What changed in this filing

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Item 1. Financial Statements

2022-05-04 compared with 2021-10-27 · 222 added, 380 removed, 663 unchanged (48% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

ASSETS Notes In thousands, except share data

13 unchanged sentences

Equity securities 6 161,894 132,197

Receivables 4, 17 — 26,447

Other 63,086 57,249

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Common stock, par value $ 0.01 per share;

authorized 300,000,000 shares, 256,928,852 issued and outstanding at September 30, 2021 and 243,751,283 at December 31, 2020

authorized 300,000,000 shares, 280,834,764 issued and outstanding at March 31, 2022 and 256,919,803 at December 31, 2021

Additional paid-in capital 3,834,896 3,738,347

7 unchanged sentences

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

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

2021 2020 2021 2020

Three Months Ended March 31,

Notes In thousands, except share data

23 unchanged sentences

NET INCOME (LOSS) PER SHARE 15

Basic income (loss) per share:

Basic $ 0.03 $ 0.01

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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

2021 2020 2021 2020

Three Months Ended March 31,

Notes In thousands

7 unchanged sentences

Stock-based compensation 11 2,267 4,256

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

Write-downs 5 7,595 —

10 unchanged sentences

Proceeds from the sale of assets 15,371 4,588

Purchase of investments ( 1,079 ) ( 2,500 ) ( 1,955 ) ( 2,500 )

Sale of investments — 935

2 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of common stock 15 98,397 —

Issuance of notes and bank borrowings, net of issuance costs 8 85,000 367,493

Payments on debt, finance leases, and associated costs 7, 8 ( 103,267 ) ( 243,967 )

Silvertip contingent consideration 17 — — — ( 18,750 )

Other ( 3,403 ) ( 3,925 )

18 unchanged sentences

Other comprehensive income (loss) — — — — ( 4,758 ) ( 4,758 )

Common stock issued under "at the market"

stock offering 22,053 220 98,279 — — 98,499

Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,862 19 ( 1,730 ) — — ( 1,711 )

Balances at March 31, 2022 280,834 $ 2,808 $ 3,834,896 $ ( 2,931,760 ) $ ( 5,970 ) $ 899,974

Net income (loss) — — — 32,146 — 32,146

Other comprehensive income (loss) — — — — ( 6,043 ) ( 6,043 )

Common stock issued for investment 12,786 128 118,649 118,777

Common stock issued/canceled under long-term incentive plans and director fees and options, net 792 7 3,016 — — 3,023

Balances at June 30, 2021 257,048 $ 2,570 $ 3,732,296 $ ( 2,873,914 ) $ 7,457 $ 868,409

Net income (loss) — — — ( 54,768 ) — ( 54,768 )

Other comprehensive income (loss) — — — — ( 2,553 ) ( 2,553 )

Common stock issued/canceled under long-term incentive plans and director fees and options, net ( 119 ) ( 1 ) 2,652 — — 2,651

Balances at September 30, 2021 256,929 $ 2,569 $ 3,734,948 $ ( 2,928,682 ) $ 4,904 $ 813,739

In thousands Common

8 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

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

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Use of Estimates

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

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

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.

2 unchanged sentences

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

Ore on Leach Pads

The heap leach process extracts silver and gold by placing ore on an impermeable pad and applying a diluted cyanide solution that dissolves a portion of the contained silver and gold, which are then recovered in metallurgical processes.

The Company uses several integrated steps to scientifically measure the metal content of ore placed on the leach pads.

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

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

A metallurgical reconciliation with the data collected from the mining operation is completed with appropriate adjustments made to previous estimates.

The crushed ore is then transported to the leach pad for application of the leaching solution.

As the leach solution is collected from the leach pads, it is continuously sampled for assaying.

The quantity of leach solution is measured by flow meters throughout the leaching and precipitation process.

After precipitation, the product is converted to doré at the Rochester mine and a form of gold concentrate at the Wharf mine, representing the final product produced by each mine.

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

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

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

The estimate of both the ultimate recovery expected over time and the quantity of metal that may be extracted relative to the time the leach process occurs requires the use of estimates, which are inherently inaccurate due to the nature of the leaching process.

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

The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than 20 years of leach pad operations at the Rochester mine and 30 years of leach pad operations at the Wharf mine.

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

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

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

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

In June 2021, the Company updated the

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

recovery rate assumption on the Stage IV leach pad at Rochester, based on the historical performance of the leach pad since the third quarter of 2019.

This change resulted in an adjustment to the ending ore on leach pads balance with the resulting non-cash charges allocated between Costs Applicable to Sales and Amortization in the amounts of $8.6 million and $2.2 million, respectively.

Revenue Recognition

4 unchanged sentences

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,

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

Three Months Ended March 31,

In thousands 2022 2021

3 unchanged sentences

In December 2021, the Company received a $ 15.0 million prepayment (the “December 2021 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 17).

In the first half of 2021, 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 July 2021, with an effective date as of June 28, 2021, 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 2021 (the “June 2021 Prepayment”), of which $ 7.5 million in gold ounces were delivered in the third quarter of 2021.

In March 2022, the Company exercised an option to receive a $ 10.0 million prepayment (the “March 2022 Prepayment).

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.

1 unchanged sentence

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

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

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

Three Months Ended March 31,

In thousands 2022 2021

3 unchanged sentences

Closing Balance $ 25,155 $ 7,104

Recently Adopted 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.

ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application.

ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company).

Early adoption is permitted.

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 March 2022, the FASB issued ASU 2022-01, “ Derivatives and Hedging (Topic 815):

Fair Value Hedging—Portfolio Layer Method ” which is intended to make amendments to the fair value hedge accounting previously issued in ASU 2017-12 “ Derivatives and Hedging (Topic 815):

Targeted Improvements to Accounting for Hedging Activities ”.

The new standard is effective for reporting periods beginning after December 15, 2022.

The standard introduced the portfolio layer method allowing multiple hedged layers of a single closed portfolio when applying fair value hedge accounting.

The Company plans to adopt the new derivatives and hedging standards effective January 1, 2023 and does not expect the new derivatives and hedging standard to have a material effect on our financial position, results of operations or cash flows.

Coeur Mining, Inc.

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NOTE 3 – SEGMENT REPORTING

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

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

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

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

In June 2021, Silvertip repurchased from Silvertip Resources Investment Cayman Ltd.

a net smelter returns royalty of 1.429% on the first 1,434,000 metric tonnes of mineralized material mined, and 1.00% thereafter for consideration of $7.0 million .

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

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

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

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

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

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

Three Months Ended September 30, 2021 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Three Months Ended March 31, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 40,074 $ 11,052 $ 44,059 $ 34,266 $ — $ — $ 129,451

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(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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)

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

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

Other, net (3)

( 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

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

(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail

Nine Months Ended September 30, 2021 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

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Notes to Consolidated Financial Statements

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

Gold sales $ 104,732 $ 30,508 $ 159,200 $ 128,199 $ — $ — $ 422,639

Silver sales 89,332 41,650 — 1,640 1,230 — 133,852

Zinc sales — — — — ( 662 ) — ( 662 )

Lead sales — — — — 1,315 — 1,315

Metal sales 194,064 72,158 159,200 129,839 1,883 — 557,144

Costs and Expenses

Costs applicable to sales (1)

89,050 54,396 92,419 68,182 17,657 — 321,704

Amortization 32,357 9,194 36,298 9,625 7,761 1,019 96,254

Exploration 4,373 2,529 7,746 639 7,073 8,699 31,059

Other operating expenses 6,279 3,835 7,298 451 17,770 29,921 65,554

Other income (expense)

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

Interest expense, net ( 667 ) ( 851 ) ( 819 ) ( 149 ) ( 603 ) ( 12,900 ) ( 15,989 )

Other, net (3)

( 2,866 ) ( 2,580 ) 1 ( 12 ) 2,005 ( 858 ) ( 4,310 )

Income and mining tax (expense) benefit ( 7,938 ) ( 186 ) ( 854 ) ( 4,806 ) ( 234 ) 2,000 ( 12,018 )

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

Segment assets (2)

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

Capital expenditures $ 16,611 $ 20,634 $ 14,050 $ 1,219 $ 8,630 $ 742 $ 61,886

(1) Excludes amortization

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

(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail

Assets September 30, 2021 December 31, 2020

Assets March 31, 2022 December 31, 2021

Total assets for reportable segments $ 1,509,637 $ 1,424,934

3 unchanged sentences

Geographic Information

Long-Lived Assets September 30, 2021 December 31, 2020

Long-Lived Assets March 31, 2022 December 31, 2021

United States $ 774,536 $ 704,007

3 unchanged sentences

Total $ 1,250,593 $ 1,172,766

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

2021 2020 2021 2020

Revenue Three months ended March 31,

United States $ 105,331 $ 121,772

Mexico 83,073 80,345

Canada — — — 1,883

Total $ 188,404 $ 202,117

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 4 – RECEIVABLES

Receivables consist of the following:

In thousands September 30, 2021 December 31, 2020

In thousands March 31, 2022 December 31, 2021

Current receivables:

2 unchanged sentences

Income tax receivable 8,827 8,418

Avino note receivable 4,709 —

Other 312 705

$ 29,221 $ 32,417

Non-current receivables:

VAT receivable (1)

Total receivables $ 22,956 $ 49,931

(1) Represents VAT that was paid to the Mexican government associated with Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation.

While the Company continues to pursue recovery from the Mexican government (including through ongoing litigation and potential international arbitration), the Company wrote down the carrying value of the receivable at September 30, 2021.

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

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:

In thousands September 30, 2021 December 31, 2020

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

In thousands March 31, 2022 December 31, 2021

Concentrate $ 1,943 $ 1,643

10 unchanged sentences

Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method.

At the end of the third quarter of 2021, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value which resulted in a non-cash write down of $ 6.0 million (approximately $ 5.3 million was recognized in Costs Applicable to Sales and $ 0.7 million in Amortization).

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

At the end of the first quarter of 2022, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value which resulted in a non-cash write down of $ 8.6 million ($ 7.6 million was recognized in Costs Applicable to Sales and $ 1.0 million in Amortization).

NOTE 6 – INVESTMENTS

1 unchanged sentence

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

At September 30, 2021

At March 31, 2022

In thousands Cost Gross

5 unchanged sentences

9,455 ( 4,074 ) — 5,381

Avino Silver & Gold Mines Ltd 13,720 ( 560 ) — 13,160

Other 2,233 — — 2,233

4 unchanged sentences

Equity Securities

Metalla Royalty & Streaming Ltd.

Victoria Gold Corp.

$ 128,710 $ ( 4,499 ) $ — $ 124,211

1 unchanged sentence

9,455 ( 1,469 ) — 7,986

Other 2 ( 1 ) — 1

Equity securities $ 138,165 $ ( 5,968 ) $ — $ 132,197

Changes in the fair value of the Company’s investment in equity securities are recognized each period in the Condensed Consolidated Statement of Comprehensive Income (Loss) in Fair value adjustments, net .

Changes in the fair value of the Company’s investment in equity securities are recognized each period in the Consolidated Statement of Comprehensive Income (Loss) in Fair value adjustments, net .

See Note 12 -- Fair Value Measurements for additional details.

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, resulting in a realized gain of $ 0.8 million.

On May 10, 2021, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Orion Co-VI Ltd.

Pursuant to the Exchange Agreement, Orion sold 11,067,714 common shares of Victoria Gold Corp., a British Columbia company (“Victoria”) (representing approximately 17.8 % of Victoria’s outstanding common shares) to the Company.

As consideration for the purchase of Victoria shares, Coeur issued 12,785,485 shares of its common stock (approximately 4.9 % of issued and outstanding shares) to Orion.

The Exchange Agreement provides that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.

The Company determined that the potential for additional share consideration pursuant to the terms of the Exchange Agreement represents an embedded derivative that requires bifurcation.

The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expires on October 31, 2021.

The accounting treatment of derivative financial instruments requires that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date.

See Note 12 -- Fair Value Measurements and Note 13 -- Derivative Financial Instruments for additional details.

NOTE 7 – LEASES

Right of Use Assets and Liabilities

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

On March 21, 2022, the Company closed the sale of its La Preciosa silver project.

In connection with the closing of the transaction, the Company received 14,000,000 common shares of Avino Silver & Gold Mines Ltd.

(“Avino”) (representing approximately 12.0 % of Avino’s outstanding common shares).

See Note 19 -- Dispositions for additional details on the sale.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

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

NOTE 7 – LEASES

Right of Use Assets and Liabilities

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

Three months ended March 31,

In thousands 2022 2021

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 2022 2021

5 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

In thousands September 30, 2021 December 31, 2020

In thousands March 31, 2022 December 31, 2021

Operating Leases

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Notes to Consolidated Financial Statements

As of September 30, 2021 (In thousands)

As of March 31, 2022 (In thousands)

Operating leases Finance leases

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NOTE 8 – DEBT

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

In thousands Current Non-Current Current Non-Current

1 unchanged sentence

$ — $ 368,508 $ — $ 368,273

2024 Senior Notes, net (2)

— — — 227,590

Revolving Credit Facility (2)

— 55,000 — 65,000

Finance lease obligations 29,620 32,360 29,821 24,407

$ 29,620 $ 455,868 $ 29,821 $ 457,680

(1) Net of unamortized debt issuance costs of $ 7.0 million and $ 0.0 million at September 30, 2021 and December 31, 2020, respectively.

(2) Net of unamortized debt issuance costs of $ 0.0 million and $ 2.4 million at September 30, 2021 and December 31, 2020, respectively.

(3) Unamortized debt issuance costs of $ 2.5 million and $ 1.5 million at September 30, 2021 and December 31, 2020, respectively, included in Other Non-Current Assets .

(1) Net of unamortized debt issuance costs of $ 6.5 million and $ 6.7 million at March 31, 2022 and December 31, 2021, respectively.

(2) Unamortized debt issuance costs of $ 2.2 million and $ 2.4 million at March 31, 2022 and December 31, 2021, respectively, included in Other Non-Current Assets .

2029 Senior Notes

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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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.

For more details, please see Note 8 -- Debt contained in the 2021 10-K.

Revolving Credit Facility

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.

At September 30, 2021, the Company had $ 20.0 million drawn at an interest rate of 2.3 % and $ 35.0 million in outstanding letters of credit und er the RCF.

At March 31, 2022, the Company had $ 215.0 million available under its $ 300.0 million revolving credit facility (the “RCF”) provided pursuant to the credit agreement entered into in September 2017 (as amended, the “Credit Agreement”) among the Company, as borrower, and certain subsidiaries of the Company, as guarantors, and Bank of America, N.A, as administrative agent (the “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 (the “RCF Lenders”).

At March 31, 2022, the Company had $ 55.0 million drawn at an interest rate of 2.7 % and $ 30.0 million in outstanding letters of credit under the RCF.

On May 2, 2022, the Company entered into an amendment (the “Amendment”) to the RCF, by and among the Company, certain subsidiaries of the Company, as guarantors, the lenders party thereto and the Agent.

The Amendment, among other things, increases the maximum principal amount of the RCF by $ 90.0 million in incremental loans and commitments to an aggregate of $ 390.0 million.

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, 2021, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester and Kensington .

Coeur secured a finance lease package for nearly $60 million during the quarter, a portion of which has been funded as of September 30, 2021.

The package is earmarked for planned equipment purchases for the project in 2021 and 2022, and has an interest rate of 5.20%.

In the three months ended March 31, 2022, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester and Kensington.

Coeur secured a finance lease package for nearly $ 60 million in 2021, a portion of which has been funded as of March 31, 2022.

The package is earmarked for planned equipment purchases for POA 11 in 2022, and has an interest rate of 5.22 %.

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 Consolidated Financial Statements

Interest Expense

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

Three Months Ended March 31,

In thousands 2022 2021

7 unchanged sentences

Total interest expense, net of capitalized interest $ 4,568 $ 4,910

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 9 – RECLAMATION

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On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.

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,

Changes to the Company’s asset retirement obligations are as follows:

Three Months Ended March 31,

In thousands 2022 2021

3 unchanged sentences

Asset retirement obligation - Ending $ 184,326 $ 141,412

The Company accrued $ 2.0 million and $ 2.2 million at each of September 30, 2021 and December 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, 2021 and 2020 by significant jurisdiction:

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

2021 2020 2021 2020

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, 2022 and 2021 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 $ ( 10,130 ) $ ( 1,199 ) $ ( 8,531 ) $ ( 1,625 )

3 unchanged sentences

$ 9,376 $ ( 1,694 ) $ 14,846 $ ( 12,786 )

During the third quarter of 2021, the Company reported estimated income and mining tax expense of approximately $ 6.4 million, resulting in an effective tax rate of ( 13.2 )%.

This compares to income tax expense of $ 13.1 million for an effective tax rate of 32.8% during the third quarter of 2020.

During the first quarter of 2022, the Company reported estimated income and mining tax expense of approximately $ 1.7 million, resulting in an effective tax rate of 18.1 %.

This compares to income tax expense of $ 12.8 million for an effective tax rate of 86.1 % during the first quarter of 2021.

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

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) foreign exchange rates;

(v) percentage depletion;

(vi) the non-recognition of tax assets;

and (vii) the impact of uncertain tax positions.

(i) the sale of non-core assets;

(ii) the non-recognition of tax assets;

(iii) variations in our income before income taxes;

(iv) geographic distribution of that income;

(v) mining taxes;

(vi) foreign exchange rates;

(vii) the impact of uncertain tax positions;

and (viii) percentage depletion.

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

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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.

There are a number

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

For additional information, please see the section titled “Risk Factors” in the 2021 10-K.

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federal jurisdiction and from 2016 forward for certain other foreign jurisdictions.

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 $ 1.5 million in the next twelve months.

At September 30, 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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

part of its income tax expense.

At September 30, 2021 and December 31, 2020, the amount of accrued income-tax-related interest and penalties was $ 0.4 million and $ 1.1 million, respectively.

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 by less than $ 0.1 million in the next twelve months.

At March 31, 2022 and December 31, 2021, the Company had $ 0.0 million and $ 0.3 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 March 31, 2022 and December 31, 2021, the amount of accrued income-tax-related interest and penalties was $ 0.0 million and $ 0.4 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, 2021 was $ 2.7 million and $ 10.2 million, respectively, compared to $ 2.0 million and $ 6.3 million in the three and nine months ended September 30, 2020.

At September 30, 2021, there was $ 11.9 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.6 years.

The following table summarizes the grants awarded during the nine months ended September 30, 2021:

Stock-based compensation expense in the three months ended March 31, 2022 and 2021 was $ 2.3 million and $ 4.3 million, respectively.

At March 31, 2022, there was $ 13.7 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.9 years.

The following table summarizes the grants awarded during the three months ended March 31, 2022:

Grant date Restricted

3 unchanged sentences

February 22, 2022 1,700,619 $ 4.21 1,067,118 $ 4.38

May 12, 2021 893,329 $ 9.40 593,577 $ 10.19

NOTE 12 – FAIR VALUE MEASUREMENTS

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

Three Months Ended March 31,

In thousands 2022 2021

1 unchanged sentence

Realized gain (loss) on equity securities — 769

Exchange agreement embedded derivative 9,269 — 9,933 —

Termination of gold zero cost collars ( 3,139 ) —

Fair value adjustments, net $ 10,605 $ ( 3,799 )

1 unchanged sentence

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

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, 2021

Fair Value at March 31, 2022

In thousands Total Level 1 Level 2 Level 3

Equity securities $ 139,740 $ 139,740 $ — $ —

Gold zero cost collars

1,560 — 1,560 —

Foreign currency forward exchange contracts

3,344 — 3,344 —

Equity securities including warrants $ 164,127 $ 161,894 $ 2,233 $ —

Provisional metal sales contracts 461 — 461 —

$ 164,588 $ 161,894 $ 2,694 $ —

Exchange agreement embedded derivative $ — $ — $ — $ —

Gold forwards

$ 1,832 $ — $ 1,832 $ —

Provisional metal sales contracts 46 — 46 —

$ 1,878 $ — $ 1,878 $ —

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Fair Value at December 31, 2021

In thousands Total Level 1 Level 2 Level 3

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

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

Equity securities $ 132,197 $ 132,197 $ — $ —

Provisional metal sales contracts 86 — 86 —

6 unchanged sentences

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

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

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

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

The Company’s common share purchase warrants received as consideration in the La Preciosa project sale are valued using the pricing model with inputs derived from observable market data, including quoted market prices and quoted interest curve rates.

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.

As described in Note 6 - Investments , the Exchange Agreement provides that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.

The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.

The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expires on October 31, 2021.

The fair value of the outstanding embedded derivative was determined using a pricing model with inputs derived from observable market data, including stock prices, stock price volatility and risk-free rates and other unobservable inputs such as Monte Carlo simulations and probabilities of Coeur being contractually obligated to make a payment.

As the model inputs are estimated based on observable and unobservable data, the Company classifies this embedded derivative in Level 3 of the fair value hierarchy, a change in these unobservable inputs may result in a significantly higher or lower fair value measurement.

As of September 30, 2021, the fair value of the exchange agreement embedded derivative was $ 0 .

No assets or liabilities were transferred between fair value levels in the nine months ended September 30, 2021.

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

As further discussed in Note 19 — Dispositions, the consideration for the sale of La Preciosa project included two royalties, a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, and contingent consideration of $ 0.25 per silver equivalent ounce (adjusted for inflation) on any new mineral reserves discovered and declared outside of the current resources area at the La Preciosa project, up to a maximum payment of $ 50.0 million.

The fair value of the royalties and the contingent consideration assets were $ 11.2 million and $ 1.2 million, respectively, valued as of the date of closing of the transaction and are measured at fair value on a non-recurring basis.

The fair value of the royalties and the contingent consideration were valued using Monte Carlo simulation models.

The model inputs include significant unobservable inputs and involve significant management judgment.

The significant unobservable inputs included assumptions related to metal prices which assumed silver prices ranging from $ 22 to $ 25 per ounce and gold prices ranging from $ 1,930 to $ 1,700 per ounce as well as volatility assumptions for silver and gold prices ( 33.5 % and 19.0 %, respectively), and an assumed weighted average cost of capital of 15.5 %.

Such instruments are classified within Level 3 of the fair value hierarchy.

Coeur Mining, Inc.

1 unchanged sentence

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 three and nine months ended September 30, 2021.

Three Months Ended September 30, 2021

In thousands Balance at the beginning of the period Initial valuation Revaluation Settlements Balance at the

Exchange agreement embedded derivative $ 9,269 $ — $ ( 9,269 ) $ — $ —

Nine Months Ended September 30, 2021

In thousands Balance at the beginning of the period Initial valuation Revaluation Settlements Balance at the

Exchange agreement embedded derivative $ — $ 9,933 $ ( 9,933 ) $ — $ —

The fair value of financial assets and liabilities carried at book value in the financial statements at September 30, 2021 and December 31, 2020 is presented in the following table:

September 30, 2021

The following table presents the changes in the fair value of the Company's Level 3 financial assets:

In thousands Fair value at December 31, 2021 Initial valuation Revaluation Fair value at March 31, 2022

Royalties $ — $ 11,200 $ — $ 11,200

Contingent consideration $ — $ 1,150 $ — $ 1,150

$ — $ 12,350 $ — $ 12,350

No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2022.

The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 2022 and December 31, 2021 is presented in the following table:

March 31, 2022

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

Promissory note $ 4,709 $ 4,709 $ — $ 4,709 $ —

Deferred cash consideration $ 7,350 $ 7,350 $ — $ 7,350 $ —

2029 Senior Notes (1)

14 unchanged sentences

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

Also included in the consideration for the sale of La Preciosa project was a promissory note payable to the Company that matures in March 2023 and deferred cash consideration payable on the first anniversary of initial production from any portion of the La Preciosa project.

These assets were valued using the pricing model with inputs derived from observable market data, including synthetic credit rating and quoted discount rate.

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.

NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES

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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.

Exchange Agreement Embedded Derivative

The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.

The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expires on October 31, 2021.

As of September 30, 2021, the fair value of the exchange agreement embedded derivative was $0.

At September 30, 2021, the Company had the following derivative instruments that settle as follows:

Zero Cost Collars

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 were 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 was lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively.

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

In the first quarter of 2022, the Company voluntarily de-designated hedge accounting for the zero cost collars and subsequently terminated the arrangements.

The cost to terminate the zero cost collars was $ 7.7 million, of which $ 3.1 million was recognized in earnings and the remaining $ 4.6 million, which represents the fair value of the zero cost collars on the date of de-designation, was retained in AOCI and will be recognized in earnings as the forecasted transactions occur.

At March 31, 2022, the Company had the following derivative instruments that settle as follows:

In thousands except average prices and notional ounces 2022 2023 and Thereafter

3 unchanged sentences

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

September 30, 2021

March 31, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

3 unchanged sentences

Provisional metal sales contracts $ 86 $ 162

The following represent mark-to-market gains (losses) on derivative instruments in the three and nine months ended September 30, 2021 and 2020, 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, 2022 and 2021, respectively (in thousands):

Three Months Ended March 31,

Financial statement line Derivative 2022 2021

Revenue Provisional metal sales contracts $ 492 $ ( 559 )

Fair value adjustments, net Exchange agreement embedded derivative 9,269 — 9,933 —

Fair value adjustments, net Terminated zero cost collars ( 3,139 ) —

$ ( 2,647 ) $ ( 559 )

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.

To protect the Company’s exposure to fluctuations in metal prices the Company entered into forward contracts.

The contracts are net settled monthly and if the actual price of gold at the time of expiration is lower than the fixed price or higher than the fixed 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.

2 unchanged sentences

Notes to Condensed Consolidated Financial Statements

At September 30, 2021, the Company had the following derivative cash flow hedge instruments that settle as follows:

At March 31, 2022, the Company had the following derivative cash flow hedge instruments that settle as follows:

In thousands except average prices and notional ounces 2022 2023 and Thereafter

Gold put options

Average gold strike price per ounce $ 1,600 $ 1,630

Notional ounces 39,675 132,000

Gold call options

Average gold strike price per ounce $ 1,882 $ 2,038

Gold forwards

Average gold fixed price per ounce $ 1,955 $ 1,956

Notional ounces 157,000 75,000

Foreign currency forward exchange contracts - Mexican Peso

Average Mexican Peso exchange rate $ 25.43 $ —

Notional US dollar $ 15,000 $ —

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

Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of 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.

1 unchanged sentence

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

As of September 30, 2021, the Company had $ 4.9 million of net after-tax gain in AOCI related to losses from cash flow hedge transactions, of which $ 4.6 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.

As of March 31, 2022, the Company had $ 1.8 million of net after-tax loss in AOCI related to losses from cash flow hedge transactions, of which $ 1.8 million of net after-tax losses 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.

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

September 30, 2021

March 31, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

Gold zero cost collars $ 1,560 $ —

Foreign currency forward exchange contracts 3,344 —

Gold forwards $ — $ 1,832

December 31, 2021

1 unchanged sentence

Gold zero cost collars $ — $ 1,212

Foreign currency forward exchange contracts 13,747 —

$ 13,747 $ 24,883

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the quarter ended March 31, 2022 and 2021, respectively (in thousands).

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 AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2021 and 2020, respectively (in thousands).

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

2021 2020 2021 2020

Three Months Ended March 31,

Amount of Gain (Loss) Recognized in AOCI

Gold forwards $ ( 1,832 ) $ —

Gold zero cost collars ( 3,386 ) 28,547

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Amount of (Gain) Loss Reclassified From AOCI to Earnings

Gold forwards $ — $ —

Gold zero cost collars 460 392

6 unchanged sentences

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

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

Three Months Ended March 31,

In thousands 2022 2021

1 unchanged sentence

Silvertip ongoing carrying costs 6,159 6,921

Silvertip temporary suspension costs — 2,768 — 10,107

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

Asset retirement accretion 3,463 2,905

2 unchanged sentences

Other, net consists of the following:

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

Three Months Ended March 31,

In thousands 2022 2021

1 unchanged sentence

Gain (loss) on sale of assets 1,831 4,053

VAT write-down ( 25,982 ) — ( 25,982 ) —

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

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

Gain (loss) on Silvertip contingent consideration — — — 955

Other 465 347

Other, net $ 1,737 $ 3,627

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 15 – NET INCOME (LOSS) PER SHARE

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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, 2021, there were 1,513,288 and 1,489,158 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.

Similarly, 182,803 and 1,722,014 common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2020, respectively.

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

For the three months ended March 31, 2022 and 2021, there were 1,151,073 and 112,610 common stock equivalents, respectively, related to equity-based awards that were not included in the diluted earnings per share calculation as the shares would be antidilutive.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three months ended March 31,

In thousands except per share amounts 2022 2021

6 unchanged sentences

Basic $ 0.03 $ 0.01

$ ( 0.21 ) $ 0.11 $ ( 0.08 ) $ 0.06

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

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

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

At September 30, 2021, the Company had not elected to sell any shares of its common stock under the ATM Program.

Diluted $ 0.03 $ 0.01

On March 18, 2022, the Company completed a $ 100.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “Equity Offering”).

The Equity Offering was conducted pursuant to an ATM Equity Offering Sales Agreement (the “Sales Agreement”), entered into on April 23, 2020 between the Company and BofA Securities, Inc.

and RBC Capital Markets, LLC as sales agents.

The Company sold a total of 22,053,275 shares of its common stock in the Equity Offering at an average price of $ 4.53 per share, raising net proceeds (after sales commissions) of $ 98.0 million.

Proceeds from the Equity Offering were used to repay outstanding amounts under the RCF.

NOTE 16 - SUPPLEMENTAL GUARANTOR INFORMATION

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SUMMARIZED BALANCE SHEET

SEPTEMBER 30, 2021

MARCH 31, 2022

In thousands Coeur Mining, Inc.

12 unchanged sentences

Restricted assets 1,493 206

Equity and debt securities 139,740 —

Equity securities 161,894 —

Net investment in subsidiaries 772,325 54,326

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SUMMARIZED STATEMENTS OF INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2021

THREE MONTHS ENDED MARCH 31, 2022

In thousands Coeur Mining, Inc.

2 unchanged sentences

Gross profit (loss) $ ( 208 ) $ ( 289 )

Income (loss) from continuing operations $ ( 20,560 ) $ 12,074

Net income (loss) $ 7,682 $ ( 11,592 )

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 17 – COMMITMENTS AND CONTINGENCIES

Mexico Litigation Matters

As of September 30, 2021, $26.0 million is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.

As of March 31, 2022, $ 26.0 million is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.

de C.V.’s (“Coeur Mexicana’s”) prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016.

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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 has continued at the administrative, appeals court and supreme court levels, most of which has been determined unfavorably to Coeur (including as recently as the third quarter of 2021) based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous.

Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation has continued at the administrative, appeals court and supreme court levels, most of which has been determined unfavorably to Coeur based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous.

While the Company believes that it remains legally entitled to be refunded the full amount of the VAT receivable and intends to rigorously continue its VAT recovery efforts, based on the continued failure to recover the VAT receivable and recent unfavorable Mexican court decisions, the Company determined to write down the carrying value of the VAT receivable at September 30, 2021.

The write down of $ 26.0 million is presented in Other, net on the Condensed Consolidated Statement of Comprehensive Income (Loss).

Coeur Mexicana may still elect to initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA.

In March 2022, Coeur Mexicana filed an updated notice of intent to initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA, in connection with this dispute and may elect to formally proceed with arbitration under NAFTA.

Outcomes in NAFTA arbitration and the process for recovering funds even if there is a successful outcome in NAFTA arbitration can be lengthy and unpredictable.

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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, 2021 the remaining unamortized balance was $ 8.5 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

At March 31, 2022 the remaining unamortized balance was $ 7.8 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”).

From time to time, the Amended Sales Contract has been further amended to allow for additional prepayments, the latest occurring in July 2021, with an effective date as of June 28, 2021, to include options for Coeur to receive up to two additional prepayments of up to $15.0 million.

In December 2020, Coeur exercised an option to receive the $ 15.0 million December 2020 Prepayment.

In the first half of 2021, the Kensington mine delivered $ 15.0 million in satisfaction of the December 2020 Prepayment.

In June 2021, Coeur exercised an option to receive the $ 15.0 million June 2021 Prepayment, and delivered $ 7.5 million against that $ 15.0 million in the third quarter of 2021.

The remaining deliveries of $ 7.6 million under the June 2021 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, 2021.

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, 2021 and December 31, 2020, the Company had surety bonds totaling $ 314.5 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 or letters of credit which reduce availability under its revolving credit facility, to support these instruments.

As the specific requirements are met, the beneficiary of the associated instrument

In June 2019, Coeur amended its existing sales and purchase contract with a metal sales counterparty for gold concentrate from its Kensington mine (the “Amended Sales Contract”).

From time to time thereafter, the Amended Sales Contract has been further amended to allow for additional prepayments, including in June 2021, to provide options for Coeur to receive up to two additional prepayments of up to $ 15.0 million each.

In June 2021 and December 2021, the Company exercised these options and received the $ 15.0 million June 2021 Prepayment and the $ 15.0 million December 2021 Prepayment.

The June 2021 Prepayment was paid back in full before the December 2021 Prepayment was received.

In March 2022, the Amended Sales Contract was further amended to allow for an additional $ 10.0 million prepayment.

The additional $ 10.0 million prepayment was made in March 2022 (the “March 2022 Prepayment”).

The remaining deliveries of $ 15.0 million and $ 10.0 million under the December 2021 Prepayment and March 2022 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

Coeur Mining, Inc.

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Notes to Condensed Consolidated Financial Statements

cancels and/or returns the instrument to the issuing entity.

Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by March 2023.

POA 11 Expansion Project

As of March 31, 2022, Coeur incurred approximately $ 283 million toward the expansion.

With the formalization of the recently-awarded structural, mechanical, piping, electrical and instrumentation (“SMPEI”) and final major high-voltage electrical contracts, the Company has committed approximately $ 477 million of capital since the inception of the project, representing 80 % of the re-baselined cost estimate of $ 597 million.

Coeur estimates capital expenditures related to POA 11 in 2022 to be approximately $ 217 - $ 257 million and $ 131 - $ 171 million in 2023.

The expansion consists of three major components:

(i) a new 300 million ton leach pad, for which civil work is essentially complete and piping work is near completion;

(ii) a Merrill-Crowe process plant with construction completion scheduled for the first half of 2023;

and (iii) a new three-stage crushing circuit with construction completion scheduled for mid-2023.

Progress on the Merrill-Crowe process plant included completion of concrete work, the start of equipment setting, and steel and process pipe rack erection.

Work on the crusher corridor included substantial completion of excavation in the primary crusher area, completion of concrete work and the start of steel construction in the secondary crusher areas, and continued advancement of concrete work in the secondary stock pile reclaim and tertiary crusher areas.

Coeur also began pre-assembly of conveyor components, and deliveries of equipment and materials for the project continue.

The Company is also advancing detailed engineering, and equipment procurement is underway for the implementation of pre-screens into the expansion flowsheet.

Coeur intends to align construction of the pre-screens with the completion of the new crusher corridor .

Other Commitments and Contingencies

As of March 31, 2022 and December 31, 2021, the Company had surety bonds totaling $ 315.5 million and $ 315.1 million, respectively, in place as financial support for future reclamation and closure costs.

As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity.

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

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Accrued liabilities and other consist of the following:

In thousands September 30, 2021 December 31, 2020

In thousands March 31, 2022 December 31, 2021

Accrued salaries and wages $ 22,253 $ 28,408

Deferred revenue (1)

26,240 16,093

Income and mining taxes 7,987 13,856

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

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 and nine months ended September 30, 2021 and 2020:

In thousands September 30, 2021 September 30, 2020

Cash and cash equivalents $ 85,020 $ 77,148

Restricted cash equivalents 1,771 1,380

Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 86,791 $ 78,528

Coeur Mining, Inc.

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Notes to Condensed Consolidated Financial Statements

NOTE 19 – ASSET AND LIABILITIES HELD FOR SALE

On October 27, 2021, the Company entered into a definitive agreement (the “Agreement”) to sell its La Preciosa project located in the State of Durango, Mexico to Avino Silver & Gold Mines Ltd.

The transaction is subject to customary closing conditions, including required regulatory approvals and expected to close in the first quarter of 2022.

Under the Agreement, Avino will acquire the La Preciosa project from Coeur for the following consideration:

• $ 15.0 million upon closing of the transaction,

• $ 5.0 million promissory note that matures prior to the first anniversary of the transaction closing,

• Equity consideration of 14.0 million units, payable on closing, each consisting of one share of Avino common stock and one half of one common share purchase warrant of Avino common stock, priced at a 25 % premium to the 20 day volume weighted average price prior to announcement,

• Deferred cash consideration of approximately $ 8.8 million to be paid no later than the first anniversary of initial production from any portion of the La Preciosa project,

• Contingent payments of $ 0.25 per silver equivalent ounce (subject to an inflationary adjustment) on any new mineral reserves discovered and declared outside of the current resource area at the La Preciosa project, up to a maximum payment of $ 50.0 million, and

• Two royalties covering the La Preciosa land package, including (i) a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.

The Company classified the La Preciosa project as held for sale as of September 30, 2021 and the associated assets and liabilities are classified separately on the consolidated balance sheets.

The major classes of assets and liabilities associated with the La Preciosa project as of September 30, 2021 are as follows:

In thousands September 30, 2021

In thousands March 31, 2022 March 31, 2021

Cash and cash equivalents $ 73,330 $ 154,066

Receivables 1,219

Prepaid expenses and other 1,338

Property, plant and equipment, net 1,633

Mining properties, net 49,085

TOTAL ASSETS $ 54,478

Accounts payable $ 321

Deferred tax liabilities 11,156

TOTAL LIABILITIES $ 11,477

Restricted cash equivalents 1,389 1,377

Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 74,719 $ 155,443

NOTE 19 – DISPOSITIONS

On October 27, 2021 the Company entered into a definitive agreement (the “Agreement”) to sell its La Preciosa projected located in the State of Durango, Mexico to Avino (the “La Preciosa Sale”).

On March 21, 2022, the La Preciosa Sale was completed.

Coeur and its subsidiaries received the following consideration at closing:

• $ 15.3 million cash,

• $ 5.0 million promissory note that matures prior to the first anniversary of the transaction closing, valued at $ 4.7 million,

• Equity consideration of 14.0 million units, consisting of one share of Avino common stock and one half of one common share purchase warrant of Avino common stock, valued at $ 13.7 million and $ 2.2 million, respectively.

Common share purchase warrants are exercisable at $ 1.09 per share and expire September 2023.

• In addition, under the Agreement, Coeur is entitled to the following additional consideration:

◦ $ 8.8 million deferred cash consideration to be paid no later than the first anniversary of initial production from any portion of the La Preciosa project, valued at $ 7.4 million,

◦ Contingent payments of $ 0.25 per silver equivalent ounce (subject to an inflationary adjustment) on any new mineral reserves discovered and declared outside of the current resource area at the La Preciosa project, up to a maximum payment of $ 50.0 million, valued at $ 1.2 million, and

◦ Two royalties, valued at $ 11.2 million, covering the La Preciosa land package, including (i) a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.

The La Preciosa sale resulted in a gain on the sale of $ 1.6 million, which was recognized in Other, Net in the condensed consolidated statements of comprehensive income (loss).

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