Note 3 - Income and Mining Taxes

6 Months Ended

Jun. 30, 2022

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, 2022 and 2021 are as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Current:
Domestic	$	(446	)	$	(3,036	)	$	(2,549	)	$	(5,313	)
Foreign		(1,346	)		(826	)		(3,087	)		(3,112	)
Total current income and mining tax provision		(1,792	)		(3,862	)		(5,636	)		(8,425	)
Deferred:
Domestic		(2,150	)		4,117			(7,241	)		4,436
Foreign		3,688			3,879			6,992			3,380
Total deferred income and mining tax benefit		1,538			7,996			(249	)		7,816
Total income and mining tax benefit (provision)	$	(254	)	$	4,134		$	(5,885	)	$	(609	)

The income and mining tax benefit (provision) for the three and six months ended June 30, 2022 and 2021 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 non-recognition of net operating losses and foreign exchange gains and losses in certain jurisdictions.

For the three-month and six-month periods ended June 30, 2022, we used the annual effective tax rate method to calculate the tax provision, a change from the discrete method used for the three- and six-month periods ended June 30, 2021, due to reversal of valuation allowance in the fourth quarter of 2021. Valuation allowances on Nevada, Mexico and certain Canadian net operating losses were treated as discrete adjustments to the annual effective tax rate method calculation, partially causing the increase in the income tax rate for the three and six months ended June 30, 2022, as compared to the three and six months ended June 30, 2021.