Annual report pursuant to Section 13 and 15(d)

Asset Retirement Obligations

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Asset Retirement Obligations
12 Months Ended
Dec. 31, 2021
Asset Retirement Obligations  
11. Asset Retirement Obligations

11.

Asset Retirement Obligations

 

 

 

Asset retirement obligations ("ARO") relate to the Lost Creek mine and Pathfinder projects and are equal to the current estimated reclamation cost escalated at inflation rates ranging from 0.74% to 2.44% and then discounted at a credit adjusted risk-free rates ranging from 0.33% to 7.25%. Current estimated reclamation costs include costs of closure, reclamation, demolition and stabilization of the well fields, 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, 2018

 

 

30,384

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

11

 

Accretion expense

 

 

577

 

 

 

 

 

 

December 31, 2019

 

 

30,972

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

(1,583 )

Accretion expense

 

 

576

 

 

 

 

 

 

December 31, 2020

 

 

29,965

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

(536 )

Accretion expense

 

 

486

 

 

 

 

 

 

December 31, 2021

 

 

29,915

 

 

 

The restricted cash discussed in note 6 relates to the surety bonds provided to the governmental agencies for these and other reclamation obligations.