Note 3 - Income and Mining Taxes

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 3.   Income and Mining Taxes

Major components of our income and mining tax benefit (provision) for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Current:
Domestic	$	(3,036	)	$	(253	)	$	(5,313	)	$	(985	)
Foreign		(826	)		(1,650	)		(3,112	)		(3,719	)
Total current income and mining tax provision		(3,862	)		(1,903	)		(8,425	)		(4,704	)
Deferred:
Domestic		4,117			1,866			4,436			3,116
Foreign		4,587			(589	)		4,197			2,024
Total deferred income and mining tax benefit		8,704			1,277			8,633			5,140
Total income and mining tax benefit (provision)	$	4,842		$	(626	)	$	208		$	436

The income and mining tax benefit (provision) for the three and six months ended June 30, 2021 and 2020 varies from the amounts that would have resulted from applying the statutory tax rates to pre-tax income due primarily to the impact of taxation in foreign jurisdictions and reversal of the valuation allowance portion related to net operating loss utilization.  The valuation allowance reversed for utilization of net operating loss carryforward for the three and six months ended June 30, 2021 totaled $3.4 million and $8.6 million, respectively.

Effective January 1, 2021, we prospectively reclassified certain income based state and provincial taxes from Cost of Sales and other direct production costs to Income and mining tax benefit (provision). The income and mining tax benefit for the three and six months ended June 30, 2021 decreased by $3.5 million and $6.5 million, respectively, due to the reclassification.