What changed in this filing

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Item 1. Financial Statements

2021-04-28 compared with 2020-10-28 · 215 added, 628 removed, 649 unchanged (57% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30, 2020 December 31, 2019

March 31, 2021 December 31, 2020

ASSETS Notes In thousands, except share data

11 unchanged sentences

Restricted assets 9,266 9,492

Equity and debt securities 6 19,862 35,646

Equity securities 6 8,209 12,943

Receivables 4, 17 25,605 26,447

17 unchanged sentences

Common stock, par value $ 0.01 per share;

authorized 300,000,000 shares, 243,744,601 issued and outstanding at September 30, 2020 and 241,529,021 at December 31, 2019

authorized 300,000,000 shares, 243,469,002 issued and outstanding at March 31, 2021 and 243,751,283 at December 31, 2020

Additional paid-in capital 3,610,631 3,610,297

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

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

2020 2019 2020 2019

Three Months Ended March 31,

Notes In thousands, except share data

16 unchanged sentences

Income and mining tax (expense) benefit 10 ( 12,786 ) 3,939

Income (loss) from continuing operations $ 26,856 $ ( 14,277 ) $ 13,747 $ ( 75,935 )

Income (loss) from discontinued operations 18 — — — 5,693

NET INCOME (LOSS) $ 2,060 $ ( 11,900 )

OTHER COMPREHENSIVE INCOME (LOSS):

Change in fair value of derivative contracts designated as cash flow hedges, net of tax of $ 0 and $ 365 for the three and nine months ended September 30, 2020 and 2019 respectively.

( 18,606 ) 1,132 ( 26,176 ) 1,132

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

Change in fair value of derivative contracts designated as cash flow hedges, net of tax of $ 0 and $ 22 for the three months ended March 31, 2021 and 2020, respectively.

Reclassification adjustments for realized (gain) loss on cash flow hedges ( 2,721 ) —

Other comprehensive income (loss) 24,636 206

1 unchanged sentence

NET INCOME (LOSS) PER SHARE 15

Basic income (loss) per share:

Net income (loss) from continuing operations $ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.36 )

Net income (loss) from discontinued operations — — — 0.03

$ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.33 )

Diluted income (loss) per share:

Net income (loss) from continuing operations $ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.36 )

Net income (loss) from discontinued operations — — — 0.03

$ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.33 )

Basic $ 0.01 $ ( 0.05 )

Diluted $ 0.01 $ ( 0.05 )

(1) Excludes amortization.

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

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

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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

2020 2019 2020 2019

Three Months Ended March 31,

Notes In thousands

1 unchanged sentence

Net income (loss) $ 2,060 $ ( 11,900 )

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

Amortization 29,937 36,162

13 unchanged sentences

Accounts payable and accrued liabilities ( 28,797 ) ( 15,051 )

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS 79,464 41,996 81,420 52,585

CASH PROVIDED BY (USED IN )OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS — — — —

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ( 4,359 ) ( 7,991 )

2 unchanged sentences

Proceeds from the sale of assets 4,588 4,506

Purchase of investments ( 2,500 ) — ( 2,500 ) —

Sale of investments 935 —

Proceeds from notes receivable — — — 7,168

Other ( 17 ) ( 17 )

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS ( 24,791 ) ( 29,702 ) ( 39,564 ) ( 66,697 )

CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS — — — —

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ( 53,918 ) ( 17,719 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock 19 — 73,781 — 122,668

Issuance of notes and bank borrowings, net of issuance costs 8 367,493 50,000

2 unchanged sentences

Other ( 3,925 ) ( 1,973 )

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS ( 48,443 ) 16,304 ( 20,639 ) ( 36,341 )

CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS — — — —

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 119,601 23,376

1 unchanged sentence

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 61,273 ( 2,960 )

Less net cash used in discontinued operations — — — —

6,220 28,406 21,510 ( 50,388 )

Cash, cash equivalents and restricted cash at beginning of period 94,170 57,018

14 unchanged sentences

Other comprehensive income (loss) — — — — 24,636 24,636

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 ( 282 ) ( 3 ) 334 — — 331

Balances at March 31, 2021 243,470 $ 2,435 $ 3,610,631 $ ( 2,906,060 ) $ 13,500 $ 720,506

Net income (loss) — — — ( 1,209 ) — ( 1,209 )

Other comprehensive income (loss) — — — — ( 7,776 ) ( 7,776 )

Common stock issued/canceled under long-term incentive plans and director fees and options, net 146 1 2,197 — — 2,198

Balances at June 30, 2020 243,732 $ 2,437 $ 3,605,982 $ ( 2,946,856 ) $ ( 7,706 ) $ 653,857

Net income (loss) — — — 26,856 — 26,856

Other comprehensive income (loss) — — — — ( 18,606 ) ( 18,606 )

Common stock issued/canceled under long-term incentive plans and director fees and options, net 13 — 2,120 — — 2,120

Balances at September 30, 2020 243,745 $ 2,437 $ 3,608,102 $ ( 2,920,000 ) $ ( 26,312 ) $ 664,227

In thousands Common

8 unchanged sentences

Other comprehensive income (loss) — — — — 206 206

Common stock issued under stock-based compensation plans, net 1,801 18 ( 1,053 ) — — ( 1,035 )

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 1,179 12 27 — — 39

Balances at March 31, 2020 243,586 $ 2,436 $ 3,603,785 $ ( 2,945,647 ) $ 70 $ 660,644

Net income (loss) — — — ( 36,764 ) — ( 36,764 )

Common stock issued under "at the market" stock offering 16,631 166 48,721 — — 48,887

Common stock issued under stock-based compensation plans, net 117 2 1,986 — — 1,988

Balances at June 30, 2019 221,859 $ 2,219 $ 3,492,736 $ ( 2,648,509 ) $ — 846,446

Net income (loss) — — — ( 14,277 ) — ( 14,277 )

Other comprehensive income (loss) — — — — 1,132 1,132

Common stock issued for the extinguishment of Senior Notes 4,452 44 21,246 — — 21,290

Common stock issued under "at the market" stock offering 14,220 142 73,639 — — 73,781

Common stock issued under stock-based compensation plans, net ( 22 ) — 2,435 — — 2,435

Balances at September 30, 2019 240,509 $ 2,405 $ 3,590,056 $ ( 2,662,786 ) $ 1,132 930,807

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

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Notes to Consolidated Financial Statements

NOTE 1 - BASIS OF PRESENTATION

9 unchanged sentences

Use of Estimates

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

The preparation of the Company's Condensed 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.

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.

The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, estimates of recoverable silver and gold in leach pad inventories, estimates of fair value for certain reporting units and asset impairments, valuation allowances for deferred tax assets, and the fair value and accounting treatment of financial instruments, equity securities, asset acquisitions, the allocation of fair value to assets and liabilities assumed in connection with business combinations, and derivative instruments.

The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.

Accordingly, actual results will differ from the amounts estimated in these financial statements.

The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict.

Therefore, the Company’s accounting estimates and assumptions may change over time in response to the COVID-19 pandemic and may change materially in future periods.

Revenue Recognition

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $ 20.0 million, net, deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50 % of a portion of Palmarejo gold production at the lesser of $ 800 or market price per ounce.

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $ 22.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50 % of a portion of Palmarejo gold production at the lesser of $ 800 or market price per ounce.

Because there is no minimum obligation associated with the deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation.

The streaming agreement 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 Franco-Nevada.

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 17 -- Commitments and Contingencies for additional detail.

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

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

Three Months Ended March 31,

In thousands 2021 2020

2 unchanged sentences

Closing Balance $ 9,030 $ 10,505

In June 2020, the Company received a $ 15.0 million prepayment (the “June 2020 Prepayment” as defined in Note 17) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined below).

In December 2020, the Company received a $ 15.0 million prepayment (the “December 2020 Prepayment” as defined in Note 17) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 17).

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 17 -- Commitments and Contingencies for additional detail.

2 unchanged sentences

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

Notes to Consolidated Financial Statements

Three Months Ended March 31,

In thousands 2021 2020

4 unchanged sentences

Recently Adopted Accounting Standards

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

The new standard is effective for reporting periods beginning after December 15, 2019.

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.

The Company adopted the new credit loss standard effective January 1, 2020.

The adoption of the new standard did not have a material impact on the Company’s consolidated net income, financial position 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.

2 unchanged sentences

Early adoption is permitted.

The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements.

The adoption of the new standard did not have a material impact on the Company’s consolidated net income, financial position or cash flows.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Notes to Consolidated Financial Statements

NOTE 3 – SEGMENT REPORTING

3 unchanged sentences

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.

Early in the second quarter of 2020, we 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, and we began taking steps to restart active mining, processing and exploration activities at Palmarejo in accordance with updated guidance from the government approximately 45 days later.

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 we experienced a minor short-term production impact associated with this situation, which has adversely impacted production and cash flows.

W e continue to require all employees who travel to the Kensington mine to submit to a 7-day quarantine and testing protocol in Juneau, Alaska before traveling to the mine.

We believe this is an important step to protect the health and safety of all workers who stay at the Kensington camp, although it has required changes to worker scheduling and is expected 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 Condensed Consolidated Statement of Comprehensive Income (Loss) and are included in Other operating expenses in the table below.

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 and the Company expects costs associated with its COVID-19 mitigation and response efforts at each of its operations to continue.

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 we will continue to monitor the COVID-19 situation closely.

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):

Three months ended September 30, 2020 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 39,416 $ 12,860 $ 52,357 $ 62,499 $ — $ — $ 167,132

Silver sales 42,339 19,250 — 1,007 — — 62,596

Zinc sales — — — — — — —

Lead sales — — — — — — —

Metal sales 81,755 32,110 52,357 63,506 — — 229,728

Costs and Expenses

Costs applicable to sales (1)

34,251 19,104 31,530 27,887 — — 112,772

Amortization 11,912 3,278 11,523 4,000 1,185 318 32,216

Exploration 1,978 465 3,397 534 3,920 2,524 12,818

Other operating expenses 2,378 1,376 3,448 127 5,916 9,543 22,788

Other income (expense)

Loss on debt extinguishment — — — — — — —

Fair value adjustments, net — — — — — 2,243 2,243

Interest expense, net ( 201 ) ( 283 ) ( 296 ) ( 48 ) ( 124 ) ( 4,144 ) ( 5,096 )

Other, net ( 1,168 ) ( 2,502 ) ( 34 ) 7 451 ( 3,066 ) ( 6,312 )

Income and mining tax (expense) benefit ( 6,841 ) ( 143 ) ( 380 ) ( 2,630 ) 21 ( 3,140 ) ( 13,113 )

Income (loss) from continuing operations $ 23,026 $ 4,959 $ 1,749 $ 28,287 $ ( 10,673 ) $ ( 20,492 ) $ 26,856

Income (loss) from discontinued operations $ — $ — $ — $ — $ — $ — $ —

Segment assets (2)

$ 302,599 $ 325,165 $ 177,700 $ 76,247 $ 155,932 $ 170,208 $ 1,207,851

Capital expenditures $ 4,998 $ 9,773 $ 5,333 $ 545 $ 2,065 $ 282 $ 22,996

(1) Excludes amortization

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three months ended September 30, 2019 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 41,547 $ 11,290 $ 52,636 $ 36,398 $ — $ — $ 141,871

Silver sales 29,790 16,191 — 293 5,307 — 51,581

Zinc sales — — — — 2,046 — 2,046

Lead sales — — — — 3,971 — 3,971

Metal sales 71,337 27,481 52,636 36,691 11,324 — 199,469

Costs and Expenses

Costs applicable to sales (1)

37,397 27,749 29,533 22,084 24,189 — 140,952

Amortization 15,840 4,250 13,552 3,301 8,268 467 45,678

Exploration 1,608 145 1,465 102 828 1,745 5,893

Other operating expenses 1,327 1,210 281 698 254 10,716 14,486

Other income (expense)

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

Fair value adjustments, net — — — — — 4,377 4,377

Interest expense, net ( 74 ) ( 287 ) ( 453 ) ( 26 ) ( 410 ) ( 4,730 ) ( 5,980 )

Other, net ( 2,535 ) ( 368 ) ( 99 ) ( 151 ) ( 190 ) ( 291 ) ( 3,634 )

Income and mining tax (expense) benefit ( 1,630 ) ( 2,067 ) — ( 1,672 ) 916 4,235 ( 218 )

Income (loss) from continuing operations 10,926 ( 8,595 ) 7,253 8,657 ( 21,899 ) ( 10,619 ) ( 14,277 )

Income (loss) from discontinued operations — — — — — — —

Segment assets (2)

342,274 283,229 204,926 99,600 417,678 172,735 1,520,442

Capital expenditures 7,818 10,248 4,944 759 6,359 550 30,678

(1) Excludes amortization

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

Nine months ended September 30, 2020 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Three Months Ended March 31, 2021 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 37,567 $ 12,440 $ 54,466 $ 33,849 $ — $ — $ 138,322

Silver sales 42,778 20,317 — 700 — — 63,795

Zinc sales — — — — ( 662 ) — ( 662 )

Lead sales — — — — 1,315 — 1,315

Metal sales 80,345 32,757 54,466 34,549 — — 202,117

11 unchanged sentences

Income and mining tax (expense) benefit ( 11,340 ) ( 138 ) ( 334 ) ( 1,129 ) — 155 ( 12,786 )

Income (loss) from continuing operations $ 50,534 $ ( 1,413 ) $ 13,767 $ 45,975 $ ( 47,210 ) $ ( 47,906 ) $ 13,747

Income (loss) from discontinued operations $ — $ — $ — $ — $ — $ — $ —

Net Income (loss) $ 22,143 $ 2,806 $ 4,957 $ 11,948 $ ( 10,630 ) $ ( 29,164 ) $ 2,060

Segment assets (2)

5 unchanged sentences

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Nine months ended September 30, 2019 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Notes to Consolidated Financial Statements

Three Months Ended March 31, 2020 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 41,647 $ 8,666 $ 51,666 $ 25,626 $ — $ — $ 127,605

15 unchanged sentences

Income and mining tax (expense) benefit 2,287 ( 43 ) — ( 475 ) — 2,170 3,939

Income (loss) from continuing operations $ 19,456 $ ( 15,380 ) $ 3,400 $ 13,560 $ ( 54,682 ) $ ( 42,289 ) $ ( 75,935 )

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

Net Income (loss) $ 25,061 $ ( 2,285 ) $ 6,896 $ 4,622 $ ( 22,873 ) $ ( 23,321 ) $ ( 11,900 )

Segment assets (2)

3 unchanged sentences

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

Assets September 30, 2020 December 31, 2019

Assets March 31, 2021 December 31, 2020

Total assets for reportable segments $ 1,283,284 $ 1,232,153

3 unchanged sentences

Geographic Information

Long-Lived Assets September 30, 2020 December 31, 2019

Long-Lived Assets March 31, 2021 December 31, 2020

United States $ 530,895 $ 503,818

3 unchanged sentences

Total $ 987,796 $ 946,929

Revenue Three months ended September 30, Nine months ended September 30,

2020 2019 2020 2019

Revenue Three months ended March 31,

United States $ 121,772 $ 96,945

4 unchanged sentences

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Notes to Consolidated Financial Statements

NOTE 4 – RECEIVABLES

Receivables consist of the following:

In thousands September 30, 2020 December 31, 2019

In thousands March 31, 2021 December 31, 2020

Current receivables:

7 unchanged sentences

$ 25,605 $ 26,447

RMC receivable (2)

25,605 26,447

3 unchanged sentences

See Note 17 -- Commitments and Contingencies for additional detail.

The $4.5 million decrease in the nine months ended September 30, 2020 is attributable to a weaker Mexican Peso.

(2) Represents receivable due from the successor to Republic Metals Corporation, 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.

The $0.8 million decrease in the three months ended March 31, 2021 is attributable to a weaker Mexican Peso.

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:

In thousands September 30, 2020 December 31, 2019

In thousands March 31, 2021 December 31, 2020

Concentrate $ 2,100 $ 2,909

6 unchanged sentences

166,412 156,829

Long-term stockpile $ 3,691 $ —

Long-term Stockpile (included in Other )

$ 10,759 $ 5,664

Total Inventory and Ore on Leach Pads $ 230,762 $ 213,703

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 nine months ended September 30, 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 nine months ended September 30, 2020.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 6 – 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 September 30, 2020

At March 31, 2021

In thousands Cost Gross

1 unchanged sentence

Equity Securities

Metalla Royalty & Streaming Ltd.

$ 1,851 $ — $ 5,269 $ 7,120

Integra Resources Corp.

$ 7,500 $ — $ 707 $ 8,207

Rockhaven Resources Ltd.

2,064 ( 136 ) — 1,928

Other 2 — — 2

Equity securities $ 7,502 $ — $ 707 $ 8,209

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

At December 31, 2020

6 unchanged sentences

7,500 — 4,401 11,901

Rockhaven Resources, Ltd.

2,064 ( 376 ) — 1,688

Other 2 ( 1 ) — 1

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

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.

Following the completion of both transactions, the Company held 909,756 Metalla Common Shares.

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.

On January 4, 2021, the Company completed the sale of 83,556 shares of common stock of Metalla Royalty & Streaming Ltd.

(“Metalla”) (“Metalla Common Shares”) at an average price (net of commission) of $11.19 per Metalla Common Share for net proceeds of $ 0.9 million for a realized gain of $ 0.8 million.

NOTE 7 – LEASES

1 unchanged sentence

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

In thousands 2021 2020

6 unchanged sentences

Supplemental cash flow information related to leases was as follows:

Three months ended September 30, Nine months ended September 30,

Three months ended March 31,

In thousands 2021 2020

4 unchanged sentences

Financing cash flows from finance leases $ 5,663 $ 5,901

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental balance sheet information related to leases was as follows:

In thousands September 30, 2020 December 31, 2019

In thousands March 31, 2021 December 31, 2020

Operating Leases

16 unchanged sentences

Weighted-average discount rate - operating leases 5.19 % 5.18 %

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:

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

As of September 30, 2020 (In thousands)

As of March 31, 2021 (In thousands)

Operating leases Finance leases

3 unchanged sentences

2024 8,812 2,039

2024 8,605 1,699

Thereafter 1,169 —

3 unchanged sentences

NOTE 8 – DEBT

September 30, 2020 December 31, 2019

March 31, 2021 December 31, 2020

In thousands Current Non-Current Current Non-Current

1 unchanged sentence

$ — $ 367,572 $ — $ —

2024 Senior Notes, net (2)

— — — 227,590

Revolving Credit Facility (3)

1 unchanged sentence

$ 21,404 $ 390,721 $ 22,074 $ 253,427

(1) Net of unamortized debt issuance costs of $ 2.6 million and $ 3.1 million at September 30, 2020 and December 31, 2019, respectively.

(2) Unamortized debt issuance costs of $ 1.7 million and $ 2.3 million at September 30, 2020 and December 31, 2019, respectively, included in Other Non-Current Assets .

(1) Net of unamortized debt issuance costs of $ 7.4 million and $ 0.0 million at March 31, 2021 and December 31, 2020, respectively.

(2) Net of unamortized debt issuance costs of $ 0.0 million and $ 2.4 million at March 31, 2021 and December 31, 2020, respectively.

(3) Unamortized debt issuance costs of $ 2.7 million and $ 1.5 million at March 31, 2021 and December 31, 2020, respectively, included in Other Non-Current Assets .

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

2029 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 of 1933, as amended, for net proceeds of approximately $ 245.0 million, followed by an exchange offer for publicly-traded 2024 Senior Notes.

For more details, please see Note 12 -- Debt contained in the 2019 10-K.

In March 2021, the Company completed an offering of $ 375.0 million in aggregate principal amount of 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 $ 367.5 million (the “2029 Senior Notes”).

The 2029 Senior Notes are governed by an Indenture dated as of March 1, 2021 (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 (the “Trustee”).

The 2029 Senior Notes bear interest at a rate of 5.125 % per year from the date of issuance.

Interest on the 2029 Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2021.

The 2029 Senior Notes will mature on February 15, 2029 and are fully and unconditionally guaranteed by the Guarantors.

At any time prior to February 15, 2024, the Company may redeem all or part of the 2029 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 2029 Senior Notes on or after February 15, 2024, at redemption prices set forth in the Indenture, together with accrued and unpaid interest.

At any time prior to February 15, 2024, the Company may use the proceeds of certain equity offerings to redeem up to 35% of the aggregate principal amount of the 2029 Senior Notes, including any permitted additional 2029 Senior Notes, at a redemption price equal to 105.125 % of the principal amount.

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.

The Indenture also contains certain “Events of Default” (as defined in the Indenture) customary for indentures of this type.

If an Event of Default has occurred and is continuing, the Trustee or the holders of not less than 25% in aggregate principal amount of the 2029 Senior Notes then outstanding may, and the Trustee at the request of the holders of not less than 25% in aggregate principal amount of the 2029 Senior Notes then outstanding shall, declare all unpaid principal of, premium, if any, and accrued interest on all the 2029 Senior Notes to be due and payable.

2024 Senior Notes

Concurrent with the offering of the 2029 Senior Notes, the Company commenced a cash tender offer (the “Tender Offer”) to purchase the outstanding $ 230.0 million in aggregate principal amount of its 5.875 % Senior Notes due 2024 (the “2024 Senior Notes”).

The Tender Offer was made on the terms and subject to the conditions set forth in the Offer to Purchase dated February 22, 2021.

The Tender Offer expired at 5:00 p.m., New York City time, on February 26, 2021 (the “Expiration Time”).

Holders of the 2024 Senior Notes who tendered (and did not validly withdraw) their notes at or prior to the Expiration Time were entitled to receive in cash $ 1,029.38 per $1,000 principal amount of 2024 Senior Notes validly tendered (and not validly withdrawn) and accepted for purchase by the Company in the Tender Offer, plus accrued and unpaid interest on such 2024 Senior Notes.

$ 102.8 million aggregate principal amount of the 2024 Senior Notes were validly tendered and purchased by the Company on March 1, 2021.

In accordance with the terms of the indenture governing the 2024 Senior Notes, the remaining $ 127.2 million aggregate principal amount of the 2024 Senior Notes were redeemed on March 31, 2021 at the redemption price specified in the indenture governing the 2024 Senior Notes ($ 1,029.38 per $1,000 principal amount redeemed, plus accrued and unpaid interest).

The Company recorded a loss of $ 9.2 million as a result of the extinguishment of the 2024 Senior Notes.

Revolving Credit Facility

At September 30, 2020, the Company had $ 20.0 million drawn, and $ 20.5 million in letters of credit outstanding under, its $ 250.0 million revolving credit facility pursuant to the credit agreement originally entered into in September 2017 and subsequently amended among the Company, as borrower, and certain subsidiaries of the Company, as guarantors, and Bank of America, N.A., Royal Bank of Canada, Bank of Montreal, Chicago Branch, and the Bank of Nova Scotia as lenders (the “RCF”), leaving $ 209.5 million available under the RCF.

At September 30, 2020, the interest rate on the principal of the RCF was 2.7 %.

On March 1, 2021, the Company entered into a fifth amendment (the “Amendment”) to its credit agreement, dated as of September 29, 2017 (as previously amended, the “Credit Agreement”), by and among the Company, as borrower, certain subsidiaries of the Company, as guarantors, Bank of America, N.A., as administrative agent and Bank of America, N.A., Royal Bank of Canada, Bank of Montreal, Chicago Branch, the Bank of Nova Scotia and ING Capital LLC, as lenders.

The Amendment, among other things, (i) extended the maturity date of the senior secured revolving credit facility (“Revolving Credit Facility” or “RCF”) provided under the Credit Agreement to March 2025 and (ii) permits the Company to obtain one or more increases of the RCF, which is currently in the amount of $ 300.0 million, in an aggregate amount of up to $ 100.0 million in incremental loans and commitments, subject to certain conditions, including obtaining commitments from relevant lenders to provide such increase.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

At March 31, 2021, the Company had no borrowings and $ 35.0 million in outstanding letters of credit und er the RCF.

At March 31, 2021, 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 nine months ended September 30, 2020, the Company entered into new lease financing arrangements primarily for mining equipment at Kensington and Palmarejo.

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

In the three months ended March 31, 2021, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester and Kensington .

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

See Note 7 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Interest Expense

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

Three Months Ended March 31,

In thousands 2021 2020

2024 Senior Notes $ 2,591 $ 3,378

2029 Senior Notes 1,602 —

Revolving Credit Facility 480 549

1 unchanged sentence

Amortization of debt issuance costs 404 381

Accretion of Silvertip contingent consideration — 182 — 541

Other debt obligations 57 35

6 unchanged sentences

Changes to the Company’s asset retirement obligations for its operating sites are as follows:

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

Three Months Ended March 31,

In thousands 2021 2020

3 unchanged sentences

Asset retirement obligation - Ending $ 139,354 $ 136,628

The Company accrued $ 1.8 million and $ 1.9 million at each of September 30, 2020 and December 31, 2019, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

The Company accrued $ 2.1 million and $ 1.9 million at each of March 31, 2021 and March 31, 2020, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 10 - INCOME AND MINING TAXES

The following table summarizes the components of Income and mining tax (expense) benefit for the three and nine months ended September 30, 2020 and 2019 by significant jurisdiction:

Three months ended September 30, Nine months ended September 30,

2020 2019 2020 2019

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

The following table summarizes the components of Income and mining tax (expense) benefit for the three months ended March 31, 2021 and 2020 by significant jurisdiction:

Three months ended March 31,

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

United States $ ( 8,531 ) $ ( 1,625 ) $ ( 11,005 ) $ ( 736 )

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$ 14,846 $ ( 12,786 ) $ ( 15,839 ) $ 3,939

During the third quarter of 2020, the Company reported estimated income and mining tax expense of approximately $ 13.1 million, resulting in an effective tax rate of 32.8 %.

This compares to income tax expense of $ 0.2 million for an effective tax rate of 1.6 % during the third quarter of 2019.

During the first quarter of 2021, the Company reported estimated income and mining tax expense of approximately $ 12.8 million, resulting in an effective tax rate of 86.1 %.

This compares to income tax expense of $ 3.9 million for an effective

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

tax rate of 24.9 % during the first quarter of 2020.

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

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(ii) variations in our income before income taxes;

(iii) geographic distribution of that income (iv) foreign exchange rates;

(v) the impact of uncertain tax positions;

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

(iii) geographic distribution of that income;

(iv) foreign exchange rates;

(v) percentage depletion;

(vi) the non-recognition of tax assets;

and (vii) the impact of uncertain tax positions.

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

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The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance.

Conversely, if it is determined

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

Conversely, if it is determined that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

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

5 unchanged sentences

As a result of statutes of limitation that will begin to expire within the next twelve months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease between $ 0.5 million and $ 1.0 million in the next twelve months.

At September 30, 2020 and December 31, 2019, the Company had $ 0.6 million and $ 2.7 million of total gross unrecognized tax benefits from continuing operations, respectively, that, if recognized, would positively impact the Company’s effective income tax rate.

At March 31, 2021 and December 31, 2020, the Company had $ 0.3 million and $ 0.7 million of total gross unrecognized tax benefits, respectively, that, if recognized, would positively impact the Company’s effective income tax rate.

The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense.

At September 30, 2020 and December 31, 2019, the amount of accrued income-tax-related interest and penalties was $ 1.0 million and $ 2.3 million, respectively.

At March 31, 2021 and December 31, 2020, the amount of accrued income-tax-related interest and penalties was $ 0.3 million and $ 1.1 million, respectively.

NOTE 11 – STOCK-BASED COMPENSATION

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

Stock-based compensation expense in the three and nine months ended September 30, 2020 was $ 2.0 million and $ 6.3 million, respectively, compared to $ 2.5 million and $ 6.7 million for the three and nine months ended September 30, 2019, respectively.

At September 30, 2020, there was $ 10.4 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.7 years.

The following table summarizes the grants awarded during the nine months ended September 30, 2020:

Stock-based compensation expense in the three months ended March 31, 2021 and 2020 was $ 4.3 million and $ 2.0 million, respectively.

At March 31, 2021, there was $ 7.0 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.5 years.

The following table summarizes the grants awarded during the three months ended March 31, 2021:

Grant date Restricted

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shares Grant date fair

June 3, 2020 167,125 $ 5.21 123,777 $ 3.91

May 19, 2020 — $ — 198,273 $ 3.91

May 13, 2020 54,660 $ 3.97 998,618 $ 3.91

February 24, 2021 5,000 $ 10.40 — $ —

February 24, 2020 1,304,763 $ 5.12 — $ —

NOTE 12 – FAIR VALUE MEASUREMENTS

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

Three Months Ended March 31,

In thousands 2021 2020

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Realized gain (loss) on equity securities 769 —

Interest rate swap, net — 15 — ( 173 )

Fair value adjustments, net $ ( 3,799 ) $ ( 8,819 )

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Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

Fair Value at September 30, 2020

Fair Value at March 31, 2021

In thousands Total Level 1 Level 2 Level 3

Equity securities $ 8,209 $ 8,209 $ — $ —

Gold zero cost collars

4,056 — 4,056 —

Foreign currency forward exchange contracts

2 unchanged sentences

$ 21,712 $ 8,209 $ 13,503 $ —

Gold zero cost collars

$ 33,926 $ — $ 33,926 $ —

Provisional metal sales contracts $ 148 $ — $ 148 $ —

$ 34,225 $ — $ 34,225 $ —

Fair Value at December 31, 2020

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

Foreign currency forward exchange contracts 13,747 — 13,747 —

Provisional metal sales contracts 481 — 481 —

$ 27,171 $ 12,943 $ 14,228 $ —

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

Provisional metal sales contracts 275 — 275 —

Gold zero cost collars

$ 24,883 $ — $ 24,883 $ —

Provisional metal sales contracts 67 — 67 —

$ 24,950 $ — $ 24,950 $ —

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

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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, and other unobservable inputs.

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

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 nine months ended September 30, 2020.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the nine months ended September 30, 2020:

Nine Months Ended September 30,

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

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

The fair value of financial assets and liabilities carried at book value in the financial statements at September 30, 2020 and December 31, 2019 is presented in the following table:

September 30, 2020

No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2021.

The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 2021 and December 31, 2020 is presented in the following table:

March 31, 2021

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

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(2) Unamortized debt issuance costs of $ 2.7 million included in Other Non-Current Assets .

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

December 31, 2020

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

At September 30, 2020, the Company had the following derivative instruments that settle as follows:

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

In thousands except average prices and notional ounces 2020 Thereafter

At March 31, 2021, the Company had the following derivative instruments that settle as follows:

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

Provisional gold sales contracts $ 21,630 $ —

2 unchanged sentences

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

September 30, 2020

March 31, 2021

In thousands Prepaid expenses and other Accrued liabilities and other

3 unchanged sentences

Provisional metal sales contracts $ 481 $ 67

The following represent mark-to-market gains (losses) on derivative instruments in the three and nine months ended September 30, 2020 and 2019, respectively (in thousands):

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

The following represent mark-to-market gains (losses) on derivative instruments in the three months ended March 31, 2021 and 2020, respectively (in thousands):

Three Months Ended March 31,

Financial statement line Derivative 2021 2020

Revenue Provisional metal sales contracts $ ( 559 ) $ 500

Fair value adjustments, net Interest rate swaps — 15 — ( 173 )

$ ( 962 ) $ 248 $ 250 $ ( 1,634 )

Derivatives Designated as Cash Flow Hedging Strategies

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 contracts are net cash settled monthly and, if the price of

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

At September 30, 2020, the Company had the following derivative cash flow hedge instruments that settle as follows:

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.

At March 31, 2021, the Company had the following derivative cash flow hedge instruments that settle as follows:

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

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Notional US dollar $ 45,000 $ —

Foreign exchange forward exchange contracts - Canadian Dollar

Average Canadian Dollar exchange rate $ 1.44 —

Notional US dollar 7,500 $ —

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.

Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of costs applicable to sales in the same period the related expenses are incurred.

As of September 30, 2020, the Company had $ 26.3 million of net after-tax loss in AOCI related to losses from cash flow hedge transactions, of which $ 13.8 million of net after-tax losses is expected to be recognized in its Condensed Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.

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.

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 March 31, 2021, the Company had $ 13.5 million of net after-tax gain in AOCI related to losses from cash flow hedge transactions, of which $ 10.4 million of net after-tax gains is expected to be recognized in its Consolidated Statement 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:

September 30, 2020

March 31, 2021

In thousands Prepaid expenses and other Accrued liabilities and other

1 unchanged sentence

Foreign currency forward exchange contracts 9,444 —

$ 7,614 $ 33,926

December 31, 2020

1 unchanged sentence

Gold zero cost collars $ — $ 24,883

Foreign currency forward exchange contracts 13,747 —

$ 13,747 $ 24,883

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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 Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2020 and 2019, respectively (in thousands).

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

2020 2019 2020 2019

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 three months ended March 31, 2021 and 2020, respectively (in thousands).

Three Months Ended March 31,

Amount of Gain (Loss) Recognized in AOCI

6 unchanged sentences

$ ( 2,721 ) $ —

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.

Other than a change in counterparty and the credit support provided under the agreements with the old and new counterparties, 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 compensation 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.

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The Company does not anticipate non-performance by any of its counterparties.

NOTE 14 - OTHER, NET

NOTE 14 – ADDITIONAL COMPREHENSIVE INCOME (LOSS) DETAIL

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

Three Months Ended March 31,

In thousands 2021 2020

COVID-19 $ 3,005 $ 272

Silvertip ongoing carrying costs 6,921 2,608

Silvertip temporary suspension costs — 3,659

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

Asset retirement accretion 2,905 2,847

Other 881 1,220

Pre-development, reclamation and other $ 13,712 $ 6,555

Other, net consists of the following:

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

Three Months Ended March 31,

In thousands 2021 2020

Foreign exchange gain (loss) $ ( 773 ) $ ( 76 )

Gain (loss) on sale of assets and investments ( 2,476 ) ( 100 ) ( 2,458 ) ( 120 )

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

Gain (loss) on sale of assets 4,053 9

Gain (loss) on sale of Manquiri NSR consideration — 365

Gain (loss) on Silvertip contingent consideration — 955

Interest income on notes receivable — — — 199

Other 347 628

Other, net $ 3,627 $ 1,881

(1) As defined in Note 18 -- Discontinued Operations.

NOTE 15 – 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 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.

For the three and nine months ended September 30, 2020, there were 182,803 and 1,722,014 common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the

Diluted net income (loss) per share

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

shares would be antidilutive.

Similarly, 319,162 and 1,312,737 common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2019, respectively.

Three months ended September 30, Nine months ended September 30,

reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.

For the three months ended March 31, 2021 and 2020, there were 112,610 and 1,712,033 common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the shares would be antidilutive.

Three months ended March 31,

In thousands except per share amounts 2021 2020

Net income (loss) available to common stockholders $ 2,060 $ ( 11,900 )

Income (loss) from continuing operations $ 26,856 $ ( 14,277 ) $ 13,747 $ ( 75,935 )

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

$ 26,856 $ ( 14,277 ) $ 13,747 $ ( 70,242 )

Weighted average shares:

2 unchanged sentences

Diluted 244,520 240,255

Basic income (loss) per share:

Income (loss) from continuing operations $ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.36 )

Income (loss) from discontinued operations — — — 0.03

$ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.33 )

Diluted income (loss) per share:

Income (loss) from continuing operations $ 0.11 $ ( 0.06 ) $ 0.06 $ ( 0.36 )

Income (loss) from discontinued operations — — — 0.03

Income (loss) per share:

Basic $ 0.01 $ ( 0.05 )

$ 0.01 $ ( 0.05 )

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

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

1 unchanged sentence

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

At September 30, 2020, the Company had not sold any of its common stock under the ATM Program.

At March 31, 2021, the Company had not elected to sell any shares of its common stock under the ATM Program.

NOTE 16 - SUPPLEMENTAL GUARANTOR INFORMATION

The following Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc.

The following summarized financial information is presented to satisfy disclosure requirements of Rule 13-01 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc.

and its subsidiaries, Coeur Capital, Inc., Coeur Sterling, Inc., Sterling Intermediate Holdco, Inc., and Coeur Sterling Holdings LLC (collectively, the “Subsidiary Guarantors”) of the 2029 Senior Notes.

The following schedules present Consolidating Financial Statements of (a) Coeur, the parent company;

(b) the Subsidiary Guarantors;

and (c) certain wholly-owned domestic and foreign subsidiaries of the Company (collectively, the “Non-Guarantor Subsidiaries”).

The following schedules present summarized financial information of (a) Coeur, the parent company and (b) the Subsidiary Guarantors (collectively the “Obligor Group”).

The summarized financial information of the Obligor Group is presented on a combined basis with intercompany balances and transactions between entities in the Obligor Group eliminated.

The Obligor Group’s amounts due from, amounts due to and transactions with certain wholly-owned domestic and foreign subsidiaries of the Company have been presented in separate line items, if they are material.

Each of the Subsidiary Guarantors is 100% owned by Coeur and the guarantees are full and unconditional and joint and several obligations.

3 unchanged sentences

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 30, 2020

SUMMARIZED BALANCE SHEET

MARCH 31, 2021

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Guarantor Subsidiaries

CURRENT ASSETS

11 unchanged sentences

Equity and debt securities 8,209 —

Receivables — — 23,493 — 23,493

Net investment in subsidiaries 554,504 69,106

25 unchanged sentences

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET

SUMMARIZED BALANCE SHEET

DECEMBER 31, 2020

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Guarantor Subsidiaries

CURRENT ASSETS

11 unchanged sentences

Equity and debt securities 12,943 —

Receivables — — 28,709 — 28,709

Net investment in subsidiaries 514,705 72,785

25 unchanged sentences

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED SEPTEMBER 30, 2020

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Revenue $ — $ 147,973 $ 81,755 $ — $ 229,728

COSTS AND EXPENSES

Costs applicable to sales (1)

— 78,521 34,251 — 112,772

Amortization 175 18,944 13,097 — 32,216

General and administrative 7,754 1 2 — 7,757

Exploration 288 6,633 5,897 — 12,818

Pre-development, reclamation, and other 1,728 4,379 8,924 — 15,031

Total costs and expenses 9,945 108,478 62,171 — 180,594

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishment — — — — —

Fair value adjustments, net 2,243 — — — 2,243

Other, net 163 ( 2,540 ) ( 229 ) ( 3,706 ) ( 6,312 )

Interest expense, net of capitalized interest ( 4,145 ) ( 862 ) ( 3,795 ) 3,706 ( 5,096 )

Total other income (expense), net ( 1,739 ) ( 3,402 ) ( 4,024 ) — ( 9,165 )

Income (loss) from continuing operations before income and mining taxes ( 11,684 ) 36,093 15,560 — 39,969

Income and mining tax (expense) benefit ( 2,872 ) ( 3,153 ) ( 7,088 ) — ( 13,113 )

Income (loss) from continuing operations ( 14,556 ) 32,940 8,472 — 26,856

Equity income (loss) in consolidated subsidiaries 41,410 ( 3,046 ) 3,052 ( 41,416 ) —

Income (loss) from discontinued operations $ — $ — $ — $ — $ —

NET INCOME (LOSS) $ 26,854 $ 29,894 $ 11,524 $ ( 41,416 ) $ 26,856

OTHER COMPREHENSIVE INCOME (LOSS):

Change in fair value of derivative contracts designated as cash flow hedges ( 18,606 ) — — — ( 18,606 )

Other comprehensive income (loss) ( 18,606 ) — — — ( 18,606 )

COMPREHENSIVE INCOME (LOSS) $ 8,248 $ 29,894 $ 11,524 $ ( 41,416 ) $ 8,250

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED SEPTEMBER 30, 2019

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Revenue $ — $ 116,808 $ 82,661 $ — $ 199,469

COSTS AND EXPENSES

Costs applicable to sales (1)

— 79,367 61,585 — 140,952

Amortization 216 21,751 23,711 — 45,678

General and administrative 8,973 208 454 — 9,635

Exploration 430 5,010 453 — 5,893

Pre-development, reclamation, and other 15 4,465 371 — 4,851

Total costs and expenses 9,634 110,801 86,574 — 207,009

OTHER INCOME (EXPENSE), NET

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

Fair value adjustments, net 4,378 ( 1 ) — — 4,377

Other, net 4,557 ( 814 ) ( 3,017 ) ( 4,360 ) ( 3,634 )

Interest expense, net of capitalized interest ( 4,729 ) ( 838 ) ( 4,773 ) 4,360 ( 5,980 )

Total other income (expense), net 2,924 ( 1,653 ) ( 7,790 ) — ( 6,519 )

Income (loss) from continuing operations before income and mining taxes ( 6,710 ) 4,354 ( 11,703 ) — ( 14,059 )

Income and mining tax (expense) benefit 3,808 ( 3,740 ) ( 286 ) — ( 218 )

Income (loss) from continuing operations ( 2,902 ) 614 ( 11,989 ) — ( 14,277 )

Equity income (loss) in consolidated subsidiaries ( 11,371 ) ( 4 ) 95 11,280 —

NET INCOME (LOSS) $ ( 14,273 ) $ 610 $ ( 11,894 ) $ 11,280 $ ( 14,277 )

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Unrealized gain (loss) on hedges, net of tax of $363 for the three and nine months ended September 30, 2019 1,132 — — — 1,132

COMPREHENSIVE INCOME (LOSS) $ ( 13,141 ) $ 610 $ ( 11,894 ) $ 11,280 $ ( 13,145 )

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED SEPTEMBER 30, 2020

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash provided by (used in) activities of continuing operations 30,905 48,535 41,440 ( 41,416 ) 79,464

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

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 30,905 48,535 41,440 ( 41,416 ) 79,464

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures ( 74 ) ( 15,859 ) ( 7,063 ) — ( 22,996 )

Proceeds from the sale of assets — 730 — — 730

Purchase of investments ( 2,500 ) — — — ( 2,500 )

Sales of investments — — — — —

Proceeds from notes receivable — — — — —

Other — — ( 25 ) — ( 25 )

Investments in consolidated subsidiaries ( 41,410 ) — ( 6 ) 41,416 —

Cash provided by (used in) activities of operations ( 43,984 ) ( 15,129 ) ( 7,094 ) 41,416 ( 24,791 )

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

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ( 43,984 ) ( 15,129 ) ( 7,094 ) 41,416 ( 24,791 )

CASH FLOWS FROM FINANCING ACTIVITIES:

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

Payments on debt, capital leases, and associated costs ( 40,000 ) ( 4,009 ) ( 4,548 ) — ( 48,557 )

Silvertip Contingent Consideration — — — — —

Net intercompany financing activity 43,347 ( 38,968 ) 1 ( 4,379 ) — —

Other 114 — — — 114

Cash provided by (used in) activities of operations 3,461 ( 42,977 ) ( 8,927 ) — ( 48,443 )

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

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 3,461 ( 42,977 ) ( 8,927 ) — ( 48,443 )

Effect of exchange rate changes on cash and cash equivalents — 6 ( 16 ) — ( 10 )

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

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 9,618 ) ( 9,565 ) 25,403 — 6,220

Cash, cash equivalents and restricted cash at beginning of period 27,016 21,884 23,408 — 72,308

Cash, cash equivalents and restricted cash at end of period $ 17,398 $ 12,319 $ 48,811 $ — $ 78,528

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

THREE MONTHS ENDED SEPTEMBER 30, 2019

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash provided by (used in) activities of continuing operations ( 18,772 ) 24,553 24,935 11,280 41,996

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

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ( 18,772 ) 24,553 24,935 11,280 41,996

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures ( 239 ) ( 16,748 ) ( 13,691 ) — ( 30,678 )

Proceeds from the sale of assets — 26 — — 26

Purchase of investments — — — — —

Sales of investments 1,007 — — — 1,007

Proceeds from notes receivable — — — — —

Other 2 ( 44 ) ( 15 ) — ( 57 )

Investments in consolidated subsidiaries 11,372 45 ( 137 ) ( 11,280 ) —

Cash provided by (used in) activities of continuing operations 12,142 ( 16,721 ) ( 13,843 ) ( 11,280 ) ( 29,702 )

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

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 12,142 ( 16,721 ) ( 13,843 ) ( 11,280 ) ( 29,702 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock 73,781 — — — 73,781

Issuance of notes and bank borrowings, net of issuance costs 30,000 — — — 30,000

Payments on debt, capital leases, and associated costs ( 83,034 ) ( 3,305 ) ( 1,439 ) — ( 87,778 )

Net intercompany financing activity ( 6,842 ) ( 12,322 ) 1 19,164 1 — —

Other 301 — — — 301

Cash provided by (used in) activities of continuing operations 14,206 ( 15,627 ) 17,725 — 16,304

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

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 14,206 ( 15,627 ) 17,725 — 16,304

Effect of exchange rate changes on cash and cash equivalents — 74 ( 266 ) — ( 192 )

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

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 7,576 ( 7,721 ) 28,551 — 28,406

Cash, cash equivalents and restricted cash at beginning of period 4,043 16,669 18,563 — 39,275

Cash, cash equivalents and restricted cash at end of period $ 11,619 $ 8,948 $ 47,114 $ — $ 67,681

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

NINE MONTHS ENDED SEPTEMBER 30, 2020

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Revenue $ — $ 361,197 $ 195,947 $ — $ 557,144

COSTS AND EXPENSES

Costs applicable to sales (1)

— 214,997 106,707 — 321,704

Amortization 577 55,547 40,130 — 96,254

General and administrative 25,276 3 14 — 25,293

Exploration 998 18,613 11,448 — 31,059

Pre-development, reclamation, and other 1,850 12,353 26,058 — 40,261

Total costs and expenses 28,701 301,513 184,357 — 514,571

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishment — — — — —

Fair value adjustments, net 3,491 — — — 3,491

Other, net 8,701 ( 2,638 ) 688 ( 11,061 ) ( 4,310 )

Interest expense, net of capitalized interest ( 12,920 ) ( 2,331 ) ( 11,799 ) 11,061 ( 15,989 )

Total other income (expense), net ( 728 ) ( 4,969 ) ( 11,111 ) — ( 16,808 )

Income (loss) from continuing operations before income and mining taxes ( 29,429 ) 54,715 479 — 25,765

Income and mining tax (expense) benefit 166 ( 5,846 ) ( 6,338 ) — ( 12,018 )

Income (loss) from continuing operations ( 29,263 ) 48,869 ( 5,859 ) — 13,747

Equity income (loss) in consolidated subsidiaries 43,008 ( 10,221 ) 10,027 ( 42,814 ) —

Income (loss) from discontinued operations — — — — —

NET INCOME (LOSS) $ 13,745 $ 38,648 $ 4,168 $ ( 42,814 ) $ 13,747

OTHER COMPREHENSIVE INCOME (LOSS):

Change in fair value of derivative contracts designated as cash flow hedges ( 26,176 ) — — — ( 26,176 )

Other comprehensive income (loss) ( 26,176 ) — — — ( 26,176 )

COMPREHENSIVE INCOME (LOSS) $ ( 12,431 ) $ 38,648 $ 4,168 $ ( 42,814 ) $ ( 12,429 )

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

NINE MONTHS ENDED SEPTEMBER 30, 2019

SUMMARIZED STATEMENTS OF INCOME

THREE MONTHS ENDED MARCH 31, 2021

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

Guarantor Subsidiaries

Revenue $ — $ 121,770

COSTS AND EXPENSES

Costs applicable to sales (1)

— 220,680 183,870 — 404,550

Amortization 656 58,922 71,180 — 130,758

General and administrative 24,429 778 1,652 — 26,859

Exploration 1,116 8,219 5,991 — 15,326

Pre-development, reclamation, and other 255 8,397 4,967 — 13,619

Total costs and expenses 26,456 296,996 267,660 — 591,112

OTHER INCOME (EXPENSE), NET

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

Fair value adjustments, net 8,210 ( 9 ) — — 8,201

Other, net 14,648 ( 376 ) ( 4,230 ) ( 12,973 ) ( 2,931 )

Interest expense, net of capitalized interest ( 16,273 ) ( 1,738 ) ( 14,221 ) 12,973 ( 19,259 )

Total other income (expense), net 5,303 ( 2,123 ) ( 18,451 ) — ( 15,271 )

Income (loss) from continuing operations before income and mining taxes ( 21,153 ) ( 758 ) ( 68,010 ) — ( 89,921 )

Income and mining tax (expense) benefit 1,420 ( 4,888 ) 17,454 — 13,986

Gross profit (loss) $ ( 153 ) $ 27,971

Income (loss) from continuing operations $ 2,060 $ 12,223

Equity income (loss) in consolidated subsidiaries ( 56,200 ) ( 634 ) 355 56,479 —

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

Net income (loss) $ 2,060 $ 12,223

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:

Unrealized gain (loss) on debt securities, net of tax 59 — — — 59

Unrealized gain (loss) on hedges, net of tax of $363 for the three and nine months ended September 30, 2019 1,132 — — — 1,132

Other comprehensive income (loss) 1,191 — — — 1,191

COMPREHENSIVE INCOME (LOSS) $ ( 69,049 ) $ ( 6,280 ) $ ( 50,201 ) $ 56,479 $ ( 69,051 )

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2020

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 $ 12,764 $ 88,894 $ 22,576 $ ( 42,814 ) $ 81,420

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

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 12,764 $ 88,894 $ 22,576 $ ( 42,814 ) $ 81,420

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures ( 251 ) ( 36,394 ) ( 25,241 ) — ( 61,886 )

Proceeds from the sale of assets 4,500 745 — — 5,245

Purchase of investments ( 2,500 ) — — — ( 2,500 )

Sales of investments 19,802 — — — 19,802

Proceeds from notes receivable — — — — —

Other — — ( 225 ) — ( 225 )

Investments in consolidated subsidiaries ( 43,008 ) ( 38 ) 232 42,814 —

Cash provided by (used in) activities of continuing operations ( 21,457 ) ( 35,687 ) ( 25,234 ) 42,814 ( 39,564 )

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

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ( 21,457 ) ( 35,687 ) ( 25,234 ) 42,814 ( 39,564 )

CASH FLOWS FROM FINANCING ACTIVITIES:

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

Payments on debt, capital leases, and associated costs ( 130,000 ) ( 11,658 ) ( 8,513 ) — ( 150,171 )

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

Net intercompany financing activity 1,131 ( 56,439 ) 55,308 — —

Other ( 1,718 ) — — — ( 1,718 )

Cash provided by (used in) activities of operations 19,413 ( 68,097 ) 28,045 — ( 20,639 )

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

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 19,413 ( 68,097 ) 28,045 — ( 20,639 )

Effect of exchange rate changes on cash and cash equivalents 3 ( 29 ) 319 — 293

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

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 10,723 ( 14,919 ) 25,706 — 21,510

Cash, cash equivalents and restricted cash at beginning of period 6,675 27,238 23,105 — 57,018

Cash, cash equivalents and restricted cash at end of period $ 17,398 $ 12,319 $ 48,811 $ — $ 78,528

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2019

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash provided by (used in) activities of continuing operations ( 96,935 ) 76,116 16,925 56,479 52,585

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

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ( 96,935 ) 76,116 16,925 56,479 52,585

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures ( 349 ) ( 38,999 ) ( 39,517 ) — ( 78,865 )

Proceeds from the sale of assets — 836 94 — 930

Purchase of investments — — — — —

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

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

Other 2,034 69 ( 142 ) — 1,961

Investments in consolidated subsidiaries 56,112 130 237 ( 56,479 ) —

Cash provided by (used in) activities of continuing operations 67,074 ( 37,964 ) ( 39,328 ) ( 56,479 ) ( 66,697 )

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

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 67,074 ( 37,964 ) ( 39,328 ) ( 56,479 ) ( 66,697 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock 122,668 — — — 122,668

Issuance of notes and bank borrowings, net of issuance costs 45,000 — — — 45,000

Payments on debt, capital leases, and associated costs ( 180,841 ) ( 13,445 ) ( 6,765 ) — ( 201,051 )

Net intercompany financing activity 44,863 ( 48,628 ) 3,765 — —

Other ( 2,958 ) — — — ( 2,958 )

Cash provided by (used in) activities of continuing operations 28,732 ( 62,073 ) ( 3,000 ) — ( 36,341 )

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

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 28,732 ( 62,073 ) ( 3,000 ) — ( 36,341 )

Effect of exchange rate changes on cash and cash equivalents — 76 ( 11 ) — 65

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

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 1,129 ) ( 23,845 ) ( 25,414 ) — ( 50,388 )

Cash, cash equivalents and restricted cash at beginning of period 12,748 32,793 72,528 — 118,069

Cash, cash equivalents and restricted cash at end of period $ 11,619 $ 8,948 $ 47,114 $ — $ 67,681

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 17 – COMMITMENTS AND CONTINGENCIES

Mexico VAT Litigation

Included in non-current receivables as of March 31, 2021 are $ 25.6 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 as well as refiling VAT refund requests).

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 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

3 unchanged sentences

In accordance with generally accepted accounting principles, although Coeur Mexicana has satisfied its contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units-of-production basis as ounces are sold to Franco-Nevada.

At September 30, 2020 the remaining unamortized balance was $ 10.0 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

At March 31, 2021 the remaining unamortized balance was $ 9.0 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

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, for which deliveries were made to the counterparty in 2019.

The Amended Sales Contract also includes 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 third quarter of 2020, the Kensington mine delivered $ 5.2 million.

The remaining deliveries of $ 9.9 million under the June 2020 Prepayment 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 remaining value of the accrued liability by December 31, 2020.

From time to time, the Amended Sales Contract has been further amended to allow for additional prepayments, the latest occurring in June 2020 to include options for Coeur to receive up to two additional prepayments of up to $15.0 million.

In December 2020, Coeur exercised the option to receive the second $ 15.0 million prepayment (the “December 2020 Prepayment”).

In the first quarter of 2021, the Kensington mine delivered $ 8.0 million under the December 2020 Prepayment.

The remaining deliveries of $ 7.1 million under the December 2020 Prepayment 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 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, 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 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.

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.

Mexico VAT Litigation

Included in non-current receivables as of September 30, 2020 are $ 23.5 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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

During 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 a contingent consideration payment due in conjunction with the acquisition of the Company’s Silvertip property.

For more details, please see Note 21 -- Commitments and Contingencies in the 2020 10-K.

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 September 30, 2020 and December 31, 2019, the Company had surety bonds totaling $ 212.8 million and $ 215.6 million, respectively, in place as financial support for future reclamation and closure costs.

As of March 31, 2021 and December 31, 2020, the Company had surety bonds totaling $ 312.0 million and $ 311.9 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 and from time-to-time, the Company may be required to post collateral, including cash, to support these instruments.

1 unchanged sentence

Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure.

The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

NOTE 18 – DISCONTINUED OPERATIONS

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 (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 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, 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 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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

NOTE 18 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION

Accrued liabilities and other consist of the following:

In thousands September 30, 2020 December 31, 2019

In thousands March 31, 2021 December 31, 2020

Accrued salaries and wages $ 21,028 $ 30,457

Silvertip contingent consideration — 25,000

Deferred revenue (1)

11,463 16,672

Income and mining taxes 12,099 26,118

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(1) See Note 17 -- Commitments and Contingencies for additional details on deferred revenue liabilities

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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 in the three and nine months ended September 30, 2020 and 2019:

In thousands September 30, 2020 September 30, 2019

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 three months ended March 31, 2021 and 2020:

In thousands March 31, 2021 March 31, 2020

Cash and cash equivalents $ 154,066 $ 52,895

2 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements