Note 3 - Income and Mining Taxes

9 Months Ended

Sep. 30, 2025

Disclosure Text Block [Abstract]

Income and Mining Taxes

Note 3. Income and Mining Taxes

Major components of our income and mining tax for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Current:
Domestic	$	(5,414	)	$	(1,871	)	$	(10,742	)	$	(4,824	)
Foreign		(4,961	)		(1,006	)		(8,830	)		(3,260	)
Total current income and mining tax provision		(10,375	)		(2,877	)		(19,572	)		(8,084	)
Deferred:
Domestic		(32,747	)		(9,532	)		(63,759	)		(26,155	)
Foreign		(11,755	)		959			(20,252	)		11,894
Total deferred income and mining tax provision		(44,502	)		(8,573	)		(84,011	)		(14,261	)
Total income and mining tax provision	$	(54,877	)	$	(11,450	)	$	(103,583	)	$	(22,345	)

The income and mining tax provision for the three and nine months ended September 30, 2025 and 2024 varies from the amounts that would have resulted from applying the statutory tax rates to pre-tax income or loss due primarily to the impact of taxation in foreign jurisdictions, domestic and foreign mining taxes, percentage depletion, non-recognition of net operating losses and the tax effect of Global Intangible Low-Taxed Income and subpart F income inclusion.

For the three and nine months ended September 30, 2025, we used the annual effective tax rate method to calculate the tax provision. Valuation allowances on Nevada, Mexico and certain Canadian net operating losses were treated as discrete adjustments to the tax provision.

We file income tax returns in U.S. federal and state jurisdictions. Our Canadian subsidiaries file income tax returns in Canada and the provinces of British Columbia and Quebec. One of our Canadian subsidiaries is currently being audited by the Canadian Revenue Agency for the 2022 and 2023 years. We do not believe there will be an adjustment that will have a material impact on our financial statements.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA permanently extends multiple tax provisions of the 2017 Tax Cuts and Jobs Act, as well as repeals, modifies and introduces various other tax provisions including, but not limited to federal bonus depreciation and current deductions for domestic research and development expenditures. We do not anticipate the OBBBA will have a material impact to the Company's consolidated financial statements. We continue to evaluate the impact the OBBBA may have on the Company as the legislation has various future effective dates.

Pillar Two is a global tax framework that establishes a 15% minimum effective tax rate and was developed by the Organization for Economic Co-operation and Development (“OECD”). In 2024, Canada enacted its Global Minimum Tax Act (“GMTA”) which implements Pillar Two. Due to our worldwide projected revenue for the year ended 2025 we anticipate we will fall within the scope of Pillar Two rules beginning on January 1, 2026. We primarily operates in jurisdictions with a tax rate exceeding 15% and does not anticipate a material impact on its financial statements. We will continue to monitor developments and evaluate the potential impact of Pillar Two in future periods.