Income taxes

12 Months Ended

Dec. 31, 2023

Income taxes

Income taxes

23. Income taxes

The components of income tax expense (recovery) are as follows:

	Year ended			Year ended			Year ended
	December 31,			December 31,			December 31,
	2023			2022			2021
Current income tax expense (recovery)	$	(2,157	)	$	4,836		$	69
Deferred income tax expense (recovery)		97			(1,118	)		(1,679	)
Income tax expense (recovery)	$	(2,060	)	$	3,718		$	(1,610	)

The Company’s effective rate of income tax differs from the statutory rate of 26.5% as follows:

	Year ended			Year ended			Year ended
	December 31,			December 31,			December 31,
	2023			2022			2021
Loss before income taxes	$	(40,233	)	$	(41,469	)	$	(162,186	)
Statutory rate		26.5	%		26.5	%		26.5	%
Tax recovery at statutory rate		(10,662	)		(10,989	)		(42,979	)
Mexican mining royalty		852			1,435			29
Impact of foreign tax rates		9			674			1,415
Non-deductible expenses		2,351			4,351			4,329
Losses not recognized		5,390			8,247			35,596
Income tax expense (recovery)	$	(2,060	)	$	3,718		$	(1,610	)

The Company’s net deferred tax liability relates to the Mexican mining royalty and arises principally from the following:

	December 31,			December 31,
	2023			2022
Property, plant and equipment	$	787		$	815
Other		319			333
Total deferred tax liabilities		1,106			1,148
Provisions and reserves		(477	)		(800	)
Net deferred tax liabilities	$	629		$	348

Deferred income taxes have not been recognized in respect of the following deductible temporary differences, as management does not consider their utilization to be probable for the foreseeable future:

	December 31,		December 31,
	2023		2022
Inventories	$	39,904	$	9,074
Property, plant and equipment		41,892		36,709
Mexican tax losses (expiring in 2025 - 2031)		33,999		32,112
Canadian tax losses (expiring in 2034 - 2043)		37,103		31,892
U.S. tax losses (expiring in 2025 - 2037)		31,957		31,957
U.S. tax losses (no expiry)		165,649		191,790
Provisions and other		72,190		72,283
Deferred Mexican mining royalty		629		348
	$	423,323	$	406,165

Canadian tax losses include a dual Canadian and U.S. resident entity with $20.9 million in losses (2022: $17.6 million).