Note 4 - Environmental and Reclamation Activities

12 Months Ended

Dec. 31, 2022

Environmental and Reclamation Activities [Abstract]

Environmental and Reclamation Activities

Note 4: Environmental and Reclamation Activities

The liabilities accrued for our reclamation and closure costs at December 31, 2022 and 2021 were as follows (in thousands):

	2022			2021
Operating properties:
Greens Creek	$	37,212		$	37,474
Lucky Friday		13,343			13,543
Keno Hill		4,514			—
Casa Berardi		11,352			12,497
Nevada Operations		28,171			27,068
Non-operating properties:
San Sebastian		1,989			4,451
Troy mine		6,980			4,813
Johnny M		8,961			8,947
All other sites		4,477			4,438
Total		116,999			113,231
Reclamation and closure costs, current		(8,591	)		(9,259	)
Reclamation and closure costs, long-term	$	108,408		$	103,972

The activity in our accrued reclamation and closure cost liability for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):

Balance at January 1, 2020	$	108,374
Accretion expense		5,912
Revision of estimated cash flows due to changes in reclamation plans		2,543
Payment of reclamation obligations		(781	)
Balance at December 31, 2020		116,048
Accruals for estimated costs		4,952
Accretion expense		6,454
Revision of estimated cash flows due to changes in reclamation plans		(8,781	)
Payment of reclamation obligations		(5,442	)
Balance at December 31, 2021		113,231
Accruals for estimated costs		2,874
Accretion expense		5,995
Revision of estimated cash flows due to changes in reclamation plans		452
Payment of reclamation obligations		(5,553	)
Balance at December 31, 2022	$	116,999

Asset Retirement Obligations

Below is a reconciliation as of December 31, 2022 and 2021 (in thousands) of the asset retirement obligations (“ARO”) which are included in our total accrued reclamation and closure costs of $117.0 million and $113.2 million, respectively, discussed above. The estimated reclamation and closure costs were discounted using credit adjusted, risk-free interest rates ranging from 5.75% to 14.5% from the time we incurred the obligation to the time we expect to pay the retirement obligation.

	2022			2021
Balance January 1	$	95,033		$	100,208
Changes in obligations due to changes in reclamation plans		452			(8,781	)
Accretion expense		5,995			6,451
Payment of reclamation obligations		(4,860	)		(2,845	)
Balance at December 31	$	96,620		$	95,033

During 2022 following the acquisition of Alexco, we assumed an ARO of $4.4 million for Keno Hill. Payments for reclamation obligations were incurred at Lucky Friday and our former Mexico operation San Sebastian.

The AROs related to the changes described above were discounted using a credit adjusted, risk-free interest rate of between 2.75% and 7.5% and inflation rates ranging from 2% to 4%.