24 unchanged sentences
Ore on Leach Pads – Rochester mine
−Removed: As described further in Notes 2 and 6 to the consolidated financial statements , the Company’s ore on leach pads balance of $154 million which includes the Rochester mine for a total of $130 million at December 31, 2021.
+Added: As described further in Notes 2 and 5 to the consolidated financial statements , the Company’s ore on leach pads balance of $134 million which includes the Rochester mine for a total of $109 million as of December 31, 2022.
This is a current balance of $58 million and a non-current balance of $51 million.
2 unchanged sentences
The historical cost of metal expected to be extracted within twelve months is classified as current on the balance sheet.
−Removed: We identified the measurement and valuation for the ore on leach pads for
−Removed: the Rochester mine as a critical audit matter.
−Removed: The principal considerations for our determination that Rochester’s ore on leach pads is a critical audit matter are that certain management assumption are complex and have a higher degree of estimation uncertainty that changes in these assumptions
−Removed: could have a significant impact on the balance.
+Added: We identified the measurement and valuation for the ore on leach pads for the Rochester mine as a critical audit matter.
+Added: The principal considerations for our determination that Rochester’s ore on leach pads is a critical audit matter are that certain management assumption are complex and have a higher degree of estimation uncertainty that changes in these assumptions could have a significant impact on the balance.
In turn, auditing Rochester’s ore on leach pads requires significant auditor judgement.
Our audit procedures related to Rochester’s ore on leach pads included the following, among others.
−Removed: • We obtained and tested Rochester’s 2021 roll forward of the estimated ounces and costs added to, recovered from, and the resulting ending amounts of ounces and costs of the ore on leach pads balance, including testing of certain assumptions, such as recovery rates and ore grades.
+Added: • We obtained and tested Rochester’s 2022 roll forward of the estimated ounces and costs added to, recovered from, and the resulting ending amounts of ounces and costs of the ore on leach pads balance, including testing of certain assumptions, such as recovery rates, ore grades and the related lower of cost or market analysis.
• For the roll forward of estimated ounces, we assessed the completeness and accuracy of mining production information, including tests of daily tonnage processed.
• We evaluated management’s laboratory procedures related to assay testing used to estimate ore grade.
−Removed: • We evaluated the Company’s use of specialists and their qualifications and experience related to their input on the recovery rates, including the updated recovery rates, and ore grades estimates used by management in its calculation of ore on leach pads.
+Added: • We evaluated the Company’s use of specialists and their qualifications and experience related to their input on the recovery rates and ore grades estimates used by management in its calculation of ore on leach pads.
• We assessed the estimated timing of recoveries, which management uses in classifying current and non-current portions of the ore on leach pads balance.
41 unchanged sentences
Ore on leach pads 5 82,958 81,128
+Added: Equity securities 6 32,032 —
Prepaid expenses and other 25,814 13,847
47 unchanged sentences
Exploration 26,624 51,169 42,643
−Removed: Impairment of long-lived assets — — 250,814
Pre-development, reclamation, and other 16 41,287 48,678 55,654
8 unchanged sentences
Income and mining tax (expense) benefit 12 ( 14,658 ) ( 34,958 ) ( 37,045 )
−Removed: Income (loss) from continuing operations $ ( 31,322 ) $ 25,627 $ ( 346,896 )
−Removed: Income (loss) from discontinued operations 23 — — 5,693
NET INCOME (LOSS) $ ( 78,107 ) $ ( 31,322 ) $ 25,627
2 unchanged sentences
Reclassification adjustments for realized (gain) loss on cash flow hedges ( 23,890 ) ( 12,859 ) 1,434
−Removed: Unrealized gain (loss) on debt and equity securities — — 59
Other comprehensive income (loss) 13,555 9,924 ( 11,000 )
2 unchanged sentences
Basic income (loss) per share:
−Removed: Net income (loss) from continuing operations $ ( 0.13 ) $ 0.11 $ ( 1.59 )
−Removed: Net income (loss) from discontinued operations — — 0.03
Basic $ ( 0.28 ) $ ( 0.13 ) $ 0.11
−Removed: Diluted income (loss) per share:
−Removed: Net income (loss) from continuing operations $ ( 0.13 ) $ 0.11 $ ( 1.59 )
−Removed: Net income (loss) from discontinued operations — — 0.03
Diluted $ ( 0.28 ) $ ( 0.13 ) $ 0.11
9 unchanged sentences
Net income (loss) $ ( 78,107 ) $ ( 31,322 ) $ 25,627
−Removed: (Income) loss from discontinued operations — — ( 5,693 )
Amortization 111,626 128,315 131,387
5 unchanged sentences
Gain on modification of right of use lease — — ( 4,051 )
−Removed: Impairment of long-lived assets 4 — — 250,814
+Added: Gain on the sale of Sterling/Crown ( 62,249 ) — —
Write-downs 5 45,978 38,596 16,821
12 unchanged sentences
Sale of investments 40,469 935 30,831
−Removed: Proceeds from notes receivable — — 7,168
Other ( 107 ) ( 99 ) ( 252 )
25 unchanged sentences
Other comprehensive income (loss) — — — — ( 11,000 ) ( 11,000 )
−Removed: Common stock issued for the extinguishment of Senior Notes 4,453 45 21,246 — — 21,291
−Removed: Common stock issued under "at the market" stock offering 30,850 309 122,523 — — 122,832
Common stock issued for Silvertip contingent consideration payment 878 9 5,286 — — 5,295
3 unchanged sentences
Other comprehensive income (loss) — — — — 9,924 9,924
−Removed: Common stock issued for Silvertip contingent consideration payment 878 9 5,286 — — 5,295
+Added: Common stock issued for investment 12,786 128 118,649 118,777
Common stock issued/canceled under long-term incentive plans and director fees and options, net 381 3 9,401 — — 9,404
2 unchanged sentences
Other comprehensive income (loss) — — — — 13,555 13,555
−Removed: Common stock issued for investment 12,786 128 118,649 118,777
+Added: Common stock issued under "at the market"
+Added: stock offering 36,820 368 146,547 — — 146,915
Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,959 20 6,371 — — 6,391
18 unchanged sentences
A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets.
+Added: In addition to changes in commodity prices, other factors such as changes in mine plans, increases in costs, geotechnical failures, changes in social, environmental or regulatory requirements and impacts of global events such as the COVID-19 pandemic could result in material impairment charges related to these assets.
Use of Estimates
−Removed: The Company's Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles.
+Added: The Company's Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S.
The preparation of the Company's Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period.
12 unchanged sentences
At certain times, amounts on deposit may exceed federal deposit insurance limits.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
Trade receivables and other receivable balances are reported at outstanding principal amounts, net of an allowance for doubtful accounts, if deemed necessary.
4 unchanged sentences
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.
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
The Company uses several integrated steps to scientifically measure the metal content of ore placed on the leach pads.
17 unchanged sentences
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.
−Removed: In 2020, the Company revised its recovery rate assumptions in line with the updated technical report for Rochester filed in December 2020.
−Removed: 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.
−Removed: 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.
−Removed: 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.
Metal and Other Inventory
11 unchanged sentences
Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines.
−Removed: Costs incurred before mineralization are classified as proven and probable reserves and are capitalized if a project is in pre-production phase or expensed and classified as Exploration or Pre-development if the project is not yet in pre-production.
−Removed: Mine development costs are amortized using the units-of-production method over the estimated life of the ore body generally based on recoverable ounces to be mined from proven and probable reserves.
+Added: Costs incurred before mineralization are classified as proven and probable reserves and are capitalized if a project is in pre-production phase or expensed and classified as Exploration or Pre-development if the
Coeur Mining, Inc.
1 unchanged sentence
Notes to Consolidated Financial Statements
−Removed: expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use.
+Added: project is not yet in pre-production.
+Added: Mine development costs are amortized using the units-of-production method over the estimated life of the ore body generally based on recoverable ounces to be mined from proven and probable reserves.
+Added: Interest expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use.
Drilling and related costs incurred at the Company’s operating mines are expensed as incurred in Exploration, unless the Company can conclude with a high degree of confidence, prior to the commencement of a drilling program, that the drilling costs will result in the conversion of a mineral resource into mineral reserve.
27 unchanged sentences
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.
−Removed: During the fourth quarter of 2019, the Company performed a comprehensive analysis of its Silvertip property and determined that indicators of impairment existed, primarily as a result of continued deterioration in zinc and lead market conditions as well as ongoing challenges related to the processing facility.
−Removed: As a result of the impairment indicators, a recoverability test was performed and the Company concluded that the long-lived assets for the Silvertip property was impaired.
−Removed: A non-cash impairment charge of $ 250.8 million was recorded during the fourth quarter of 2019.
−Removed: 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.
−Removed: See Note 4 -- Impairment of Long-lived Assets and 16 -- Fair Value Measurements for additional detail of the impairment and assumptions used in the determination of the fair value of the long-lived assets tested for impairment.
+Added: 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.
+Added: Various factors could impact our ability to achieve forecasted production levels from proven and probable reserves.
+Added: Additionally, production, capital and reclamation costs could differ from the assumptions used in the cash flow models used to assess impairment.
+Added: Actual results may vary from the Company’s estimates and result in additional Impairment of Long-lived Assets .
Coeur Mining, Inc.
12 unchanged sentences
At September 30, 2021, the La Preciosa project met the held for sale criteria.
−Removed: However, considering that the La Preciosa project was not an operating mine and does not represent a strategic shift, the Company determined that the expected disposal of the La Preciosa project does not represent a strategic shift that had a major effect on the entity's results and operations, therefore, the applicable assets, liabilities for the current period presented are classified on the Consolidated Balance Sheets as held for sale.
−Removed: However, the applicable assets, liabilities for the prior period and the operating results for all periods presented are not presented separately as held for sale.
+Added: However, considering that the La Preciosa project was not an operating mine, the Company determined that the expected disposal of the La Preciosa project did not represent a strategic shift that had a major effect on the entity's results and operations, therefore, the applicable assets, liabilities presented at December 31, 2021 are classified on the Consolidated Balance Sheets as held for sale.
+Added: The operating results for the applicable period presented are not presented separately as held for sale.
+Added: The closing of the sale of the La Preciosa project occurred on March 21, 2022.
+Added: See Note 21 -- Dispositions.
Restricted Assets
14 unchanged sentences
Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.
+Added: We have elected to not recognize operating lease assets and liabilities for short-term leases that have a lease term of twelve months or less.
Lease expense is recognized on a straight-line basis over the lease term.
27 unchanged sentences
Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of Costs applicable to sales or Pre-development, reclamation and other in the same period the related expenses are incurred.
−Removed: For derivatives not designated as hedging instruments, the Company recognizes derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value.
−Removed: Changes in the value of derivative instruments not designated as hedging instruments are recorded each period in the Consolidated Statement of Comprehensive Income (Loss) in Fair value adjustments, net or Revenue .
+Added: For derivatives not designated as hedging instruments, the Company recognizes derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value.
+Added: Changes in the value of derivative instruments not designated as hedging instruments are recorded each period in the Consolidated Statements of Comprehensive Income (Loss) in Fair value adjustments, net or Revenue .
Management applies judgment in estimating the fair value of instruments that are highly sensitive to assumptions regarding commodity prices, market volatilities, and foreign currency exchange rates.
46 unchanged sentences
The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.
−Removed: The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.
+Added: The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheets.
See Note 19 -- Commitments and Contingencies for additional detail.
−Removed: The following table presents a rollforward of the Franco-Nevada contract liability balance:
+Added: The following table presents a roll forward of the Franco-Nevada contract liability balance:
Year Ended December 31,
3 unchanged sentences
Closing Balance $ 7,411 $ 8,150 $ 9,376
−Removed: In December 2020, the Company received a $ 15.0 million prepayment (the “December 2020 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 21).
−Removed: In the first half of 2021, the Kensington mine delivered $ 15.0 million of gold concentrate to the counterparty in satisfaction of this prepayment obligation.
−Removed: The Amended Sales Contract was further amended effective June 2021, to include options for Coeur to receive up to two additional prepayments of up to $15.0 million each for deliveries of gold concentrate from the Kensington mine, and Coeur exercised the option to receive the first $ 15.0 million prepayment in June 2021 (the “June 2021 Prepayment”), of which $ 15.0 million in gold ounces were delivered in the second half 2021.
−Removed: In December 2021, the Company exercised the option to receive the second $ 15.0 million prepayment (the “December 2021 Prepayment).
+Added: In December 2021, the Company received a $ 15.0 million prepayment (the “December 2021 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 19 -- Commitments and Contingencies).
+Added: In March 2022, the Company exercised an option to receive a $ 10.0 million prepayment (the “March 2022 Prepayment).
+Added: The Amended Sales Contract was further amended in June 2022 to consolidate the remaining deliveries of $ 15.0 million and $ 10.0 million under the December 2021 Prepayment and March 2022 Prepayment (the “June 2022 Consolidated Prepayment”).
+Added: In December 2022, the Company exercised an option to receive a $ 25.0 million prepayment (the “December 2022 Prepayment”) concurrent with the repayment of the June 2022 Consolidated Prepayment in full.
The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer.
−Removed: The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheet.
+Added: The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheets.
See Note 19 -- Commitments and Contingencies for additional detail.
2 unchanged sentences
Notes to Consolidated Financial Statements
−Removed: The following table presents a rollforward of the Amended Sales Contract liability balance:
+Added: The following table presents a roll forward of the Amended Sales Contract liability balance:
Year Ended December 31,
4 unchanged sentences
Closing Balance $ 25,016 $ 15,016 $ 15,003
−Removed: Recently Adopted Accounting Standards
−Removed: In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No.
−Removed: 2019-12 (“ASU 2019-12”) “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes.
−Removed: ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application.
−Removed: ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company).
−Removed: Early adoption is permitted.
−Removed: The adoption of the new standard did not have a material impact on the Company’s consolidated net income, financial position or cash flows.
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
+Added: Recently Issued Accounting Standards
+Added: In March 2022, the FASB issued ASU 2022-01, “ Derivatives and Hedging (Topic 815):
+Added: Fair Value Hedging—Portfolio Layer Method ” which is intended to make amendments to the fair value hedge accounting previously issued in ASU 2017-12 “ Derivatives and Hedging (Topic 815):
+Added: Targeted Improvements to Accounting for Hedging Activities ”.
+Added: The new standard is effective for reporting periods beginning after December 15, 2022.
+Added: The standard introduced the portfolio layer method allowing multiple hedged layers of a single closed portfolio when applying fair value hedge accounting.
+Added: The Company plans to adopt the new derivatives and hedging standards effective January 1, 2023 and does not expect the new derivatives and hedging standard to have a material effect on our financial position, results of operations or cash flows.
NOTE 3 – SEGMENT REPORTING
−Removed: The Company’s operating segments include the Palmarejo, Rochester, Kensington, Wharf and Silvertip mines.
−Removed: Except for the Silvertip development property, all operating segments are engaged in the discovery, mining, and production of gold and/or silver.
−Removed: The Silvertip development property, which suspended mining and processing activities in February 2020, is engaged in the discovery of silver, zinc and lead.
−Removed: Other includes the Sterling/Crown and La Preciosa projects, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.
+Added: The Company’s operating segments include the Palmarejo, Rochester, Kensington and Wharf mines and Silvertip exploration property.
+Added: Except for the Silvertip exploration property, all operating segments are engaged in the discovery, mining, and production of gold and/or silver.
+Added: The Silvertip exploration property, which suspended mining and processing activities in February 2020, is engaged in the discovery of silver, zinc and lead.
+Added: Other includes the Sterling/Crown exploration properties (which were sold in the fourth quarter of 2022), other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.
+Added: In 2022 the Company disposed of the Sterling/Crown exploration properties and La Preciosa project, see Note 21 -- Dispositions for additional information.
Financial information relating to the Company’s segments is as follows (in thousands):
10 unchanged sentences
Other income (expense)
−Removed: Loss on debt extinguishment — — — — — ( 9,173 ) ( 9,173 )
Fair value adjustments, net — — — — — ( 66,668 ) ( 66,668 )
10 unchanged sentences
(3) See Note 16 -- Additional Comprehensive Income (Loss) Detail for additional detail
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
Year Ended December 31, 2021 Palmarejo Rochester Kensington Wharf Silvertip Other Total
1 unchanged sentence
Silver sales 170,176 81,163 370 2,208 — — 253,917
−Removed: Zinc sales — — — — ( 662 ) — ( 662 )
−Removed: Lead sales — — — — 1,315 — 1,315
Metal sales 320,274 130,822 215,005 166,727 — — 832,828
6 unchanged sentences
Other income (expense)
+Added: Loss on debt extinguishment — — — — — ( 9,173 ) ( 9,173 )
Fair value adjustments, net — — — — — ( 543 ) ( 543 )
1 unchanged sentence
Other, net (3)
+Added: ( 28,197 ) ( 357 ) ( 150 ) 1,650 ( 1,465 ) 5,594 ( 22,925 )
Income and mining tax (expense) benefit ( 29,730 ) 559 ( 414 ) ( 4,799 ) 1,478 ( 2,052 ) ( 34,958 )
5 unchanged sentences
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
+Added: (3) See Note 16 -- Additional Comprehensive Income (Loss) Detail for additional detail
Year Ended December 31, 2020 Palmarejo Rochester Kensington Wharf Silvertip Other Total
9 unchanged sentences
Exploration 6,955 3,303 8,568 905 12,228 10,684 42,643
−Removed: Write-downs — — — — 250,814 — 250,814
Other operating expenses 7,927 5,144 12,012 838 23,123 40,332 89,376
Other income (expense)
−Removed: Loss on debt extinguishment — — — — — ( 1,281 ) ( 1,281 )
Fair value adjustments, net — — — — — 7,601 7,601
1 unchanged sentence
Other, net (3)
+Added: ( 5,273 ) ( 2,718 ) ( 18 ) ( 69 ) 1,793 344 ( 5,941 )
Income and mining tax (expense) benefit ( 28,029 ) ( 863 ) ( 1,244 ) ( 6,644 ) — ( 265 ) ( 37,045 )
−Removed: Income (loss) from continuing operations $ 21,647 $ ( 13,553 ) $ 2,044 $ 22,289 $ ( 325,353 ) $ ( 53,970 ) $ ( 346,896 )
−Removed: Income (loss) from discontinued operations $ — $ — $ — $ — — $ 5,693 $ 5,693
+Added: Net Income (loss) $ 67,402 $ ( 3,335 ) $ 22,434 $ 59,501 $ ( 58,927 ) $ ( 61,448 ) $ 25,627
Segment assets (2)
3 unchanged sentences
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
+Added: (3) See Note 16 -- Additional Comprehensive Income (Loss) Detail for additional detail
Assets December 31, 2022 December 31, 2021
3 unchanged sentences
Total consolidated assets $ 1,846,143 $ 1,734,422
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
Geographic Information
11 unchanged sentences
Total $ 785,636 $ 832,828 $ 785,461
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
The Company's doré, as well as the concentrate product produced by the Wharf mine, is refined into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets.
The Company then sells its gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe.
−Removed: The Company had seven trading counterparties at December 31, 2021.
+Added: The Company had five trading counterparties at December 31, 2022.
The Company's sales of doré or concentrate product produced by the Palmarejo, Rochester, and Wharf mines amounted to approximately 74 %, 74 %, and 72 %, of total metal sales for the years ended December 31, 2022, 2021, and 2020, respectively.
−Removed: The Company's gold concentrate product from the Kensington mine and the zinc and lead concentrates from the Silvertip development property are sold under a variety of agreements with smelters and traders, and the smelters and traders pay the Company for the metals recovered from the concentrates.
−Removed: The Company’s sales of concentrate produced by the Kensington and Silvertip development property amounted to approximately 26 %, 28 %, and 32 % of total metal sales for the years ended December 31, 2021, 2020, and 2019, respectively.
+Added: The Company's gold concentrate product from the Kensington mine and the zinc and lead concentrates from the Silvertip exploration property are or were sold under a variety of agreements with smelters and traders, and the smelters and traders pay the Company for the metals recovered from the concentrates.
+Added: The Company’s sales of concentrate produced by the Kensington and Silvertip exploration property (solely in 2020 for periods prior to the suspension of active mining operations) amounted to approximately 26 %, 26 %, and 28 % of total metal sales for the years ended December 31, 2022, 2021, and 2020, respectively.
The Company believes that the loss of any one smelter, refiner, trader or third-party customer would not have a material adverse effect on the Company due to the liquidity of the markets and current availability of alternative trading counterparties.
2 unchanged sentences
Customer 2022 2021 2020 Segments reporting revenue
−Removed: Asahi $ 323.8 $ 272.1 $ 341.0 Palmarejo, Kensington, Rochester, Wharf
+Added: Bank of Montreal $ 341.5 $ 98.7 $ 17.0 Palmarejo, Rochester, Wharf
Ocean Partners 168.9 176.4 161.0 Palmarejo, Kensington, Silvertip
+Added: Asahi 125.3 323.8 272.1 Palmarejo, Rochester, Kensington, Wharf
+Added: Argor-Heraeus 49.3 23.3 79.9 Palmarejo, Rochester
Toronto Dominion Bank 26.5 61.9 88.6 Rochester
Techemet Metal Trading — 62.2 81.8 Rochester, Wharf
−Removed: Argor-Heraeus 23.3 79.9 23.1 Palmarejo
−Removed: NOTE 4 – IMPAIRMENT OF LONG-LIVED ASSETS
−Removed: In 2019, the Company performed a comprehensive analysis of its Silvertip property and determined that indicators of impairment existed, primarily as a result of further deterioration in zinc and lead market conditions as well as processing facility-related challenges.
−Removed: As a result, a non-cash impairment charge of $ 250.8 million was recorded in 2019.
−Removed: The write-down was allocated between Property, plant and equipment, net , Mining properties, net and Other non-current assets , $ 43.6 million, $ 201.5 million and $ 5.7 million, respectively.
−Removed: See Note 15 -- Fair Value Measurements for additional detail of the assumptions used in the determination of the fair value of the long-lived assets tested for impairment.
Coeur Mining, Inc.
8 unchanged sentences
Income tax receivable 9,719 8,418
+Added: Avino note receivable (1)
+Added: Gold forwards realized gains (2)
Other 586 705
1 unchanged sentence
Non-current receivables:
−Removed: VAT receivable (1)
+Added: Deferred cash consideration (1)
+Added: Contingent consideration (1)
Total receivables $ 58,356 $ 32,417
−Removed: (1) Represents VAT that was paid to the Mexican government associated with Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation.
−Removed: While the Company continues to pursue recovery from the Mexican government (including through ongoing litigation and potential international arbitration), the Company wrote down the carrying value of the receivable at September 30, 2021.
−Removed: See Note 20 -- Commitments and Contingencies for additional detail.
+Added: (1) See Note 14 -- Fair Value Measurements for additional details on the Avino note receivable, deferred cash consideration and contingent consideration.
+Added: (2) Represents realized gains on gold forward hedges from December 2022 that contractually settle in subsequent months.
+Added: See Note 15 -- Derivative Financial Instruments & Hedging for additional details on the gold forward hedges.
NOTE 5 – INVENTORY AND ORE ON LEACH PADS
13 unchanged sentences
Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method.
−Removed: At the end of the fourth quarter of 2021, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value which resulted in a non-cash write down of $ 8.4 million (approximately $ 7.3 million was recognized in Costs Applicable to Sales and $ 1.1 million in Amortization).
+Added: In the year ended December 31, 2022, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value, which resulted in non-cash write downs of $ 52.5 million ($ 46.0 million was recognized in Costs Applicable to Sales and $ 6.6 million in Amortization).
Coeur Mining, Inc.
12 unchanged sentences
9,455 ( 7,115 ) — 2,340
+Added: Avino Silver & Gold Mines Ltd 13,720 ( 4,199 ) — 9,521
+Added: Other 2,233 ( 1,974 ) — 259
Equity securities $ 95,968 $ ( 51,816 ) $ — $ 44,152
3 unchanged sentences
Equity Securities
−Removed: Metalla Royalty & Streaming Ltd.
+Added: Victoria Gold Corp.
$ 128,710 $ ( 4,499 ) $ — $ 124,211
1 unchanged sentence
9,455 ( 1,469 ) — 7,986
−Removed: Other 2 ( 1 ) — 1
Equity securities $ 138,165 $ ( 5,968 ) $ — $ 132,197
1 unchanged sentence
See Note 14 -- Fair Value Measurements for additional details.
−Removed: On January 4, 2021, the Company completed the sale of 83,556 shares of common stock of Metalla Royalty & Streaming Ltd.
−Removed: (“Metalla”) (“Metalla Common Shares”) at an average price (net of commission) of $11.19 per Metalla Common Share for net proceeds of $ 0.9 million, resulting in a realized gain of $ 0.8 million.
−Removed: On May 10, 2021, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Orion Co-VI Ltd.
−Removed: Pursuant to the Exchange Agreement, Orion sold 11,067,714 common shares of Victoria Gold Corp., a British Columbia company (“Victoria”) (representing approximately 17.8 % of Victoria’s outstanding common shares) to the Company.
−Removed: As consideration for the purchase of Victoria shares, Coeur issued 12,785,485 shares of its common stock (approximately 4.9 % of issued and outstanding shares) to Orion.
−Removed: On June 9, 2021, the Company purchased 265,312 shares of common of Integra Resources Corp.
−Removed: (“Integra”) at a price of $ 3.30 per share for a total of $ 0.9 million.
−Removed: On September 16, 2021, the Company purchased an additional 423,213 shares of common stock in Integra at a price of $ 2.55 per share for a total of $ 1.1 million.
−Removed: Following completion of the transactions, Coeur owned approximately 5.9 % of issued and outstanding Integra Common Shares.
+Added: On June 28, 2022, the Company entered into an agreement to sell 5.0 million 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.
+Added: The Company realized a loss of $ 15.6 million on the sale of the Victoria Gold Common Shares, which are recognized in Fair value adjustments, net.
+Added: 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.
+Added: On March 21, 2022, the Company closed the sale of its La Preciosa silver project.
+Added: In connection with the closing of the transaction, the Company received 14,000,000 common shares of Avino Silver & Gold Mines Ltd.
+Added: (“Avino”) (representing approximately 12.0 % of Avino’s outstanding common shares).
+Added: See Note 21 -- Dispositions for additional details on the sale.
NOTE 7 – PROPERTY, PLANT AND EQUIPMENT
24 unchanged sentences
Mining properties, net $ 196,636 $ 495,114 $ 82,756 $ 53,903 $ 158,413 $ — $ 10,613 $ 997,435
−Removed: In June 2021, Silvertip repurchased from Silvertip Resources Investment Cayman Ltd.
−Removed: 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 consideration of $7.0 million.
−Removed: December 31, 2020 Palmarejo Rochester Kensington Wharf Silvertip Sterling La Preciosa Other Total
+Added: As further discussed in Note 21 -- Dispositions, the consideration for the sale of La Preciosa project included two royalties, a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas.
+Added: The fair value of the royalties was $ 11.2 million, valued as of the date of closing of the transaction.
+Added: December 31, 2021 Palmarejo Rochester Kensington Wharf Silvertip Sterling Other Total
Mine development $ 307,698 $ 437,833 $ 382,492 $ 49,045 $ 67,805 $ 3,861 $ — $ 1,248,734
67 unchanged sentences
$ — $ 369,212 $ — $ 368,273
−Removed: 2024 Senior Notes, net (2)
−Removed: — — — 227,590
Revolving Credit Facility (2)
+Added: — 80,000 — 65,000
Finance lease obligations 24,578 42,143 29,821 24,407
1 unchanged sentence
(1) Net of unamortized debt issuance costs of $ 5.8 million and $ 6.7 million at December 31, 2022 and December 31, 2021, respectively.
−Removed: (2) Net of unamortized debt issuance costs of $ 0.0 million and $ 2.4 million at December 31, 2021 and December 31, 2020, respectively.
(2) Unamortized debt issuance costs of $ 3.6 million and $ 2.4 million at December 31, 2022 and December 31, 2021, respectively, included in Other Non-Current Assets .
29 unchanged sentences
On March 1, 2021, the Company entered into a fifth amendment to the Credit Agreement to, among other things, (i) extend the maturity date of the RCF to March 2025 and (ii) permit the Company to obtain one or more increases of the RCF, which is currently in the amount of $ 300.0 million, in an aggregate amount of up to $ 100.0 million in incremental loans and commitments, subject to certain conditions, including obtaining commitments from relevant lenders to provide such increase.
+Added: On May 2, 2022, the Company entered into an amendment (the “May Amendment”) to the Credit Agreement to increase the RCF from $ 300.0 million to $ 390.0 million and to include Goldman Sachs Bank USA as a lender on the RCF.
+Added: On November 9, 2022, the Company entered into an amendment (the “November Amendment”) to the RCF.
+Added: 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.
The RCF is secured by substantially all of the assets of the Company and its U.S.
−Removed: subsidiaries, including the land, mineral rights and infrastructure at the Kensington, Rochester and Wharf mines and the Sterling/Crown project as well as a pledge of the shares and other equity interests of certain of the Company’s subsidiaries.
+Added: subsidiaries, including the land, mineral rights and infrastructure at the Kensington, Rochester and Wharf mines as well as a pledge of the shares and other equity interests of certain of the Company’s subsidiaries.
The Credit Agreement contains representations and warranties and affirmative and negative covenants that are usual and customary, including representations, warranties, and covenants that, among other things, restrict the ability of the Company and its subsidiaries to incur additional debt, incur or permit liens on assets, make investments and acquisitions, consolidate or merge with any other company, engage in asset sales and make dividends and distributions.
−Removed: The Credit Agreement requires the Company to meet certain financial covenants consisting of a consolidated net leverage ratio and a consolidated interest coverage ratio.
+Added: The Credit Agreement requires the Company to meet certain financial covenants, including a senior secured leverage ratio, a consolidated net leverage ratio and a consolidated interest coverage ratio.
Obligations under the RCF may be accelerated upon the occurrence of certain customary events of default.
−Removed: At December 31, 2021, the Company had $ 65.0 million drawn at an interest rate of 2.4 % and $ 35.0 million in outstanding letters of credit und er the RCF.
+Added: At December 31, 2022, the Company had $ 80.0 million drawn at an interest rate of 7.9 %, $ 29.6 million in outstanding letters of credit and $ 280.4 million available under the RCF.
+Added: Future borrowing may be subject to certain financial covenants.
Finance Lease Obligations
From time to time, the Company acquires mining equipment and facilities under finance lease agreements.
−Removed: In the year ended December 31, 2021, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester and Kensington .
−Removed: Coeur secured a finance lease package for nearly $ 60 million during the year, a portion of which has been funded as of December 31, 2021.
−Removed: The package is earmarked for planned equipment purchases for POA 11 in 2021 and 2022, and has an interest rate of 5.22 %.
+Added: In the year ended December 31, 2022, the Company entered into new lease financing arrangements for mining equipment at Rochester and Kensington.
+Added: Coeur secured a finance lease package for nearly $ 60.0 million in 2021, of which $ 55.7 million has been funded as of December 31, 2022.
+Added: This package is earmarked for planned equipment purchases for Rochester’s POA 11 in 2021, 2022 and 2023 and has an interest rate of 5.2 %.
All finance lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.
See Note 9 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
Interest Expense
6 unchanged sentences
Amortization of debt issuance costs 2,052 1,726 1,525
−Removed: Accretion of Silvertip contingent consideration — — 396
Other debt obligations 166 303 344
1 unchanged sentence
Total interest expense, net of capitalized interest $ 23,861 $ 16,451 $ 20,708
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
NOTE 11 – RECLAMATION
10 unchanged sentences
Additions and changes in estimates 13,001 34,927
+Added: Disposition of Sterling/Crown exploration properties ( 1,840 ) —
Settlements ( 4,850 ) ( 4,301 )
Asset retirement obligation - Ending $ 202,431 $ 181,888
−Removed: The Company accrued $ 2.8 million and $ 2.2 million at each of December 31, 2021 and December 31, 2020, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.
NOTE 12 – INCOME AND MINING TAXES
6 unchanged sentences
The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
Year Ended December 31,
5 unchanged sentences
Mexico ( 29,546 ) ( 31,175 ) ( 36,066 )
−Removed: Other — 33 ( 3 )
United States 215 ( 651 ) ( 49 )
3 unchanged sentences
Income tax (expense) benefit $ ( 14,658 ) $ ( 34,958 ) $ ( 37,045 )
−Removed: T he Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
+Added: The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:
Year Ended December 31,
10 unchanged sentences
Mining, foreign withholding, and other taxes ( 11,070 ) ( 12,599 ) ( 17,457 )
+Added: Sale of non-core assets 15,447 — —
Other, net ( 801 ) 1,390 1,923
1 unchanged sentence
At December 31, 2022 and 2021, the significant components of the Company’s deferred tax assets and liabilities are below:
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
Year Ended December 31,
1 unchanged sentence
Deferred tax liabilities:
−Removed: Inventory — 5
Royalty and other long-term debt — 1,495
−Removed: Foreign subsidiaries - unremitted earnings — 99
−Removed: $ 1,495 $ 1,198
Deferred tax assets:
8 unchanged sentences
Tax credit carryforwards 16,167 26,594
+Added: Other long-term assets 3,914 —
430,530 398,639
7 unchanged sentences
Based upon this analysis, the Company has recorded valuation allowances as follows:
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
Year Ended December 31,
10 unchanged sentences
Regular net operating losses $ 535,016 $ 442,941 $ 1,046 $ 71,117 $ 977 $ 1,051,097
−Removed: Expiration years 2022-2038 2028-2041 2022-2031 Indefinite 2022-2026
+Added: Expiration years 2024-2037, Indefinite 2028-2042 2029-2033 Indefinite 2025-2027
Capital losses — — — — — —
Foreign tax credits 10,864 — — — — 10,864
−Removed: The majority of the U.S.
−Removed: capital losses will expire in 2022.
+Added: As of December 31, 2022, for U.S.
+Added: income tax purposes, the Company has federal and state net operating loss carryforwards of $ 535.0 million and $ 425.2 million, respectively.
+Added: net operating loss carryforwards of $ 320.1 million arising before December 31, 2017 have a 20 -year expiration period, the earliest of which could expire in 2024.
+Added: net operating loss carryforwards of $ 214.9 million arising in 2018 and future periods have an indefinite carryforward period.
Foreign tax credits expire if unused beginning in 2023.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
The utilization of U.S.
16 unchanged sentences
The Company intends to indefinitely reinvest earnings from Mexican operations.
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
A reconciliation of the beginning and ending amount related to unrecognized tax benefits is below (in thousands):
8 unchanged sentences
Unrecognized tax benefits at December 31, 2022 $ 4
−Removed: At December 31, 2021, 2020, and 2019, $ 0.3 million, $ 0.7 million, and $ 2.7 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company’s effective tax rate.
+Added: At December 31, 2022, 2021, and 2020, $ 4 thousand, $ 0.3 million, and $ 0.7 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company’s effective tax rate.
The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates.
5 unchanged sentences
The statute of limitations remains open from 2019 for the US federal jurisdiction and from 2016 for certain other foreign jurisdictions.
−Removed: As a result of statutes of limitations that will begin to expire within the next 12 months in various jurisdictions and possible settlement of audit-related issues with taxing authorities in various jurisdictions with respect to which none of these issues are individually significant, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease between $ 0.5 million and $ 1.0 million in the next 12 months.
−Removed: The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of $ 0.4 million, $ 1.1 million, and $ 2.3 million at December 31, 2021, 2020, and 2019, respectively.
+Added: As a result of statutes of limitations that will begin to expire within the next 12 months in various jurisdictions and possible settlement of audit-related issues with taxing authorities in various jurisdictions with respect to which none of these issues are individually significant, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease less than $ 0.1 million in the next 12 months.
+Added: The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of nil , $ 0.4 million, and $ 1.1 million at December 31, 2022, 2021, and 2020, respectively.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
NOTE 13 – STOCK-BASED COMPENSATION
4 unchanged sentences
Restricted Stock
−Removed: Restricted stock granted under the Company’s incentive plans are accounted for based on the market value of the underlying shares on the date of grant and generally vest in equal installments annually over three years .
+Added: Restricted stock granted under the Company’s incentive plans is accounted for based on the market value of the underlying shares on the date of grant and generally vest in equal installments annually over three years .
Restricted stock awards are accounted for as equity awards.
1 unchanged sentence
The following table summarizes restricted stock activity for the years ended December 31, 2022, 2021, and 2020:
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
Restricted Stock
21 unchanged sentences
The existence of a market condition required recognition of compensation cost for the performance share awards over the requisite period regardless of whether the relative stockholder return metric was met.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
The following table summarizes performance shares activity for the years ended December 31, 2022, 2021, and 2020:
2 unchanged sentences
Outstanding at December 31, 2019 1,214,145 $ 6.93
+Added: 1,343,953 3.95
Vested ( 54,132 ) 11.47
12 unchanged sentences
Outstanding at December 31, 2022 2,574,537 $ 5.26
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
(1) Includes 6,226 additional shares granted and 143,808 shares cancelled in connection with the vesting of the 2017 award in 2020 due to above-target and below target performance, respectively, in accordance with the terms of the award.
(2) Includes 1,421 additional shares granted and 141,894 shares cancelled in connection with the vesting of the 2018 award in 2021 due to above-target and below target performance, respectively, in accordance with the terms of the award.
−Removed: (3) Includes 1,421 additional shares granted and 141,894 shares cancelled in connection with the vesting of the 2018 award in 2021 due to above-target and below target performance, respectively, in accordance with the terms of the award.
+Added: (3) Includes 175,828 additional shares granted in connection with the vesting of the 2019 award in 2022 due to above-target in accordance with the terms of the award.
At December 31, 2022, there was $ 3.5 million of unrecognized compensation cost related to performance shares to be recognized over a weighted average period of 1.7 years.
5 unchanged sentences
SARs, when vested, provide the participant the right to receive cash equal to the excess of the market price of the shares over the exercise price when exercised.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
The following table summarizes stock option and SAR activity for the years ended December 31, 2022, 2021, and 2020:
11 unchanged sentences
Outstanding at December 31, 2021 131,253 $ 16.91 — —
−Removed: Exercised ( 57,721 ) 7.74 — —
Canceled/forfeited ( 5,598 ) 11.88 — —
12 unchanged sentences
Exercisable 93,988 $ 14.41 2.0 $ —
−Removed: The total intrinsic value of options exercised for the year ended December 31, 2021 was $ 0.1 million.
−Removed: Cash received from options exercised for the year ended December 31, 2021 was $ 0.4 million for which there was no related tax benefit.
+Added: The total intrinsic value of options exercised for the year ended December 31, 2022 was nil .
+Added: Cash received from options exercised for the year ended December 31, 2022 was nil and there was no related tax benefit.
The grant date fair value for stock options vested during the years ended December 31, 2022, 2021, and 2020 was nil .
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
NOTE 14 – FAIR VALUE MEASUREMENTS
1 unchanged sentence
In thousands 2022 2021 2020
−Removed: Unrealized gain (loss) on equity securities $ ( 11,244 ) $ ( 11,539 ) $ 15,348
−Removed: Realized gain (loss) on equity securities 768 19,140 860
−Removed: Interest rate swap, net — — ( 178 )
+Added: Change in the value of equity securities (1)
+Added: $ ( 63,529 ) $ ( 10,476 ) $ 7,601
Exchange agreement embedded derivative — 9,933 —
+Added: Termination of gold zero cost collars ( 3,139 ) — —
Fair value adjustments, net $ ( 66,668 ) $ ( 543 ) $ 7,601
+Added: (1) Includes unrealized losses on held equity securities of $ 47.9 million, $ 10.4 million, and $ 16.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3).
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy.
2 unchanged sentences
In thousands Total Level 1 Level 2 Level 3
−Removed: Equity securities $ 132,197 $ 132,197 $ — $ —
+Added: Equity securities including warrants $ 44,152 $ 43,893 $ 259 $ —
Provisional metal sales contracts 299 — 299 —
−Removed: $ 132,283 $ 132,197 $ 86 $ —
−Removed: Gold zero cost collars
+Added: Gold forwards 12,343 — 12,343 —
$ 56,794 $ 43,893 $ 12,901 $ —
Provisional metal sales contracts $ 10 $ — $ 10 $ —
−Removed: $ 1,374 $ — $ 1,374 $ —
Fair Value at December 31, 2021
In thousands Total Level 1 Level 2 Level 3
−Removed: Equity and debt securities $ 12,943 $ 12,943 $ — $ —
−Removed: Foreign currency forward exchange contracts 13,747 — 13,747 —
+Added: Equity securities $ 132,197 $ 132,197 $ — $ —
Provisional metal sales contracts 86 — 86 —
6 unchanged sentences
Such instruments are classified within Level 1 of the fair value hierarchy.
−Removed: The Company’s foreign currency forward exchange contracts are valued using pricing models with inputs derived from observable market data, including forward market prices and other unobservable inputs.
−Removed: The Company’s gold zero cost collars are valued using pricing models with inputs derived from observable market data, including forward market prices, yield curves, credit spreads.
−Removed: The Company’s provisional metal sales contracts include concentrate and certain doré sales contracts that are valued using pricing models with inputs derived from observable market data, including forward market prices.
+Added: The common share purchase warrants the Company received as consideration in the La Preciosa project sale are valued using a pricing model with inputs derived from observable market data, including quoted market prices and quoted interest curve rates.
The model inputs can generally be verified and do not involve significant management judgment.
Such instruments are classified within Level 2 of the fair value hierarchy.
+Added: The Company’s provisional metal sales contracts include concentrate and certain doré sales contracts that are valued using pricing models with inputs derived from observable market data, including forward market prices.
+Added: The Company’s gold forward contracts are valued using pricing models with inputs derived from observable market data, including forward market prices, yield curves, credit spreads.
+Added: No assets or liabilities were transferred between fair value levels in the year ended December 31, 2022.
+Added: In May 2021, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Orion Co-VI Ltd.
+Added: Pursuant to the Exchange Agreement, Orion sold 11,067,714 common shares of Victoria Gold to the Company.
+Added: As consideration for the purchase of Victoria Gold shares, Coeur issued 12,785,485 shares of its common stock to Orion.
+Added: The Exchange Agreement provided that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.
+Added: The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.
+Added: The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired in October 2021 and the outstanding liability was written off.
Coeur Mining, Inc.
1 unchanged sentence
Notes to Consolidated Financial Statements
−Removed: As described in Note 7 - Investments , the Exchange Agreement provided that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.
−Removed: The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.
−Removed: The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired on October 31, 2021.
−Removed: The accounting treatment of derivative financial instruments required that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date.
−Removed: The fair value of the outstanding embedded derivative was determined using a pricing model with inputs derived from observable market data, including stock prices, stock price volatility and risk-free rates and other unobservable inputs such as Monte Carlo simulations and probabilities of Coeur being contractually obligated to make a payment.
−Removed: In October 2017, the Company acquired the Silvertip mine from shareholders of JDS Silver Holdings Ltd (the “Silvertip Acquisition”).
−Removed: The consideration for the Silvertip Acquisition included two $ 25.0 million contingent payments, which were payable in cash and common stock upon reaching a future permitting milestone and resource declaration milestone, respectively.
−Removed: The fair value of the Silvertip contingent consideration was estimated based on an estimated discount rate of 2.5 % for the contingent permitting payment and 2.9 % for the contingent resource declaration payment and was classified within Level 3 of the fair value hierarchy.
−Removed: During 2019, the Company paid the $ 25.0 million due for the permitting milestone in the form of cash and common stock, and in the first quarter of 2020, the Company paid the remaining $ 25.0 million due for the resource declaration milestone in the form of cash and common stock.
−Removed: No assets or liabilities were transferred between fair value levels in the year ended December 31, 2021.
−Removed: The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the year ended December 31, 2021 and 2020.
+Added: The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the year ended December 31, 2021.
December 31, 2021
1 unchanged sentence
Exchange agreement embedded derivative $ — $ 9,933 $ ( 9,933 ) $ — $ —
−Removed: December 31, 2020
−Removed: In thousands Balance at the beginning of the period Initial valuation Revaluation Settlements Balance at the
−Removed: Silvertip contingent consideration $ 25,000 $ — $ — $ ( 25,000 ) $ —
The fair value of financial assets and liabilities carried at book value in the financial statements at December 31, 2022 and December 31, 2021 is presented in the following table:
1 unchanged sentence
In thousands Book Value Fair Value Level 1 Level 2 Level 3
+Added: Promissory note $ 4,926 $ 4,579 $ — $ 4,579 $ —
+Added: Deferred cash consideration $ 7,677 $ 7,317 $ — $ 7,317 $ —
2029 Senior Notes (1)
12 unchanged sentences
(2) Unamortized debt issuance costs of $ 2.4 million included in Other Non-Current Assets .
+Added: The fair value of the 2029 Senior Notes was estimated using quoted market prices.
+Added: The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.
+Added: As further discussed in Note 21 -- Dispositions, the consideration for the sale of La Preciosa project was a promissory note payable to the Company that matures in March 2023 and deferred cash consideration payable on the first anniversary of initial production from any portion of the La Preciosa project.
+Added: These assets were valued using the pricing model with inputs derived from observable market data, including synthetic credit rating and quoted discount rate.
+Added: The model inputs can generally be verified and do not involve significant management judgment.
+Added: Such instruments are classified within Level 2 of the fair value hierarchy.
+Added: In addition, the Company has assets initially measured at fair value at inception and remeasured at fair value on a nonrecurring basis such as the royalties and contingent consideration received in connection with dispositions.
+Added: The consideration for the sale of La Preciosa project also included two royalties:
+Added: a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, and contingent consideration of $ 0.25 per silver equivalent ounce (adjusted for inflation) on any new mineral reserves discovered and declared outside of the current resources area at the La Preciosa project, up to a maximum payment of $ 50.0 million.
+Added: The fair value of the royalties and the contingent consideration assets were $ 11.2 million and $ 1.2 million, respectively, valued as of the date of closing of the transaction and are measured at fair value on a non-recurring basis.
+Added: The fair value of the royalties and the contingent consideration were valued using Monte Carlo simulation models.
+Added: The model inputs include significant unobservable inputs and involve significant management judgment.
+Added: The significant unobservable inputs included assumptions related to metal prices which assumed silver prices ranging from $ 22 to $ 25 per ounce and gold prices ranging from $ 1,700 to $ 1,930 per ounce as well as volatility assumptions for silver and gold prices ( 33.5 % and 19.0 %, respectively), and an assumed weighted average cost of capital of 15.5 %.
+Added: Such instruments are classified as Level 3 of the fair value hierarchy.
Coeur Mining, Inc.
1 unchanged sentence
Notes to Consolidated Financial Statements
−Removed: The fair value of the 2029 Senior Notes was estimated using quoted market prices.
−Removed: The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.
+Added: As further discussed in Note 21 -- Dispositions, the consideration for the sale of Sterling/Crown exploration properties included the right to an additional payment of $ 50.0 million should the 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.
+Added: The fair value of the contingent consideration asset of $ 13.0 million valued as of the date of closing of the transaction was valued using a discounted cash flow model and is measured at fair value on a non-recurring basis.
+Added: The model inputs include significant unobservable inputs, involve significant management judgment and is classified as Level 3 of the fair value hierarchy.
+Added: The significant unobservable inputs included managements assumption related to the probability (75%) and timing (ranging from 5 years to 30 years) of achieving reported gold resources equal to or greater than 3,500,000 gold ounces and a discount rate of 8.1 %.
NOTE 15 – DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES
The Company is exposed to various market risks, including the effect of changes in metal prices, foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business.
+Added: Derivative gains and losses are included in operating cash flows in the period in which they contractually settle.
The Company does not hold or issue derivatives for trading or speculative purposes.
3 unchanged sentences
Derivatives Not Designated as Hedging Instruments
−Removed: Exchange Agreement Embedded Derivative
−Removed: The Exchange Agreement provided that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.
−Removed: The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.
−Removed: The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired on October 31, 2021.
−Removed: The accounting treatment of derivative financial instruments required that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date.
−Removed: The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired on October 31, 2021.
Provisional Metal Sales
3 unchanged sentences
The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.
+Added: Exchange Agreement Embedded Derivative
+Added: The Exchange Agreement provided that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.
+Added: The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.
+Added: The accounting treatment of derivative financial instruments required that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date.
+Added: The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired on October 31, 2021 and the outstanding liability was written off.
+Added: Zero Cost Collars
+Added: To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements.
+Added: The contracts were net cash settled monthly and, if the price of gold at the time of expiration is between the put and call prices, would expire at no cost to the Company.
+Added: If the price of gold at the time of expiration was lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively.
+Added: The Company elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.
+Added: In the first quarter of 2022, the Company voluntarily de-designated hedge accounting for the zero cost collars and subsequently terminated the arrangements.
+Added: The cost to terminate the zero cost collars was $ 7.7 million, of which $ 3.1 million was recognized in earnings and the remaining $ 4.6 million, which represents the fair value of the zero cost collars on the date of de-designation, was retained in accumulated other comprehensive income (loss) (“AOCI”) and was recognized in earnings in 2022 as the forecasted transactions occurred.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
At December 31, 2022, the Company had the following derivative instruments that settle as follows:
10 unchanged sentences
Provisional metal sales contracts $ 86 $ 162
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
−Removed: The following represent mark-to-market gains (losses) on derivative instruments in the year ended December 31, 2021, 2020, and 2019, respectively (in thousands):
+Added: The following represent mark-to-market gains (losses) on derivative instruments in the years ended December 31, 2022, 2021, and 2020 respectively (in thousands):
Year Ended December 31,
2 unchanged sentences
Fair value adjustments, net Exchange agreement embedded derivative — 9,933 —
−Removed: Fair value adjustments, net Interest rate swaps — — ( 178 )
+Added: Fair value adjustments, net Terminated zero cost collars ( 3,139 ) — —
$ ( 2,774 ) $ 9,443 $ 959
Derivatives Designated as Cash Flow Hedging Strategies
−Removed: To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements.
−Removed: The contracts are net cash settled monthly and, if the price of gold at the time of expiration is between the put and call prices, would expire at no cost to the Company.
−Removed: If the price of gold at the time of expiration is lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively.
−Removed: The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.
−Removed: To protect the Company’s exposure to fluctuations in foreign currency exchange rates for subsidiaries whose functional currency is U.S dollar and are exposed to forecasted transaction denominated in the Mexican Peso and the Canadian Dollar, in March 2020, the Company entered into foreign currency forward exchange contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
+Added: To protect the Company’s exposure to fluctuations in metal prices the Company enters into forward contracts.
+Added: The contracts are net settled monthly and if the actual price of gold at the time of expiration is lower than the fixed price or higher than the fixed prices, it would result in a realized gain or loss, respectively.
The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.
−Removed: As of December 31, 2021, there were no outstanding foreign currency forward exchange contracts.
At December 31, 2022, the Company had the following derivative cash flow hedge instruments that settle as follows:
In thousands except average prices and notional ounces 2023 2024 and Thereafter
−Removed: Gold put options
−Removed: Average gold strike price per ounce $ 1,630 $ —
−Removed: Notional ounces 132,000 —
−Removed: Gold call options
−Removed: Average gold strike price per ounce $ 2,038 $ —
+Added: Gold forwards
+Added: Average gold fixed price per ounce $ 1,957 $ —
Notional ounces 130,500 —
−Removed: The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) until the hedged item is recognized in earnings.
+Added: The effective portions of cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings.
Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of Revenue in the same period as the related sale is recognized.
−Removed: Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of Costs Applicable to Sales or Pre-development, Reclamation and Other in the same period the related expenses are incurred.
At inception, the Company performed an assessment of the forecasted transactions and the hedging instruments and determined that the hedging relationships are considered perfectly effective.
1 unchanged sentence
There have been no such changes in critical terms or adverse developments.
−Removed: As of December 31, 2021, the Company had $ 1.2 million of net after-tax loss in AOCI related to losses from cash flow hedge transactions, of which $ 1.2 million of net after-tax losses is expected to be recognized in its Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.
+Added: As of December 31, 2022, the Company had $ 12.3 million of net after-tax gain in AOCI related to gains from cash flow hedge transactions, of which $ 12.3 million of net after-tax gains is expected to be recognized in its Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.
Actual amounts ultimately reclassified to net income are dependent on the price of gold for metal contracts.
4 unchanged sentences
December 31, 2022
−Removed: In thousands Prepaid expenses and other Accrued liabilities and other
−Removed: Gold zero cost collars $ — $ 1,212
+Added: In thousands Prepaid expenses and other Other assets Accrued liabilities and other
+Added: Gold forwards $ 12,343 $ — $ —
December 31, 2021
−Removed: In thousands Prepaid expenses and other Accrued liabilities and other
+Added: In thousands Prepaid expenses and other Other assets Accrued liabilities and other
Gold zero cost collars $ — $ — $ 1,212
−Removed: Foreign currency forward exchange contracts 13,747 —
−Removed: $ 13,747 $ 24,883
−Removed: The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2021, 2020, and 2019, respectively (in thousands).
+Added: The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021, and 2020, respectively (in thousands).
Year Ended December 31,
1 unchanged sentence
Amount of Gain (Loss) Recognized in AOCI
+Added: Gold forwards $ 42,043 $ — $ —
Gold zero cost collars ( 4,598 ) 22,733 $ ( 32,345 )
2 unchanged sentences
Amount of (Gain) Loss Reclassified From AOCI to Earnings
+Added: Gold forwards $ ( 28,488 ) $ — $ —
Gold zero cost collars 4,598 938 $ 7,598
26 unchanged sentences
Gain (loss) on sale of Manquiri NSR consideration — — 365
−Removed: RMC receivable write-down — — ( 1,040 )
−Removed: Gain (loss) on Silvertip contingent consideration — 955 —
−Removed: Interest income on notes receivable — — 198
+Added: RMC bankruptcy distribution 1,651 — —
+Added: Gain on Silvertip contingent consideration — — 955
Other 1,741 1,725 1,652
3 unchanged sentences
Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.
−Removed: For the years ended December 31, 2021, 2020 and 2019, there were 634,419 , 389,629 and 1,137,726 common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the shares would be antidilutive.
+Added: For the years ended December 31, 2022, 2021 and 2020, there were 952,664 , 634,419 and 389,629 common stock equivalents, respectively, related to equity-based awards that were not included in the diluted earnings per share calculation as the shares would be antidilutive.
Coeur Mining, Inc.
4 unchanged sentences
Net income (loss) available to common stockholders $ ( 78,107 ) $ ( 31,322 ) $ 25,627
−Removed: Income (loss) from continuing operations $ ( 31,322 ) $ 25,627 $ ( 346,896 )
−Removed: Income (loss) from discontinued operations — — 5,693
−Removed: $ ( 31,322 ) $ 25,627 $ ( 341,203 )
Weighted average shares:
3 unchanged sentences
Income (loss) per share:
−Removed: Income (loss) from continuing operations $ ( 0.13 ) $ 0.11 $ ( 1.59 )
−Removed: Income (loss) from discontinued operations — — 0.03
Basic $ ( 0.28 ) $ ( 0.13 ) $ 0.11
−Removed: Diluted income (loss) per share:
−Removed: Income (loss) from continuing operations $ ( 0.13 ) $ 0.11 $ ( 1.59 )
−Removed: Income (loss) from discontinued operations — — 0.03
Diluted $ ( 0.28 ) $ ( 0.13 ) $ 0.11
−Removed: On April 23, 2020, the Company entered into an ATM Equity Offering Sales Agreement (the “Sales Agreement”) with BofA Securities, Inc.
−Removed: and RBC Capital Markets, LLC as sales agents (the “Sales Agents”) and filed a prospectus supplement for the sale of its common stock, par value $0.01 per share, by way of an “at the market” offering having an aggregate offering price of up to $ 100,000,000 (the “ATM Program”).
−Removed: Sales under the ATM Program, if any, will be made pursuant to the terms of the Sales Agreement.
−Removed: At December 31, 2021, the Company had not sold any shares of its common stock under the ATM Program.
+Added: On March 18, 2022, the Company completed a $ 100.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “March Equity Offering”).
+Added: The March Equity Offering was conducted pursuant to an ATM Equity Offering Sales Agreement, entered into on April 23, 2020 between the Company and BofA Securities, Inc.
+Added: and RBC Capital Markets, LLC as sales agents.
+Added: The Company sold a total of 22,053,275 shares of its common stock in the March Equity Offering at an average price of $ 4.53 per share, raising net proceeds (after sales commissions) of $ 98.0 million.
+Added: Proceeds from the March Equity Offering were used to repay outstanding amounts under the RCF.
+Added: On December 11, 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”).
+Added: The December Equity Offering was conducted pursuant to an ATM Equity Offering Sales Agreement, entered into on November 9, 2022 between the Company and BMO Capital Markets Corp.
+Added: and RBC Capital Markets, LLC as sales agents.
+Added: The Company sold a total of 14,766,835 shares of its 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.
+Added: Proceeds from the December Equity Offering were used to repay outstanding amounts under the RCF.
NOTE 18 - SUPPLEMENTAL GUARANTOR INFORMATION
The following summarized financial information is presented to satisfy disclosure requirements of Rule 13-01 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc.
−Removed: and its subsidiaries, Coeur Capital, Inc., Coeur Sterling, Inc., Sterling Intermediate Holdco, Inc., and Coeur Sterling Holdings LLC (collectively, the “Subsidiary Guarantors”) of the 2029 Senior Notes.
+Added: and its subsidiaries, Coeur Capital, Inc., Sterling Intermediate Holdco, Inc., and Coeur Sterling Holdings LLC (collectively, the “Subsidiary Guarantors”) of the 2029 Senior Notes.
The following schedules present summarized financial information of (a) Coeur, the parent company and (b) the Subsidiary Guarantors (collectively the “Obligor Group”).
7 unchanged sentences
SUMMARIZED BALANCE SHEET
−Removed: DECEMBER 31, 2021
−Removed: In thousands Coeur Mining, Inc.
−Removed: Guarantor Subsidiaries
−Removed: CURRENT ASSETS
−Removed: Cash and cash equivalents $ 2,499 $ 16,126
−Removed: Receivables ( 14 ) 5,607
−Removed: Ore on leach pads — 81,128
−Removed: Inventory — 24,954
−Removed: Prepaid expenses and other 8,660 813
−Removed: 11,145 128,628
−Removed: NON-CURRENT ASSETS
−Removed: Property, plant and equipment, net 1,476 188,721
−Removed: Mining properties, net — 514,397
−Removed: Ore on leach pads — 73,495
−Removed: Restricted assets 1,496 206
−Removed: Equity and debt securities 132,197 —
−Removed: Net investment in subsidiaries 794,254 56,623
−Removed: Other 47,317 53,511
−Removed: TOTAL ASSETS $ 987,885 $ 1,015,581
−Removed: LIABILITIES AND STOCKHOLDERS’ EQUITY
−Removed: CURRENT LIABILITIES
−Removed: Accounts payable $ 1,624 $ 59,463
−Removed: Other accrued liabilities 16,729 45,676
−Removed: Debt — 23,608
−Removed: Reclamation — 1,561
−Removed: 18,353 130,308
−Removed: NON-CURRENT LIABILITIES
−Removed: Debt 463,318 53,166
−Removed: Reclamation — 125,695
−Removed: Deferred tax liabilities 751 7,422
−Removed: Other long-term liabilities 3,266 20,826
−Removed: Intercompany payable (receivable) ( 298,065 ) 286,655
−Removed: 169,270 493,764
−Removed: STOCKHOLDERS’ EQUITY
−Removed: Common stock 2,569 19,356
−Removed: Additional paid-in capital 3,738,347 340,701
−Removed: Accumulated deficit ( 2,939,442 ) 31,452
−Removed: Accumulated other comprehensive income (loss) ( 1,212 ) —
−Removed: 800,262 391,509
−Removed: TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 987,885 $ 1,015,581
Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
−Removed: SUMMARIZED BALANCE SHEET
−Removed: DECEMBER 31, 2020
−Removed: In thousands Coeur Mining, Inc.
Guarantor Subsidiaries
+Added: In thousands December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
Current assets $ 73,692 $ 11,143 $ 137,432 $ 128,630
−Removed: Cash and cash equivalents $ 12,727 $ 28,515
−Removed: Receivables 381 3,631
−Removed: Ore on leach pads — 74,866
−Removed: Inventory — 27,223
−Removed: Prepaid expenses and other 20,872 1,375
−Removed: 33,980 135,610
Non-current assets (1)
−Removed: Property, plant and equipment, net 1,946 148,640
−Removed: Mining properties, net — 353,818
−Removed: Ore on leach pads — 81,963
−Removed: Restricted assets 1,482 206
−Removed: Equity and debt securities 12,943 —
−Removed: Net investment in subsidiaries 514,705 72,785
−Removed: Other 198,587 51,528
−Removed: TOTAL ASSETS $ 763,643 $ 844,550
−Removed: LIABILITIES AND STOCKHOLDERS’ EQUITY
−Removed: CURRENT LIABILITIES
−Removed: Accounts payable $ 1,978 $ 52,177
−Removed: Other accrued liabilities 36,183 46,023
−Removed: Debt — 14,506
−Removed: Reclamation — 1,584
$ 445,778 $ 473,145 $ 991,213 $ 830,330
+Added: Non-guarantor intercompany assets $ 4,391 $ 19,803 $ — $ —
+Added: Current liabilities $ 19,842 $ 18,353 $ 136,788 $ 130,307
Non-current liabilities $ 42,028 $ 139,223 $ 603,800 $ 461,904
−Removed: Debt 227,592 33,321
−Removed: Reclamation — 93,349
−Removed: Deferred tax liabilities 100 8,457
−Removed: Other long-term liabilities 3,629 29,916
−Removed: Intercompany payable (receivable) ( 199,318 ) 176,914
−Removed: 32,003 341,957
−Removed: STOCKHOLDERS’ EQUITY
−Removed: Common stock 2,438 20,401
−Removed: Additional paid-in capital 3,610,297 340,700
−Removed: Accumulated deficit ( 2,908,120 ) 27,202
−Removed: Accumulated other comprehensive income (loss) ( 11,136 ) —
−Removed: 693,479 388,303
−Removed: TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 763,643 $ 844,550
−Removed: Coeur Mining, Inc.
−Removed: and Subsidiaries
−Removed: Notes to Consolidated Financial Statements
+Added: Non-guarantor intercompany liabilities $ 58,257 $ 30,045 $ 150,550 $ 1,650
+Added: (1) Coeur Mining, Inc.’s non-current assets includes its investment in Guarantor Subsidiaries.
SUMMARIZED STATEMENTS OF INCOME
4 unchanged sentences
Gross profit (loss) $ ( 833 ) $ ( 12,199 )
−Removed: Income (loss) from continuing operations $ ( 31,324 ) $ 3,204
Net income (loss) $ ( 78,107 ) $ 8,920
1 unchanged sentence
Mexico Litigation Matters
−Removed: As of December 31, 2021, $ 26.0 million is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.
+Added: As of December 31, 2022, $ 26.0 million in principal is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.
de C.V.’s (“Coeur Mexicana’s”) prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016.
3 unchanged sentences
The Company has since been engaged in ongoing efforts to recover the VAT from the Mexican government (including through litigation and potential arbitration as well as refiling VAT refund requests).
−Removed: Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation has continued at the administrative, appeals court and supreme court levels, most of which has been determined unfavorably to Coeur (including during 2021) based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous.
−Removed: While the Company believes that it remains legally entitled to be refunded the full amount of the VAT receivable and intends to rigorously continue its VAT recovery efforts, based on the continued failure to recover the VAT receivable and recent unfavorable Mexican court decisions, the Company determined to write down the carrying value of the VAT receivable at September 30, 2021.
−Removed: Coeur Mexicana may still elect to initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA.
+Added: Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation has continued at the administrative, appeals court and supreme court levels, most of which has been determined unfavorably to Coeur based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous.
+Added: While the Company believes that it remains legally entitled to be refunded the full amount of the VAT receivable and intends to rigorously continue its VAT recovery efforts, based on the continued failure to recover the VAT receivable and unfavorable Mexican court decisions, the Company determined to write down the carrying value of the VAT receivable at September 30, 2021.
+Added: Coeur Mexicana has elected initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA, to resolve the matter.
Outcomes in NAFTA arbitration and the process for recovering funds even if there is a successful outcome in NAFTA arbitration can be lengthy and unpredictable.
3 unchanged sentences
In 2016, Coeur Mexicana received a $ 22.0 million deposit toward future deliveries under the gold stream agreement.
−Removed: In accordance with generally accepted accounting principles, although Coeur Mexicana has satisfied its contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units-of-production basis as ounces are sold to Franco-Nevada.
−Removed: At December 31, 2021 the remaining unamortized balance was $ 8.2 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.
−Removed: Kensington Prepayment
−Removed: In June 2019, Coeur entered into a transaction with an existing metal sales counterparty whereby it amended its existing sales and purchase contract for gold concentrate from its Kensington mine (the “Amended Sales Contract”).
−Removed: From time to time, the Amended Sales Contract has been further amended to allow for additional prepayments, the latest occurring in July 2021, with an effective date as of June 28, 2021, to include options for Coeur to receive up to two additional prepayments of up to $15.0 million.
−Removed: In December 2020, Coeur exercised an option to receive the $ 15.0 million December 2020 Prepayment.
−Removed: In the first half of 2021, the Kensington mine delivered $ 15.0 million in satisfaction of the December 2020 Prepayment.
−Removed: In June 2021, Coeur exercised an option to receive the $ 15.0 million June 2021 Prepayment, and delivered $ 15.0 million against that $ 15.0 million in the second half of 2021.
−Removed: In December 2021, the Company exercised the option to receive the $15.0 million December 2021 Prepayment.
−Removed: The remaining deliveries of $ 15.0 million under the December 2021 Prepayment are recognized as a deferred revenue liability and are presented in Accrued liabilities and other on the Consolidated Balance Sheet.
+Added: In accordance with generally accepted accounting principles, although Coeur Mexicana has satisfied its
Coeur Mining, Inc.
1 unchanged sentence
Notes to Consolidated Financial Statements
−Removed: relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by December 31, 2022.
+Added: contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units-of-production basis as ounces are sold to Franco-Nevada.
+Added: At December 31, 2022, the remaining unamortized balance was $ 7.4 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.
+Added: Kensington Prepayment
+Added: In June 2019, Coeur amended its existing sales and purchase contract with a metal sales counterparty for gold concentrate from its Kensington mine (the “Amended Sales Contract”).
+Added: From time to time thereafter, the Amended Sales Contract has been further amended to allow for additional prepayments, including in June 2021, to provide options for Coeur to receive up to two additional prepayments of up to $ 15.0 million each.
+Added: The Company exercised these options and received $ 15.0 million both in June 2021 (the "June 2021 Prepayment") and in December 2021 (the "December 2021 Prepayment").
+Added: The June 2021 Prepayment was repaid in full before the December 2021 Prepayment was received.
+Added: In March 2022, the Amended Sales Contract was further amended to allow for an additional $ 10.0 million prepayment which was made in March 2022 (the “March 2022 Prepayment”).
+Added: The Amended Sales Contract was further amended in June 2022 to consolidate the December 2021 Prepayment and the March 2022 Prepayment into a single consolidated prepayment (the “June 2022 Consolidated Prepayment”), to extend the repayment period for the June 2022 Consolidated Prepayment, and to provide for future prepayments of up to $ 25.0 million on a semi-annual basis through the end of 2024, provided all prior outstanding prepayment amounts are paid before such future prepayments are made.
+Added: In December 2022, the Company exercised an option to receive a $ 25.0 million prepayment (the “December 2022 Prepayment”) concurrent with the repayment of the June 2022 Consolidated Prepayment in full.
+Added: The remaining deliveries of the December 2022 Prepayment are recognized as a deferred revenue liability and are presented in Accrued liabilities and other on the Consolidated Balance Sheet.
+Added: Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by December 2024.
POA 11 Expansion Project
−Removed: 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.
−Removed: 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.
−Removed: SMPEI work under the initial contract is beginning to advance.
−Removed: 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.
−Removed: 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.
−Removed: Coeur has commenced detailed engineering for pre-screens and intends to align construction of the pre-screens with the completion of the crusher corridor.
−Removed: 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.
−Removed: 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.
−Removed: 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 porject contingency to reflect ongoing COVID and schedule risk.
−Removed: 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).
−Removed: 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.
−Removed: 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.
−Removed: Securities and Exchange Commission on February 16, 2022.
+Added: 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.
+Added: Total estimated project capital remains between $ 650 - $ 670 million.
+Added: At the end of 2022, the project was 74% complete.
+Added: 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.
+Added: 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.
+Added: Coeur made solid progress on the final major high-voltage electrical distribution and substation construction, while also advancing pre-commissioning planning and system development.
+Added: Mechanical completion remains on target for mid-2023 with ramp-up and commissioning expected to take place during the second half of the year.
Other Commitments and Contingencies
5 unchanged sentences
The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.
+Added: NOTE 20 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION
+Added: Accrued liabilities and other consist of the following:
Coeur Mining, Inc.
1 unchanged sentence
Notes to Consolidated Financial Statements
−Removed: NOTE 21 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Accrued liabilities and other consist of the following:
In thousands December 31, 2022 December 31, 2021
16 unchanged sentences
Year ended December 31,
−Removed: Non-cash financing and investing activities:
2022 2021 2020
+Added: Non-cash lease obligations arising from obtaining operating lease assets $ 4,120 $ 1,197 $ 3,531
+Added: Non-cash financing and investing activities:
Finance lease obligations $ 43,810 $ 37,860 $ 5,283
Capital expenditures, not yet paid $ 33,688 $ 40,904 $ 30,682
−Removed: Non-cash extinguishment of senior notes $ — $ — $ 20,009
Non-cash Silvertip contingent consideration $ — $ — $ 5,295
3 unchanged sentences
Income and mining taxes paid $ 41,600 $ 57,200 $ 35,600
−Removed: NOTE 22 – ASSET AND LIABILITIES HELD FOR SALE
−Removed: On October 27, 2021, the Company entered into a definitive agreement (the “Agreement”) to sell its La Preciosa project located in the State of Durango, Mexico to Avino Silver & Gold Mines Ltd.
−Removed: The transaction is subject to customary closing conditions, including required regulatory approvals and expected to close in the first quarter of 2022.
−Removed: Under the Agreement, Avino will acquire the La Preciosa project from Coeur for the following consideration:
−Removed: • $ 15.0 million upon closing of the transaction,
−Removed: • $ 5.0 million promissory note that matures prior to the first anniversary of the transaction closing,
−Removed: • Equity consideration of 14.0 million units, payable on closing, each consisting of one share of Avino common stock and one half of one common share purchase warrant of Avino common stock, priced at a 25 % premium to the 20-day volume weighted average price prior to announcement,
Coeur Mining, Inc.
1 unchanged sentence
Notes to Consolidated Financial Statements
−Removed: • Deferred cash consideration of approximately $ 8.8 million to be paid no later than the first anniversary of initial production from any portion of the La Preciosa project,
−Removed: • Contingent payments of $ 0.25 per silver equivalent ounce (subject to an inflationary adjustment) on any new mineral reserves discovered and declared outside of the current resource area at the La Preciosa project, up to a maximum payment of $ 50.0 million, and
−Removed: • Two royalties covering the La Preciosa land package, including (i) a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.
+Added: NOTE 21 – DISPOSITIONS
+Added: On September 18, 2022, the Company entered into a Stock Purchase Agreement with AngloGold Ashanti (U.S.A.) Holdings Inc.
+Added: and its affiliate (the “Buyer”) 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:
+Added: (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, valued at $ 13.0 million, should the 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.
+Added: The transaction was consummated on November 4, 2022.
+Added: The Sterling/Crown sale resulted in a gain on the sale of $ 62.2 million, which was recognized in Other, Net in the Consolidated Statements of Comprehensive Income (Loss).
+Added: On October 27, 2021 the Company entered into a definitive agreement (the “La Preciosa Agreement”) to sell its La Preciosa project located in the State of Durango, Mexico to Avino (the “La Preciosa Sale”).
The Company classified the La Preciosa project as held for sale as of December 31, 2021 and the associated assets and liabilities are classified separately on the Consolidated Balance Sheets.
10 unchanged sentences
TOTAL LIABILITIES $ 11,269
−Removed: NOTE 23 – DISCONTINUED OPERATIONS
−Removed: In December 2017, the Company and certain of its subsidiaries entered into a definitive agreement (as amended, the “Manquiri Agreement”) to sell all of the outstanding capital stock of Empresa Minera Manquiri S.A.
−Removed: (“Manquiri”), which is the operator of the San Bartolomé mine and processing facility (the “Manquiri Divestiture”).
−Removed: On February 28, 2018, the Manquiri Divestiture was completed, and, in accordance with the Manquiri Agreement, the capital stock in Manquiri was sold to Ag-Mining Investments, AB, a privately-held Swedish company (the “Buyer”), in exchange for, among other items, (A) 2.0% net smelter returns royalty on all metals processed through the San Bartolomé mine’s processing facility (the “NSR”) and (B) promissory notes payable by the Buyer with an aggregate principal amount equal to $ 27.6 million (the “Manquiri Notes Receivable”).
−Removed: In September 2018, the Company entered into the Letter Agreement with the Buyer pursuant to which the total aggregate principal amount of the Manquiri Notes Receivable was reduced to $ 25.0 million, and the Buyer made a concurrent cash payment of $ 15.0 million to the Sellers in respect of the Manquiri Notes Receivable.
−Removed: In addition, the Company also agreed to forgo any rights to any value added tax refunds collected or received by Manquiri.
−Removed: On February 28, 2019, the parties executed a letter agreement (the “February Letter Agreement”), which amended certain terms of the Manquiri Agreement.
−Removed: Pursuant to the February Letter Agreement, the Buyer agreed to accelerate repayment of the remaining aggregate $ 6.0 million owed under the Manquiri Notes Receivable, which was received.
−Removed: As of the date of the entry into the February Letter Agreement, the remaining obligations under the Manquiri Agreement (including post-closing indemnification obligations) terminated.
−Removed: The Company recorded a $ 5.7 million gain on the sale Manquiri following the release of the indemnification liability (associated with termination of post-closing indemnification obligations) pursuant to the February Letter Agreement.
−Removed: In January 2020, the Buyer purchased the NSR from Coeur by making a payment to Coeur of $ 4.5 million.
−Removed: Coeur recorded a gain of $ 0.4 million following the payment.
+Added: On March 21, 2022, the La Preciosa Sale was completed.
+Added: Coeur and its subsidiaries received the following consideration at closing:
+Added: • $ 15.3 million cash,
+Added: • $ 5.0 million promissory note that matures prior to the first anniversary of the transaction closing, valued at $ 4.7 million,
+Added: • Equity consideration of 14.0 million units, consisting of one share of Avino common stock and one half of one common share purchase warrant of Avino common stock, valued at $ 13.7 million and $ 2.2 million, respectively.
+Added: Common share purchase warrants are exercisable at $ 1.09 per share and expire September 2023.
+Added: • In addition, under the La Preciosa Agreement, Coeur is entitled to the following additional consideration:
+Added: • $ 8.8 million deferred cash consideration to be paid no later than the first anniversary of initial production from any portion of the La Preciosa project, valued at $ 7.4 million,
+Added: • Contingent payments of $ 0.25 per silver equivalent ounce (subject to an inflationary adjustment) on any new mineral reserves discovered and declared outside of the current resource area at the La Preciosa project, up to a maximum payment of $ 50.0 million, valued at $ 1.2 million, and
+Added: • Two royalties, valued at $ 11.2 million, covering the La Preciosa land package, including (i) a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.
+Added: Coeur Mining, Inc.
+Added: and Subsidiaries
+Added: Notes to Consolidated Financial Statements
+Added: The La Preciosa sale resulted in a gain on the sale of $ 1.5 million, which was recognized in Other, Net in the Consolidated Statements of Comprehensive Income (Loss).
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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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.