Reclamation Obligation

12 Months Ended

Dec. 31, 2020

13.	RECLAMATION OBLIGATIONS


	Mexico			Brazil			USA			Total
Balance – December 31, 2018	$	-		$	4,079		$	19,863		$	23,942
Accretion		-			334			385			719
Change in estimates		-			3,586			2,087			5,673
Foreign exchange translation		-			(105	)		-			(105	)

Balance – December 31, 2019		-			7,894			22,335			30,229
Assumed with the Leagold Acquisition		32,878			29, 36 0			-			62,2 3 8
Accretion		179			1,845			185			2,209
Change in estimates		16,634			10,241			4,662			31,537
Reclamation expenditures		(49	)		(276	)		(71	)		(396	)
Foreign exchange translation		-			(5,0 2 6	)		-			(5,0 2 6	)
Balance – December 31, 2020		49,642			44,038			27,111			120,791

Less: Current portion		(2,410	)		(1,278	)		-			(3,688	)
Non-current portion	$	47,232		$	42,760		$	27,111		$	117,103

The Company’s en

ironmental permits require that it reclaims any land disturbed during mine development, construction and operations. The majority of these reclamation costs are expected to be incurred subsequent to the end of the expected useful life of the operation to which they relate. The Company’s provision for mine closure and reclamation consists of costs accrued based on the current best estimate of mine closure and reclamation activities. The Company’s provision for future site closure and reclamation costs is based on the level of known disturbance at the reporting date, known legal requirements and internal and external cost estimates.

The Company measures the provision at the expected value of future cash flows using inflation rates of 2.0% to 3.5% (2019 – 2.2% to 3.3%) and discounted to the present value using discount rates of 0.9% to 6.9% (2019 – 1.8% to 5.8%) depending on the region in which the liabilities will be realized. The undiscounted value of the provision as of December 31, 2020 was $167.1 million (2019 – $38.1 million).

The Company’s subsidiary, Western Mesquite Mines Inc., is required to post security for reclamation and for closure with Imperial County, California as lead agency under the California Surface Mining and Reclamation Act, and for pit backfill with the California State Lands Commission under a public/private land lease agreement. The Company has met its security requirements in the form of bonds posted through surety underwriters totaling $0.3 million.