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INCOME AND MINING TAXES | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME AND MINING TAXES | INCOME AND MINING TAXES The following tables represent the major components of Income (loss) before income and mining taxes and Income and mining tax benefit (expense) recognized in the Consolidated Statements of Operations (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Income (loss) before income and mining taxes components: |  |  |  |  |  |  |  |
United States | $ | 181,926 |  |  | $ | 75,762 |  |  | $ | 138,230 |
Canada |  | (76,407) |  |  |  | (21,831) |  |  |  | 26,752 |
Türkiye |  | (319,775) |  |  |  | 108,373 |  |  |  | 186,971 |
Argentina |  | 13,733 |  |  |  | 2,662 |  |  |  | 77,562 |
Other Foreign |  | (1,885) |  |  |  | 75,869 |  |  |  | (14,757) |
Total income (loss) before income and mining taxes | $ | (202,408) |  |  | $ | 240,835 |  |  | $ | 414,758 |
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current income tax provision: |  |  |  |  |  |  |  |
United States | $ | 27,322 |  |  | $ | 15,149 |  |  | $ | 15,603 |
Canada |  | 9,738 |  |  |  | 33,408 |  |  |  | 27,672 |
Türkiye |  | 4,390 |  |  |  | 23,515 |  |  |  | 49,851 |
Argentina |  | 8,925 |  |  |  | 1,801 |  |  |  | 8,989 |
Other foreign |  | 3,257 |  |  |  | 24,127 |  |  |  | 14,339 |
Total current income tax provision |  | 53,632 |  |  |  | 98,000 |  |  |  | 116,454 |
Deferred income tax provision (benefit): |  |  |  |  |  |  |  |
United States |  | 1,373 |  |  |  | 7,092 |  |  |  | 13,288 |
Canada |  | (4,681) |  |  |  | (4,183) |  |  |  | (230) |
Türkiye |  | (120,950) |  |  |  | (57,227) |  |  |  | (131,456) |
Argentina |  | (11,958) |  |  |  | 3,350 |  |  |  | 3,569 |
Other foreign |  | 50 |  |  |  | (16,964) |  |  |  | (15,741) |
Total deferred income tax provision (benefit) |  | (136,166) |  |  |  | (67,932) |  |  |  | (130,570) |
Total income tax provision (benefit) | $ | (82,534) |  |  | $ | 30,068 |  |  | $ | (14,116) |
Income and mining tax expense differs from the amount that would be computed by applying the Canadian statutory rate of 27% for each of the years ended December 31, 2023, 2022 and 2021, respectively, to income (loss) before income and mining taxes. The reasons for the differences are as follows (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Income (loss) before income and mining taxes |  | $ | (202,408) |  | $ | 240,835 |  | $ | 414,758
Statutory tax rate |  |  | 27 | % |  |  | 27 | % |  |  | 27 | %
Expected income and mining tax expense (benefit) |  |  | (54,650) |  |  | 65,025 |  |  | 111,985
Increase (decrease) attributable to: |  |  |  |  |  |  |  |  |
Non-taxable items |  |  | (26,345) |  |  | (11,358) |  |  | (4,379)
Foreign exchange and inflation |  |  | (55,850) |  |  | (20,531) |  |  | (124,946)
Tax rate increase |  |  | 68,917 |  |  | — |  |  | —
Differences in foreign and future tax rates |  |  | (4,219) |  |  | (13,248) |  |  | 738
Investment incentive tax credits |  |  | (22,760) |  |  | (10,126) |  |  | (14,082)
Mining taxes and overseas withholding tax |  |  | 5,546 |  |  | 38,251 |  |  | 17,528
Impact of gain on acquisition of Kartaltepe |  |  | — |  |  | (18,826) |  |  | —
Change in estimates in respect of prior years |  |  | 1,742 |  |  | (3,630) |  |  | (2,046)
Changes in valuation allowance |  |  | 4,748 |  |  | 2,602 |  |  | 1,086
Other |  |  | 337 |  |  | 1,909 |  |  | —
Total income and mining tax expense (benefit) |  | $ | (82,534) |  | $ | 30,068 |  | $ | (14,116)
In July 2023, the Republic of Türkiye enacted an increase in the corporate income tax rate. The corporate income tax rate of 20% increased to 25% for 2023 and subsequent years. The increase was effective on July 15, 2023 with retroactive application to January 1, 2023. As a result of the rate increase in Türkiye, the Company incurred additional deferred income tax expense of approximately $68.9 million. The significant components of Deferred income tax assets and Deferred income tax liabilities were (in thousands):
| December 31,
| 2023 |  | 2022
Deferred income tax assets |  |  |  |  |
Deductible temporary differences relating to: |  |  |  |  |
Marketable securities | $ | 1,147 |  |  | $ | 2,397 |
Reclamation liabilities |  | 40,118 |  |  |  | 31,080 |
Lease liabilities |  | 26,618 |  |  |  | 28,730 |
Deductibility of other taxes |  | 10,311 |  |  |  | 10,224 |
Stock-based compensation |  | 2,030 |  |  |  | 2,931 |
Other items |  | 19,627 |  |  |  | 13,286 |
|  | 99,851 |  |  |  | 88,648 |
Investment incentive tax credits (1) |  | 17,912 |  |  |  | 18,772 |
Tax loss carryforwards |  | 53,164 |  |  |  | 43,384 |
Less: Valuation allowance |  | (74,640) |  |  |  | (61,101) |
Total deferred income tax assets | $ | 96,287 |  |  | $ | 89,703 |
Deferred income tax liabilities |  |  |  |  |
Taxable temporary differences relating to: |  |  |  |  |
Marketable securities | $ | (1,137) |  |  | $ | — |
Inventories |  | (16,969) |  |  |  | (49,004) |
Mineral properties, plant and equipment |  | (380,348) |  |  |  | (332,886) |
Convertible notes |  | — |  |  |  | (95) |
Mineral tax |  | (38,969) |  |  |  | (41,803) |
Other items |  | (409) |  |  |  | (6,401) |
Total deferred income tax liabilities | $ | (437,832) |  |  | $ | (430,189) |
Balance sheet presentation |  |  |  |  |
Deferred income tax assets | $ | 22,307 |  |  | $ | 1,915 |
Deferred income tax liabilities |  | (363,852) |  |  |  | (342,401) |
Deferred income tax liabilities, net | $ | (341,545) |  |  | $ | (340,486) |
(1)The Company receives investment incentive tax credits for qualifying capital expenditures at Çöpler. The application of these tax credits, which are denominated in Turkish Lira, reduced income and mining tax expense and cash tax payments for the year ended December 31, 2023 and are expected to offset future cash tax payments. Reviews of eligible expenditures for tax credits by local tax authorities occur periodically and can result in adjustments to the recognition of investment incentive tax credits. As of December 31, 2023, the Company had deferred tax liabilities related to investments in subsidiaries that were not recognized as the Company controls the dividend policy of its subsidiaries (i.e., the Company controls the timing of reversal of the related taxable temporary differences and is satisfied that they will not reverse in the foreseeable future). It is not practicable to determine the amount of the unrecognized deferred tax liabilities at this time. Valuation of deferred tax assets The Company recognizes tax benefits on losses or other deductible amounts generated in countries where it determines that it is more likely than not that taxable profits will be available to be utilized against those temporary differences. The Company's deferred tax valuation allowance related primarily to tax losses in jurisdictions which do not meet the “more-likely-than-not” standard under current accounting guidance due to insufficient positive taxable income to utilize available tax losses. When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurs. The Company has not made any judgement changes with respect to its already established positions. The valuation allowance increased in 2023 by $13.5 million mainly related to an increase in net operating and capital loss carryforwards in entities where the Company does not expect to realize a future tax benefit. Tax loss carryforwards As of December 31, 2023, the Company had the following estimated tax operating and capital losses (in thousands) available to reduce future taxable income, including both losses for which deferred tax assets are utilized to offset applicable deferred tax liabilities and losses for which deferred tax assets have a valuation allowance against. Losses expire at various dates and amounts between 2024 and 2043.
| December 31, 2023 |  | Expiration Year
Canada | $ | 173,384 |  |  | 2040-2043
U.S.A. | $ | 2,912 |  |  | 2024-Indefinite
Türkiye | $ | 40,990 |  |  | 2026-2027
Unrecognized tax benefits The Company records uncertain tax positions on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the “more-likely-than-not” recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, inclusive of interest and penalties, is as follows during the years ended December 31 (in thousands):
|  | 2023 |  | 2022
Balance as of January 1 |  | $ | 8,574 |  |  | $ | — |
Increase associated with tax positions taken during the current year |  |  | — |  |  |  | — |
Increase (decrease) associated with tax positions taken during a prior year (1) |  |  | (7,218) |  |  |  | 9,200 |
Tax Payments |  |  | (1,356) |  |  |  | (626) |
Decrease associated with lapses in statutes of limitation |  |  | — |  |  |  | — |
Balance as of December 31 |  | $ | — |  |  | $ | 8,574 |
(1) Of the gross unrecognized tax benefits, $0.0 million were recognized as current liabilities in Consolidated Balance Sheet as of December 31, 2023. As of December 31, 2023 and December 31, 2022, nil and $8.6 million, respectively, represent the amount of unrecognized tax benefits, inclusive of interest and penalties that, if recognized, would impact the Company’s effective income tax rate. As of December 31, 2023 and December 31, 2022, the total amount of accrued income-tax-related interest and penalties included in the Consolidated Balance Sheets were nil and $5.2 million. On March 12, 2023, Türkiye enacted Tax Amnesty legislation, which allows taxpayers to voluntarily pay tax on uncertain tax positions and waives assessed interest, penalties up to 50.0% of tax and risk of audit if paid in accordance with the process outlined in the legislation. As a result, during the year ended December 31, 2023, the Company released $7.2 million of tax, interest, and penalties in Income and mining tax benefit (expense) in the Condensed Consolidated Statements of Operations. During the year ended December 31, 2023, the Company paid $1.4 million in a cash payment in accordance with the Tax Amnesty agreement. The Company files income tax returns in the U.S. federal jurisdiction, Canada, Türkiye, Argentina and various state, provincial and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-US income tax examinations for years before 2017.

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