What changed in this filing

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Item 1. Financial Statements

2023-05-10 compared with 2022-11-09 · 230 added, 397 removed, 529 unchanged (54% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30, 2022 December 31, 2021

March 31, 2023 December 31, 2022

ASSETS Notes In thousands, except share data

6 unchanged sentences

Prepaid expenses and other 15,199 25,814

Assets held for sale 20 101,750 54,240

288,144 300,432

14 unchanged sentences

Reclamation 8 5,796 5,796

Liabilities held for sale 20 12,813 11,269

226,151 219,360

8 unchanged sentences

Common stock, par value $ 0.01 per share;

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

authorized 600,000,000 shares, 331,042,396 issued and outstanding at March 31, 2023 and 295,697,624 at December 31, 2022

Additional paid-in capital 3,990,080 3,891,265

7 unchanged sentences

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

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

2022 2021 2022 2021

Three Months Ended March 31,

Notes In thousands, except share data

9 unchanged sentences

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishment — — — ( 9,173 )

Fair value adjustments, net 11 10,561 10,605

19 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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

2022 2021 2022 2021

Three Months Ended March 31,

Notes In thousands

4 unchanged sentences

Deferred taxes 6,451 ( 8,262 )

Loss on debt extinguishment 8 — — — 9,173

Fair value adjustments, net 11 ( 10,561 ) ( 13,744 )

12 unchanged sentences

Proceeds from the sale of assets — 15,371

Purchase of investments — ( 1,079 ) — ( 1,955 )

Sale of investments 6 39,775 —

Proceeds from notes receivable 4 5,000 —

Other ( 44 ) ( 11 )

13 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

In thousands Common

10 unchanged sentences

stock offering 32,862 329 98,100 — — 98,429

Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,862 19 ( 1,730 ) — — ( 1,711 )

Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 2,482 24 715 — — 739

Balances at March 31, 2023 331,042 $ 3,310 $ 3,990,080 $ ( 3,042,135 ) $ ( 4,719 ) $ 946,536

Net income (loss) — — — ( 77,434 ) — ( 77,434 )

Other comprehensive income (loss) — — — — 32,514 32,514

Common stock issued/canceled under long-term incentive plans and director fees and options, net ( 29 ) — 2,127 — — 2,127

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

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

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

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

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

In thousands Common

8 unchanged sentences

Other comprehensive income (loss) — — — — ( 4,758 ) (4,758)

Common stock issued under "at the market"

stock offering 22,053 220 98,279 — — 98,499

Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,862 19 ( 1,730 ) — — ( 1,711 )

Balances at March 31, 2022 280,834 $ 2,808 $ 3,834,896 $ ( 2,931,760 ) $ ( 5,970 ) $ 899,974

Net income (loss) — — — 32,146 — 32,146

Other comprehensive income (loss) — — — — ( 6,043 ) ( 6,043 )

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 792 7 3,016 — — 3,023

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

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

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

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

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

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

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Use of Estimates

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.

The Company's Condensed Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S.

The preparation of the Company's Condensed 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 Condensed Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period.

The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, estimates of recoverable silver and gold in leach pad inventories, estimates of fair value for certain reporting units and asset impairments, valuation allowances for deferred tax assets, and the fair value and accounting treatment of financial instruments, equity securities, asset acquisitions, the allocation of fair value to assets and liabilities assumed in connection with business combinations, and derivative instruments.

1 unchanged sentence

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

Properties Held for Sale

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

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

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

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

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

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

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

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

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

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

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

The applicable assets and liabilities of Coeur Sterling, Inc.

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

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

Revenue Recognition

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $ 22.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50 % of a portion of Palmarejo gold production at the lesser of $ 800 or market price per ounce.

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $22.0 million deposit from Franco-Nevada for the right and obligation, commencing in 2016, to purchase 50% of Palmarejo’s gold production (excluding production from certain properties acquired in 2015) at the lesser of $800 or market price per ounce.

Because there is no minimum obligation associated with the deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation.

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.

The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Condensed Consolidated Balance Sheet.

See Note 16 -- Commitments and Contingencies for additional detail.

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

Three Months Ended March 31,

In thousands 2023 2022

2 unchanged sentences

Closing Balance $ 7,296 $ 7,835

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 17).

In March 2022, the Company exercised an option to receive a $ 10.0 million prepayment (the “March 2022 Prepayment).

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.

The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheet.

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

In December 2022, the Company received a $25.0 million prepayment (the “December 2022 Prepayment”) under the Amended Sales Contract (as defined below).

The December 2022 Prepayment 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.

The remaining contract liability is included in Accrued liabilities and other on the Condensed Consolidated Balance Sheet.

See Note 2 -- Summary of Significant Accounting Policies contained in the 2022 10-K and Note 16 -- Commitments and Contingencies in this Report for additional detail.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

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

Three Months Ended March 31,

In thousands 2023 2022

9 unchanged sentences

The standard introduced the portfolio layer method allowing multiple hedged layers of a single closed portfolio when applying fair value hedge accounting.

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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company adopted the new derivatives and hedging standards effective January 1, 2023, which did not have a material effect on our financial position, results of operations or cash flows.

NOTE 3 – SEGMENT REPORTING

The Company’s operating segments include the Palmarejo, Rochester, Kensington and Wharf mines and Silvertip development property.

Except for the Silvertip development property, all operating segments are engaged in the discovery, mining, and production of gold and/or silver.

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

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

The Company’s operating segments include the Palmarejo, Rochester, Kensington and Wharf mines and Silvertip exploration project.

Except for the Silvertip exploration project, all operating segments are engaged in the discovery, mining, and production of gold and/or silver.

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

Other includes certain mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.

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

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

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

Silver sales 29,551 14,011 97 153 — — 43,812

Metal sales 64,836 30,173 49,107 38,877 — — 182,993

Costs and Expenses

Costs applicable to sales (1)

43,244 50,760 40,289 28,887 — — 163,180

Amortization 8,027 6,921 10,369 2,191 1,260 383 29,151

Exploration 1,775 601 2,796 — 2,303 931 8,406

Other operating expenses 812 1,804 425 482 4,966 10,482 18,971

Other income (expense)

Fair value adjustments, net — — — — — ( 13,067 ) ( 13,067 )

Interest expense, net 26 ( 225 ) ( 442 ) ( 22 ) ( 32 ) ( 5,237 ) ( 5,932 )

Other, net (3)

1,142 ( 101 ) ( 62 ) ( 167 ) ( 85 ) ( 574 ) 153

Income and mining tax (expense) benefit ( 1,805 ) 114 — ( 417 ) — 225 ( 1,883 )

Net Income (loss) $ 10,341 $ ( 30,125 ) $ ( 5,276 ) $ 6,711 $ ( 8,646 ) $ ( 30,449 ) $ ( 57,444 )

Segment assets (2)

$ 294,438 $ 769,391 $ 146,128 $ 90,542 $ 242,142 $ 85,034 $ 1,627,675

Capital expenditures $ 10,844 $ 73,995 $ 7,076 $ 458 $ 3,821 $ 408 $ 96,602

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

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

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

Three Months Ended March 31, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 40,607 $ 16,047 $ 40,124 $ 30,323 $ — $ — $ 127,101

23 unchanged sentences

Notes to Consolidated Financial Statements

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

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

Silver sales 114,387 44,632 575 669 — — 160,263

Metal sales 233,873 87,045 143,674 110,928 — — 575,520

Costs and Expenses

Costs applicable to sales (1)

135,532 120,988 116,510 74,096 — — 447,126

Amortization 27,150 16,592 28,360 6,500 3,778 1,169 83,549

Exploration 5,071 4,009 4,416 — 2,041 3,566 19,103

Other operating expenses 2,485 5,465 1,348 1,521 16,550 31,751 59,120

Other income (expense)

Fair value adjustments, net — — — — — ( 65,272 ) ( 65,272 )

Interest expense, net ( 100 ) ( 606 ) ( 1,111 ) ( 49 ) ( 150 ) ( 13,654 ) ( 15,670 )

Other, net (3)

1,635 ( 192 ) 19 506 ( 320 ) 555 2,203

Income and mining tax (expense) benefit ( 24,325 ) 1,079 127 ( 2,382 ) — 10,422 ( 15,079 )

Net Income (loss) $ 40,845 $ ( 59,728 ) $ ( 7,925 ) $ 26,886 $ ( 22,839 ) $ ( 104,435 ) $ ( 127,196 )

Segment assets (2)

$ 294,438 $ 769,391 $ 146,128 $ 90,542 $ 242,142 $ 85,034 $ 1,627,675

Capital expenditures $ 34,515 $ 154,001 $ 23,828 $ 2,294 $ 21,383 $ 3,239 $ 239,260

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

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

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

Three Months Ended March 31, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other (4)

Gold sales $ 40,074 $ 11,052 $ 44,059 $ 34,266 $ — $ — $ 129,451

8 unchanged sentences

Other income (expense)

Loss on debt extinguishment — — — — — ( 9,173 ) ( 9,173 )

Fair value adjustments, net — — — — — 10,605 10,605

10 unchanged sentences

(3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail

Assets September 30, 2022 December 31, 2021

(4) Includes Sterling/Crown exploration properties and La Preciosa project that were disposed of in 2022, see Note 21 -- Dispositions contained in the 2022 10-K for additional information.

Assets March 31, 2023 December 31, 2022

Total assets for reportable segments $ 1,737,001 $ 1,669,982

2 unchanged sentences

Total consolidated assets $ 1,889,405 $ 1,846,143

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Geographic Information

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

Long-Lived Assets March 31, 2023 December 31, 2022

United States $ 974,500 $ 899,960

3 unchanged sentences

Total $ 1,466,582 $ 1,389,755

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

2022 2021 2022 2021

Revenue Three months ended March 31,

United States $ 104,991 $ 105,331

1 unchanged sentence

Total $ 187,298 $ 188,404

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 4 – RECEIVABLES

Receivables consist of the following:

In thousands September 30, 2022 December 31, 2021

In thousands March 31, 2023 December 31, 2022

Current receivables:

3 unchanged sentences

Avino note receivable (1)

Gold forwards realized gains 5,222 —

Gold and silver forwards realized gains (2)

Other 631 586

2 unchanged sentences

Deferred cash consideration (1)

$ 7,753 $ 7,677

Contingent consideration (1)

14,345 14,346

$ 22,098 $ 22,023

Total receivables $ 57,719 $ 58,356

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

(1) See Note 11 -- Fair Value Measurements for additional details on the Avino note receivable, deferred cash consideration and contingent consideration.

In March 2023, the Company received payment of $5.0 million related to the Avino note receivable.

(2) Represents realized gains on gold and silver forward hedges from March 2023 that contractually settle in subsequent months.

See Note 12 -- Derivative Financial Instruments & Hedging for additional details on the gold and silver forward hedges.

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:

In thousands September 30, 2022 December 31, 2021

In thousands March 31, 2023 December 31, 2022

Concentrate $ 1,793 $ 2,869

10 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.

During the first nine months of 2022, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value which resulted in a non-cash write down for the three and nine months ended September 30, 2022 of $ 24.2 million ($ 21.2 million was recognized in Costs Applicable to Sales and $ 3.0 million in Amortization) and $ 43.2 million ($ 38.0 million was recognized in Cost Applicable to Sales and $ 5.2 million in Amortization), respectively.

In the three months ended March 31, 2023, the cost of stockpile, leach pad and metal inventory at Rochester exceeded its net realizable value, which resulted in non-cash write downs of $ 14.3 million ($ 13.1 million was recognized in Costs applicable to sales and $ 1.2 million in Amortization ).

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 6 – INVESTMENTS

1 unchanged sentence

The Company makes strategic investments in equity securities of silver and gold exploration, development and royalty and streaming companies.

At September 30, 2022

At March 31, 2023

In thousands Cost Gross

1 unchanged sentence

Equity Securities

Victoria Gold Corp.

$ 70,560 $ ( 34,305 ) $ — $ 36,255

Integra Resources Corp.

11 unchanged sentences

9,455 ( 7,115 ) — 2,340

Avino Silver & Gold Mines Ltd 13,720 ( 4,199 ) — 9,521

Other 2,233 ( 1,974 ) — 259

Equity securities $ 95,968 $ ( 51,816 ) $ — $ 44,152

Changes in the fair value of the Company’s investment in equity securities are recognized each period in the Consolidated Statement of Comprehensive Income (Loss) in Fair value adjustments, net .

Changes in the fair value of the Company’s investment in equity securities are recognized each period in the Condensed Consolidated Statement of Comprehensive Income (Loss) in Fair value adjustments, net .

See Note 11 -- Fair Value Measurements for additional details.

On June 28, 2022, the Company entered into an agreement to sell 5,000,000 shares of common stock of Victoria Gold (“Victoria Gold Common Shares”) at a price of $ 8.34 per Victoria Gold Common Share, which settled on July 5, 2022 for net

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

proceeds of $ 40.5 million.

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

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

In connection with the closing of the transaction, the Company received 14,000,000 common shares of Avino Silver & Gold Mines Ltd.

(“Avino”) (representing approximately 12.0 % of Avino’s outstanding common shares).

See Note 19 -- Dispositions for additional details on the sale.

NOTE 7 – LEASES

Right of Use Assets and Liabilities

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

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

In thousands 2022 2021 2022 2021

Operating lease cost $ 2,906 $ 3,180 $ 8,800 $ 9,437

Short-term operating lease cost $ 2,185 $ 2,441 $ 7,636 $ 7,614

Finance Lease Cost:

Amortization of leased assets $ 5,521 $ 5,141 $ 15,889 $ 16,068

Interest on lease liabilities $ 1,341 1,833 3,916 3,441

Total finance lease cost $ 6,862 $ 6,974 $ 19,805 $ 19,509

Supplemental cash flow information related to leases was as follows:

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

In thousands 2022 2021 2022 2021

Other Information

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases $ 5,091 $ 5,621 $ 16,437 $ 17,256

Operating cash flows from finance leases $ 1,341 $ 1,833 3,916 $ 3,441

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental balance sheet information related to leases was as follows:

In thousands September 30, 2022 December 31, 2021

Operating Leases

Other assets, non-current $ 23,819 $ 30,987

Accrued liabilities and other 11,109 11,301

Other long-term liabilities 11,700 18,660

Total operating lease liabilities $ 22,809 $ 29,961

Finance Leases

Property and equipment, gross $ 143,733 $ 115,597

Accumulated depreciation ( 75,691 ) ( 63,879 )

Property and equipment, net $ 68,042 $ 51,718

Debt, current $ 26,417 $ 29,821

Debt, non-current 40,285 24,407

Total finance lease liabilities $ 66,702 $ 54,228

Weighted Average Remaining Lease Term

Weighted-average remaining lease term - finance leases 1.80 1.62

Weighted-average remaining lease term - operating leases 2.53 3.17

Weighted Average Discount Rate

Weighted-average discount rate - finance leases 5.17 % 5.08 %

Weighted-average discount rate - operating leases 5.21 % 5.20 %

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

As of September 30, 2022 (In thousands)

Operating leases Finance leases

2022 $ 2,917 $ 7,076

2023 11,137 24,383

2024 8,952 17,452

2025 214 14,839

2026 220 7,443

Thereafter 946 1,373

Total $ 24,386 $ 72,566

imputed interest ( 1,577 ) ( 5,864 )

Net lease obligation $ 22,809 $ 66,702

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

NOTE 7 – DEBT

September 30, 2022 December 31, 2021

March 31, 2023 December 31, 2022

In thousands Current Non-Current Current Non-Current

5 unchanged sentences

$ 32,039 $ 462,047 $ 24,578 $ 491,355

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

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

(1) Net of unamortized debt issuance costs of $ 5.6 million and $ 5.8 million at March 31, 2023 and December 31, 2022, respectively.

(2) Unamortized debt issuance costs of $ 3.2 million and $ 3.6 million at March 31, 2023 and December 31, 2022, respectively, included in Other Non-Current Assets .

2029 Senior Notes

In March 2021, the Company completed an offering of $ 375.0 million in aggregate principal amount of senior notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $ 367.5 million (the “2029 Senior Notes”).

In March 2021, the Company completed an offering of $ 375.0 million in aggregate principal amount of 5.125% senior notes due 2029 in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $ 367.5 million (the “2029 Senior Notes”).

For more details, please see Note 10 -- Debt contained in the 2022 10-K.

In April 2023, the Company exchanged $ 9.5 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 2,155,141 shares of common stock.

Revolving Credit Facility

On May 2, 2022, the Company entered into an amendment (the “May Amendment”) to the revolving credit facility (the “RCF”), dated as of September 29, 2017 (as amended, the “Credit Agreement”), by and among the Company, as borrower, certain subsidiaries of the Company, as guarantors, Bank of America, N.A, as administrative agent (the “Agent”), and Bank of America, N.A., Royal Bank of Canada, Bank of Montreal, Chicago Branch, the Bank of Nova Scotia, ING Capital LLC and Goldman Sachs Bank USA (the “RCF Lenders”).

The May Amendment, among other things, increased the maximum principal amount of the RCF by $ 90.0 million in incremental loans and commitments to an aggregate amount of $ 390.0 million.

At September 30, 2022, the Company had $ 200.0 million drawn at an interest rate of 5.5 %, $ 29.8 million in outstanding letters of credit and $ 160.2 million available under the RCF.

At March 31, 2023, the Company had $ 60.0 million drawn at an interest rate of 8.3 %, $ 29.5 million in outstanding letters of credit and $ 300.5 million available under its $ 390 million revolving credit facility (the “RCF”).

Future borrowing may be subject to certain financial covenants.

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

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

For more details, please see Note 10 -- Debt contained in the 2022 10-K.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Finance Lease Obligations

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

In the nine months ended September 30, 2022, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester and Kensington.

Coeur secured a finance lease package for nearly $ 60.0 million in 2021, a portion of which has been funded as of September 30, 2022.

The package is earmarked for planned equipment purchases for Rochester’s Plan of Operation Amendment 11 (“POA 11”) in 2022, and has an interest rate of 5.22 %.

In the three months ended March 31, 2023, the Company entered into a new lease financing arrangement for mining equipment at Rochester.

Additionally, Coeur secured a finance lease package for nearly $ 60.0 million in 2021, of which $ 57.4 million has been funded as of March 31, 2023.

This package is earmarked for planned equipment purchases for the Rochester expansion project 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 7 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.

For more details, please see Note 9 -- Leases contained in the 2022 10-K.

Interest Expense

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

Three Months Ended March 31,

In thousands 2023 2022

2029 Senior Notes $ 4,805 $ 4,805

2029 Senior Notes 4,805 4,805 14,414 11,211

Revolving Credit Facility 2,746 1,187

4 unchanged sentences

Total interest expense, net of capitalized interest $ 7,389 $ 4,568

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 8 – RECLAMATION

2 unchanged sentences

On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.

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

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

Changes to the Company’s asset retirement obligations for its operating sites are as follows:

Three Months Ended March 31,

In thousands 2023 2022

4 unchanged sentences

NOTE 9 - INCOME AND MINING TAXES

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

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

2022 2021 2022 2021

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

The following table summarizes the components of Income and mining tax (expense) benefit for the three months ended March 31, 2023 and 2022 by significant jurisdiction:

Three months ended March 31,

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

United States $ ( 25,780 ) $ ( 1,018 ) $ ( 10,130 ) $ ( 1,199 )

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$ ( 13,878 ) $ ( 10,708 ) $ 9,376 $ ( 1,694 )

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

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

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

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) the sale of non-core assets;

During the first quarter of 2023, the Company reported estimated income and mining tax expense of approximately $ 10.7 million, resulting in an effective tax rate of ( 77.2 )%.

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

The comparability of the Company’s income and mining tax (expense)

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

(i) the sale of non-core assets;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) mining taxes;

(v) foreign exchange rates;

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As a result of statutes of limitation that will begin to expire within the next twelve months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by less than $ 0.1 million in the next twelve months.

At September 30, 2022 and December 31, 2021, the Company had $ 0.0 million and $ 0.3 million of total gross unrecognized tax benefits, respectively, that, if recognized, would positively impact the Company’s effective income tax rate.

At March 31, 2023 and December 31, 2022, the Company had $ 0.0 million of unrecognized tax benefits.

The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense.

At September 30, 2022 and December 31, 2021, the amount of accrued income-tax-related interest and penalties was $ 0.0 million and $ 0.4 million, respectively.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

At March 31, 2023 and December 31, 2022, the Company had $ 0.0 million of accrued income-tax-related interest and penalties.

NOTE 10 – STOCK-BASED COMPENSATION

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Stock awards include performance shares, restricted stock and stock options.

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

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

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

Stock-based compensation expense in the three months ended March 31, 2023 was $ 3.2 million, compared to $ 2.3 million in the three months ended March 31, 2022.

At March 31, 2023, there was $ 14.1 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.9 years.

The following table summarizes the grants awarded during the three months ended March 31, 2023:

Grant date Restricted

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February 27, 2023 2,596,856 $ 3.00 1,738,581 $ 3.14

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

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

NOTE 11 – FAIR VALUE MEASUREMENTS

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

Three Months Ended March 31,

In thousands 2023 2022

Unrealized gain (loss) on equity securities $ 4,614 $ ( 35,709 ) $ ( 44,452 ) $ ( 3,702 )

Realized gain (loss) on equity securities ( 17,681 ) — ( 17,681 ) 769

Exchange agreement embedded derivative — 9,269 — 9,933

Change in the value of equity securities (1)

$ 10,561 $ 13,744

Termination of gold zero cost collars — ( 3,139 )

Fair value adjustments, net $ 10,561 $ 10,605

(1) Includes unrealized gains on held equity securities of $ 2.8 million, and $ 13.7 million for the three months ended March 31, 2023, and 2022, 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).

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

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

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

Fair Value at September 30, 2022

Fair Value at March 31, 2023

In thousands Total Level 1 Level 2 Level 3

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Provisional metal sales contracts 224 — 224 —

Silver forwards 555 — 555 —

$ 15,717 $ 14,443 $ 1,274 $ —

Gold forwards

1 unchanged sentence

Provisional metal sales contracts 184 — 184 —

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

$ 5,458 $ — $ 5,458 $ —

Fair Value at December 31, 2022

2 unchanged sentences

Provisional metal sales contracts 299 — 299 —

$ 132,283 $ 132,197 $ 86 $ —

Gold zero cost collars

Gold forwards 12,343 — 12,343 —

$ 56,794 $ 43,893 $ 12,901 $ —

Provisional metal sales contracts $ 10 $ — $ 10 $ —

$ 1,374 $ — $ 1,374 $ —

The Company’s investments in equity securities are recorded at fair market value in the financial statements based primarily on quoted market prices.

Such instruments are classified within Level 1 of the fair value hierarchy.

The Company’s common share purchase warrants received as consideration in the La Preciosa project sale are valued using the pricing model with inputs derived from observable market data, including quoted market prices and quoted interest curve rates.

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.

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.

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.

As further discussed in Note 19 -- 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, 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.

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.

The fair value of the royalties and the contingent consideration were valued using Monte Carlo simulation models.

The model inputs include significant unobservable inputs and involve significant management judgment.

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 %.

Such instruments are classified within Level 3 of the fair value hierarchy.

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

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

September 30, 2022

The Company’s gold and silver forward contracts are valued using pricing models with inputs derived from observable market data, including forward market prices, yield curves, credit spreads.

No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2023.

The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 2023 and December 31, 2022 is presented in the following table:

March 31, 2023

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

Promissory note $ 4,780 $ 4,593 $ — $ 4,593 $ —

Deferred cash consideration $ 7,753 $ 7,338 $ — $ 7,338 $ —

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

Promissory note $ 4,926 $ 4,579 $ — $ 4,579 $ —

Deferred cash consideration $ 7,677 $ 7,317 $ — $ 7,317 $ —

2029 Senior Notes (1)

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The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

Also included in 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.

The consideration for the sale of La Preciosa project included a promissory note payable to the Company that matured in March 2023 and was paid in full, and deferred cash consideration payable on the first anniversary of initial production from any portion of the La Preciosa project.

These assets were valued using the pricing model with inputs derived from observable market data, including synthetic credit rating and quoted discount rate.

1 unchanged sentence

Such instruments are classified within Level 2 of the fair value hierarchy.

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.

The consideration for the sale of La Preciosa project also 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, 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.

The fair value of the royalties and the contingent consideration were valued using Monte Carlo simulation models.

The model inputs include significant unobservable inputs and involve significant management judgment.

Such instruments are classified as Level 3 of the fair value hierarchy.

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.

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.

The model inputs include significant unobservable inputs, involve significant management judgment and is classified as Level 3 of the fair value hierarchy.

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 12 – 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.

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.

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This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.

Derivatives Not Designated as Hedging Instruments

Provisional Metal Sales

The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices.

The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes.

The host contract is the receivable recorded at the forward price at the time of sale.

The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.

Zero Cost Collars

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.

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.

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.

The Company elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

In the first quarter of 2022, the Company voluntarily de-designated hedge accounting for the zero cost collars and subsequently terminated the arrangements.

The cost to terminate the zero cost collars was $ 7.7 million, of which $ 3.1 million was recognized in earnings and the remaining $ 4.6 million, which represents the fair value of the zero cost collars on the date of de-designation, was retained in accumulated other comprehensive income (loss) (“AOCI”) and will be recognized in earnings as the forecasted transactions occur.

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

At September 30, 2022, the Company had the following derivative instruments that settle as follows:

In thousands except average prices and notional ounces 2022 2023 and Thereafter

Provisional gold sales contracts $ 32,768 $ —

Average gold price per ounce $ 1,744 $ —

Notional ounces 18,789 —

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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

September 30, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 120 $ 948

December 31, 2021

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 86 $ 162

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

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

Financial statement line Derivative 2022 2021 2022 2021

Revenue Provisional metal sales contracts $ ( 757 ) $ 79 $ ( 751 ) $ ( 618 )

Fair value adjustments, net Exchange agreement embedded derivative — 9,269 — 9,933

Fair value adjustments, net Terminated zero cost collars — — ( 3,139 ) —

$ ( 757 ) $ 9,348 $ ( 3,890 ) $ 9,315

Derivatives Designated as Cash Flow Hedging Strategies

To protect the Company’s exposure to fluctuations in metal prices the Company enters into forward contracts.

The contracts are net settled monthly and if the actual price of gold at the time of expiration is lower than the fixed price or higher than the fixed prices, it would result in a realized gain or loss, respectively.

To protect the Company’s exposure to fluctuations in metal prices, particularly during times of elevated capital expenditures, the Company enters into forward contracts.

The contracts are net settled monthly and if the actual price of gold or silver at the time of expiration is lower than the fixed price or higher than the fixed prices, it would result in a realized gain or loss, respectively.

The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

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

At March 31, 2023, 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

2 unchanged sentences

Notional ounces 157,998 —

The effective portions of cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings.

Silver forwards

Average silver fixed price per ounce $ 24.64 —

Notional ounces 2,400,000 —

The effective portions of cash flow hedges are recorded in Accumulated other comprehensive income (loss) (“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.

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

As of September 30, 2022, the Company had $ 47.1 million of net after-tax gain in AOCI related to gains from cash flow hedge transactions, of which $ 41.8 million of net after-tax gains is expected to be recognized in its Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.

Actual amounts ultimately reclassified to net income are dependent on the price of gold for metal contracts.

As of March 31, 2023, the Company had $ 4.7 million of net after-tax loss in AOCI related to losses from cash flow hedge transactions, of which $ 4.7 million of net after-tax losses is expected to be recognized in its Condensed 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 and silver for metal contracts.

The following summarizes the classification of the fair value of the derivative instruments designated as cash flow hedges:

September 30, 2022

March 31, 2023

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

Gold forwards $ — $ — $ 5,274

Silver forwards 555 — —

December 31, 2022

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

Gold forwards $ 12,343 $ — $ —

The following table sets forth the after-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2023 and 2022, respectively (in thousands).

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

December 31, 2021

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

Gold zero cost collars $ — $ — $ 1,212

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and 2021, respectively (in thousands).

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

2022 2021 2022 2021

Three Months Ended March 31,

Amount of Gain (Loss) Recognized in AOCI

Gold forwards $ ( 13,984 ) $ ( 1,832 )

Silver forwards 1,056 —

Gold zero cost collars — ( 3,386 )

Foreign currency forward exchange contracts — ( 265 ) — 133

$ ( 12,928 ) $ ( 5,218 )

1 unchanged sentence

Gold forwards $ ( 2,261 ) $ —

Silver forwards ( 1,873 ) —

Gold zero cost collars — 460

Foreign currency forward exchange contracts — ( 3,925 ) — ( 10,536 )

$ ( 4,134 ) $ 460

Derivatives Not Designated as Hedging Instruments

Provisional Metal Sales

The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes.

The host contract is the receivable recorded at the forward price at the time of sale.

The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.

Zero Cost Collars

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.

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.

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.

The Company elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

In the first quarter of 2022, the Company voluntarily de-designated hedge accounting for the zero cost collars and subsequently terminated the arrangements.

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 AOCI and was recognized in earnings in 2022 as the forecasted transactions occurred.

At March 31, 2023, the Company had the following derivative instruments that settle as follows:

In thousands except average prices and notional ounces 2023 2024 and Thereafter

Provisional gold sales contracts $ 15,047 $ —

Average gold price per ounce $ 1,923 $ —

Notional ounces 7,825 —

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

March 31, 2023

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 224 $ 184

December 31, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 299 $ 10

The following represent mark-to-market gains (losses) on derivative instruments in the three ended March 31, 2023, and 2022, respectively (in thousands):

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three Months Ended March 31,

Financial statement line Derivative 2023 2022

Revenue Provisional metal sales contracts $ ( 249 ) $ 492

Fair value adjustments, net Terminated zero cost collars — ( 3,139 )

$ ( 249 ) $ ( 2,647 )

The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices.

3 unchanged sentences

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

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

Three Months Ended March 31,

In thousands 2023 2022

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Other, net consists of the following:

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

Three Months Ended March 31,

In thousands 2023 2022

1 unchanged sentence

Gain (loss) on sale of assets ( 9 ) 1,831

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

Other 202 465

1 unchanged sentence

NOTE 14 – NET INCOME (LOSS) PER SHARE

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

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

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

For the three months ended March 31, 2023 and 2022, there were 366,946 and 1,151,073 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.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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

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

For the three and nine months ended September 30, 2022, there were 3,719,764 and 2,013,571 common stock equivalents, respectively, related to equity-based awards that were not included in the diluted earnings per share calculation as the shares would be antidilutive.

Similarly, 1,513,288 and 1,489,158 common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2021, respectively.

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

Three months ended March 31,

In thousands except per share amounts 2023 2022

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On March 17, 2023, the Company completed a $ 100.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “March 2023 Equity Offering”).

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

The March 2023 Equity Offering was conducted pursuant to an ATM Equity Offering Sales Agreement, entered into on February 23, 2023 between the Company and BMO Capital Markets Corp.

and RBC Capital Markets, LLC as sales agents.

The Company sold a total of 32,861,580 shares of its common stock in the March 2023 Equity Offering at an average price of $ 3.04 per share, raising net proceeds (after sales commissions) of $ 98.4 million.

Proceeds from the March 2023 Equity Offering were used to reduce outstanding amounts under the RCF and for general corporate purposes.

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 2022 Equity Offering”).

The December 2022 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.

and RBC Capital Markets, LLC as sales agents.

The Company sold a total of 14,766,835 shares of its common stock in the December 2022 Equity Offering at an average price of $ 3.39 per share, raising net proceeds (after sales commissions) of $ 49.2 million.

Proceeds from the December 2022 Equity Offering were used to repay outstanding amounts under the RCF.

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 2022 Equity Offering”).

The March 2022 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.

and RBC Capital Markets, LLC as sales agents.

The Company sold a total of 22,053,275 shares of its common stock in the March 2022 Equity Offering at an average price of $ 4.53 per share, raising net proceeds (after sales commissions) of $ 98.0 million.

Proceeds from the March 2022 Equity Offering were used to repay outstanding amounts under the RCF.

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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.

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.

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”).

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Guarantor Subsidiaries

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

In thousands March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022

Current assets $ 31,103 $ 73,692 $ 162,845 $ 137,432

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SUMMARIZED STATEMENTS OF INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2022

THREE MONTHS ENDED MARCH 31, 2023

In thousands Coeur Mining, Inc.

5 unchanged sentences

Mexico Litigation Matters

As of September 30, 2022, $ 26.0 million in principal amount is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.

As of March 31, 2023, $ 29.1 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).

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.

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

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

Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation of the matter continued at the Mexican administrative, appeals court and supreme court levels for several years, most of which was 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.

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.

Coeur has elected to 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.

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Palmarejo Gold Stream

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

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

In accordance with generally accepted accounting principles, although Coeur Mexicana has satisfied its

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Notes to Condensed Consolidated Financial Statements

or spot price per ounce.

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

In accordance with generally accepted accounting principles, although Coeur Mexicana has satisfied its contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units-of-production basis as ounces are sold to Franco-Nevada.

At September 30, 2022 the remaining unamortized balance was $ 7.6 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units-of-production basis as ounces are sold to Franco-Nevada.

At March 31, 2023, the remaining unamortized balance was $ 7.3 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Condensed Consolidated Balance Sheet.

Kensington Prepayment

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”).

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.

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

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

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

The Amended Sales Contract was further amended in June 2022 to consolidate the remaining deliveries of $ 15.0 million and $ 10.0 million under the December 2021 Prepayment and March 2022 Prepayment (the “June 2022 Consolidated Prepayment”), to extend the repayment period for the June 2022 Consolidated Prepayment, and to provide for future prepayments of up to $ 25.0 million on a semi-annual basis through the end of 2024, provided all prior outstanding prepayment amounts are paid before such future prepayments are made.

The remaining deliveries of the June 2022 Consolidated Prepayment are recognized as a deferred revenue liability and are presented in Accrued liabilities and other on the Consolidated Balance Sheet.

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 2022.

POA 11 Expansion Project

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

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

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

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

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

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

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

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

From time to time thereafter, the Amended Sales Contract has been further amended to allow for additional prepayments.

In December 2022, the Company received a $25.0 million prepayment, of which $10.0 million was recognized as revenue in the first quarter of 2023.

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 Condensed Consolidated Balance Sheet.

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 June 2023.

Rochester Expansion Project Update

As of March 31, 2023, the Company had committed approximately $ 634 million of capital since inception of the Rochester expansion project, approximately $ 560 million of the estimated project cost had been incurred and the project was 82% complete.

The Company estimates the total capital cost for the project will likely be around the high end of the $650 - $670 million guidance range, which primarily reflects the impact of extreme winter weather on construction productivity during the first quarter.

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

The Company expects capital expenditures related to the Rochester expansion to be approximately $197 - $207 million during 2023, with roughly 70% incurred during the first half of the year.

Coeur achieved several key milestones at the Rochester expansion project during the quarter.

Notably, the Company began placing ore on the new Stage VI leach pad on February 1 and achieved mechanical completion of the Merrill-Crowe process plant on March 31, ahead of its second quarter target completion date.

Coeur also energized the 63-kilovolt power system and achieved mechanical completion of the crusher corridor electrical substation.

In addition to achieving mechanical completion ahead of schedule, progress on the Merrill-Crowe plant included (i) completion of the leach recirculation system which will deliver solution to the Stage VI leach pad, (ii) advancement of pre-commissioning of power and process systems, and (iii) completion of control systems programming and acceptance testing.

Coeur also continued to make solid progress on the crusher corridor with the start of steel erection and equipment setting for the pre-screen and further advancement of concrete work in the primary crusher area.

Other work on the crusher corridor included (i) stacker steel and conveyor erection at the primary, secondary and tertiary stockpiles, (ii) topping out of the steel erection at both the secondary and tertiary crushers, (iii) continuation of piping and electrical installation across the crusher corridor, and (iv) completion of control systems programming with acceptance testing now well advanced.

Other Commitments and Contingencies

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit, bank guarantees and, in some cases, cash as financial support for various purposes, including environmental remediation, reclamation, collateral for gold hedges and other general corporate purposes.

As of September 30, 2022 and December 31, 2021, the Company had surety bonds totaling $ 326.7 million and $ 315.1 million, respectively, in place as financial support for future reclamation and closure costs.

As of March 31, 2023 and December 31, 2022, the Company had surety bonds totaling $ 319.1 million and $ 326.8 million, respectively, in place as financial support for future reclamation and closure costs.

The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations and from time-to-time, the Company may be required to post collateral, including cash or letters of credit which reduce availability under its revolving credit facility, to support these instruments.

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

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

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

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

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Accrued liabilities and other consist of the following:

In thousands September 30, 2022 December 31, 2021

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In thousands March 31, 2023 December 31, 2022

Accrued salaries and wages $ 20,960 $ 29,868

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(1) See Note 16 -- Commitments and Contingencies for additional details on deferred revenue liabilities

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

In thousands September 30, 2022 September 30, 2021

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that total the same such amounts shown in the Condensed Consolidated Statements of Cash Flows in the three months ended March 31, 2023 and 2022:

In thousands March 31, 2023 March 31, 2022

Cash and cash equivalents $ 66,977 $ 73,330

Restricted cash equivalents 1,706 1,389

Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 76,816 $ 86,791

NOTE 19 – DISPOSITIONS

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

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

Coeur and its subsidiaries received the following consideration at closing:

• $ 15.3 million cash,

• $ 5.0 million promissory note that matures prior to the first anniversary of the transaction closing, valued at $ 4.7 million,

• 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.

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

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

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

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

• Two royalties, valued at $ 11.2 million, covering the La Preciosa land package, including (i) a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and

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

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

NOTE 20 – ASSETS AND LIABILITIES HELD FOR SALE

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

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

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

The transaction was consummated on November 4, 2022.

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

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

In thousands September 30, 2022

Cash and cash equivalents $ 32

Property, plant and equipment, net 707

Mining properties, net 100,985

TOTAL ASSETS $ 101,750

Accounts payable $ 34

Accrued liabilities and other 78

Reclamation 1,828

Deferred tax liabilities 10,873

TOTAL LIABILITIES $ 12,813

Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 68,683 $ 74,719

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements