ASSET RETIREMENT OBLIGATIONS

6 Months Ended

Jun. 30, 2024

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

NOTE 11 ASSET RETIREMENT OBLIGATIONS

The Company is responsible for the reclamation of certain past and future disturbances at its properties. As at June 30, 2024, the asset retirement obligation balances at the properties subject to these obligations were $21.7 million at the Gold Bar and Tonkin properties in Nevada, $15.5 million at the Fox Complex and $7.2 million at the El Gallo mine in Mexico (December 31, 2023 – $20.6 million, $8.0 million and $14.4 million, respectively).

A reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2024, and for the year ended December 31, 2023, is as follows:

	Six months ended		Year ended
	June 30, 2024		December 31, 2023
Reclamation and remediation liabilities, beginning balance	$	43,021	$	41,846
Settlements		(304)		(1,358)
Accretion of liability		1,375		2,536
Revisions to estimates and discount rate		800		(300)
Foreign exchange revaluation		(455)		297
Reclamation and remediation liabilities, ending balance	$	44,437	$	43,021
Less: current portion		2,280		3,105
Long-term portion	$	42,157	$	39,916

Reclamation expense in the Statement of Operations includes adjustments for updates in the reclamation liability for properties that do not have mineral reserves that conform to guidance under S-K 1300. Reclamation accretion for all properties is as follows:

	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Reclamation adjustment reflecting updated estimates	$	(688)	$	—	$	(705)	$	20
Reclamation accretion		685		620		1,392		1,230
Total	$	(3)	$	620	$	687	$	1,250