Income taxes (Tables)

12 Months Ended

Dec. 31, 2018


	For the year ended
	December 31,
	2018		2017
Current income tax expense
Expense for the year	$	34.1	$	25.1
Adjustment in respect of prior years		6.0		(5.6)
Current income tax expense (recovery)	$	40.1	$	19.5
Deferred income tax expense (recovery)
Origination and reversal of temporary differences in the current year		(7.7)		15.7
U.S. Tax Reform impact		2.0		7.1
Impact of changes in tax rate		2.9		(0.9)
Change in unrecognized deductible temporary differences		19.0		0.1
Adjustments in respect of prior years		(6.2)		0.6
Other		—		(0.8)
Deferred income tax (recovery) expense	$	10.0	$	21.8
	$	50.1	$	41.3

Reconciliation of the provision for income taxes


	2018		2017
Net income before income taxes	$	189.1	$	236.0
Statutory tax rate		26.6%		26.6%
Tax expense at statutory rate	$	50.4	$	62.8
Reconciling items:
Change in unrecognized deductible temporary differences		19.0		0.1
Income/expenses not (taxed) deductible		(1.0)		(3.0)
Differences in foreign statutory tax rates		(24.7)		(20.9)
Differences due to changing future tax rates		2.9		(0.9)
U.S. Tax Reform impact		2.0		7.1
Foreign withholding tax		0.6		1.4
Temporary differences subject to initial recognition exemption		1.0		(5.2)
Other		(0.1)		(0.1)
Net income tax expense	$	50.1	$	41.3

Schedule of income tax (expense) recovery recognized in other comprehensive income (loss)


		2018						2017
						After						After
		Before		Tax		Tax		Before		Tax		Tax
		Tax Loss		Recovery		Loss		Tax Gain		Expense		Gain
Change in market value of available-for-sale investments	$	(21.4)	$	3.0	$	(18.4)	$	47.1	$	(6.3)	$	40.8
Cumulative translation adjustment		(68.3)		—		(68.3)		77.2		—		77.2
Other comprehensive loss	$	(89.7)	$	3.0	$	(86.7)	$	124.3	$	(6.3)	$	118.0
Deferred tax	$	—	$	3.0	$	—	$	—	$	(6.3)	$	—

Schedule of components of deferred income tax assets and liabilities


	2018		2017
Deferred income tax assets:
Deductible temporary differences relating to:
Royalty, stream and working interests	$	16.2	$	5.6
Non-capital loss carry-forwards		1.9		9.5
Other		(0.8)		(0.6)
	$	17.3	$	14.5

Deferred income tax liabilities:
Taxable temporary differences relating to:
Share issue and debt issue costs	$	(3.7)	$	(7.1)
Royalty, stream and working interests		74.8		71.1
Non-capital loss carry-forwards		(2.6)		(5.6)
Investments		2.5		5.8
Other		(3.7)		(3.9)
	$	67.3	$	60.3
Deferred income tax liabilities, net	$	50.0	$	45.8

Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

The analysis of deferred tax assets and deferred tax liabilities is as follows:


	2018		2017
Deferred income tax assets:
Deferred income tax asset to be recovered within 12 months	$	0.1	$	0.1
Deferred income tax asset to be recovered after more than 12 months		17.2		14.4
	$	17.3	$	14.5
Deferred income tax liabilities:
Deferred income tax liability to be settled within 12 months		1.0		0.9
Deferred income tax liability to be settled after more than 12 months		66.3		59.4
	$	67.3	$	60.3
Deferred income tax liabilities, net	$	50.0	$	45.8

Schedule of movement in net deferred taxes


		2018		2017
Balance, beginning of year	$	45.8	$	16.2
Recognized in profit/loss		10.0		21.8
Recognized in other comprehensive income (loss)		(3.0)		6.3
Other		(2.8)		1.5
Deferred income tax liabilities, net	$	50.0	$	45.8

Schedule of non-capital losses


Country	Type	Amount		Expiry Date
Canada	Non-Capital Losses	$	17.0	2028-2038

Schedule of deductible temporary differences and unused tax credits for which no deferred tax assets


	2018			2017
Mineral Interests	$	50.9	$	—
Tax loss		24.8		4.0
	$	75.7	$	4.0