What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-03 compared with 2022-05-04 · 256 added, 172 removed, 338 unchanged (56% of the section changed)

7 unchanged sentences

We are primarily a gold and silver producer with assets located in the United States, Canada and Mexico

First Quarter Highlights

Second Quarter Highlights

For the quarter, Coeur reported revenue of $204.1 million and cash flow from operating activities of $22.6 million.

We reported GAAP net income of $7.7 million, or $0.03 per diluted share.

We reported GAAP net loss of $77.4 million, or $0.28 per diluted share.

On an adjusted basis 1 , the Company reported EBITDA of $43.3 million and net loss of $13.1 million or $0.05 per diluted share.

• First quarter production on plan and in-line with 2022 guidance – Solid performances at Palmarejo and Wharf more than offset COVID-19 impacts at Kensington and lower production levels at Rochester, leading to total production of 75,409 ounces of gold and 2.5 million ounces of silver

• Enhanced liquidity and balance sheet strength – Coeur recently announced multiple initiatives to bolster its liquidity and balance sheet flexibility, including increased additional downside protection from gold hedging in 2022 and 2023, expansion of its revolving credit facility (“RCF”) by $90 million and the completion of its $100 million at-the-market (“ATM”) equity offering

• Rochester expansion project advancing – The Rochester expansion project continued to advance with construction completion targeted for mid-2023.

Coeur has now committed approximately 80% of the $597 million capital estimate and has incurred approximately $283 million of the estimated total as of the end of the first quarter

• New discovery at Silvertip highlights recent exploration success – Camp Creek West discovery holes support the potential for significant additional resource expansion at Silvertip.

Recent high-grade intercepts at Kensington and Palmarejo also demonstrate the potential for further mine life extensions

• Strategic sale of La Preciosa silver project completed – Coeur closed the sale of the La Preciosa silver project during the quarter for total fixed proceeds of nearly $36 million, including $15 million in cash, and additional potential contingent consideration of up to $59 million plus two royalties covering the La Preciosa land package

• Kensington POA 1 key federal authorizations received – The U.S.

Forest Service issued the Final Record of Decision approving Coeur’s proposed amendment to increase tailings and waste rock storage capacity to accommodate future growth potential at Kensington.

Similarly, the Company also received the U.S.

Army Corps of Engineers Record of Decision and Permit

• Updated greenhouse gas (“GHG”) net intensity targets – On April 27, 2022, Coeur published its 2021 ESG Report which included an updated GHG emissions target of a 35% reduction in net intensity by the end of 2024.

The Company’s previous goal was a 25% net intensity reduction by 2025

Selected Financial and Operating Results

Three Months Ended

In thousands March 31, 2022 December 31, 2021 March 31, 2021

For the six months ended June 30, 2022, Coeur reported revenue of $392.5 million and cash flow from operating activities of $16.2 million.

We reported GAAP net loss of $69.8 million, or $0.26 per diluted share.

On an adjusted basis 1 , the Company reported EBITDA of $77.3 million and net loss of $26.9 million or $0.10 per diluted share.

• Reaffirming full-year gold and silver production guidance – Increased gold and silver production during the quarter remains in-line with the Company’s expectations, leading Coeur to reaffirm consolidated and site level production guidance for 2022

• Strong quarterly production increases at Kensington, Wharf and Rochester – Kensington’s gold production increased by 23% versus the first quarter, driven by an all-time quarterly record mill throughput.

Wharf’s gold production increased by 15% while Rochester’s silver and gold production increased by 5% and 37%, respectively

• Full-year cost guidance updated – The Company has updated its full-year site level cost guidance to reflect inflationary pressures.

Additionally, Coeur has elected to increase its planned exploration investment by approximately $11 million in 2022 due to positive drilling results at the Kensington, Palmarejo and Silvertip assets

• Rochester expansion project remains on-track – The ongoing expansion at the Rochester silver and gold operation in Nevada remains on-track for completion in mid-2023.

The total estimated project capital remains approximately $600 million as of June 30, 2022.

Coeur has committed approximately $523 million of the project capital and has incurred roughly $350 million towards the expansion

• Strategic sale of Victoria Gold shares – Coeur announced the sale of 5 million shares of Victoria Gold Corporation (“Victoria Gold”) stock for net cash proceeds of approximately $40 million, which were received on July 5, 2022

• Appointment of Jeane Hull to Board of Directors – Consistent with the Company’s commitment to Board refreshment and best-in-class corporate governance, Jeane Hull has been appointed to Coeur’s Board of Directors

Three Months Ended Six Months Ended

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

Financial Results:

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Consolidated Financial Results

Three Months Ended March 31, 2022 compared to Three Months Ended December 31, 2021

Three Months Ended June 30, 2022 compared to Three Months Ended March 31, 2022

We sold 84,786 gold ounces and 2.5 million silver ounces, compared to 75,211 gold ounces and 2.5 million silver ounces.

Revenue decreased by $19.5 million, or 9%, as a result of a 15% and 7% decrease in gold and silver ounces sold, respectively, partially offset by a 4% increase in average realized gold and silver prices.

The decrease in gold and silver ounces sold was primarily due to lower production at Rochester, Kensington and Wharf.

Gold and silver accounted for 69% and 31% of 2022 sales revenue, respectively.

This compares to gold and silver accounting for 71% and 29% of 2021 sales revenue, respectively.

Revenue increased by $15.7 million, or 8%, as a result of a 13% and 4% increase in gold and silver ounces sold, respectively, partially offset by a 6% decrease in average realized silver prices.

The increase in gold and silver ounces sold was primarily due to higher production at Rochester, Kensington and Wharf.

Gold and silver represented 72% and 28% of second quarter of 2022 sales revenue, respectively.

This compares to gold and silver represented 69% and 31% of first quarter of 2022 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Three Months Ended Increase (Decrease) Percentage Change

In thousands March 31, 2022 December 31, 2021

In thousands June 30, 2022 March 31, 2022

Gold sales $ 146,625 $ 129,451 $ 17,174 13 %

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Costs Applicable to Sales

Costs applicable to sales decreased $3.2 million, or 2%, primarily due to lower gold and silver ounces sold, partially offset by higher operating costs partially due to inflationary pressures and the $3.3 million favorable impact from foreign currency hedges in the comparable period of 2021.

Costs applicable to sales increased $17.4 million, or 13%, primarily due to higher gold and silver ounces sold and higher operating costs primarily due to inflationary pressures relating to consumable costs, most notably higher diesel prices.

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

Amortization decreased $9.0 million, or 25%, primarily due to lower gold and silver and ounces sold.

General and administrative expenses increased $0.6 million, or 7%, primarily due to higher employee incentive compensation and outside service costs.

Exploration expense decreased $8.2 million, or 60% driven by lower planned investment across the portfolio.

Pre-development, reclamation, and other expenses decreased $0.3 million, or 3%, stemming from lower operating costs at noncore asset locations, partially offset by higher costs incurred in connection with the Company’s COVID-19 health and safety protocols, and higher asset retirement accretion.

Amortization increased $1.5 million, or 6%, primarily due to higher gold and silver and ounces sold.

General and administrative expenses decreased $1.0 million, or 10%, primarily due to lower compensation and outside service costs.

Exploration expense decreased $0.1 million, or 3% driven by lower spending at Rochester and Canadian exploration investment incentives earned at Silvertip.

Pre-development, reclamation, and other expenses decreased $2.2 million, or 20%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, lower ongoing carrying costs at Silvertip and lower operating costs at non-core asset locations.

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

Three Months Ended Increase (Decrease) Percentage Change

In thousands March 31, 2022 December 31, 2021

In thousands June 30, 2022 March 31, 2022

COVID-19 $ 318 $ 972 $ (654) (67) %

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Other Income and Expenses

Fair value adjustments, net, increased to a gain of $10.6 million compared to a loss of $7.5 million as a result of an increase in the value of the Company’s equity investments.

Fair value adjustments, net, decreased to a loss of $62.8 million compared to a gain of $10.6 million as a result of a decrease in the value of the Company’s equity investments.

For additional details on the Company’s equity investments see Note 6 -- Investments.

Interest expense (net of capitalized interest of $3.2) increased to $4.6 million from $3.2 million due to lower capitalized interest and higher interest paid under the RCF and finance lease obligations.

Other, net increased to a gain of $1.7 million compared to a loss of $0.5 million attributable to the $1.6 million gain from the sale of the La Preciosa project.

Interest expense (net of capitalized interest of $2.9 million) increased to $5.2 million from $4.6 million due to higher interest paid under the RCF and finance lease obligations, and lower capitalized interest.

Other, net decreased to a gain of $0.3 million compared to a gain of $1.7 million primarily attributable to the $1.5 million gain from the sale of the La Preciosa project in the first quarter of 2022.

Income and Mining Taxes

During the first quarter of 2022, income and mining tax expense of approximately $1.7 million resulted in an effective tax rate of 18.1% for 2022.

This compares to income tax expense of $0.4 million for an effective tax rate of 4.2% for 2021.

During the second quarter of 2022, income and mining tax expense of approximately $11.5 million resulted in an effective tax rate of 17.4% for 2022.

This compares to income tax expense of $1.7 million for an effective tax rate of 18.1% for the first quarter of 2022.

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

(i) the non-recognition of tax assets and liabilities;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) mining taxes;

(v) foreign exchange rates;

(vi) the impact of uncertain tax positions;

and (vii) percentage depletion.

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) foreign exchange rates;

(v) the impact of uncertain tax positions;

(vi) percentage depletion;

(vii) the sale of non-core assets;

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

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

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

Three months ended March 31, Three months ended December 31,

Three Months Ended June 30, Three months ended March 31,

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

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Net Income (Loss)

Net income was $7.7 million, or $0.03 per diluted share, compared to net loss of $10.8 million, or $0.04 per share.

The increase in net income was driven by a 4% increase in average realized gold and silver prices, lower exploration expense, higher gains from the sale of assets, and favorable changes in the fair value of the Company’s equity investments, partially offset by a 15% and 7% decrease in gold and silver ounces sold, respectively, and higher operating costs.

Net loss was $77.4 million, or $0.28 per diluted share, compared to net income of $7.7 million, or $0.03 per diluted share.

The decrease in net income was driven by a 6% decrease in average realized silver prices, higher operating costs, unfavorable changes of $73.4 million and $9.8 million in the fair value of the Company’s equity investments and income tax expense, respectively, partially offset by a 13% and 4% increase in gold and silver ounces sold, respectively.

Adjusted net loss was $13.1 million, or $0.05 per diluted share, compared to an adjusted net loss of $13.8 million, or $0.05 per share (see “Non-GAAP Financial Performance Measures”).

Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

We sold 159,997 gold ounces and 5.0 million silver ounces, compared to 171,613 gold ounces and 5.0 million silver ounces.

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The following table summarizes consolidated metal sales:

Three Months Ended Increase (Decrease) Percentage Change

In thousands March 31, 2022 March 31, 2021

Six Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2022 June 30, 2021

Gold sales $ 276,076 $ 284,480 $ (8,404) (3) %

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Costs Applicable to Sales

Costs applicable to sales increased $25.1 million, or 23%, primarily due to a lower of cost or net realizable value (“LCM”) adjustment of $7.6 million at Rochester, higher operating costs partially due to inflationary pressures, and the $3.1 million favorable impact from foreign currency hedges in the comparable period of 2021.

Costs applicable to sales increased $43.2 million, or 18%, primarily due to higher operating costs partially due to inflationary pressures related to consumables, most notably higher diesel prices, and employee-related costs and increased maintenance costs, lower of cost or net realizable value (“LCM”) adjustments at Rochester, and the $6.6 million favorable impact from foreign currency hedges in the comparable period of 2021.

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

Amortization decreased $3.5 million, or 12%, primarily due to lower gold ounces sold.

Amortization decreased $7.5 million, or 12%, primarily due to lower gold ounces sold and longer assumed mine life based on year-end mineral reserve growth.

General and administrative expenses decreased $2.5 million, or 11%, primarily due to lower compensation costs.

Exploration expense decreased $4.2 million, or 44% driven by lower planned investment across the portfolio.

Exploration expense decreased $11.4 million, or 52% driven by lower planned investment across the portfolio and Canadian exploration investment incentives earned at Silvertip.

Pre-development, reclamation, and other expenses decreased $5.9 million, or 22%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols and lower ongoing carrying costs at Silvertip, partially offset by higher asset retirement accretion.

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

Three Months Ended Increase (Decrease) Percentage Change

In thousands March 31, 2022 March 31, 2021

Six Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2022 June 30, 2021

COVID-19 $ 1,290 $ 5,319 $ (4,029) (76) %

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Other Income and Expenses

During the first quarter of 2021, the Company incurred a $9.2 million loss in connection with the tender and redemption of the 5.875% Senior Notes due 2024 (the “2024 Senior Notes”) concurrent with the completed offering of the 2029 Senior Notes.

Fair value adjustments, net, increased to a gain of $10.6 million compared to a loss of $3.8 million as a result of an increase in the value of the Company’s equity investments.

During the first half of 2021, the Company incurred a $9.2 million loss in connection with the tender and redemption of the 5.875% Senior Notes due 2024 (the “2024 Senior Notes”) concurrent with the completed offering of the 2029 Senior Notes.

Fair value adjustments, net, decreased to a loss of $52.2 million compared to a gain of $33.4 million as a result of an decrease in the value of the Company’s equity investments.

For additional details on the Company’s equity investments see Note 6 -- Investments.

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Income and Mining Taxes

During the first quarter of 2022, income and mining tax expense of approximately $1.7 million resulted in an effective tax rate of 18.1% for 2022.

During the first half of 2022, income and mining tax expense of approximately $13.2 million resulted in an effective tax rate of 23.3% for 2022.

This compares to income tax expense of $28.1 million for an effective tax rate of 45.1% for 2021.

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

Three months ended March 31,

Six months ended June 30,

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

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Conversely, if it is determined that the Company will ultimately 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

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

For additional information, please see “Item 1A - Risk Factors” in the 2021 10-K.

Net Income (Loss)

Net income was $7.7 million, or $0.03 per diluted share, compared to $2.1 million, or $0.01 per share.

The increase in net income was driven by lower exploration expense, favorable changes in the fair value of the Company’s equity investments, $9.2 million loss on debt extinguishment in the comparable period in 2021 and lower income and mining taxes, partially offset by higher operating costs, a 10% decrease in gold ounces sold and an 8% decrease in average realized silver prices.

Adjusted net loss was $13.8 million, or $0.05 per diluted share, compared to an adjusted net income of $34.3 million, or $0.06 per share (see “Non-GAAP Financial Performance Measures”).

Net loss was $69.8 million, or $0.26 per diluted share, compared to net income of $34.2 million, or $0.14 per diluted share.

The decrease in net income was driven by unfavorable changes in the fair value of the Company’s equity investments, higher operating costs, a 7% decrease in gold ounces sold and an 12% decrease in average realized silver prices, partially offset by a 4% increase in average realized gold prices, a $9.2 million loss on debt extinguishment in the comparable period in 2021 and lower income and mining taxes.

Adjusted net loss was $26.9 million, or $0.10 per diluted share, compared to adjusted net income of $13.1 million, or $0.05 per diluted share (see “Non-GAAP Financial Performance Measures”).

2022 Guidance

Production during the second quarter was in-line with Coeur’s expectations, leading the Company to reaffirm 2022 production guidance.

Updated cost guidance reflects industry-wide inflationary pressures on consumables.

Updated exploration guidance shows an increase in exploration expense and capitalized exploration The increase in exploration investment reflects additional planned expansion and infill drilling at Silvertip, Palmarejo and Kensington.

2022 Production Guidance

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

Rochester 35,000 - 43,000 3,000 - 4,000

Kensington 110,000 - 120,000 —

Wharf 70,000 - 80,000 —

Total 315,000 - 353,000 9,000 - 11,000

2022 Costs Applicable to Sales Guidance

Previous Updated

Gold Silver Gold Silver

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

Palmarejo (co-product) $750 - $850 $13.50 - $14.50 $825 - $925 $12.75 - $13.75

Rochester (co-product) $1,490 - $1,590 $20.75 - $22.75 $1,650 - $1,850 $20.00 - $26.00

Kensington $1,150 - $1,250 $1,300 - $1,400 —

Wharf (by-product) $1,225 - $1,325 $1,250 - $1,350 —

2022 Capital, Exploration and G&A Guidance

Previous Updated

Capital Expenditures, Sustaining $115 - $140 $110 - $135

Capital Expenditures, Development $205 - $250 $220 - $260

Exploration, Expensed $18 - $23 $25 - $30

Exploration, Capitalized $18 - $23 $22 - $27

General & Administrative Expenses $42 - $46 $42 - $46

The Company’s previous guidance figures assume estimated prices of $1,800/oz gold and $24.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

The Company’s updated guidance figures assume estimated prices of $1,800/oz gold and $22.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

Guidance figures exclude the impact of any metal sales or foreign exchange hedges.

Results of Operations

Three Months Ended

March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Tons milled 539,600 565,211 1,104,811 1,001,763

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(1) See Non-GAAP Financial Performance Measures.

Three Months Ended March 31, 2022 compared to Three Months Ended December 31, 2021

Gold production increased 1% as a result of higher gold grade and recoveries, partially offset by lower mill throughput.

Silver production decreased 2% as a result of lower mill throughput, partially offset by higher silver grade and recoveries.

Three Months Ended June 30, 2022 compared to Three Months Ended March 31, 2022

Gold production decreased 6% as a result of lower mill throughput and gold grade, partially offset by higher recoveries as a result of blending optimization as well as enhancements in the flotation and solution management processes.

Silver production decreased 1% as a result of lower mill throughput, partially offset by higher silver grade and recoveries as a result of blending optimization as well as a drawdown of in-circuit inventory.

Metal sales were $86.0 million, or 42% of Coeur’s metal sales, compared with $83.1 million, or 44% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 increased by $2.8 million or 4%, of which $2.5 million was due to higher average realized gold and silver prices and $0.3 million was the result of a higher volume of gold sales.

Costs applicable to sales per gold and silver ounce increased 12% and 11%, respectively, due to the mix of gold and silver sales, higher consumable costs largely due to inflationary pressures and the absence of the favorable impact of foreign currency hedges of $3.3 million included in the prior quarter.

Amortization decreased to $9.4 million due to longer assumed mine life based on year-end mineral reserve growth.

Capital expenditures increased to $13.6 million from $8.3 million due to higher underground development, infill drilling activities and equipment purchases.

Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

Gold production increased 1% as a result of higher mill throughput, partially offset by lower gold grade and recoveries.

Revenue for the three months ended June 30, 2022 increased by $2.9 million or 3%, primarily due to a higher volume of gold and silver sales.

Costs applicable to sales per gold and silver ounce increased 16% and 4%, respectively, due to the mix of gold and silver sales, higher employee-related and consumable costs largely due to inflationary pressures.

Amortization increased to $9.7 million due to higher ounces sold.

Capital expenditures decreased to $10.1 million reflecting delays in capital project advancements, partially offset by continued planned investment in underground development and infill drilling.

Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

Gold production was in-line with the prior year as a result of higher mill throughput, partially offset by lower gold grade and recoveries.

Silver production increased 10% as a result of higher mill throughput and recoveries, partially offset by lower silver grade.

Metal sales were $169.0 million, or 44% of Coeur’s metal sales, compared with $165.4 million, or 40% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 increased by $2.7 million or 3%, of which $7.4 million was the result of a higher volume of gold and silver sales, partially offset by a decrease of $4.7 million due to lower average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 18% and 14%, respectively, due to the mix of gold and silver sales, higher employee-related, maintenance and consumable costs largely due to inflationary pressures, and the absence of the favorable impact of foreign currency hedges ($3.1 million) included in the prior year quarter.

Amortization increased to $9.4 million due to increased sales partially offset by longer assumed mine life based on year-end mineral reserve growth.

Revenue for the six months ended June 30, 2022 increased by $3.7 million or 2%, of which $10.6 million resulted from a higher volume of gold and silver sales was partially offset by a decrease of $6.9 million primarily due to lower average realized silver prices.

Costs applicable to sales per gold and silver ounce increased 24% and 5%, respectively, due to the mix of gold and silver sales, higher employee-related, maintenance and consumable costs largely due to inflationary pressures, and the absence of the favorable impact of foreign currency hedges ($6.6 million) included in the prior year.

Amortization increased to $19.1 million due to increased sales.

Capital expenditures increased to $23.7 million from $19.8 million due to higher underground development, infill drilling activities and equipment purchases.

Three Months Ended

March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Tons placed 4,236,459 4,377,873 8,614,332 6,436,694

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(1) See Non-GAAP Financial Performance Measures.

Three Months Ended March 31, 2022 compared to Three Months Ended December 31, 2021

Gold and silver production decreased 12% and 14%, respectively, as a result of lower tons placed in the prior quarter, lower silver grades and the timing of gold and silver recoveries.

Three Months Ended June 30, 2022 compared to Three Months Ended March 31, 2022

Gold and silver production increased 37% and 5%, respectively, largely due to increased placement rates from the first quarter.

Metal sales were $30.5 million, or 15% of Coeur’s metal sales, compared with $26.4 million, or 14% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 decreased by $5.3 million or 17%, of which $6.6 million was the result of lower volume of gold and silver sales partially offset by a $1.3 million increase as a result of higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 7% and 8%, respectively, due to the mix of gold and silver sales, higher maintenance and consumable costs partially due to inflationary pressures.

Amortization decreased to $4.7 million due to lower gold and silver ounces sold.

Capital expenditures decreased to $33.1 million from $53.9 million due to timing of payments related to the POA 11 expansion project.

Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

Gold and silver production decreased 12% and 15%, respectively, as a result of lower tons placed in prior year, lower silver grades and the timing of gold and silver recoveries.

Revenue for the three months ended June 30, 2022 increased by $4.1 million or 16%, of which $5.0 million was the result of a higher volume of gold and silver sales, partially offset by a $0.9 million decrease as a result of lower average realized silver prices.

Costs applicable to sales per gold ounce increased 3% and decreased 5% per silver ounce due to the mix of gold and silver sales and higher maintenance and consumable costs partially due to inflationary pressures.

Amortization increased to $5.0 million due to higher ounces sold.

Capital expenditures increased to $47.0 million due to timing of payments related to the POA 11 expansion project.

Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

Gold production increased 2% while silver production decreased 19%, as a result of lower tons placed in prior year, lower silver grades and the timing of gold and silver recoveries.

Metal sales were $56.9 million, or 14% of Coeur’s metal sales, compared with $70.8 million, or 17% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 decreased by $6.4 million or 20%, of which $5.1 million was the result of a lower volume of gold and silver sales and $1.3 million was the result of lower average realized silver prices.

Costs applicable to sales per gold and silver ounce increased 74% and 52%, respectively, due to the mix of gold and silver sales, higher employee-related, maintenance and consumable costs partially due to inflationary pressures, and a LCM adjustment of $7.6 million included in the current year.

Amortization increased to $4.7 million due to an LCM adjustment of $1.0 million in the current year.

Revenue for the six months ended June 30, 2022 decreased by $14.0 million or 20%, of which $9.8 million was the result of a lower volume of gold and silver sales and $4.2 million was the result of lower average realized silver prices, partially offset by higher average realized gold prices.

Costs applicable to sales per gold and silver ounce increased 48% and 24%, respectively, due to the mix of gold and silver sales, higher maintenance and consumable costs partially due to inflationary pressures, and LCM adjustments.

Amortization decreased to $9.7 million due to lower ounces sold.

Capital expenditures increased to $80.0 million from $72.4 million due to payments related to the 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 .

Three Months Ended

March 31, 2022 December 31, 2021 March 31, 2021

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.

Three Months Ended Six Months Ended

June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Tons milled 175,722 165,968 341,690 338,669

6 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended March 31, 2022 compared to Three Months Ended December 31, 2021

Gold production decreased 32% as a result of lower grade and lower mill throughput resulting from the impact of COVID-19 on workforce availability.

Three Months Ended June 30, 2022 compared to Three Months Ended March 31, 2022

Gold production increased 23% as a result of higher mill throughput and higher grade, partially offset by lower recoveries.

Metal sales were $50.3 million, or 25% of Coeur’s metal sales, compared to $44.3 million, or 24% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 decreased by $15.5 million or 26%, of which $21.4 million resulted from lower volume of gold sales, partially offset by an increase of $5.9 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 44% due to lower production and higher employee-related, maintenance and consumable costs, partially due to inflationary pressures.

Amortization decreased to $8.6 million primarily due to lower ounces sold.

Revenue for the three months ended June 30, 2022 increased by $6.0 million or 13%, of which $8.8 million resulted from a higher volume of gold sales, partially offset by a decrease of $2.8 million due to lower average realized gold prices.

Costs applicable to sales per gold ounce decreased 12% due to higher production, partially offset by higher consumable costs partially due to inflationary pressures.

Amortization increased to $9.4 million primarily due to higher ounces sold.

Capital expenditures was consistent quarter over quarter at $8.8 million compared to $8.0 million.

Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

Gold production decreased 14% as a result of lower grade and lower mill throughput resulting from the impact of COVID-19 on workforce availability.

Metal sales were $94.6 million, or 24% of Coeur’s metal sales, compared to $103.3 million, or 25% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 decreased by $10.2 million or 19%, of which $16.9 million resulted from lower volume of gold sales, partially offset by an increase of $6.7 million due to higher average realized gold prices.

Revenue for the six months ended June 30, 2022 decreased by $8.7 million or 8%, of which $14.7 million resulted from lower volume of gold sales, partially offset by an increase of $6.0 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 45% due to lower production and higher employee-related, maintenance and consumable costs partially due to inflationary pressures.

1 unchanged sentence

Capital expenditures increased to $16.8 million from $13.2 million due to higher infill drilling and underground development.

Three Months Ended

March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Tons placed 1,050,215 1,127,569 2,177,784 2,139,524

7 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended March 31, 2022 compared to Three Months Ended December 31, 2021

Gold production decreased 10% driven by the timing of recoveries.

Three Months Ended June 30, 2022 compared to Three Months Ended March 31, 2022

Gold production increased 15% driven by the timing of recoveries due to higher grades placed in the first quarter.

Metal sales were $37.4 million, or 18% of Coeur’s metal sales, compared to $34.7 million, or 18% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 decreased by $1.5 million or 4%, of which $3.2 million resulted from a lower volume of gold sales, partially offset by an increase of $1.7 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold ounce increased 2% due to higher consumable and employee-related costs partially due to inflationary pressures.

Amortization decreased to $2.1 million due to lower ounces sold.

Revenue for the three months ended June 30, 2022 increased by $2.7 million or 8%, of which $2.7 million resulted from a higher volume of gold sales.

Costs applicable to sales per gold ounce increased 9% due to higher consumable costs partially due to inflationary pressures.

Amortization increased to $2.2 million due to higher ounces sold.

Capital expenditures were $0.5 million.

Three Months Ended March 31, 2022 compared to Three Months Ended March 31, 2021

Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

Gold production decreased 11% driven by the timing of recoveries.

Metal sales were $72.1 million, or 18% of Coeur’s metal sales, compared to $77.5 million, or 19% of Coeur’s metal sales.

Revenue for the three months ended March 31, 2022 increased slightly by $0.1 million, of which $1.7 million was due to higher average realized gold prices, partially offset by a decrease of $1.6 million resulted from a lower volume of gold and silver sales.

Costs applicable to sales per gold ounce increased 18% due to higher equipment rental, consumable and employee-related costs partially due to inflationary pressures.

Revenue for the six months ended June 30, 2022 decreased by $5.4 million, of which $8.9 million was due to a lower volume of gold and silver sales, partially offset by an increase of $3.5 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 22% due to higher equipment rental and consumable costs partially due to inflationary pressures.

Amortization decreased to $4.3 million due to lower ounces sold.

Capital expenditures were $1.8 million.

Three Months Ended March 31, 2022

Six Months Ended June 30, 2022

Silvertip suspended mining and processing activities, unrelated to COVID-19, in February 2020.

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

Coeur continues advancing study work to assess the economics of a potential larger expansion and restart of Silvertip.

The Company’s objective remains targeting a higher throughput rate to lower unit costs and to take advantage of Silvertip’s expanding resource base, while sequencing an expansion and restart following the completion and commissioning of POA 11.

Results from this ongoing work remain on track and are expected to be available by the end of the year.

Coeur continues to generate positive results from ongoing exploration as the Company evaluates various opportunities to enhance the economics of a potential expansion and restart of Silvertip.

Ongoing carrying costs at Silvertip totaled $6.2 million in the first quarter, compared to $6.0 million in the prior period.

Capital expenditures decreased to $11.9 million from $26.1 million as residual costs for completed mill decommissioning and planned early civil works construction were paid during the prior quarter.

For 2022, capital expenditures are expected to be approximately $18 - $24 million, primarily focused on underground development and infill drilling as well as study work to evaluate additional opportunities to enhance the economics of a potential expansion and restart.

Coeur continues to advance study work to assess the economics of a potential future expansion and restart of its high-grade Silvertip silver-zinc-lead development project in British Columbia, Canada.

The Company’s objective remains to complete an evaluation by year end of higher throughput scenarios to reduce unit costs and to take advantage of Silvertip’s expanding, high-grade resource base.

Ongoing carrying costs at Silvertip totaled $10.9 million in the first half of 2022, compared to $13.4 million in the prior year.

Capital expenditures during the first half of 2022 totaled $17.6 million compared to $28.9 million in the prior year due to continued infill drilling and underground development.

For 2022, capital expenditures are now expected to be approximately $28 - $36 million (previously $18 - $24 million).

The revised figures reflect increase underground development and infill drilling.

Liquidity and Capital Resources

At March 31, 2022, the Company had $74.7 million of cash, cash equivalents and restricted cash and $215.0 million available under the RCF.

Cash and cash equivalents increased $16.7 million in the three months ended March 31, 2022, due to the net proceeds of $98.4 million from the sale of 22.1 million shares of its common stock, proceeds of $15.3 million received from the sale of the La Preciosa project, and a 4% increase in average realized gold and silver prices.

This was partially offset by a 15% and 7% decrease in gold and silver ounces sold and capital expenditures related to POA 11 at Rochester.

The RCF was amended in March 2021 to extend the maturity to March 2025 and to potentially allow the Company to obtain one or more increases of the RCF in an aggregate amount of up to $100.0 million.

At March 31, 2022, the Company had $55.0 million drawn 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 Bank of America, N.A., as administrative 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.

The Company also holds $161.9 million of equity securities including a 17.8% interest in Victoria Gold.

At June 30, 2022, the Company had $75.6 million of cash, cash equivalents and restricted cash and $244.5 million available under the RCF.

Cash and cash equivalents increased $17.5 million in the six months ended June 30, 2022, due to the net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock, net proceeds of $15.3 million received from the sale of the La Preciosa project, and a 13% and 4% increase in gold and silver ounces sold, respectively, partially offset by a 6% decrease in average realized silver prices, higher operating costs and capital expenditures related to POA 11 at Rochester.

In March 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 Company sold a total of 22,053,275 shares of common stock in the Equity Offering at an average price of $4.53 per share, raising net proceeds (after sales commissions) of $98.3 million.

On May 2, 2022, the Company entered into an amendment (the “Amendment”) to the RCF to, among other things, increase the maximum principal amount of the RCF by $90.0 million in incremental loans and commitments to an aggregate of $390.0 million.

At June 30, 2022, the Company had $115.0 million drawn and $30.0 million in outstanding letters of credit under the RCF.

The Company also holds $99.1 million of equity securities including a 17.8% interest in Victoria Gold Corporation (“Victoria Gold”).

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.

Following the sale, the Company holds a 9.4% interest in Victoria Gold.

The Company had outstanding forward contracts on 221,000 ounces of gold at June 30, 2022 that settle monthly through December 2023.

The Company is targeting to hedge up to 70% of expected gold production in 2022, 50% of expected gold production for the first half of 2023 and 25% of expected gold production for the second half of 2023 in order to protect cash flow during a period of elevated capital expenditures, and may in the future layer on additional hedges as circumstances warrant.

The weighted average fixed price on the forward contracts is $1,974 per ounce of gold.

We currently believe we have sufficient sources of funding to meet our business requirements for the next twelve months and longer-term.

We expect to use a combination of cash provided by operating activities, borrowings under our RCF and additional finance leases to fund near term capital requirements, including those described in this Report for POA 11 and in our 2022 capital expenditure guidance.

We also have additional potential sources of funding including proceeds from potential

asset sales, and the monetization of our equity investments, including our investment in Victoria Gold.

We also have additional potential sources of funding including proceeds from potential asset sales, and the monetization of our equity investments, including our remaining common shares of Victoria Gold.

Our longer-term plans contemplate the expansion and restart of Silvertip, as well as the continued exploration and potential development of our other projects, such as Crown/Sterling and the Lincoln Hill area adjacent to Rochester.

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

With the formalization of the recently-awarded 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.

We also have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other purchase obligations and commitments for purchases of goods and services.

2 unchanged sentences

Cash Provided by (Used in) Operating Activities

Net cash used in operating activities for the three months ended March 31, 2022 was $6.4 million, compared to net cash provided by operating activities of $34.9 million for the three months ended December 31, 2021 and net cash used in operating activities of $4.4 million for the three months ended March 31, 2021.

Adjusted EBITDA for the three months ended March 31, 2022 was $41.5 million, compared to $48.7 million for the three months ended December 31, 2021 and $65.9 million for the three months ended March 31, 2021 (see “Non-GAAP Financial Performance Measures”).

Net cash provided by operating activities for the three months ended June 30, 2022 was $22.6 million, compared to net cash used in operating activities of $6.4 million for the three months ended March 31, 2022.

Net cash provided by operating activities for the six months ended June 30, 2022 was $16.2 million, compared to $53.7 million for the six months ended June 30, 2021.

Adjusted EBITDA for the three months ended June 30, 2022 was $43.3 million, compared to $41.5 million for the three months ended March 31, 2022.

Adjusted EBITDA for the six months ended June 30, 2022 was $77.3 million, compared to $118.6 million for the six months ended June 30, 2021 (see “Non-GAAP Financial Performance Measures”).

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

Three Months Ended

In thousands March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

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

Cash flow before changes in operating assets and liabilities $ 29,773 $ 23,779 $ 53,552 $ 73,022

5 unchanged sentences

Cash provided by (used in) operating activities $ 22,644 $ (6,427) $ 16,217 $ 53,700

Net cash provided by operating activities decreased $41.4 million for the three months ended March 31, 2022 compared to the three months ended December 31, 2021, primarily as a result of a 15% and 7% decrease in gold and silver ounces sold, respectively, mining and income taxes at Palmarejo, and timing of metal recoveries at Rochester and Wharf, partially offset by a 4% increase in average realized gold and silver prices, lower exploration costs and timing of VAT collections at Palmarejo.

Revenue for the three months ended March 31, 2022 compared to the three months ended December 31, 2021 decreased by $19.5 million, of which $27.8 million was due to lower volume of gold and silver sales, partially offset by $8.3 million due to higher average realized gold and silver prices.

Net cash used in operating activities increased $2.1 million for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, primarily due to lower gold ounces sold (10%), an 8% decrease in average realized silver prices, and higher operating costs, partially offset by a 3% increase in average realized gold prices, lower exploration costs, and timing of VAT collections at Palmarejo.

Revenue for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 decreased by $13.7 million, of which $13.3 million was due to lower volume of gold and silver sales and $5.2 million due to lower average realized silver prices, partially offset by $4.8 million due to higher average realized gold prices.

Net cash provided by operating activities increased $29.1 million for the three months ended June 30, 2022 compared to the three months ended March 31, 2022, primarily as a result of a 13% and 4% increase in gold and silver ounces sold, respectively, mining and income taxes paid at Palmarejo in the first quarter of 2022, lower exploration costs and lower Silvertip ongoing carrying costs, partially offset by a 6% decrease in average realized silver prices and timing of VAT collections at Palmarejo.

Revenue for the three months ended June 30, 2022 compared to the three months ended March 31, 2022 increased by $15.7 million, of which $18.6 million was due to higher volume of gold and silver sales, partially offset by a decrease of $2.9 million due to lower average realized silver prices.

Net cash provided by operating activities decreased $37.5 million for the six months ended June 30, 2022 compared to the six months ended June 30, 2021, primarily due to lower gold ounces sold (7%), a 12% decrease in average realized silver prices, and higher operating costs, partially offset by a 4% increase in average realized gold prices, lower exploration costs, lower Silvertip ongoing carrying costs, and timing of VAT collections at Palmarejo.

Revenue for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 decreased by $24.4 million, of which $20.6 million was due to lower volume of gold and silver sales and $3.8 million was due to lower average realized silver prices.

Cash Used in Investing Activities

Net cash used in investing activities in the three months ended March 31, 2022 was $54.1 million compared to $99.7 million in the three months ended December 31, 2021.

Cash used in investing activities decreased primarily due to the timing of payments related to the POA 11 construction activities at Rochester and the impact of the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project.

The Company incurred capital expenditures of $69.5 million in the three months ended March 31, 2022 compared with $100.9 million in the three months ended December 31, 2021 primarily related to POA 11 construction activities at Rochester, and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the three months ended March 31, 2022 was $54.1 million compared to $53.9 million in the three months ended March 31, 2021.

Cash used in investing activities increased primarily due to construction activities related to POA 11 at Rochester, partially offset by the impact of the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project.

The Company incurred capital expenditures of $69.5 million in the three months ended March 31, 2022 compared with $59.4 million in the three months ended March 31, 2021.

Capital expenditures in the three months ended March 31, 2022 were primarily related to POA 11 construction activities at Rochester, and underground development at Palmarejo and Kensington.

Capital expenditures in the three months ended March 31, 2021 were primarily related to POA 11 construction activities at Rochester, potential expansion expenditures at Silvertip and underground development at Palmarejo and Kensington.

Net cash used in investing activities in the three months ended June 30, 2022 was $72.5 million compared to $54.1 million in the three months ended March 31, 2022.

Cash used in investing activities increased primarily due to the timing of payments related to POA 11 construction activities at Rochester and the impact of the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in the first quarter of 2022.

The Company incurred capital expenditures of $73.2 million in the three months ended June 30, 2022 compared with $69.5 million in the three months ended March 31, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the six months ended June 30, 2022 was $126.7 million compared to $132.1 million in the six months ended June 30, 2021.

Cash used in investing activities decreased primarily due to the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in the first quarter of 2022, partially offset by construction activities related to POA 11 at Rochester.

The Company incurred capital expenditures of $142.7 million in the six months ended June 30, 2022 compared with $137.6 million in the six months ended June 30, 2021.

Capital expenditures in the six months ended June 30, 2022 were primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington.

Capital expenditures in the six months ended June 30, 2021 were primarily related to POA 11 construction activities at Rochester, potential expansion expenditures at Silvertip and underground development at Palmarejo and Kensington.

The Company is experiencing inflationary pressures, specifically with respect to building materials and fuel as well as overall tightness in the construction market related to capital projects, most notably the POA 11 project at Rochester, and to operating costs company-wide.

Cash Provided by Financing Activities

Net cash provided by financing activities in the three months ended March 31, 2022 was $76.7 million compared to $36.3 million in the three months ended December 31, 2021.

During the three months ended March 31, 2022, the Company received net proceeds of $98.4 million from the sale of 22.1 million shares of its common stock in the Equity Offering, partially offset by the net repayment of $10.0 million under the RCF.

During the three months ended December 31, 2021, the Company drew $45.0 million, net, from the RCF.

Net cash provided by financing activities in the three months ended March 31, 2022 was $76.7 million compared to $119.6 million in the three months ended March 31, 2021.

Net cash provided by financing activities in the three months ended June 30, 2022 was $50.7 million compared to $76.7 million in the three months ended March 31, 2022.

During the three months ended June 30, 2022, the Company drew $60.0 million, net, from the RCF.

During the three months ended March 31, 2022, the Company received net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock in the Equity Offering, partially offset by the net repayment of $10.0 million under the RCF.

During the three months ended March 31, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, partially offset by the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums.

Net cash provided by financing activities in the six months ended June 30, 2022 was $127.5 million compared to $109.8 million in the six months ended June 30, 2021.

During the six months ended June 30, 2022, the Company borrowed $155.0 million and repaid $105.0 million under the RCF, and received net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock in the Equity Offering.

During the six months ended June 30, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, partially offset by the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums.

Critical Accounting Policies and Accounting Developments

11 unchanged sentences

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”).

Unless otherwise noted, we present the Non-GAAP

financial measures in the tables below.

Unless otherwise noted, we present the Non-GAAP financial measures in the tables below.

These measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

6 unchanged sentences

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

Three Months Ended

In thousands except per share amounts March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

In thousands except per share amounts June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Net income (loss) $ (77,434) $ 7,682 $ (69,752) $ 34,206

4 unchanged sentences

COVID-19 costs 318 972 1,290 5,319

Interest income on notes receivables (179) — (179) —

Tax effect of adjustments (1)

3 unchanged sentences

Adjusted net income (loss) per share - Diluted $ (0.05) $ (0.05) $ (0.10) $ 0.05

( 1) For the three months ended March 31, 2022, tax effect of adjustments of $11.0 million (96%) is primarily related to the de-recognition of deferred tax liabilities related to the sale of Proyectos Mineros La Preciosa, S.A.

For the three months ended December 31, 2021, tax effect of adjustments of $9.7 million (-115%) is primarily related to the VAT write-off.

( 1) For the three months ended June 30, 2022, tax effect of adjustments of -$1.5 million (2%) is primarily related to the to the fair value adjustments on the Company’s equity investments.

For the three months ended March 31, 2022, tax effect of adjustments of $11.0 million (96%) is primarily related to the de-recognition of deferred tax liabilities related to the sale of La Preciosa.

For the six months ended June 30, 2022, tax effect of adjustments of $9.5 million (-19%) is primarily related to the de-recognition of deferred tax liabilities related to the sale of La Preciosa and the fair value adjustments on the Company’s equity investments.

For the six months ended June 30, 2021, tax effect of adjustments of $1.1 million (-3%) are primarily related to the fair value adjustments on the Company’s equity investments.

EBITDA and Adjusted EBITDA

5 unchanged sentences

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

Three Months Ended

In thousands except per share amounts March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

In thousands except per share amounts June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Net income (loss) $ (77,434) $ 7,682 $ (69,752) $ 34,206

10 unchanged sentences

COVID-19 costs 318 972 1,290 5,319

Interest income on notes receivables (179) — (179) —

Adjusted EBITDA $ 43,330 $ 41,527 $ 77,261 $ 118,603

5 unchanged sentences

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

Three Months Ended

(Dollars in thousands) March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Cash flow from operations $ 22,644 $ (6,427) $ 16,217 $ 53,700

7 unchanged sentences

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

Three Months Ended

(Dollars in thousands) March 31, 2022 December 31, 2021 March 31, 2021

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2021

Cash provided by (used in) operating activities $ 22,644 $ (6,427) $ 16,217 $ 53,700

11 unchanged sentences

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

Three Months Ended June 30, 2022

In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

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

GAAP) $ 58,800 $ 42,914 $ 48,680 $ 26,600 $ 1,259 $ 178,253

Amortization (9,737) (4,961) (9,369) (2,248) (1,259) (27,574)

Costs applicable to sales $ 49,063 $ 37,953 $ 39,311 $ 24,352 $ — $ 150,679

Gold ounces 29,285 8,071 27,666 19,764 84,786

Silver ounces 1,854,695 682,677 — 5,828 — 2,543,200

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

Gold ($/oz) $ 854 $ 2,351 $ 1,412 $ 1,226

Silver ($/oz) $ 12.96 $ 27.80 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Three Months Ended March 31, 2022

13 unchanged sentences

Lead ($/lb) $ —

Three Months Ended December 31, 2021

Six Months Ended June 30, 2022

In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

12 unchanged sentences

Lead ($/lb) $ —

Three Months Ended March 31, 2021

Six Months Ended June 30, 2021

In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

12 unchanged sentences

Lead ($/lb) $ —

Reconciliation of Costs Applicable to Sales for 2022 Guidance

In thousands (except metal sales, per ounce or per pound amounts) Palmarejo Rochester Kensington Wharf

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

GAAP) $ 219,862 $ 165,031 $ 191,055 $ 109,179

Amortization (35,687) (22,218) (39,051) (7,811)

Costs applicable to sales $ 184,175 $ 142,813 $ 152,004 $ 101,368

By-product credit — — — (745)

Adjusted costs applicable to sales $ 184,175 $ 142,813 $ 152,004 $ 100,623

Gold ounces 107,034 37,072 113,890 78,757

Silver ounces 6,831,642 3,257,498 32,199

Revenue Split

Gold 51% 47% 100% 100%

Silver 49% 53%

Adjusted costs applicable to sales

Gold ($/oz) $825 - $925 $1,650 - $1,850 $1,300 - $1,400 $1,250 - $1,350

Silver ($/oz) $12.75 - $13.75 $20.00 - $26.00

Reconciliation of Costs Applicable to Sales for Previous 2022 Guidance

In thousands (except metal sales, per ounce or per pound amounts) Palmarejo Rochester Kensington Wharf

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

GAAP) $ 211,800 $ 148,540 $ 185,494 $ 106,175

Amortization (34,183) (20,094) (48,763) (8,378)

Costs applicable to sales $ 177,617 $ 128,446 $ 136,731 $ 97,797

By-product credit — — — (1,802)

Adjusted costs applicable to sales $ 177,617 $ 128,446 $ 136,731 $ 95,995

Gold ounces 105,255 38,912 116,502 75,261

Silver ounces 6,501,289 3,405,155 75,093

Revenue Split

Gold 49% 46% 100% 100%

Silver 51% 54%

Adjusted costs applicable to sales

Gold ($/oz) $750 - $850 $1,490 - $1,590 $1,150 - $1,250 $1,225 - $1,325

Silver ($/oz) $13.50 - $14.50 $20.75 - $22.75

Cautionary Statement Concerning Forward-Looking Statements

This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold and silver mining business, including statements regarding operations at the Company’s properties, exploration and development efforts, strategies, expectations regarding the Rochester POA 11 expansion project, the Silvertip mine's potential expansion and restart, supply and labor disruption, inflation, expectations regarding the consideration received from the sale of the La Preciosa project, hedging strategies, realization of deferred tax assets, expectations about the recovery of VAT in Mexico, timing of completion of obligations under the Amended Sales Contract at Kensington, liquidity management, financing plans, risk management strategies, capital allocation and anticipated production, costs, and expenses.

This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold and silver mining business, including statements regarding operations at the Company’s properties, exploration and development efforts, strategies, expectations regarding the Rochester POA 11 expansion project, the Silvertip mine's potential expansion and restart, inflation, expectations regarding the consideration received from the sale of the La Preciosa project, hedging strategies, realization of deferred tax assets, expectations about the recovery of VAT in Mexico, timing of completion of obligations under the Amended Sales Contract at Kensington, liquidity management, financing plans, risk management strategies, capital allocation and anticipated production, costs, and expenses.

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

4 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 2. Management’s Discussion and Analysis