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Decommissioning And Restoration Liability
 12 Months Ended
Dec. 31, 2021
Disclosure Of Decommissioning And Restoration Liability [Abstract]  
Decommissioning and Restoration Liability
8.
DECOMMISSIONING AND RESTORATION LIABILITY
The decommissioning and restoration liability is the addition of the liabilities for both the GK Mine and the Kennady North Project, which are broken down separately below.
The GK Mine decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2021 and 2020:
 
 
   
 
 
 
 
 
December 31,
 
2021
 
 
 
 
 
 
   
 
 
 
 
 
December 31,
 
2020
 
 
 
 
 
 
     
  Expected undiscounted cash flows
   
$
                                 84,128
 
    $                                  61,558  
     
  Discount rate
   
 
1.42%
 
      0.67%  
     
  Inflation rate
   
 
2.00%
 
      2.00%  
     
  Periods
   
 
2030
 
      2030  
The Kennady North Project decommissioning and restoration liability was calculated using the following assumptions as at December 31, 2021 and 2020:
 
 
   
 
 
 
 
 
December 31,
 
2021
 
 
 
 
 
 
   
 
 
 
 
 
December 31,
 
2020
 
 
 
 
 
 
  Expected undiscounted cash flows
   
$
                                 2,467
 
    $                                  2,268  
  Discount rate
   
 
0.25%
 
      0.25%  
  Inflation rate
   
 
2.00%
 
      2.00%  
  Periods
   
 
2024
 
      2024  
The decommissioning and restoration liability has been calculated using expected cash flows that are current dollars, with inflation.
During the year ended December 31, 2021, the decommissioning and restoration liability was changed by $19,471 (2020 – $13,364),
resulting primarily from a refinement of scope and individual unit cost increases and changes in discount rates.
The continuity of the decommissioning and restoration liability at December 31, 2021 and 2020 is as follows:
 
     
 
GK Mine
     
KNP
     
Total
  
       
Balance, at January 1, 2020
   
$
 56,429
 
   
$
 2,087
 
   
$
 58,516
 
       
Change in estimate of discounted cash flows
   
 
13,086
     
 
278
     
 
13,364
  
       
Accretion recorded during the year
   
 
976
     
 
76
     
 
1,052
  
       
Balance, at December 31, 2020
   
$
 70,491
 
   
$
 2,441
 
   
$
 72,932
 
       
Less: current portion of decommissioning and restoration liability
   
 
2,489
     
 
-
     
 
2,489
  
       
Non-current decommissioning and restoration liability, at December 31, 2020
   
$
             68,002
 
   
$
             2,441
 
   
$
             70,443
 
       
Change in estimate of discounted cash flows
   
 
19,223
     
 
248
     
 
19,471
  
       
Accretion recorded during the year
   
 
704
     
 
6
     
 
710
  
       
Balance, at December 31, 2021
   
$
 90,418
 
   
$
 2,695
 
   
$
 93,113
 
       
Less: current portion of decommissioning and restoration liability
   
 
721
     
 
-
     
 
721
  
       
Non-current decommissioning and restoration liability, at December 31, 2021
   
$
 89,697
 
   
$
 2,695
 
   
$
 92,392