Note 11 - Asset Retirement Obligations

6 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE 11: ASSET RETIREMENT OBLIGATIONS

Asset retirement obligations (“ARO”s) relate to future remediation and decommissioning activities at our Palangana Mine, Hobson Processing Facility, Reno Creek Project and Alto Paraná Titanium Project, as well as our recently acquired Christensen Ranch Mine and Satellite Plant, and Irigaray Processing Facility, pursuant to the U1A Acquisition.

Balance, July 31, 2021	$	3,938,655
Accretion		185,140
Assumed from U1A Acquisition		12,707,248
Balance, January 31, 2022	$	16,831,043

The estimated amounts and timing of cash flows and assumptions used for ARO estimates are as follows:

	January 31, 2022			July 31, 2021
Undiscounted amount of estimated cash flows	$		28,738,663	$		8,221,018
Payable in years	1	to	23	9	to	21
Inflation rate	1.56%	to	5.32%	1.56%	to	2.17%
Discount rate	3.72%	to	6.35%	5.50%	to	5.96%

The undiscounted amounts of estimated cash flows for the next five fiscal years and beyond are as follows:

Fiscal 2022	$	148,021
Fiscal 2023		434,262
Fiscal 2024		932,264
Fiscal 2025		1,472,226
Fiscal 2026		2,489,425
Remaining balance		23,262,465
	$	28,738,663