What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2021-02-17 compared with 2020-02-19 · 657 added, 508 removed, 1171 unchanged (50% of the section changed)

8 unchanged sentences

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 17, 2021 expressed an unqualified opinion.

Change in accounting principle

As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for leases in 2019 due to the adoption of Account Standards Update (“ASU”) 2016-02, Leases.

Basis for opinion

6 unchanged sentences

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical audit matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Ore on Leach Pads - Rochester Mine

As described in Notes 2 and 6 to the consolidated financial statements, the Company’s ore on leach pads balance for the Rochester mine is $138 million at December 31, 2020.

This is a current balance of $48 million and a non-current balance of $71 million.

This is a current balance of $56 million and a noncurrent balance of $82 million.

The measurement and valuation of the ore on leach pads balance involves significant management estimates and assumptions related to the measure of metal content of ore placed on the leach pads, including recovery rates and ore grades.

The balance is determined

based on actual production costs incurred to produce and place ore on the leach pads, less costs allocated to minerals recovered through the leach process.

The balance is determined based on actual production costs incurred to produce and place ore on the leach pads, less costs allocated to minerals recovered through the leach process.

The historical cost of metal expected to be extracted within twelve months is classified as current on the balance sheet.

We identified the measurement and valuation for the ore on leach pads for the Rochester mine as a critical audit matter.

The principal considerations for our determination that the measurement and valuation for Rochester’s ore on leach pads is a critical audit matter are that certain management assumptions are complex and have a higher degree of estimation uncertainty and that changes in these assumptions could have a significant impact on the balance.

and that changes in these assumptions could have a significant impact on the balance.

In turn, auditing Rochester’s ore on leach pads requires significant auditor judgment.

1 unchanged sentence

• We obtained and tested Rochester’s 2020 roll forward of the estimated ounces and costs added to, recovered from, and the resulting ending amounts of ounces and costs of the ore on leach pads balance, including testing of certain assumptions, such as recovery rates and ore grades.

For the roll forward of estimated ounces, we assessed the completeness and accuracy of mining production information, including crusher tonnage data and truck load tonnage information.

• For the roll forward of estimated ounces, we assessed the completeness and accuracy of mining production information, including tests of daily tonnage processed.

• We evaluated management’s laboratory procedures related to assay testing used to estimate ore grade.

We evaluated the company’s use of specialists and their qualifications and experience related to their input on the recovery rates and ore grades estimates used by management in its calculation of ore on leach pads.

• We evaluated the company’s use of specialists and their qualifications and experience related to their input on the recovery rates, including the updated recovery rates, and ore grades estimates used by management in its calculation of ore on leach pads.

• We assessed the estimated timing of recoveries, which management uses in classifying current and non-current portions of the ore on leach pads balance.

We tested the operating effectiveness of management’s controls over mining production information, estimating the recovery rates, ore grades, and inventory roll forward related to recording Rochester’s balance of ore on lead pads.

As described in Notes 2 and 13 to the consolidated financial statements, the Company’s consolidated reclamation liability balance for its operating sites was $134 million at December 31, 2019.

The calculation of the reclamation liability involves significant management estimates and assumptions related to the amount and timing of reclamation costs and applicable inputs used in the calculation, such as discount rates.

Management uses specialists to provide support in its assessment.

We identified the reclamation liability valuation as a critical audit matter.

The principal considerations for our determination that the valuation of the reclamation liability is a critical audit matter are that certain management assumptions are complex and have a higher degree of estimation uncertainty and that changes in these assumptions could differ from current estimates and have a significant impact of the reclamation balance.

In turn, auditing the reclamation liability requires significant auditor judgment.

Our audit procedures related to the reclamation liability included the following, among others.

We obtained management’s estimate of future reclamation costs, and compared a sample of estimated reclamation costs to appropriate underlying documentation, such as vendor support.

We compared a sample of the timing of the estimated reclamation costs to appropriate underlying documentation, such as the life of mine plans.

We evaluated the competence and objectivity of the management’s specialists who assisted with determining the reclamation cost estimates.

We obtained management’s calculation of the reclamation liability and evaluated the appropriateness of significant inputs, such as the estimated discount rates.

We tested the operating effectiveness of management’s controls over estimating the future reclamation costs, the timing of these costs and inputs into the calculation of the reclamation liability, such as estimated discount rates.

Impairment of Long-lived Assets

As described in Notes 2, 4 and 16 to the financial statements, during the year ended December 31, 2019, the Company recognized an impairment of Silvertip’s long-lived assets in the total amount of $251 million.

As the impairment charge and the remaining property, plant and equipment and mining properties of the Silvertip mine are significant balances, we considered management’s assessment of the impairment as a critical audit matter.

The principal considerations for our determination that the impairment of the long-lived assets of the Silvertip mine is a critical audit matter are that management’s calculation of the fair value of Silvertip’s long-lived assets was estimated using a discounted future cash flow approach and includes certain management assumptions that are complex and have a higher degree of estimation uncertainty and that changes in these assumptions could have a significant impact on the balances.

The discounted cash flow model used significant unobservable inputs.

These assumptions include estimated quantities of recoverable minerals, expected lead, zinc and silver prices, treatment charges, production levels, operating costs, capital requirements and discount rates.

Included in recoverable minerals is existing proven and probable reserves and an estimated value for mineralization other than proven and probable reserves, including exploration potential.

Performing audit procedures to evaluate management’s assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our specialists.

Our audit procedures related to Silvertip impairment included the following, among others.

We obtained and tested management’s discounted future cash flow calculation, including significant assumptions such as estimated quantities of recoverable minerals, expected lead, zinc and silver prices, treatment charges, production levels, operating costs, capital requirements, and discount rates.

We evaluated the competence and objectivity of the management’s specialists who assisted with preparing the discounted cash flow analysis, including those involved in determining the recoverable minerals.

We compared the amount of proven and probable reserves and an estimated value for mineralization other that proven and probable reserves to publicly available information.

We compared the expected lead, zinc and silver pricing to available market information

We evaluated the reasonableness for management’s forecasts of production levels, operating costs, and capital requirement by comparing to historical results and internal communications to management and the Board of Directors and external communications made by management to analysts and investors

We utilized a valuation specialist to assist in testing the discount rate included in the Company’s discounted cash flow calculation

We tested the operating effectiveness of management’s controls over the discounted future cash flow calculation, including the controls related the development of the associated assumptions.

• We tested the effectiveness of management’s controls over mining production information, estimating the recovery rates, ore grades, and inventory roll forward related to recording Rochester’s balance of ore on leach pads.

/s/ Grant Thornton LLP

32 unchanged sentences

CONSOLIDATED BALANCE SHEETS

December 31, 2019

December 31, 2018

In thousands, except share data

December 31, 2020 December 31, 2019

ASSETS Notes In thousands, except share data

CURRENT ASSETS

Cash and cash equivalents $ 92,794 $ 55,645

Receivables 5 23,484 18,666

Inventory 6 51,210 55,886

Ore on leach pads 6 74,866 66,192

Prepaid expenses and other 27,254 14,047

269,608 210,436

NON-CURRENT ASSETS

3 unchanged sentences

Restricted assets 9,492 8,752

Equity and debt securities

Equity securities 7 12,943 35,646

Receivables 5, 21 26,447 28,709

Other 56,595 62,810

TOTAL ASSETS $ 1,403,977 $ 1,378,636

LIABILITIES AND STOCKHOLDERS’ EQUITY

2 unchanged sentences

Accrued liabilities and other 23 119,158 95,616

Debt 12 22,074 22,746

Reclamation 13 2,299 3,114

234,108 190,652

NON-CURRENT LIABILITIES

Debt 12 253,427 272,751

Reclamation 13 136,975 133,417

Deferred tax liabilities 34,202 41,976

Other long-term liabilities 51,786 72,836

476,390 520,980

COMMITMENTS AND CONTINGENCIES 21

5 unchanged sentences

Accumulated deficit ( 2,908,120 ) ( 2,933,747 )

693,479 667,004

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,403,977 $ 1,378,636

4 unchanged sentences

Year Ended December 31,

In thousands, except share data

2020 2019 2018

Notes In thousands, except share data

Revenue 3 $ 785,461 $ 711,502 $ 625,904

COSTS AND EXPENSES

Costs applicable to sales (1)

3 440,335 551,181 440,950

Amortization 131,387 178,876 128,473

General and administrative 33,722 34,493 31,345

Exploration 42,643 22,527 25,397

Impairment of long-lived assets — 250,814 —

5 unchanged sentences

Interest expense, net of capitalized interest 12 ( 20,708 ) ( 24,771 ) ( 24,364 )

Other, net 18 ( 5,941 ) ( 3,193 ) ( 24,705 )

Total other income (expense), net ( 19,048 ) ( 13,215 ) ( 45,431 )

4 unchanged sentences

NET INCOME (LOSS) $ 25,627 $ ( 341,203 ) $ ( 48,405 )

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Unrealized gain (loss) on cash flow hedges

OTHER COMPREHENSIVE INCOME (LOSS):

Change in fair value of derivative contracts designated as cash flow hedges, net of tax of $ 0 , $ 365 and $ 0 for the years ended December 31, 2020, 2019 and 2018, respectively.

( 12,434 ) ( 136 ) —

Reclassification adjustments for realized (gain) loss on cash flow hedges 1,434 — —

Unrealized gain (loss) on debt and equity securities — 59 26

Reclassification adjustments for impairment of equity securities

Reclassification adjustments for realized (gain) loss on sale of equity securities

Other comprehensive income (loss) ( 11,000 ) ( 77 ) 26

4 unchanged sentences

Net income (loss) from discontinued operations — 0.03 —

$ 0.11 $ ( 1.56 ) $ ( 0.26 )

Diluted income (loss) per share:

1 unchanged sentence

Net income (loss) from discontinued operations — 0.03 —

$ 0.11 $ ( 1.56 ) $ ( 0.26 )

(1) Excludes amortization.

5 unchanged sentences

Year Ended December 31,

2020 2019 2018

Notes In thousands

CASH FLOWS FROM OPERATING ACTIVITIES:

1 unchanged sentence

(Income) loss from discontinued operations — ( 5,693 ) ( 550 )

Amortization 131,387 178,876 128,473

Accretion 11,984 12,147 13,933

Deferred taxes ( 7,283 ) ( 36,817 ) ( 48,441 )

2 unchanged sentences

Stock-based compensation 15 8,548 9,189 8,328

Gain on sale of the Joaquin project

Gain on modification of right of use lease 11 ( 4,051 ) — —

Impairment of long-lived assets 4 — 250,814 —

Write-downs 6 16,821 69,246 55,297

Deferred revenue recognition 21 ( 16,702 ) ( 1,857 ) —

Other 3,737 14,281 7,353

Changes in operating assets and liabilities:

Receivables ( 9,463 ) ( 2,739 ) ( 9,260 )

Prepaid expenses and other current assets ( 2,621 ) 280 4,876

11 unchanged sentences

Proceeds from notes receivable — 7,168 19,000

Other ( 252 ) 1,919 11

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS ( 65,671 ) ( 92,566 ) ( 101,998 )

6 unchanged sentences

Silvertip contingent consideration 21 ( 18,750 ) ( 18,697 ) —

Other ( 1,801 ) ( 3,404 ) ( 5,160 )

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS ( 46,535 ) ( 60,896 ) ( 5,219 )

4 unchanged sentences

Less net cash used in discontinued operations — — ( 32,930 )

37,152 ( 61,051 ) ( 85,333 )

Cash, cash equivalents and restricted cash at beginning of period 57,018 118,069 203,402

1 unchanged sentence

(1) Less net cash used in discontinued operations includes the following cash transactions:

net subsidiary payments to parent company of $ 1,748 and $ 20,759 during the years ended December 31, 2018 and 2017.

net subsidiary payments to parent company of $ 1,748 during the year ended December 31, 2018.

The accompanying notes are an integral part of these Consolidated Financial Statements.

2 unchanged sentences

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

Paid-In Capital

In thousands Common

Shares Common

Value Additional

Paid-In Capital Accumulated

Deficit Accumulated

Comprehensive

Income (Loss)

Balances at December 31, 2016

Net income (loss)

Other comprehensive income (loss)

Common stock issued for acquisitions

Common stock issued under stock-based compensation plans, net

Income (Loss) Total

Balances at December 31, 2017 185,638 1,856 3,357,345 ( 2,546,743 ) 2,519 814,977

12 unchanged sentences

Balances at December 31, 2019 241,529 $ 2,415 $ 3,598,472 $ ( 2,933,747 ) $ ( 136 ) $ 667,004

Net income (loss) — — — 25,627 — 25,627

Other comprehensive income (loss) — — — — ( 11,000 ) ( 11,000 )

Common stock issued for Silvertip contingent consideration payment 878 9 5,286 — — 5,295

Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,345 14 6,539 — — 6,553

Balances at December 31, 2020 243,752 $ 2,438 $ 3,610,297 $ ( 2,908,120 ) $ ( 11,136 ) $ 693,479

The accompanying notes are an integral part of these Consolidated Financial Statements.

7 unchanged sentences

Coeur’s corporate headquarters are in Chicago, Illinois.

The cash flow and profitability of the Company's operations are significantly impacted by the market price of gold, silver, zinc and lead, which are affected by numerous factors beyond the Company's control.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

8 unchanged sentences

Use of Estimates

The Company's Consolidated Financial Statements have been prepared in accordance with United States Generally

Accepted Accounting Principles.

The Company's Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles.

The preparation of the Company's Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period.

3 unchanged sentences

Principles of Consolidation

The Consolidated Financial Statements include the wholly-owned subsidiaries of the Company, the most significant of

which are Coeur Mexicana S.A.

de C.V., Coeur Rochester, Inc., Coeur Alaska, Inc., Wharf Resources (U.S.A.), Inc., Coeur Silvertip Holdings Ltd.

The Consolidated Financial Statements include the wholly-owned subsidiaries of the Company, the most significant of which are Coeur Mexicana S.A.

de C.V., Coeur Rochester, Inc., Coeur Alaska, Inc., Wharf Resources (U.S.A.), Inc., and Coeur Silvertip Holdings Ltd.

All intercompany balances and transactions have been eliminated.

16 unchanged sentences

As the ore body is drilled in preparation for the blasting process, samples are taken of the drill residue which are assayed to determine estimated quantities of contained metal.

The Company estimates the quantity of ore by utilizing global positioning satellite survey techniques.

The Company then processes the ore through crushing facilities where the output is again weighed and sampled for assaying.

5 unchanged sentences

The inventory is stated at lower of cost or net realizable value, with cost being determined using a weighted average cost method.

The historical cost of metal expected to be extracted within twelve months is classified as current and the historical cost of metals contained within the broken ore expected to be extracted beyond twelve months is classified as non-current.

The historical cost of metal expected to be extracted within 12 months is classified as current and the historical cost of metals contained within the broken ore expected to be extracted beyond 12 months is classified as non-current.

Ore on leach pads is valued based on actual production costs incurred to produce and place ore on the leach pad, less costs allocated to minerals recovered through the leach process.

1 unchanged sentence

The quantities of metal contained in the ore are based upon actual weights and assay analysis.

The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than twenty years of leach pad operations at the Rochester mine and thirty years of leach pad operations at the Wharf mine.

The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than 20 years of leach pad operations at the Rochester mine and thirty years of leach pad operations at the Wharf mine.

The assumptions used by the Company to measure metal content during each stage of the inventory conversion process includes estimated recovery rates based on laboratory testing and assaying.

The Company periodically reviews its estimates compared to actual experience and revises its estimates when appropriate.

The ultimate recovery will not be known until leaching operations cease.

Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

In 2020, the Company revised its recovery rate assumptions in line with the updated technical report for Rochester filed in December 2020.

This change resulted in an adjustment to the ending Ore on leach pads balance with the resulting charges allocated between Costs Applicable to Sales and Amortization in the amounts of $7.2 million and $1.2 million, respectively.

Metal and Other Inventory

5 unchanged sentences

Property, Plant, and Equipment

Expenditures for new facilities, assets acquired pursuant to capital leases, new assets or expenditures that extend the

useful lives of existing facilities are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such facilities, lease term, or the useful life of the individual assets.

Expenditures for new facilities, assets acquired pursuant to finance leases, new assets or expenditures that extend the useful lives of existing facilities are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such facilities, lease term, or the useful life of the individual assets.

Productive lives range from 7 to 30 years for buildings and improvements and 3 to 10 years for machinery and equipment.

3 unchanged sentences

Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines.

Costs incurred before mineralization are classified as proven and probable reserves are capitalized if a project is in pre-production phase or expensed and classified as Exploration or Pre-development if the project is not yet in pre-production.

Costs incurred before mineralization are classified as proven and probable reserves and are capitalized if a project is in pre-production phase or expensed and classified as Exploration or Pre-development if the project is not yet in pre-production.

Mine development costs are amortized using the units-of-production method over the estimated life of the ore body generally based on recoverable ounces to be mined from proven and probable reserves.

Interest expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use.

Drilling and related costs incurred at the Company’s operating mines are expensed as incurred in Exploration, unless the Company can conclude with a high degree of confidence, prior to the commencement of a drilling program, that the drilling costs will result in the conversion of a mineralized material into proven and probable reserves.

The Company’s assessment is based on

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

the following factors:

expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use.

The Company’s assessment is based on the following factors:

results from previous drill programs;

2 unchanged sentences

and preliminary estimates of mine inventory, ore grade, cash flow and mine life.

In addition, the Company must have all permitting and/or contractual requirements necessary to have the right to and/or control

of the future benefit from the targeted ore body.

In addition, the Company must have all permitting and/or contractual requirements necessary to have the right to and/or control of the future benefit from the targeted ore body.

The costs of a drilling program that meet these criteria are capitalized as mine development costs.

25 unchanged sentences

See Note 4 -- Impairment of Long-lived Assets and 16 -- Fair Value Measurements for additional detail of the impairment and assumptions used in the determination of the fair value of the long-lived assets tested for impairment.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Properties Held for Sale

8 unchanged sentences

If all of the above criteria are met, the Company classifies the property as held for sale.

When these criteria are met, the Company suspends depreciation on the properties held for sale.

The properties held for sale and associated liabilities are classified separately on the consolidated

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

balance sheets.

Such properties are recorded at the lesser of the carrying value or estimated fair value less costs to sell.

Additionally, if the sale represents a strategic shift that has (or will have) a major effect on the entity's results and operations, the assets, liabilities and operations for the periods presented are classified on the Consolidated Balance Sheets as held for sale and Consolidated Statements of Comprehensive Income (Loss) as discontinued operations for all periods presented.

At December 31, 2017, the San Bartolomé mine met the held for sale criteria.

Furthermore, considering that San Bartolomé was an operating mine and the sale represented an exit from the South American region, the Company determined that the expected disposal of Manquiri and the San Bartolomé mine through a sale of all of the issued and outstanding shares of Manquiri represented a strategic shift to a North America-focused mining portfolio that had a major effect on the entity's results and operations, therefore, the applicable assets, liabilities and operations for the periods presented are classified on the Consolidated Balance Sheets as held for sale and the Consolidated Statements of Comprehensive Income (Loss) as discontinued operations for all periods presented.

Restricted Assets

5 unchanged sentences

Collateral could also be released to the extent the Company is able to secure alternative financial assurance satisfactory to the regulatory agencies.

The Company believes there is a reasonable probability that the collateral will remain in place beyond a twelve-month period and has therefore classified these

investments as long-term.

The Company believes there is a reasonable probability that the collateral will remain in place beyond a twelve-month period and has therefore classified these investments as long-term.

We determine if an arrangement is, or contains, a lease at the inception date.

22 unchanged sentences

Derivative Financial Instruments

The Company is exposed to various market risks, including the effect of changes in metal prices and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business.

The Company is exposed to various market risks, including the effect of changes in metal prices, foreign exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business.

The Company may elect to designate certain derivatives as hedging instruments under U.S.

2 unchanged sentences

Notes to Consolidated Financial Statements

The Company, from time to time, uses derivative contracts to protect the Company’s exposure to fluctuations in metal prices.

The Company, from time to time, uses derivative contracts to protect the Company’s exposure to fluctuations in metal prices and foreign exchange rates.

The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

Assuming normal market conditions, the change in the market value of such derivative contracts has historically been, and is expected to continue to be, highly effective at offsetting changes in price movements of the hedged item.

The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings.

Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of Revenue in the same period as the related sale is recognized.

Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of Costs Applicable to Sales or Pre-development, Reclamation and Other in the same period the related expenses are incurred.

For derivatives not designated as hedging instruments, the Company recognizes derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value.

10 unchanged sentences

The fair value of restricted stock is based on the Company's stock price on the date of grant.

The fair value of performance leverage stock units (“PSUs”) with market conditions is determined using a Monte Carlo simulation model.

The fair value of performance leverage stock units with market conditions is determined using a Monte Carlo simulation model.

Stock based compensation expense related to awards with a market or performance condition is generally recognized over the vesting period of the award utilizing the graded vesting method, while all other awards are recognized on a straight-line basis.

14 unchanged sentences

Under the Company’s concentrate sales contracts with third-party smelters, metal prices are set on a specified future quotational period, typically one to three months, after the shipment date based on market prices.

When the Company sells gold concentrate to the third-party smelters, the performance obligation is satisfied when the concentrate is loaded onto the third-party shipping vessel.

When the Company sells gold concentrate to the third-party smelters, the performance obligation is satisfied when risk of loss is transferred to the customer.

The contracts, in general, provide for provisional payment based upon provisional assays and historical metal prices.

Final settlement is based on the applicable price for the specified future quotational period and generally occurs three to six months after shipment.

The Company’s provisionally priced sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes.

The host contract is the receivable from the sale of concentrates measured at the forward price at the time of sale.

The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through revenue each period until the date of final metal settlement.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

settlement is based on the applicable price for the specified future quotational period and generally occurs three to six months after shipment.

The Company’s provisionally priced sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes.

The host contract is the receivable from the sale of concentrates measured at the forward price at the time of sale.

The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through revenue each period until the date of final metal settlement.

The Company also sells concentrate under off-take agreements to third-party customers that are responsible for arranging the smelting of the concentrate.

1 unchanged sentence

The quotational period varies by contract, but is generally a one-month period following the shipment of the concentrate.

The performance obligation is satisfied when the concentrate is loaded onto the third-party shipping vessel.

The off-take agreement allows for the Company to sell concentrate in advance of shipment and results in the customer taking ownership of the concentrate prior to shipment.

The performance obligation is satisfied when risk of loss is transferred to the customer.

The Company recognizes revenue from concentrate sales, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer.

4 unchanged sentences

The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.

The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

See Note 21 -- Commitments and Contingencies for additional detail.

The following table presents a rollforward of the Franco-Nevada contract liability balance:

Year Ended December 31,

In thousands 2020 2019 2018

Opening Balance $ 11,061 $ 12,918 $ 14,883

1 unchanged sentence

Closing Balance $ 9,376 $ 11,061 $ 12,918

In December 2019, the Company received a $ 15.0 million prepayment for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined below).

The Company expects to recognize the full value of the accrued liability by June 2020 when it satisfies the performance obligation of transferring control of the concentrate to the customer.

In June 2020, the Company received a $15.0 million prepayment (the “June 2020 Prepayment” as defined in Note 21) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 21).

In December 2020, the Company received a $ 15.0 million prepayment (the “December 2020 Prepayment” as defined in Note 21) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 21).

The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer.

The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheet.

See Note 21 -- Commitments and Contingencies for additional detail.

The following table presents a rollforward of the Amended Sales Contract liability balance:

Year Ended December 31,

In thousands 2020 2019 2018

Opening Balance $ 15,009 $ — $ —

Additions 30,177 40,009 —

Revenue Recognized ( 30,183 ) ( 25,000 ) —

Closing Balance $ 15,003 $ 15,009 $ —

Recently Adopted Accounting Standards

In February 2016, the FASB issued ASU 2016-02, “ Leases, ” which required lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet.

These changes became effective for the Company’s fiscal year beginning January 1, 2019 and the Company adopted it using the cumulative-effect adjustment transition method approved by the FASB in July 2018, which did not require the Company to recast the comparative periods presented when transitioning to the new guidance on January 1, 2019.

The Company elected to utilize the transition related practical expedients permitted by the new standard.

In addition to existing capital leases and other financing obligations, the adoption of the new standard resulted in the recognition of additional right-of-use assets and lease liabilities related to operating leases of approximately $ 65.0 million .

These changes did not materially impact the Company’s consolidated net income, financial position or cash flows.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”.

1 unchanged sentence

The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments.

The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective.

We plan to adopt the new credit loss standard effective January 1, 2020.

We do not expect the new credit loss standard to have a material effect on our financial position, results of operations or cash flows.

The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

reporting period in which the guidance is effective.

The adoption of the new credit loss standard in 2020 did not have a material effect on our financial position, results of operations or cash flows.

Recently Issued Accounting Standards

In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes.

7 unchanged sentences

NOTE 3 – SEGMENT REPORTING

The Company’s operating segments include the Palmarejo complex, and the Rochester, Kensington, Wharf and Silvertip mines.

The Company’s operating segments include the Palmarejo, Rochester, Kensington, Wharf and Silvertip mines.

Except for the Silvertip mine, all operating segments are engaged in the discovery, mining, and production of gold and/or silver.

The Silvertip mine is engaged in the discovery, mining, and production of silver, zinc and lead.

Silvertip commenced commercial production in September 2018.

Other includes the Sterling/Crown project and La Preciosa project, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.

The Company determined that the disposition in the first quarter of 2018 of Empresa Minera Manquiri S.A., a Bolivian Sociedad anonima (“Manquiri”), which operates the San Bartolomé mine, represented a strategic shift to a North America-focused mining portfolio and had significant effect on the entity's results and operations;

therefore, the results of operations are presented as discontinued operations in Other for all periods presented.

The Silvertip mine, which temporarily suspended mining and processing activities in February 2020, is engaged in the discovery, mining, and production of silver, zinc and lead.

Other includes the Sterling/Crown and La Preciosa projects, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.

The 2019 novel strain of coronavirus causing a contagious respiratory disease known as COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, poses a material risk to Coeur’s business and operations.

Early in the second quarter of 2020, the Company temporarily suspended active mining and processing activities at the Palmarejo complex in the State of Chihuahua, Mexico, in accordance with a government decree in response to COVID-19.

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 and in the third quarter.

In addition, as a result of several reported positive COVID-19 cases at our Kensington mine outside of Juneau, Alaska, during the third quarter of 2020 the Company experienced a minor short-term production impact associated with this situation, which adversely impacted production and cash flows.

Coeur continues to require all employees who travel to the Kensington mine to submit to a quarantine and testing protocol in Juneau, Alaska before traveling to the mine.

The Company believes this is an important step to protect the health and safety of all workers who stay at the Kensington camp as well as the Juneau community, although it has required changes to worker scheduling and has resulted and is expected to continue to result in higher labor costs due to additional overtime pay and pay during the quarantine period.

Incremental costs associated with the Company’s COVID-19 health and safety protocols are recorded in Pre-development, reclamation, and other expenses in our Consolidated Statement of Comprehensive Income (Loss) and are included in Other operating expenses in the table below.

Because of the highly uncertain and dynamic nature of events relating to the COVID-19 pandemic, it is not currently possible to estimate the impact of the pandemic on the Company’s operating segments.

However, these effects could have a material impact on our operations, and Coeur will continue to monitor the COVID-19 situation closely.

Financial information relating to the Company’s segments is as follows (in thousands):

Year ended December 31, 2019

Silvertip (3)

Year Ended December 31, 2020 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 154,056 $ 46,337 $ 216,497 $ 167,743 $ — $ — $ 584,633

Silver sales 132,525 63,916 — 2,504 1,230 — 200,175

Zinc sales — — — — ( 662 ) — ( 662 )

Lead sales — — — — 1,315 — 1,315

Metal sales 286,581 110,253 216,497 170,247 1,883 — 785,461

Costs and Expenses

Costs applicable to sales (1)

125,204 86,112 121,727 89,635 17,657 — 440,335

Amortization 44,873 14,306 49,477 12,473 8,923 1,335 131,387

Exploration 6,955 3,303 8,568 905 12,228 10,684 42,643

Write-downs — — — — — — —

Other operating expenses 7,927 5,144 12,012 838 23,123 40,332 89,376

3 unchanged sentences

Interest expense, net ( 918 ) ( 1,142 ) ( 1,017 ) ( 182 ) ( 672 ) ( 16,777 ) ( 20,708 )

Other, net ( 5,273 ) ( 2,718 ) ( 18 ) ( 69 ) 1,793 344 ( 5,941 )

Income and mining tax (expense) benefit ( 28,029 ) ( 863 ) ( 1,244 ) ( 6,644 ) — ( 265 ) ( 37,045 )

2 unchanged sentences

Segment assets (2)

$ 305,291 $ 346,986 $ 169,414 $ 75,047 $ 157,529 $ 177,886 $ 1,232,153

Capital expenditures $ 25,511 $ 37,542 $ 19,825 $ 2,447 $ 13,144 $ 810 $ 99,279

1 unchanged sentence

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

(3) Subsequent to the end of the period covered by this Report, the Company made the decision to temporarily suspend mining and processing activities at Silvertip as a result of further deterioration in zinc and lead market conditions as well as processing facility-related challenges.

The Company plans to (i) double its exploration investment in 2020 to potentially further expand the mineralized material and extend the mine life, and (ii) pursue a mill expansion to improve the asset’s cost structure and its ability to deliver sustainable cash flow

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Year ended December 31, 2018

Year Ended December 31, 2019 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 141,669 $ 50,225 $ 181,111 $ 120,342 $ — $ — $ 493,347

Silver sales 111,032 61,799 — 1,072 17,575 $ — 191,478

Zinc sales — — — — 12,806 — 12,806

Lead sales — — — — 13,871 — 13,871

Metal sales 252,701 112,024 181,111 121,414 44,252 — 711,502

Costs and Expenses

Costs applicable to sales (1)

141,927 100,205 119,602 80,689 108,758 — 551,181

Amortization 59,379 18,041 50,592 12,280 36,738 1,846 178,876

Exploration 5,658 657 5,588 272 2,469 7,883 22,527

Write-downs — — — — 250,814 — 250,814

Other operating expenses 4,591 4,572 1,248 2,832 1,216 38,455 52,914

Other income (expense)

Loss on debt extinguishment — — — — — ( 1,281 ) ( 1,281 )

Fair value adjustments, net — — — — — 16,030 16,030

Interest expense, net ( 444 ) ( 1,015 ) ( 1,333 ) ( 100 ) ( 1,137 ) ( 20,742 ) ( 24,771 )

Other, net ( 4,798 ) ( 378 ) ( 704 ) 89 ( 557 ) 3,155 ( 3,193 )

Income and mining tax (expense) benefit ( 14,257 ) ( 709 ) — ( 3,041 ) 32,084 ( 2,948 ) 11,129

2 unchanged sentences

Segment assets (2)

$ 319,292 $ 284,878 $ 194,076 $ 84,765 164,125 $ 168,647 $ 1,215,783

Capital expenditures $ 32,658 $ 22,592 $ 23,513 $ 2,220 17,504 $ 1,285 $ 99,772

1 unchanged sentence

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

Year ended December 31, 2017

Year Ended December 31, 2018 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 131,758 $ 66,556 $ 132,924 $ 95,770 $ — $ — $ 427,008

Silver sales 113,998 75,252 — 746 3,157 $ — 193,153

Zinc sales — — — — 3,612 — 3,612

Lead sales — — — — 2,131 — 2,131

Metal sales 245,756 141,808 132,924 96,516 8,900 — 625,904

Costs and Expenses

Costs applicable to sales (1)

120,088 105,677 112,364 67,201 35,620 — 440,950

Amortization 60,744 20,909 29,508 11,072 5,235 1,005 128,473

Exploration 10,516 332 5,871 104 2,748 5,826 25,397

Write-downs — — — — — — —

Other operating expenses 3,043 7,071 1,721 2,686 303 36,564 51,388

3 unchanged sentences

Interest expense, net ( 2,137 ) ( 466 ) ( 973 ) ( 40 ) ( 766 ) ( 19,982 ) ( 24,364 )

Other, net ( 8,308 ) ( 1,211 ) 2,795 ( 834 ) ( 370 ) ( 16,777 ) ( 24,705 )

Income and mining tax (expense) benefit ( 15,724 ) ( 874 ) — ( 1,063 ) 16,057 18,384 16,780

2 unchanged sentences

Segment assets (2)

$ 363,024 $ 269,903 $ 224,460 $ 102,246 415,998 $ 175,040 $ 1,550,671

Capital expenditures $ 29,425 $ 9,919 $ 44,738 $ 3,382 52,932 $ 391 $ 140,787

4 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2019

December 31, 2018

Assets December 31, 2020 December 31, 2019

Total assets for reportable segments $ 1,232,153 $ 1,215,783

Cash and cash equivalents 92,794 55,645

Other assets 79,030 107,208

Total consolidated assets $ 1,403,977 $ 1,378,636

Geographic Information

Long-Lived Assets

December 31, 2019

December 31, 2018

Long-Lived Assets December 31, 2020 December 31, 2019

United States $ 503,818 $ 494,286

Year ended December 31,

Mexico 293,436 312,168

Canada 149,018 146,804

Other 657 7,486

Total $ 946,929 $ 960,744

Revenue Year ended December 31,

2020 2019 2018

United States $ 496,997 $ 414,548 $ 371,248

The Company's doré, as well as the concentrate product produced by the Wharf mine, is refined into gold and silver

bullion according to benchmark standards set by the LBMA, which regulates the acceptable requirements for bullion traded in the London precious metals markets.

Mexico 286,581 252,701 245,756

Canada 1,883 44,253 8,900

Total $ 785,461 $ 711,502 $ 625,904

The Company's doré, as well as the concentrate product produced by the Wharf mine, is refined into gold and silver bullion according to benchmark standards set by the LBMA, which regulates the acceptable requirements for bullion traded in the London precious metals markets.

The Company then sells its gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe.

The Company had eight trading counterparties at December 31, 2019.

The Company had seven trading counterparties at December 31, 2020.

The Company's sales of doré or concentrate product produced by the Palmarejo, Rochester, and Wharf mines amounted to approximately 72 %, 68 %, and 77 %, of total metal sales for the years ended December 31, 2020, 2019, and 2018, respectively.

In November 2018, one of the refiners of the Company’s doré, RMC, a U.S.-based precious metals refiner, filed for protection under Chapter 11 of the United States Bankruptcy Code.

In November 2018, one of the refiners of the Company’s doré, Republic Metals Corporation (“RMC”), a U.S.-based precious metals refiner, filed for protection under Chapter 11 of the United States Bankruptcy Code.

See Note 5 -- Receivables for additional detail.

1 unchanged sentence

The Company’s sales of concentrate produced by the Kensington and Silvertip mines amounted to approximately 28 %, 32 %, and 23 % of total metal sales for the years ended December 31, 2020, 2019, and 2018, respectively.

The Company believes that the loss of any one smelter, refiner, trader or third-party customer would not materially adversely affect the Company due to the liquidity of the markets and current availability of alternative trading counterparties.

The Company believes that the loss of any one smelter, refiner, trader or third-party customer would not have a material adverse effect on the Company due to the liquidity of the markets and current availability of alternative trading counterparties.

The following table indicates customers that represent 10% or more of total sales of metal for at least one of the years December 31, 2020, 2019, and 2018 (in millions):

Year ended December 31,

Segments reporting revenue

Palmarejo, Wharf, Rochester

Ocean Partners

Silvertip, Kensington

Techemet Metal Trading

Rochester, Wharf

Palmarejo, Rochester

China National Gold

Customer 2020 2019 2018 Segments reporting revenue

Asahi $ 272.1 $ 341.0 $ 213.0 Palmarejo, Wharf, Rochester, Kensington

Ocean Partners 161.0 149.7 74.8 Silvertip, Kensington

Toronto Dominion Bank 88.6 35.1 44.9 Rochester

Techemet Metal Trading 81.8 9.4 83.3 Rochester, Wharf

Argor-Heraeus 79.9 23.1 — Palmarejo

RMC — — 71.7 Palmarejo, Rochester

China National Gold — — 54.1 Kensington

Coeur Mining, Inc.

2 unchanged sentences

NOTE 4 – IMPAIRMENT OF LONG-LIVED ASSETS

During the fourth quarter of 2019, the Company performed a comprehensive analysis of its Silvertip property and determined that indicators of impairment existed, primarily as a result of further deterioration in zinc and lead market conditions as well as processing facility-related challenges.

As a result of the impairment indicators, a recoverability test was performed and the Company concluded that the carrying value of the long-lived assets for the Silvertip property was impaired.

A non-cash impairment charge of $ 250.8 million was recorded during the fourth quarter of 2019.

In 2019, the Company performed a comprehensive analysis of its Silvertip property and determined that indicators of impairment existed, primarily as a result of further deterioration in zinc and lead market conditions as well as processing facility-related challenges.

As a result, a non-cash impairment charge of $ 250.8 million was recorded during the in 2019.

The write-down was allocated between Property, plant and equipment, net , Mining properties, net and Other non-current assets , $ 43.6 million, $ 201.5 million and $ 5.7 million, respectively.

Subsequent to the end of the period covered by this Report, the Company made the decision to temporarily suspend active mining and processing activities.

See Note 16 -- Fair Value Measurements for additional detail of the assumptions used in the determination of the fair value of the long-lived assets tested for impairment.

1 unchanged sentence

Receivables consist of the following:

December 31, 2019

December 31, 2018

In thousands December 31, 2020 December 31, 2019

Current receivables:

2 unchanged sentences

Income tax receivable 530 105

Manquiri Notes Receivable

Other 2,581 1,804

$ 23,484 $ 18,666

Non-current receivables:

VAT receivable (1)

$ 26,447 $ 28,009

RMC receivable (2)

26,447 28,709

Total receivables $ 49,931 $ 47,375

2 unchanged sentences

See Note 21 -- Commitments and Contingencies for additional detail.

(2) In November 2018, RMC, a U.S.-based precious metals refiner, filed Chapter 11 bankruptcy.

Approximately 0.4 million ounces of Coeur’s silver and 6,500 ounces of Coeur’s gold was impacted by RMC’s bankruptcy filing.

In September 2019, the Company received a partial settlement payment of $2.6 million in respect of its claims in the bankruptcy proceedings and as a result, the Company recorded a $1.0 million charge in Other, net , against the receivable balance to reflect the new carrying value of the Company’s remaining claims.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The $1.5 million decrease in the year ended December 31, 2020 is attributable to a weaker Mexican Peso.

(2) Represents receivable due from the successor to RMC, whose bankruptcy filing in November 2018 impacted approximately 0.4 million ounces of Coeur’s silver and 6,500 ounces of Coeur’s gold.

In June 2020, the Company received a $0.7 million payment in respect of certain of its claims in the bankruptcy proceedings.

NOTE 6 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:

December 31, 2019

December 31, 2018

In thousands December 31, 2020 December 31, 2019

Concentrate $ 2,909 $ 6,557

Precious metals 14,788 14,040

Supplies 33,513 35,289

51,210 55,886

Ore on Leach Pads:

Current 74,866 66,192

Non-current 81,963 71,539

156,829 137,731

Long-term Stockpile (included in Other )

Total Inventory and Ore on Leach Pads $ 213,703 $ 193,617

In the year ended December 31, 2019 Silvertip recognized inventory write-downs of $ 64.6 million , which is recognized in Costs applicable to sales, as a result of lower than expected production levels, grades and recovery rates as well as reduced process plant availability.

It is possible that additional write-downs will be required as the Company works to optimize operations at Silvertip.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Prior to the temporary suspension of mining activities at Silvertip, as a result of lower than expected production levels, grades and recovery rates as well as reduced process plant availability, Silvertip recognized inventory write-downs of $ 10.4 million, which are reflected in Costs applicable to sales for the year ended December 31, 2020.

Subsequent to the suspension of mining activities, Silvertip has recognized additional supply inventory write-downs of $ 3.3 million, which are reflected in Pre-development, reclamation, and other for the year ended December 31, 2020.

NOTE 7 – INVESTMENTS

Equity and Debt Securities

Equity Securities

The Company makes strategic investments in equity and debt securities of silver and gold exploration, development and royalty and streaming companies.

At December 31, 2020

In thousands Cost Gross

Gains Estimated

Equity Securities

Metalla Royalty & Streaming Ltd.

$ 166 $ — $ 875 $ 1,041

Integra Resources Corp.

Rockhaven Resources Ltd.

7,500 — 4,401 11,901

Other 2 ( 1 ) — 1

Equity securities $ 7,668 $ ( 1 ) $ 5,276 $ 12,943

At December 31, 2019

In thousands Cost Gross

Gains Estimated

Equity Securities

Metalla Royalty & Streaming Ltd.

$ 10,463 $ — $ 17,725 $ 28,188

Integra Resources Corp.

5,000 — 355 5,355

Rockhaven Resources, Ltd.

2,064 ( 376 ) — 1,688

Other 1,304 ( 889 ) — 415

Equity securities $ 18,831 $ ( 1,265 ) $ 18,080 $ 35,646

Debt Securities

Metalla Royalty & Streaming Ltd.

Equity and debt securities

On June 30, 2020, the Company completed the sale of 3,910,000 shares of common stock of Metalla Royalty & Streaming Ltd.

(“Metalla”) (“Metalla Common Shares”) at a price of $ 5.30 per Metalla Common Share for gross proceeds of $ 20.7 million.

After transaction related expenses of $ 1.3 million, the Company recorded a realized gain of $ 11.6 million on the sale of the Metalla Common Shares.

In addition, on June 30, 2020, one of the Company’s subsidiaries completed the repurchase from Metalla of a 0.3875 % royalty interest in the Company’s Wharf mine in exchange for 421,554 Metalla Common Shares.

Based on the closing price of Metalla Common Shares on June 30, 2020, the Company recorded a realized gain of $ 1.4 million on the royalty repurchase transaction.

In December 2020, the Company completed the sale of 826,200 shares of common stock of Metalla at an average price (net of commission) of $11.33 per Metalla Common Share for net proceeds of $9.4 million for a realized gain of $7.7 million.

On September 14, 2020, the Company participated in an offering of shares of common stock of Integra Resources Corp.

(“Integra”) (“Integra Common Shares”), exercising a previously-acquired participation right, and purchased an additional 735,294 Integra Common Shares at a price of $ 3.40 per Integra Common Share for a total of $ 2.5 million.

Following completion of the transaction, Coeur owned approximately 5.6 % of issued and outstanding Integra Common Shares.

In November and December 2020, the Company completed the sale of 15,150,000 shares of common stock of Rockhaven Resources, Ltd.

(“Rockhaven Common Shares”) at an average price (net of commission) of $ 0.08 per Rockhaven Common Share for net proceeds of $ 1.3 million for a realized loss of $ 0.8 million.

The following table presents the disaggregated gain (loss) on equity securities recognized in Income (loss) from continuing operations on the Consolidated Statements of Comprehensive Income:

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

The following table presents the disaggregated gain (loss) on equity securities recognized in Income (loss) from continuing operations on the Consolidated Statements of Comprehensive Income:

Year ended December 31,

In thousands 2020 2019 2018

Net gain (loss) $ 7,601 $ 16,208 $ 2,945

1 unchanged sentence

Unrealized gain (loss) $ ( 11,539 ) $ 15,348 $ ( 5,019 )

The Company performs a quarterly assessment on its debt securities with unrealized losses to determine if the securities are other than temporarily impaired.

At December 31, 2019, the Company had no remaining investments in debt securities.

NOTE 8 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

December 31, 2019

December 31, 2018

In thousands December 31, 2020 December 31, 2019

Land $ 10,584 $ 10,598

Facilities and equipment 659,676 650,769

Assets under capital leases

Assets under finance leases $ 100,530 $ 103,903

770,790 765,270

Accumulated amortization (1)

$ ( 579,644 ) $ ( 537,046 )

191,146 228,224

Construction in progress $ 38,993 20,565

Property, plant and equipment, net 230,139 $ 248,789

(1) Includes $ 42.2 million and $ 44.2 million of accumulated amortization related to assets under capital leases at December 31, 2019 and December 31, 2018, respectively.

(1) Includes $ 60.2 million and $ 42.2 million of accumulated amortization related to assets under finance leases at December 31, 2020 and December 31, 2019, respectively.

NOTE 9 – MINING PROPERTIES

Mining properties consist of the following (in thousands):

December 31, 2019

December 31, 2020 Palmarejo Rochester Silvertip Kensington Wharf Sterling La Preciosa Other Total

Mine development $ 280,184 $ 270,648 $ 48,589 $ 360,201 $ 33,578 $ 4,107 $ — $ — $ 997,307

Accumulated amortization ( 194,898 ) ( 157,526 ) ( 10,747 ) ( 264,014 ) ( 22,547 ) ( 1,099 ) — — ( 650,831 )

85,286 113,122 37,842 96,187 11,031 3,008 — — 346,476

Mineral interests 629,303 18,541 105,736 — 48,062 95,499 49,085 — 946,226

Accumulated amortization ( 518,866 ) — ( 24,828 ) — ( 32,217 ) — — — ( 575,911 )

110,437 18,541 80,908 — 15,845 95,499 49,085 — 370,315

Mining properties, net $ 195,723 $ 131,663 $ 118,750 $ 96,187 $ 26,876 $ 98,507 $ 49,085 $ — $ 716,790

December 31, 2018

December 31, 2019 Palmarejo Rochester Silvertip Kensington Wharf Sterling La Preciosa Other Total

Mine development $ 260,838 $ 220,127 $ 50,146 $ 345,026 $ 34,165 $ 3,651 $ — $ — $ 913,953

Accumulated amortization ( 179,894 ) ( 155,079 ) ( 9,623 ) ( 230,869 ) ( 20,071 ) ( 678 ) — — ( 596,214 )

80,944 65,048 40,523 114,157 14,094 2,973 — — 317,739

Mineral interests 629,303 18,541 105,736 — 45,837 95,499 49,085 5,171 949,172

Accumulated amortization ( 501,039 ) — ( 24,147 ) — ( 29,051 ) — — ( 719 ) ( 554,956 )

128,264 18,541 81,589 — 16,786 95,499 49,085 4,452 394,216

Mining properties, net $ 209,208 $ 83,589 $ 122,112 $ 114,157 $ 30,880 $ 98,472 $ 49,085 $ 4,452 $ 711,955

1 unchanged sentence

and Subsidiaries

Notes to Consolidated Financial Statements

Notes to Condensed Consolidated Financial Statements

NOTE 10 – ACQUISITIONS

9 unchanged sentences

Total assets acquired $ 19,028

In October 2018, the Company completed its acquisition of Northern Empire, whose principal asset is the Sterling/Crown gold project.

In October 2018, the Company completed its acquisition of Northern Empire Resources Corp.

(“Northern Empire”), whose principal asset is the Sterling/Crown gold project.

Upon completion of the acquisition, each share of Northern Empire common stock issued and outstanding immediately prior to the effective time of the Plan of Arrangement, excluding shares owned by the Company, was exchanged for shares of the Company’s common stock at a ratio of 0.1850 shares of Company common stock for each Northern Empire common share.

11 unchanged sentences

Net assets acquired $ 73,593

In October 2017, the Company completed the acquisition of JDS Silver Holdings Ltd.

and its wholly-owned subsidiary JDS Silver Inc.

(together, “JDS Silver”) which, following the closing of the acquisition, were amalgamated with a subsidiary of Coeur to form Coeur Silvertip Holdings Ltd., which owns the underground Silvertip silver-zinc-lead mine in northern British Columbia, Canada.

JDS Silver was purchased for approximately $ 153.2 million in cash and $ 36.0 million in Coeur common stock.

In addition, the Company recorded $ 47.7 million of contingent consideration payable in cash and common stock upon reaching future permitting and resource declaration milestones (see Note 21 -- Commitments and Contingencies), a portion of which was paid in 2019.

The cash consideration was funded with $ 100.0 million of borrowing under the Facility (as defined in Note 12 -- Debt) and cash on hand.

Upon closing, the Company issued approximately 4.2 million Coeur shares to former shareholders of JDS Silver Holdings Ltd.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The transaction was accounted for as a business combination, which requires that assets acquired and liabilities assumed be recognized at their respective fair values at the acquisition date.

The acquisition was not significant to the Company’s results of operations, individually or in the aggregate, because the Silvertip mine was in in pre-production.

As there were no significant differences from the Company’s historical results of operations, no pro forma financial information was provided.

The purchase price allocation is as follows (in thousands):

Common shares issued (4,191,679 at $8.59)

Contingent consideration

Total purchase price (1)

Total assets acquired

Total liabilities assumed

Net assets acquired

(1) Purchase price has been adjusted for restricted cash acquired due to the adoption of ASU 2016-01.

NOTE 11 – LEASES

1 unchanged sentence

The following table summarizes quantitative information pertaining to the Company’s finance and operating leases.

December 31, 2019

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Year ended December 31,

In thousands 2020 2019

Operating lease cost $ 12,036 $ 11,585

5 unchanged sentences

Supplemental cash flow information related to leases was as follows:

December 31, 2019

Year ended December 31,

In thousands 2020 2019

Other Information

3 unchanged sentences

Financing cash flows from finance leases $ 25,984 $ 25,975

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental balance sheet information related to leases was as follows:

December 31, 2019

In thousands December 31, 2020 December 31, 2019

Operating Leases

16 unchanged sentences

Weighted-average discount rate - operating leases 5.18 % 5.20 %

In the quarter ended June 30, 2020, the Company entered into an agreement to modify one of its operating leases, significantly reducing the lease amount and lease term, thereby decreasing the operating lease liability at remeasurement.

The Company recognized a gain of $ 4.1 million in connection with this lease modification, which is recognized in Pre-development, reclamation, and other , together with the adjustment to the right of use asset and operating lease liability.

Minimum future lease payments under finance and operating leases with terms longer than one year are as follows:

At December 31, (In thousands)

Operating leases

Finance leases

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

As of December 31, 2020 (In thousands)

Operating leases Finance leases

2021 $ 12,602 $ 23,958

2022 10,989 18,140

2023 10,407 8,440

2024 8,812 1,699

Thereafter 1,167 —

Total $ 44,190 $ 52,338

imputed interest ( 4,347 ) ( 4,427 )

1 unchanged sentence

NOTE 12 – DEBT

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

In thousands Current Non-Current Current Non-Current

2024 Senior Notes, net (1)

$ — $ 227,590 $ — $ 226,885

Revolving Credit Facility (2)

Finance lease obligations 22,074 25,837 22,746 45,866

$ 22,074 $ 253,427 $ 22,746 $ 272,751

(1) Net of unamortized debt issuance costs of $ 2.4 million and $ 3.1 million at December 31, 2020 and December 31, 2019, respectively.

(2) Unamortized debt issuance costs of $ 1.5 million and $ 2.3 million at December 31, 2020 and December 31, 2019, respectively, included in Other Non-Current Assets .

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

2024 Senior Notes

In May 2017, the Company completed an offering of $ 250.0 million in aggregate principal amount of 5.875% Senior Notes due 2024 (“2024 Senior Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act, for net proceeds of approximately $ 245.0 million , followed by an exchange offer for publicly-traded 2024 Senior Notes.

In May 2017, the Company completed an offering of $ 250.0 million in aggregate principal amount of 5.875 % Senior Notes due 2024 (the “2024 Senior Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $ 245.0 million, followed by an exchange offer for publicly-traded 2024 Senior Notes.

The 2024 Senior Notes are governed by an Indenture dated as of May 31, 2017 (the “Indenture”), among the Company, as issuer, certain of the Company's subsidiaries named therein, as guarantors thereto (the “Guarantors”), and the Bank of New York Mellon, as trustee.

4 unchanged sentences

The 2024 Senior Notes will mature on June 1, 2024 and are fully and unconditionally guaranteed by the Guarantors.

At any time prior to June 1, 2020, the Company may redeem all or part of the 2024 Senior Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) a make-whole premium as of the date of redemption, plus (iii) accrued and unpaid interest and additional interest, if any, thereon, to the date of redemption.

In addition, the Company may redeem some or all of the 2024 Senior Notes on or after June 1, 2020, at redemption prices set forth in the Indenture, together with accrued and unpaid interest.

At any time prior to June 1, 2020, the Company may use the proceeds of certain equity offerings to redeem up to 35% of the aggregate principal amount of the 2024 Senior Notes, including any permitted additional 2024 Senior Notes, at a redemption price equal to 105.875% of the principal amount.

The Company may redeem some or all of the 2024 Senior Notes on or after June 1, 2020, at redemption prices set forth in the Indenture ( 102.938 % of the principal amount as of December 31, 2020), together with accrued and unpaid interest.

The Indenture contains covenants that, among other things, limit the Company’s ability under certain circumstances to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem capital stock, prepay, redeem or repurchase certain debt, make loans and investments, create liens, sell, transfer or otherwise dispose of assets, enter into transactions with affiliates, enter into agreements restricting the Company's subsidiaries' ability to pay dividends and impose conditions on the Company’s ability to engage in mergers, consolidations and sales of all or substantially all of its assets.

2 unchanged sentences

Based on the closing price of the Company’s common stock on the date of each exchange, the exchanges resulted in an aggregate loss of $ 1.3 million.

Revolving Credit Facility

In September 2017, the Company, as borrower, and certain subsidiaries of the Company, as guarantors, entered into the Credit Agreement with respect to the Company’s revolving credit facility (the “Facility”).

The Facility originally had a term of four years.

Loans under the Facility bear interest at a rate equal to either a base rate plus a margin ranging from 1.00% to 1.75% or an adjusted LIBOR rate plus a margin ranging from 2.00% to 2.75%, as selected by the Company, in each case, with such margin determined in accordance with a pricing grid based upon the Company’s consolidated net leverage ratio as of the end of the applicable period.

In October 2018, the Company entered into an amendment to increase the Facility by $50.0 million from $200.0 million to $250.0 million and extend the term by approximately one year to October 2022.

In April and August of 2019, the Company entered into amendments to the Credit Agreement to, among other items, modify the financial covenants to provide greater flexibility in 2019.

The Facility is secured by substantially all of the assets of the Company and its domestic subsidiaries, including the land, mineral rights and infrastructure at the Kensington, Rochester and Wharf mines and Coeur Sterling, as well as a pledge of the shares of certain of the Company’s subsidiaries.

The Credit Agreement contains representations and warranties and affirmative and negative covenants that are usual and customary, including representations, warranties, and covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional debt, incur or permit liens on assets, make investments and acquisitions, consolidate or merge with any other company, engage in asset sales and make dividends and distributions.

The Credit Agreement contains financial covenants consisting of a consolidated net leverage ratio and a consolidated interest coverage ratio.

Obligations under the Credit Agreement may be accelerated upon the occurrence of certain customary events of default.

At December 31, 2019 , the Company had all $ 250.0 million available under the Facility.

At December 31, 2019 , the interest rate on the principal of the Facility was 4.2 % .

Silvertip Debt Obligation

The Company assumed an existing third-party debt obligation as part of the Silvertip acquisition.

In February 2018, the Company voluntarily terminated and repaid the remaining debt obligation of $ 12.6 million .

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

2021 Senior Notes

Concurrent with the offering of the 2024 Senior Notes, the Company commenced a cash tender offer (the “Tender Offer”) to purchase the outstanding $178.0 million in aggregate principal amount of its 7.875% Senior Notes due 2021 (the “2021 Senior Notes”).

The Tender Offer was made on the terms and subject to the conditions set forth in the Offer to Purchase dated May 19, 2017.

Holders of the 2021 Senior Notes who tendered their notes were entitled to receive $1,043.88 per $1,000 principal amount of the Notes, plus accrued and unpaid interest.

$118.1 million aggregate principal amount of the Notes were tendered and purchased by the Company on May 31, 2017.

In accordance with the terms of the indenture governing the 2021 Senior Notes, the remaining $59.9 million aggregate principal amount of the Notes were redeemed on June 30, 2017 at the redemption price of $1,039.38 per $1,000 principal amount, plus accrued and unpaid interest.

The Company recorded a loss of $ 9.3 million as a result of the extinguishment of the 2021 Senior Notes.

Notes to Condensed Consolidated Financial Statements

Revolving Credit Facility

In September 2017, the Company, as borrower, and certain subsidiaries of the Company, as guarantors, entered into the RCF with an original term of four years.

Loans under the RCF bear interest at a rate equal to either a base rate plus a margin ranging from 1.00 % to 1.75 % or an adjusted LIBOR rate plus a margin ranging from 2.00 % to 2.75 %, as selected by the Company, in each case, with such margin determined in accordance with a pricing grid based upon the Company’s consolidated net leverage ratio as of the end of the applicable period.

In October 2018, the Company entered into an amendment to increase the RCF by $ 50.0 million from $ 200.0 million to $ 250.0 million and extend the term by approximately one year to October 2022.

In April and August of 2019, the Company entered into amendments to the Credit Agreement to, among other items, modify the financial covenants to provide greater flexibility in 2019.

On December 14, 2020, the Company entered into an amendment to increase the RCF from $ 250.0 million to $ 300.0 million and to include ING Capital LLC as an incremental lender on the RCF.

The RCF is secured by substantially all of the assets of the Company and its domestic subsidiaries, including the land, mineral rights and infrastructure at the Kensington, Rochester and Wharf mines and the Sterling/Crown project as well as a pledge of the shares and other equity interests of certain of the Company’s subsidiaries.

The RCF contains representations and warranties and affirmative and negative covenants that are usual and customary, including representations, warranties, and covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional debt, incur or permit liens on assets, make investments and acquisitions, consolidate or merge with any other company, engage in asset sales and make dividends and distributions.

The RCF requires the Company to meet certain financial covenants consisting of a consolidated net leverage ratio and a consolidated interest coverage ratio.

Obligations under the RCF may be accelerated upon the occurrence of certain customary events of default.

At December 31, 2020, the Company had no borrowings, and $ 35.0 million in letters of credit outstanding und er the RCF.

At December 31, 2020, the interest rate on the principal of the RCF was 2.4 %.

Finance Lease Obligations

From time-to-time, the Company acquires mining equipment and facilities under finance lease agreements.

In the year ended December 31, 2019, the Company entered into new lease financing arrangements primarily for mining equipment at Silvertip and Rochester.

All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.

See Note 11 -- Leases for additional qualitative and quantitative disclosures relat ed to finance leasing arrangements.

In the year ended December 31, 2020, the Company entered into new lease financing arrangements primarily for mining equipment at Palmarejo, Rochester, Silvertip and Kensington .

All finance lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.

See Note 11 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.

Interest Expense

Year Ended December 31,

2024 Senior Notes

In thousands 2020 2019 2018

2024 Senior Notes $ 13,513 $ 14,586 $ 14,688

6 unchanged sentences

Total interest expense, net of capitalized interest $ 20,708 $ 24,771 $ 24,364

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 13 – RECLAMATION

4 unchanged sentences

Year Ended December 31,

In thousands 2020 2019

Asset retirement obligation - Beginning $ 134,398 $ 133,508

Accretion 11,574 11,968

Additions and changes in estimates ( 6,132 ) ( 7,538 )

Settlements ( 2,720 ) ( 3,540 )

Asset retirement obligation - Ending $ 137,120 $ 134,398

The Company accrued $ 1.9 million and $ 2.0 million at December 31, 2019 and December 31, 2018 , respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company accrued $ 2.2 million and $ 1.9 million at each of December 31, 2020 and December 31, 2019, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 14 – INCOME AND MINING TAXES

1 unchanged sentence

Year ended December 31,

In thousands 2020 2019 2018

United States $ 40,890 $ ( 16,702 ) $ ( 50,522 )

Foreign 21,782 ( 341,323 ) ( 15,213 )

Total $ 62,672 $ ( 358,025 ) $ ( 65,735 )

The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:

Year ended December 31,

In thousands 2020 2019 2018

United States $ 226 $ ( 334 ) $ 1,188

1 unchanged sentence

United States — Foreign withholding tax ( 800 ) ( 1,598 ) ( 5,617 )

Canada 232 119 378

Mexico ( 36,066 ) ( 19,619 ) ( 26,021 )

Other 33 ( 3 ) 67

United States ( 49 ) 236 23,322

United States — State mining taxes ( 354 ) 251 1,134

Canada — 32,084 16,057

Mexico 8,117 3,994 9,929

Other — — ( 449 )

Income tax (expense) benefit $ ( 37,045 ) $ 11,129 $ 16,780

he Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

Year ended December 31,

In thousands 2020 2019 2018

Income and mining tax (expense) benefit at statutory rate $ ( 13,161 ) $ 75,185 $ 14,052

1 unchanged sentence

Change in valuation allowance ( 17,522 ) ( 77,220 ) 2,471

Effect of tax legislation

Percentage depletion 5,056 820 89

5 unchanged sentences

Mining, foreign withholding, and other taxes ( 17,457 ) ( 2,746 ) ( 3,857 )

Other, net 1,923 ( 513 ) 2,968

Income and mining tax (expense) benefit $ ( 37,045 ) $ 11,129 $ 16,780

1 unchanged sentence

Year ended December 31,

In thousands 2020 2019

Deferred tax liabilities:

Mineral properties $ — $ 25,691

Inventory 5 847

Royalty and other long-term debt 1,094 —

Foreign subsidiaries - unremitted earnings 99 50

$ 1,198 $ 26,588

Deferred tax assets:

Net operating loss carryforwards $ 241,985 $ 219,192

Mineral properties 1,907 —

Property, plant, and equipment 10,841 20,212

6 unchanged sentences

Tax credit carryforwards 29,809 29,881

368,326 356,406

Valuation allowance ( 401,304 ) ( 371,277 )

( 32,978 ) ( 14,871 )

Net deferred tax liabilities $ 34,176 $ 41,459

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized.

2 unchanged sentences

There are a number of factors that impact the Company’s ability to realize its deferred tax assets.

For additional information, please see the section titled “Risk Factors” included in Item 1A.

Based upon this analysis, the Company has recorded valuation allowances as follows:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year ended December 31,

In thousands 2020 2019

$ 215,396 $ 213,783

Canada 146,611 118,738

Mexico 15,885 15,884

New Zealand 22,740 21,863

Other 672 1,009

$ 401,304 $ 371,277

The Company has the following tax attribute carryforwards at December 31, 2020, by jurisdiction:

In thousands U.S.

Canada Mexico New Zealand Other Total

Regular net operating losses $ 432,447 $ 304,237 $ 52,951 $ 86,486 $ 1,337 $ 877,458

Expiration years

Expiration years 2021-2038 2029-2039 2021-2030 Indefinite 2021-2022

Capital losses 63,024 — — — — 63,024

Alternative minimum tax credits

Foreign tax credits 24,939 — — — — 24,939

The majority of the U.S.

capital losses will expire from 2020 through 2022.

Alternative minimum tax credits do not expire and foreign tax credits expire if unused beginning in 2020.

capital losses will expire through 2022.

Foreign tax credits expire if unused beginning in 2021.

The utilization of U.S.

12 unchanged sentences

federal taxable income, it may be limited in the ability to (1) recognize current deductions on built-in loss assets and (2) offset this income with our pre-change net operating loss carryforwards and other tax credit carryforwards, which may be subject to limitations, potentially resulting in increased future tax liability to us.

Under the new U.S.

federal income tax law, federal net operating losses incurred in 2019 and in future years may be carried forward indefinitely, but the deductibility of such federal net operating losses is limited to 80% of future taxable income.

Under the Tax Cuts and Jobs Act of 2017 (“TCJA”), federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such federal net operating losses is limited to 80% of future taxable income.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act suspended the 80% limitation on losses incurred in 2018 and in future years, for tax years beginning before January 1, 2021.

The Company does not expect this to impact its net operating loss usage.

The Company intends to indefinitely reinvest earnings from Mexican operations.

24 unchanged sentences

The Company has stock incentive plans for executives and eligible employees.

Stock awards include stock options, restricted stock, and performance shares.

Stock awards include restricted stock, performance shares and stock options.

Stock-based compensation expense for the years ended December 31, 2020, 2019, and 2018 was $ 8.5 million, $ 9.3 million and $ 8.3 million, respectively.

1 unchanged sentence

Restricted Stock

Restricted stock granted under the Company’s incentive plans are accounted for based on the market value of the underlying shares on the date of grant and vest in equal installments annually over three years .

Restricted stock granted under the Company’s incentive plans are accounted for based on the market value of the underlying shares on the date of grant and generally vest in equal installments annually over three years .

Restricted stock awards are accounted for as equity awards.

Holders of restricted stock are entitled to vote the shares and to receive any dividends declared on the shares.

The following table summarizes restricted stock activity for the years ended December 31, 2020, 2019, and 2018:

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

The following table summarizes restricted stock activity for the years ended December 31, 2019, 2018, and 2017:

Restricted Stock

Shares Weighted

Outstanding at December 31, 2017 2,155,845 $ 5.72

Granted 1,000,690 7.63

Vested ( 1,277,076 ) 5.30

Canceled/Forfeited ( 337,811 ) 6.51

Outstanding at December 31, 2018 1,541,648 $ 7.14

Granted 1,586,590 4.90

Vested ( 797,025 ) 6.36

Canceled/Forfeited ( 146,538 ) 5.70

Outstanding at December 31, 2019 2,184,675 $ 5.89

Granted 1,676,634 5.13

Vested ( 928,778 ) 6.46

Canceled/Forfeited ( 207,807 ) 5.36

4 unchanged sentences

Performance shares granted during and subsequent to 2018 will vest at the end of a three-year service period if internal performance metrics are met, with the number of shares vesting impacted by the inclusion of a modifier based upon a relative stockholder return metric.

The relative stockholder return metric is included in the determination of the grant date fair value of the performance shares however the recognition of compensation cost for performance share awards is based on the results of the internal performance metrics.

The relative stockholder return metric is included in the determination of the grant date fair value of the performance shares;

however, the recognition of compensation cost for performance share awards is based on the results of the internal performance metrics.

Outstanding performance shares granted prior to 2018 will vest at the end of a three-year service period if relative stockholder return and internal performance metrics are met.

The existence of a market condition requires recognition of compensation cost for the performance share awards over the requisite period regardless of whether the relative stockholder return metric is met.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes performance shares activity for the years ended December 31, 2020, 2019, and 2018:

Performance Shares

Shares Weighted

Outstanding at December 31, 2017 2,368,281 $ 4.44

Vested ( 1,086,058 ) 6.83

Canceled/Forfeited ( 613,329 ) 5.41

Outstanding at December 31, 2018 1,538,315 $ 4.05

Vested ( 969,903 ) 1.77

Canceled/Forfeited (2)

( 300,267 ) 1.84

Outstanding at December 31, 2019 1,214,145 $ 6.93

1,343,953 3.95

Vested ( 54,132 ) 11.47

Canceled/Forfeited (3)

( 168,864 ) 10.71

Outstanding at December 31, 2020 2,335,102 $ 4.83

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

(1) Includes 461,242 additional shares granted in connection with the vesting of the 2015 award in 2018 due to above-target performance in accordance with the terms of the awards.

(2) Includes 207,264 additional shares granted and 300,267 shares cancelled in connection with the vesting of the 2016 award in 2019 due to above-target and below target performance, respectively, in accordance with the terms of the award.

(3) Includes 6,226 additional shares granted and 143,808 shares cancelled in connection with the vesting of the 2017 award in 2020 due to above-target and below target performance, respectively, in accordance with the terms of the award.

At December 31, 2020, there was $ 4.3 million of unrecognized compensation cost related to performance shares to be recognized over a weighted average period of 1.9 years.

Stock Options and Stock Appreciation Rights

Stock options and stock appreciation rights (SARs) granted under the Company’s incentive plans vest over three years and are exercisable over a period not to exceed ten years from the grant date.

Stock options and stock appreciation rights (SARs) granted under the Company’s incentive plans generally vest over three years and are exercisable over a period not to exceed ten years from the grant date.

The exercise price of stock options is equal to the fair market value of the shares on the date of the grant.

3 unchanged sentences

The following table sets forth the weighted average fair value of stock options and the assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model:

2020 2019 2018

Weighted average fair value of stock options granted $ — $ — $ 4.09

Volatility — — 66.86 %

Expected life in years 0 0 4.00

1 unchanged sentence

Dividend yield — — —

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes stock option and SAR activity for the years ended December 31, 2020, 2019, and 2018:

Stock Options

Stock Options SARs

Shares Weighted

Price Shares Weighted

Outstanding at December 31, 2017 617,446 $ 10.53 42,152 $ 14.14

Granted 14,310 7.91 — —

Exercised ( 159,069 ) 3.35 — —

Canceled/forfeited ( 153,601 ) 11.48 — —

Outstanding at December 31, 2018 319,086 $ 13.53 42,152 $ 14.14

Exercised ( 11,055 ) 5.57 — —

Canceled/forfeited ( 11,519 ) 9.31 — —

Expired ( 4,733 ) 10.00 ( 9,870 ) 10.00

Outstanding at December 31, 2019 291,779 $ 14.05 32,282 $ 15.40

Exercised ( 30,401 ) 5.57 — —

Canceled/forfeited ( 39,105 ) 12.77 — —

Expired — — ( 32,282 ) 15.40

Outstanding at December 31, 2020 222,273 $ 15.44 — —

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes outstanding stock options as of December 31, 2020.

Exercise Price

Weighted Average

Aggregate Intrinsic Value (in thousands)

Exercise Price Number

Outstanding Weighted Average

Price Weighted

Life (Years) Aggregate Intrinsic Value (in thousands)

$ 0.00-$10.00 119,093 $ 7.72 4.6 —

1 unchanged sentence

$20.00-$30.00 88,546 $ 25.68 1.4 —

Outstanding 222,273 $ 15.44 3.1 $ 313,474

Vested and expected to vest 222,210 $ 15.44 3.1 $ 313,319

The total intrinsic value of options exercised for the year ended December 31, 2019 was nil .

Exercisable 217,503 $ 15.60 3 $ 301,835

The total intrinsic value of options exercised for the year ended December 31, 2020 was $ 0.1 million.

Cash received from options exercised for the year ended December 31, 2020 was $ 0.2 million for which there was no related tax benefit.

The grant date fair value for stock options vested during the years ended December 31, 2019, 2018, and 2017 was nil , $ 0.2 million and $ 0.5 million , respectively.

The grant date fair value for stock options vested during the years ended December 31, 2020, 2019, and 2018 was nil , nil and $ 0.2 million, respectively.

NOTE 16 – FAIR VALUE MEASUREMENTS

Year Ended December 31,

In thousands 2020 2019 2018

Unrealized gain (loss) on equity securities $ ( 11,539 ) $ 15,348 $ ( 5,019 )

Realized gain (loss) on equity securities 19,140 860 7,964

Zinc options — — 753

Interest rate swap, net — ( 178 ) ( 60 )

2 unchanged sentences

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3).

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.

1 unchanged sentence

Fair Value at December 31, 2020

In thousands Total Level 1 Level 2 Level 3

Equity securities $ 12,943 $ 12,943 $ — $ —

Other derivative instruments, net

Silvertip contingent consideration

Other derivative instruments, net

Foreign currency forward exchange contracts

13,747 — 13,747 —

Provisional metal sales contracts 481 — 481 —

$ 27,171 $ 12,943 $ 14,228 $ —

Gold zero cost collars

$ 24,883 $ — $ 24,883 $ —

Provisional metal sales contracts 67 — 67 —

$ 24,950 $ — $ 24,950 $ —

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value at December 31, 2019

In thousands Total Level 1 Level 2 Level 3

Equity and debt securities $ 35,646 $ 35,646 $ — $ —

Other derivative instruments, net

Provisional metal sales contracts 753 — 753 —

$ 36,399 $ 35,646 $ 753 $ —

Silvertip contingent consideration $ 25,000 $ — $ — $ 25,000

Other derivative instruments, net

Provisional metal sales contracts 275 — 275 —

Gold zero cost collars

$ 25,411 $ — $ 411 $ 25,000

The Company’s investments in equity securities are recorded at fair market value in the financial statements based primarily on quoted market prices.

Such instruments are classified within Level 1 of the fair value hierarchy.

Quoted market prices are not available for certain debt securities;

these securities are valued using pricing models, which require the use of observable and unobservable inputs, and are classified within Level 3 of the fair value hierarchy.

The Company’s other derivative instruments, net, include concentrate and certain doré sales contracts, gold and zinc hedges, and an interest rate swap which are valued using pricing models with inputs derived from observable market data, including contractual terms, forward market prices, yield curves, credit spreads, and other unobservable inputs.

The Company’s foreign currency forward exchange contracts are valued using pricing models with inputs derived from observable market data, including forward market prices and other unobservable inputs.

The Company’s gold zero cost collars are valued using pricing models with inputs derived from observable market data, including forward market prices, yield curves, credit spreads.

The Company’s provisional metal sales contracts include concentrate and certain doré sales contracts that are valued using pricing models with inputs derived from observable market data, including forward market prices.

The model inputs can generally be verified and do not involve significant management judgment.

Such instruments are classified within Level 2 of the fair value hierarchy.

In July 2017, the Company sold the Endeavor Silver Stream and remaining non-core royalties to Metalla Royalty & Streaming Ltd.

(“Metalla”) for total consideration of $ 13.0 million , including a $ 6.7 million convertible debenture.

The convertible debenture bears interest at a rate of 5% payable semi-annually, and is convertible into Metalla shares in connection with future equity financings or asset acquisitions by Metalla at the then-current price to maintain the Company’s approximate 19.9% ownership of Metalla.

During 2018, Metalla completed a number of equity-based transactions, triggering the top-up clause in the convertible debenture, resulting in the conversion of $4.4 million of debt into 7.4 million shares of Metalla common stock during 2018.

The fair value of the convertible debenture is estimated based on observable and unobservable data including yield curves and credit spreads.

Therefore, the Company classifies the convertible debenture in Level 3 of the fair value hierarchy.

The convertible debenture was due to mature in June 30, 2027 , however, through a combination of principal repayments and conversions into Metalla shares, the convertible debenture was extinguished in February 2019.

In October 2017, the Company acquired the Silvertip mine from shareholders of JDS Silver Holdings Ltd (the “Silvertip Acquisition”).

The consideration for the Silvertip Acquisition includes two $ 25.0 million contingent payments, which were payable in cash and common stock upon reaching a future permitting milestone and resource declaration milestone, respectively.

The fair value of the Silvertip contingent consideration is estimated based on an estimated discount rate of 2.5 % for the contingent permitting payment and 2.9 % for the contingent resource declaration payment and is classified within Level 3 of the fair value hierarchy.

During 2019, the Company paid the $25.0 million due for the permitting milestone in the form of cash and common stock and, subsequent to the end of the period covered by this Report, the Company paid the $25.0 million due for the resource declaration milestone in the form of cash and common stock.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The consideration for the Silvertip Acquisition included two $ 25.0 million contingent payments, which were payable in cash and common stock upon reaching a future permitting milestone and resource declaration milestone, respectively.

The fair value of the Silvertip contingent consideration was estimated based on an estimated discount rate of 2.5 % for the contingent permitting payment and 2.9 % for the contingent resource declaration payment and was classified within Level 3 of the fair value hierarchy.

During 2019, the Company paid the $ 25.0 million due for the permitting milestone in the form of cash and common stock, and in the first quarter of 2020, the Company paid the remaining $ 25.0 million due for the resource declaration milestone in the form of cash and common stock.

No assets or liabilities were transferred between fair value levels in the year ended December 31, 2020.

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the year ended December 31, 2019 and 2018:

Year Ended December 31, 2019

Balance at the beginning of the period

Balance at the

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the year ended December 31, 2020 and 2019:

December 31, 2020

In thousands Balance at the beginning of the period Revaluation Settlements Accretion Balance at the

Silvertip contingent consideration $ 25,000 $ — $ ( 25,000 ) $ — $ —

Year Ended December 31, 2018

Balance at the beginning of the period

Balance at the

Equity and debt securities

December 31, 2019

In thousands Balance at the beginning of the period Revaluation Settlements Accretion Balance at the

Silvertip contingent consideration $ 49,276 $ — $ ( 25,000 ) $ 724 $ 25,000

During the fourth quarter of 2019, Coeur recorded an impairment of long-lived assets totaling $250.8 million .

The fair values of long-lived assets were estimated using a discounted cash flow approach derived from live-of-mine plans which were developed using long-term pricing reflective of the current price environment and management’s projections for operating costs.

The discounted cash flow model used significant unobservable inputs and is therefore classified within Level 3 for the fair value hierarchy.

See Note 4 -- Impairment of Long-lived Assets for additional detail regarding the impairment.

The following table sets forth the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company's non-recurring Level 3 fair value measurements:

Valuation technique

Unobservable input

Range / Weighted Average

Property, plant, and equipment, Mining properties and Right of Use Assets

Discounted cash flow

Discount rate

Long-term silver price per Oz

Long-term zinc price per pound

Long-term lead price per pound

The fair value of financial assets and liabilities carried at book value in the financial statements at December 31, 2020 and December 31, 2019 is presented in the following table:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2020

In thousands Book Value Fair Value Level 1 Level 2 Level 3

2024 Senior Notes (1)

$ 227,590 $ 229,874 $ — $ 229,874 $ —

Revolving Credit Facility (2)

$ — $ — $ — $ — $ —

(1) Net of unamortized debt issuance costs of $ 2.4 million.

(2) Unamortized debt issuance costs of $ 1.5 million included in Other Non-Current Assets .

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2019

Manquiri Notes Receivable

In thousands Book Value Fair Value Level 1 Level 2 Level 3

2024 Senior Notes (1)

$ 226,885 $ 228,585 $ — $ 228,585 $ —

Revolving Credit Facility (2)

$ — $ — $ — $ — $ —

(1) Net of unamortized debt issuance costs of $ 3.1 million.

(2) Unamortized debt issuance costs of $ 2.3 million included in Other Non-Current Assets .

The fair value of the Manquiri Notes Receivable (as defined in Note 22 -- Discontinued Operations) is estimated based on observable and unobservable data including yield curves and credit spreads, therefore, the Company classifies the Manquiri Notes Receivable in Level 3 of the fair value hierarchy;

see Note 22 -- Discontinued Operations for additional detail.

The fair value of the 2024 Senior Notes was estimated using quoted market prices.

The fair value of the Revolving Credit Facility approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

NOTE 17 – DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES

The Company is exposed to various market risks, including the effect of changes in metal prices, foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business.

The Company does not hold or issue derivatives for trading or speculative purposes.

8 unchanged sentences

The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.

Interest Rate Swap

The Company enters into interest rate swap contracts in which it receives variable-rate interest and pays fixed-rate interest.

The Company uses these instruments to manage its exposure to changes in interest rates related to the Facility (see Note 12-- Debt) and does not designate the instruments as hedges from an accounting standpoint and does not apply hedge accounting.

The notional amount is used to measure interest to be paid or received.

During the second quarter of 2019, an interest rate swap derivative instrument, with a notional amount of $ 50.0 million , expired and was replaced with an instrument with a notional amount of $ 75.0 million , which became effective in June 2019, covered a contractual term of six months and net settled monthly.

The Company had no outstanding interest rate swap contracts at December 31, 2019 .

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

At December 31, 2020, the Company had the following derivative instruments that settle as follows:

In thousands except average prices and notional ounces

Provisional silver sales contracts

Average silver price per ounce

Notional ounces

In thousands except average prices and notional ounces 2021 2022 and Thereafter

Provisional gold sales contracts $ 28,243 $ —

1 unchanged sentence

Notional ounces 15,248 —

Provisional zinc sales contracts

Average zinc price per pound

Notional pounds

Provisional lead sales contracts

Average lead price per pound

Notional pounds

The following summarizes the classification of the fair value of the derivative instruments:

December 31, 2020

Prepaid expenses and other

Accrued liabilities and other

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 481 $ 67

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2019

Prepaid expenses and other

Accrued liabilities and other

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 753 $ 275

Interest rate swaps

The following represent mark-to-market gains (losses) on derivative instruments for the years ended December 31, 2019, 2018 and 2017 and 2018, respectively (in thousands):

The following represent mark-to-market gains (losses) on derivative instruments in the year ended December 31, 2020 and 2019, respectively (in thousands):

Year Ended December 31,

Financial statement line

Provisional metal sales contracts

Fair value adjustments, net

Interest rate swaps

Financial statement line Derivative 2020 2019 2018

Revenue Provisional metal sales contracts $ 959 $ 337 $ 111

Fair value adjustments, net Zinc options — — 753

Fair value adjustments, net Interest rate swaps — ( 178 ) ( 60 )

$ 959 $ 159 $ 804

Derivatives Designated as Cash Flow Hedging Strategies

To protect the Company’s exposure to fluctuations in metal prices, in the third quarter of 2019, the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements on a volume of 21,000 ounces of gold per month for the last 4 months of 2019 and 12,000 ounces of gold per month for the first 8 months of 2020.

To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements.

The contracts are net cash settled monthly and, if the price of gold at the time of expiration is between the put and call prices, would expire at no cost to the Company.

If the price of gold at the time of expiration is lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively.

The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

To protect the Company’s exposure to fluctuations in foreign currency exchange rates for subsidiaries whose functional currency is U.S dollar and are exposed to forecasted transaction denominated in the Mexican Peso and the Canadian Dollar, in March 2020, the Company entered into foreign currency forward exchange contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.

The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

At December 31, 2020, the Company had the following derivative cash flow hedge instruments that settle as follows:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

In thousands except average prices and notional ounces

In thousands except average prices and notional ounces 2021 2022 and Thereafter

Gold put options

4 unchanged sentences

Notional ounces 158,700 126,000

Foreign currency forward exchange contracts - Mexican Peso

Average Mexican Peso exchange rate $ 24.99 $ —

Notional US dollar 60,000 —

The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) until the hedged item is recognized in earnings.

Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of net sales in the same period as the related revenue is recognized.

For options designated as cash flow hedges, the total change in cash flows value will be considered when assessing of hedge effectiveness.

The Company has performed an assessment and determined that the terminal value of the hedging instrument and the forecasted transaction match and has qualitatively concluded that changes in the cash flows attributable to the variability of the total sales price of gold are expected to completely offset and the hedging relationship is considered perfectly effective.

Future assessments are performed to verify that critical terms of the hedging instrument and the forecasted transaction continue to match, and the forecasted transactions remain probable, as well as an assessment of any adverse developments regarding the risk of the counterparties defaulting on their commitments.

There have been no such changes in critical terms or adverse developments and the Company has concluded that there is no ineffectiveness to be recorded.

Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period.

Deferred gains and losses in AOCI associated with such derivative instruments would be reclassified into fair value adjustments, net in the period of de-designation.

Any subsequent changes in fair value of such derivative instruments would be reflected in fair value adjustments, net unless they are re-designated as hedges of other transactions.

As of December 31, 2019, the Company had $ 0.5 million of after-tax gains in AOCI related to gains from commodity cash flow hedge transactions.

The Company does not expect to recognize any of these after-tax gains in its consolidated statement of comprehensive income during the next 12 months.

Actual amounts ultimately reclassified to net income are dependent on the price of gold in effect when derivative contracts currently outstanding mature.

Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of Revenue in the same period as the related sale is recognized.

At inception, the Company performed an assessment of the forecasted transactions and the hedging instruments and determined that the hedging relationships are considered perfectly effective.

Future assessments are performed to verify that critical terms of the hedging instruments and the forecasted transactions continue to match, and the forecasted transactions remain probable, as well as an assessment of any adverse developments regarding the risk of the counterparties defaulting on their commitments.

There have been no such changes in critical terms or adverse developments.

As of December 31, 2020, the Company had $ 11.1 million of net after-tax loss in AOCI related to losses from cash flow hedge transactions, of which $ 1.2 million of net after-tax losses is expected to be recognized in its Consolidated Statement

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

of Comprehensive Income (Loss) during the next 12 months.

Actual amounts ultimately reclassified to net income are dependent on the price of gold for metal contracts and the Canadian and Mexican exchange rates for foreign currency contracts.

The following summarizes the classification of the fair value of the derivative instruments designated as cash flow hedges:

December 31, 2020

Prepaid expenses and other

Accrued liabilities and other

In thousands Prepaid expenses and other Accrued liabilities and other

Gold zero cost collars $ — $ 24,883

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the consolidated statement of comprehensive income for the years ended December 31, 2019 and 2018.

Foreign currency forward exchange contracts 13,747 —

$ 13,747 $ 24,883

December 31, 2019

Amount of Gain (Loss) Recognized in Other Comprehensive Income

In thousands Prepaid expenses and other Accrued liabilities and other

Gold zero cost collars $ — $ 136

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in Accumulated Other Comprehensive Income (“AOCI”) and the Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2020 and 2019, respectively (in thousands).

Year Ended December 31,

2020 2019 2018

Amount of Gain (Loss) Recognized in AOCI

Gold zero cost collars $ ( 32,345 ) $ ( 136 ) $ —

Foreign currency forward exchange contracts 19,911 — —

$ ( 12,434 ) $ ( 136 ) $ —

Amount of (Gain) Loss Reclassified From AOCI to Earnings

December 31, 2019

Derivative contracts designated as cash flow hedges

Gold zero cost collars $ 7,598 $ — $ —

Foreign currency forward exchange contracts ( 6,164 ) — —

$ 1,434 $ — $ —

On August 10, 2020, in order to obtain more working capital flexibility, the Company novated certain of its gold zero cost collar option contracts to a different counterparty and modified the related credit support requirements.

The novation did not result in any changes to the critical terms of the applicable option contracts, nor was there a change in creditworthiness in relation to the new counterparty.

To execute the novation, the Company was required to make an upfront payment of $ 3.8 million, as a funding cost for more favorable credit and margin requirements.

The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices.

4 unchanged sentences

Notes to Consolidated Financial Statements

NOTE 18 - OTHER, NET

NOTE 18 – ADDITIONAL COMPREHENSIVE INCOME (LOSS) DETAIL

Pre-development, reclamation, and other consists of the following:

Year Ended December 31,

In thousands 2020 2019 2018

COVID-19 $ 15,414 $ — $ —

Silvertip ongoing carrying costs 17,082 — —

Silvertip temporary suspension costs 10,501 — —

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

Asset retirement accretion 11,754 12,154 11,116

Other 4,954 6,267 8,927

Pre-development, reclamation and other $ 55,654 $ 18,421 $ 20,043

Other, net consists of the following:

Year Ended December 31,

In thousands 2020 2019 2018

Foreign exchange gain (loss) $ ( 2,245 ) $ ( 4,346 ) $ ( 9,069 )

Interest income on notes receivable

Gain (loss) on sale of assets and investments

Write-down of Manquiri consideration

Gain (loss) on sale of assets ( 2,849 ) ( 714 ) 19

Gold zero cost collars novation fee ( 3,819 ) — —

Gain (loss) on sale of Manquiri NSR consideration (1)

365 133 ( 18,599 )

RMC receivable write-down — ( 1,040 ) ( 6,536 )

Mexico inflation adjustment — — 1,939

Gain on sale of the Joaquin project

Gain on repurchase of the Rochester royalty obligation

Gain on sale of Endeavor stream and other royalties

Impairment of Equity Securities

In 2019, the Company recorded a write-down of $ 1.0 million relating to the RMC bankruptcy.

See Note 5 -- Receivables for additional detail.

Gain (loss) on Silvertip contingent consideration 955 — —

Interest income on notes receivable — 198 1,776

Other 1,652 2,576 5,765

Other, net $ ( 5,941 ) $ ( 3,193 ) $ ( 24,705 )

(1) As defined in Note 22 -- Discontinued Operations.

NOTE 19 – NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of the Company’s common stock outstanding during the period.

Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.

8 unchanged sentences

Income (loss) from discontinued operations — 5,693 550

$ 25,627 $ ( 341,203 ) $ ( 48,405 )

Weighted average shares:

Basic 240,803 218,812 188,606

Effect of stock-based compensation plans 1,746 — —

Diluted 242,549 218,812 188,606

Basic income (loss) per share:

1 unchanged sentence

Income (loss) from discontinued operations — 0.03 —

$ 0.11 $ ( 1.56 ) $ ( 0.26 )

Diluted income (loss) per share:

1 unchanged sentence

Income (loss) from discontinued operations — 0.03 —

$ 0.11 $ ( 1.56 ) $ ( 0.26 )

(1) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.

In June 2019, the Company completed a $ 50.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “First Offering”).

The First Offering was conducted pursuant to an Equity Distribution Agreement, entered into in May 2019 between the Company and Citigroup Global Markets Inc.

as the sales agent.

The Company sold a total of 16,630,444 shares of its common stock at an average price of $ 3.00 per share, raising net proceeds (after sales commissions) of $ 48.9 million in the First Offering.

Proceeds from the First Offering were used to repay outstanding amounts under the Facility.

In September 2019, the Company completed a $ 75.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “Second Offering” and, together with the First Offering, referred to herein as the “Offerings”).

The Second Offering was conducted pursuant to an Equity Distribution Agreement, entered into in August 2019 between the Company and Citigroup Global Markets Inc.

and BMO Capital Markets Corp.

as the sales agent.

The Company sold a total of 14,219,677 shares of its common stock at an average price of $ 5.27 per share, raising net proceeds (after sales commissions) of $ 73.8 million in the Second Offering.

Proceeds from the Offering were used to repay the Facility and for general working capital purposes.

Subsequent to the end of the period covered by this Report, the Company issued 0.9 million shares of common stock to satisfy the Resource contingent consideration (as defined below).

See Note 21 -- Commitments and Contingencies for additional detail.

On April 23, 2020 the Company entered into an ATM Equity Offering Sales Agreement (the “Sales Agreement”) with BofA Securities, Inc.

and RBC Capital Markets, LLC as sales agents (the “Sales Agents”) and filed a prospectus supplement for the sale of its common stock, par value $0.01 per share, by way of an “at the market” offering having an aggregate offering price of up to $ 100,000,000 (the “ATM Program”).

Sales under the ATM Program, if any, will be made pursuant to the terms of the Sales Agreement.

At December 31, 2020, the Company had not sold any shares of its common stock under the ATM Program.

NOTE 20 - SUPPLEMENTAL GUARANTOR INFORMATION

11 unchanged sentences

DECEMBER 31, 2020

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CURRENT ASSETS

Cash and cash equivalents $ 12,727 $ 28,515 $ 51,552 $ — $ 92,794

Receivables 381 3,631 19,472 — 23,484

Ore on leach pads — 74,866 — — 74,866

Inventory — 27,223 23,987 — 51,210

Prepaid expenses and other 20,872 1,375 5,007 — 27,254

33,980 135,610 100,018 — 269,608

NON-CURRENT ASSETS

4 unchanged sentences

Equity and debt securities 12,943 — — — 12,943

Receivables — — 26,447 — 26,447

Net investment in subsidiaries 514,705 72,785 ( 72,190 ) ( 515,300 ) —

Other 198,587 51,528 1,957 ( 195,477 ) 56,595

TOTAL ASSETS $ 763,643 $ 844,550 $ 506,561 $ ( 710,777 ) $ 1,403,977

LIABILITIES AND STOCKHOLDERS’ EQUITY

2 unchanged sentences

Other accrued liabilities 36,183 46,023 36,952 — 119,158

Debt — 14,506 7,568 — 22,074

Reclamation — 1,584 715 — 2,299

38,161 114,290 81,657 — 234,108

NON-CURRENT LIABILITIES

Debt 227,592 33,321 187,991 ( 195,477 ) 253,427

Reclamation — 93,349 43,626 — 136,975

Deferred tax liabilities 100 8,457 25,645 — 34,202

1 unchanged sentence

Intercompany payable (receivable) ( 199,318 ) 176,914 22,404 — —

32,003 341,957 297,907 ( 195,477 ) 476,390

STOCKHOLDERS’ EQUITY

Common stock 2,438 20,401 214,816 ( 235,217 ) 2,438

Additional paid-in capital 3,610,297 340,700 2,073,745 ( 2,414,445 ) 3,610,297

1 unchanged sentence

Accumulated other comprehensive income (loss) ( 11,136 ) — — — ( 11,136 )

693,479 388,303 126,997 ( 515,300 ) 693,479

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 763,643 $ 844,550 $ 506,561 $ ( 710,777 ) $ 1,403,977

4 unchanged sentences

DECEMBER 31, 2019

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CURRENT ASSETS

Cash and cash equivalents $ 2,985 $ 27,217 $ 25,443 $ — $ 55,645

Receivables ( 65 ) 5,978 12,753 — 18,666

Ore on leach pads — 66,192 — — 66,192

Inventory — 24,763 31,123 — 55,886

Prepaid expenses and other 6,202 1,192 6,653 — 14,047

9,122 125,342 75,972 — 210,436

NON-CURRENT ASSETS

4 unchanged sentences

Equity and debt securities 35,646 — — — 35,646

Receivables — — 28,709 — 28,709

Net investment in subsidiaries 325,723 85,755 ( 85,740 ) ( 325,738 ) —

Other 267,281 52,040 20,937 ( 277,448 ) 62,810

TOTAL ASSETS $ 646,064 $ 829,726 $ 506,032 $ ( 603,186 ) $ 1,378,636

LIABILITIES AND STOCKHOLDERS’ EQUITY

2 unchanged sentences

Other accrued liabilities 9,036 35,547 51,033 — 95,616

Debt — 15,347 7,399 — 22,746

Reclamation — 1,628 1,486 — 3,114

10,313 78,733 101,606 — 190,652

NON-CURRENT LIABILITIES

Debt 226,885 32,989 290,325 ( 277,448 ) 272,751

Reclamation — 91,524 41,893 — 133,417

Deferred tax liabilities 50 8,104 33,822 — 41,976

1 unchanged sentence

Intercompany payable (receivable) ( 262,413 ) 246,186 16,227 — —

( 31,253 ) 418,815 410,866 ( 277,448 ) 520,980

STOCKHOLDERS’ EQUITY

Common stock 2,415 20,309 215,792 ( 236,101 ) 2,415

Additional paid-in capital 3,598,472 337,975 1,960,187 ( 2,298,162 ) 3,598,472

1 unchanged sentence

Accumulated other comprehensive income (loss) ( 136 ) — — — ( 136 )

667,004 332,178 ( 6,440 ) ( 325,738 ) 667,004

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 646,064 $ 829,726 $ 506,032 $ ( 603,186 ) $ 1,378,636

4 unchanged sentences

YEAR ENDED DECEMBER 31, 2020

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Revenue $ — $ 496,996 $ 288,465 $ — $ 785,461

COSTS AND EXPENSES

Costs applicable to sales (1)

— 297,473 142,862 — 440,335

Amortization 742 76,830 53,815 — 131,387

General and administrative 33,699 3 20 — 33,722

Impairment of long-lived assets

Exploration 1,344 22,113 19,186 — 42,643

Pre-development, reclamation, and other 2,001 19,442 34,211 — 55,654

1 unchanged sentence

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishment

Fair value adjustments, net 7,601 — — — 7,601

Other, net 12,341 ( 2,860 ) ( 1,069 ) ( 14,353 ) ( 5,941 )

Interest expense, net of capitalized interest ( 16,796 ) ( 3,150 ) ( 15,115 ) 14,353 ( 20,708 )

6 unchanged sentences

NET INCOME (LOSS) $ 25,627 $ 53,431 $ 6,882 $ ( 60,313 ) $ 25,627

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Unrealized gain (loss) on debt and equity securities

Unrealized gain (loss) on cash flow hedges

OTHER COMPREHENSIVE INCOME (LOSS):

Change in fair value of derivative contracts designated as cash flow hedges, net of tax ( 12,434 ) — — — ( 12,434 )

Reclassification adjustments for realized (gain) loss on cash flow hedges 1,434 — — — 1,434

Other comprehensive income (loss) ( 11,000 ) — — — ( 11,000 )

COMPREHENSIVE INCOME (LOSS) $ 14,627 $ 53,431 $ 6,882 $ ( 60,313 ) $ 14,627

4 unchanged sentences

YEAR ENDED DECEMBER 31, 2019

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Revenue $ — $ 414,548 $ 296,954 $ — $ 711,502

COSTS AND EXPENSES

Costs applicable to sales (1)

— 300,496 250,685 — 551,181

Amortization 876 81,759 96,241 — 178,876

General and administrative 31,913 808 1,772 — 34,493

Exploration 1,492 12,220 8,815 — 22,527

Impairment of long-lived assets — — 250,814 — 250,814

Pre-development, reclamation, and other 346 11,204 6,871 — 18,421

1 unchanged sentence

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishment ( 1,281 ) — — — ( 1,281 )

Fair value adjustments, net 16,039 ( 9 ) — — 16,030

Other, net 18,993 ( 1,106 ) ( 3,941 ) ( 17,139 ) ( 3,193 )

Interest expense, net of capitalized interest ( 20,774 ) ( 2,591 ) ( 18,545 ) 17,139 ( 24,771 )

7 unchanged sentences

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Unrealized gain (loss) on debt securities, net of tax

Unrealized gain (loss) on debt and equity securities 59 — — — 59

Change in fair value of derivative contracts designated as cash flow hedges, net of tax ( 136 ) — — — ( 136 )

Other comprehensive income (loss) ( 77 ) — — — ( 77 )

COMPREHENSIVE INCOME (LOSS) $ ( 341,280 ) $ ( 9,495 ) $ ( 314,573 ) $ 324,068 $ ( 341,280 )

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

YEAR ENDED DECEMBER 31, 2018

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Revenue $ — $ 371,248 $ 254,656 $ — $ 625,904

COSTS AND EXPENSES

Costs applicable to sales (1)

— 285,242 155,708 — 440,950

Amortization 940 61,489 66,044 — 128,473

General and administrative 30,868 398 79 — 31,345

Exploration 1,496 9,294 14,607 — 25,397

Pre-development, reclamation, and other 1,246 11,351 7,446 — 20,043

1 unchanged sentence

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishments

Fair value adjustments, net 4,056 ( 418 ) — 3,638

Other, net ( 403 ) 617 ( 9,462 ) ( 15,457 ) ( 24,705 )

Interest expense, net of capitalized interest ( 21,563 ) ( 1,479 ) ( 16,779 ) 15,457 ( 24,364 )

8 unchanged sentences

Unrealized gain (loss) on debt securities, net of tax 26 — — — 26

Reclassification adjustments for impairment of equity securities, net of tax

Reclassification adjustments for realized gain (loss) on sale of equity securities, net of tax

Other comprehensive income (loss) 26 — — — 26

5 unchanged sentences

YEAR ENDED DECEMBER 31, 2020

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash provided by (used in) activities of operations $ 16,926 $ 135,576 $ 56,520 $ ( 60,313 ) $ 148,709

Cash provided by (used in) activities of discontinued operations — — — —

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 16,926 $ 135,576 $ 56,520 $ ( 60,313 ) $ 148,709

4 unchanged sentences

Sales of investments 30,831 — — — 30,831

Proceeds from notes receivable

Other — — ( 252 ) — ( 252 )

Investments in consolidated subsidiaries ( 60,888 ) ( 38 ) 613 60,313 —

Cash provided by (used in) activities of continuing operations ( 28,374 ) ( 59,552 ) ( 38,058 ) 60,313 ( 65,671 )

Cash provided by (used in) activities of discontinued operations — — — — —

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ( 28,374 ) ( 59,552 ) ( 38,058 ) 60,313 ( 65,671 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock

Issuance of notes and bank borrowings, net of issuance costs 150,000 — — — 150,000

Payments on debt, capital leases, and associated costs

Payments on debt, finance leases, and associated costs ( 150,000 ) ( 15,621 ) ( 10,363 ) — ( 175,984 )

Silvertip contingent consideration — — ( 18,750 ) — ( 18,750 )

Net intercompany financing activity 22,988 ( 59,103 ) 36,115 — —

Other ( 1,801 ) — — — ( 1,801 )

Cash provided by (used in) activities of operations 21,187 ( 74,724 ) 7,002 — ( 46,535 )

Cash provided by (used in) activities of discontinued operations — — — — —

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 21,187 ( 74,724 ) 7,002 — ( 46,535 )

Effect of exchange rate changes on cash and cash equivalents 8 2 639 — 649

Less net cash provided by (used in) discontinued operations — — — — —

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 9,747 1,302 26,103 — 37,152

6 unchanged sentences

YEAR ENDED DECEMBER 31, 2019

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:

7 unchanged sentences

Sales of investments 2,109 — — — 2,109

Acquisitions, net of cash acquired

Proceeds from notes receivable 7,168 — — — 7,168

Other 2,051 32 ( 164 ) — 1,919

Investments in consolidated subsidiaries 323,561 180 327 ( 324,068 ) —

3 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock 123,059 — — — 123,059

Issuance of notes and bank borrowings, net of issuance costs 60,000 — — — 60,000

Payments on debt, capital leases, and associated costs

Payments on debt, finance leases, and associated costs ( 195,878 ) ( 17,364 ) ( 8,612 ) — ( 221,854 )

Silvertip contingent consideration — — ( 18,697 ) — ( 18,697 )

Net intercompany financing activity 55,611 ( 59,068 ) 3,457 — —

Other ( 3,404 ) — — — ( 3,404 )

Cash provided by (used in) activities of continuing operations 39,388 ( 76,432 ) ( 23,852 ) — ( 60,896 )

11 unchanged sentences

YEAR ENDED DECEMBER 31, 2018

Coeur Mining, Inc.

Guarantor Subsidiaries

Non-Guarantor Subsidiaries

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:

8 unchanged sentences

Acquisitions, net of cash acquired — — 6,914 — 6,914

Proceeds from notes receivable 19,000 — — — 19,000

Other 46 217 ( 252 ) — 11

Investments in consolidated subsidiaries ( 6,288 ) 159 3,218 2,911 —

3 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of notes and bank borrowings

Payments on debt, capital leases, and associated costs

Issuance of notes and bank borrowings, net of issuance costs 95,000 — — — 95,000

Payments on debt, finance leases, and associated costs ( 60,826 ) ( 12,239 ) ( 21,994 ) — ( 95,059 )

Net intercompany financing activity ( 50,640 ) ( 13,906 ) 64,546 — —

Other ( 5,160 ) — — — ( 5,160 )

Cash provided by (used in) activities of continuing operations ( 21,626 ) ( 26,145 ) 42,552 — ( 5,219 )

3 unchanged sentences

Less net cash provided by (used in) discontinued operations — — ( 32,930 ) — ( 32,930 )

NET CHANGE IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 43,285 ) ( 26,699 ) ( 15,349 ) — ( 85,333 )

Cash, cash equivalents and restricted cash at beginning of period 56,033 52,239 95,130 — 203,402

Cash, cash equivalents and restricted cash at end of period $ 12,748 $ 25,540 $ 79,781 $ — $ 118,069

Coeur Mining, Inc.

2 unchanged sentences

NOTE 21 – COMMITMENTS AND CONTINGENCIES

Mexico VAT Litigation

Included in non-current receivables as of December 31, 2020 are $ 26.4 million due from the Mexican government associated with VAT that was paid under Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016.

Under the royalty agreement, Coeur applied for and initially received VAT refunds associated with the royalty payments in the normal course;

however, in 2011 the Mexican tax authorities began denying the Company’s VAT refunds based on the argument that VAT was not legally due on the royalty payments.

Accordingly, Coeur began to request refunds of the VAT as undue payments, which the Mexican tax authorities also denied.

The Company has since been engaged in ongoing efforts to recover the VAT from the Mexican government (including through litigation and potential arbitration).

Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation continues, some of which was determined unfavorably to the Company in 2019 and 2020 based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are erroneous and which are now under appeal.

While the Company believes that it remains legally entitled to be refunded the full amount of the VAT receivable, the Company may continue to experience delays or obstacles in the recovery of VAT and it is possible that some or all of the VAT receivable may not ultimately be recovered as outcomes in Mexican tax courts and the process for recovering funds even if there is a successful outcome in litigation can be unpredictable.

The continued failure to recover the VAT receivable may result in the Company recording a reserve against some or all of this amount, which, if material, may have a material adverse impact on the Company’s financial statements.

Palmarejo Gold Stream

5 unchanged sentences

Kensington Prepayment

In June 2019, Coeur entered into a transaction with an existing metal sales counterparty whereby it amended its existing sales and purchase contract for gold concentrate from its Kensington mine (the “Amended Sales Contract”) to allow for a $ 25.0 million prepayment for deliveries of gold concentrate from the Kensington mine.

The Amended Sales Contract also includes an option to allow for an additional $15.0 million prepayment for deliveries of gold concentrate, which Coeur exercised in December 2019.

In 2019, the Kensington mine delivered approximately $ 25.0 million of gold concentrate to the counterparty.

The remaining deliveries of $ 15.0 million are recognized as a deferred revenue liability and are presented in Accrued liabilities and other on the Consolidated Balance Sheet.

Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the full value of the accrued liability by the June 2020.

The Amended Sales Contract also included an option for an additional $ 15.0 million prepayment for deliveries of gold concentrate, which Coeur exercised in December 2019.

In the first half of 2020, the Kensington mine delivered $ 15.0 million of gold concentrate to the counterparty in satisfaction of this prepayment obligation.

The Amended Sales Contract was further amended in June 2020 to include options for Coeur to receive up to two additional prepayments of up to $ 15.0 million each for deliveries of gold concentrate from the Kensington mine, and Coeur exercised the option to receive the first $ 15.0 million prepayment in June 2020 (the “June 2020 Prepayment”).

In the second half of 2020, the Kensington mine delivered $ 15.0 million of gold concentrate to the counterparty in satisfaction of the June 2020 Prepayment obligation.

In December 2020, Coeur exercised the option to receive the second $ 15.0 million prepayment (the “December 2020 Prepayment”), which is recognized as a deferred revenue liability and is presented in Accrued liabilities and other on the Consolidated Balance Sheet.

Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by June 30, 2021.

Silvertip Contingent Consideration

A total of up to $ 50.0 million of contingent consideration, payable in cash and common stock, is payable in conjunction with the Silvertip Acquisition based upon the achievement of two milestones, one of which was achieved and paid during 2019 and the other of which the Company has determined to be probable at December 31, 2019 .

A total of up to $ 50.0 million of contingent consideration, payable in cash and common stock, was payable in conjunction with the Silvertip Acquisition based upon the achievement of two milestones, one of which was achieved and paid during 2019 and the other of which was achieved and paid during the first quarter of 2020.

The first milestone payment of $ 25.0 million was contingent upon receipt of a permit expansion for a sustained mining and milling rate of 1,000 tonnes per day (the “Permit contingent consideration”).

The permit application was submitted to the British Columbia Ministry of Energy and Mining on April 30, 2018 and following its approval in November 2019, the Company provided a payment of $ 25.0 million in the form of $ 18.7 million in cash and 1.0 million shares of common stock to satisfy the Permit contingent consideration obligation.

The permit application was submitted to the British Columbia Ministry of Energy and Mining on April 30, 2018 and following its approval in November 2019, the Company made a payment of $ 25.0 million in the form of $ 18.7 million in cash and 1.0 million shares of common stock to satisfy the Permit contingent consideration obligation.

At December 31, 2019, based on the Silvertip mine’s total mineralized material (including reserves) (the “Resource contingent consideration”), the former JDS Silver Holdings Ltd.

shareholders were entitled to the full second contingent payment of $ 25.0 million , which has been included in Accrued liabilities and other on the Consolidated Balance Sheet.

Subsequent to the end of the period covered by this Report, the Company made a payment of $ 25.0 million in the form of $ 18.8 million in cash and 0.9 million shares of common stock to satisfy the Resource contingent consideration obligation.

Mexico VAT Litigation

Included in non-current receivables as of December 31, 2019 are $ 28.0 million due from the Mexican government associated with VAT that was paid under Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated effective in 2016.

Under the royalty agreement, Coeur applied for and initially received VAT refunds associated with the royalty payments in the normal course;

however, in 2011 the Mexican tax authorities began denying the Company’s VAT refunds based on the argument that VAT was not legally due on the royalty payments.

Accordingly, Coeur began to request refunds of the VAT as undue payments, which the Mexican tax authorities also denied.

The Company has since been engaged in ongoing efforts to recover the VAT from the Mexican government (including through litigation).

Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation continues, some of which has been determined unfavorably to the Company in 2019 based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are erroneous and which are now under appeal.

Other Commitments and Contingencies

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental remediation, reclamation, and other general corporate purposes.

As of December 31, 2019 and 2018, we had surety bonds totaling $215.6 million and $216.3 million , respectively in place as financial support for future reclamation and closure costs.

The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations.

As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing

shareholders were entitled to the full second contingent payment of $ 25.0 million.

In the first quarter of 2020, the Company made a payment of $ 25.0 million in the form of $ 18.8 million in cash and 0.9 million shares of common stock to satisfy the Resource contingent consideration obligation.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Other Commitments and Contingencies

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit, bank guarantees and, in some cases, cash as financial support for various purposes, including environmental remediation, reclamation, collateral for gold hedges and other general corporate purposes.

As of December 31, 2020 and December 31, 2019, the Company had surety bonds totaling $ 311.9 million and $ 215.6 million, respectively, in place as financial support for future reclamation and closure costs.

The 2020 increase in surety bonds was primarily related to the POA 11 expansion project at Rochester and reclamation and post-closure requirements at Wharf.

The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations and from time-to-time, the Company may be required to post collateral, including cash, to support these instruments.

As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity.

Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure.

2 unchanged sentences

In December 2017, the Company and certain of its subsidiaries entered into a definitive agreement (as amended, the “Manquiri Agreement”) to sell all of the outstanding capital stock of Empresa Minera Manquiri S.A.

(“Manquiri”), which is the operator of the San Bartolomé mine and processing facility.

(“Manquiri”), which is the operator of the San Bartolomé mine and processing facility (the “Manquiri Divestiture”).

On February 28, 2018, the Manquiri Divestiture was completed, and, in accordance with the Manquiri Agreement, the capital stock in Manquiri was sold to Ag-Mining Investments, AB, a privately-held Swedish company (the “Buyer”), in exchange for, among other items, (A) 2.0% net smelter returns royalty on all metals processed through the San Bartolomé mine’s processing facility (the “NSR”) and (B) promissory notes payable by the Buyer with an aggregate principal amount equal to $27.6 million (the “Manquiri Notes Receivable”).

In September 2018, the Company entered into the Letter Agreement with the Buyer pursuant to which the total aggregate principal amount of the Manquiri Notes Receivable was reduced to $25.0 million, and the Buyer made a concurrent cash payment of $15.0 million to the Sellers in respect of the Manquiri Notes Receivable.

In addition, the Company also agreed to suspend the quarterly payments in respect of the NSR until October 15, 2019 and to forgo any rights to any value added tax refunds collected or received by Manquiri.

In addition, the Company also agreed to forgo any rights to any value added tax refunds collected or received by Manquiri.

On February 28, 2019, the parties executed a letter agreement (the “February Letter Agreement”), which amended certain terms of the Manquiri Agreement.

Pursuant to the February Letter Agreement, the Buyer agreed to accelerate repayment of the remaining aggregate $6.0 million owed under the Manquiri Notes Receivable, by making a concurrent cash payment of $2.0 million to the Company in respect of the Manquiri Notes Receivable and agreeing to pay the remaining $4.0 million outstanding principal amount in two equal installments on March 31, 2019 and April 30, 2019, both of which were received.

Pursuant to the February Letter Agreement, the Buyer agreed to accelerate repayment of the remaining aggregate $6.0 million owed under the Manquiri Notes Receivable, which was received.

As of the date of the entry into the February Letter Agreement, the remaining obligations under the Manquiri Agreement (including post-closing indemnification obligations) terminated.

The Company recorded a $ 5.7 million gain on the sale Manquiri following the release of the indemnification liability (associated with termination of post-closing indemnification obligations) pursuant to the February Letter Agreement.

In addition, pursuant to the February Letter Agreement, until October 31, 2019 (the “Option Period”) the Buyer had a non-exclusive option (the “Option”) to either purchase or terminate its obligations to pay the NSR, by making a payment to Coeur of $4.8 million (the “NSR Payment Amount”).

During the Option Period, the Company’s right to receive NSR payments was suspended.

Since the Buyer did not exercise the Option and pay the NSR Payment Amount to Coeur during the Option Period, the Buyer’s obligations to pay the NSR resumed for the quarterly period beginning on July 1, 2019 and ended September 30, 2019.

Subsequent to the period covered by this Report, the Buyer purchased the NSR from the Company by making a payment to Coeur of $4.5 million.

The sale of Manquiri and the San Bartolomé mine had a significant effect on the Company's results and operations.

Accordingly, San Bartolomé’s operations for the years ended December 31, 2019, 2018 and 2017 are classified on the Consolidated Statements of Operations and Comprehensive Income (Loss) as Income (loss) from discontinued operations .

The major classes of line items constituting the pretax profit or loss for the years ended December 31, 2019, 2018 and 2017, respectively.

are as follows (in thousands):

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year ended December 31,

COSTS AND EXPENSES

Costs applicable to sales (1)

General and administrative

Pre-development, reclamation, and other

OTHER INCOME (EXPENSE), NET

Interest expense, net of capitalized interest

Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)

Pretax gain on the disposal of the discontinued operation

Total pretax gain or loss on discontinued operations

Income and mining tax (expense) benefit

Income (loss) from discontinued operations

(1) Excludes amortization.

Net cash provided by operating activities from San Bartolomé were nil and $ 2.7 million for the years ended December 31, 2019 and 2017, respectively.

Net cash used in operating activities were $ 11.3 million for the year ended December 31, 2018.

Net cash used in investing activities from San Bartolomé were nil , $ 28.5 million and $ 1.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

In January 2020, the Buyer purchased the NSR from Coeur by making a payment to Coeur of $ 4.5 million.

Coeur recorded a gain of $ 0.4 million following the payment.

NOTE 23 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION

Accrued liabilities and other consist of the following:

December 31, 2019

December 31, 2018

In thousands December 31, 2020 December 31, 2019

Accrued salaries and wages $ 30,457 $ 20,047

1 unchanged sentence

Deferred revenue (1)

16,425 16,672

Income and mining taxes 26,118 11,243

Accrued operating costs 3,327 3,752

Unrealized losses on derivatives 24,950 411

Taxes other than income and mining 3,616 3,554

3 unchanged sentences

(1) See Note 21 -- Commitments and Contingencies for additional details on deferred revenue liabilities

T he following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that total the same such amounts shown in the statement of cash flows for the years ended December 31, 2019 and 2018:

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

December 31, 2019

December 31, 2018

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that total the same such amounts shown in the statement of cash flows in the year ended December 31, 2020 and 2019:

In thousands December 31, 2020 December 31, 2019

Cash and cash equivalents $ 92,794 $ 55,645

4 unchanged sentences

Non-cash financing and investing activities:

2020 2019 2018

Finance lease obligations $ 5,283 $ 16,615 $ 45,813

Capital expenditures, not yet paid $ 30,682 $ 8,188 $ 6,428

Non-cash extinguishment of senior notes $ — $ 20,009 $ —

Non-cash acquisitions and related deferred taxes $ — $ — $ 110,273

Non-cash Permit contingent consideration

Non-cash Silvertip contingent consideration $ 5,295 $ 5,973 $ —

Other cash flow information:

3 unchanged sentences

and Subsidiaries

Notes to Consolidated Financial Statements

Notes to Condensed Consolidated Financial Statements

SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table sets forth a summary of the unaudited quarterly results of operations for the years ended December 31, 2020 and 2019 (in thousands, except per share data):

Revenues $ 173,167 $ 154,249 $ 229,728 $ 228,317

Costs applicable to sales 118,917 90,015 112,772 118,631

Amortization 36,162 27,876 32,216 35,133

Gross Profit 18,088 36,358 84,740 74,553

Exploration 6,386 11,855 12,818 11,584

Other operating expenses (General and administrative, Pre-development, reclamation, and other, and Impairment of long-lived assets) 15,475 27,291 22,788 23,822

7 unchanged sentences

Net income (loss) from discontinued operations 0.00 0.00 0.00 0.00

Basic $ ( 0.05 ) $ ( 0.01 ) $ 0.11 $ 0.05

Diluted income (loss) per share:

1 unchanged sentence

Net income (loss) from discontinued operations 0.00 0.00 0.00 0.00

Diluted $ ( 0.05 ) $ ( 0.01 ) $ 0.11 $ 0.05

Revenues $ 154,870 $ 162,123 $ 199,469 $ 195,040

Costs applicable to sales $ 131,650 $ 131,948 $ 140,952 146,631

Amortization $ 41,876 $ 43,204 $ 45,678 48,118

Gross Profit $ ( 18,656 ) $ ( 13,029 ) $ 12,839 291

Exploration $ 3,714 $ 5,719 $ 5,893 7,201

Other operating expenses (General and administrative, Pre-development, reclamation, and other, and Impairment of long-lived assets) $ 13,908 $ 12,084 $ 14,486 263,250

7 unchanged sentences

Net income (loss) from discontinued operations 0.03 0.00 0.00 0.00

Basic $ ( 0.09 ) $ ( 0.18 ) $ ( 0.06 ) $ ( 1.13 )

Diluted income (loss) per share:

1 unchanged sentence

Net income (loss) from discontinued operations 0.03 0.00 0.00 0.00

Diluted $ ( 0.09 ) $ ( 0.18 ) $ ( 0.06 ) $ ( 1.13 )

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Notes to Condensed Consolidated Financial Statements

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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-K

Item 8. Financial Statements and Supplementary Data