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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Disclosure of income tax [Abstract] |
Components of income tax expense | Components of Income Tax Expense
|  | 2018 |  |  | 2017 |
Current tax expense (recovery) |  |  |  |  |  |
Recognized in profit or loss in current year |  | $ | 59,056 |  |  | $ | 66,345 |
Adjustments recognized in the current year with respect to prior years |  | (5,155 | ) |  | (3,468 | )
|  | 53,901 |  |  | 62,877 |
Deferred tax expense (recovery) |  |  |  |  |  |
Deferred tax recovery recognized in the current year |  | (13,256 | ) |  | (898 | )
Adjustments recognized in the current year with respect to prior years |  | (1,098 | ) |  | (1,539 | )
Increase in deferred tax liabilities due to tax impact of reversals of mineral properties, plant, and equipment impairments (Note 11, 12) |  | — |  |  | 17,770 |
Recognition of previously unrecognized deferred tax assets |  | (6,140 | ) |  | (10,275 | )
Benefit from previously unrecognized losses, and other temporary differences |  | (3,600 | ) |  | (6,487 | )
Decrease in deferred tax liabilities due to tax impact of NRV charge to inventory |  | (8,660 | ) |  | (2,414 | )
|  | (32,754 | ) |  | (3,843 | )
Income tax expense |  | $ | 21,147 |  |  | $ | 59,034 |
Reconciliation of effective income tax rate | Reconciliation of Effective Income Tax Rate
|  | 2018 |  |  | 2017 |
Earnings before taxes and non-controlling interest |  | $ | 33,188 |  |  | $ | 182,485 |
Statutory Canadian income tax rate |  | 27.00 | % |  | 26.00 | %
Income tax expense based on above rates |  | $ | 8,961 |  |  | $ | 47,446 |
Increase (decrease) due to: |  |  |  |
Non-deductible expenditures |  | 3,929 |  |  | 4,618 |
Foreign tax rate differences |  | (2,160 | ) |  | 3,644 |
Change in net deferred tax assets not recognized: |  |  |  |
- Argentina exploration expenditures |  | 3,372 |  |  | 2,051 |
- Other deferred tax assets |  | 1,168 |  |  | (10,752 | )
Non-taxable portion of net earnings of affiliates |  | (3,254 | ) |  | (4,055 | )
Tax on sale of royalty |  | — |  |  | 1,400 |
Effect of other taxes paid (mining and withholding) |  | 14,371 |  |  | 20,065 |
Effect of foreign exchange on tax expense |  | 1,611 |  |  | (3,928 | )
Non-taxable impact of foreign exchange |  | (351 | ) |  | 2,937 |
Change in current tax expense estimated for prior years |  | (5,030 | ) |  | (3,503 | )
Other |  | (1,470 | ) |  | (889 | )
Income tax expense |  | $ | 21,147 |  |  | $ | 59,034 |
Effective income tax rate |  | 63.72 | % |  | 32.35 | %
Analysis of deferred tax assets and liabilities | The following is the analysis of the deferred tax assets (liabilities) presented in the consolidated financial statements:
|  | 2018 |  |  | 2017 |
Net deferred tax liability, beginning of year |  | $ | (168,549 | ) |  | $ | (169,136 | )
Recognized in net earnings in the year |  | 32,754 |  |  | 3,843 |
Reduction due to Mexican de-consolidation payments applied to current tax |  | (697 | ) |  | (3,231 | )
Other |  | (83 | ) |  | (25 | )
Net deferred liability, end of year |  | $ | (136,575 | ) |  | $ | (168,549 | )
Deferred tax assets |  | 12,244 |  |  | 2,679 |
Deferred tax liabilities |  | (148,819 | ) |  | (171,228 | )
Net deferred tax liability |  | $ | (136,575 | ) |  | $ | (168,549 | )
Components of deferred tax assets and liabilities | The deferred tax assets (liabilities) are comprised of the various temporary differences as detailed below:
|  | 2018 |  |  | 2017 |
Deferred tax assets (liabilities) arising from: |  |  |  |  |  |
Closure and decommissioning costs |  | $ | 9,105 |  |  | $ | 7,019 |
Tax losses and mining tax credits |  | 29,195 |  |  | 24,014 |
Deductible Mexican mining taxes |  | 2,974 |  |  | 2,792 |
Tax credit resulting from Mexican de-consolidation |  | 698 |  |  | 1,385 |
Accounts payable and accrued liabilities |  | 6,726 |  |  | 3,047 |
Trade and other receivables |  | 15,756 |  |  | 21,527 |
Provision for doubtful debts and inventory adjustments |  | (11,752 | ) |  | (14,517 | )
Mineral properties, plant, and equipment |  | (169,703 | ) |  | (186,641 | )
Estimated sales provisions |  | (19,746 | ) |  | (28,726 | )
Other temporary differences and provisions |  | 172 |  |  | 1,551 |
Net deferred tax liability |  | $ | (136,575 | ) |  | $ | (168,549 | )
Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognised | Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognized are attributable to the following:
|  | 2018 |  |  | 2017 |
Tax loss (revenue in nature) |  | $ | 131,179 |  |  | $ | 165,180 |
Net tax loss (capital in nature) |  | 14,456 |  |  | 15,423 |
Resource pools and other tax credits |  | 18,266 |  |  | 18,609 |
Financing fees |  | 785 |  |  | 1,464 |
Mineral properties, plant, and equipment |  | 22,669 |  |  | 20,441 |
Closure and decommissioning costs |  | 33,835 |  |  | 42,484 |
Exploration and other expenses not currently deductible |  | 51,175 |  |  | 54,672 |
Intercompany debt |  | 10,160 |  |  | 8,061 |
Doubtful debt and inventory |  | 24,840 |  |  | 16,602 |
Deductible Mexican mining taxes |  | — |  |  | 77 |
Payroll and vacation accruals |  | 827 |  |  | 2,015 |
Other temporary differences |  | 8,217 |  |  | 2,601 |
|  | $ | 316,409 |  |  | $ | 347,629 |
Schedule of operating loss carryforwards | Included in the above amounts are operating losses, which if not utilized will expire as follows:
At December 31, 2018
|  | Canada |  | US |  | Peru |  | Mexico |  | Barbados |  | Argentina |  |  | Total |
2019 |  | — |  |  | 85 |  |  | — |  |  | — |  |  | 4 |  |  | 45 |  |  | 134 |
2020 |  | — |  |  | 80 |  |  | — |  |  | — |  |  | 7 |  |  | 61 |  |  | 148 |
2021 – and after |  | 114,466 |  |  | 13,469 |  |  | 250 |  |  | 2,456 |  |  | 105 |  |  | 151 |  |  | 130,897 |
Total tax losses |  | $ | 114,466 |  |  | $ | 13,634 |  |  | $ | 250 |  |  | $ | 2,456 |  |  | $ | 116 |  |  | $ | 257 |  |  | 131,179 |
At December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Canada |  | US |  | Peru |  | Mexico |  | Barbados |  | Argentina |  |  | Total |
2018 |  | — |  |  | 120 |  |  | — |  |  | — |  |  | 6 |  |  | 50 |  |  | 176 |
2019 |  | — |  |  | 86 |  |  | — |  |  | — |  |  | 4 |  |  | 90 |  |  | 180 |
2020 – and after |  | 122,853 |  |  | 13,289 |  |  | — |  |  | 20,925 |  |  | 93 |  |  | 7,664 |  |  | 164,824 |
Total tax losses |  | $ | 122,853 |  |  | $ | 13,495 |  |  | $ | — |  |  | $ | 20,925 |  |  | $ | 103 |  |  | $ | 7,804 |  |  | $ | 165,180 |

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