Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

Asset Retirement Obligations
6 Months Ended
Jun. 30, 2020
Asset Retirement Obligations  
Asset Retirement Obligations


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 June 30, 2020, the current closure estimate was $29.8 million and the estimated future cost to complete the reclamation, including inflation, is $39.9 million.  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.

For the period ended

June 30, 2020

December 31, 2019



Beginning of period



Change in estimated liability



Accretion expense



End of period



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