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Income Taxes

12 Months Ended

Dec. 31, 2022

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
	2022			2021
(Earnings) Loss before income taxes	$	(24,908	)	$	16,790
Canadian federal and provincial income tax rates		27%			27%
Expected income tax expense (recovery)		6,725			(4,533	)
Increase (decrease) in income tax recovery resulting from:
Share-based compensation		448			552
Share issuance costs		(37	)		(60	)
Adjustment to tax estimates		114			1,170
Amortization of flow-through share premium		(844	)		(1,220	)
Flow-through expenditures renunciation		1,934			2,856
Difference in future and foreign tax rates		81			(172	)
Sale of Homestake Resource Corporation		(3,021	)		-
Other		634			(149	)
Increase in unrecognized tax asset		(6,034	)		1,556
Income tax expense (recovery)	$	-		$	-

Significant components of deferred tax asset and liabilities are:

	December 31 2021			Net loss			December 31 2022
Deferred income tax assets
Non-capital losses carried forward	$	21,032		$	(7,397	)	$	13,635
Capital losses carried forward		183			(110	)		73
Share issuance costs and CEC		552			(235	)		317
Investments		18			4			22
Investments in associates		-			633			633
Site reclamation obligations		1,121			24			1,145
Property and equipment		376			51			427
Mineral property interests		5,001			(28	)		4,973
Capital lease obligation		124			(20	)		104
Other		63			(63	)		-
		28,470			(7,141	)		21,329
Deferred income tax liabilities
Property and equipment		(86	)		33			(53	)
Mineral property interests		(1,606	)		(1,061	)		(545	)
Investments		(42	)		14			(28	)
Net deferred tax assets		26,736			(6,034	)		20,702
Unrecognized deferred tax assets		(26,736	)		6,034			(20,702	)
Net deferred tax balance	$	-		$	-		$	-

	December 31 2020			Net loss			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	$	-		$	-		$	-

The Company has accumulated non-capital losses of approximately $51,335 (December 31, 2021 – $79,718) in Canada, which may be carried forward to reduce taxable income of future years. The non-capital losses will, if unused, expire between 2025 and 2042. The Company has not recognized any deferred tax assets at December 31, 2022, 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 $247 accumulated capital losses (December 31, 2021 – $1,312) in Canada which may be carried forward indefinitely and used to reduce capital gains in future years.