the benefits of these temporary differences will be realized:


	Year ended December 31, 2023				Year ended December 31, 2022
	Brazil		Canada		Brazil		Canada

Mineral properties, plant and equipment	39,959		1,150		37,077		969
Non-capital losses	—		74,238		—		72,535
Other	—		33,731		—		18,100
	$	39,959	$	109,119	$	37,077	$	91,604