INCOME AND MINING TAXES

12 Months Ended

Dec. 31, 2024

INCOME AND MINING TAXES.

INCOME AND MINING TAXES

NOTE 19 INCOME AND MINING TAXES

The Company’s income and mining tax (recovery) expense consisted of:

	Year ended December 31,
	2024		2023		2022
United States	$	2,073	$	971	$	—
Foreign		2,231		(4,107)		7,662
Current tax (recovery) expense	$	4,304	$	(3,136)	$	7,662
United States	$	(195)	$	—	$	—
Foreign		(7,157)		36,995		(1,856)
Deferred tax (recovery) expense	$	(7,352)	$	36,995	$	(1,856)
United States	$	1,878	$	971	$	—
Foreign		(4,926)		32,888		5,806
Total income and mining tax (recovery) expense	$	(3,048)	$	33,859	$	5,806

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

	Year ended December 31,
	2024		2023		2022
United States	$	6,130	$	(7,702)	$	(20,618)
Foreign		(52,869)		74,738		(59,670)
(Loss) income before income and mining taxes	$	(46,739)	$	67,036	$	(80,288)

A reconciliation of the tax provision for 2024, 2023 and 2022 at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the consolidated financial statements is computed as follows:

		Year ended December 31,
Expected tax expense at	2024		2023		2022
(Loss) income before income and mining taxes	$	(46,739)	$	67,036	$	(80,288)
Statutory tax rate		21%		21%		21%
US Federal and State tax (recovery) expense at statutory rate		(9,815)		14,078		(16,860)
Reconciling items:
Equity loss (income) from investments		10,555		15,310		(583)
Deconsolidation of McEwen Copper Inc.		—		(46,644)		—
Disposal of McEwen Copper Inc.'s shares		(1,531)		6,179		—
Deferred tax liability on investment in associate		—		38,340		—
Realized flow-through expenditures		4,017		3,570		2,169
Realized flow-through premium		(2,304)		(3,423)		(2,011)
Withholding tax		426		632		—
Adjustment for foreign tax rates		(3,746)		(13,769)		(8,384)
Permanent differences		(2,014)		9,909		9,353
Foreign exchange on translation of books		(4,157)		42		4,308
Losses expired		3,330		8,282		1,876
Proceeds received from sale of NSR		—		—		8,072
Adjustments in relation to prior years		367		(629)		7,760
Current and deferred mining tax liabilities		2,283		1,455		116
Movement in valuation allowance		(505)		821		(10)
Other		46		(294)		—
Income and mining tax (recovery) expense	$	(3,048)	$	33,859	$	5,806

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, 2024 and 2023, respectively, are presented below:

	Year ended December 31,
	2024		2023
Deferred tax assets:
Net operating loss carryforward	$	61,135	$	57,983
Mineral properties		52,228		52,471
Other temporary differences		22,259		21,857
Total gross deferred tax assets		135,622		132,311
Less: valuation allowance		(132,396)		(130,002)
Net deferred tax assets	$	3,226	$	2,309
Deferred tax liabilities:
Acquired mineral property interests		(3,928)		(2,895)
Other taxable temporary differences		(35,928)		(39,986)
Total deferred tax liabilities	$	(39,856)	$	(42,881)
Deferred income and mining tax liability	$	(36,630)	$	(40,572)

The Company reviews the measurement of its deferred tax assets at each Consolidated Balance Sheet date. On the basis of available information at December 31, 2024, 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:

	Balance at							Balance at
For the year ended December 31,	beginning of year		Additions (1)		Deductions (2)			end of year
2024	$	130,002	$	2,780	$	(386)	$	132,396
2023		149,342		3,391		(22,731)		130,002
2022		149,921		6,600		(7,179)		149,342

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

(2) The reductions to valuation allowance mainly result from release of valuation allowance in Canada and Argentina.

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 (1)	Net operating losses	$	199,400	2027-Unlimited
Mexico	Net operating losses		54,163	2025-2034
Canada (1)	Net operating losses		11,380	2026-2042
Argentina (1)	Net operating losses		503	2024-2028

(1) 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: 2019 to 2024

Canada: 2015 to 2024

Mexico: 2018 to 2024

Argentina: 2018 to 2024