Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019


	Years ended December 31,
	2019		2018
Net income before tax	$	43,971	$	67,340
Statutory tax rate		27.0%		27.0%
Anticipated income tax at statutory rates		11,872		18,182
Non-deductible expenditures		2,507		1,935
Differences between Canadian and foreign tax rates		1,353		2,159
Changes in estimate		856		(679)
Effect of change in tax rates		345		299
Inflation adjustment		(12,158)		(6,408)
Impact of foreign exchange		11,773		10,377
Changes in deferred tax assets not recognized		(2,254)		(287)
Mining taxes		3,241		4,383
Withholding taxes		2,367		3,180
Other items		273		209
Total income tax expense	$	20,175	$	33,350

Total income tax represented by:
Current income tax expense	$	32,631	$	30,563
Deferred tax expense		(12,456)		2,787
	$	20,175	$	33,350

Schedule of Current and Deferred Taxes


	Years ended December 31,
	2019		2018
Current tax expense
Current taxes on profit for the year	$	32,246	$	30,515
Changes in estimates related to prior years		385		48
	$	32,631	$	30,563

Deferred tax expense
Origination and reversal of temporary differences and foreign exchange rate	$	(13,678)	$	3,216
Changes in estimates related to prior years		479		(728)
Effect of differences in tax rates		398		16
Effect of changes in tax rates		345		283
	$	(12,456)	$	2,787

Total tax expense	$	20,175	$	33,350

Schedule of Deferred Tax Assets and Liabilities

The significant components of the recognized deferred tax assets and liabilities are:


	December 31,		December 31,
	2019		2018
Deferred tax assets:
Reclamation and closure cost obligation	$	9,530	$	4,594
Carried forward tax loss		14,020		3,386
Accounts payable and accrued liabilities		7,731		5,642
Deductibility of resource taxes		3,140		3,436
Lease obligations		5,317		-
Other		1		190
Total deferred tax assets	$	39,739	$	17,248

Deferred tax liabilities:
Mineral properties	$	(44,825)	$	(34,541)
Mining and foreign withholding taxes		(5,281)		(8,412)
Equipment and buildings		(3,621)		(4,413)
Convertible debenture		(1,857)		-
Inflation		(4,939)		-
Other		(131)		(1,326)
Total deferred tax liabilities	$	(60,654)	$	(48,692)

Net deferred tax liabilities	$	(20,915)	$	(31,444)

		2019		2018
Classification:
Deferred tax assets	$	-	$	-
Deferred tax liabilities		(20,915)		(31,444)
Net deferred tax liabilities	$	(20,915)	$	(31,444)

The Company's movement of net deferred tax liabilities is described below:


		2019		2018
At January 1	$	31,444	$	28,657
Deferred income tax (recovery) expense through income statement		(12,456)		2,787
Deferred income tax expense through equity		1,927		-
At December 31	$	20,915	$	31,444

Schedule of Unrecognized Deductible Temporary Difference and Unused Tax Losses

The Company recognizes tax benefits on losses or other deductible amounts where it is more likely than not that the deferred tax asset will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consists of the following amounts:


	December 31,		December 31,
	2019		2018
Unrecognized deductible temporary differences and unused tax losses:
Non capital losses	$	72,156	$	81,188
Provisions		5,074		5,173
Share issue costs		2,174		3,354
Mineral properties, plant and equipment		-		244
Lease obligation		656		-
Derivative liabilities		894		-
Capital losses		2,496		2,326
Investments in associates		1,397		-
Unrecognized deductible temporary differences	$	84,847	$	92,285

As at December 31, 2019, the Company has temporary differences associated with investments in subsidiaries for which an income tax liability has not been recognized as the Company can control the timing of the reversal of the temporary differences and the Company plans to reinvest in its foreign subsidiaries. The temporary difference associated with investments in subsidiaries aggregate as follow:


	December 31,		December 31,
	2019		2018
Mexico	$	198,214	$	97,705
Peru		54,618		69,669

Schedule of Tax Losses Expiry Dates


		December 31,			December 31,
	Year of expiry	2019		Year of expiry	2018
Canada	2026 - 2039	$	84,200	2026 - 2038	$	81,000
Argentina	2020 - 2024		42,500	2019 - 2023		11,900
Mexico	2021 - 2029		369	2021 - 2028		349
Peru	2021		70	2021		238