XML 59 R27.htm IDEA: XBRL DOCUMENT v3.22.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes  
Income Taxes

Note 22: Income taxes 

 

Income tax recovery provision

 

The reconciliation of the income tax recovery computed at statutory rates to the reported income tax recovery is:

 

 

 

Years ended December 31

 

 

 

2021

 

 

2020

 

Loss before income taxes

 

$16,790

 

 

$10,763

 

Canadian federal and provincial income tax rates

 

 

27%

 

 

27%

Expected income tax recovery

 

 

(4,533)

 

 

(2,906)

Increase (decrease) in income tax recovery resulting from:

 

 

 

 

 

 

 

 

Spin-out transaction

 

 

-

 

 

 

8,650

 

Acquisition of Eastmain

 

 

-

 

 

 

(7,838)

Share-based compensation

 

 

552

 

 

 

683

 

Share issuance costs

 

 

(60)

 

 

(462)

Adjustment to tax estimates

 

 

1,170

 

 

 

(22)

Amortization of flow-through share premium

 

 

(1,220)

 

 

(120)

Flow-through expenditures renunciation

 

 

2,856

 

 

 

489

 

Difference in future and foreign tax rates

 

 

(172)

 

 

234

 

Other

 

 

(149)

 

 

55

 

Increase in unrecognized tax asset

 

 

1,556

 

 

 

1,237

 

Income tax recovery

 

$-

 

 

$-

 

  

Significant components of deferred tax asset and liabilities are:

 

 

 

December 31

2020

 

 

Net loss

 

 

Equity

 

 

December 31

2021

 

Deferred income tax assets

 

 

 

 

Non-capital losses carried forward

 

$19,846

 

 

$1,186

 

 

$-

 

 

 

21,032

 

Capital losses carried forward

 

 

82

 

 

 

101

 

 

 

-

 

 

 

183

 

Share issuance costs and CEC

 

 

833

 

 

 

(281)

 

 

-

 

 

 

552

 

Investments

 

 

44

 

 

 

(26)

 

 

-

 

 

 

18

 

Site reclamation obligations

 

 

1,137

 

 

 

(16)

 

 

-

 

 

 

1,121

 

Property and equipment

 

 

312

 

 

 

64

 

 

 

-

 

 

 

376

 

Mineral property interests

 

 

3,985

 

 

 

1,016

 

 

 

-

 

 

 

5,001

 

Capital lease obligation

 

 

66

 

 

 

58

 

 

 

-

 

 

 

124

 

Other

 

 

-

 

 

 

63

 

 

 

-

 

 

 

63

 

 

 

 

26,305

 

 

 

2,165

 

 

 

-

 

 

 

28,470

 

Deferred income tax liabilities

 

 

 

 

 

 

 

Property and equipment

 

 

(52)

 

 

(34)

 

 

-

 

 

 

(86)

Mineral property interests

 

 

(877)

 

 

(729)

 

 

-

 

 

 

(1,606)

Investments

 

 

(196)

 

 

154

 

 

 

-

 

 

 

(42)

Net deferred tax assets

 

 

25,180

 

 

 

1,556

 

 

 

-

 

 

 

26,736

 

Unrecognized deferred tax assets

 

 

(25,180)

 

 

(1,556)

 

 

-

 

 

 

(26,736)

Net deferred tax balance

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

December 31

2019

 

 

Net loss

 

 

Equity

 

 

December 31

2020

 

Deferred income tax assets

 

 

 

 

 

 

 

 

 

 

Non-capital losses carried forward

 

$15,076

 

 

$4,770

 

 

$-

 

 

$19,846

 

Capital losses carried forward

 

 

45

 

 

 

37

 

 

 

-

 

 

 

82

 

Share issuance costs and CEC

 

 

656

 

 

 

177

 

 

 

-

 

 

 

833

 

Investments

 

 

57

 

 

 

(13)

 

 

-

 

 

 

44

 

Site reclamation obligations

 

 

576

 

 

 

561

 

 

 

-

 

 

 

1,137

 

Property and equipment

 

 

259

 

 

 

53

 

 

 

-

 

 

 

312

 

Mineral property interests

 

 

7,823

 

 

 

(3,838)

 

 

-

 

 

 

3,985

 

Capital lease obligation

 

 

-

 

 

 

66

 

 

 

-

 

 

 

66

 

Peruvian Value Added Tax Receivable

 

 

402

 

 

 

(402)

 

 

-

 

 

 

-

 

Foreign exchange on intercompany

 

 

6

 

 

 

(6)

 

 

-

 

 

 

-

 

 

 

 

24,900

 

 

 

1,405

 

 

 

-

 

 

 

26,305

 

Deferred income tax liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

-

 

 

 

(52)

 

 

-

 

 

 

(52)

Mineral property interests

 

 

(913)

 

 

36

 

 

 

-

 

 

 

(877)

Investments

 

 

-

 

 

 

(196)

 

 

-

 

 

 

(196)

Bridge loan

 

 

(44)

 

 

44

 

 

 

-

 

 

 

-

 

Net deferred tax assets

 

 

23,943

 

 

 

1,237

 

 

 

-

 

 

 

25,180

 

Unrecognized deferred tax assets

 

 

(23,943)

 

 

(1,237)

 

 

-

 

 

 

(25,180)

Net deferred tax balance

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

The Company has accumulated non-capital losses of approximately $79,718 (December 31, 2020 – $75,864) in Canada, which may be carried forward to reduce taxable income of future years. The non-capital losses will, if unused, expire between 2024 and 2041. The Company has not recognized any deferred tax assets at December 31, 2021, in respect of these non-capital losses due to the uncertainty that future operations will generate sufficient taxable income to utilize these non-capital losses.

 

The Company has $1,312 accumulated capital losses (December 31, 2020 – $nil) in Canada which may be carried forward indefinitely and used to reduce capital gains in future years.