Tax expense

	2017		2016		2015
Tax recognised in profit or loss

Current tax		4,995		3,106		(197	)
Income tax– current year		3,702		2,414		506
Income tax – Prior year under provision		71		49		(1,636	)
Withholding tax expense		1,222		643		933

Deferred tax expense		3,696		4,611		2,567
Origination and reversal of temporary differences		3,696		4,611		2,567

Tax expense – recognised in profit or loss		8,691		7,717		2,370

Tax recognised in other comprehensive income

Income tax - current year		-		-		(199	)
Tax expense		8,691		7,717		2,171

Unrecognised deferred tax assets

	2017		2016

Tax losses carried forward		5,105		4,989

Taxable losses do

not

expire for the entities incurring taxable losses within the group. Tax losses carried forward relate to Greenstone Management Services Holdings Limited (UK) and Eersteling Gold Mine Limited. Deferred tax assets have

not

been recognised in these entities as future taxable income is

not

deemed probable to utilise these losses against.

Reconciliation of tax rate

	2017			2016		2015
Profit for the year		11,896			11,085		5,590
Total tax expense		8,691			7,717		2,370
Profit before tax		20,587			18,802		7,960

Income tax at Company's domestic tax rate (1)		-			-		2,109
Tax rate differences in foreign jurisdictions		6,546			6,293		(63	)
Foreign currency difference		-			-		(12	)
Deemed interest on loans		-			-		31
Management fee – non-deductible withholding tax portion		427			427		317
Management fee – Withholding tax on deemed dividend portion (2)		538			-		-
Management fee – non-deductible income tax portion (2)		925			-		-
Withholding tax on intercompany dividend		90			49		-
Non-deductible royalty expenses		901			753		632
Other non-deductible expenditure		107			64		442
Export incentive income credit 2016 (3)		(284	)		-		-
Export incentive income exemption 2017 (3)		(630	)		-		-
Change in tax estimate		(45	)		49		(1,636	)
Change in unrecognized deferred tax assets		116			82		550
Tax expense - recognised in profit or loss		8,691			7,717		2,370

(

) Enacted tax rate in Jersey, Channel Islands is

(

2016:0%

). The domestic income tax rate of the Company changed from

26.5%

after it re-domiciled from Canada to Jersey Channel Islands during

2016.

(

) Zimbabwean tax legislation changed during

2017

that gave rise to an additional

15%

withholding tax on a portion of the intercompany management fee considered to be a deemed dividend. The new legislation resulted in this portion of the management fee being

not

deductible for income tax purposes in Zimbabwe from

January 1, 2017.

(

) On

March 23, 2017,

the Zimbabwean revenue authority enacted a new finance act that provided for the export incentive income to be tax exempt. The

2018

finance bill indicated that the export incentive income will be tax exempt from

June 1, 2016.

The new finance bill resulted in an income tax credit being applied in the

2017

income tax calculation giving rise to a credit for the export incentive income of

2016.

Tax paid	2017			2016			2015

Net income tax (payable)/receivable at January 1		(345	)		344			(1,617	)
Current tax (expense)/tax credit		(4,995	)		(3,106	)		197
Income tax recognised through other comprehensive income								199
Foreign currency movement		(17	)		(49	)		103
Tax paid		4,212			2,466			1,462
Net income tax payable at December 31		(1,145	)		(345	)		344

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	Assets				Liabilities						Net
	2017		2016		2017			2016			* 2017			*2016

Property, plant and equipment		-		-		(20,985	)		(17,092	)		(20,985	)		(17,092	)
Allowance for obsolete stock		35		12		-			-			35			12
Prepayments		-		-		(4	)		(3	)		(4	)		(3	)
Unrealised foreign exchange		97		-		-			-			97			-
Share based payments		12		-		-			-			12			-
Provisions		1,290		1,218		-			-			1,290			1,218
Tax assets/ (liabilities)		1,434		1,230		(20,989	)		(17,095	)		(19,555	)		(15,865	)

The deferred tax liability consists of a deferred tax asset of

$65

(

2016:

$44

) from the South African operations and a deferred tax liability of

$19,620

(

2016:

$15,909

) due to the Zimbabwean operations. The amounts are in different tax jurisdictions and cannot offset. The amounts are presented as a Non-current asset and a Non-current liability in the Statement of financial position. The deferred tax asset recognised is supported by evidence of probable future taxable income.

Movement in recognised deferred tax assets and liabilities

	Balance January 1, 2017			Recognised in profit or loss			Foreign exchange movement		Balance December 31, 2017
Property, plant and equipment		(17,092	)		(3,893	)		-		(20,985	)
Allowance for obsolete stock		12			23			-		35
Prepayments		(3	)		(1	)		-		(4	)
Unrealised foreign exchange		-			97			-		97
Share based payments		-			12			-		12
Provisions		1,218			66			6		1,290
Total		(15,865	)		(3,696	)		6		(19,555	)

	Balance January 1, 2016			Recognised in profit or loss			Foreign exchange movement			Balance December 31, 2016
Property, plant and equipment		(12,988	)		(4,104	)		-			(17,092	)
Allowance for obsolete stock		-			12			-			12
Prepayments		(3	)		2			(2	)		(3	)
Provisions		733			477			8			1,218
Assessed loss recognised		998			(998	)		-			-
Total		(11,260	)		(4,611	)		6			(15,865	)