Teal Valley T.TV

RE:RE:Estimated 2022 Cash Flows

[Galvanizer]

Estimated the income tax expense based on net income ($110-10-12-2=$86) less estimated depreciation (used 2020 depreciation as a reference for the estimated tax depreciation).  Applied an average 25% rate and then massaged the balance (Caribou income was excluded as it has a long history of tax losses available).  This is only a high-level estimate – consider it as a place holder (as there are too many unknowns to provide a more precise estimate).

Please note that Trevali stated in the 2021 Q3 MDA (Page 8) that “The current income tax expense in Q3 2021 reflects mining taxes during the quarter and income taxes resulting from increased profitability and increasing commodity prices…”  Mining taxes (‘resource rent taxes’ / ‘production taxes’), under IAS 12, are included in income taxes. There is no further explanation / disclosure provided by Trevali as to the extent of these two different types of taxes (rates applied and applicable jurisdictions (B Faso, Namibia, Peru, or Canada).  Income taxes totals $5.9M (as of 2021 Q3 YTD); it is a significant line item and you would expect management to have provided more information on the nature and extent of these current and expected tax costs.

firecracker74 wrote: Great job. How did you come up with your tax numbers? In this year's third quarter report taxes were 40$ of pre tax profits in quarter 3 and about 33% year to date.