Assets Held For Sale

12 Months Ended

Dec. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

The following table summarizes the Company’s Assets held for sale by asset class as of December 31, 2022 and December 31, 2021 (dollars in thousands):


	Year Ended December 31,
	2022		2021
Equipment not in use	$	7,148	$	11,163
Mine equipment	—		125
Materials and supplies	—		270
Total	$	7,148	$	11,558

In August 2022, the Company entered into an Equipment Purchase Agreement to sell one ball mill and one semi-autogenous (“SAG”) mill for consideration of $12.0 million. The Company amended the Equipment Purchase Agreement in December 2022 to include a sub-station transformer for an additional amount of $1.6 million for a total amended agreement amount of $13.6 million of which the Company has received payments totaling $1.1 million. Under the terms of the agreement, the final payment for the ball mill and SAG mill was due December 31, 2022 and the buyer was permitted to extend the payment of all or any portion of the final payment of $12.5 million up to and including June 30, 2023 provided that the buyer pays the Company interest at a rate of 5% per annum on any outstanding balance for the ball mill and SAG mill from January 1, 2023 through March 31, 2023 and 7.5% per annum on any outstanding balance from April 1, 2023 until June 30, 2023. In addition, the Company is reimbursed by the buyer for certain holding costs related to the ball and SAG mills. These costs are recorded as an offset to the expense included in the Consolidated Statement of Operations.

As of December 31, 2022, the remaining Assets held for sale that are not included in the Equipment Purchase Agreement discussed above are being marketed for sale. The Company has received interest from potential purchasers. It is the Company’s intention to complete the sales of these assets within the upcoming year.

A summary of the Company’s completed sales of equipment included in Assets held for sale during the year ended December 31, 2022:

•In February 2022, the Company completed the sale of a regrind mill that was included in Equipment not in use for gross proceeds of $1.3 million.

•In August 2022, the Company completed the sale of the Mine equipment for gross proceeds of $0.1 million.

•In December 2022, the Company completed the sale of the dual pinion ball mill and related assets included in Equipment not in use for gross proceeds of $6.3 million, reduced by a commissions expense calculated as 17.5% of total gross proceeds less certain other selling expenses.

As of December 31, 2022, the Company still held title to and risk of loss of the ball mills and SAG mill and, as such, all payments received toward the purchase of these assets have been included in Contract liabilities. See Note 8 – Contract Liabilities below for additional information.

As of December 31, 2022, the Company estimated the fair value of the Assets held for sale and determined that the fair value estimate exceeded the carrying value and as such no impairment loss was recorded. During the year ended December 31, 2021, the Company determined that the carrying value of its Assets held for sale exceeded the estimated fair value and, as a result, the Company recorded an impairment loss of $1.8 million related to the difference between the carrying value of its Assets held for sale and the estimated fair value.