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INCOME TAXES
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
As of September 30, 2025, the Company maintained a full valuation allowance against its net deferred tax assets. The Company continually reviews the adequacy of the valuation allowance and intends to continue maintaining a full valuation allowance on its net deferred tax assets until there is sufficient evidence to support the reversal of all or a portion of the allowance. Should the Company’s assessment change in a future period, it may release all or a portion of the valuation allowance, which would result in a deferred tax benefit in the period of adjustment.
For the three months ended September 30, 2025, the Company recorded an income tax expense of $0.08 million on loss before tax of $16.92 million with an effective tax rate of 0.5% in 2025. The tax expense consists primarily of Brazil income tax arising from the transfer pricing revenue recognized. For the three months ended September 30, 2024, the Company did not record income tax benefit on loss before tax of $12.08 million. The effective tax rate was 0% for the three months ended September 30, 2024, which was a result of the full valuation allowance on net deferred tax assets.
For the nine months ended September 30, 2025, the Company recorded an income tax benefit of $1.04 million on loss before tax of $66.21 million with an effective tax rate of 1.6% in 2025. The tax benefit consists of the reversal of the tax liability for Base Titanium Limited (“Base Titanium”) that was recorded primarily prior to the acquisition of Base Resources. As production of the Kwale mine has now ceased, a tax loss is expected for the year and the liability has been reversed. For the nine months ended September 30, 2024, the Company did not record income tax benefit on loss before tax of $14.86 million. The effective tax rate was 0% for the nine months ended September 30, 2024, which was a result of the full valuation allowance on net deferred tax assets.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S., introducing various changes to federal tax law. The Company has evaluated the provisions of the OBBBA and determined that they did not have a material impact on our consolidated financial statements through September 30, 2025 and none material impact is expected to its consolidated financial statements for 2025