| INCOME TAXES |
8. INCOME TAXES | | | Three months ended
June 30, | | Six months ended
June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Current tax expense (recovery) | | $ | (1,132 | ) | | $ | 12,039 | | | $ | 1,053 | | | $ | 14,471 | | | Deferred tax expense (recovery) | | | 6,540 | | | | (8,241 | ) | | | (4,996 | ) | | | (9,755 | ) | | Tax expense (recovery) | | $ | 5,408 | | | $ | 3,798 | | | $ | (3,943 | ) | | $ | 4,716 | | A reconciliation of the statutory income tax rate, which is a composite of Canadian federal and provincial rates, to the effective income tax rate was as follows: | | | Three months ended
June 30, | | Six months ended
June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Income (loss) before tax | | $ | (553,142 | ) | | $ | 79,327 | | | $ | (713,442 | ) | | $ | 28,788 | | | Multiplied by the statutory income tax rates | | | 26.39 | % | | | 26.39 | % | | | 26.39 | % | | | 26.39 | % | | | | | (145,974 | ) | | | 20,934 | | | | (188,277 | ) | | | 7,597 | | | Income tax recorded at rates different from the Canadian tax rate | | | (929 | ) | | | (3,508 | ) | | | (1,267 | ) | | | (4,695 | ) | | Permanent differences | | | 116,856 | | | | (8,074 | ) | | | 132,177 | | | | 3,034 | | | Effect of temporary differences not recognized as deferred tax assets | | | 34,198 | | | | (16,307 | ) | | | 53,915 | | | | (12,767 | ) | | Foreign taxes | | | 25 | | | | (669 | ) | | | 25 | | | | (134 | ) | | Change in estimates related to prior periods | | | 4,977 | | | | 90 | | | | 4,977 | | | | 90 | | | Excess tax benefits on share-based payments recognized directly in equity | | | 545 | | | | — | | | | 545 | | | | — | | | Foreign exchange | | | (4,290 | ) | | | 10,918 | | | | (6,038 | ) | | | 11,177 | | | Other | | | — | | | | 414 | | | | — | | | | 414 | | | Tax expense (recovery) | | $ | 5,408 | | | $ | 3,798 | | | $ | (3,943 | ) | | $ | 4,716 | | | Effective income tax rate | | | (0.98 | )% | | | 4.79 | % | | | 0.55 | % | | | 16.38 | % | |