What changed in this filing

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Item 1. Financial Statements

2022-11-09 compared with 2022-08-03 · 201 added, 170 removed, 725 unchanged (34% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

ASSETS Notes In thousands, except share data

34 unchanged sentences

Common stock, par value $ 0.01 per share;

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

authorized 600,000,000 shares, 280,836,100 issued and outstanding at September 30, 2022 and 256,919,803 at December 31, 2021

Additional paid-in capital 3,839,725 3,738,347

7 unchanged sentences

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

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

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

2022 2021 2022 2021

32 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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

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

2022 2021 2022 2021

56 unchanged sentences

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

Net income (loss) — — — ( 57,444 ) — ( 57,444 )

Other comprehensive income (loss) — — — — 19,150 19,150

Common stock issued/canceled under long-term incentive plans and director fees and options, net 31 — 2,702 — — 2,702

Balances at September 30, 2022 280,836 $ 2,808 $ 3,839,725 $ ( 3,066,638 ) $ 45,694 $ 821,589

In thousands Common

15 unchanged sentences

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

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

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

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

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

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

18 unchanged sentences

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

Properties Held for Sale

In determining whether to classify a property as held for sale, the Company considers whether:

(i) management has committed to a plan to sell the property;

(ii) the investment is available for immediate sale, in its present condition;

(iii) the Company has initiated a program to locate a buyer;

(iv) the Company believes that the sale of the property is probable;

(v) the Company has received a significant non-refundable deposit for the purchase of the property;

(vi) the Company is actively marketing the property for sale at a price that is reasonable in relation to its estimated fair value;

and (vii) actions required for the Company to complete the plan indicate that it is unlikely that any significant changes will be made to the plan.

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

At September 30, 2022, the Sterling/Crown exploration properties met the held for sale criteria.

However, considering that the Sterling/Crown exploration properties are not operating mines, the Company determined that the expected disposal of the Sterling/Crown exploration properties do not represent a strategic shift that had a major effect on the entity's results and operations, therefore, the Sterling/Crown exploration properties are not classified as a discontinued operation.

The applicable assets and liabilities of Coeur Sterling, Inc.

for the current period presented are classified on the Consolidated Balance Sheets as held for sale.

See Note 20 -- Assets and Liabilities Held for Sale for additional detail.

Revenue Recognition

5 unchanged sentences

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

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

In thousands 2022 2021 2022 2021

7 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

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

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

In thousands 2022 2021 2022 2021

17 unchanged sentences

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

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

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

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

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

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

Gold sales $ 35,285 $ 16,162 $ 49,010 $ 38,724 $ — $ — $ 139,181

20 unchanged sentences

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

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

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

Gold sales $ 33,237 $ 9,923 $ 51,881 $ 52,689 $ — $ — $ 147,730

23 unchanged sentences

Notes to Consolidated Financial Statements

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

Nine Months Ended September 30, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 119,486 $ 42,413 $ 143,099 $ 110,259 $ — $ — $ 415,257

20 unchanged sentences

(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

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

Gold sales $ 112,036 $ 36,389 $ 155,154 $ 128,631 $ — $ — $ 432,210

21 unchanged sentences

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

Assets June 30, 2022 December 31, 2021

Assets September 30, 2022 December 31, 2021

Total assets for reportable segments $ 1,627,675 $ 1,424,934

6 unchanged sentences

Geographic Information

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

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

United States $ 835,588 $ 704,007

3 unchanged sentences

Total $ 1,322,889 $ 1,172,766

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

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

2022 2021 2022 2021

4 unchanged sentences

Receivables consist of the following:

In thousands June 30, 2022 December 31, 2021

In thousands September 30, 2022 December 31, 2021

Current receivables:

3 unchanged sentences

Avino note receivable 4,852 —

Gold forwards realized gains 5,222 —

Other 602 705

4 unchanged sentences

Total receivables $ 43,664 $ 32,417

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:

In thousands June 30, 2022 December 31, 2021

In thousands September 30, 2022 December 31, 2021

Concentrate $ 3,688 $ 1,643

9 unchanged sentences

Total Inventory and Ore on Leach Pads $ 225,228 $ 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 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.

During the first nine months 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 nine months ended September 30, 2022 of $ 24.2 million ($ 21.2 million was recognized in Costs Applicable to Sales and $ 3.0 million in Amortization) and $ 43.2 million ($ 38.0 million was recognized in Cost Applicable to Sales and $ 5.2 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 June 30, 2022

At September 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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

proceeds of $ 40.5 million.

The Company realized a loss of $ 17.7 million on the sale of the Victoria Gold Common Shares, which are recognized in Fair value adjustments, net.

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

5 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

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

In thousands 2022 2021 2022 2021

6 unchanged sentences

Supplemental cash flow information related to leases was as follows:

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

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

In thousands 2022 2021 2022 2021

4 unchanged sentences

Financing cash flows from finance leases $ 8,210 $ 7,944 $ 24,118 $ 22,970

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental balance sheet information related to leases was as follows:

In thousands June 30, 2022 December 31, 2021

In thousands September 30, 2022 December 31, 2021

Operating Leases

17 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

As of June 30, 2022 (In thousands)

As of September 30, 2022 (In thousands)

Operating leases Finance leases

9 unchanged sentences

NOTE 8 – DEBT

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

In thousands Current Non-Current Current Non-Current

5 unchanged sentences

$ 26,417 $ 609,262 $ 29,821 $ 457,680

(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 .

(1) Net of unamortized debt issuance costs of $ 6.0 million and $ 6.7 million at September 30, 2022 and December 31, 2021, respectively.

(2) Unamortized debt issuance costs of $ 3.0 million and $ 2.4 million at September 30, 2022 and December 31, 2021, respectively, included in Other Non-Current Assets .

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

2029 Senior Notes

2 unchanged sentences

Revolving Credit Facility

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.

On May 2, 2022, the Company entered into an amendment (the “May 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 May 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 September 30, 2022, the Company had $ 200.0 million drawn at an interest rate of 5.5 %, $ 29.8 million in outstanding letters of credit and $ 160.2 million available under the RCF.

Future borrowing may be subject to certain financial covenants.

On November 9, 2022, the Company entered into an amendment (the “November Amendment”) to the RCF.

The November Amendment, among other things, (1) modifies the financial covenants to provide greater flexibility under the consolidated net leverage ratio requirement through the December 31, 2023 test date, with the ratio returning to the original level as outlined in the RCF starting with the March 31, 2024 test date (the “Amendment Period”), (2) allows up to $ 50 million for integration costs or costs associated with establishing new facilities and certain costs associated with LCM adjustments at Rochester to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF, (3) increases the interest rate on certain borrowings through early 2023, (4) requires the Company to repay outstanding amounts under the RCF if cash-on-hand exceeds $ 60 million during the Amendment Period, and (5) restricts certain payments and the incurrence of certain liens during the Amendment Period.

Finance Lease Obligations

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

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.

In the nine months ended September 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 September 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 %.

1 unchanged sentence

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Interest Expense

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

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

In thousands 2022 2021 2022 2021

7 unchanged sentences

Total interest expense, net of capitalized interest $ 5,932 $ 3,237 $ 15,670 $ 13,240

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 9 – RECLAMATION

3 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 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 and six months ended June 30, 2022 and 2021 by significant jurisdiction:

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

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

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

2022 2021 2022 2021

5 unchanged sentences

$ ( 55,561 ) $ ( 1,883 ) $ ( 48,368 ) $ ( 6,400 ) $ ( 112,117 ) $ ( 15,079 ) $ 13,964 $ ( 34,526 )

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.

During the third quarter of 2022, the Company reported estimated income and mining tax expense of approximately $ 1.9 million, resulting in an effective tax rate of 3.4 %.

This compares to income tax expense of $ 6.4 million for an effective tax rate of 13.2% during the third quarter of 2021.

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

(i) the sale of non-core assets;

(ii) the non-recognition of tax assets;

(iii) variations in our income before income taxes;

(iv) geographic distribution of that income;

(v) mining taxes;

(vi) foreign exchange rates;

(vii) the impact of uncertain tax positions;

and (viii) percentage depletion.

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) the sale of non-core assets;

(v) foreign exchange rates;

(vi) the impact of uncertain tax positions;

(vii) percentage depletion;

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

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

2 unchanged sentences

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

There are a number

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

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

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

4 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 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.

At September 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 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.

At September 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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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 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:

Stock-based compensation expense in the three and nine months ended September 30, 2022 was $ 2.5 million and $ 7.1 million, respectively, compared to $ 2.7 million and $ 10.2 million in the three and nine months ended September 30, 2021.

At September 30, 2022, respectively, there was $ 10.1 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.6 years.

The following table summarizes the grants awarded during the nine months ended September 30, 2022:

Grant date Restricted

4 unchanged sentences

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

July 19, 2022 97,950 $ 2.90 23,462 $ 4.38

NOTE 12 – FAIR VALUE MEASUREMENTS

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

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

In thousands 2022 2021 2022 2021

6 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

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

Fair Value at June 30, 2022

Fair Value at September 30, 2022

In thousands Total Level 1 Level 2 Level 3

4 unchanged sentences

Provisional metal sales contracts $ 948 $ — $ 948 $ —

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Fair Value at December 31, 2021

20 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.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

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

$ 12,350 $ — $ — $ 12,350

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

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

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

September 30, 2022

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

7 unchanged sentences

(2) Unamortized debt issuance costs of $ 3.0 million included in Other Non-Current Assets .

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

December 31, 2021

16 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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

objectives and strategies for undertaking hedge transactions.

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.

12 unchanged sentences

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:

As of September 30, 2022, there was $ 1.4 million remaining to be recognized in earnings over the next three months.

At September 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

2 unchanged sentences

Notional ounces 18,789 —

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

June 30, 2022

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

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

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

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

Financial statement line Derivative 2022 2021 2022 2021

5 unchanged sentences

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.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

than the fixed prices, it would result in a realized gain or loss, respectively.

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.

At June 30, 2022, the Company had the following derivative cash flow hedge instruments that settle as follows:

At September 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

7 unchanged sentences

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

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.

As of September 30, 2022, the Company had $ 47.1 million of net after-tax gain in AOCI related to gains from cash flow hedge transactions, of which $ 41.8 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:

June 30, 2022

September 30, 2022

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

Gold forwards $ 41,814 $ 5,259 $ —

December 31, 2021

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 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 June 30, Six Months Ended June 30,

December 31, 2021

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 three and nine months ended September 30, 2022 and 2021, respectively (in thousands).

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

2022 2021 2022 2021

14 unchanged sentences

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

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

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

In thousands 2022 2021 2022 2021

5 unchanged sentences

Other, net consists of the following:

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

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

In thousands 2022 2021 2022 2021

1 unchanged sentence

Gain (loss) on sale of assets ( 87 ) ( 92 ) 2,365 4,582

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

Other 147 384 810 1,309

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NOTE 15 – NET INCOME (LOSS) PER SHARE

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

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

For the three and 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.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the

Coeur Mining, Inc.

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Notes to Condensed Consolidated Financial Statements

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

weighted average number of the Company’s common stock outstanding during the period.

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

For the three and nine months ended September 30, 2022, there were 3,719,764 and 2,013,571 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, 1,513,288 and 1,489,158 common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2021, respectively.

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

In thousands except per share amounts 2022 2021 2022 2021

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Diluted $ ( 0.21 ) $ ( 0.21 ) $ ( 0.47 ) $ ( 0.08 )

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

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

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

and RBC Capital Markets, LLC as sales agents.

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

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

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

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

NOTE 16 - SUPPLEMENTAL GUARANTOR INFORMATION

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

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and Subsidiaries

Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

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Guarantor Subsidiaries

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

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

Current assets $ 99,529 $ 11,143 $ 142,106 $ 128,630

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

SUMMARIZED STATEMENTS OF INCOME

SIX MONTHS ENDED JUNE 30, 2022

NINE MONTHS ENDED SEPTEMBER 30, 2022

In thousands Coeur Mining, Inc.

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Mexico Litigation Matters

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.

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

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

In September 2022, the Company and Coeur Mexicana filed a request for arbitration under Chapter 11 of the North American Free Trade Agreement, or NAFTA, in connection with this dispute.

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

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Palmarejo Gold Stream

Coeur Mexicana sells 50 % of Palmarejo gold production (excluding production from certain properties acquired in 2015) to a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) under a gold stream agreement for the lesser of $ 800 or spot price per ounce.

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and Subsidiaries

Notes to Condensed Consolidated Financial Statements

or spot price per ounce.

In 2016, Coeur Mexicana received a $ 22.0 million deposit toward future deliveries under the gold stream agreement.

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 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.

At September 30, 2022 the remaining unamortized balance was $ 7.6 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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From time to time thereafter, the Amended Sales Contract has been further amended to allow for additional prepayments, including in June 2021, to provide options for Coeur to receive up to two additional prepayments of up to $ 15.0 million each.

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

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

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

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

The 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

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and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

The Company exercised these options and received $ 15.0 million both in June 2021 (the "June 2021 Prepayment") and in December 2021 (the "December 2021 Prepayment").

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

In March 2022, the Amended Sales Contract was further amended to allow for an additional $ 10.0 million prepayment which was made in March 2022 (the “March 2022 Prepayment”).

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.

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POA 11 Expansion Project

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:

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

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

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

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.

Coeur achieved several key milestones at the Rochester expansion during the quarter, notably, (i) completion of major concrete work in all areas except the primary crusher pocket and the pre-screens, both of which are in progress, (ii) continuation of structural, mechanical, piping, electrical and instrumentation construction work throughout the project, (iii) commencement of final major high-voltage electrical distribution and substation construction, and (iv) completion of the majority of commitments for the pre-screens.

Progress of the Merrill-Crowe plant continued on schedule during the third quarter, including (i) continuation of mechanical equipment setting, (ii) completion of building and process plant steel pipe rack erection, (iii) continuation of piping and cable tray installation, and (iv) rough setting of electrical switchgear.

Further work on the crusher corridor has also advanced, including (i) civil work on the primary crusher area with a focus on the primary crusher foundation and commencement of conveyor component installation, (ii) setting of the secondary cone crushers and commencement of piping, cable tray and lighting installation in the secondary crusher area, and (iii) setting of the tertiary HPGR crushers and cable tray and lighting installation in the tertiary crusher area.

During the quarter, Coeur successfully aligned the construction of the pre-screens with the completion of the new crusher to maintain a mid-2023 mechanical completion target.

Ramp-up and commissioning is anticipated to take place during the second half of next year.

Coeur also completed a review of the total capital costs necessary to complete the expansion, resulting in a 9 - 12% increase in the capital estimate to $ 650 - $ 670 million.

The estimate reflects the finalization of cost estimates for pre-screens, higher prices and quantities of steel and concrete, and additional contingency.

As of September 30, 2022, the Company had committed approximately $ 575 million of capital since the inception of the project and approximately $ 443 million of the estimated project cost had been incurred.

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 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.

As of September 30, 2022 and December 31, 2021, the Company had surety bonds totaling $ 326.7 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.

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

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

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and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

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

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Accrued liabilities and other consist of the following:

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

In thousands June 30, 2022 December 31, 2021

In thousands September 30, 2022 December 31, 2021

Accrued salaries and wages $ 28,387 $ 28,408

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

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that total the same such amounts shown in the statement of cash flows in the three and six months ended June 30, 2022 and 2021:

In thousands June 30, 2022 June 30, 2021

In thousands September 30, 2022 September 30, 2021

Cash and cash equivalents $ 75,389 $ 85,020

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NOTE 19 – DISPOSITIONS

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

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

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

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

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

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

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

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

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

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and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(ii) a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.

The La Preciosa sale resulted in a gain on the sale of $ 1.5 million, which was recognized in Other, Net in the condensed consolidated statements of comprehensive income (loss).

NOTE 20 – ASSETS AND LIABILITIES HELD FOR SALE

On September 18, 2022, the Company entered into a Stock Purchase Agreement with AngloGold Ashanti (U.S.A.) Holdings Inc., a Delaware corporation and its affiliate for the sale of 100 % of the issued and outstanding shares of Coeur Sterling, Inc.

a subsidiary of Coeur that operates the Sterling/Crown exploration properties near Beatty, Nevada, in exchange for:

(A) a cash payment of $ 150,000,000 at the closing of the transaction, subject to a customary purchase price adjustment and (B) the right to an additional payment of $ 50,000,000 should Buyer, its affiliates or its successors report gold resources in the Sterling/Crown exploration properties (including any in-situ ounces mined after the closing of the Transaction) equal to or greater than 3,500,000 gold ounces, subject to certain additional terms and conditions detailed in the stock purchase agreement.

The transaction was consummated on November 4, 2022.

The Company classified the Sterling/Crown exploration properties as held for sale as of September 30, 2022 and the associated assets and liabilities are classified separately on the consolidated balance sheets.

The major classes of assets and liabilities associated with the Sterling/Crown exploration properties as of September 30, 2022 are as follows:

In thousands September 30, 2022

Cash and cash equivalents $ 32

Property, plant and equipment, net 707

Mining properties, net 100,985

TOTAL ASSETS $ 101,750

Accounts payable $ 34

Accrued liabilities and other 78

Reclamation 1,828

Deferred tax liabilities 10,873

TOTAL LIABILITIES $ 12,813

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