Annual report pursuant to Section 13 and 15(d)

Asset Retirement Obligations

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Asset Retirement Obligations
12 Months Ended
Dec. 31, 2023
Asset Retirement Obligations  
Asset Retirement Obligations

12. Asset Retirement Obligations

 

Asset retirement obligations ("ARO") relate to the Lost Creek mine and Shirley Basin 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 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, 2020

 

 

29,965

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

(536 )

Accretion expense

 

 

486

 

 

 

 

 

 

December 31, 2021

 

 

29,915

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

326

 

Accretion expense

 

 

460

 

 

 

 

 

 

December 31, 2022

 

 

30,701

 

 

 

 

 

 

Change in estimated reclamation costs

 

 

38

 

Accretion expense

 

 

497

 

 

 

 

 

 

December 31, 2023

 

 

31,236

 

 

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