v3.26.3
Note 3 - Income and Mining Taxes
 9 Months Ended
Sep. 30, 2026
Disclosure Text Block [Abstract]  
Income and Mining Taxes

Note 3. Income and Mining Taxes

 

Major components of our income and mining tax for the three and nine months ended September 30, 2026 and 2025 are as follows (in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

(37,936

)

 

$

(5,414

)

 

$

(71,050

)

 

$

(10,742

)

Foreign

 

 

(4,627

)

 

 

(0

)

 

 

(5,203

)

 

 

0

 

Total current income and mining tax provision

 

 

(42,563

)

 

 

(5,414

)

 

 

(76,253

)

 

 

(10,742

)

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

9,809

 

 

 

(24,300

)

 

 

(24,334

)

 

 

(47,208

)

Foreign

 

 

(7,794

)

 

 

(1,315

)

 

 

(9,628

)

 

 

(3,441

)

Total deferred income and mining tax provision

 

 

2,015

 

 

 

(25,615

)

 

 

(33,962

)

 

 

(50,648

)

Total income and mining tax provision

 

$

(40,548

)

 

$

(31,030

)

 

$

(110,215

)

 

$

(61,390

)

 

The income and mining tax provision for the three and nine months ended September 30, 2026 and 2025 varies from the amounts that would have resulted from applying the statutory tax rates to pre-tax income primarily due to the impact of taxation in foreign jurisdictions, domestic and foreign mining taxes, percentage depletion, non-recognition of net operating losses, the tax effect of Global Intangible Low-Taxed Income and subpart F income inclusion, foreign exchange gains and losses in certain jurisdictions, and the tax effects of the entity classification election discussed below.

For the three and nine months ended September 30, 2026, we used the annual effective tax rate method to calculate the income and mining tax provision. During the second quarter we filed and were approved for an Entity Classification Election to classify Klondex Mines Unlimited Liability Company, the subsidiary that owns our Nevada assets, as a disregarded entity effective January 1, 2026. The Klondex (USA) Group joined the U.S. consolidated Hecla Mining Company Group's income tax filings. Due to this change in entity classification, we released a portion of the valuation allowance and revalued the state deferred tax liabilities in our Klondex USA tax group. These amounts were treated as discrete adjustments within the tax provision.

 

We file income tax returns in U.S. federal and state jurisdictions. Our Canadian subsidiaries file income tax returns in Canada, as well as in the province of British Columbia, and the Yukon Territory.