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Note 15 - Income Tax

12 Months Ended

Dec. 31, 2024

15.

Income Tax

Income tax reconciliation

The following table reconciles the expected income taxes expense (recovery) at the Canadian statutory income tax rates to the amounts recognized in the statements of operations for the year ended December 31, 2024, 2023 and 2022:

	December 31,			December 31,			December 31,
	2024			2023			2022
(Loss) income before income taxes	$	(29,447	)	$	(64,666	)	$	12,551
Statutory tax rate		26.5	%		26.5	%		26.5	%
Expected expense (recovery) at statutory rate		(7,804	)		(17,136	)		3,326
Tax rate difference		(3	)		(1	)		—
Share based compensation		461			—			—
Permanent differences		918			107			(3,286	)
Net change in benefits previously not recognized		8,815			17,699			(40	)
Share issuance costs		(48	)		(515	)		—
True up		227			(170	)		—
OCI		(355	)		—			—
Foreign exchange		(2,385	)		—			—
Other		174			16			—
Income tax expense (recovery)	$	—		$	—		$	—

The significant components of the Company’s deferred income tax assets (liabilities) are as follows:

	December 31,			December 31,
	2024			2023
Deferred tax liabilities:
Convertible notes payable	$	(4,619	)	$	(6,475	)
Property, plant and equipment		—			—
	$	(4,619	)	$	(6,475	)
Deferred tax assets:
Non-capital loss	$	4,619		$	6,475
Financial derivative liability		—			—
		4,619		$	6,475
Deferred income tax assets / (liabilities)	$	—		$	—

Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax values. The unrecognized deductible temporary differences at December 31, 2024 and 2023 are as follows:

	December 31,		December 31,
	2024		2023
Non-capital loss carry-forwards	$	75,830	$	51,652
Exploration and evaluation properties		21,459		20,630
Property, Plant and Equipment		43,299		39,973
Capital loss carry forward		27,994		26,835
Other		14,253		10,683
Total unrecognized temporary differences	$	182,835	$	149,773

The capital loss of $27,994 ( December 31, 2023 - $26,835) can be carried forward indefinitely and can only be realized against future capital gains.

The Company has the following unrecognized non-capital loss carryforwards of approximately $72,286 ( December 31, 2023 – $48,769) which may be carried forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by taxation authorities, expiring in the following years:

	December 31,		December 31,
Year	2024		2023
2037	$	33	$	31
2038		384		361
2039		1,532		1,440
2040		3,621		3,402
2041		15,094		8,340
2042		15,554		14,318
2043		23,513		20,877
2044		12,555		—
Total	$	72,286	$	48,769

The Company also has non-capital loss carryforwards of $616 and $2,928 to apply against future year income tax in Australia and the United States, respectively. The majority of these carry forward losses do not expire.