Sunshine Metals Limited has increased its rehabilitation provision by $6 million following the acquisition of the Mt Moss project, bringing the total provision to $7.555 million as of 30 June 2026. The company assumed the rehabilitation liability for the Mt Moss site, which management valued at $6 million, as part of the acquisition.
Material actions and disclosures
The rehabilitation provision is based on a closure cost estimate methodology prepared by external mine closure consultants. The estimated costs include a 10-year inflationary element of 2.3% per annum, discounted to present values using a bond rate of 4.62%, resulting in a provision of $6 million for the Mt Moss site.
The provision for rehabilitation is material and required significant preparation, including assessing the competence and objectivity of the expert used by management, evaluating management’s cost model and estimation of future costs, and critically assessing the reasonableness of key assumptions and their impact.