XML 47 R18.htm IDEA: XBRL DOCUMENT v3.19.1
REHABILITATION PROVISIONS
12 Months Ended
Dec. 31, 2018
Disclosure of other provisions [abstract]  
REHABILITATION PROVISIONS
10. REHABILITATION PROVISIONS
At December 31, 2018, the total undiscounted amount of future cash needs for rehabilitation was estimated to be $73.5 million. A discount rate assumption of 2% and an inflation rate assumption of 2% were used to value the rehabilitation provisions. The changes in the carrying amount of the rehabilitation provisions are as follows:
 
For the Year Ended December 31, 2018
 
For the Year Ended December 31, 2017
Beginning balance
$
70,712

 
$
77,382

Accretion of rehabilitation provisions
691

 
1,245

Changes in estimates
138

 
(1,923
)
Cost of reclamation work performed
(5,316
)
 
(5,992
)
Balance at the end of the period
$
66,225

 
$
70,712

 
 
 
 
Current portion
$
7,665

 
$
6,566

Long term portion
58,560

 
64,146

Total
$
66,225

 
$
70,712


During the year ended December 31, 2018, the Company recorded an increase in estimate for Wassa of $1.0 million due to a revision in the timing of payments. At December 31, 2018, the rehabilitation provision for Wassa was $17.2 million (2017- $17.4 million). The Company expects the payments for reclamation to be incurred between 2019 and 2027.
During the year ended December 31, 2018, the Company recorded a decrease in estimate for Prestea of $0.8 million. The decrease is due to a $3.1 million reduction in expected reclamation costs relating to the refractory liability and a $2.3 million increase in the expected reclamation costs relating to the non-refractory operation. The reduction of $3.1 million was primarily a result of a reduction in water treatment liability from ongoing treatment and a negative water balance. The reduction was recorded as other income since the carrying value of the underlying refractory assets were $nil after suspension of its operation in 2015. At December 31, 2018, the rehabilitation provision for Prestea was $49.0 million (2017 - $53.3 million). The Company expects the payments for reclamation to be incurred between 2019 and 2028.