PROVISION FOR ENVIRONMENTAL REHABILITATION

12 Months Ended

Dec. 31, 2022

Provision For Environmental Rehabilitation [Abstract]

PROVISION FOR ENVIRONMENTAL REHABILITATION

The Company's provision for environmental rehabilitation results from mining equipment and previously mined property interests. The provision consists primarily of costs associated with mine reclamation and closure activities. These activities, which tend to be site specific, generally include costs for decommissioning the mill complex and related infrastructure, physical and chemical stability of the tailings area and, post-closure site security and monitoring costs. The Company considers such factors as changes in laws and regulations, and requirements under existing permits in determining the estimated costs. Such analysis is performed on an on-going basis.

The Company estimates that the undiscounted un-inflated value of the cash flows required to settle the provision is $8.6 million for the McCoy-Cove property, $1.8 million for the Granite Creek property, $67.5 million for the Lone Tree property, $18.1 million for the Ruby Hill property and $1.2 million for the Argenta property. In calculating the best estimate of the Company's provision, management used risk-free interest rates ranging from 3.88% to 4.14%. A reconciliation of the discounted provision is provided below:


	Argenta		McCoy-Cove		Granite Creek		Lone Tree		Ruby Hill		Total
Balance as at January 1, 2022	$	—	$	6,684	$	2,394	$	60,592	$	23,179	$	92,849
Acquisitions	1,170		—		—		77		—		1,247
Change in estimate capitalized	—		(84)		(995)		(13,066)		(10,704)		(24,849)
Accretion expense	—		212		74		1,917		798		3,001
Reclamation expenditures	—		—		—		(622)		—		(622)
Disposal	—		—		—		—		—		—
Balance as at December 31, 2022	1,170		6,812		1,473		48,898		13,273		71,626
Less current portion	398		—		—		548		—		946
Long-term portion	$	772	$	6,812	$	1,473	$	48,350	$	13,273	$	70,680


	South Arturo		McCoy-Cove		Granite Creek		Lone Tree		Ruby Hill		Total
Balance as at January 1, 2021	$	3,427	$	4,728	$	—	$	—	$	—	$	8,155
Acquisitions	—		—		2,051		60,475		23,208		85,734
Change in estimate capitalized	—		1,842		318		—		(80)		2,080
Accretion expense	44		114		25		117		51		351
Reclamation expenditures	—		—		—		—		—		—
Disposal	(3,471)		—		—		—		—		(3,471)
Balance as at December 31, 2021	—		6,684		2,394		60,592		23,179		92,849
Less current portion	—		—		—		—		—		—
Long-term portion	$	—	$	6,684	$	2,394	$	60,592	$	23,179	$	92,849