What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2020-10-28 compared with 2020-07-29 · 181 added, 156 removed, 411 unchanged (45% of the section changed)

7 unchanged sentences

We are primarily a gold and silver producer with five mines located in the United States, Mexico and Canada and several exploration projects in North America.

Second Quarter Highlights

Third Quarter Highlights

For the quarter, Coeur reported revenue of $229.7 million and cash flow from operating activities of $79.5 million.

The Company reported GAAP net loss from continuing operations of $1.2 million, or $0.01 per share.

The Company reported GAAP net income from continuing operations of $26.9 million, or $0.11 per share.

On an adjusted basis 1 , the Company reported EBITDA of $90.8 million and net income from continuing operations of $38.2 million, or $0.16 per share.

For six months ended June 30, 2020, Coeur reported revenue of $327.4 million and cash flow from operating activities of $2.0 million.

The Company reported GAAP net loss from continuing operations of $13.1 million, or $0.05 per share.

For nine months ended September 30, 2020, Coeur reported revenue of $557.1 million and cash flow from operating activities of $81.4 million.

The Company reported GAAP net income from continuing operations of $13.7 million, or $0.06 per share.

On an adjusted basis 1 , the Company reported EBITDA of $179.4 million and net income from continuing operations of $39.9 million, or $0.17 per share.

• Successful restart of Palmarejo post-suspension - Coeur safely restarted its Palmarejo mine, following receipt of updated guidance from the Mexican government that precious metals mining is now considered an essential business activity.

After being temporarily suspended for approximately 45 days, production began ramping up in June and is expected to continue increasing during the second half of the year

• Prepared to begin construction on upcoming expansion at Rochester - The Company received authorizations necessary to advance the expansion under Plan of Operations Amendment 11 (“POA 11”) at Rochester.

Coeur expects to commence construction on the project in early August 2020

• Strong operating and financial results at Kensington and Wharf - Kensington’s gold production remained strong during the second quarter, helping to generate $27.8 million in operating cash flow and $23.9 million of free cash flow 1 , compared to $11.9 million and $7.1 million, respectively, in the prior period.

Gold production at Wharf increased 60% quarter-over-quarter, leading to $19.1 million and $18.8 million in operating and free cash flow 1 , respectively, compared to $2.6 million and $2.2 million in the first quarter of 2020

• Aggressive investment in exploration - Coeur continued to execute its largest exploration program in Company history, investing $13.0 million, a 60% increase over the prior period and approximately 90% higher than the second quarter of 2019.

The Company plans to publish an exploration update in August 2020, outlining program highlights through the first half of the year

• Continued execution of hedging program to underpin expected cash flow - The Company took advantage of stronger gold prices to implement additional zero-cost collar (“ZCC”) hedges to support the expected funding requirement for the POA 11 expansion at Rochester, targeting up to 50% of the Company’s expected gold production in 2021 and 2022

• Higher cash position and successful debt reduction initiatives - Cash and cash equivalents totaled $70.9 million at June 30, 2020, 34% higher than at the end of the first quarter of 2020.

The Company also repaid $90.0 million of its senior secured revolving credit facility (“RCF”) using cash on hand, leaving a $60.0 million balance at the end of the second quarter.

Coeur intends to repay the remaining RCF balance by year-end from internally generated cash flow and expects cash to build over the coming quarters in preparation for the expansion at Rochester

• Highest quarterly financial results in nearly a decade - Revenue increased 49% and adjusted EBITDA 1 more than doubled quarter-over-quarter.

Operating cash flow was eight-times higher and now totals $81.4 million through the first nine months of the year.

Free cash flow 1 increased significantly to $56.5 million, leading to year-to-date positive free cash flow1 of $19.5 million

• Strong quarter-over-quarter production growth - Gold production increased 23% to 95,995 ounces driven by improved operational performance at Palmarejo, Rochester and Wharf, while silver production of 2.6 million ounces was 58% higher largely due to positive results at Palmarejo

• Well-executed restart at Palmarejo following temporary suspension - Palmarejo generated strong operational and financial results after being temporarily suspended for approximately 45 days in the prior period due to a COVID-19 related government decree.

Gold production nearly doubled while silver production was more than two-times higher quarter-over-quarter, helping to generate $49.7 million and $44.7 million in operating and free cash flow 1 , respectively

• Successfully commenced construction on schedule for Rochester expansion - The Company broke ground in early August on the Plan of Operations Amendment 11 (“POA 11”) expansion project at its Rochester mine.

Coeur plans to file an updated technical report in December, which will provide a detailed economic and technical overview of the expansion project

• Record quarterly results at Wharf - Wharf produced 33,440 ounces of gold, which generated $39.1 million in operating cash flow and $38.6 million free cash flow 1 during the third quarter - all new quarterly records since Coeur’s acquisition of Wharf in early 2015 for approximately $99.5 million.

Cumulative operating and free cash flow 1 since acquisition now totals $256.0 million and $232.4 million, respectively

• Continued execution of the Company’s largest exploration program in its history - Building on the success from the first half of the year, approximately 20 drill rigs continue to operate across the Company, including at the new C-Horst discovery located in the northernmost portion of the Crown Block in southern Nevada.

Results indicate potential for strong resource growth at Palmarejo, Rochester, Kensington, Silvertip and C-Horst, while infill drilling has demonstrated near-term upside potential for reserve growth at Palmarejo and Rochester

• Bolstered balance sheet and financial flexibility - The Company reduced total debt 2 by $47.5 million, or 14%, quarter-over-quarter while cash and cash equivalents increased 9% to $77.1 million as of September 30, 2020

Selected Financial and Operating Results

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

In thousands 2020 2019 2020 2019

35 unchanged sentences

Consolidated Financial Results

Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019

Revenue decreased by $7.9 million as a result of lower gold and silver ounces sold (10% and 47%, respectively) due to the temporary suspension of active mining operations at Palmarejo due to a government decree in response to COVID-19, the temporary suspension of operations at Silvertip in February, and recovery delays at Rochester, partially offset by a 29% and 10% increase in average realized gold and silver prices, respectively, combined with a 53% increase in gold ounces sold at Wharf.

Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

Revenue increased by $30.3 million or 15%, as a result of a 24% and 41% increase in average realized gold and silver prices, respectively, combined with a 36% increase in gold ounces sold at Wharf, partially offset by lower gold and silver ounces sold (5% and 14%, respectively) due to lower gold grades at Kensington, recovery delays at Rochester and the temporary suspension of operations at Silvertip in February.

The Company sold 95,283 gold ounces and 2.6 million silver ounces compared to 100,407 gold ounces, 3.0 million silver ounces, 4.1 million zinc pounds and 4.3 million lead pounds in the prior year.

1 unchanged sentence

The following table summarizes consolidated metal sales:

Three months ended June 30, Increase (Decrease) Percentage Change

Three months ended September 30, Increase (Decrease) Percentage Change

In thousands 2020 2019

5 unchanged sentences

Costs Applicable to Sales

Costs applicable to sales decreased primarily due to the temporary suspensions at Palmarejo and Silvertip and lower costs at Rochester.

For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization decreased $15.3 million, or 35%, resulting from lower sales volumes primarily due to the temporary suspension at Palmarejo and Silvertip.

General and administrative expenses increased $0.9 million, or 11%, primarily due to higher compensation costs, partially offset by lower travel costs.

Exploration expense increased $6.1 million, or 107%, as a result of exploration expense at the Sterling/Crown project located in southern Nevada and higher exploration expense at Palmarejo, Silvertip and Kensington.

The Company completed 160,680 feet (48,976 meters) of expansion drilling and 33,363 feet (10,169 meters) of infill drilling in the second quarter of 2020 compared to 108,384 feet (33,035 meters) of expansion drilling and 42,769 feet (13,036 meters) of infill drilling in the second quarter of 2019.

Pre-development, reclamation, and other expenses increased $14.3 million, or 331%, stemming from ongoing carrying and one-time costs at Silvertip including a $2.1 million write down of obsolete supply inventory, and incremental costs incurred to comply with the Company’s COVID-19 health and safety protocols.

Costs applicable to sales decreased primarily due to the temporary suspension at Silvertip and lower sales at Rochester For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization decreased $13.5 million, or 29%, resulting from lower sales volumes and the temporary suspension at Silvertip.

General and administrative expenses decreased $1.9 million, or 19%, primarily due to lower compensation costs, legal fees and travel costs.

Exploration expense increased $6.9 million, or 118%, as a result of exploration expense at the Sterling/Crown project located in southern Nevada and higher exploration expense at Silvertip, Kensington and Palmarejo.

The Company completed 217,768 feet (66,376 meters) of expansion drilling and 39,114 feet (11,922 meters) of infill drilling in the third quarter of 2020 compared to 86,018 feet (26,218 meters) of resource expansion drilling and 24,343 feet (7,420 meters) of resource infill drilling in the third quarter of 2019.

Pre-development, reclamation, and other expenses increased $10.2 million, or 210%, stemming from ongoing carrying and temporary suspension costs at Silvertip and incremental costs incurred to comply with the Company’s COVID-19 health and safety protocols.

The following table summarizes pre-development, reclamation, and other expenses:

Three months ended June 30, Increase (Decrease) Percentage Change

Three months ended September 30, Increase (Decrease) Percentage Change

In thousands 2020 2019

1 unchanged sentence

Silvertip ongoing carrying costs 3,913 — 3,913 100 %

Silvertip one-time temporary suspension costs 3,829 — 3,829 100 %

Silvertip temporary suspension costs 2,768 — 2,768 100 %

Asset retirement accretion 2,968 3,080 (112) (4) %

2 unchanged sentences

Other Income and Expenses

Fair value adjustments, net, increased to a gain of $10.1 million compared to a loss of $5.3 million as a result of favorable fair value adjustments and realized gains primarily related to the Company’s equity investments in Integra and Metalla, which had estimated fair values of $8.0 million and $4.8 million, respectively, at June 30, 2020.

Interest expense (net of capitalized interest of $0.3 million) decreased to $5.8 million from $6.8 million due to lower average debt levels related to the RCF and 2024 Senior Notes.

Fair value adjustments, net, decreased to a gain of $2.2 million compared to $4.4 million as a result of lower favorable fair value adjustments and realized gains primarily related to the Company’s equity investments in Integra and Metalla, which had estimated fair values of $10.1 million and $7.1 million, respectively, at September 30, 2020.

Interest expense (net of capitalized interest of $0.4 million) decreased to $5.1 million from $6.0 million due to a lower interest rate paid on the debt under the RCF and lower average debt levels related to the RCF and 2024 Senior Notes.

Other, net decreased to a loss of $6.3 million compared to a loss of $3.6 million due to an increase in losses on the sale of assets and a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars, partially offset by a reduction in foreign exchange losses

Income and Mining Taxes

During the second quarter of 2020, income and mining tax expense of approximately $2.8 million results in an effective tax rate of 173.9% for 2020.

This compares to income tax benefit of $5.5 million or effective tax rate of 13.1% for 2019.

The Company’s effective tax rate is impacted by multiple factors as illustrated above.

During the third quarter of 2020, income and mining tax expense of approximately $13.1 million resulted in an effective tax rate of 32.8% for 2020.

This compares to income tax expense of $0.2 million or effective tax rate of 1.6% for 2019.

The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

(i) the non-recognition of tax assets;

(ii) foreign exchange rates;

(iii) the impact of uncertain tax positions;

(iv) variations in our income before income taxes;

(v) geographic distribution of that income and (vi) mining taxes.

(i) mining taxes;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) foreign exchange rates;

(v) the impact of uncertain tax positions;

and (vi) the non-recognition of tax assets.

Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:

Three months ended June 30,

Three months ended September 30,

In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit

10 unchanged sentences

Net Income (Loss) from Continuing Operations

Net loss from continuing operations was $1.2 million, or $0.01 per share, compared to net loss of $36.8 million, or $0.18 per share.

The decrease in net loss from continuing operations was driven higher by strong operating results at Wharf, a 29% and 10% increase in average realized gold and silver prices, respectively, favorable fair value adjustments and realized gains primarily related to the Company’s equity investments in Integra and Metalla and lower operating costs at Palmarejo and Silvertip.

This was partially offset by lower sales of gold and silver (10% and 47%, respectively), higher exploration expense, ongoing carrying and one-time severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols.

Net income from continuing operations was $26.9 million, or $0.11 per share, compared to net loss of $14.3 million, or $0.06 per share.

The increase in net income from continuing operations was driven by strong operating results at Wharf and Palmarejo, a 24% and 41% increase in average realized gold and silver prices, respectively, and lower operating costs at Rochester and Silvertip.

This was partially offset by lower sales of gold and silver (5% and 14%, respectively), higher exploration expense, ongoing carrying and severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols.

Adjusted net income was $38.2 million, or $0.16 per share, compared to adjusted net loss of $5.3 million, or $0.02 per share (see “Non-GAAP Financial Performance Measures”).

Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019

Revenue increased by $10.4 million as a result of a 24% and 10% increase in average realized gold and silver prices, respectively, and 18% stronger operating results at Wharf, partially offset by the temporary suspension of active mining operations at Palmarejo during a portion of the second quarter, the temporary suspension of operations at Silvertip in February and lower sales of gold and silver (5% and 24%, respectively).

Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

Revenue increased by $40.7 million or 8%, as a result of a 24% and 23% increase in average realized gold and silver prices, respectively, and 26% increase in gold ounces sold at Wharf, partially offset by lower sales of gold and silver (5% and 20%, respectively) due to the temporary suspension of active mining operations at Palmarejo during a portion of the second quarter, the temporary suspension of operations at Silvertip in February, lower gold grades at Kensington, and recovery delays at Rochester.

The Company sold 258,851 gold ounces, 6.9 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds compared to 272,118 gold ounces, 8.7 million silver ounces, 14.1 million zinc pounds and 12.3 million lead pounds in the prior year.

1 unchanged sentence

The following table summarizes consolidated metal sales:

Six months ended June 30, Increase (Decrease) Percentage Change

Nine months ended September 30, Increase (Decrease) Percentage Change

In thousands 2020 2019

5 unchanged sentences

Costs Applicable to Sales

Costs applicable to sales decreased primarily due to the temporary suspensions at Palmarejo and Silvertip and lower costs at Rochester.

Costs applicable to sales decreased primarily due to the temporary suspensions at Palmarejo and Silvertip and lower sales at Rochester.

For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization decreased $21.0 million, or 25%, resulting from to the temporary suspensions at Palmarejo and Silvertip.

General and administrative expenses increased slightly by $0.3 million, or 2%, primarily due to higher compensation costs, partially offset by lower travel costs.

Exploration expense increased $8.8 million, or 93%, as a result of exploration expense at the Sterling/Crown project located in southern Nevada and higher exploration expense at Palmarejo and Kensington.

The Company completed 280,151 feet (85,391 meters) of expansion drilling and 83,572 feet (25,473 meters) of infill drilling in the first half of 2020 compared to 153,248 feet (46,710 meters) of expansion drilling and 105,171 feet (32,056 meters) of infill drilling in the first half of 2019.

Pre-development, reclamation, and other expenses increased $16.5 million, or 188%, stemming from ongoing carrying and one-time costs at Silvertip including a $2.1 million write down of obsolete supply inventory and incremental costs associated with the Company’s COVID-19 health and safety protocols, partially offset by a gain resulting form the modification of a right of use lease.

Amortization decreased $34.5 million, or 26%, resulting from lower sales volume and the temporary suspensions at Palmarejo and Silvertip.

General and administrative expenses decreased by $1.6 million, or 6%, primarily due to lower travel costs and legal fees, partially offset by higher compensation costs.

Exploration expense increased $15.7 million, or 103%, as a result of exploration expense at the Sterling/Crown project located in southern Nevada and higher exploration expense at Silvertip, Kensington and Palmarejo.

The Company completed 477,454 feet (145,528 meters) of expansion drilling and 122,686 feet (37,395 meters) of infill drilling in the nine months of 2020 compared to 239,266 (72,928 meters) of resource expansion drilling and 129,514 feet (39,476 meters) of resource infill drilling in the first nine months of 2019.

Pre-development, reclamation, and other expenses increased $26.6 million, or 196%, stemming from ongoing carrying and temporary suspension costs at Silvertip including a $3.3 million write down of obsolete supply inventory and incremental costs associated with the Company’s COVID-19 health and safety protocols, partially offset by a gain resulting from the modification of a right of use lease.

The following table summarizes pre-development, reclamation, and other expenses:

Six months ended June 30, Increase (Decrease) Percentage Change

Nine months ended September 30, Increase (Decrease) Percentage Change

In thousands 2020 2019

1 unchanged sentence

Silvertip ongoing carrying costs 11,704 — 11,704 — %

Silvertip one-time temporary suspension costs 7,338 — 7,338 — %

Silvertip temporary suspension costs 10,107 — 10,107 — %

Gain on modification of right of use lease (4,051) — (4,051) — %

3 unchanged sentences

Other Income and Expenses

Fair value adjustments, net, decreased to a gain of $1.2 million compared to $3.8 million as a result of unfavorable fair value adjustments and realized gains primarily related to the Company’s equity investments in Integra and Metalla, which had estimated fair values of $8.0 million and $4.8 million, respectively, at June 30, 2020.

Interest expense (net of capitalized interest of $0.5 million) decreased to $10.9 million from $13.3 million due to lower average debt levels related to the RCF and 2024 Senior Notes.

Fair value adjustments, net, decreased to a gain of $3.5 million compared to $8.2 million as a result of lower favorable fair value adjustments and realized gains primarily related to the Company’s equity investments in Integra and Metalla, which had estimated fair values of $10.1 million and $7.1 million, respectively, at September 30, 2020.

Interest expense (net of capitalized interest of $0.9 million) decreased to $16.0 million from $19.3 million due to due to a lower interest rate paid on the debt under the RCF and average debt levels related to the RCF and 2024 Senior Notes.

Other, net decreased to a loss of $4.3 million compared to a loss of $2.9 million due to an increase in losses on sale of assets, a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars, partially offset by a reduction in foreign exchange losses.

Income and Mining Taxes

During the first half of 2020, income and mining tax benefit of approximately $1.1 million results in an effective tax rate of 7.7% for 2020.

During the first nine months of 2020, income and mining tax expense of approximately $12.0 million resulted in an effective tax rate of 46.7% for 2020.

This compares to income tax benefit of $14.0 million or effective tax rate of 15.6% for 2019.

The Company’s effective tax rate is impacted by multiple factors as illustrated above.

The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

(i) the non-recognition of tax assets;

(ii) foreign exchange rates;

(iii) the impact of uncertain tax positions;

(iv) variations in our income before income taxes;

(v) geographic distribution of that income and (vi) mining taxes.

(i) mining taxes;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) foreign exchange rates;

(v) the impact of uncertain tax positions;

and (vi) the non-recognition of tax assets.

Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:

Six months ended June 30,

Nine months ended September 30,

In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit

10 unchanged sentences

Net Income (Loss) from Continuing Operations

Net loss from continuing operations was $13.1 million, or $0.05 per share, compared to net loss of $61.7 million, or $0.30 per share.

The decrease in net loss from continuing operations was driven by strong operating results at Wharf, a 24% and 10% increase in average realized gold and silver prices, respectively, and lower operating costs at Palmarejo and Silvertip.

This was partially offset by lower sales from Palmarejo and Rochester, higher explorations costs, ongoing carrying and one-time severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols.

Net income from continuing operations was $13.7 million, or $0.06 per share, compared to net loss of $75.9 million, or $0.36 per share.

The increase in net income from continuing operations was driven by strong operating results at Wharf, a 24% and 23% increase in average realized gold and silver prices, respectively, and lower operating costs at Palmarejo and Silvertip.

This was partially offset by lower sales from Palmarejo, Kensington and Rochester, higher explorations costs, ongoing carrying and severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols.

Adjusted net income was $39.9 million, or $0.17 per share, compared to adjusted net loss of $51.3 million, or $0.24 per share (see “Non-GAAP Financial Performance Measures”).

4 unchanged sentences

2020 Production Guidance

Previous Updated

Gold Silver Gold Silver

(oz) (K oz) (oz) (K oz)

Palmarejo 95,000 - 105,000 6,000 - 7,000 100,000 - 110,000 6,000 - 7,000

4 unchanged sentences

2020 Costs Applicable to Sales Guidance

($/oz) ($/oz)

Previous Updated

Gold Silver Gold Silver

($/oz) ($/oz) ($/oz) ($/oz)

Palmarejo (co-product) $785 - $885 $9.50 - $10.50 $650 - $750 $9.50 - $10.50

3 unchanged sentences

2020 Capital, Exploration and G&A Guidance

Previous Updated

Capital Expenditures, Sustaining $70 - $85 $55 - $60

3 unchanged sentences

General & Administrative Expenses $32 - $36 $32 - $36

The Company’s guidance figures assume $1,650/oz gold and $16.50/oz silver as well as CAD of 1.36 and MXN of 21.00.

The Company’s previous guidance reflects realized prices through the first half of 2020 and estimated prices of $1,650/oz gold and $16.50/oz silver as well as CAD of 1.36 and MXN of 21.00 for the second half of the year.

The Company’s updated guidance reflects realized prices through September 30, 2020 and estimated prices of $1,850/oz gold and $24.00/oz silver as well as CAD of 1.30 and MXN of 21.00 for the fourth quarter.

Results of Continuing Operations

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

13 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019

Gold and silver production decreased 46% and 50%, respectively, due to the temporary suspension of active mining and processing activities in accordance with a government decree.

After receiving guidance from the Mexican government in May that the suspension decree did not apply to precious metals mining, production began ramping back up in June, increasing steadily during the month.

Workforce staffing levels are currently limited to approximately 85% due to compliance with restrictions related to COVID-19.

Coeur expects workforce staffing to stay at similar levels for the remainder of 2020.

Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

Gold production decreased 8% as a result of lower grade, partially offset by higher mill throughput and recovery, while silver production increased 4% due to higher mill throughput and recovery, partially offset by lower grade.

Metal sales were $81.8 million, or 36% of Coeur’s metal sales, compared with $71.3 million, or 36% of Coeur’s metal sales.

Favorable foreign exchange rates and lower consumable costs led to a 7% and 11% decrease in costs applicable to sales per gold and silver ounce, respectively.

Amortization decreased to $7.3 million due to lower ounces sold.

Capital expenditures decreased to $4.5 million from $7.6 million due to the impact of the temporary suspension on underground development and infill drilling activities.

Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019

Gold and silver production decreased 9% and 10%, respectively, due to the temporary suspension of active mining and processing activities in accordance with a government decree issued in the second quarter.

Costs applicable to sales per gold ounce decreased 9% and per silver ounce increased 12% due to higher revenue contribution from silver sales compared to gold as well as favorable foreign exchange rates and lower consumable costs.

Amortization decreased to $11.9 million due to lower gold ounces sold.

Capital expenditures decreased to $5.0 million from $7.8 million due to lower underground development and infill drilling activities.

Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

Gold and silver production decreased 9% and 5%, respectively, due to lower gold and silver grades and the temporary suspension of active mining and processing activities in accordance with a COVID-related government decree issued in the second quarter.

Workforce staffing levels are currently limited to approximately 85% due to compliance with restrictions related to COVID-19.

Workforce staffing levels gradually increased to near full capacity during September, up from approximately 85% earlier in the third quarter due to compliance with restrictions related to COVID-19.

Coeur expects workforce staffing to stay at similar levels for the remainder of 2020.

2 unchanged sentences

Amortization decreased to $32.4 million due to lower ounces sold.

Capital expenditures decreased to $11.6 million from $16.2 million due to the impact of the temporary suspension on underground development and infill drilling activities and lower mining equipment purchases.

Three Months Ended June 30, Six Months Ended June 30,

Capital expenditures decreased to $16.6 million from $24.1 million due to the impact of the temporary suspension on underground development and infill drilling activities and fewer mining equipment purchases.

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

11 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019

Gold and silver production decreased 40% and 25%, respectively, due to the impact of dilution from stacking high-pressure grinding roll (“HPGR”) crushed material on top of historic ore on the Stage IV leach pad.

Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

Gold and silver production decreased 18% and 25%, respectively, due to the impact of dilution from stacking high-pressure grinding roll (“HPGR”) crushed material on top of historic ore on the Stage IV leach pad and upset conditions in the Merrill-Crowe process plant due to higher-than-expected fine particulates in pregnant solution (“turbidity”) from ore placed on newly constructed inter-lift liners.

Metal sales were $32.1 million, or 14% of Coeur’s metal sales, compared with $27.5 million, or 14% of Coeur’s metal sales.

Costs applicable to sales per gold ounce increased 22% and per silver ounce decreased 1%, driven by higher repair and outside service costs, partially offset by higher silver grades and lower diesel costs.

Costs applicable to sales per gold and silver ounce decreased 25% and 15%, respectively, driven by lower diesel costs and a one-time charge associated with the operation’s power costs in 2019.

Amortization decreased to $3.3 million due to lower ounces sold.

Capital expenditures increased to $5.8 million from $2.8 million due to higher POA 11 capital expenditures.

Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019

Gold and silver production decreased 34% and 27%, respectively, due to the impact of dilution from stacking HPGR-crushed material on top of historic ore on the Stage IV leach pad, offsetting restocking of metal inventories.

Capital expenditures decreased to $9.8 million from $10.2 million due to the timing of payments related to the commencement of construction activities related to POA 11.

Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

Gold and silver production decreased 29% and 26%, respectively, due to the impact of dilution from stacking HPGR-crushed material on top of historic ore on the Stage IV leach pad and upset conditions in the Merrill-Crowe process plant due to high turbidity of solution.

Metal sales were $72.2 million, or 13% of Coeur’s metal sales, compared with $79.3 million, or 15% of Coeur’s metal sales.

Costs applicable to sales per gold and silver ounce increased 22% and 6%, respectively, driven by higher repair and outside service costs, partially offset by higher silver grades and lower diesel costs.

Costs applicable to sales per gold ounce increased 2% and silver ounce decreased 1%, respectively, driven by higher revenue contribution from gold sales compared to silver, higher outside service costs, partially offset by higher silver grades and lower diesel costs.

Amortization decreased to $9.2 million due to lower ounces sold.

expenditures increased to $10.9 million from $7.4 million due to higher POA 11 capital expenditures.

Capital expenditures increased to $20.6 million from $17.7 million due to the commencement of construction activities related to POA 11.

Mining remains an essential business in Nevada.

The Company implemented and continues to maintain strong health and safety protocols, aimed at limiting the exposure to, and transmission of, COVID-19.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

7 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019

Gold production decreased 3% due to lower grades coupled with lower recoveries, partially offset by higher mill throughput.

Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

Gold production decreased 22% resulting from processing of additional lower grade development ore and surface stockpile material as a result of mine sequencing and COVID-19 contact tracing temporarily impacting mine production, respectively.

Metal sales were $52.4 million, or 23% of Coeur’s metal sales, compared to $52.6 million, or 26% of Coeur’s metal sales.

Costs applicable to sales per gold ounce increased 11% due to higher employee-related costs, partially offset by lower diesel costs.

Amortization increased slightly to $12.9 million due to higher mining rates from Kensington and Jualin.

Capital expenditures decreased to $3.9 million from $4.9 million due to lower underground development at Kensington, and Jualin and lower infill drilling.

Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019

Gold production increased 2% due to higher mill throughput and higher recoveries.

Costs applicable to sales per gold ounce increased 36% due to lower production and higher maintenance costs, partially offset by lower diesel costs.

Amortization decreased to $11.5 million due to lower ounces sold.

Capital expenditures increased to $5.3 million from $4.9 million due to higher mining infrastructure capital expenditures.

Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

Gold production decreased 6% due to processing of additional lower grade development ore and surface stockpile material as a result of mine sequencing and COVID-19 contact tracing temporarily impacting mine production, respectively.

Metal sales were $159.2 million, or 29% of Coeur’s metal sales, compared to $138.1 million, or 27% of Coeur’s metal sales.

Costs applicable to sales per gold ounce increase slightly due to higher employee-related costs, partially offset by lower diesel costs.

Amortization remained comparable at $24.8 million.

Costs applicable to sales per gold ounce increased 11% due to lower production and higher maintenance costs, partially offset by lower diesel costs.

Amortization decreased to $36.3 million due to lower ounces sold.

Capital expenditures decreased to $14.1 million from $19.2 million due to lower underground development at Kensington and Jualin, and lower infill drilling and mining equipment expenditures.

2 unchanged sentences

All employees are required to quarantine for 7 days and undergo a testing protocol prior to starting their 21-day rotation.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

8 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2020 compared to Three Months Ended June 30, 2019

Gold production increased 58% driven by substantially higher crushing rates, higher grades, and timing of recoveries.

Three Months Ended September 30, 2020 compared to Three Months Ended September 30, 2019

Gold production increased 29% driven by timing of recoveries.

Metal sales were $63.5 million, or 28% of Coeur’s metal sales, compared to $36.7 million, or 18% of Coeur’s metal sales.

Costs applicable to sales per gold ounce decreased 5% due to higher production and lower diesel costs, partially offset by a $3.3 million inventory write-down related to lower expected recoveries from leach pads 4 and 5.

Costs applicable to sales per gold ounce decreased 9% due to higher production and lower diesel costs.

Amortization increased to $4.0 million due to higher ounces sold.

Capital expenditures were $0.5 million.

Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019

Nine Months Ended September 30, 2020 compared to Nine Months Ended September 30, 2019

Gold production increased 26% due to substantially higher crushing rates in the second quarter, higher grades, and timing of recoveries.

Metal sales were $129.8 million, or 23% of Coeur’s metal sales, compared to $81.0 million, or 16% of Coeur’s metal sales.

Costs applicable to sales per gold ounce increased 3% due to higher equipment rental and outside service costs and a $3.3 million inventory write-down related to lower expected recoveries from leach pads 4 and 5, partially offset by lower diesel costs.

Costs applicable to sales per gold ounce decreased 2% due to higher production and lower diesel costs partially offset by higher equipment rental and outside service costs and a $3.3 million inventory write-down related to lower expected recoveries from leach pads 4 and 5.

Amortization increased to $9.6 million due to higher ounces sold.

2 unchanged sentences

The Company implemented and continues to maintain strong health and safety protocols, aimed at limiting the exposure to, and transmission of, COVID-19 at Wharf.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2020 2019 2020 2019

16 unchanged sentences

Operational results in the table above reflect performance prior to the temporary suspension of mining and processing activities.

Ongoing carrying and one-time costs are included in Pre-development, reclamation, and other.

Ongoing carrying and temporary suspension costs are included in Pre-development, reclamation, and other.

Rotational schedules have been transitioned back to 14 days (previously 21 days) as a result of easing concerns related to COVID-19 in British Columbia.

Liquidity and Capital Resources

At June 30, 2020, the Company had $72.3 million of cash, cash equivalents and restricted cash and $169.5 million available under its RCF.

Cash and cash equivalents increased $15.3 million in the six months ended June 30, 2020, due to a 24% and 10% increase in average realized gold and silver prices, respectively, strong operational results from Kensington and Wharf, lower capital expenditures, proceeds from the sale of Metalla Common Shares and a $10.0 million increase in the amount outstanding under the RCF, partially offset by lower production at Rochester, ongoing carrying costs at Silvertip and the payment of the cash portion of the contingent consideration of $18.8 million associated with the Silvertip acquisition.

At September 30, 2020, the Company had $78.5 million of cash, cash equivalents and restricted cash and $209.5 million available under its RCF.

Cash and cash equivalents increased $21.5 million in the nine months ended September 30, 2020, due to a 24% and 23% increase in average realized gold and silver prices, respectively, strong operational results from Wharf, lower capital expenditures, proceeds from the sale of Metalla Common Shares and a $20.0 million increase in the amount outstanding under the RCF, partially offset by lower ounces sold at Palmarejo, Rochester and Kensington, ongoing carrying costs at Silvertip and the payment of the cash portion of the contingent consideration of $18.8 million associated with the Silvertip acquisition.

The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary).

To provide additional flexibility to respond to potential downside scenarios, the Company drew down $100.0 million under its RCF in April 2020.

As the second quarter progressed, however, and the risk of significant disruption to operations due to COVID-19 subsided, the Company repaid $90.0 million under the RCF.

Additionally, Coeur established the $100.0 million ATM Program during the second quarter as a means to proactively increase its financial flexibility during the current period of volatility and uncertainty.

To provide additional flexibility to respond to potential downside scenarios, the Company has been able to periodically draw and make repayments under its RCF throughout the first nine months of 2020 and at September 30, 2020 had $20.0 million outstanding under the RCF.

Additionally, Coeur established the $100.0 million ATM Program during the second quarter as a means to proactively increase its financial flexibility during the current period of

volatility and uncertainty.

At the date of this filing, the Company has yet to issue shares of its common stock under the ATM Program.

Since quarter-end the Company has posted cash collateral relating to a small portion of outstanding gold hedges, which the Company expects to restructure.

Cash Provided by Operating Activities from Continuing Operations

Net cash provided by operating activities for the three months ended June 30, 2020 was $9.9 million, compared to $26.4 million for the three months ended June 30, 2019.

Net cash provided by operating activities for the six months ended June

30, 2020 was $2.0 million, compared to $10.6 million for the six months ended June 30, 2019.

Adjusted EBITDA from continuing operations for the three months ended June 30, 2020 was $42.2 million, compared to $30.6 million for the three months ended June 30, 2019.

Adjusted EBITDA from continuing operations for the six months ended June 30, 2020 was $88.6 million, compared to $51.2 million for the six months ended June 30, 2019 (see “Non-GAAP Financial Performance Measures”).

Net cash provided by operating activities for the three months ended September 30, 2020 was $79.5 million, compared to $42.0 million for the three months ended September 30, 2019.

Net cash provided by operating activities for the nine months ended September 30, 2020 was $81.4 million, compared to $52.6 million for the nine months ended September 30, 2019.

Adjusted EBITDA from continuing operations for the three months ended September 30, 2020 was $90.8 million, compared to $61.0 million for the three months ended September 30, 2019.

Adjusted EBITDA from continuing operations for the nine months ended September 30, 2020 was $179.4 million, compared to $114.9 million for the nine months ended September 30, 2019 (see “Non-GAAP Financial Performance Measures”).

Net cash used in operating activities was impacted by the following key factors for the applicable periods:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

In thousands 2020 2019 2020 2019

6 unchanged sentences

Cash provided by (used in) continuing operating activities $ 79,464 $ 41,996 $ 81,420 $ 52,585

Net cash provided by operating activities decreased $16.5 million in the three months ended June 30, 2020 compared to the three months ended June 30, 2019, primarily due lower sales of gold and silver (10% and 47%, respectively), partially offset by a 29% and 10% increase in average realized gold and silver prices, respectively and a net inflow related to a prepayment for concentrate deliveries from Kensington of $7.0 million.

Revenue for the three months ended June 30, 2020 decreased by $7.9 million, of which $37.1 million was due to lower volume of gold and silver sales, partially offset by an increase of $29.2 million as a result of higher average realized gold and silver prices.

Net cash provided by operating activities decreased $8.6 million in the six months ended June 30, 2020 compared to the six months ended June 30, 2019, primarily due to payments for accounts payable at Silvertip and lower sales of gold and silver (5% and 24%, respectively), partially offset by a 24% and 10% increase in average realized gold and silver prices, respectively, and the timing of VAT collection at Palmarejo.

Revenue for the six months ended June 30, 2020 increased by $10.4 million, of which $47.1 million was the result of higher average realized gold and silver prices, partially offset by a decrease of $36.7 million due to lower volume of gold and silver sales.

Net cash provided by operating activities increased $37.5 million in the three months ended September 30, 2020 compared to the three months ended September 30, 2019, primarily due to a 24% and 41% increase in average realized gold and silver prices, respectively, and lower metal inventory write-downs at Silvertip, partially offset by lower sales of gold and silver (5% and 14%, respectively).

Revenue for the three months ended September 30, 2020 increased by $30.3 million, of which $49.2 million was the result of higher average realized gold and silver prices, partially offset by a decrease of $19.0 million due to lower volume of gold and silver sales.

Net cash provided by operating activities increased $28.8 million in the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019, primarily due a 24% and 23% increase in average realized gold and silver prices, respectively, lower metal inventory write-downs at Silvertip, and the timing of VAT collection at Palmarejo, partially offset by payments for accounts payable at Silvertip, the receipt of prepayment for deliveries of concentrate from Kensington of $10.6 million in 2019 compared to the delivery of gold concentrate of $5.1 million in 2020, and lower sales of gold and silver (5% and 20%, respectively).

Revenue for the nine months ended September 30, 2020 increased by $40.7 million, of which $99.7 million was the result of higher average realized gold and silver prices, partially offset by a decrease of $59.0 million due to lower volume of gold and silver sales.

Cash Used in Investing Activities from Continuing Operations

Net cash provided by investing activities in the three months ended June 30, 2020 was $2.9 million compared to net cash used in investing activities of $17.3 million in the three months ended June 30, 2019.

Cash provided by investing activities increased primarily due to lower capital expenditures and net proceeds of $19.4 million from the sale of Metalla Common Shares.

The Company had capital expenditures of $16.7 million in the three months ended June 30, 2020 compared with $20.7 million in the three months ended June 30, 2019.

Capital expenditures in the three months ended June 30, 2020 were primarily related to POA 11 at Rochester and underground development at Palmarejo and Kensington.

Capital expenditures in the three months ended June 30, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new thickener at Palmarejo and the HPGR unit at Rochester.

Net cash used in investing activities in the six months ended June 30, 2020 was $14.8 million compared to $37.0 million in the six months ended June 30, 2019.

Net cash used in investing activities in the three months ended September 30, 2020 was $24.8 million compared to $29.7 million in the three months ended September 30, 2019.

Cash used in investing activities decreased primarily due to lower capital expenditures, partially offset by the purchase of $2.5 million of additional Integra Common Shares.

The Company had capital expenditures of $23.0 million in the three months ended September 30, 2020 compared with $30.7 million in the three months ended September 30, 2019.

Capital expenditures in the three months ended September 30, 2020 were primarily related to the commencement of POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington.

Capital expenditures in the three months ended September 30, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new thickener at Palmarejo, POA 11 and the new crushing circuit, including the HPGR unit, at Rochester.

Net cash used in investing activities in the nine months ended September 30, 2020 was $39.6 million compared to $66.7 million in the nine months ended September 30, 2019.

Cash used in investing activities decreased primarily due to lower capital expenditures and net proceeds of $19.4 million from the sale of Metalla Common Shares.

The Company had capital expenditures of $38.9 million in the six months ended June 30, 2020 compared with $48.2 million in the six months ended June 30, 2019.

Capital expenditures in the six months ended June 30, 2020 were primarily related to POA 11 at Rochester and underground development at Palmarejo and Kensington.

Capital expenditures in the six months ended June 30, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new thickener at Palmarejo and the HPGR unit at Rochester.

The Company had capital expenditures of $61.9 million in the nine months ended September 30, 2020 compared with $78.9 million in the nine months ended September 30, 2019.

Capital expenditures in the nine months ended September 30, 2020 were primarily related to POA 11 at Rochester, which commenced construction activities during the third quarter, and underground development at Palmarejo and Kensington.

Capital expenditures in the nine months ended September 30, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new thickener at Palmarejo, POA 11 and the new crushing circuit, including the HPGR unit, at Rochester.

Cash Provided by (Used in) Financing Activities from Continuing Operations

Net cash provided by financing activities in the three months ended June 30, 2020 was $4.4 million compared to net cash used in financing activities of $41.9 million in the three months ended June 30, 2019.

During the three months ended June 30, 2020, the Company borrowed $100.0 million and repaid $90.0 million under the RCF.

During the three months ended June 30, 2019, the Company repaid $82.0 million under the RCF and received net proceeds of approximately $48.9 million from the sale of 16.6 million shares of its common stock at an average price of $3.00 per share.

Net cash provided by financing activities in the six months ended June 30, 2020 was $27.8 million compared to net cash used in financing activities of $52.6 million in the six months ended June 30, 2019.

During the six months ended June 30, 2020, the Company borrowed $150.0 million from the RCF, partially offset by repayment of $90.0 million under the RCF and

the payment of cash contingent consideration of $18.8 million associated with the Silvertip acquisition.

During the six months ended June 30, 2019, the Company borrowed $15.0 million and repaid $97.0 million under the RCF and received net proceeds of approximately $48.9 million from the sale of 16.6 million shares of its common stock at an average price of $3.00 per share.

Net cash used in financing activities in the three months ended September 30, 2020 was $48.4 million compared to net cash provided by financing activities of $16.3 million in the three months ended September 30, 2019.

During the three months ended September 30, 2020, the Company repaid $40.0 million under the RCF.

During the three months ended September 30, 2019, the Company received net proceeds of approximately $73.8 million from the sale of 14.2 million shares of its common stock, partially offset by the repayment $53.0 million, net, of outstanding amounts under the RCF.

Net cash used in financing activities in the nine months ended September 30, 2020 was $20.6 million compared to $36.3 million in the nine months ended September 30, 2019.

During the nine months ended September 30, 2020, the Company drew $20.0 million, net, from the RCF, and paid cash contingent consideration of $18.8 million associated with the Silvertip acquisition.

During the nine months ended September 30, 2019, the Company repaid $135.0 million, net, of outstanding amounts under the RCF and received net proceeds of approximately $122.7 million from the sale of 30.9 million shares of its common stock.

Critical Accounting Policies and Accounting Developments

21 unchanged sentences

Adjusted net income (loss) is reconciled to Net income (loss) in the following table:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

In thousands except per share amounts 2020 2019 2020 2019

6 unchanged sentences

Wharf inventory write-down — — 3,323 —

Silvertip one-time costs 1,725 — 5,234 —

Loss on debt extinguishment — 1,282 — 1,282

Silvertip temporary suspension costs 838 — 6,073 —

Silvertip lease modification — — (4,051) —

Silvertip gain on contingent consideration — — (955) —

COVID-19 one-time costs 6,108 — 6,380 —

Novation 3,819 — 3,819 —

COVID-19 costs 4,037 — 10,418 —

Receivable write-down — 1,040 — 1,040

Interest income on notes receivables — — — (198)

4 unchanged sentences

Adjusted net income (loss) per share - Diluted $ 0.16 $ (0.02) $ 0.17 $ (0.24)

(1) For the three months ended June 30, 2019, tax effect of adjustments of $4.3 million (-25%) is primarily related to the write-down of Silvertip start-up costs.

(2) For the six months ended June 30, 2019, tax effect of adjustments of $9.7 million (-42%) is primarily related to the write-down of Silvertip start-up costs.

(1) For the three months ended September 30, 2019, tax effect of adjustments of $5.1 million (42%) is primarily related to the write-down of Silvertip inventory.

(2) For the nine months ended September 30, 2019, tax effect of adjustments of $14.8 million (42%) is primarily related to the write-down of Silvertip inventory.

EBITDA and Adjusted EBITDA

5 unchanged sentences

Adjusted EBITDA is reconciled to Net income (loss) in the following table:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

In thousands except per share amounts 2020 2019 2020 2019

11 unchanged sentences

Silvertip inventory write-down 1,232 13,966 13,717 41,285

Silvertip one-time costs 1,725 — 5,234 —

Silvertip temporary suspension costs 838 — 6,073 —

Silvertip lease modification — — (4,051) —

Silvertip gain on contingent consideration — — (955) —

COVID-19 one-time costs 6,108 — 6,380 —

COVID-19 costs 4,037 — 10,418 —

Novation 3,819 — 3,819 —

Wharf inventory write-down — — 3,323 —

Loss on debt extinguishment — 1,282 — 1,282

Receivable write-down — 1,040 — 1,040

Interest income on notes receivables — — — (198)

6 unchanged sentences

The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities of Continuing Operations , which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(Dollars in thousands) 2020 2019 2020 2019

8 unchanged sentences

Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

In thousands except per ounce or per pound amounts Palmarejo Rochester Kensington Wharf Silvertip Total

12 unchanged sentences

Lead ($/lb) $ —

Three Months Ended June 30, 2019

Three Months Ended September 30, 2019

In thousands except per ounce or per pound amounts Palmarejo Rochester Kensington Wharf Silvertip Total

12 unchanged sentences

Lead ($/lb) $ 1.74

Six Months Ended June 30, 2020

Nine Months Ended September 30, 2020

In thousands except per ounce or per pound amounts Palmarejo Rochester Kensington Wharf Silvertip Total

13 unchanged sentences

(1) Due to the temporary suspension of mining and processing activities these amounts are not meaningful.

Six Months Ended June 30, 2019

Nine Months Ended September 30, 2019

In thousands except per ounce or per pound amounts Palmarejo Rochester Kensington Wharf Silvertip Total

28 unchanged sentences

Silver ($/oz) $9.50 - $10.50 $13.50 - $14.75

Reconciliation of Costs Applicable to Sales for Previous 2020 Guidance

In thousands except per ounce or per pound amounts Palmarejo Rochester Kensington Wharf

Costs applicable to sales, including amortization (U.S.

GAAP) $ 178,977 $ 105,053 $ 178,595 $ 94,142

Amortization (42,220) (15,177) (54,009) (11,202)

Costs applicable to sales $ 136,757 $ 89,876 $ 124,586 $ 82,940

By-product credit — — — (998)

Adjusted costs applicable to sales $ 136,757 $ 89,876 $ 124,586 $ 81,942

Gold ounces 97,800 32,000 132,800 84,900

Silver ounces 6,300,000 3,800,000 60,350

Revenue Split

Gold 56 % 46 % 100 % 100 %

Silver 44 % 54 % — —

Costs applicable to sales

Gold ($/oz) $785 - $885 $1,250 - $1,400 $900 - $1,000 $950 - $1,000

Silver ($/oz) $9.50 - $10.50 $12.75 - $14.00

Cautionary Statement Concerning Forward-Looking Statements

This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold, silver, zinc and lead mining business, including statements regarding operations at the Company’s mines, exploration and development efforts, including the commencement of construction at Rochester related to the POA 11 project, COVID-19 planning, response and mitigation efforts, expectations regarding the Company's mines, hedging strategies, realization of deferred tax assets, expectations about the recovery of VAT in Mexico, staffing levels, liquidity management, financing plans, and risk management strategies.

This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold, silver, zinc and lead mining business, including statements regarding anticipated production, costs and expenses, operations at the Company’s mines, exploration and development efforts, including the filing of an updated technical report for Rochester, COVID-19 planning, response and mitigation efforts, expectations regarding the Company's mines, hedging strategies, realization of deferred tax assets, expectations about the recovery of VAT in Mexico, timing of completion of obligations under the Amended Sales Contract at Kensington, staffing levels, liquidity management, financing plans, and risk management strategies.

Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words.

Actual results could differ materially from those projected in the forward-looking statements.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this report and in “Risk Factors” section of the 2019 10-K, the risk factors set forth in the report on Form 10-Q for the quarterly period ended March 31, 2020, and the risks set forth in this MD&A and Item 3 of this report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and grade variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and mineralized material, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this report and in “Risk Factors” section of the 2019 10-K, the risk factors set forth in the report on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020, and the risks set forth in this MD&A and Item 3 of this report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and grade variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and mineralized material, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

Readers are cautioned not to put undue reliance on forward-looking statements.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis