INCOME TAXES

We recognize deferred tax assets and liabilities based on the difference between the financial reporting and tax basis of assets and liabilities using the enacted tax rates expected to be in effect when the taxes are paid or recovered. We provide a valuation allowance against deferred tax assets for which we do not consider realization of such assets to meet the required “more likely than not” standard.

Our deferred tax assets and liabilities at December 31, 2011, and 2010 include the following components:



	As of December 31,
	2011			2010
Deferred tax assets:
Offering costs	$	595		$	1,338
Non-capital loss carryovers	191,182			171,007
Capital loss carryovers	907			513
Mine property costs	7,154			9,700
Reclamation costs	6,638			9,406
Derivatives	(1,094		)	6,326
Unrealized loss	(173		)	(7		)
Other	5,061			4,064
Valuation allowance	(131,208		)	(120,387		)
Future tax assets	79,062			81,960
Deferred tax liabilities:
Mine property costs	102,948			97,281
Other	107			357
Deferred tax liabilities	103,055			97,638
Net deferred tax assets/(liabilities)	$	(23,993	)	$	(15,678	)

The composition of our valuation allowance by tax jurisdiction is summarized as follows:



	As at December 31,
	2011		2010
Canada	$	46,254	$	48,385
U.S.	228		399
Ghana	84,067		71,006
Burkina Faso	659		597
Total valuation allowance	$	131,208	$	120,387

The income taxes (recovery)/expense includes the following components:



	For the years ended December 31,
	2011		2010		2009
Current
Canada	$	—	$	—	$	—
Foreign	2,669		1,487		1,756
Future
Canada	—		—		—
Foreign	8,315		3,990		(20,271		)
Total	$	10,984	$	5,477	$	(18,515	)

A reconciliation of expected income tax on net income before minority interest at statutory rates with the actual expenses (recovery) for income taxes is as follows:



	For the years ended December 31,
	2011			2010			2009
Net income /(loss) before minority interest	$	8,482		$	(9,128	)	$	(27,418	)
Statutory tax rate	26.5		%	28.5		%	29.0		%
Tax expense/(benefit) at statutory rate	$	2,248		$	(2,601	)	$	(7,951	)
Foreign tax rates	(7,340		)	(7,548		)	(7,923		)
Change in tax rates	3,395			659			476
Ghana investment allowance	(513		)	(761		)	(63		)
Non-deductible stock option compensation	884			848			560
Non-deductible expenses	376			543			3
Loss carryover not previously recognized	(1,189		)	2,321			(2,849		)
Ghana property basis not previously recognized	(1,385		)	912			(7,601		)
Change in future tax assets due to exchange rates	738			(1,864		)	(4,018		)
Change in valuation allowance	10,881			10,907			9,095
National Tax Levy	2,669			1,488			1,756
Other	220			573			—
Income tax expense /(recovery)	$	10,984		$	5,477		$	(18,515	)

During 2009, we recognized $4 million of share offering costs. Shareholders' equity has been credited in the amounts of $1.2 million for the tax benefits of these deductions. A $1.2 million valuation allowance has been provided in shareholders' equity for the net tax impact of the share offering costs. In addition, a $1 million valuation allowance has been provided in other comprehensive income for the net tax impact of the unrealized loss.

At December 31, 2011, we had tax pool and loss carryovers expiring as follows:



	Canada		Ghana
2012	$	—	$	28,769
2013	—		46,294
2014	4,123		—
2015	8,090		41,401
2026	15,615		—
2027	15,908		—
2028	14,299		—
2029	21,988		—
2030	20,182		—
2031	40,313		—
Indefinite	6,842		498,742
Total	$	147,360	$	615,206