Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

v3.23.1
Asset Retirement Obligations
3 Months Ended
Mar. 31, 2023
Asset Retirement Obligations  
Asset Retirement Obligations

10. Asset Retirement Obligations

 

Asset retirement obligations (“ARO”) relate to the Lost Creek mine and Shirley Basin project and are equal to the current estimated reclamation cost escalated at inflation rates ranging from 0.74% to 2.44% and then discounted at credit adjusted risk-free rates ranging from 0.33% to 9.23%. Current estimated reclamation costs include costs of closure, reclamation, demolition and stabilization of the wellfields, processing plants, infrastructure, aquifer restoration, waste dumps, and ongoing post-closure environmental monitoring and maintenance costs. The schedule of payments required to settle the future reclamation extends through 2033.

 

The present value of the estimated future closure estimate is presented in the following table.

 

Asset Retirement Obligations

 

Total

 

 

 

 

 

December 31, 2022

 

 

30,701

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

38

 

Accretion expense

 

 

122

 

 

 

 

 

 

March 31, 2023

 

 

30,861

 

 

The restricted cash discussed in note 5 relates to the surety bonds provided to the governmental agencies for these and other reclamation obligations.