Asset Retirement Obligation

12 Months Ended

Dec. 31, 2019

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation

The Company is legally required to perform reclamation on sites where environmental disturbance is caused by the development or on-going mining of a property to restore it to its original condition at the end of its useful life. In accordance with FASB ASC 410-20, Asset Retirement Obligations, the Company recognized the fair value of that liability as an asset retirement obligation. The total amount of undiscounted cash flows required to settle the estimated obligation is $5,533 which has been discounted using a credit-adjusted rate of 24.94% (2018 – 24.94%) and an inflation rate of 2.29% (2018 – 2.29%).

The following table describes the changes to the Company's asset retirement obligation liability: 

	December 31, 2019		December 31, 2018
	$’000		$’000
Asset retirement obligation at beginning of year	$	552	$	686
Reverse acquisition (note 26)		739		-
Change in estimate		1,342		(712	)
Accretion expense		179		578
Asset retirement obligation at end of year	$	2,812	$	552