LEASE LIABILITIES

12 Months Ended

Dec. 31, 2021

LEASE LIABILITIES

LEASE LIABILITIES

NOTE 10 LEASE LIABILITIES

The Company’s lease obligations include equipment, vehicles and office space. Leased assets are included in plant and equipment (Note 8). The terms and conditions contained in the Company’s leases do not contain variable components.

Lease liabilities as at December 31, 2021 and 2020 are as follows:

	Total discounted lease liabilities
	December 31, 2021		December 31, 2020
Finance leases	$	3,833	$	4,735
Operating lease		583		761
Lease liabilities	$	4,416	$	5,496
Current portion		(2,901)		(2,440)
Long-term portion	$	1,515	$	3,056

Lease liabilities as at December 31, 2021 are recorded using a weighted average discount rate of 6.67% and 8.73%, respectively, for finance and operating leases and have average remaining lease terms of 1 year and three years, respectively.

During the year ended December 31, 2021, the Company recorded $2.0 million (December 31, 2020 – $1.3 million) in interest and other finance costs related to leases. A breakdown of the lease related costs for the year ended December 31, 2021 and 2020 are as follows:

	December 31, 2021		December 31, 2020
Finance leases:
Amortization of ROU assets	$	1,659	$	878
Interest expense		329		392
Total	$	1,988	$	1,270
Operating lease:
Rent expense	$	135	$	194

Future minimum undiscounted lease payments as at December 31, 2021 are as follows:

	Payments due by period
	2022		2023		2024		2025		2026		Total
Operating lease obligation	$	246	$	250	$	167	$	—	$	—	$	663
Finance lease obligations		2,704		808		274		—		—		3,785
Total future minimum lease payments	$	2,949	$	1,058	$	441	$	—	$	—	$	4,448
Less: Imputed interest												(32)
Total												4,416