Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

Asset Retirement Obligations
3 Months Ended
Mar. 31, 2021
Asset Retirement Obligations  
10. Asset Retirement Obligations


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 an inflation rate and then discounted at 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








December 31, 2020










Change in estimated reclamation costs





Accretion expense










March 31, 2021






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