INCOME AND MINING TAXES

12 Months Ended

Dec. 31, 2021

INCOME AND MINING TAXES.

INCOME AND MINING TAXES

NOTE 19 INCOME AND MINING TAXES

The Company’s deferred income and mining tax benefit consisted of:

	2021		2020		2019
United States	$	387	$	817	$	2,420
Foreign		6,928		573		1,424
Deferred tax benefit	$	7,315	$	1,390	$	3,844

The Company’s net loss before income and mining tax consisted of:

	2021		2020		2019
United States	$	(24,808)	$	(127,524)	$	(22,319)
Foreign		(39,391)		(26,191)		(41,272)
Loss before income and mining taxes	$	(64,199)	$	(153,715)	$	(63,591)

A reconciliation of the tax provision for 2021, 2020 and 2019 at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the financial statements is computed as follows:

Expected tax recovery at	2021		2020		2019
Loss before income and mining taxes	$	(64,199)	$	(153,715)	$	(63,591)
Statutory tax rate		21%		21%		21%
US Federal and State tax expense at statutory rate		(13,482)		(32,280)		(13,354)
Reconciling items:
Equity pickup in MSC		1,326		374		2,626
Deferred foreign income inclusion		—		795		598
Realized flow-through expenditures		6,148		496		3,150
Realized flow-through premium		(3,486)		(338)		(2,954)
Adjustment for foreign tax rates		(3,039)		(2,043)		(200)
Other permanent differences		9,353		(2,546)		8,421
NOL expires and revisions		241		1,066		810
Valuation allowance		(4,377)		33,086		(2,941)
Income and mining tax recovery	$	(7,315)	$	(1,390)	$	(3,844)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as at December 31, 2021 and 2020 respectively are presented below:

	2021		2020
Deferred tax assets:
Net operating loss carryforward	$	70,830	$	66,085
Mineral Properties		59,426		66,038
Other temporary differences		29,009		30,999
Total gross deferred tax assets		159,265		163,122
Less: valuation allowance		(149,921)		(154,298)
Net deferred tax assets	$	9,344	$	8,824
Deferred tax liabilities:
Acquired mineral property interests		(9,344)		(12,637)
Total deferred tax liabilities	$	(9,344)	$	(12,637)
Deferred income and mining tax liability	$	—	$	(3,813)

The Company reviews the measurement of its deferred tax assets at each balance sheet date. On the basis of available information at December 31, 2020, the Company has provided a valuation allowance for certain of its deferred assets where the Company believes it is more likely than not that some portion or all of such assets will not be realized.

The table below summarizes changes to the valuation allowance:

For the year ended December 31,	Balance at beginning of year		Additions(a)		Deductions(b)		Balance at end of year
2021	$	154,298	$	4,058	$	(8,435)	$	149,921
2020		121,212		39,794		(6,708)		154,298
2019		124,153		2,104		(5,045)		121,212

(a) The additions to valuation allowance mainly result 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 result from release of valuation allowance, expiration of the Company’s tax attributes, foreign exchange reductions of tax attributes in Canada, Mexico and Argentina and inflationary adjustments to tax attributes in Argentina.

As at December 31, 2021 and 2020, the Company did not have any income-tax related accrued interest and tax penalties.

The following table summarizes the Company’s losses that can be applied against future taxable profit:

Country	Type of Loss	Amount		Expiry Period
United States(a)	Net-operating losses	$	190,271	2027-Unlimited
Mexico	Net-operating losses		45,641	2022-2030
Canada(a)	Net-operating losses		30,720	2025-2040
Argentina(a)	Net-operating losses		26,367	2021-2025

(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.

The Company or its subsidiaries file income tax returns in the United States, Canada, Mexico, and Argentina. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction:

United States: 2017 to 2020

Canada: 2013 to 2020

Mexico: 2016 to 2020

Argentina: 2016 to 2020