INCOME AND MINING TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of deferred income tax recovery (expense)


	2018		2017		2016
United States	$	2,185	$	10,349	$	515
Foreign		585		5,020		3,234
Deferred tax benefit	$	2,770	$	15,369	$	3,749

Schedule of net income (loss) before tax


	2018		2017		2016
United States	$	(27,001)	$	(19,913)	$	(13,959)
Foreign		(20,639)		(6,090)		31,265
Net (loss) income before tax	$	(47,640)	$	(26,003)	$	17,306

Schedule of reconciliation of the tax provision at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the financial statement


Expected tax recovery at	2018		2017		2016
(Loss) income before income and mining taxes	$	(47,640)	$	(26,003)	$	17,306
Statutory tax rate		21%		35%		34%
US Federal and State tax (recovery) expense at statutory rate		(10,004)		(9,101)		5,884
Reconciling items:
Equity pickup in MSC		2,966		(16)		(4,533)
Deferred foreign income inclusion		5,963		21,002		—
Realized flow-through expenditures		2,100		—		—
Realized flow-through premium		(1,675)		—		—
Foreign tax credits		—		(16,628)		—
Tax rate changes		—		28,048		—
Adjustment for foreign tax rates		40		115		(501)
Other permanent differences		4,419		(1,761)		818
Unrealized foreign exchange rate (loss)/gain		(6,935)		2,469		5,972
NOL expires and revisions		(120)		(2,806)		(242)
Valuation allowance		476		(36,691)		(11,147)
Tax benefit	$	(2,770)	$	(15,369)	$	(3,749)

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities


	2018		2017
Deferred tax assets:
Net operating loss carryforward	$	55,515	$	72,078
Mineral Properties		62,345		59,905
Other temporary differences		15,198		862
Total gross deferred tax assets		133,058		132,845
Less: valuation allowance		(124,153)		(123,648)
Net deferred tax assets	$	8,905	$	9,197
Deferred tax liabilities:
Acquired mineral property interests		(15,331)		(17,627)
Total deferred tax liabilities	$	(15,331)	$	(17,627)
Total net deferred tax liability	$	(6,426)	$	(8,430)

Summary of changes in valuation allowance


For the year ended December 31,	Balance at beginning of period		Additions(a)		Deductions(b)		Balance at end of period
2018	$	123,648	$	12,232	$	(11,727)	$	124,153
2017		111,621		51,220		(39,193)		123,648
2016		122,768		1,430		(12,577)		111,621

(a)

The additions to valuation allowance mainly results from the Company and its subsidiaries incurring losses and exploration expenses for tax purposes which do not meet the more-likely-than-not criterion for recognition of deferred tax assets.

(b)

The reductions to valuation allowance mainly results from release of valuation allowance, expiration of the Company’s tax attributes and foreign exchange reductions of tax attributes in Canada, Mexico and Argentina.

Summary of company’s non operating losses that can be applied against future taxable profit


Country	Type of Loss	Amount		Expiry Period
United States(a)	Net-operating losses	$	135,348	2019-2038
Mexico	Net-operating losses		29,749	2019-2024
Canada(a)	Net-operating losses		38,728	2019-2038
Argentina(a)	Net-operating losses		34,001	2019-2023

(a)

The losses in the United States, Canada, and Argentina are part of multiple consolidating groups, and therefore, may be restricted in use to specific projects.