LEASE LIABILITIES

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 are as follows:

	Total discounted lease liabilities
	December 31, 2023		December 31, 2022
Finance leases	$	1,117	$	1,320
Operating lease		349		1,086
Lease liabilities	$	1,466	$	2,406
Current portion		(978)		(1,215)
Long-term portion	$	488	$	1,191

Lease liabilities as at December 31, 2023 are recorded using weighted average discount rates of 5.05% and 7.36% for finance and operating leases, respectively, and have average remaining lease terms of two years. By comparison, as at December 31, 2022, lease liabilities were recorded at average rates of 3.63% and 8.00% for finance and operating leases, respectively, and had average remaining lease terms of two years and three years, respectively.

During the year ended December 31, 2023, the Company recorded $2.7 million (December 31, 2022 – $3.0 million) in interest and other finance costs related to leases. A breakdown of the lease-related costs for the years ended December 31, 2023 and 2022 is as follows:

	December 31, 2023		December 31, 2022
Finance leases:
Amortization of ROU assets	$	2,606	$	2,865
Interest expense		132		140
Total	$	2,738	$	3,005
Operating lease:
Rent expense	$	72	$	152

Minimum undiscounted lease payments as at December 31, 2023 are as follows:

	Payments due by period
	2024		2025		2026		2027		Total
Operating lease obligation	$	287	$	95	$	—	$	—	$	382
Finance lease obligations		786		235		207		—		1,228
Total minimum lease payments	$	1,073	$	330	$	207	$	—	$	1,610
Less: Imputed interest										(144)
Total									$	1,466