What changed in this filing

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Item 7. Management’s Discussion and Analysis

2023-02-22 compared with 2022-02-16 · 213 added, 222 removed, 537 unchanged (45% of the section changed)

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For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this Item.

We provide Costs applicable to sales (“CAS”) allocation, referred to as the co-product method, based on revenue contribution for Palmarejo, Rochester and Silvertip and based on the primary metal, referred to as the by-product method, for Wharf.

We provide Costs applicable to sales (“CAS”) allocation, referred to as the co-product method, based on revenue contribution for Palmarejo and Rochester and based on the primary metal, referred to as the by-product method, for Wharf.

Revenue from secondary metal, such as silver at Wharf, is treated as a cost credit.

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

We are primarily a gold and silver producer with operating assets located in the United States and Mexico and an exploration project in Canada.

2022 Highlights

For full year 2021, Coeur reported revenue of $832.8 million and cash flow from operating activities of $110.5 million.

For the full year 2022, Coeur reported revenue of $785.6 million and cash provided by operating activities of $25.6 million.

We reported GAAP net loss of $78.1 million, or $(0.28) per diluted share.

On an adjusted basis 1 , the Company reported EBITDA of $210.8 million and net loss of $1.4 million or $0.01 per diluted share.

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $139.0 million and net loss of $89.1 million or $(0.32) per diluted share.

• Solid fourth quarter production growth led to full-year production within guidance ranges – Gold and silver production increased 5% and 4% quarter-over-quarter, respectively, to 87,727 ounces and 2.5 million ounces.

Full-year gold and silver production totaled 348,529 ounces and 10.1 million ounces, respectively, within the Company’s consolidated production guidance range for both metals

• Strong cost performance from primary gold operations – Full-year costs applicable to sales 1 at Palmarejo, Kensington and Wharf were within their guidance ranges for 2021 despite inflationary cost headwinds, leading to strong free cash flow 1 at each of these primary gold operations.

During 2021, gold sales represented 70% of the Company’s total revenue

• Largest exploration program in Company history extended mine lives and drove resource growth – Coeur increased total exploration investment 41% year-over-year to $71 million in 2021, bringing its five-year cumulative investment in exploration to nearly $240 million, which has led to significant increases in reserves and resources.

From the 2021 program, mine life extensions at Palmarejo and Wharf as well as significant resource additions at Silvertip and Kensington continue to lay the foundation for future organic growth

• Updated capital and schedule estimates for Rochester expansion provide clarity – The Company estimates the total capital for the Plan of Operations Amendment 11 (“POA 11”) will be approximately $520 million, which is in-line with recent updates.

Approximately $236 million has been incurred on the project as of December 31, 2021.

In addition, Coeur estimates the cost to incorporate pre-screens into the new crusher circuit and associated re-assessment of project contingency to be approximately $70 - $80 million.

Construction is expected to be completed mid-2023 with commissioning to follow.

Post-expansion, full-year production is expected to average roughly 8 million ounces of silver and 76,250 ounces of gold with average free cash flow 1 of $90 million from 2024 to 2034 4

• Silvertip trade-off study underway – The Company commenced work to assess the economics of a potential larger expansion and restart of its high-grade Silvertip silver-zinc-lead property in British Columbia.

The review is evaluating the potential to target a higher throughput to take advantage of the significant resource growth and on a timetable that would sequence an expansion and restart following completion and commissioning of the Rochester expansion.

Results from this ongoing work are expected by the end of the year

• Initial Technical Report Summaries filed under new SEC rules confirm strength and stability of Coeur’s multi-asset portfolio – The Company today filed initial Technical Report Summaries pursuant to Item 1300 of SEC Regulation S-K.

Highlights from the reports include reserve-only based mine lives of 8 years at Palmarejo, 13 years at Rochester, 3 years at Kensington and 8 years at Wharf

Full-year gold and silver production totaled 330,346 ounces and 9.8 million ounces, respectively, within the Company’s consolidated production guidance ranges

• Rochester delivered strong quarterly performance – Fourth quarter production at Rochester totaled 973,000 ounces and 11,589 ounces of silver and gold, respectively, representing quarter-over-quarter increases of 31% and 32%.

• POA 11 expansion nearing scheduled mid-year construction completion and remains on-track – Construction at Rochester is scheduled to be completed mid-year 2023.

At the end of 2022, the project was 74% complete.

The new Stage VI leach pad is now operational, with first ore placed on February 1, 2023.

As of December 31, 2022, approximately $605 million of the estimated capital had been committed, of which $494 million of the estimated capital cost had been incurred.

Total estimated project capital remains unchanged at $650 - $670 million

• Exploration investment drives approximately 12% and 3% year-over-year increases in gold and silver reserves, respectively – Gold reserves at Kensington grew roughly 56% year-over-year, adding approximately a year and a half to its mine life.

Successful exploration at Silvertip contributed to year-over-year increases in measured and indicated resources of 73%, 69% and 81% in silver, zinc and lead, respectively, excluding reclassified ounces.

Over the last five years, the Company has invested approximately $245 million in exploration, leading to increases of approximately 21% and 49% in Company-wide gold and silver reserves, respectively over the five-year period

• Liquidity further bolstered to support remaining elevated levels of growth investments – The sale of the Crown Sterling holdings was completed on November 4, 2022 for upfront cash consideration of $150 million.

On January 17, 2023, Coeur announced the sale of its remaining shares of Victoria Gold Corporation (“Victoria Gold”) for net cash proceeds of approximately $40 million.

Coeur ended the quarter with total liquidity of approximately $342 million, including $62 million of cash and $280 million of available capacity under its $390 million revolving credit facility (“RCF”) and is further supported by robust hedges covering approximately 52% and 29% of 2023 estimated gold and silver production, respectively.

As adjusted to reflect the receipt of proceeds from Victoria Gold, Coeur’s total liquidity stood at $382 million at December 31, 2022

• 2023 guidance ranges consistent with 2022 investor day outlook – The Company expects 2023 gold and silver production of 320,000 - 370,000 ounces and 10.0 - 12.0 million ounces, respectively, driven by strong expected second half silver and gold production increases consistent with the planned ramp-up at Rochester following completion of the POA 11 expansion project and by higher expected production from the Wharf gold operation

Selected Financial and Operating Results

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In thousands 2022 2021 2020

Financial Results:

Financial Results (In thousands):

Gold sales $ 572,877 $ 578,911 $ 584,633

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Average realized price per zinc pound, gross (3)

$ — $ — NM (3)

Average realized price per lead pound, gross (3)

$ — $ — NM (3)

(1) See “Non-GAAP Financial Performance Measures.”

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Net of debt issuance costs and premium received.

(3) Due to the suspension of mining and processing activities these amounts are not meaningful.

(4) Additional details for Rochester can be found in the Technical Report Summary filed by the Company with the U.S.

Securities and Exchange Commission on February 16, 2022 which is incorporated by reference into this Report.

(3) Due to the suspension of mining and processing activities at Silvertip these amounts are not meaningful.

Consolidated Financial Results

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

We sold 350,347 gold ounces and 10.1 million silver ounces, compared to 356,251 gold ounces, 9.6 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds in the prior year.

Revenue increased by $47.4 million, or 6%, as a result of a 1% and 21% increase in average realized gold and silver prices, respectively, and higher silver ounces sold (5%), partially offset by lower gold ounces sold (2%).

The increase in silver ounces sold was primarily due to higher mill throughput at Palmarejo.

Gold and silver accounted for 70% and 30% of 2021 sales revenue, respectively.

This compares to gold and silver accounting for 74% and 25% of 2020 sales revenue, respectively, with zinc and lead accounting for the remaining 2020 sales revenue.

We sold 329,968 gold ounces and 9.8 million silver ounces, compared to 350,347 gold ounces and 10.1 million silver ounces.

Revenue decreased by $47.2 million, or 6%, as a result of a 6% and 4% decrease in gold and silver ounces sold, respectively, and a 13% decrease in average realized silver prices, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges.

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

Gold and silver represented 73% and 27% of 2022 sales revenue, respectively.

This compares to gold and silver representing 70% and 30% of 2021 sales revenue, respectively.

The following table summarizes consolidated metal sales:

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Silver sales 212,759 253,917 (41,158) (16) %

Zinc sales — (662) 662 (100) %

Lead sales — 1,315 (1,315) (100) %

Metal sales $ 785,636 $ 832,828 $ (47,192) (6) %

Costs Applicable to Sales

Costs applicable to sales increased $71.2 million, or 16%, primarily due to inflationary pressures related to employee-related, maintenance and consumable costs at all operating sites, higher silver ounces sold primarily at Palmarejo, the Rochester fourth quarter lower of cost or net realizable value (“LCM”) adjustment of $7.3 million, partially offset by the $13.8 million favorable impact from foreign currency hedges.

Costs applicable to sales increased $95.0 million, or 19%, 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 decreased $3.1 million, or 2%, primarily due to longer assumed mine life based on year-end 2020 mineral reserve growth, partially offset by higher silver ounces sold.

General and administrative expenses increased $6.7 million, or 20%, primarily due to higher compensation, travel and outside service costs.

Exploration expense increased $8.5 million, or 20%, as the Company maintained its commitment to a higher-level of exploration investment following the completion of the largest and most successful drilling campaign in Coeur’s history during 2020.

The Company completed 746,900 feet (227,650 meters) of expansion drilling and 417,200 feet (127,175 meters) of infill drilling in 2021 compared to 617,500 feet (188,225 meters) of expansion drilling and 165,700 feet (50,475 meters) of infill drilling in 2020.

Pre-development, reclamation, and other expenses decreased $7.0 million, or 13%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, partially offset by full-year ongoing carrying costs and absence of one-time 2020 costs associated with the suspension of mining and processing activities at Silvertip.

Amortization decreased $16.7 million primarily due to lower gold and silver ounces sold and longer assumed mine lives at Palmarejo, Kensington and Wharf.

General and administrative expenses decreased $0.9 million, or 2%, primarily due to lower stock-based compensation expense.

Exploration expense decreased $24.5 million, or 48% driven by lower planned investment across the portfolio.

Pre-development, reclamation, and other expenses decreased $7.4 million, or 15%, 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:

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Silvertip ongoing carrying costs 20,963 24,928 (3,965) (16) %

Silvertip suspension costs — 11,199 (11,199) (100) %

Gain on modification of right of use lease — (4,051) 4,051 (100) %

Asset retirement accretion 14,232 11,988 2,244 19 %

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Other Income and Expenses

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

Fair value adjustments, net, decreased to a loss of $0.5 million compared to a gain of $7.6 million as a result of a reduction in value of the Company’s equity investments.

The estimated fair values of the Company’s equity investments in Victoria Gold Corp.

and Integra Resources Corp.

(“Integra Resources”) were $124.2 million and $8.0 million, respectively, at December 31, 2021.

Interest expense (net of capitalized interest of $11.1 million) decreased to $16.5 million from $20.7 million due to higher capitalized interest associated with the POA 11 project at Rochester, and lower interest paid under the RCF, partially offset by higher interest paid under the 2029 Senior Notes compared to the 2024 Senior Notes and higher interest paid under finance lease obligations.

Other, net increased to a loss of $22.9 million compared to $5.9 million due to a write-down of a VAT receivable of $26.0 million due to uncertain collectability, partially offset by an increase in gains on the sale of assets in 2021 and a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars incurred in 2020.

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

Fair value adjustments, net, decreased to a loss of $66.7 million compared to a $0.5 million loss as a result of a reduction in 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 $11.2 million) increased to $23.9 million from $16.5 million due to higher interest paid under the RCF, partially offset by higher capitalized interest.

Other, net increased to a gain of $67.0 million compared to a loss of $22.9 million in 2021, as a result of the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties and a write-down of a $26.0 million Mexican VAT receivable in 2021 due to uncertain collectability.

For additional details on the VAT receivable write-down see Note 19 -- Commitments and Contingencies.

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Mining, foreign withholding, and other taxes (11,070) (12,599)

Sale of non-core assets 15,447 —

Other, net (801) 1,390

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Income and mining tax expense of approximately $14.7 million resulted in an effective tax rate of 23.1% for 2022.

This compares to income tax expense of $37.0 million or effective tax rate of 59.1% for 2020.

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:

This compares to income tax expense of $35.0 million for an effective tax rate of 961.4% for 2021.The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) foreign exchange rates;

(v) percentage depletion (vi) the impact of uncertain tax positions;

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

(iii) the sale of non-core assets;

(iv) mining taxes;

(v) percentage depletion;

(vi) foreign exchange rates;

(vii) the impact of uncertain tax positions;

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

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

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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 $31.3 million, or $0.13 per diluted share, compared to net income of $25.6 million, or $0.11 per share.

The decrease in net income was driven by higher operating costs, a VAT write-down of $26.0 million, higher exploration expense, a $9.2 million loss on debt extinguishment and higher income and mining taxes.

This was partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively and higher silver ounces sold (5%).

Adjusted net loss was $1.4 million, or $0.01 per diluted share, compared to an adjusted net income of $59.0 million, or $0.24 per share (see “Non-GAAP Financial Performance Measures”).

For additional information, please see “Item 1A - Risk Factors”.

Net loss was $78.1 million, or $0.28 per diluted share, compared to $31.3 million, or $0.13 per diluted share.

The increase in net loss was driven by a 6% and 4% decrease in gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, higher operating costs, including increased LCM adjustments at Rochester, unfavorable changes in the fair value of the Company’s equity investments, and a realized loss of $15.6 million in connection with the sale of Victoria Gold common shares.

This was partially offset by a 5% increase in average realized gold prices driven by realized gains from gold hedging, a $62.2 million gain on the sale of the Sterling/Crown exploration properties, lower exploration costs and income and mining taxes, absence of a $9.2 million loss on debt extinguishment and the VAT write-down of $26.0 million in 2021.

Adjusted net loss was $89.1 million, or $0.32 per diluted share, compared to $1.4 million, or $0.01 per diluted share (see “Non-GAAP Financial Performance Measures”).

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Revenue increased by $74.0 million or 10%, as a result of a 22% and 29% increase in average realized gold and silver prices, respectively, partially offset by lower gold and silver ounces sold (3% and 19%, respectively), recovery delays at Rochester and the suspension of mining and processing activities at Silvertip in February.

We sold 356,251 gold ounces, 9.6 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds compared to 367,650 gold ounces, 11.9 million silver ounces, 18.2 million zinc pounds and 16.5 million lead pounds in the prior year.

Gold and silver accounted for 74% and 25% of 2020 sales revenue, respectively, with zinc and lead accounting for the remaining sales revenue.

This compares to gold and silver accounting for 69% and 27% of 2019 sales revenue.

We sold 350,347 gold ounces and 10.1 million silver ounces, compared to 356,251 gold ounces, 9.6 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds in the prior year.

The increase in silver ounces sold was primarily due to higher mill throughput at Palmarejo.

Gold and silver accounted for 70% and 30% of 2021 sales revenue, respectively.

This compares to gold and silver accounting for 74% and 25% of 2020 sales revenue, respectively, with zinc and lead accounting for the remaining 2020 sales revenue.

The following table summarizes consolidated metal sales:

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Costs Applicable to Sales

Costs applicable to sales decreased primarily due to the suspension at Silvertip and lower ounces sold at Palmarejo and Rochester.

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

Amortization decreased $47.5 million, or 27%, primarily due to the suspension at Silvertip, and longer assumed mine life based on year-end 2019 reserve growth at Palmarejo and lower ounces sold at Palmarejo and Rochester.

General and administrative expenses decreased $0.8 million, or 2%, primarily due to lower travel costs.

Exploration expense increased $20.1 million, or 89%, due to the Company’s multi-year exploration program.

The Company completed 617,500 feet (188,225 meters) of expansion drilling and 165,700 feet (50,475 meters) of infill drilling in 2020 compared to 342,500 (104,425 meters) of expansion drilling and 181,600 feet (55,350 meters) of infill drilling in 2019.

Pre-development, reclamation, and other expenses increased $37.2 million, or 202%, stemming from ongoing carrying and suspension costs at Silvertip and incremental costs incurred to comply with the Company’s COVID-19 health and safety protocols, partially offset by a gain resulting from the modification of a right of use lease at Silvertip.

Costs applicable to sales increased $71.2 million, or 16%, primarily due to inflationary pressures related to employee-related, maintenance and consumable costs at all operating sites, higher silver ounces sold primarily at Palmarejo, the Rochester fourth quarter LCM adjustment of $7.3 million, partially offset by a $13.8 million favorable impact from foreign currency hedges.

Amortization decreased $3.1 million, or 2%, primarily due to longer assumed mine life based on year-end 2020 mineral reserve growth, partially offset by higher silver ounces sold.

General and administrative expenses increased $6.7 million, or 20%, primarily due to higher compensation, travel and outside service costs.

Exploration expense increased $8.5 million, or 20%, as the Company maintained its commitment to a higher-level of exploration investment in 2021.

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

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Other Income and Expenses

Fair value adjustments, net, decreased to a gain of $7.6 million compared to $16.0 million as a result of changes in value related to the Company’s equity investments, primarily Integra Resources and Metalla Royalty & Streaming Ltd.

("Metalla"), which had estimated fair values of $11.9 million and $1.0 million, respectively, at December 31, 2020.

Interest expense (net of capitalized interest of $1.5 million) decreased to $20.7 million from $24.8 million due to a lower interest rate paid under the RCF and lower average balances of both the RCF and 2024 Senior Notes.

Other, net increased to a loss of $5.9 million compared to a loss of $3.2 million due to an increase in losses on the sale of assets and a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars, partially offset by a reduction in foreign exchange losses.

Fair value adjustments, net, decreased to a loss of $0.5 million compared to a gain of $7.6 million as a result of a reduction in value of the Company’s equity investments.

The estimated fair values of the Company’s equity investments in Victoria Gold and Integra Resources Corp.

(“Integra Resources”) were $124.2 million and $8.0 million, respectively, at December 31, 2021.

Other, net increased to a loss of $22.9 million compared to a loss of $5.9 million due to a write-down of the $26.0 million VAT receivable, partially offset by an increase in gains on the sale of assets in 2021 and a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars incurred in 2020.

Income and Mining Taxes

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Income and mining tax expense of approximately $35.0 million resulted in an effective tax rate of 961.4% for 2021.

This compares to income tax benefit of $11.1 million or effective tax rate of 3.1% for 2019.

This compares to income tax expense of $37.0 million or effective tax rate of 59.1% for 2020.

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) mining taxes;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) foreign exchange rates;

(v) percentage depletion;

(vi) the non-recognition of tax assets;

and (vii) the impact of uncertain tax positions.

(v) percentage depletion (vi) the impact of uncertain tax positions;

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

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

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$ 3,636 $ (34,958) $ 62,672 $ (37,045)

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized.

The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance.

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.

For additional information, please see the section titled “Risk Factors” included in Item 1A.

Net Income (Loss) from Continuing Operations

Net income from continuing operations was $25.6 million, or $0.11 per diluted share, compared to net loss of $346.9 million, or $1.59 per share.

The increase in net income from continuing operations was driven by strong operating results at Wharf and Palmarejo, a 22% and 29% increase in average realized gold and silver prices, respectively, lower operating costs at Rochester and Silvertip, and an impairment of long-lived assets at Silvertip of $250.8 million in 2019.

This was partially offset by lower sales of gold and silver (3% and 19%, respectively), higher exploration expense, ongoing carrying and severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols.

Adjusted net income was $59.0 million, or $0.24 per diluted share, compared to adjusted net loss of $54.6 million, or $0.25 per share (see “Non-GAAP Financial Performance Measures”).

Net loss was $31.3 million, or $0.13 per diluted share, compared to net income of $25.6 million, or $0.11 per diluted share.

The decrease in net income was driven by higher operating costs, the $26.0 million VAT write-down , higher exploration expense, a $9.2 million loss on debt extinguishment and higher income and mining taxes.

This was partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively and higher silver ounces sold (5%).

Adjusted net loss was $1.4 million, or $0.01 per diluted share, compared to an adjusted net income of $59.0 million, or $0.24 per diluted share (see “Non-GAAP Financial Performance Measures”).

2023 Guidance Framework

Gold and silver production is expected to increase compared to 2022, driven by the planned construction completion of POA 11 at Rochester mid-year as well as higher expected grades at Wharf due to mine sequencing and resource model enhancements.

Overall cost guidance has increased compared to 2022 primarily driven by expected continued inflationary pressures on operating costs.

Additionally, with the completion of the POA 11 expansion construction expected in mid-2023, Coeur has elected to defer providing cost guidance at Rochester until mid-year, following the transitional period anticipated in the first half of 2023.

The Company expects to have an LCM adjustment at Rochester of roughly $10 - $15 million each quarter in 2023.

2023 Production Guidance

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Silver ounces sold 6,695,454 6,805,816 6,301,516

Costs applicable to sales per gold ounce (1)

CAS per gold ounce (1)

$ 886 $ 664 $ 610

Costs applicable to sales per silver ounce (1)

CAS per silver ounce (1)

$ 13.09 $ 11.97 $ 9.14

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Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold and silver production decreased 2% as a result of 12% and 8% lower gold and silver grades, respectively, partially offset by 4% higher mill throughput.

Metal sales were $303.4 million, or 38% of Coeur’s metal sales, compared with $320.3 million, or 38% of Coeur’s metal sales.

Revenue decreased by $16.8 million or 5%, of which $12.0 million was due to lower average realized silver prices and $4.8 million resulting from lower gold and silver production.

Costs applicable to sales per gold and silver ounce increased 33% and 9%, respectively, due to the mix of gold and silver sales, lower production, higher employee-related and consumable costs primarily due to inflationary pressures, and the absence of the favorable impact of foreign currency hedges ($13.8 million) included in the prior year.

Amortization decreased by $0.7 million to $35.4 million due to lower sales and longer assumed mine life.

Capital expenditures increased to $42.6 million from $36.5 million due to higher underground development, infill drilling activities and flotation and thickener equipment purchases.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

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

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Metal sales were $320.3 million, or 38% of Coeur’s metal sales, compared with $286.6 million, or 36% of Coeur’s metal sales.

Revenue for the year ended December 31, 2021 increased by $33.7 million or 12%, of which $23.9 million was due to higher average realized silver prices and $9.8 million was the result of a higher volume of silver sales.

Revenue increased by $33.7 million, or 12%, of which $23.9 million was due to higher average realized silver prices and $9.8 million was the result of a higher volume of silver sales.

Costs applicable to sales per gold and silver ounce increased 9% and 31%, respectively, due to the mix of gold and silver sales, and higher employee-related, maintenance and consumable costs largely due to inflationary pressures, partially offset by the favorable impact of foreign currency hedges ($13.8 million).

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Capital expenditures increased to $36.5 million from $25.0 million due to higher underground development and infill drilling activities.

Year Ended December 31, 2020 compared to Year Ended December 31, 2019

Gold and silver production decreased 1% and 7%, respectively, as a result of lower gold and silver grades, partially offset by higher gold and silver recovery.

In the second quarter, Palmarejo temporarily suspended active mining and processing activities in accordance with a COVID-related government decree.

After receiving guidance from the Mexican government in May that the suspension decree did not apply to precious metals mining, production began ramping back up in June, increasing steadily during the month as staffing levels returned to a pre-shutdown level.

Despite the temporary suspension, Palmarejo’s milled tons were in-line with the prior year.

Metal sales were $286.6 million, or 36% of Coeur’s metal sales, compared with $252.7 million, or 36% of Coeur’s metal sales.

Revenue for the year ended December 31, 2020 increased by $33.9 million or 13%, of which $52.6 million was due to higher average realized gold and silver prices, partially offset by a decrease of $18.7 million due to a lower volume of gold and silver sales.

Costs applicable to sales per gold ounce decreased 11% while costs applicable to sales per silver ounce remained comparable due to higher revenue contribution from silver sales compared to gold.

Additionally, favorable foreign exchange rates and lower compensation and consumable costs contributed to an overall favorable movement in costs applicable to sales.

Amortization decreased to $44.9 million due to longer assumed mine life based on year-end 2019 reserve growth and lower gold and silver ounces sold.

Capital expenditures decreased to $25.5 million from $32.7 million due to lower underground development and lower mining equipment expenditures.

Year ended December 31,

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Silver ounces sold 3,028,986 3,241,624 3,054,139

Costs applicable to sales per gold ounce (1)

CAS per gold ounce (1)

$ 2,403 $ 1,801 $ 1,377

Costs applicable to sales per silver ounce (1)

CAS per silver ounce (1)

$ 27.26 $ 25.10 $ 16.35

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Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold production increased 28% primarily due to increased tons placed and higher gold grades, while silver production decreased 3%, as a result of lower silver grades and timing of recoveries.

Metal sales were $129.7 million, or 17% of Coeur’s metal sales, compared with $130.8 million, or 16% of Coeur’s metal sales.

Revenue decreased by $1.2 million, or 1%, of which $9.1 million was primarily due to lower average realized silver prices, partially offset by an increase of $7.9 million primarily due to higher gold production.

Costs applicable to sales per gold and silver ounce increased 33% and 9%, respectively, due to the mix of gold and silver sales and higher LCM adjustments of $46.0 million compared to $12.6 million in the prior year, driven by lower silver metal prices, higher employee-related, maintenance, diesel and other consumable costs primarily due to inflationary pressures.

Amortization increased to $22.6 million due to higher equipment depreciation from recent equipment purchases and the impact of LCM adjustments.

Capital expenditures increased to $246.4 million from $166.5 million due to planned payments related to the POA 11 expansion project and equipment purchases.

As of December 31, 2022, the Company had committed approximately $605 million of capital since inception of the POA 11 expansion project and approximately $494 million of the estimated project cost had been incurred.

Total estimated project capital remains between $650 - $670 million.

At the end of 2022, the project was 74% complete.

Progress on the Merrill-Crowe plant remained on schedule, including (i) completion of mechanical equipment setting, (ii) completion of process plant building cladding, (iii) commencement of electrical cable installation and continuation of piping installation, and (iv) successful completion of control systems programming and factory testing.

Further work on the crusher corridor also advanced, including (i) completion of the first lift of the primary crusher vertical concrete, (ii) continuation of steel erection and equipment installation above the secondary cone crushers in the secondary crusher area, (iii) continuation of steel erection and equipment installation above the tertiary HPGR crushers in the tertiary crusher area, and (iv) commencement of control systems programming.

Coeur made solid progress on the final major high-voltage electrical distribution and substation construction, while also advancing pre-commissioning planning and system development.

Mechanical completion remains on target for mid-2023 with ramp-up and commissioning expected to take place during the second half of the year.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold and silver production remained comparable year over year.

Metal sales were $130.8 million, or 16% of Coeur’s metal sales, compared with $110.3 million, or 14% of Coeur’s metal sales.

Revenue for the year ended December 31, 2021 increased by $20.6 million or 19%, of which $13.3 million was the result of higher average realized gold and silver prices and $7.3 million was the result of a higher volume of gold and silver sales.

Revenue increased by $20.6 million, or 19%, of which $13.3 million was the result of higher average realized gold and silver prices and $7.3 million was the result of a higher volume of gold and silver sales.

Costs applicable to sales per gold and silver ounce increased 31% and 54%, respectively, due to the mix of gold and silver sales, higher employee-related, maintenance and consumable costs partially due to inflationary pressures, and a LCM adjustment of $7.3 million.

1 unchanged sentence

Capital expenditures increased to $166.5 million from $37.5 million due to the commencement of construction activities related to POA 11 in August 2020.

In the second half of 2021 the Company began seeing inflationary pressures on bids for remaining unawarded contracts on the POA 11 expansion project at Rochester during the second half of 2021, most notably on two structural, mechanical, piping, electrical and instrumentation (“SMPEI”) construction contracts for the Merrill-Crowe process plant and crushing circuit, respectively.

Coeur recently selected the general SMPEI contractor for construction of the Merrill-Crowe process plant and crusher corridor based on a revised commercial approach from the previous lump-sum commercial model to a single contract.

SMPEI work under the initial contract is beginning to advance.

Coeur has also advanced work related to implementation of pre-screens as part of the POA 11 expansion project and has elected to proceed with this scope change enhancement.

As previously disclosed, the Company plans to integrate pre-screens into the current crushing system at Rochester, which is expected to drive improved performance while providing valuable operating experience and knowledge that can be applied to the new crushing circuit as part of the POA 11 expansion.

Coeur has commenced detailed engineering for pre-screens and intends to align construction of the pre-screens with the completion of the crusher corridor.

Installation of pre-screens on the existing crusher system is scheduled for the first half of 2022 with commissioning expected to begin around mid-year.

In connection with the items discussed above, the Company has conducted a comprehensive re-baselining of the overall schedule and costs associated with the original scope of POA 11.

Coeur now estimates the total construction capital for POA 11 to be approximately $597 million, which includes the 10-15% previously announced potential cost escalation as well as $70 - $80 million related to pre-screen implementation and additional project contingency to reflect ongoing COVID and schedule risk.

As of December 31, 2021, the Company has incurred approximately $236 million in the expansion and 61% of the capital is now committed (excluding the recently-awarded SMPEI contract, which is expected to be formalized in the first quarter).

Excluding capital leases, Coeur forecasts capital expenditures related to POA 11 to be approximately $217 - $257 million and $131 - $171 million in 2022 and 2023, respectively.

Additional details on expected production and capital expenditures for Rochester can be found in the Technical Report Summary filed by the Company with the U.S.

Securities and Exchange Commission on February 16, 2022 which is incorporated by reference into this Report.

Year Ended December 31, 2020 compared to Year Ended December 31, 2019

Gold and silver production decreased 23% and 16%, respectively, due to the impact of dilution from stacking high-pressure grinding roll (“HPGR”) crushed material on top of historic ore on the Stage IV leach pad and upset conditions in the Merrill-Crowe process plant due to higher-than-expected fine particulates in pregnant solution from ore placed on newly constructed inter-lift liners in the first nine months of 2020.

Metal sales were $110.3 million, or 14% of Coeur’s metal sales, compared with $112.0 million, or 16% of Coeur’s metal sales.

Revenue for the year ended December 31, 2020 decreased by $1.7 million or 2%, of which $33.8 million was the result of a lower volume of gold and silver sales, partially offset by an increase of $32.1 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 10% and 14%, respectively, driven by higher cyanide and outside service costs and a change in the Company’s recovery rate assumptions.

Amortization decreased to $14.3 million due to lower ounces sold.

Capital expenditures increased to $37.5 million from $22.6 million due to the commencement of construction activities related to POA 11.

Year ended December 31,

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Gold ounces sold 108,972 122,181 124,793

Costs applicable to sales per gold ounce (1)

CAS per gold ounce (1)

$ 1,423 $ 1,086 $ 975

1 unchanged sentence

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold production decreased 10% as a result of 10% lower grades and lower recoveries, partially offset by 5% higher mill throughput.

Metal sales were $202.5 million, or 26% of Coeur’s metal sales, compared to $215.0 million, or 26% of Coeur’s metal sales.

Revenue decreased by $12.5 million, or 6%, of which $24.2 million resulted from lower gold production, partially offset by an increase of $11.7 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 31% due to lower production and higher employee-related, maintenance, diesel and other consumable costs primarily due to inflationary pressures.

Amortization decreased to $39.0 million primarily due to lower ounces sold and longer assumed mine life.

Capital expenditures increased to $31.5 million from $27.5 million due to higher infill drilling and underground development.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold production decreased 3% as a result of lower grade and lower mill throughput.

Metal sales were $215.0 million, or 26% of Coeur’s metal sales, compared to $216.5 million, or 28% of Coeur’s metal sales.

Revenue for the year ended December 31, 2021 decreased by $1.5 million or 1%, of which $4.6 million resulted from lower volume of gold sales, partially offset by an increase of $3.1 million due to higher average realized gold prices.

Revenue decreased by $1.5 million, or 1%, of which $4.6 million resulted from lower volume of gold sales, partially offset by an increase of $3.1 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 11% due to lower production and higher employee-related, maintenance and consumable costs, partially due to inflationary pressures.

1 unchanged sentence

Capital expenditures increased to $27.5 million from $19.8 million due to higher infill drilling and underground development.

Year Ended December 31, 2020 compared to Year Ended December 31, 2019

Gold production decreased 2% as a result of processing lower grade ore and COVID-19 response efforts that temporarily impacted mine production in the first nine months of 2020.

Metal sales were $216.5 million, or 28% of Coeur’s metal sales, compared to $181.1 million, or 25% of Coeur’s metal sales.

Revenue for the year ended December 31, 2020 increased by $35.4 million or 20%, of which $45.3 million was due to higher average realized gold prices, partially offset by a decrease of $9.9 million due to a lower volume of gold sales.

Costs applicable to sales per gold ounce increased 6% due to lower production and higher compensation, outside service and maintenance costs, partially offset by lower diesel costs.

Amortization decreased to $49.5 million due to lower ounces sold.

Capital expenditures decreased to $19.8 million from $23.5 million due to lower underground development.

Year ended December 31,

6 unchanged sentences

Silver ounces sold 47,284 86,397 113,790

Costs applicable to sales per gold ounce (1)

CAS per gold ounce (1)

$ 1,283 $ 997 $ 923

1 unchanged sentence

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold production decreased 12% driven by lower grades.

Metal sales were $150.0 million, or 19% of Coeur’s metal sales, compared to $166.7 million, or 20% of Coeur’s metal sales.

Revenue decreased by $16.7 million, or 10%, of which $23.8 million was due to a lower gold production, partially offset by an increase of $7.1 million due to higher average realized gold prices.

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

Amortization decreased to $8.2 million due to lower ounces sold.

Capital expenditures were $3.1 million.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold production decreased 2% driven by the timing of recoveries.

Metal sales were $166.7 million, or 20% of Coeur’s metal sales, compared to $170.2 million, or 22% of Coeur’s metal sales.

Revenue for the year ended December 31, 2021 decreased by $3.5 million or 2%, of which $5.6 million resulted from a lower volume of gold sales, partially offset by an increase of $2.1 million due to higher average realized gold and silver prices.

Revenue decreased by $3.5 million, or 2%, of which $5.6 million resulted from a lower volume of gold sales, partially offset by an increase of $2.1 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold ounce increased 8% due to higher equipment rental, diesel and employee-related costs partially due to inflationary pressures.

1 unchanged sentence

Capital expenditures were $8.1 million reflecting $4.0 million of infill drilling.

Year Ended December 31, 2020 compared to Year Ended December 31, 2019

Gold production increased 11% driven by higher grade.

Metal sales were $170.2 million, or 22% of Coeur’s metal sales, compared to $121.4 million, or 17% of Coeur’s metal sales.

Revenue for the year ended December 31, 2020 increased by $48.8 million or 40%, of which $31.1 million was due to higher average realized gold and silver prices and $17.7 million was the result of a higher volume of gold and silver sales.

Costs applicable to sales per gold ounce decreased 2% due to higher production and lower diesel costs.

Amortization increased to $12.5 million due to higher ounces sold.

Capital expenditures were $2.4 million.

Year Ended December 31,

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Costs applicable to sales per silver ounce (2)

$ — $ — NM (1)

Costs applicable to sales per zinc pound (2)

$ — $ — NM (1)

Costs applicable to sales per lead ounce (2)

$ — $ — NM (1)

(1) Due to the suspension of mining and processing activities these amounts are not meaningful.

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

Operational results in the table above reflected performance prior to the suspension.

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

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

The Company received preliminary capital estimates for an accelerated expansion and restart in late 2021, which were higher than originally anticipated and reflect overall inflationary pressures as well as supply disruptions and labor market tightness consistent with broader macroeconomic themes.

Capital expenditures increased to $70.1 million from $13.1 million due to planned early civil works construction, higher infill drilling and underground development.

For 2022, capital expenditures are expected to be approximately $15 - 25 million, primarily focusing on the economics of a potential expansion, including study work to evaluate additional opportunities to enhance and restart and as well as continued underground development and infill drilling at the mine.

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

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

Coeur conducted an order of magnitude assessment on multiple throughput scenarios to narrow the range of options for a preferred path forward for Silvertip.

Continued resource growth as well as optimization of operating and capital costs are expected to further enhance project economics.

Near-term, the Company is focused on exploration and managing care and maintenance costs as the Company continues to develop plans for a potential expansion and restart of the Silvertip.

Ongoing carrying costs at Silvertip totaled $21.0 million in 2022, compared to $24.9 million in the prior year.

Capital expenditures in 2022 totaled $24.8 million compared to $70.1 million in the prior year due to continued infill drilling and underground development.

Liquidity and Capital Resources

At December 31, 2022, the Company had $63.2 million of cash, cash equivalents and restricted cash and $280.4 million available under the RCF.

Cash and cash equivalents decreased $36.1 million in the year ended December 31, 2021, due to higher capital expenditures related to POA 11 at Rochester and the potential expansion project at Silvertip coupled with higher operating costs, lower gold ounces sold (2%), higher general and administrative and exploration costs, and the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums.

This was partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively, higher silver ounces sold (5%), $65.0 million drawn from the RCF, and the net proceeds of $367.5 million from the issuance of the 2029 Senior Notes.

Since the start of the COVID-19 pandemic, the Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary).

To provide additional flexibility to respond to potential downside scenarios, the Company has been able to periodically draw and make repayments under its RCF subsequent to the start of the COVID-19 pandemic.

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

Future borrowing under the RCF may be subject to certain financial covenants.

Cash and cash equivalents increased $4.8 million in the year ended December 31, 2022, due to $150.2 million from the sale of the Sterling/Crown exploration properties in the fourth quarter of 2022, net proceeds of $147.4 million from the sale of 36.8 million shares of its common stock under two “at the market” equity offering programs completed in 2022 described below, $40.5 million received in July 2022 from the sale of a portion of the Victoria Gold common shares, $15.3 million received from the sale of the La Preciosa project and $25.6 million of net cash flows provided from operations impacted by a 4% and 10% decrease in gold and silver ounces sold, respectively and a 16% decrease in average realized silver prices and higher operating costs primarily due to inflationary pressures partially offset by $352.4 million of capital expenditures primarily related to the POA 11 expansion project 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 22.1 million 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 $98.0 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.

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

The November Amendment, among other things, (1) modified 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) allowed 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) increased the interest rate on certain borrowings through early 2023, (4) required the Company to repay outstanding amounts under the RCF if cash-on-hand exceeds $60 million during the Amendment Period, and (5) restricted certain payments and the incurrence of certain liens during the Amendment Period.

At December 31, 2022, the Company had $80.0 million drawn and $29.6 million in outstanding letters of credit under the RCF.

The Company also holds $132.0 million of equity securities including a 17.8% interest in Victoria Gold.

Additionally, Coeur established a $100.0 million ATM Program in April 2020 as a means to proactively increase its financial flexibility in response to increased volatility and uncertainty associated with COVID-19.

At the date of this filing, the Company has yet to issue any shares of its common stock under the ATM Program.

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

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

We also have additional potential sources of funding including proceeds from sales under the ATM program, potential asset sales, and the monetization of our equity investments, including our investment in 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.

Excluding capital leases, Coeur forecasts capital expenditures related to POA 11 to be approximately $217 - $257 million and $131 - $171 million in 2022 and 2023, respectively.

Additional details on expected production and capital expenditures for Rochester can be found in the Technical Report Summary filed by the Company with the U.S.

Securities and Exchange Commission on February 16, 2022 which is incorporated by reference into this Report.

On June 28, 2022, the Company entered into an agreement to sell 5.0 million shares of common stock of Victoria Gold at a price of $8.34 per Victoria Gold Common Share, for net proceeds of $40.5 million received in July 2022.

At December 31, 2022, the Company held $44.2 million of equity securities including a 9.4% interest in Victoria Gold.

In January 2023, the Company sold its remaining 6.0 million Victoria Gold common shares, at a price of $6.70 per share, for net proceeds of $39.8 million.

On September 18, 2022, the Company entered into a Stock Purchase Agreement (“Crown Sterling Agreement”) with AngloGold Ashanti (U.S.A.) Holdings Inc.

and its affiliate (“Buyer”) for the sale of 100% of the issued and outstanding shares of Coeur Sterling, Inc., a subsidiary of Coeur that holds the Sterling/Crown exploration properties near Beatty, Nevada, in exchange for:

(A) a cash payment of $150.2 million at the closing of the transaction, subject to a customary purchase price adjustment and (B) the right to an additional payment of $50.0 million 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 Crown Sterling Agreement.

The transaction was consummated on November 4, 2022.

In December 2022, the Company completed a $50.0 million “at the market” offering of its common stock, par value $0.01 per share (the “December Equity Offering”).

The Company sold a total of 14.8 million shares of common stock in the December Equity Offering at an average price of $3.39 per share, raising net proceeds (after sales commissions) of $49.2 million.

As of December 31, 2022, the Company had outstanding forward contracts on 130,500 ounces of gold at December 31, 2022 that settle monthly through December 2023.

The Company is targeting to hedge up to 70% of expected gold production and 50% of expected silver production for 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.

In early 2023, the Company added 49,998 ounces of gold forward contracts and 3.2 million ounces of silver forward contracts that settle monthly through December 2023.

Taking into account the additional gold and silver hedges added in early 2023 the weighted average fixed price on the forward contracts is $1,961 per ounce of gold and $24.55 per ounce of silver.

We currently believe we have sufficient sources of funding to meet our business requirements for the next 12 months and longer-term.

We expect to use a combination of cash provided by operating activities under-pinned by our gold and silver hedging programs, sale of non-core investments, borrowings under our RCF and additional equity financings depending on future commodity prices to fund near term capital requirements, including those described in this Report for the POA 11 expansion project at Rochester and in our 2023 capital expenditure guidance.

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 December 31, 2022, the Company committed approximately $605 million of capital since inception of the project and approximately $494 million of the estimated project cost had been incurred.

Total estimated project capital remains $650 - $670 million.

At the end of 2022, the project was 74% complete.

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.

13 unchanged sentences

Accounts payable and accrued liabilities 510 (7,011) 32,897

Cash provided by operating activities $ 110,482 $ 148,709 $ 91,880

Cash provided by (used in) operating activities $ 25,616 $ 110,482 $ 148,709

Net cash provided by operating activities decreased $84.9 million for the year ended December 31, 2022 compared to the year ended December 31, 2021, primarily due to a 6% and 4% decrease in lower gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, and higher operating costs, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges, lower exploration costs, timing of VAT collections at Palmarejo, and lower Silvertip ongoing carrying costs.

Revenue for the year ended December 31, 2022 compared to the year ended December 31, 2021 decreased by $47.2 million, of which $43.3 million was due to a lower volume of gold and silver sales and $3.9 million was due to lower average realized silver prices.

Net cash provided by operating activities decreased $38.2 million for the year ended December 31, 2021, primarily due to lower gold ounces sold (2%), higher operating costs, exploration costs, and mining and income taxes at Palmarejo, partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively, and higher silver ounces sold (5%).

Revenue for the year ended December 31, 2021 increased by $47.4 million, of which $44.5 million was the result of higher average realized gold and silver prices and $2.9 million was due to the higher volume of silver sales.

Net cash provided by operating activities increased $56.8 million in the year ended December 31, 2020 compared to the year ended December 31, 2019, primarily due to a 22% and 29% increase in average realized gold and silver prices, respectively, and lower metal inventory write-downs at Silvertip, partially offset by lower ounces sold of gold and silver (3% and 19%, respectively).

Revenue for the year ended December 31, 2020 increased by $74.0 million, of which $151.9 million was the result of higher average realized gold and silver prices, partially offset by a decrease of $77.9 million due to lower volume of gold and silver sales.

Cash Used in Investing Activities

Net cash used in investing activities in the year ended December 31, 2022 was $146.2 million compared to $304.1 million in the year ended December 31, 2021.

Cash used in investing activities increased primarily due to construction activities related to POA 11 at Rochester and the potential expansion at Silvertip in the current period and the impact of the net proceeds of $19.4 million from the sale of Metalla Common Shares in the comparable period of 2020.

Cash used in investing activities decreased primarily due to receipt of net proceeds of $150.2 million and $15.3 million from the sale of the Sterling/Crown exploration properties and La Preciosa project, respectively, and net proceeds of $40.5 million in July 2022 from the sale of a portion of the Victoria Gold common shares, partially offset by an increase in capital expenditures.

The Company incurred capital expenditures of $352.4 million in the year ended December 31, 2022 compared with $309.8 million in the year ended December 31, 2021.

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

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

Capital expenditures in the year ended December 31, 2020 were primarily related to POA 11 at Rochester, which commenced construction activities during the third quarter, 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.

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 at the POA 11 project at Rochester, and to operating costs company-wide.

Net cash used in investing activities in the year ended December 31, 2021 was $304.1 million compared to $65.7 million in the year ended December 31, 2020.

Cash used in investing activities decreased primarily due to the net proceeds of $30.1 million from the sale of the Company’s equity investments.

The Company had capital expenditures of $99.3 million in the year ended December 31, 2020 compared with $99.8 million in the year ended December 31, 2019.

common shares in the comparable period of 2020.

The Company incurred capital expenditures of $309.8 million in the year ended December 31, 2021 compared with $99.3 million in the year ended December 31, 2020.

Capital expenditures in the year ended December 31, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new thickener at Palmarejo, POA 11 and the new crushing circuit, including the HPGR unit at Rochester.

Cash Provided by (Used in) Financing Activities

Net cash provided by financing activities in the year ended December 31, 2022 was $125.0 million compared to $158.1 million in the year ended December 31, 2021.

During the year ended December 31, 2022, the Company drew $15.0 million, net, from the RCF and received net proceeds of $147.4 million from the sale of 36,820,110 shares of its common stock in the March Equity Offering and the December Equity Offering.

During the year ended December 31, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, and drew $65.0 million, net, from the RCF, 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 year ended December 31, 2021 was $158.1 million compared to net cash used in financing activities of $46.5 million in the year ended December 31, 2020.

2 unchanged sentences

During the year ended December 31, 2020, the Company fully repaid the $150.0 million drawn from the RCF during 2020, and paid contingent cash consideration of $18.8 million associated with the Silvertip acquisition.

The Company secured a finance lease package for nearly $60 million during the year, a portion of which has been funded as of December 31, 2021.

The Company secured a finance lease package for nearly $60.0 million during the year ended December 31, 2021, of which $55.7 million has been funded.

The package is earmarked for planned equipment purchases for the POA 11 project in 2021, 2022, and 2023 and has an interest rate of 5.2%.

Net cash used in financing activities in the year ended December 31, 2020 was $46.5 million compared to $60.9 million in the year ended December 31, 2019.

During the year ended December 31, 2019, the Company repaid $135.0 million, net, of outstanding amounts under the RCF and paid contingent cash consideration of $18.7 million associated with the Silvertip acquisition, partially offset by net proceeds of approximately $123.1 million from the sale of 30.9 million shares of its common stock.

Critical Accounting Policies and Accounting Developments

18 unchanged sentences

Prices can either be fixed or based on a quotational period.

The quotational period

varies by contract, but is generally a one-month period following the shipment of the concentrate.

The quotational period varies by contract, but is generally a one-month period following the shipment of the concentrate.

The performance obligation is satisfied when risk of loss is transferred to the customer.

21 unchanged sentences

An impairment loss is measured by discounted estimated future cash flows, and recorded by reducing the asset's carrying amount to fair value.

Future cash flows are estimated based on estimated quantities of recoverable minerals, expected gold, silver, lead and zinc prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans.

During 2019, the Company recorded a non-cash impairment charge of $250.8 million.

The write-down was allocated between Property, plant and equipment, net , Mining properties, net and Other non-current assets , in the amounts of $43.6 million, $201.5 million and $5.7 million, respectively.

Future cash flows are estimated based on estimated quantities of recoverable minerals, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans.

Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves are included when determining the fair value of mine site asset groups at acquisition and, subsequently, in determining whether the assets are impaired.

The term “recoverable minerals” refers to the estimated amount of gold, silver, lead and zinc that will be obtained after taking into account losses during ore processing and treatment.

The term “recoverable minerals” refers to the estimated amount of gold and silver that will be obtained after taking into account losses during ore processing and treatment.

Estimates of recoverable minerals from exploration stage mineral interests are risk adjusted based on management’s relative confidence in such materials.

The ability to achieve the estimated quantities of recoverable minerals from exploration stage

mineral interests involves further risks in addition to those risk factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineral reserves and resources could ultimately be mined economically.

The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those risk factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineral reserves and resources could ultimately be mined economically.

Assets classified as exploration potential have the highest level of risk that the carrying value of the asset can be ultimately realized, due to the still lower level of geological confidence and economic modeling.

Gold, silver, zinc and lead prices are volatile and affected by many factors beyond the Company’s control, including prevailing interest rates and returns on other asset classes, expectations regarding inflation, speculation, currency values, governmental decisions regarding precious metals stockpiles, global and regional demand and production, political and economic conditions and other factors may affect the key assumptions used in the Company’s impairment testing.

Gold and silver prices are volatile and affected by many factors beyond the Company’s control, including prevailing interest rates and returns on other asset classes, expectations regarding inflation, speculation, currency values, governmental decisions regarding precious metals stockpiles, global and regional demand and production, political and economic conditions and other factors may affect the key assumptions used in the Company’s impairment testing.

Various factors could impact our ability to achieve forecasted production levels from proven and probable reserves.

2 unchanged sentences

Ore on Leach Pads

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

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

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

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

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

The Company then processes the ore through crushing facilities where the

output is again weighed and sampled for assaying.

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

2 unchanged sentences

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

After precipitation, the product is converted to doré, which is the final product produced by the mine.

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

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

The historical cost of the metal that is expected to be extracted within 12 months is classified as current.

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

The estimate of both the ultimate recovery expected over time and the quantity of metal that may be extracted relative to the time the leach process occurs requires the use of estimates and relies upon laboratory testwork.

Testwork consists of 60-day leach columns from which the Company projects metal recoveries up to five years in the future.

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

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

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

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

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

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

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

2 unchanged sentences

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

In 2020, the Company revised its recovery rate assumptions in line with the updated technical report for Rochester filed in December 2020.

This change resulted in an adjustment to the ending Ore on leach pads balance with the resulting charges allocated between Costs Applicable to Sales and Amortization in the amounts of $7.2 million and $1.2 million, respectively.

In June 2021, the Company updated the recovery rate assumption on the Stage IV leach pad at Rochester, based on the historical performance of the leach pad since the third quarter of 2019.

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

As of December 31, 2022, the Company’s estimated recoverable ounces of gold and silver on the leach pads were 40,083 and 4.7 million, respectively.

The Company recognizes obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs.

20 unchanged sentences

Significant judgment is required in determining the annual tax expense, current tax assets and liabilities, deferred tax assets and liabilities, and our future taxable income, both as a whole and in various tax jurisdictions, for purposes of assessing our ability to realize future benefit from our deferred tax assets.

Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year’s liability by taxing authorities.

Actual income taxes could vary from

these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year’s liability by taxing authorities.

The Company’s deferred income taxes reflect the impact of temporary differences between the reported amounts of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations.

20 unchanged sentences

We evaluate any such transactions in light of prevailing market conditions, liquidity requirements, contractual restrictions, and other factors.

amounts involved may be significant and any debt repurchase transactions may occur at a substantial discount to the debt securities’ face amount.

The amounts involved may be significant and any debt repurchase transactions may occur at a substantial discount to the debt securities’ face amount.

Non-GAAP Financial Performance Measures

12 unchanged sentences

Net income (loss) (78,107) $ (31,322) $ 25,627

(Income) loss from discontinued operations, net of tax — — (5,693)

Fair value adjustments, net 66,668 543 (7,601)

1 unchanged sentence

(Gain) loss on sale of assets and securities (64,429) (4,111) 2,484

Impairment of long-lived assets — — 250,814

RMC bankruptcy distribution (1,651) — —

VAT litigation 1,142 — —

VAT write-off — 25,982 —

7 unchanged sentences

COVID-19 costs 1,739 6,618 15,555

Receivable write-down — — 1,040

Interest income on notes receivables (720) — —

4 unchanged sentences

Adjusted net income (loss) per share, Diluted $ (0.32) $ (0.01) $ 0.24

(1) For the year ended December 31, 2022, tax effect of adjustments of $15.3 million (-558%) 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 and the Sterling /Crown exploration properties .

For the year ended December 31, 2021, tax effect of adjustments of $10.3 million (-27%) is primarily related to the VAT write-off.

For the year ended December 31, 2019, tax effect of adjustments of $19.4 million (-6%) is primarily related to the write-down of Silvertip inventory.

EBITDA and Adjusted EBITDA

1 unchanged sentence

The Company believes the use of EBITDA reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies.

Adjusted EBITDA is a measure used in indenture governing the 2029 Senior Notes and the RCF to determine our ability to make certain payments and incur additional indebtedness.

Adjusted EBITDA is a measure used in the indenture governing the 2029 Senior Notes and the RCF to determine our ability to make certain payments and incur additional indebtedness.

EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income (Loss) or Cash Flow from Operations as determined under GAAP.

4 unchanged sentences

Net income (loss) $ (78,107) $ (31,322) $ 25,627

(Income) loss from discontinued operations, net of tax — — (5,693)

Interest expense, net of capitalized interest 23,861 16,451 20,708

7 unchanged sentences

(Gain) loss on sale of assets and securities (64,429) (4,111) 2,484

Impairment of long-lived assets — — 250,814

RMC bankruptcy distribution (1,651) — —

VAT litigation 1,142 — —

VAT write-off — 25,982 —

7 unchanged sentences

Wharf inventory write-down — — 3,323

Receivable write-down — — 1,040

Interest income on notes receivables (720) — —

Adjusted EBITDA (1)

$ 138,954 $ 216,112 $ 263,565

(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, year over year.

Previously, annual Adjusted EBITDA only included the current quarter LCM adjustment.

For the years ended December 31, 2022 and 2021, the modification increased the Adjusted EBITDA measure by $38.0 million and $5.3 million, respectively.

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

57 unchanged sentences

Gold ($/oz) $ 664 $ 1,801 $ 1,086 $ 997

Silver ($/oz) $ 9.14 $ 16.35 NM (1)

Zinc ($/lb) NM (1)

Lead ($/lb) NM (1)

(1) Due to the suspension of mining and processing activities these amounts are not meaningful.

Silver ($/oz) $ 11.97 $ 25.10 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Year Ended December 31, 2020

10 unchanged sentences

Gold ($/oz) $ 610 $ 1,377 $ 975 $ 923

Silver ($/oz) $ 9.13 $ 14.34 $ 31.92

Zinc ($/lb) $ 2.34

Lead ($/lb) $ 1.76

Silver ($/oz) $ 9.14 $ 16.35 NM (1)

Zinc ($/lb) NM (1)

Lead ($/lb) NM (1)

(1) Due to the suspension of mining and processing activities these amounts are not meaningful.

Reconciliation of Costs Applicable to Sales for 2023 Guidance (1)

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

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

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

8 unchanged sentences

Gold 51% 100% 100%

Silver 51% 54%

Adjusted costs applicable to sales

1 unchanged sentence

Silver ($/oz) $14.25 - $15.25

(1) With the completion of the POA 11 expansion construction expected in mid-2023, Coeur has elected to defer providing cost guidance at Rochester until mid-year 2023.

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-K

Item 7. Management’s Discussion and Analysis