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Asset retirement obligations
 12 Months Ended
Dec. 31, 2022
Asset retirement obligations [Abstract]  
Asset retirement obligations
12.Asset retirement obligations

 

The Company is obligated by various federal and state mining laws and regulations which require the Company to reclaim surface areas and restore underground water quality for certain assets in Texas, Wyoming, Utah and Colorado. These projects must be returned to the pre-existing or background average quality after completion of mining.

 

Annually, the Company updates these reclamation provisions based on cash flow estimates, and changes in regulatory requirements and settlements. This review may result in an adjustment to the asset retirement obligations in addition to the outstanding liability balance. The Company used an inflation factor of 2.5% per year and a discount rate of 11% in estimating the present value of its future cash flows.

 

The asset retirement obligations balance consists of:

 

   December 31,
2022
$		   December 31,
2021
$		 
Kingsville   3,151,875    2,671,295 
Rosita   1,298,397    1,198,255 
Vasquez   34,274    39,137 
Centennial   168,806    168,806 
Gas Hills   63,000    63,000 
Ticaboo   36,000    36,000 
Asset retirement obligations   4,752,352    4,176,493 

 

The asset retirement obligations continuity summary is as follows:

 

Asset retirement obligation  $ 
Balance, December 31, 2020   5,239,108 
      
Accretion   400,710 
Adjustments   (1,719,943)
Settlement   (11,189)
Additions from Azarga asset acquisition (Note 10)   267,807 
Balance, December 31, 2021   4,176,493 
      
Accretion   429,956 
Settlement   (11,324)
Adjustments   157,227 
Balance, December 31, 2022   4,752,352