The income tax recorded in the consolidated statements of loss for the years ended December 31, 2025 and 2024 is presented as follows:


		2025		2024
		$		$
Current income tax
Expense for the year		477		—
Current income tax expense		477		—

Deferred income tax
Origination and reversal of temporary differences		(26,430)		(15,712)
Change in unrecognized deductible temporary differences		25,887		16,360
Other		—		—
Deferred income tax (recovery) expense		(543)		648
Income tax (recovery) expense		(66)		648

The provision for income taxes expense (recovery) presented in the consolidated statements of loss differs from the amount that would arise using the statutory income tax rate applicable to income of the entities, as a result of the following:



		2025	2024
		$	$
Loss before income taxes		(159,540)	(56,605)
Income tax provision calculated using the Canadian federal and provincial statutory income tax rate		(42,278)	(15,001)
Increase in income taxes resulting from:
Non-deductible expenses, net		639	850
Non-deductible portion of capital (gain) losses, net		(2,982)	2,187
Change in fair value of warrant liability		23,436	(5,265)
Share of loss of associates		(295)	140
Change in unrecognized deferred tax assets		25,887	16,360
Differences in foreign statutory tax rates and other rate differences		(2,954)	467
Other		(1,519)	910
		(66)	648

The 2025 and 2024 Canadian federal and provincial statutory income tax rate is 26.5%.

The components that give rise to deferred income tax assets and liabilities are as follows:


		2025		2024
		$		$
Deferred tax assets:
Non-capital losses		34,336		32,099
Investments		—		648
Deferred tax assets		34,336		32,747

Deferred tax liabilities:
Mining interests and property, plant and equipment		(29,764)		(28,399)
Exploration and evaluation		(3,038)		(2,900)
Other		(1,534)		(1,448)
Deferred tax liability		(34,336)		(32,747)
Deferred tax liability, net		—		—

The movement for deferred tax assets and deferred tax liabilities balances in the year is as follows:


		2025		2024
		$		$
The movement for deferred tax assets and deferred tax liability balances in the year is as follows:

Balance - beginning of year		—		—
Recognized in income tax (recovery) expense		(543)		648
Recognized in OCI		543		(648)
		—		—

The aggregate amount of taxable temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized as at December 31, 2025 is $nil ($4.1 million as at December 31, 2024). No deferred tax liabilities are recognized on the temporary differences associated with investment in subsidiaries because the company controls the timing of reversal, and it is not probable that they will reverse in the foreseeable future.

As at December 31, 2025, the Company had temporary difference with a tax benefit of $171.1 million ($186.8 million as at December 31, 2024) which are not recognized as deferred tax assets. The temporary differences as at December 31, 2024 included the unrecognized temporary differences from the Company’s Mexican operations, which were classified as discontinued operations as at December 31, 2025.The Company recognizes the benefit of tax attributes only to the extent of anticipated future taxable income that can be reduced by these tax attributes.

In Canada, the Company has non-capital losses of $549 million (2024 – $470 million) with expiry date from 2025 to 2045. In addition, in the United States, the Company has non-capital losses of $47 million (2024 – $61.6 million). The non-capital losses in the United States do not expire; however, their use is subject to 80% limitation on taxable income in any year.