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LEASE LIABILITIES

12 Months Ended

Dec. 31, 2022

NOTE 10 LEASE LIABILITIES

The Company’s lease obligations include equipment, vehicles and office space. Leased assets are included in plant and equipment (Note 8). The terms and conditions contained in the Company’s leases do not contain variable components.

Lease liabilities as at December 31, 2022 and 2021 are as follows:


	Total discounted lease liabilities
	December 31, 2022		December 31, 2021
Finance leases	$	1,320	$	3,833
Operating lease		1,086		583
Lease liabilities	$	2,406	$	4,416
Current portion		(1,215)		(2,901)
Long-term portion	$	1,191	$	1,515

Lease liabilities as at December 31, 2022 are recorded using a weighted average discount rate of 3.63% and 8.00% for finance and operating leases and have average remaining lease terms of two years and three years, respectively. By comparison, as at December 31, 2021 lease liabilities were recorded at a rate of 6.67% and 8.73% for finance and operating leases and had average remaining lease term of one year and three years.

During the year ended December 31, 2022, the Company recorded $3.0 million (December 31, 2021 – $2.0 million) in interest and other finance costs related to leases. A breakdown of the lease related costs for the year ended December 31, 2022 and 2021 are as follows:


	December 31, 2022		December 31, 2021
Finance leases:
Amortization of ROU assets	$	2,865	$	1,659
Interest expense		140		329
Total	$	3,005	$	1,988

Operating lease:
Rent expense	$	152	$	135

Future minimum undiscounted lease payments as at December 31, 2022 are as follows:


	Payments due by period
	2023		2024		2025		2026		Total

	(in thousands)
Operating lease obligation	$	512	$	332	$	204	$	118	$	1,166
Finance lease obligations		1,060		357		68		29		1,514
Total future minimum lease payments	$	1,572	$	689	$	272	$	147	$	2,680
Less: Imputed interest										21
Total										2,701