Value added tax receivable, net

3 Months Ended

Mar. 31, 2021

Value added tax receivable, net

Value added tax receivable, net

6.Value added tax receivable, net

The Company has recorded a net value added tax (“VAT”) paid in Mexico of $0.8 million, related to the Velardeña Properties and the Rodeo operation, as a recoverable asset,  which appears in “Value added tax receivable, net” on the Condensed Consolidated Balance Sheets.  Mexico law allows for certain VAT payments to be recovered through ongoing applications for refunds. The Company expects that the current amounts will be recovered within a one-year period.  At March 31, 2021, the Company has also recorded approximately $133,000 of VAT payable as a reduction to the VAT receivable in Mexico.

The Company has also paid VAT in Mexico as well as other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability.