Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

Asset Retirement Obligations
3 Months Ended
Mar. 31, 2020
Asset Retirement Obligations  
Asset Retirement Obligations

11.Asset Retirement and Reclamation Obligations


Asset retirement obligations ("ARO") relate to the Lost Creek mine and Pathfinder projects and are equal to the present value of all estimated future costs required to remediate any environmental disturbances that exist as of the end of the period discounted using discount rates ranging from 0.33% to 7.25%. Included in this liability are the costs of closure, reclamation, demolition and stabilization of the mines, processing plants, infrastructure, aquifer restoration, waste dumps and ongoing post-closure environmental monitoring and maintenance costs.


At March 31, 2020, the total undiscounted amount of the future cash needs was estimated to be $29.8 million. The schedule of payments required to settle the ARO liability extends through 2033.


The restricted cash discussed in note 6 is related to the surety bonds which provide security to the governmental agencies on these obligations.








For the period ended


March 31, 2020


December 31, 2019









Beginning of period




Change in estimated liability




Accretion expense








End of period