What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-09 compared with 2022-08-03 · 205 added, 217 removed, 377 unchanged (53% 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

Second Quarter Highlights

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

Third Quarter Highlights

For the quarter, Coeur reported revenue of $183.0 million and cash used in operating activities of $19.1 million.

We reported GAAP net loss of $57.4 million, or $0.21 per diluted share.

On an adjusted basis 1 , the Company reported EBITDA of $18.3 million and net loss of $44.7 million or $0.16 per diluted share.

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.

For the nine months ended September 30, 2022, Coeur reported revenue of $575.5 million and cash used in operating activities of $2.9 million.

We reported GAAP net loss of $127.2 million, or $0.47 per diluted share.

On an adjusted basis 1 , the Company reported EBITDA of $103.2 million and net loss of $71.6 million or $0.26 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:

• Solid production results and stronger fourth quarter expected to result in full-year production levels within 2022 guidance ranges – Third quarter gold and silver production totaled 83,438 and 2.4 million ounces, respectively.

Quarter-over-quarter production growth at Rochester, Wharf and Kensington was offset by lower production at Palmarejo.

Production levels are expected to increase at all four operating locations during the fourth quarter and finish the year within Coeur’s full-year guidance range of 315,000 - 353,000 ounces of gold and 9.0 - 11.0 million ounces of silver

• Recently installed pre-screens at Rochester providing intended benefit – Pre-screens were successfully installed between the secondary and tertiary crushers at the existing Rochester operation during the third quarter, which is driving enhanced operational flexibility and helping to generate a lower average size of crushed material and improved pad permeability.

These learnings and results will be incorporated into the operating plan for the Rochester expansion and used to optimize Rochester’s life of mine plan

• Rochester expansion on track;

capital estimate updated to incorporate pre-screens – Construction of the Rochester expansion remains on track to be completed mid-2023 with pre-commissioning, commissioning and ramp-up taking place in the second half of next year.

At quarter-end, the project was 61% complete, $575 million of the estimated capital had been committed, and $443 million of the estimated capital cost had been incurred.

The Company has increased the total capital by 9 - 12% to $650 - $670 million to reflect recently completed final estimates for the addition of pre-screens into the crusher circuit, higher prices and quantities of steel and concrete, and additional contingency

• Strategic sale of southern Nevada holdings to AngloGold now complete – The Company entered into a definitive agreement with a subsidiary of AngloGold Ashanti Limited (“AngloGold”) (NYSE:

AU) during the third quarter to sell its Crown and Sterling holdings (“Crown Sterling”) for closing cash consideration of $150 million and deferred cash consideration of $50 million to be paid upon Crown Sterling attaining a total resource of at least 3.5 million gold ounces.

Closing of the transaction occurred on November 4, 2022

• Balance sheet flexibility with opportunistic hedges support ongoing investments – Coeur ended the quarter with total liquidity of approximately $236 million, including $75 million of cash and $160 million of available capacity under its $390 million revolving credit facility (“RCF”) 2 .

On an adjusted basis, giving effect to the Crown Sterling transaction, total liquidity stood at $386 million.

In addition, Coeur currently holds gold forward hedges in the amount of 54,500 ounces for the remainder of 2022 at an average price of $1,994 per ounce and 112,500 ounces in 2023 at an average price of $1,982 per ounce.

The market value of these hedges was approximately $47 million at quarter-end

Three Months Ended Nine Months Ended

September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Financial Results (In thousands):

Gold sales $ 139,181 $ 146,625 $ 415,257 $ 432,210

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$ (44,721) $ (13,105) $ (71,607) $ 10,493

Adjusted net income (loss) per share, diluted (1)

net income (loss) per share, diluted (1)

$ (0.16) $ (0.05) $ (0.26) $ 0.04

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Consolidated Financial Results

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

Three Months Ended September 30, 2022 compared to Three Months Ended June 30, 2022

We sold 81,782 gold ounces and 2.3 million silver ounces, compared to 84,786 gold ounces and 2.5 million silver ounces.

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.

Revenue decreased by $21.1 million, or 10%, as a result of a 4% and 10% decrease in gold and silver ounces sold, respectively, and a 2% and 16% decrease in average realized gold and silver prices, respectively.

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

Gold and silver represented 76% and 24% of third quarter of 2022 sales revenue, respectively.

This compares to gold and silver represented 72% and 28% of second quarter of 2022 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Three Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2022 March 31, 2022

In thousands September 30, 2022 June 30, 2022

Gold sales $ 139,181 $ 146,625 $ (7,444) (5) %

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Costs Applicable to Sales

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.

Costs applicable to sales increased $12.5 million, or 8%, primarily due to higher operating costs partially impacted by continued inflationary pressures relating to consumable costs, most notably higher diesel prices, and increased lower of cost or net realizable value (“LCM”) adjustments at Rochester.

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

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.

Amortization increased $1.2 million, or 4%, primarily due to increased LCM adjustments at Rochester.

General and administrative expenses increased $0.4 million, or 5%, primarily due to higher employee-related costs.

Exploration expense increased $3.1 million, or 59% driven by higher spending at Kensington and Silvertip.

Pre-development, reclamation, and other expenses remained comparable to the second quarter of 2022.

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

Three Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2022 March 31, 2022

In thousands September 30, 2022 June 30, 2022

COVID-19 $ 294 $ 318 $ (24) (8) %

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Other Income and Expenses

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.

Fair value adjustments, net, decreased to a loss of $13.1 million compared to $62.8 million as a result of a lesser 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 $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.

Interest expense (net of capitalized interest of $3.3 million) increased to $5.9 million from $5.2 million due to higher interest paid under the RCF, partially offset by higher capitalized interest.

Other, net gain of $0.2 million remained comparable to the second quarter of 2022.

Income and Mining Taxes

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.

During the third quarter of 2022, income and mining tax expense of approximately $1.9 million resulted in an effective tax rate of 3.4% for 2022.

This compares to income tax expense of $11.5 million for an effective tax rate of 17.4% for the second 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:

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(iii) mining taxes;

(iv) foreign exchange rates;

(v) the impact of uncertain tax positions;

(vi) percentage depletion;

(vii) the sale of non-core assets;

(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.

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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 June 30, Three months ended March 31,

Three Months Ended September 30, Three Months Ended June 30,

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

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

Net Income (Loss)

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”).

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

Net loss was $57.4 million, or $0.21 per diluted share, compared to $77.4 million, or $0.28 per diluted share.

The decrease in net loss was driven by favorable changes of $49.7 million and $9.6 million in the fair value of the Company’s equity investments and income tax expense, respectively, partially offset by a 4% and 10% decrease in gold and silver ounces sold, respectively, a 2% and 16% decrease in average realized gold and silver prices, respectively, higher operating costs, including increased LCM adjustments at Rochester and higher exploration expenditures.

Adjusted net loss was $44.7 million, or $0.16 per diluted share, compared to $13.1 million, or $0.05 per share (see “Non-GAAP Financial Performance Measures”).

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

We sold 241,779 gold ounces and 7.3 million silver ounces, compared to 261,417 gold ounces and 7.5 million silver ounces.

Revenue decreased by $24.4 million, or 6%, as a result of 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.

The decrease in gold ounces sold was primarily due to lower grades at Kensington.

Revenue decreased by $49.4 million, or 8%, as a result of an 8% and 3% decrease in gold and silver ounces sold and an 14% decrease in average realized silver prices, partially offset by a 4% increase in average realized gold prices.

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

Gold and silver accounted for 72% and 28% of 2022 sales revenue, respectively.

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The following table summarizes consolidated metal sales:

Six Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2022 June 30, 2021

Nine Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2022 September 30, 2021

Gold sales $ 415,257 $ 432,210 $ (16,953) (4) %

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Costs Applicable to Sales

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.

Costs applicable to sales increased $72.0 million, or 19%, primarily due to higher operating costs partially impacted by inflationary pressures related to consumables, most notably higher diesel prices, employee-related costs, and increased maintenance costs, increased LCM adjustments at Rochester, and the $10.5 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 $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 $11.4 million, or 52% driven by lower planned investment across the portfolio and Canadian exploration investment incentives earned at Silvertip.

Amortization decreased $9.3 million, or 10%, primarily due to lower gold and silver ounces sold and longer assumed mine life based on year-end mineral reserve growth.

General and administrative expenses decreased $1.5 million, or 5%, primarily due to lower employee-related costs.

Exploration expense decreased $18.4 million, or 49% driven by lower planned investment across the portfolio.

Pre-development, reclamation, and other expenses decreased $7.1 million, or 19%, 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:

Six Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2022 June 30, 2021

Nine Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2022 September 30, 2021

COVID-19 $ 1,585 $ 5,937 $ (4,352) (73) %

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Other Income and Expenses

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.

During the first nine months 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 offering of the 2029 Senior Notes.

Fair value adjustments, net, decreased to a loss of $65.3 million compared to a gain of $7.0 million as a result of a realized loss of $17.7 million in connection with the sale of Victoria Gold Common Shares, a decrease in the value of the Company’s equity investments leading to unrealized losses of $44.5 million, and a gain of $9.3 million related to a fair value adjustment to the Exchange Agreement embedded derivative liability in 2021.

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

Interest expense (net of capitalized interest of $6.0 million) decreased to $9.7 million from $10.0 million due to higher capitalized interest associated with the POA 11 project at Rochester, partially offset by higher interest paid under the 2029 Senior Notes compared to the 2024 Senior Notes, and higher interest paid under the RCF and finance lease obligations.

Other, net decreased to a gain of $2.1 million compared to $4.3 million due to lower gains on the sale of assets.

Interest expense (net of capitalized interest of $9.3 million) increased to $15.7 million from $13.2 million due to higher interest paid under the 2029 Senior Notes compared to the 2024 Senior Notes, and higher interest paid under the RCF and finance lease obligations, partially offset by higher capitalized interest associated with the POA 11 project at Rochester.

Other, net increased to a gain of $2.2 million compared to a loss of $22.4 million due to a write-down of a VAT receivable of $26.0 million due to uncertain collectability in 2021.

Income and Mining Taxes

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.

During the first nine months of 2022, income and mining tax expense of approximately $15.1 million resulted in an effective tax rate of 13.4% for 2022.

This compares to income tax expense of $34.5 million for an effective tax rate of 247.3% 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:

Six months ended June 30,

Nine months ended September 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 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.

Net loss was $127.2 million, or $0.47 per diluted share, compared to $20.6 million, or $0.08 per diluted share.

The increase in net loss was driven by unfavorable changes in the fair value of the Company’s equity investments, a realized loss of $17.7 million in connection with the sale of Victoria Gold Common Shares, higher operating costs, including increased LCM adjustments at Rochester, a 8% and 3% decrease in gold and silver ounces sold and an 14% 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 and a VAT write-down of $26.0 million in 2021, and lower income and mining taxes.

Adjusted net loss was $71.6 million, or $0.26 per diluted share, compared to adjusted net income of $10.5 million, or $0.04 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.

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

2022 Production Guidance

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2022 Costs Applicable to Sales Guidance

Previous Updated

Gold Silver Gold Silver

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

($/oz) ($/oz)

Palmarejo (co-product) $825 - $925 $12.75 - $13.75

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2022 Capital, Exploration and G&A Guidance

Previous Updated

Capital Expenditures, Sustaining $110 - $135

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General & Administrative Expenses $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.

The Company’s 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 Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Tons milled 538,750 539,600 1,643,561 1,519,126

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(1) See Non-GAAP Financial Performance Measures.

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.

Three Months Ended September 30, 2022 compared to Three Months Ended June 30, 2022

Gold and silver production decreased 8% and 10%, respectively as a result of lower gold and silver grades.

Metal sales were $64.8 million, or 35% of Coeur’s metal sales, compared with $86.0 million, or 42% of Coeur’s metal sales.

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

Revenue for the three months ended September 30, 2022 decreased by $21.1 million or 25%, of which $12.8 million resulted from a lower gold and silver production and $8.3 million was due to lower average realized gold and silver prices.

Costs applicable to sales per gold ounce increased 12% and decreased 1% per silver ounce due to the mix of gold and silver sales and lower production, partially offset by lower employee-related costs.

Amortization decreased to $8.0 million due to lower ounces sold.

Capital expenditures remained comparable at $10.8 million.

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 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.

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Metal sales were $233.9 million, or 42% of Coeur’s metal sales, compared with $240.0 million, or 38% of Coeur’s metal sales.

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.

Revenue for the nine months ended September 30, 2022 decreased by $6.2 million or 3%, of which $12.0 million was due to lower average realized silver prices partially offset by an increase of $5.8 million resulting from a higher gold and silver production.

Costs applicable to sales per gold and silver ounce increased 27% and 5%, respectively, due to the mix of gold and silver sales, higher employee-related and consumable costs largely due to inflationary pressures, and the absence of the favorable impact of foreign currency hedges ($10.5 million) included in the prior year.

Amortization increased by $1.1 million to $27.2 million due to increased sales.

Capital expenditures increased to $34.5 million from $28.3 million due to higher underground development, infill drilling activities and equipment purchases.

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Tons placed 3,551,353 4,236,459 12,165,685 9,863,772

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(1) See Non-GAAP Financial Performance Measures.

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 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.

Three Months Ended September 30, 2022 compared to Three Months Ended June 30, 2022

Gold and silver production increased 5% and 8%, respectively, driven by the breakthrough from increased tons placed on the pad in prior quarters.

Metal sales were $30.2 million, or 16% of Coeur’s metal sales, compared with $30.5 million, or 15% of Coeur’s metal sales.

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.

Revenue for the three months ended September 30, 2022 decreased by $0.3 million or 1%, of which $2.5 million was the result of lower average realized gold and silver prices, partially offset by an increase of $2.2 million due to increased gold and silver production.

Costs applicable to sales per gold and silver ounce increased 34% and 15% respectively, due to the mix of gold and silver sales, higher LCM adjustments of $21.2 million compared to $9.2 million in the prior quarter, driven by lower metal prices, increased employee-related and consumable costs partially due to continued inflationary pressures.

Amortization increased to $6.9 million due to higher ounces sold and the impact of LCM adjustments.

Capital expenditures increased to $74.0 million from $47.0 million due to payments related to the 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.

Three Months Ended Six Months Ended

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

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Gold production increased 15% primarily due to increased tons placed and silver production decreased 13%, as a result of lower silver grades and timing of recoveries, partially offset by increased tons placed.

Metal sales were $87.0 million, or 15% of Coeur’s metal sales, compared with $99.2 million, or 16% of Coeur’s metal sales.

Revenue for the nine months ended September 30, 2022 decreased by $12.1 million or 12%, of which $8.2 million was primarily due to lower average realized silver prices, and $3.9 million was due to a lower silver production.

Costs applicable to sales per gold and silver ounce increased 53% and 24%, respectively, due to the mix of gold and silver sales and higher LCM adjustments of $38.0 million compared to $5.3 million in the prior year, driven by lower metal prices, higher employee-related, consumable and maintenance costs partially due to inflationary pressures.

Amortization increased to $16.6 million due to higher equipment depreciation from recent equipment purchases and the impact of LCM adjustments.

Capital expenditures increased to $154.0 million from $112.5 million due to payments related to the POA 11 expansion project and equipment purchases.

Coeur achieved several key milestones at the Rochester expansion during the quarter, notably, the Company achieved (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.

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.

Three Months Ended Nine Months Ended

September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Tons milled 175,246 175,722 516,936 499,265

6 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

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.

Three Months Ended September 30, 2022 compared to Three Months Ended June 30, 2022

Gold production increased 1% as a result of higher grade.

Metal sales were $49.1 million, or 27% of Coeur’s metal sales, compared to $50.3 million, or 25% of Coeur’s metal sales.

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.

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.

Revenue for the three months ended September 30, 2022 decreased by $1.2 million or 2%, of which $1.1 million resulted from lower average realized gold prices and $0.1 million was due to a lower gold ounces sold.

Costs applicable to sales per gold ounce increased 3% due to higher employee-related, maintenance and consumable costs largely due to continued inflationary pressures.

Amortization increased to $10.4 million primarily due to higher production from the Jualin deposit.

Capital expenditures decreased to $7.1 million compared to $8.8 million due to lower underground development.

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Gold production decreased 10% as a result of lower grade, partially offset by higher mill throughput.

Metal sales were $143.7 million, or 25% of Coeur’s metal sales, compared to $155.2 million, or 25% of Coeur’s metal sales.

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.

Revenue for the nine months ended September 30, 2022 decreased by $11.5 million or 7%, of which $18.1 million resulted from lower gold production, partially offset by an increase of $6.6 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 38% due to lower production and higher employee-related, maintenance and consumable costs partially due to inflationary pressures.

1 unchanged sentence

Capital expenditures increased to $23.8 million from $19.5 million due to higher infill drilling and underground development.

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Tons placed 1,353,071 1,050,215 3,530,855 3,628,693

7 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

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.

Three Months Ended September 30, 2022 compared to Three Months Ended June 30, 2022

Gold production increased 6% driven by the timing of recoveries and higher grade.

Metal sales were $38.9 million, or 21% of Coeur’s metal sales, compared to $37.4 million, or 18% of Coeur’s metal sales.

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.

Revenue for the three months ended September 30, 2022 increased by $1.5 million or 4%, of which $2.4 million resulted from a higher gold production, partially offset by a decrease of $0.9 million due to lower averaged realized gold prices.

Costs applicable to sales per gold ounce increased 11% due to higher consumable and maintenance costs partially due to continued inflationary pressures.

Amortization remained comparable at $2.2 million.

Capital expenditures were $0.5 million.

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

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

Nine Months Ended September 30, 2022 compared to Nine Months Ended September 30, 2021

Gold production decreased 16% driven by lower grade.

Metal sales were $110.9 million, or 19% of Coeur’s metal sales, compared to $130.6 million, or 21% of Coeur’s metal sales.

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.

Revenue for the nine months ended September 30, 2022 decreased by $19.7 million or 15%, of which $24.7 million was due to a lower gold production, partially offset by an increase of $5.0 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 29% due to lower production and higher consumable costs partially due to inflationary pressures.

Amortization decreased to $6.5 million due to lower ounces sold.

Capital expenditures were $2.3 million.

Six Months Ended June 30, 2022

Nine Months Ended September 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 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.

Coeur continues to advance study work to assess the economics of a potential future expansion 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 enhance the project’s economics and to take advantage of Silvertip’s expanding, high-grade resource base.

Subject to continued positive results, the Company anticipates advancing Silvertip once the Rochester expansion and ramp-up is complete and Coeur generates sustained, positive free cash flow that can be used to reduce leverage to targeted levels.

Ongoing carrying costs at Silvertip totaled $15.5 million in the first nine months of 2022, compared to $19.0 million in the prior year.

Capital expenditures in the first nine months of 2022 totaled $21.4 million compared to $44.0 million in the prior year due to continued infill drilling and underground development.

Liquidity and Capital Resources

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.

At September 30, 2022, the Company had $76.8 million of cash, cash equivalents and restricted cash and $160.2 million available under the RCF.

Future borrowing may be subject to certain financial covenants.

Cash and cash equivalents increased $18.7 million in the nine months ended September 30, 2022, due to 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 net proceeds of $40.5 million received from the sale of the Victoria Gold Common Shares, partially offset by a 4% and 10% decrease in gold and silver ounces sold, respectively, a 16% decrease in average realized silver prices, higher operating costs and higher 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 “March Equity Offering”).

The Company sold a total of 22,053,275 shares of common stock in the March 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.

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.

At September 30, 2022, the Company had $200.0 million drawn and $29.8 million in outstanding letters of credit under the RCF.

The Company also holds $45.5 million of equity securities including a 9.4% 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.

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.

Prior to the sale, the Company held a 17.8% interest in Victoria Gold.

On September 18, 2022, the Company entered into a Stock Purchase Agreement (“Crown Sterling 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 had outstanding forward contracts on 167,000 ounces of gold at September 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.

3 unchanged sentences

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

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 the Lincoln Hill area adjacent to Rochester.

As of September 30, 2022, the Company committed approximately $575 million of capital since the inception of the POA 11 project.

Approximately $443 million of the estimated project cost had been incurred.

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 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 used in operating activities for the three months ended September 30, 2022 was $19.1 million, compared to net cash provided by operating activities of $22.6 million for the three months ended June 30, 2022.

Net cash used in operating activities for the nine months ended September 30, 2022 was $2.9 million, compared to net cash provided by operating activities of $75.5 million for the nine months ended September 30, 2021.

Adjusted EBITDA for the three months ended September 30, 2022 was $18.3 million, compared to $43.3 million for the three months ended June 30, 2022.

Adjusted EBITDA for the nine months ended September 30, 2022 was $103.2 million, compared to $167.4 million for the nine months ended September 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 Six Months Ended

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

Three Months Ended Nine Months Ended

In thousands September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Cash flow before changes in operating assets and liabilities $ (1,328) $ 29,773 $ 52,224 $ 107,826

5 unchanged sentences

Cash provided by (used in) operating activities $ (19,117) $ 22,644 $ (2,900) $ 75,546

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.

Net cash used in operating activities increased $41.8 million for the three months ended September 30, 2022 compared to the three months ended June 30, 2022, primarily as a result of a 4% and 10% decrease in gold and silver ounces sold, respectively, and a 2% and 16% decrease in average realized gold and silver prices, respectively, and a net outflow related to a prepayment for concentrate deliveries from Kensington of $10.0 million, partially offset by lower exploration costs.

Revenue for the three months ended September 30, 2022 compared to the three months ended June 30, 2022 decreased by $21.1 million, of which $9.8 million was due to lower volume of gold and silver sales and a decrease of $11.3 million due to lower average realized gold and silver prices.

Net cash used in operating activities increased $78.4 million for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021, primarily due to a 8% and 3% decrease in lower gold and silver ounces sold, respectively, a 14% decrease in average realized silver prices, and higher operating costs, partially offset by a 4% increase in average realized gold prices, lower exploration costs, timing of VAT collections at Palmarejo, and lower Silvertip ongoing carrying costs.

Revenue for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 decreased by $49.4 million, of which $38.6 million was due to lower volume of gold and silver sales and $10.9 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 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.

Net cash used in investing activities in the three months ended September 30, 2022 was $56.2 million compared to $72.5 million in the three months ended June 30, 2022.

Cash used in investing activities decreased primarily due to the receipt of net proceeds of $40.5 million from the sale of the Victoria Gold Common Shares, partially offset by an increase in capital expenditures.

The Company incurred capital expenditures of $96.6 million in the three months ended September 30, 2022 compared with $73.2 million in the three months ended June 30, 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 nine months ended September 30, 2022 was $182.9 million compared to $204.4 million in the nine months ended September 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 and the receipt of net proceeds of $40.5 million from the sale of the Victoria Gold Common Shares, partially offset by an increase in capital expenditures.

The Company incurred capital expenditures of $239.3 million in the nine months ended September 30, 2022 compared with $208.9 million in the nine months ended September 30, 2021.

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

Capital expenditures in the nine months ended September 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 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.

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.

Net cash provided by financing activities in the three months ended September 30, 2022 was $76.8 million compared to $50.7 million in the three months ended June 30, 2022.

During the three months ended September 30, 2022, the Company drew $85.0 million, net, from the RCF compared to $60.0 million, net, during the three months ended June 30, 2022.

Net cash provided by financing activities in the nine months ended September 30, 2022 was $204.3 million compared to $121.8 million in the nine months ended September 30, 2021.

During the nine months ended September 30, 2022, the Company drew $135.0 million, net, from 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 nine months ended September 30, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, and drew $20.0 million, net, from the RCF, partially offset by the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums.

Critical Accounting Policies and Accounting Developments

4 unchanged sentences

operations and corporate activities.

The Company has asserted indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company.

The Company has asserted indefinite reinvestment of earnings from its Mexican operations as determined by

management’s judgment about and intentions concerning the future operations of the Company.

The Company does not believe that the amounts reinvested will have a material impact on liquidity.

13 unchanged sentences

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

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

In thousands except per share amounts September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Net income (loss) $ (57,444) $ (77,434) $ (127,196) $ (20,562)

2 unchanged sentences

(Gain) loss on sale of assets and securities 87 (621) (2,365) (4,582)

VAT write-off — — 25,982

Loss on debt extinguishment — — — 9,172

Silvertip inventory write-down — — 271

COVID-19 costs 294 318 1,585 5,937

3 unchanged sentences

Adjusted net income (loss) $ (44,721) $ (13,105) $ (71,607) $ 10,493

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

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

( 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.

net income (loss) per share, Basic $ (0.16) $ (0.05) $ (0.26) $ 0.04

net income (loss) per share, Diluted $ (0.16) $ (0.05) $ (0.26) $ 0.04

( 1) For the three months ended September 30, 2022, tax effect of adjustments of $0.2 million (-2%) is primarily related to the to the fair value adjustments on the Company’s equity investments.

For the three months ended September 30, 2021, 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 nine months ended September 30, 2022, tax effect of adjustments of $9.7 million (-15%) is primarily related to the to the fair value adjustments on the Company’s equity investments and the derecognition of deferred tax liabilities related to the sale of La Preciosa.

For the nine months ended September 30, 2021, tax effect of adjustments of $0.6 million (-2%) 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 Six Months Ended

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

Three Months Ended Nine Months Ended

In thousands except per share amounts September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Net income (loss) $ (57,444) $ (77,434) $ (127,196) $ (20,562)

8 unchanged sentences

(Gain) loss on sale of assets and securities 87 (621) (2,365) (4,582)

VAT write-off — — 25,982

Loss on debt extinguishment — — — 9,172

Silvertip inventory write-down — — 271

COVID-19 costs 294 318 1,585 5,937

1 unchanged sentence

Adjusted EBITDA (1)

$ 18,298 $ 43,330 $ 103,154 $ 167,411

(1) At September 30, 2022, the Company modified its method of calculating Adjusted EBITDA to include the cumulative impact of the LCM adjustments, if applicable, for the year over year presentation.

Previously, the year over year Adjusted EBITDA measure only included the current quarter LCM adjustment.

For the nine months ended September 30, 2022, the modification increased the Adjusted EBITDA measure by $16.8 million but had no impact for the nine months ended September 30, 2021.

This modification to the Adjusted EBITDA measure was made to be consistent with the treatment of LCM adjustments in the Company’s amended RCF facility, which was completed on November 9, 2022.

Free Cash Flow

4 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 Six Months Ended

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

Three Months Ended Nine Months Ended

(Dollars in thousands) September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Cash flow from operations $ (19,117) $ 22,644 $ (2,900) $ 75,546

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 Six Months Ended

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

Three Months Ended Nine Months Ended

(Dollars in thousands) September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2021

Cash provided by (used in) operating activities $ (19,117) $ 22,644 $ (2,900) $ 75,546

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

Three Months Ended September 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, 2022

Three 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) $ —

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

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

12 unchanged sentences

Lead ($/lb) $ —

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

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

28 unchanged sentences

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, 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, including timing thereof, inflation, expectations regarding the consideration received from the sale of the La Preciosa and Sterling/Crown projects, 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, expenses, and cash flow.

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