XML 62 R35.htm IDEA: XBRL DOCUMENT
v3.21.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Taxes [abstract] |
Income Taxes | 28. Income Tax
| (a) |  | Reconciliation of Effective Tax Rate
Income tax expense differs from the amount that would be computed by applying the applicable Canadian statutory income tax rate to income before income taxes. The significant reasons for the differences are as follows:
|  | Years ended December 31,
|  | 2020 |  | 2019
Net income before tax |  | $ | 58,955 |  | $ | 43,971
Statutory tax rate |  |  | 27.0% |  |  | 27.0%
Anticipated income tax at statutory rates |  |  | 15,918 |  |  | 11,872
Non-deductible expenditures |  |  | 1,326 |  |  | 2,507
Differences between Canadian and foreign tax rates |  |  | 1,284 |  |  | 1,353
Changes in estimate |  |  | (192) |  |  | 856
Effect of change in tax rates |  |  | 436 |  |  | 345
Inflation adjustment |  |  | (10,634) |  |  | (12,158)
Impact of foreign exchange |  |  | 15,081 |  |  | 11,773
Changes in deferred tax assets not recognized |  |  | 5,909 |  |  | (2,254)
Mining taxes |  |  | 4,656 |  |  | 3,241
Withholding taxes |  |  | 3,670 |  |  | 2,367
Other items |  |  | (52) |  |  | 273
Total income tax expense |  | $ | 37,402 |  | $ | 20,175
Total income tax represented by: |  |  |  |  |  |
Current income tax expense |  | $ | 38,818 |  | $ | 32,631
Deferred tax expense |  |  | (1,416) |  |  | (12,456)
|  | $ | 37,402 |  | $ | 20,175
| (b) |  | Tax Amounts Recognized in Profit or Loss
|  | Years ended December 31,
|  | 2020 |  | 2019
Current tax expense |  |  |  |  |  |
Current taxes on profit for the year |  | $ | 38,603 |  | $ | 32,246
Changes in estimates related to prior years |  |  | 215 |  |  | 385
|  | $ | 38,818 |  | $ | 32,631
Deferred tax expense |  |  |  |  |  |
Origination and reversal of temporary differences and foreign exchange rate |  | $ | (1,500) |  | $ | (13,678)
Changes in estimates related to prior years |  |  | (396) |  |  | 479
Effect of differences in tax rates |  |  | 44 |  |  | 398
Effect of changes in tax rates |  |  | 436 |  |  | 345
|  | $ | (1,416) |  | $ | (12,456)
Total Tax expense |  | $ | 37,402 |  | $ | 20,175
| (c) |  | Deferred Tax Balances
The significant components of the recognized deferred tax assets and liabilities are:
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Deferred tax assets: |  |  |  |  |  |
Reclamation and closure cost obligation |  | $ | 13,080 |  | $ | 9,530
Carried forward tax loss |  |  | 17,729 |  |  | 14,020
Accounts payable and accrued liabilities |  |  | 16,437 |  |  | 7,731
Deductibility of resource taxes |  |  | 3,414 |  |  | 3,140
Lease obligations |  |  | 5,769 |  |  | 5,317
Other |  |  | 127 |  |  | 1
Total deferred tax assets |  | $ | 56,556 |  | $ | 39,739
Deferred tax liabilities: |  |  |  |  |  |
Mineral properties |  | $ | (55,134) |  | $ | (44,825)
Mining and foreign withholding taxes |  |  | (4,862) |  |  | (5,281)
Equipment and buildings |  |  | (1,928) |  |  | (3,621)
Convertible debenture |  |  | (1,544) |  |  | (1,857)
Inflation |  |  | (11,210) |  |  | (4,939)
Other |  |  | (1,377) |  |  | (131)
Total deferred tax liabilities |  | $ | (76,055) |  | $ | (60,654)
Net deferred tax liabilities |  | $ | (19,499) |  | $ | (20,915)
|  | 2020 |  | 2019
Classification: |  |  |  |  |  |
Deferred tax assets |  | $ | - |  | $ | -
Deferred tax liabilities |  |  | (19,499) |  |  | (20,915)
Net deferred tax liabilities |  | $ | (19,499) |  | $ | (20,915)
The Company's movement of net deferred tax liabilities is described below:
|  | 2020 |  | 2019
At January 1 |  | $ | 20,915 |  | $ | 31,444
Deferred income tax (recovery) expense through income statement |  |  | (1,416) |  |  | (12,456)
Deferred income tax expense through equity |  |  | - |  |  | 1,927
At December 31 |  | $ | 19,499 |  | $ | 20,915
| (d) |  | Unrecognized Deferred Tax Assets and Liabilities
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,
|  | 2020 |  | 2019
Unrecognized deductible temporary differences and unused tax losses: |  |  |  |  |  |
Non capital losses |  | $ | 90,192 |  | $ | 72,156
Provisions |  |  | 14,488 |  |  | 5,074
Share issue costs |  |  | 3,894 |  |  | 2,174
Lease obligation |  |  | 555 |  |  | 656
Derivative liabilities |  |  | 1,111 |  |  | 894
Capital losses |  |  | 255 |  |  | 2,496
Investments in equity securities and associates |  |  | 1,534 |  |  | 1,397
Unrecognized deductible temporary differences |  | $ | 112,029 |  | $ | 84,847
As at December 31, 2020, 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,
|  | 2020 |  | 2019
Mexico |  | $ | 248,880 |  | $ | 198,214
Peru |  |  | 62,414 |  |  | 54,618
| (e) |  | Tax Loss Carry Forwards
Tax losses have the following expiry dates:
|  |  |  |  | December 31, |  |  |  |  | December 31,
|  |  | Year of expiry |  | 2020 |  |  | Year of expiry |  | 2019
Canada |  |  | 2026 - 2040 |  | $ | 90,300 |  |  | 2026 - 2039 |  | $ | 84,200
Argentina |  |  | 2021 - 2025 |  |  | 68,900 |  |  | 2020 - 2024 |  |  | 42,500
Mexico |  |  | 2021 - 2030 |  |  | 367 |  |  | 2021 - 2029 |  |  | 369
Peru |  |  |  |  |  | - |  |  | 2021 |  |  | 70
In addition, as at December 31, 2020, the Company has accumulated Canadian resource related expenses of $8,466 (December 31, 2019- $8,188) for which the deferred tax benefit has not been recognized.

X
- Definition Income Taxes [abstract]. + References No definition available. + Details
Name: | fsm_IncomeTaxesAbstract
Namespace Prefix: | fsm_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=12&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS12_g79-88_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration