Translation of "Latente steuerforderungen" in English

Effects of changes in tax rates on the deferred tax assets and liabilities are recognised upon substantively enacted amendments to the law.

The carrying amount of deferred tax assets for entities which have made a loss in either the current or preceding year was kEUR 258 (2016: kEUR nil).

Deferred tax assets are offset against deferred tax liabilities to the extent that they have the same maturity and relate to the same taxation authority.

The carrying amount of deferred tax assets for entities which have made a loss in either the current or preceding year waskEUR1,542 (2014:kEUR2,281).

Deferred tax assets and liabilities are recorded for all temporary differences between tax and commercial balance sheets and for losses brought forward for tax purposes as well as for tax credits of the companies included in consolidation.

The carrying amount of deferred tax assets for entities which have made a loss in either the current or preceding year was kEUR 1,542 (2014: kEUR 2,281).

The recoverability of deferred tax assets is reviewed at least annually.

The carrying amount of deferred tax assets is disclosed in note 14.

The deferred tax receivables and tax liabilities have a term of more than one year.

The deferred tax recovery is a non-cash item and will only be realized once the Company's exploration properties are developed and in production.

The deferred tax recovery related to the impact of foreign exchange on Mexican tax attributes (resulting from the Peso strengthening against the $US in quarter).

The recorded amount of total deferred tax assets could be reduced if estimates of projected future taxable income are lowered, or if changes in current tax regulations are enacted that impose restrictions on the timing or extent of the Company’s ability to utilize future tax benefits.

T he Company recorded a deferred tax recovery of $589 for the nine months ended September 30, 2017 (September 30, 2016: $1,294 deferred tax expense) related to the reversal of the deferred tax liability that was set up at December 31, 2016 in relation to temporary differences between the book and tax base of its Mexican non-monetary assets.

The Company also recorded a deferred tax recovery of $589 for the six months ended June 30, 2017 (June 30, 2016: $795 deferred tax expense) related to the reversal of the deferred tax liability that was set up at December 31, 2016 in relation to temporary differences between the book and tax base of its Mexican non-monetary assets.

Non-current assets exclude deferred tax assets, financial instruments, post-employment benefit assets and rights arising under insurance contracts.

The deferred tax recovery is a non-cash item and will only materialize once the Company's exploration properties are developed and in production.

A deferred (non-cash) tax recovery of $589 (March 31, 2016: $63) was recognized in the quarter related to the reversal for the deferred tax liability that was set up at December 31, 2016 in relation to temporary differences between the book and tax base of its Mexican non-monetary assets.

Deferred tax asset is recognized on all temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.