Note 12 - Asset Retirement Obligations

12 Months Ended

Jul. 31, 2022

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE 12: ASSET RETIREMENT OBLIGATIONS

Asset retirement obligations (“ARO”s) relate to future remediation and decommissioning activities at our Palangana Mine, Hobson Processing Facility, Reno Creek Project and Alto Paraná Titanium Project, as well as our recently acquired Christensen Ranch Mine and Irigaray Processing Facility pursuant to the U1A Acquisition.

	July 31, 2022		July 31, 2021
Balance, beginning of year	$	3,939	$	3,735
Accretion		630		204
Assumed from U1A Acquisition		12,707		-
Balance, end of year	$	17,276	$	3,939

The estimated amounts and timing of cash flows and assumptions used for the ARO estimates are as follows:

	July 31, 2022			July 31, 2021
Undiscounted amount of estimated cash flows	$28,739			$8,221
Payable in years	1	to	23		9	to	21
Inflation rate	1.56%	to	5.32%		1.56%	to	2.17%
Discount rate	3.72%	to	6.35%		5.50%	to	5.96%

During Fiscal 2022, we assumed ARO of $12,707 related to the Christensen Ranch Mine and Satellite Plant and the Irigaray Processing Facility as a result of the U1A Acquisition. The estimated timing of cash flows for the remediation and decommissioning activities ranges from one year to 23 years from the date of U1A Acquisition.

The undiscounted amounts of estimated cash flows for the next five years and beyond are as follows:

Fiscal 2023	$	214
Fiscal 2024		1,300
Fiscal 2025		1,472
Fiscal 2026		2,489
Fiscal 2027		2,509
Remaining balance		20,755
	$	28,739