What changed in this filing

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Item 1. Financial Statements

2022-08-03 compared with 2022-05-04 · 192 added, 182 removed, 703 unchanged (35% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

ASSETS Notes In thousands, except share data

4 unchanged sentences

Ore on leach pads 5 96,589 81,128

Equity securities 6 87,539 —

Prepaid expenses and other 34,045 13,847

7 unchanged sentences

Equity securities 6 11,545 132,197

Receivables 4, 12 8,608 —

Other 60,078 57,249

17 unchanged sentences

Common stock, par value $ 0.01 per share;

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

authorized 600,000,000 shares, 280,805,378 issued and outstanding at June 30, 2022 and 256,919,803 at December 31, 2021

Additional paid-in capital 3,837,023 3,738,347

7 unchanged sentences

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

Three Months Ended March 31,

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

2022 2021 2022 2021

Notes In thousands, except share data

31 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

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

2022 2021 2022 2021

Notes In thousands

19 unchanged sentences

Proceeds from the sale of assets 630 968 16,001 5,556

Purchase of investments — ( 876 ) — ( 876 )

Sale of investments — — — 935

29 unchanged sentences

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

Net income (loss) — — — ( 77,434 ) — ( 77,434 )

Other comprehensive income (loss) — — — — 32,514 32,514

Common stock issued/canceled under long-term incentive plans and director fees and options, net ( 29 ) — 2,127 — — 2,127

Balances at June 30, 2022 280,805 $ 2,808 $ 3,837,023 $ ( 3,009,194 ) $ 26,544 $ 857,181

In thousands Common

10 unchanged sentences

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

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

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

25 unchanged sentences

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

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

11 unchanged sentences

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

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

19 unchanged sentences

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

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

Three Months Ended June 30, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 44,127 $ 15,199 $ 50,030 $ 37,269 $ — $ — $ 146,625

20 unchanged sentences

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

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

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

Gold sales $ 41,232 $ 14,026 $ 48,807 $ 42,093 $ — $ — $ 146,158

8 unchanged sentences

Other income (expense)

Loss on debt extinguishment — — — — — ( 9,173 ) ( 9,173 )

Fair value adjustments, net — — — — — 37,239 37,239

13 unchanged sentences

Notes to Consolidated Financial Statements

Assets March 31, 2022 December 31, 2021

Six Months Ended June 30, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 84,201 $ 26,251 $ 94,089 $ 71,535 $ — $ — $ 276,076

Silver sales 84,836 30,621 478 516 — — 116,451

Metal sales 169,037 56,872 94,567 72,051 — — 392,527

Costs and Expenses

Costs applicable to sales (1)

92,288 70,228 76,221 45,209 — — 283,946

Amortization 19,123 9,671 17,991 4,309 2,518 786 54,398

Exploration 3,296 3,408 1,620 — ( 262 ) 2,635 10,697

Other operating expenses 1,673 3,661 923 1,039 11,584 21,269 40,149

Other income (expense)

Fair value adjustments, net — — — — — ( 52,205 ) ( 52,205 )

Interest expense, net ( 126 ) ( 381 ) ( 669 ) ( 27 ) ( 118 ) ( 8,417 ) ( 9,738 )

Other, net (3)

493 ( 91 ) 81 673 ( 235 ) 1,129 2,050

Income and mining tax (expense) benefit ( 22,520 ) 965 127 ( 1,965 ) — 10,197 ( 13,196 )

Net Income (loss) $ 30,504 $ ( 29,603 ) $ ( 2,649 ) $ 20,175 $ ( 14,193 ) $ ( 73,986 ) $ ( 69,752 )

Segment assets (2)

$ 292,246 $ 689,215 $ 149,365 $ 90,645 $ 239,348 $ 163,190 $ 1,624,009

Capital expenditures $ 23,671 $ 80,006 $ 16,752 $ 1,836 $ 17,562 $ 2,831 $ 142,658

(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

Six Months Ended June 30, 2021 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 78,799 $ 26,466 $ 103,273 $ 75,942 $ — $ — $ 284,480

Silver sales 86,580 44,376 — 1,539 — — 132,495

Metal sales 165,379 70,842 103,273 77,481 — — 416,975

Costs and Expenses

Costs applicable to sales (1)

75,906 62,064 60,597 42,175 — — 240,742

Amortization 17,330 10,083 26,155 5,469 2,271 602 61,910

Exploration 3,527 1,408 2,414 143 6,527 8,093 22,112

Other operating expenses 2,723 2,892 5,268 710 12,519 24,359 48,471

Other income (expense)

Loss on debt extinguishment — — — — — ( 9,173 ) ( 9,173 )

Fair value adjustments, net — — — — — 33,440 33,440

Interest expense, net ( 336 ) ( 702 ) ( 374 ) ( 83 ) 226 ( 8,734 ) ( 10,003 )

Other, net (3)

( 1,036 ) ( 153 ) ( 42 ) 652 ( 339 ) 5,246 4,328

Income and mining tax (expense) benefit ( 18,899 ) ( 171 ) ( 1,041 ) ( 2,423 ) — ( 5,592 ) ( 28,126 )

Net Income (loss) $ 45,622 $ ( 6,631 ) $ 7,382 $ 27,130 $ ( 21,430 ) $ ( 17,867 ) $ 34,206

Segment assets (2)

$ 307,287 $ 435,257 $ 158,456 $ 77,436 $ 189,489 $ 171,517 $ 1,339,442

Capital expenditures $ 19,778 $ 72,449 $ 13,247 $ 2,883 $ 28,912 $ 378 $ 137,647

(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 June 30, 2022 December 31, 2021

Total assets for reportable segments $ 1,624,009 $ 1,424,934

2 unchanged sentences

Total consolidated assets $ 1,860,332 $ 1,734,422

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Geographic Information

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

Long-Lived Assets June 30, 2022 December 31, 2021

United States $ 844,952 $ 704,007

3 unchanged sentences

Total $ 1,328,491 $ 1,172,766

Revenue Three months ended March 31,

Revenue Three months ended June 30, Six months ended June 30,

2022 2021 2022 2021

United States $ 118,159 $ 129,824 $ 223,490 $ 251,596

3 unchanged sentences

Receivables consist of the following:

In thousands March 31, 2022 December 31, 2021

In thousands June 30, 2022 December 31, 2021

Current receivables:

5 unchanged sentences

$ 32,453 $ 32,417

Non-current receivables:

Deferred cash consideration $ 7,458 $ —

Contingent consideration 1,150 —

Total receivables $ 41,061 $ 32,417

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

In thousands March 31, 2022 December 31, 2021

In thousands June 30, 2022 December 31, 2021

Concentrate $ 2,614 $ 1,643

9 unchanged sentences

Total Inventory and Ore on Leach Pads $ 234,763 $ 223,931

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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 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).

At the end of the first and second 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 for the three and six months ended June 30, 2022 of $ 10.4 million ($ 9.2 million was recognized in Costs Applicable to Sales and $ 1.2 million in Amortization) and $ 19.0 million ($ 16.8 million was recognized in Cost Applicable to Sales and $ 2.2 million in Amortization), respectively.

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 March 31, 2022

At June 30, 2022

In thousands Cost Gross

19 unchanged sentences

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

On June 28, 2022, the Company entered into an agreement to sell 5,000,000 shares of common stock of Victoria Gold (“Victoria Gold Common Shares”) at a price of $ 8.34 per Victoria Gold Common Share, which settled on July 5, 2022 for net proceeds of $ 40.5 million.

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

2 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 7 – LEASES

1 unchanged sentence

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

Three months ended March 31,

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Three months ended June 30, Six months ended June 30,

In thousands 2022 2021 2022 2021

6 unchanged sentences

Supplemental cash flow information related to leases was as follows:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

In thousands 2022 2021 2022 2021

5 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

In thousands March 31, 2022 December 31, 2021

In thousands June 30, 2022 December 31, 2021

Operating Leases

20 unchanged sentences

Notes to Consolidated Financial Statements

As of March 31, 2022 (In thousands)

As of June 30, 2022 (In thousands)

Operating leases Finance leases

9 unchanged sentences

NOTE 8 – DEBT

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

In thousands Current Non-Current Current Non-Current

5 unchanged sentences

$ 28,670 $ 518,830 $ 29,821 $ 457,680

(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 .

(1) Net of unamortized debt issuance costs of $ 6.3 million and $ 6.7 million at June 30, 2022 and December 31, 2021, respectively.

(2) Unamortized debt issuance costs of $ 3.3 million and $ 2.4 million at June 30, 2022 and December 31, 2021, respectively, included in Other Non-Current Assets .

2029 Senior Notes

2 unchanged sentences

Revolving Credit Facility

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.

On May 2, 2022, the Company entered into an amendment (the “Amendment”) to the revolving credit facility (the “RCF”), dated as of September 29, 2017 (as 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 (the “Agent”), and Bank of America, N.A., Royal Bank of Canada, Bank of Montreal, Chicago Branch, the Bank of Nova Scotia, ING Capital LLC and Goldman Sachs Bank USA (the “RCF Lenders”).

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

At June 30, 2022, the Company had $ 115.0 million drawn at an interest rate of 3.8 % and $ 30.5 million in outstanding letters of credit under the RCF.

Finance Lease Obligations

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

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 %.

In the six months ended June 30, 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 $ 60.0 million in 2021, a portion of which has been funded as of June 30, 2022.

The package is earmarked for planned equipment purchases for Rochester’s Plan of Operation Amendment 11 (“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.

4 unchanged sentences

Interest Expense

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

12 unchanged sentences

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

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

4 unchanged sentences

NOTE 10 - INCOME AND MINING TAXES

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

The following table summarizes the components of Income and mining tax (expense) benefit for the three and six months ended June 30, 2022 and 2021 by significant jurisdiction:

Three months ended June 30, Six months ended June 30,

2022 2021 2022 2021

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

United States $ ( 85,122 ) $ ( 998 ) $ 29,647 $ ( 7,228 ) $ ( 95,252 ) $ ( 2,197 ) $ 21,116 $ ( 8,853 )

3 unchanged sentences

$ ( 65,932 ) $ ( 11,502 ) $ 47,486 $ ( 15,340 ) $ ( 56,556 ) $ ( 13,196 ) $ 62,332 $ ( 28,126 )

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.

During the second quarter of 2022, the Company reported estimated income and mining tax expense of approximately $ 11.5 million, resulting in an effective tax rate of 17.4 %.

This compares to income tax expense of $ 15.3 million for an effective tax rate of 32.3% during the second 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:

22 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 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.

At June 30, 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.

At June 30, 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

1 unchanged sentence

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

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:

Stock-based compensation expense in the three and six months ended June 30, 2022 was $ 2.3 million and $ 4.6 million, respectively, compared to $ 3.3 million and $ 7.5 million in the three and six months ended June 30, 2021.

At June 30, 2022, there was $ 11.8 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 six months ended June 30, 2022:

Grant date Restricted

3 unchanged sentences

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

May 16, 2022 157,349 $ 3.39 59,010 $ 4.38

NOTE 12 – FAIR VALUE MEASUREMENTS

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

1 unchanged sentence

Realized gain (loss) on equity securities — — — 769

Exchange agreement embedded derivative — 664 — 664

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

7 unchanged sentences

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 March 31, 2022

Fair Value at June 30, 2022

In thousands Total Level 1 Level 2 Level 3

1 unchanged sentence

Provisional metal sales contracts 7 — 7 —

$ 164,588 $ 161,894 $ 2,694 $ —

Gold forwards 29,302 — 29,302 —

1 unchanged sentence

Provisional metal sales contracts $ 77 $ — $ 77 $ —

$ 1,878 $ — $ 1,878 $ —

Fair Value at December 31, 2021

12 unchanged sentences

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

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.

The Company’s gold forward contracts 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.

5 unchanged sentences

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

No assets or liabilities were transferred between fair value levels in the six months ended June 30, 2022.

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the three and six months ended June 30, 2022.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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

Three Months Ended June 30, 2022

In thousands Balance at Beginning of the period Initial valuation Revaluation Balance at the end of the period

Royalties $ 11,200 $ — $ — $ 11,200

1 unchanged sentence

$ 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

Six Months Ended June 30, 2022

In thousands Balance at Beginning of the period Initial valuation Revaluation Balance at the end of the period

Royalties $ — $ 11,200 $ — $ 11,200

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

$ — $ 12,350 $ — $ 12,350

The fair value of financial assets and liabilities carried at book value in the financial statements at June 30, 2022 and December 31, 2021 is presented in the following table:

June 30, 2022

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

25 unchanged sentences

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

The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions.

This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.

The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

objectives and strategies for undertaking hedge transactions.

Derivatives Not Designated as Hedging Instruments

10 unchanged sentences

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:

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 accumulated other comprehensive income (loss) (“AOCI”) and will be recognized in earnings as the forecasted transactions occur.

As of June 30, 2022, there was $ 2.8 million remaining to be recognized in earnings over the next six months.

At June 30, 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:

March 31, 2022

June 30, 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 months ended March 31, 2022 and 2021, respectively (in thousands):

Three Months Ended March 31,

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

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

Financial statement line Derivative 2022 2021 2022 2021

Revenue Provisional metal sales contracts $ ( 486 ) $ ( 137 ) $ 6 $ ( 697 )

Fair value adjustments, net Exchange agreement embedded derivative — 664 — 664

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

1 unchanged sentence

Derivatives Designated as Cash Flow Hedging Strategies

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.

To protect the Company’s exposure to fluctuations in metal prices the Company enters 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

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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

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.

At June 30, 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

2 unchanged sentences

Notional ounces 108,500 112,500

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

The effective portions of cash flow hedges are recorded in 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.

2 unchanged sentences

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

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.

As of June 30, 2022, the Company had $ 29.3 million of net after-tax gain in AOCI related to gains from cash flow hedge transactions, of which $ 23.8 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.

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

March 31, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

June 30, 2022

In thousands Prepaid expenses and other Other assets Accrued liabilities and other

Gold forwards $ 23,820 $ 5,482 $ —

December 31, 2021

In thousands Prepaid expenses and other Accrued liabilities and other

In thousands Prepaid expenses and other Other assets Accrued liabilities and other

Gold zero cost collars $ — $ — $ 1,212

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).

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 six months ended June 30, 2022 and 2021, respectively (in thousands).

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

Three Months Ended March 31,

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

2022 2021 2022 2021

Amount of Gain (Loss) Recognized in AOCI

13 unchanged sentences

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

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

5 unchanged sentences

Other, net consists of the following:

Three Months Ended March 31,

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

In thousands 2022 2021 2022 2021

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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 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.

For the three and six months ended June 30, 2022, there were 1,991,864 and 992,382 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.

Similarly, 1,553,030 and 1,558,030 common stock equivalents were excluded in the diluted earnings per share calculation for the three and six months ended June 30, 2021, respectively.

Coeur Mining, Inc.

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Notes to Condensed Consolidated Financial Statements

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

In thousands except per share amounts 2022 2021 2022 2021

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There are no restrictions on the ability of Coeur to obtain funds from the Subsidiary Guarantors by dividend or loan.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

MARCH 31, 2022

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries

CURRENT ASSETS

Cash and cash equivalents $ 4,035 $ 18,949

Receivables 4,569 7,553

Ore on leach pads — 89,406

Inventory — 26,815

Prepaid expenses and other 8,808 1,114

17,412 143,837

NON-CURRENT ASSETS

Property, plant and equipment, net 1,343 203,363

Mining properties, net 11,200 559,217

Ore on leach pads — 73,133

Restricted assets 1,493 206

Equity securities 161,894 —

Net investment in subsidiaries 772,325 54,326

Other 47,455 51,214

TOTAL ASSETS $ 1,013,122 $ 1,085,296

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable $ 1,740 $ 64,113

Other accrued liabilities 9,629 54,189

Debt — 24,538

Reclamation — 1,561

11,369 144,401

NON-CURRENT LIABILITIES

Debt 451,522 65,909

Reclamation — 127,268

Deferred tax liabilities 920 7,456

Other long-term liabilities 3,142 18,956

Intercompany payable (receivable) ( 353,805 ) 341,389

101,779 560,978

STOCKHOLDERS’ EQUITY

Common stock 2,808 19,417

Additional paid-in capital 3,834,896 340,700

Accumulated deficit ( 2,931,760 ) 19,800

Accumulated other comprehensive income (loss) ( 5,970 ) —

899,974 379,917

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,013,122 $ 1,085,296

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

DECEMBER 31, 2021

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries

In thousands June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021

Current assets $ 124,853 $ 11,143 $ 151,915 $ 128,630

Cash and cash equivalents $ 2,499 $ 16,126

Receivables ( 14 ) 5,607

Ore on leach pads — 81,128

Inventory — 24,954

Prepaid expenses and other 8,660 813

11,145 128,628

Non-current assets (1)

Property, plant and equipment, net 1,476 188,721

Mining properties, net — 514,397

Ore on leach pads — 73,495

Restricted assets 1,496 206

Equity and debt securities 132,197 —

Net investment in subsidiaries 794,254 56,623

Other 47,317 53,511

TOTAL ASSETS $ 987,885 $ 1,015,581

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable $ 1,624 $ 59,463

Other accrued liabilities 16,729 45,676

Debt — 23,608

Reclamation — 1,561

$ 361,197 $ 473,145 $ 947,241 $ 830,330

Non-guarantor intercompany assets $ 8,155 $ 19,803 $ — $ —

Current liabilities $ 13,223 $ 18,353 $ 167,702 $ 130,307

Non-current liabilities $ 87,171 $ 139,223 $ 574,484 $ 461,904

Debt 463,318 53,166

Reclamation — 125,695

Deferred tax liabilities 751 7,422

Other long-term liabilities 3,266 20,826

Intercompany payable (receivable) ( 298,065 ) 286,655

169,270 493,764

STOCKHOLDERS’ EQUITY

Common stock 2,569 19,356

Additional paid-in capital 3,738,347 340,701

Accumulated deficit ( 2,939,442 ) 31,452

Accumulated other comprehensive income (loss) ( 1,212 ) —

800,262 391,509

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 987,885 $ 1,015,581

Non-guarantor intercompany liabilities $ 34,397 $ 30,045 $ 1,715 $ 1,650

(1) Coeur Mining, Inc.’s non-current assets includes its investment in Guarantor Subsidiaries.

Coeur Mining, Inc.

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SUMMARIZED STATEMENTS OF INCOME

THREE MONTHS ENDED MARCH 31, 2022

SIX MONTHS ENDED JUNE 30, 2022

In thousands Coeur Mining, Inc.

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Mexico Litigation Matters

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.

As of June 30, 2022, $ 26.0 million in principal amount 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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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 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.

At June 30, 2022 the remaining unamortized balance was $ 7.7 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

Kensington Prepayment

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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

The Amended Sales Contract was further amended in June 2022 to consolidate the remaining deliveries of $ 15.0 million and $ 10.0 million under the December 2021 Prepayment and March 2022 Prepayment (the “June 2022 Consolidated Prepayment”), to extend the repayment period for the June 2022 Consolidated Prepayment, and to provide for future prepayments of up to $ 25.0 million on a semi-annual basis

Coeur Mining, Inc.

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Notes to Condensed Consolidated Financial Statements

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.

through the end of 2024, provided all prior outstanding prepayment amounts are paid before such future prepayments are made.

The remaining deliveries of the June 2022 Consolidated 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 2022.

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.

As of June 30, 2022, the total estimated project capital cost remained approximately $ 600 million.

With the commencement of structural, mechanical, piping, electrical and instrumentation construction work, completion of final major high-voltage electrical contracts and initial commitments for the pre-screen addition to the expanded crusher circuit, the Company has committed approximately $ 523 million and incurred $ 350 million of the total estimated project cost through June 30, 2022.

The expansion consists of three major components:

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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 .

These scheduled construction completion dates for the project remain unchanged.

Construction of the Merrill-Crowe process plant ramped up during the second quarter, including completion of concrete work, continuation of equipment setting, and the commencement of building and process plant steel pipe rack erection, as well as piping and cable tray installation.

Work on the crusher corridor included (i) continued civil construction in the primary crusher area, (ii) the completion of concrete work, start of steel construction, and setting of conveyor and equipment in the secondary crusher area, (iii) continued advancement of concrete work and start of steel erection in the secondary stock pile reclaim area, (iv) completion of concrete in the tertiary crusher area, and (v) continuation of concrete in the tertiary reclaim and final product load-out areas.

Deliveries of equipment and materials for the project continue to support the overall construction schedule.

The Company also recently advanced detailed engineering on the pre-screens.

Equipment procurement and construction contract development is well underway as Coeur continues working to align construction of the pre-screens with the completion of the new crusher.

Final cost estimates related to pre-screens are expected in the third quarter.

The Company began installation of pre-screens on the existing crusher corridor on June 23 and commenced commissioning on July 22.

Ramp-up of the pilot system as well as optimization of the product size placed under leach is scheduled to take place during the month of August.

The experience and knowledge gained from utilizing pre-screens is expected to facilitate the integration of pre-screen technology into the new crusher system flowsheet for POA 11.

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 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 of June 30, 2022 and December 31, 2021, the Company had surety bonds totaling $ 315.0 million and $ 315.1 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.

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Accrued liabilities and other consist of the following:

In thousands March 31, 2022 December 31, 2021

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

In thousands June 30, 2022 December 31, 2021

Accrued salaries and wages $ 21,844 $ 28,408

9 unchanged sentences

(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

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, 2022 and 2021:

In thousands March 31, 2022 March 31, 2021

In thousands June 30, 2022 June 30, 2021

Cash and cash equivalents $ 74,159 $ 124,075

15 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