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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2023
Asset Retirement Obligations [Abstract]  
Asset retirement obligations
11.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.

 

The Company updates these reclamation provisions based on cash flow estimates, and changes in regulatory requirements and settlements annually. 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 by project is as follows:

 

  

December 31, 2023

$

   December 31, 2022
$		 
Kingsville   2,458,564    3,151,875 
Rosita   1,485,560    1,298,397 
Vasquez   40,896    34,274 
Alta Mesa   6,574,980    - 
Centennial   168,806    168,806 
Gas Hills   63,000    63,000 
Ticaboo   36,000    36,000 
Asset retirement obligations   10,827,806    4,752,352 

 

The asset retirement obligations continuity summary is as follows:

 

Asset retirement obligation  $ 
Balance, December 31, 2021   4,176,493 
      
Accretion   429,956 
Settlement   (11,324)
Change in estimates   157,227 
Balance, December 31, 2022   4,752,352 
      
Additions (Note 9)   5,488,969 
Accretion   1,099,119 
Settlement   (291,449)
Change in estimates   (221,185)
Balance, December 31, 2023   10,827,806 

  

At the year end, the undiscounted cash flows total $17,130,164 (December 31, 2022: $6,345,630).