Income and Mining Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

INCOME AND MINING TAXES

INCOME AND MINING TAXES

The components of Income (loss) before income taxes are below:

	Year Ended December 31,
In thousands	2025		2024		2023
United States	$	403,735	$	50,194	$	(107,021)
Foreign	278,803		76,156		38,565
Total	$	682,538	$	126,350	$	(68,456)

The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:

	Year Ended December 31,
In thousands	2025		2024		2023
Current:
United States	$	(637)	$	(145)	$	981
United States — State mining taxes	(33,269)		(11,256)		(7,047)
United States — Foreign withholding tax	(22)		(33)		(119)
Canada	(5,169)		(1,147)		(848)
Mexico	(215,872)		(63,604)		(30,222)
Deferred:
United States	138,893		149		305
United States — State mining taxes	3,479		(1,778)		(1,076)
Canada	(4,798)		(376)		—
Mexico	20,729		10,740		2,870
Income tax (expense) benefit	$	(96,666)	$	(67,450)	$	(35,156)

The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

	Year Ended December 31,
In thousands	2025		%		2024		%		2023		%
U.S. federal statutory tax rate	$	(143,428)	21.0	%	$	(26,534)	21.0	%	$	14,376	21.0	%
State income and mining taxes, net of federal benefit(1)	(37,331)		5.5		(11,313)		9.0		(1,468)		(2.2)
Foreign tax effects
Mexico
Foreign tax rate differences	(30,341)		4.4		(11,253)		8.9		(5,848)		(8.6)
Foreign permanent differences	1,893		(0.3)		(1,384)		1.1		(1,190)		(1.7)
Mining taxes, net of income tax benefit	(27,276)		4.0		(8,865)		7.0		(6,513)		(9.5)
Change in valuation allowance	4,520		(0.7)		—		—		—		—
Foreign withholding taxes	(10,821)		1.6		(6,900)		5.5		—		—
Foreign exchange rates	(38,893)		5.7		1,434		(1.1)		1,172		1.7
Foreign inflation and indexing	5,724		(0.8)		2,230		(1.8)		2,858		4.2
Uncertain tax positions	(28,820)		4.2		—		—		—		—
Sale of non-core assets	—		—		—		—		(1,322)		(1.9)
Enactment of 1% increase in Mexico special mining duty tax	—		—		(1,696)		1.3		—		—
Other, net	2,967		(0.4)		(175)		0.1		(547)		(0.8)
Canada
Foreign tax rate difference	(2,954)		0.4		(2,434)		1.9		(2,015)		(3.0)
Provincial tax	5,907		(0.9)		4,868		(3.9)		4,029		5.9
Canadian flow through shares permanent	(3,802)		0.6		(7,246)		5.7		(3,448)		(5.0)
Change in valuation allowance	(9,481)		1.4		(3,746)		3.0		(5,986)		(8.8)
Foreign withholding taxes	(3,460)		0.5		(1,523)		1.2		(848)		(1.2)
Other	(3,427)		0.5		40		—		369		0.5
Other foreign jurisdictions
Other	(420)		0.1		(456)		0.4		(117)		(0.2)
Effect of cross border tax laws
Subpart F income	(32)		—		(1,345)		1.1		(758)		(1.1)
Change in valuation allowance	208,938		(30.6)		4,011		(3.2)		(30,242)		(44.2)
Nondeductible items
Percentage depletion	21,092		(3.1)		6,974		(5.5)		5,649		8.3
Equity compensation	1,321		(0.2)		(1,205)		1.0		(780)		(1.1)
Other nondeductible items	(2,185)		0.3		(769)		0.6		(1,502)		(2.2)
Other adjustments
Effect of tax rate changes	—		—		—		—		(1,659)		(2.4)
Other	(6,357)		1.0		(163)		0.1		634		0.9
Income and mining tax (expense) benefit	$	(96,666)	14.2	%	$	(67,450)	53.4	%	$	(35,156)	(51.4)	%

(1)State mining taxes in South Dakota, Nevada, and Alaska made up the majority (greater than 50 percent) of the state tax effect.

The following table provides a reconciliation of cash taxes paid for income and mining taxes:

	Year Ended December 31,
In thousands	2025		2024		2023
Federal	$	—	$	700	$	—
State
South Dakota	15,098		10,800		5,000
All other states	895		—		—
Foreign
Mexico	161,041		31,700		29,800
Canada	1,432		1,900		200
Total net (refunds) payments	$	178,466	$	45,100	$	35,000

At December 31, 2025 and 2024, the significant components of the Company’s deferred tax assets and liabilities are below:

	Year Ended December 31,
In thousands	2025		2024
Deferred tax liabilities:
Property, plant, and equipment	$	59,006	$	5,529
Mineral properties	261,588		—
Other long-term liabilities	10,103		—
	330,697		5,529
Deferred tax assets:
Net operating loss carryforwards	288,122		304,244
Mineral properties	—		50,824
Mining royalty tax	53,529		8,314
Capital loss carryforwards	17,089		16,910
Asset retirement obligation	58,905		49,306
Accrued expenses	15,323		18,117
Tax credit carryforwards	12,274		13,620
Other long-term assets	—		30,612
	445,242		491,947
Valuation allowance	(303,518)		(490,044)
	141,724		1,903
Net deferred tax liabilities	$	188,973	$	3,626

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A – Risk Factors”.

The Company has historically provided a valuation allowance against its U.S. net deferred tax assets. In 2025, the Company released $209.8 million of valuation allowance against its U.S. net deferred tax assets, resulting in a non-cash deferred tax benefit. The $209.8 million valuation allowance release is composed of $73.3 million related to current year income and $136.5 million related to forecasted future year income. The timing of this valuation allowance release was primarily due to the cumulative income position for the most recent three-year period and projected future earnings.

The Company continues to maintain a valuation allowance against approximately $52.4 million of U.S. federal and state deferred tax assets as of December 31, 2025, because the Company has concluded that it is not more likely than not to be realized.

The exact timing and amount of any valuation allowance release are subject to change, depending upon the level of profitability that the Company is able to achieve and the net deferred tax assets available.

Based upon this analysis, the Company has recorded valuation allowances as follows:

	Year Ended December 31,
In thousands	2025		2024
U.S.	$	52,394	$	268,119
Canada	216,711		200,319
Mexico	12,594		408
New Zealand	21,643		21,013
Other	176		185
	$	303,518	$	490,044

The Company has the following tax attribute carryforwards at December 31, 2025, by jurisdiction:

In thousands	U.S.		Canada		Mexico		New Zealand		Other		Total
Regular net operating losses	$	522,637	$	480,612	$	4,971	$	77,861	$	787	$	1,086,868
Expiration years	2026-2037, Indefinite		2028-2044		2029-2036		Indefinite		2026-2030
Capital losses	55,885		26,363		—		—		—		82,248
Foreign tax credits	10,864		—		—		—		—		10,864

As of December 31, 2025, for U.S. income tax purposes, the Company has federal and state net operating loss carryforwards of $522.6 million and $402.0 million, respectively. U.S. net operating loss carryforwards of $313.8 million arising before December 31, 2017 have a 20-year expiration period, the earliest of which could expire in 2026. U.S. net operating loss carryforwards of $208.8 million arising in 2018 and future periods have an indefinite carryforward period. Foreign tax credits expire if unused beginning in 2026.

The utilization of U.S. net operating loss carryforwards, tax credit carryforwards, and recognized built-in losses may be subject to limitation under the rules regarding a change in stock ownership as determined by the Internal Revenue Code and state tax laws. Section 382 of the Internal Revenue Code of 1986, as amended, imposes annual limitations on the utilization of net operating loss carryforwards, tax credit carryforwards, and certain built-in losses upon an ownership change as defined under that Section. Generally, an ownership change may result from transactions that increase the aggregate ownership of certain stockholders in the Company’s stock by more than 50 percentage points over a three-year testing period. If the Company experiences an ownership change, an annual limitation would be imposed on certain of the Company’s tax attributes, including net operating losses and certain other losses, credits, deductions or tax basis. Management has determined that the Company experienced ownership changes during 2002, 2003, 2007, and 2015 for purposes of Section 382. Based on management’s calculations, the Company does not expect any of its U.S. tax attributes to expire unused as a result of the Section 382 annual limitations. However, the annual limitations may impact the timeframe over which the net operating loss carryforwards can be used, potentially impacting cash tax liabilities in a future period. The U.S. federal tax credits and state net operating losses may potentially be limited as well. The Company continues to maintain a valuation allowance of $52.4 million on U.S. net deferred tax assets since it is more likely than not that the related tax benefits will not be realized.

The Company may also experience ownership changes in the future as a result of subsequent shifts in our stock ownership. As a result, if the Company earns U.S. federal taxable income, it may be limited in the ability to (1) recognize current deductions on built-in loss assets and (2) offset this income with our pre-change net operating loss carryforwards and other tax credit carryforwards, which may be subject to limitations, potentially resulting in increased future tax liability to us. Under the Tax Cuts and Jobs Act of 2017 (“TCJA”), federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such federal net operating losses is limited to 80% of future taxable income.

The Company intends to continue repatriating certain earnings from its Mexican operations and has provided deferred income taxes on the planned distributions.

A reconciliation of the beginning and ending amount related to unrecognized tax benefits is below (in thousands):

Unrecognized tax benefits at December 31, 2023	$	2
Gross increase to current period tax positions	$	—
Gross increase to prior period tax positions	$	—
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations	$	(2)
Unrecognized tax benefits at December 31, 2024	$	—
Gross increase to current period tax positions	$	—
Gross increase to prior period tax positions	$	34,446
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations	$	—
Unrecognized tax benefits at December 31, 2025	$	34,446

At December 31, 2025, 2024, and 2023, $34.4 million, nil, and $2 thousand, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company’s effective tax rate.

The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and, in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.

The Company files income tax returns in various U.S. federal and state jurisdictions, in all identified foreign jurisdictions, and various others. The statute of limitations remains open from 2022 for the U.S. federal jurisdiction, for 2016 and from 2019 for the Mexico federal jurisdiction, and from 2019 for certain other foreign jurisdictions. Our 2016 federal tax return is currently under audit in Mexico. As a result of statutes of limitations that will begin to expire within the next 12 months in various jurisdictions and possible settlement of audit-related issues with taxing authorities in various jurisdictions, the Company believes that the total amount of its unrecognized income tax benefit will decrease between $25.0 million and $26.0 million in the next 12 months.

The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of $15.3 million, nil, and nil at December 31, 2025, 2024, and 2023, respectively.

In 2021, the Organization for Economic Co-operation and Development (OECD) published Pillar Two Model Rules defining a global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Effective January 1, 2024, a number of countries have proposed or enacted legislation to implement core elements of the Pillar Two proposal.

As a result of business expansions, including the closing of the SilverCrest Transaction in the first quarter of 2025, the Company expects to fall within the scope of the Pillar Two rules as of January 1, 2025. The Company will continue to monitor developments and evaluate the potential impact on future periods. At this time, based on the Company’s current analysis of the Pillar Two provisions and because the Company primarily does business in jurisdictions with a tax rate greater than 15%, the Company does not anticipate a material impact to its Consolidated Financial Statements.