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7. Asset Retirement Obligation
 12 Months Ended
Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation

During 2011, the Company assessed the obligation for removal and remediation costs relating to its plants and mine in Mexico.  Management assigned a cost to the expected work involved in complying with the requirements of the Mexico operating permits.  Management applied, based on a 20 year life, a cost inflation factor, and then discounted that cost to a current net present value based on a discount rate of 6% (management’s estimate of its credit-adjusted interest rate). During 2011, management determined a future cost in 2031 of approximately $430,000 with a net present value of $134,000.

 

Asset Retirement Obligation        
         
   Balance December 31, 2011   $ 134,000  
   Accretion                8,040  
   Balance December 31, 2012            142,040  
   Accretion                8,040  
   Balance December 31, 2013            150,080  
   Accretion              (2,390)  (1)
   Balance December 31, 2014   $ 147,690  

 

The Company’s total asset retirement obligation and accrued reclamation costs of $255,190 and $257,580 at December 31, 2014 and 2013, respectively include reclamation obligations for Idaho and Montana operations of $107,500.

 

(1) During 2014, an adjustment was made to correct immaterial excess accretion expense recognized in 2013 and 2012.