Assets Held-For-Sale

12 Months Ended

Dec. 31, 2024

Asset Retirement Obligation Disclosure [Abstract]

Assets Held-For-Sale

Assets Held-For-Sale

As of December 31, 2024 and December 31, 2023, the Company’s assets held-for-sale consisted of equipment not-in-use of $5.7 million and $7.1 million, respectively.

In July 2024, the Company entered into an Equipment Purchase Agreement to sell one Ball Mill for $4.0 million, before commissions and expenses. For the year ended December 31, 2024, the Company recorded a $1.5 million reduction to equipment not-in-use for the sale of the Ball Mill and recognized $2.0 million as Gain on asset sales related to this gain on sale.

In August 2022 and with subsequent amendments, the Company entered into an Equipment Purchase Agreement to sell equipment totaling $13.6 million. Under the terms of the agreement, the Company received $1.6 million in nonrefundable deposit payments. Effective March 1, 2024, the buyer terminated a portion of the Equipment Purchase Agreement related to one Ball Mill and one semi-autogenous (“SAG”) mill and effective April 5, 2024, the buyer terminated the balance of the Equipment Purchase Agreement. In accordance with ASC Topic 606, Revenue from Contracts with Customers, because the sale did not materialize, the Company recognized $1.6 million as Gain on asset sales during the year ended December 31, 2024, to account for the gain on forfeiture of non-refundable deposits.

As of December 31, 2024, the Company still held title to and risk of loss of the one semi-autogenous (“SAG”) mill, one Ball Mill, and one water treatment system. The Company is actively seeking buyers for its assets held-for-sale and anticipates completing the sale within one year, subject to market conditions and the successful negotiation of terms with prospective buyers.

As of December 31, 2024 and 2023, the Company estimated the fair value of the assets held-for-sale and determined that the fair value estimate exceeded the carrying value and as such no impairment loss was recorded.