Sunshine Metals Limited has increased its rehabilitation provision for the Mt Moss project to $6 million, as part of the project acquisition completed in 2026. The provision is based on a closure cost estimate methodology prepared by external mine closure consultants, incorporating a 10-year inflationary element of 2.3% per annum, discounted to present values using a bond rate of 4.62%.
Material actions and disclosures
The rehabilitation provision is material and required significant assessment by the company’s auditors. The auditors evaluated the cost model and the reasonableness of key assumptions, including inflation and discount rates, to ensure the provision’s accuracy.
Additionally, the company has undertaken extensive due diligence and planning to assess environmental obligations and has compiled a detailed preliminary analysis of the Mt Moss infrastructure, developing a costed work program to refurbish and construct the Gold Circuit, which totals $28.5 million.