| Income Taxes |
Income Taxes (a)Reconciliation of income taxes
A reconciliation of the income tax expense to the amount calculated using the Company’s combined Canadian federal and provincial statutory income tax rate of 27% (2024 – 27%) is as follows:
| | | | | | | | | | | | | Year ended December 31, | | 2025 | | 2024 | Net income (loss) in the year before tax | $ | 330,956 | | | $ | (75,441) | | Tax rate | 27 | % | | 27 | % | Income tax expense (recovery) at statutory rate | $ | 89,358 | | | $ | (20,369) | | Tax effect of: | | | | Difference in tax rate of foreign jurisdictions | (39,173) | | | 6,964 | | Non deductible (taxable) items | 2,143 | | | (1,601) | | Change in temporary differences not recognized | 4,689 | | | (4,667) | | Change in tax law | — | | | 2,999 | | Withholding taxes and other | 7,033 | | | 9,023 | | Income tax expense (recovery) | $ | 64,050 | | | $ | (7,651) | |
| | | | | | | | | | | | | Year ended December 31, | | 2025 | | 2024 | Current income tax: | | | | Relating to current income tax charge | $ | 39,700 | | | $ | 17,662 | | Deferred income tax: | | | | | | | | Relating to origination and reversal of temporary differences | 24,350 | | | (25,313) | | Income tax expense (recovery) recognized in net income | $ | 64,050 | | | $ | (7,651) | | Income tax expense (recovery) recognized in other comprehensive income | 1,095 | | | (833) | | Total income tax expense (recovery) | $ | 65,145 | | | $ | (8,484) | |
(b)Deferred income tax (liabilities) assets
The general movement in the deferred income tax (liabilities) assets is as follows:
| | | | | | | | | | | | | Year ended December 31, | | 2025 | | 2024 | At the beginning of the year | $ | 16,659 | | | $ | (9,548) | | Deferred income tax (expense) recovery | (24,350) | | | 25,313 | | Income tax expense (recovery) recognized in OCI | (1,095) | | | 833 | | Foreign exchange | 1,104 | | | 61 | | At the end of the year | $ | (7,682) | | | $ | 16,659 | |
Recognized deferred tax and assets and liabilities consist of the following:
| | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | Deferred tax assets: | | | | Non-capital losses | $ | 23,823 | | | $ | 18,078 | | Foreign exchange | 6,043 | | | 20,590 | | Financing fees and other | 8,905 | | | 5,216 | | Mine closure and rehabilitation provision | 3,926 | | | 3,338 | | Lease liabilities | 3,691 | | | 2,528 | | | 46,388 | | | 49,750 | | Deferred tax liabilities: | | | | Mineral properties, plant and equipment | (43,600) | | | (22,735) | | Loans and borrowings | (10,470) | | | (10,356) | | | | | | | | | | | | | | | (54,070) | | | (33,091) | | | | | | Net deferred income tax (liabilities) assets | $ | (7,682) | | | $ | 16,659 | | | | | | Presentation on Consolidated Statements of Financial Position | | | | Deferred tax assets | $ | 3,047 | | | $ | 16,659 | | Deferred tax liabilities | (10,729) | | | — | |
Deferred tax assets of $34.2 million (December 31, 2024 - $31.4 million) have not been recognized for the following deductible temporary differences as it is not probable that the benefits of these temporary differences will be realized: | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2025 | | Year ended December 31, 2024 | | Brazil | | Canada | | Brazil | | Canada | | | | | | | | | Mineral properties, plant and equipment | $ | 35,143 | | | $ | — | | | $ | 31,236 | | | $ | 873 | | Non-capital losses | — | | | 13,528 | | | — | | | 40,831 | | Other(1) | — | | | 99,524 | | | — | | | 67,770 | | | $ | 35,143 | | | $ | 113,052 | | | $ | 31,236 | | | $ | 109,474 | |
(1) Other deferred tax assets not recognized Include temporary differences related to deferred revenue, inventories and cash-settled equity awards liabilities.
The Company has loss carry forwards in Canada totaling $101.7 million (December 31, 2024 - $103.4 million) which may be carried forward for 20 years to offset future taxable income, which expire between 2036 and 2044. Additionally, the Company has loss carry forwards in Brazil totaling $— million (December 31, 2024 - 6.8 million) which do not expire and can be offset against future taxable income subject to 30% limitation of the current period taxable income.
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