Value Added Tax Receivable, Net

12 Months Ended

Dec. 31, 2024

Value Added Tax Receivable, Net

Value Added Tax Receivable, Net

7. Value Added Tax Receivable, Net

At December 31, 2024 and 2023, the Company recorded a net VAT paid in Mexico of $0.3 million and $3.1 million, respectively, related to the Rodeo and Velardeña Properties, as a recoverable asset, which appears in “Value added tax receivable, net” on the 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 receivable will be recovered within a one-year period. At December 31, 2024 and December 31, 2023, the Company recorded approximately $172,000 and $764,000, respectively, 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.