XML 80 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
ASSET RETIREMENT OBLIGATION
 12 Months Ended
Dec. 31, 2019
ASSET RETIREMENT OBLIGATION  
ASSET RETIREMENT OBLIGATION

6.ASSET RETIREMENT OBLIGATION

The Company’s mining and exploration activities are subject to various state and federal law and regulations governing the protection of the environment. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with the applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future restoration and reclamation costs are based principally on legal and regulatory requirements.

Changes to the Company’s asset retirement obligation are summarized below:

 

 

 

 

 

 

 

 

 

    

December 31, 

    

December 31, 

(thousands of dollars)

 

2019

 

2018

Balance, beginning of period

 

$

6,203

 

$

5,731

Liabilities settled

 

 

(293)

 

 

(521)

Accretion expense

 

 

390

 

 

993

Balance, end of period

 

 

6,300

 

 

6,203

Less: Current portion

 

 

(894)

 

 

(708)

Non-current portion

 

$

5,406

 

$

5,495

 

As of December 31, 2019, the Company’s asset retirement obligation was fully secured by surety bonds totaling $9.2 million, which were partially collateralized with restricted cash totaling $3.8 million.