For the six
months ended
June 30,
2025, the
Company estimated
its annual
effective tax
rate and
applied this
effective tax
rate to
its year-to-date
pretax income
at the
end of
the interim
reporting period.
The tax
effects of
unusual or infrequently
occurring items, including
effects of changes in
tax laws or
rates and changes
in judgment
about the realizability of deferred tax assets, are reported
in the interim period in which they occur.
The
Company’s
2025
estimated
annual
effective
tax
rate
is
14.6
%.
This
rate
is
impacted
by
mine
depletion
deductions in the U.S.
and the rate results from
combining the annual effective tax rate
of the U.S. and
Australian
Operations. Accordingly,
the Company had an
income tax benefit of
$
29.4
million based on a
loss before tax of
$
201.8
million for the six months ended June 30, 2025, which
includes expenses of $
0.1
3.3
million for
the six
months ended
June 30, 2024
was calculated
based on
an estimated
annual effective tax rate of
17.6
% for the period, which included a
discrete benefit of $
0.1
million in relation to the
prior year for the U.S.
The Company utilizes the
“more likely than not”
standard in recognizing
a tax benefit in
its financial statements.
For the three months ended June 30, 2025, the
Company had
no
new unrecognized tax benefits included
in tax
expense. If accrual
for interest or
penalties is required,
it is the
Company’s policy to include
these as a
component
of income tax expense. The Company continues to carry
an unrecognized tax benefit of $
19.4
18.9
million as at June 30, 2025 and December 31, 2024,
respectively.
The Company is
subject to taxation
in the
U.S. and its
various states, as
well as Australia
and its
various localities.
In the
U.S.
and
Australia, the
first tax
return
was
lodged for
the
year
ended December
31,
2018. In
the U.S.,
companies are
subject to
open tax
audits for
a period
of seven
years at
the federal
level and
five years
at the