What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2023-05-10 compared with 2022-11-09 · 230 added, 308 removed, 274 unchanged (66% of the section changed)

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

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

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

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

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

Third Quarter Highlights

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

First Quarter Highlights

For the quarter, Coeur reported revenue of $187.3 million and cash used in operating activities of $35.0 million.

We reported GAAP net loss of $24.6 million, or $0.08 per diluted share.

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

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

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

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

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

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

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

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

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

• Rochester expansion on track;

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

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

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

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

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

Closing of the transaction occurred on November 4, 2022

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

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

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

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

Three Months Ended Nine Months Ended

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

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $25.1 million and net loss of $33.1 million or $0.11 per diluted share.

• First quarter production stronger than expected and in-line with 2023 guidance – Solid performances at Palmarejo, Rochester and Wharf offset lower production levels at Kensington, leading to total production of 69,039 ounces of gold and 2.5 million ounces of silver.

Production levels are expected to increase during the second half of the year due to mine plan sequencing as well as the anticipated ramp-up and commissioning of the Rochester expansion

• Rochester expansion remains on-track for mid-year construction completion – Coeur began stacking ore on the new Stage VI leach pad and achieved mechanical completion of the new Merrill-Crowe process plant ahead of schedule during the first quarter.

As of March 31, 2023, the project was 82% complete and approximately $634 million of the estimated project capital had been committed, of which $560 million had been incurred

• Balance sheet well-positioned to support remaining Rochester expansion capital requirements – The Company ended the quarter with total liquidity of approximately $382 million, including $67 million of cash, $300 million of available capacity under its $390 million revolving credit facility (“RCF”) and $15 million of marketable securities.

The Company further bolstered its hedging program with approximately 158,000 ounces of gold hedged at an average price of $1,968 per ounce and roughly 3.7 million ounces of silver hedged at an average price of $25.04 per ounce in 2023

• Exploration success continues at Silvertip and Kensington – The deepest hole ever drilled at Silvertip targeting a magnetic anomaly and potential heat source was successfully completed during the quarter showing occurrences of intrusive porphyry and higher temperature mineralogy.

Silvertip continues to impress with its high silver, zinc and lead grades as well as signs of other critical minerals such as indium, germanium and gallium contained in the deposit.

At Kensington, drilling indicates that new mineralized zones identified in Upper Kensington continue, suggesting promising potential for further mine life increases

Selected Financial and Operating Results

Three Months Ended

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

Financial Results (In thousands):

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$ (33,058) $ (17,451) $ (13,782)

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

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

$ (0.11) $ (0.06) $ (0.05)

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Consolidated Financial Results

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

Three Months Ended March 31, 2023 compared to Three Months Ended December 31, 2022

We sold 70,866 gold ounces and 2.6 million silver ounces, compared to 88,189 gold ounces and 2.5 million silver ounces.

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

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

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

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

Revenue decreased by $22.8 million, or 11%, as a result of a 20% decrease in gold ounces sold, partially offset by a 4% increase in silver ounces sold and a 10% increase in average realized silver prices, which benefited from the favorable impact of silver hedges realized gains.

Average realized gold prices remained comparable as higher gold spot prices resulted in lower realized gains from gold hedges.

The decrease in gold ounces sold was primarily due to timing of recoveries at Rochester and Wharf, and lower mill throughput and grades at Kensington.

The increase in silver ounces sold was primarily due to higher grades at Palmarejo, partially offset by the timing of recoveries at Rochester.

Gold and silver represented 68% and 32% of first quarter 2023 sales revenue, respectively, compared to 75% and 25% of fourth quarter 2022 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Three Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2022 June 30, 2022

In thousands March 31, 2023 December 31, 2022

Gold sales $ 127,101 $ 157,620 $ (30,519) (19) %

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Costs Applicable to Sales

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

Costs applicable to sales decreased $6.3 million, or 4%, primarily due to lower gold ounces sold, partially offset by increased lower of cost or net realizable value (“LCM”) adjustments at Rochester.

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

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

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

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

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

Amortization decreased $5.4 million primarily due to lower gold ounces sold and longer assumed mine lives at Palmarejo, Rochester, Kensington and Wharf driven by recent successful investments in exploration.

General and administrative expenses increased $1.9 million, or 19%, primarily due to higher non-cash employee incentive and stock-based compensation costs.

Exploration expense decreased $2.9 million, or 38% driven by a decrease in drilling activity as a result of the ramp down of projects in the fourth quarter of 2022 to prioritize the completion of the Rochester expansion project in 2023.

Pre-development, reclamation, and other expenses decreased $0.6 million, or 5%, stemming from lower operating costs at noncore asset locations and lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, partially offset by higher ongoing carrying costs at Silvertip, and higher asset retirement accretion.

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

Three Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2022 June 30, 2022

In thousands March 31, 2023 December 31, 2022

COVID-19 $ 56 $ 155 $ (99) (64) %

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Other Income and Expenses

Fair value adjustments, net, decreased to a loss of $13.1 million compared to $62.8 million as a result of a lesser decrease in the value of the Company’s equity investments.

Fair value adjustments, net, increased to a gain of $10.6 million compared to a $1.4 million loss as a result of an increase in value of the Company’s equity investments.

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

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

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

Interest expense (net of capitalized interest of $2.1 million) decreased to $7.4 million from $8.2 million due to lower interest paid under the RCF attributable to lower average debt levels, and higher capitalized interest.

Other, net decreased to a loss of $1.0 million compared to a gain of $64.8 million in three months ended December 31, 2022, as a result of the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties in the fourth quarter of 2022.

Income and Mining Taxes

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

This compares to income tax expense of $11.5 million for an effective tax rate of 17.4% for the second quarter of 2022.

Income and mining tax expense of approximately $10.7 million resulted in an effective tax rate of (77.2)% for the three months ended March 31, 2023.

This compares to income tax benefit of $0.4 million for an effective tax rate of 0.9% for the three months ended December 31, 2022.

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

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) the sale of non-core assets;

(v) foreign exchange rates;

(vi) the impact of uncertain tax positions;

(i) the sale of non-core assets;

(ii) the non-recognition of tax assets;

(iii) variations in our income before income taxes;

(iv) geographic distribution of that income;

(v) mining taxes;

(vi) foreign exchange rates;

(vii) percentage depletion;

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

and (viii) the impact of uncertain tax positions.

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

The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:

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

Three Months Ended March 31, Three Months Ended December 31,

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

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

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

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

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

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

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

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

Net Income (Loss)

Net loss was $24.6 million, or $0.08 per diluted share, compared to net income of $49.1 million, or $0.17 per diluted share.

The increase in net loss was driven by a $62.2 million gain on the sale of the Sterling/Crown exploration properties in fourth quarter of 2022, a 20% decrease in gold ounces sold, lower realized gains from gold hedges and higher income and mining taxes.

This was partially offset by a 4% increase in silver ounces sold, 10% increase in average realized silver prices, lower exploration costs and favorable changes in the fair value of the Company’s equity investments.

Adjusted net loss was $33.1 million, or $0.11 per diluted share, compared to $17.5 million, or $0.06 per diluted share (see “Non-GAAP Financial Performance Measures”).

Three Months Ended March 31, 2023 compared to Three Months Ended March 31, 2022

We sold 70,866 gold ounces and 2.6 million silver ounces, compared to 75,211 gold ounces and 2.5 million silver ounces.

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

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

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

This compares to gold and silver accounting for 69% and 31% of 2021 sales revenue, respectively.

Revenue decreased by $1.1 million, or 1%, as a result of a 6% decrease in gold ounces sold and a 3% decrease in average realized silver prices, partially offset by a 6% increase in silver ounces sold and a 4% increase in average realized gold prices driven by higher realized gains from gold hedges.

The decrease in gold ounces sold was primarily due to lower mill throughput and grades at Palmarejo, lower mill throughput and recoveries at Kensington, and lower grades and lower tons placed during the fourth quarter of 2022 at Wharf, partially offset by higher grades and the timing of recoveries at Rochester.

The increase in silver ounces sold was primarily due to timing of recoveries at Rochester.

Gold and silver represented 68% and 32% of first quarter 2023 sales revenue, respectively, compared to gold and silver representing 69% and 31% of first quarter 2022 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Nine Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2022 September 30, 2021

Three Months Ended Increase (Decrease) Percentage Change

In thousands March 31, 2023 March 31, 2022

Gold sales $ 127,101 $ 129,451 $ (2,350) (1) %

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Costs Applicable to Sales

Costs applicable to sales increased $72.0 million, or 19%, primarily due to higher operating costs partially impacted by inflationary pressures related to consumables, most notably higher diesel prices, employee-related costs, and increased maintenance costs, increased LCM adjustments at Rochester, and the $10.5 million favorable impact from foreign currency hedges in the comparable period of 2021.

Costs applicable to sales increased $19.8 million, or 15%, primarily due to higher operating costs partially impacted by continued inflationary pressures relating to diesel and consumable costs, and increased LCM adjustments at Rochester.

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

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

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

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

Pre-development, reclamation, and other expenses decreased $7.1 million, or 19%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols and lower ongoing carrying costs at Silvertip, partially offset by higher asset retirement accretion.

Amortization decreased $3.7 million primarily due to lower gold ounces sold and longer assumed mine lives at Palmarejo, Rochester, Kensington and Wharf driven by recent successful investments in exploration.

General and administrative expenses increased $1.8 million, or 18%, primarily due to higher non-cash employee incentive and stock-based compensation costs.

Exploration expense decreased $0.8 million, or 14%, driven by reduced drilling activity.

Pre-development, reclamation, and other expenses decreased $0.5 million, or 5%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols and lower operating costs at noncore asset locations, partially offset by higher asset retirement accretion.

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

Nine Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2022 September 30, 2021

Three Months Ended March 31, Increase (Decrease) Percentage Change

In thousands 2023 2022

COVID-19 $ 56 $ 972 $ (916) (94) %

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Other Income and Expenses

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

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

Fair value adjustments, net, remained comparable at a gain of $10.6 million.

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

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

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

Interest expense (net of capitalized interest of $2.1 million) increased to $7.4 million from $4.6 million due to higher interest paid under the RCF attributable to higher average debt levels, and lower capitalized interest.

Other, net decreased to a loss of $1.0 million compared to a gain of $1.7 million, as a result of higher foreign exchange losses and lower gains on the sale of assets.

Income and Mining Taxes

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

Income and mining tax expense of approximately $10.7 million resulted in an effective tax rate of (77.2)% for 2023.

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

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(i) the sale of non-core assets;

(ii) the non-recognition of tax assets;

(iii) variations in our income before income taxes;

(iv) geographic distribution of that income;

(v) mining taxes;

(vi) foreign exchange rates;

(vii) the impact of uncertain tax positions;

and (viii) percentage depletion.

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) mining taxes;

(v) foreign exchange rates;

(vi) the impact of uncertain tax positions;

(vii) percentage depletion;

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

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

The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:

Nine months ended September 30,

Three months ended March 31,

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

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

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

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

The increase in net loss was driven by unfavorable changes in the fair value of the Company’s equity investments, a realized loss of $17.7 million in connection with the sale of Victoria Gold Common Shares, higher operating costs, including increased LCM adjustments at Rochester, a 8% and 3% decrease in gold and silver ounces sold and an 14% decrease in average realized silver prices, partially offset by a 4% increase in average realized gold prices, a $9.2 million loss on debt extinguishment and a VAT write-down of $26.0 million in 2021, and lower income and mining taxes.

Adjusted net loss was $71.6 million, or $0.26 per diluted share, compared to adjusted net income of $10.5 million, or $0.04 per diluted share (see “Non-GAAP Financial Performance Measures”).

2022 Guidance

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

2022 Production Guidance

Palmarejo 100,000 - 110,000 6,000 - 7,000

Rochester 35,000 - 43,000 3,000 - 4,000

Kensington 110,000 - 120,000 —

Wharf 70,000 - 80,000 —

Total 315,000 - 353,000 9,000 - 11,000

2022 Costs Applicable to Sales Guidance

($/oz) ($/oz)

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

Rochester (co-product) $1,650 - $1,850 $20.00 - $26.00

Kensington $1,300 - $1,400 —

Wharf (by-product) $1,250 - $1,350 —

2022 Capital, Exploration and G&A Guidance

Capital Expenditures, Sustaining $110 - $135

Capital Expenditures, Development $220 - $260

Exploration, Expensed $25 - $30

Exploration, Capitalized $22 - $27

General & Administrative Expenses $42 - $46

The Company’s guidance figures assume estimated prices of $1,800/oz gold and $22.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

Guidance figures exclude the impact of any metal sales or foreign exchange hedges.

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

Net Income (Loss)

Net loss was $24.6 million, or $0.08 per diluted share, compared to net income of $7.7 million, or $0.03 per diluted share.

The increase in net loss was driven by a 6% decrease in gold ounces sold, 3% decrease in average realized silver prices, higher operating costs, including increased LCM adjustments at Rochester, higher interest expense and income and mining taxes.

This was partially offset by a 6% increase in silver ounces sold, 4% increase in average realized gold prices and lower exploration costs.

Adjusted net loss was $33.1 million, or $0.11 per diluted share, compared to $13.8 million, or $0.05 per diluted share (see “Non-GAAP Financial Performance Measures”).

Results of Operations

Three Months Ended Nine Months Ended

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

Three Months Ended

March 31, 2023 December 31, 2022 March 31, 2022

Tons milled 533,606 554,247 565,211

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(1) See Non-GAAP Financial Performance Measures.

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

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

Three Months Ended March 31, 2023 compared to Three Months Ended December 31, 2022

Gold production decreased 3% and silver production increased 18% a result of 2% and 27% higher gold and silver grades, partially offset by 4% lower mill throughput and lower recoveries.

Metal sales were $82.3 million, or 45% of Coeur’s metal sales, compared with $69.6 million, or 33% of Coeur’s metal sales.

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

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

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

Capital expenditures remained comparable at $10.8 million.

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

Gold production was in-line with the prior year as a result of higher mill throughput, partially offset by lower gold grade and recoveries.

Silver production increased 5% as a result of higher mill throughput and recoveries, partially offset by lower silver grade.

Revenue increased by $12.7 million or 18%, of which $8.2 million was due to higher volume of gold and silver production and $4.5 million was due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 9% and 1%, respectively, due to the mix of gold and silver sales and lower consumable costs, partially offset by higher employee-related costs.

Amortization increased to $8.7 million due to higher sales, partially offset by longer assumed mine life.

Capital expenditures increased to $10.2 million from $8.1 million due to higher expenditures related to the open pit backfill project and mining equipment purchases.

Three Months Ended March 31, 2023 compared to Three Months Ended March 31, 2022

Gold and silver production decreased 13% and 3%, respectively as a result of 6% lower mill throughput, 7% lower gold grades, and lower recoveries, partially offset by 4% higher silver grades.

Metal sales were $82.3 million, or 45% of Coeur’s metal sales, compared with $83.1 million, or 44% of Coeur’s metal sales.

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

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

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

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

Three Months Ended Nine Months Ended

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

Revenue decreased by $0.8 million or 1%, of which $3.6 million was due to a lower volume of gold and silver production, partially offset by an increase of $2.8 million due to higher average realized gold prices.

Costs applicable to sales per gold and silver ounce increased 27% and 12%, respectively, due to the mix of gold and silver sales, lower production, higher employee-related and consumable costs primarily due to inflationary pressures.

Amortization decreased to $8.7 million due to lower sales and longer assumed mine life.

Capital expenditures decreased to $10.2 million from $13.6 million due to lower infill drilling activities.

Three Months Ended

March 31, 2023 December 31, 2022 March 31, 2022

Tons placed (1)

2,456,586 2,754,118 4,377,873

Average gold grade (oz/t) 0.003 0.003 0.003

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$ 29.51 $ 21.75 $ 29.34

(1) During the three months ended, March 31, 2023, 1,405,499 and 1,051,087 tons were placed on Stage IV and Stage VI leach pads, respectively.

During the three months ended, December 31, 2022, 2,754,118 and 0 tons were placed on Stage IV and Stage VI leach pads, respectively.

During the three months ended, March 31, 2022, 4,101,586 and 276,287 tons were placed on Stage IV and Stage VI leach pads, respectively.

(2) See Non-GAAP Financial Performance Measures.

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

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

Three Months Ended March 31, 2023 compared to Three Months Ended December 31, 2022

Gold production decreased 30% and silver production decreased 22%, as a result of lower tons placed, lower gold and silver grades and timing of recoveries primarily due to Rochester preparing to move away from the legacy leach pad to the new Stage VI leach pad associated with the Rochester expansion.

Approximately 43% of the tons placed in the first quarter of 2023 were placed onto the new Stage VI leach pad, which is expected to begin production in the third quarter of 2023.

Metal sales were $33.9 million, or 18% of Coeur’s metal sales, compared with $42.6 million, or 20% of Coeur’s metal sales.

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

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

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

Capital expenditures increased to $74.0 million from $47.0 million due to payments related to the POA 11 expansion project.

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

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

Revenue decreased by $8.7 million, or 20%, of which $11.1 million was due to a lower volume of gold and silver production, partially offset by an increase of $2.4 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 22% and 36%, respectively, due to the mix of gold and silver sales and lower recoverable gold and silver placed and a higher LCM adjustment of $13.1 million compared to $8.0 million in the prior period.

Amortization decreased to $5.2 million due to lower gold and silver ounces sold.

Capital expenditures decreased to $52.0 million from $92.3 million due to timing of payments related to the Rochester expansion project.

Three Months Ended March 31, 2023 compared to Three Months Ended March 31, 2022

Gold production increased 34% and silver production increased 16%, primarily due to higher gold grades and the timing of recoveries.

Metal sales were $33.9 million, or 18% of Coeur’s metal sales, compared with $26.4 million, or 14% of Coeur’s metal sales.

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

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

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

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

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

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

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

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

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

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

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

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

Three Months Ended Nine Months Ended

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

Revenue increased by $7.5 million, or 29%, of which $7.7 million was due to a higher volume of gold and silver production, partially offset by a decrease of $0.2 million due to lower average realized silver prices.

Costs applicable to sales per gold and silver ounce increased 6% and 1%, respectively, due to the mix of gold and silver sales and higher LCM adjustments of $13.1 million compared to $7.6 million in the prior period, driven by higher employee-related, maintenance, and consumable costs primarily due to inflationary pressures.

Amortization increased to $5.2 million due to higher equipment depreciation from recent equipment purchases.

Capital expenditures increased to $52.0 million from $33.1 million due to timing of payments related to the Rochester expansion project.

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 impacts 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 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.

Three Months Ended

March 31, 2023 December 31, 2022 March 31, 2022

Tons milled 153,337 183,410 165,968

6 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

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

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

Three Months Ended March 31, 2023 compared to Three Months Ended December 31, 2022

Gold production decreased 33% as a result of 17% lower grades, 16% lower mill throughput primarily due to challenges with mine sequencing and stope extraction as well as lower grades.

Metal sales were $40.2 million, or 21% of Coeur’s metal sales, compared to $58.8 million, or 28% of Coeur’s metal sales.

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

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

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

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

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

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

Revenue decreased by $18.6 million, or 32%, of which $19.1 million resulted from a lower volume of gold production, partially offset by an increase of $0.5 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 41% due to lower production.

Amortization decreased to $5.8 million primarily due to lower ounces sold and longer assumed mine life.

Capital expenditures increased to $10.7 million from $7.7 million due to higher infill drilling and underground development.

Three Months Ended March 31, 2023 compared to Three Months Ended March 31, 2022

Gold production decreased 10% as a result of 8% lower throughput primarily due to challenges with mine sequencing and stope extraction as well as lower recoveries.

Metal sales were $40.2 million, or 21% of Coeur’s metal sales, compared to $44.3 million, or 24% of Coeur’s metal sales.

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

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

Amortization decreased to $28.4 million primarily due to lower ounces sold.

Revenue decreased by $4.1 million, or 9%, of which $3.7 million resulted from a lower volume of gold production and $0.4 million was due to lower average realized gold prices.

Costs applicable to sales per gold ounce increased 11% due to lower production.

Amortization decreased to $5.8 million primarily due to lower ounces sold and longer assumed mine life.

Capital expenditures increased to $10.7 million from $7.9 million due to higher infill drilling and underground development.

Three Months Ended Nine Months Ended

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

Three Months Ended

March 31, 2023 December 31, 2022 March 31, 2022

Tons placed 1,156,794 975,994 1,127,569

7 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

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

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

Three Months Ended March 31, 2023 compared to Three Months Ended December 31, 2022

Gold production decreased 22% driven by lower grades and lower tons placed in 2022.

Metal sales were $30.9 million, or 16% of Coeur’s metal sales, compared to $39.1 million, or 19% of Coeur’s metal sales.

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

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

Amortization remained comparable at $2.2 million.

Revenue decreased by $8.2 million, or 21%, of which $9.1 million was due to a lower gold production, partially offset by an increase of $0.9 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 5% due to lower production partially offset by lower operating costs.

Amortization decreased to $1.4 million due to lower ounces sold.

Capital expenditures were $0.1 million.

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

Gold production decreased 16% driven by lower grade.

Three Months Ended March 31, 2023 compared to Three Months Ended March 31, 2022

Gold production decreased 13% driven by lower grades and lower tons placed in 2022.

Metal sales were $30.9 million, or 16% of Coeur’s metal sales, compared to $34.7 million, or 18% of Coeur’s metal sales.

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

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

Revenue decreased by $3.8 million, or 11%, of which $4.8 million was due to a lower volume of gold production, partially offset by an increase of $1.0 million due to higher average realized gold prices.

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

Amortization decreased to $1.4 million due to lower ounces sold.

Capital expenditures were $0.1 million.

Nine Months Ended September 30, 2022

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

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

Coeur continues to advance study work to assess the economics of a potential future expansion of its high-grade Silvertip silver-zinc-lead development project in British Columbia, Canada.

The Company’s objective remains to complete an evaluation by year-end of higher throughput scenarios to enhance the project’s economics and to take advantage of Silvertip’s expanding, high-grade resource base.

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

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

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

Three Months Ended March 31, 2023

Ongoing carrying costs at Silvertip totaled $6.2 million in the first three months of 2023 and in the prior year.

Capital expenditures in the first three months of 2023 totaled $0.7 million compared to $11.9 million in the prior year due to planned reduction in capital development expenditures.

Since acquisition, exploration at Silvertip has been consistently successful, with measured and indicated resource tonnage increasing from approximately 2.6 million tons to 7.1 million tons as of December 31, 2017 and 2022, respectively.

Multiple new zones have been discovered, providing a clear path to potentially significant resource growth for the foreseeable future.

In addition, the full geochemical and metal zonation of the deposit will be studied including the critical minerals indium, germanium and gallium that are present in the orebody.

The Company anticipates a slower overall timeline to advance the Silvertip project, with the primary focus on growth and understanding of the overall deposit.

Consistent with Silvertip’s status as a long-term exploration project, the Company has reclassified its mineral reserves to measured and indicated resources as of year-end 2022.

Coeur plans to focus on compiling, analyzing and interpreting historical data during the first half of the year to increase the understanding of the geological context and mineralization system.

Significant work on logging, data collection, analysis and interpretation is ongoing as part of this effort.

A new detailed geological model will be compiled to support year-end reserve and resource calculations at the end of 2023.

Liquidity and Capital Resources

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

Future borrowing may be subject to certain financial covenants.

Cash and cash equivalents increased $18.7 million in the nine months ended September 30, 2022, due to net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock, net proceeds of $15.3 million received from the sale of the La Preciosa project, and net proceeds of $40.5 million received from the sale of the Victoria Gold Common Shares, partially offset by a 4% and 10% decrease in gold and silver ounces sold, respectively, a 16% decrease in average realized silver prices, higher operating costs and higher capital expenditures related to POA 11 at Rochester.

At March 31, 2023, the Company had $68.7 million of cash, cash equivalents and restricted cash and $300.5 million available under the RCF.

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

Cash and cash equivalents increased $5.5 million in the three months ended March 31, 2023, due to net proceeds of $98.4 million from the sale of 32.9 million shares of its common stock in the March 2023 Equity Offering, $39.8 million received from the sale of the remaining 6.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”), $5.0 million received from the Avino note receivable, a 10% increase in average realized silver prices and 4% increase in silver ounces sold, partially offset by a 20% decrease in gold ounces sold, and $74.0 million of capital expenditures primarily related to the Rochester expansion project and higher costs at our operations due to continued inflationary pressures.

In 2022, the Company entered into two amendments to the RCF to, among other things, increase the maximum principal amount of the RCF by $90.0 million in incremental loans and commitments to an aggregate of $390.0 million and to modify the financial covenants to provide greater flexibility under the consolidated net leverage ratio requirement through the December 31, 2023 test date.

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

At March 31, 2023, the Company had $60.0 million drawn, $29.5 million in outstanding letters of credit and $300.5 million available under the RCF.

On January 17, 2023, the Company completed the sale of its remaining 6.0 million Victoria Gold Common Shares at a price of $6.70 per Victoria Gold Common Share, for net proceeds of $39.8 million.

At March 31, 2023, the Company held $14.9 million of equity securities.

In March 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 Company sold a total of 32,861,580 shares of 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.

On May 2, 2022, the Company entered into an amendment (the “Amendment”) to the RCF to, among other things, increase the maximum principal amount of the RCF by $90.0 million in incremental loans and commitments to an aggregate of $390.0 million.

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

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

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

The Company also holds $45.5 million of equity securities including a 9.4% interest in Victoria Gold Corporation (“Victoria Gold”).

On June 28, 2022, the Company entered into an agreement to sell 5,000,000

shares of common stock of Victoria Gold (“Victoria Gold Common Shares”) at a price of $8.34 per Victoria Gold Common Share, which settled on July 5, 2022 for net proceeds of $40.5 million.

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

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

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

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

The transaction was consummated on November 4, 2022.

The Company had outstanding forward contracts on 167,000 ounces of gold at September 30, 2022 that settle monthly through December 2023.

The Company is targeting to hedge up to 70% of expected gold production in 2022, 50% of expected gold production for the first half of 2023 and 25% of expected gold production for the second half of 2023 in order to protect cash flow during a period of elevated capital expenditures, and may in the future layer on additional hedges as circumstances warrant.

The weighted average fixed price on the forward contracts is $1,986 per ounce of gold.

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

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

We also have additional potential sources of funding including proceeds from potential asset sales, and the monetization of our equity investments, including our remaining common shares of Victoria Gold.

Our longer-term plans contemplate the expansion and restart of Silvertip, as well as the continued exploration and potential development of our other projects, such as the Lincoln Hill area adjacent to Rochester.

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

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

The Company had outstanding forward contracts on 157,998 ounces of gold and 2,400,000 ounces of silver at March 31, 2023 that settle monthly through December 2023.

The Company is targeting to hedge up to 70% of expected gold production and 50% of expected silver production for 2023 in order to protect cash flow during a period of elevated capital expenditures and may in the future layer on additional hedges as circumstances warrant.

In April and May 2023, the Company added 1.3 million ounces of silver forward contracts that settle monthly through December 2023.

Taking into account the additional silver hedges added in April and May 2023, the weighted average fixed price on the forward contracts is $1,968 per ounce of gold and $25.04 per ounce of silver.

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

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

Our longer-term plans contemplate the expansion and restart of Silvertip, as well as the continued exploration to extend mine lives at all of our operating sites.

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

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.

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.

We also have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other purchase obligations and commitments for purchases of goods and services.

2 unchanged sentences

Cash Provided by (Used in) Operating Activities

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

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

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

Adjusted EBITDA for the nine months ended September 30, 2022 was $103.2 million, compared to $167.4 million for the nine months ended September 30, 2021 (see “Non-GAAP Financial Performance Measures”).

Net cash provided by (used in) operating activities was impacted by the following key factors for the applicable periods:

Three Months Ended Nine Months Ended

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

Net cash used in operating activities for the three months ended March 31, 2023 was $35.0 million, compared to net cash provided by operating activities of $28.5 million for the three months ended December 31, 2022 and net cash used in operating activities of $6.4 million for three months ended March 31, 2022.

Adjusted EBITDA for the three months ended March 31, 2023 was $25.1 million, compared to $35.8 million for the three months ended December 31, 2022 and $41.5 million for the three months ended March 31, 2022 (see “Non-GAAP Financial Performance Measures”).

Net cash provided by operating activities was impacted by the following key factors for the applicable periods:

Three Months Ended

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

Cash flow before changes in operating assets and liabilities $ 6,223 $ 19,638 $ 23,779

5 unchanged sentences

Cash provided by (used in) operating activities $ (35,003) $ 28,516 $ (6,427)

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

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

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

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

Cash Used in Investing Activities

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

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

The Company incurred capital expenditures of $96.6 million in the three months ended September 30, 2022 compared with $73.2 million in the three months ended June 30, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the nine months ended September 30, 2022 was $182.9 million compared to $204.4 million in the nine months ended September 30, 2021.

Cash used in investing activities decreased primarily due to the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in the first quarter of 2022 and the receipt of net proceeds of $40.5 million from the sale of the Victoria Gold Common Shares, partially offset by an increase in capital expenditures.

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

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

Capital expenditures in the nine months ended September 30, 2021 were primarily related to POA 11 construction activities at Rochester, potential expansion expenditures at Silvertip and underground development at Palmarejo and Kensington.

The Company is experiencing inflationary pressures, specifically with respect to building materials and fuel as well as overall tightness in the construction market related to capital projects, most notably the POA 11 project at Rochester, and to operating costs company-wide.

Cash Provided by Financing Activities

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

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

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

During the nine months ended September 30, 2022, the Company drew $135.0 million, net, from the RCF, and received net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock in the Equity Offering.

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

Net cash provided by operating activities decreased $63.5 million for the three months ended March 31, 2023 compared to the three months ended December 31, 2022, primarily as a result of 20% decrease gold ounces sold, receipt of

$25.0 million of prepaid revenue in the fourth quarter of 2022, the timing of interest payments, and higher mining and income taxes at Palmarejo, partially offset by a 4% increase in silver ounces sold, 10% increase in average realized silver prices, and lower exploration costs.

Revenue for the three months ended March 31, 2023 compared to the three months ended December 31, 2022 decreased by $22.8 million, of which $28.6 million was due to the lower volume of gold sales, partially offset by $5.8 million as the result of higher average realized silver prices.

Net cash used in operating activities increased $28.6 million for the three months ended March 31, 2023 compared to the three months ended March 31, 2022, primarily due to a 6% decrease in gold ounces sold and a 3% decrease in average realized silver prices, timing of VAT collections at Palmarejo in 2022, receipt of $10.0 million of prepaid revenue in the first quarter of 2022 and higher operating costs, partially offset by a 6% increase in silver ounces sold, 4% increase in average realized gold prices, the favorable impact of realized gains from gold and silver hedges, and lower exploration costs.

Revenue for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 decreased by $1.1 million, of which $4.6 million was due to a lower volume of gold sales, partially offset by $3.5 million as the result of higher average realized gold prices.

Cash Provided by (Used in) Investing Activities

Net cash used in investing activities in the three months ended March 31, 2023 was $29.3 million compared to net cash provided by investing activities of $36.7 million in the three months ended December 31, 2022.

Cash provided by investing activities decreased primarily due to receipt of net proceeds of $150.2 million from the sale of the Sterling/Crown exploration properties in the fourth quarter of 2022, partially offset by net proceeds of $39.8 million received from the sale of its remaining Victoria Gold Common Shares, $5.0 million received from the collection of amounts due under the promissory note issued in connection with the sale of the La Preciosa project, and decrease in capital expenditures due to the timing of payments related to POA 11 construction activities at Rochester.

The Company incurred capital expenditures of $74.0 million in the three months ended March 31, 2023 compared with $113.1 million in the three months ended December 31, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the three months ended March 31, 2023 was $29.3 million compared to $54.1 million in the three months ended March 31, 2022.

Cash used in investing activities decreased primarily due to net proceeds of $39.8 million received from the sale of its remaining Victoria Gold Common Shares, and $5.0 million received from the sale of the La Preciosa project, partially offset by an increase in capital expenditures.

The Company incurred capital expenditures of $74.0 million in the three months ended March 31, 2023 compared with $69.5 million in the three months ended March 31, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Cash Provided by (Used in) Financing Activities

Net cash provided by financing activities in the three months ended March 31, 2023 was $69.4 million compared to net cash used in financial activities of $79.2 million in the three months ended December 31, 2022.

During the three months ended March 31, 2023, the Company repaid $20.0 million, net, under the RCF and received net proceeds of $98.4 million from the sale of 32.9 million shares of its common stock in the March 2023 Equity Offering.

During the three months ended December 31, 2022, the Company received net proceeds of $49.2 million the sale of 14.8 million shares of its common stock in the December 2022 Equity Offering, partially offset by the net repayment of $120.0 million under the RCF.

Net cash provided by financing activities in the three months ended March 31, 2023 was $69.4 million compared to $76.7 million in the three months ended March 31, 2022.

During the three months ended March 31, 2022, the Company received net proceeds of $98.4 million from the sale of 22.1 million shares of its common stock in the March 2022 Equity Offering, partially offset by the net repayment of $10.0 million under the RCF.

Critical Accounting Policies and Accounting Developments

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

Three Months Ended Nine Months Ended

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

Three Months Ended

In thousands except per share amounts March 31, 2023 December 31, 2022 March 31, 2022

Net income (loss) $ (24,586) $ 49,089 $ 7,682

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(Gain) loss on sale of assets and securities 9 (62,064) (1,831)

VAT write-off — — 25,982

Loss on debt extinguishment — — — 9,172

Silvertip inventory write-down — — 271

RMC bankruptcy distribution — (1,651) —

COVID-19 costs 56 155 972

Interest income on notes receivables (181) (179) (360) —

Other adjustments 70 782 —

Tax effect of adjustments (1)

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Adjusted net income (loss) $ (33,058) $ (17,451) $ (13,782)

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

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

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

For the three months ended September 30, 2021, tax effect of adjustments of $1.5 million (2%) is primarily related to the to the fair value adjustments on the Company’s equity investments.

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

For the nine months ended September 30, 2021, tax effect of adjustments of $0.6 million (-2%) are primarily related to the fair value adjustments on the Company’s equity investments.

Adjusted net income (loss) per share, Basic $ (0.11) $ (0.06) $ (0.05)

Adjusted net income (loss) per share, Diluted $ (0.11) $ (0.06) $ (0.05)

(1) For the three months ended March 31, 2023, tax effect of adjustments of $37 (0.3%) is primarily related to the fair value adjustments on the Company’s equity investments and LCM adjustment recorded at Rochester.

For the three months ended December 31, 2022, tax effect of adjustments of $5.6 million (9%) is primarily related to the fair value adjustments on the Company’s equity investments and the derecognition of deferred tax liabilities related to the sale of La Preciosa and the Sterling /Crown exploration properties .

For the three months ended March 31, 2022, tax effect of adjustments of $11.0 million (96%) is primarily related to the derecognition of deferred tax liabilities related to the sale of Proyectos Mineros La Preciosa, S.A.

EBITDA and Adjusted EBITDA

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

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

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

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

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

Three Months Ended Nine Months Ended

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

Three Months Ended

In thousands except per share amounts March 31, 2023 December 31, 2022 March 31, 2022

Net income (loss) $ (24,586) $ 49,089 $ 7,682

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(Gain) loss on sale of assets and securities 9 (62,064) (1,831)

VAT write-off — — 25,982

Loss on debt extinguishment — — — 9,172

Silvertip inventory write-down — — 271

RMC bankruptcy distribution — (1,651) —

COVID-19 costs 56 155 972

Interest income on notes receivables (181) (179) (360) —

Other adjustments 70 782 —

Adjusted EBITDA $ 25,127 $ 35,799 $ 41,527

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

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

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

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

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

Free Cash Flow

Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations.

Free Cash Flow is Cash Provided By (used in) Operating Activities less Capital expenditures as presented on the Consolidated Statements of Cash Flows.

Free Cash Flow is Cash Provided By (used in) Operating Activities less Capital expenditures as presented on the Condensed Consolidated Statements of Cash Flows.

The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors.

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The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow.

Three Months Ended Nine Months Ended

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

Three Months Ended

(Dollars in thousands) March 31, 2023 December 31, 2022 March 31, 2022

Cash flow from operations $ (35,003) $ 28,516 $ (6,427)

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The following table sets forth a reconciliation of Operating Cash Flow Before Changes in Working Capital, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Operating Cash Flow Before Changes in Working Capital.

Three Months Ended Nine Months Ended

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

Three Months Ended

(Dollars in thousands) March 31, 2023 December 31, 2022 March 31, 2022

Cash provided by (used in) operating activities $ (35,003) $ 28,516 $ (6,427)

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Management uses CAS to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation.

We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold, silver, zinc and lead, assessing our operating performance and ability to generate free cash flow from operations and sustaining production.

We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold and silver, assessing our operating performance and ability to generate free cash flow from operations and sustaining production.

These measures may not be indicative of operating profit or cash flow from operations as determined under GAAP.

Management believes that allocating CAS to gold, silver, zinc and lead based on gold, silver, zinc and lead metal sales relative to total metal sales best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company.

Management believes that allocating CAS to gold and silver based on gold and silver metal sales relative to total metal sales best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company.

Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.

Three Months Ended September 30, 2022

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

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

GAAP) $ 51,271 $ 57,681 $ 50,658 $ 31,078 $ 1,260 $ 191,948

Amortization (8,027) (6,921) (10,369) (2,191) (1,260) (28,768)

Costs applicable to sales $ 43,244 $ 50,760 $ 40,289 $ 28,887 $ — $ 163,180

Gold ounces 24,378 8,725 27,609 21,070 81,782

Silver ounces 1,554,288 733,383 — 7,931 — 2,295,602

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

Gold ($/oz) $ 958 $ 3,142 $ 1,456 $ 1,364

Silver ($/oz) $ 12.80 $ 31.84 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Three Months Ended June 30, 2022

Three Months Ended March 31, 2023

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

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Silver ounces 1,795,159 769,804 — 23,956 — 2,588,919

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

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Silver ($/oz) $ 14.00 $ 29.51 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Nine Months Ended September 30, 2022

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

Three Months Ended December 31, 2022

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

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

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Silver ounces 1,490,443 974,810 — 17,387 — 2,482,640

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

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Silver ($/oz) $ 14.20 $ 21.75 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

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

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Silver ounces 1,796,028 638,116 — 16,138 — 2,450,282

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

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Silver ($/oz) $ 12.51 $ 29.34 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Reconciliation of Costs Applicable to Sales for 2022 Guidance

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

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

GAAP) $ 219,862 $ 165,031 $ 191,055 $ 109,179

Amortization (35,687) (22,218) (39,051) (7,811)

Costs applicable to sales $ 184,175 $ 142,813 $ 152,004 $ 101,368

By-product credit — — — (745)

Adjusted costs applicable to sales $ 184,175 $ 142,813 $ 152,004 $ 100,623

Gold ounces 107,034 37,072 113,890 78,757

Silver ounces 6,831,642 3,257,498 32,199

Revenue Split

Gold 51% 47% 100% 100%

Silver 49% 53%

Adjusted costs applicable to sales

Gold ($/oz) $825 - $925 $1,650 - $1,850 $1,300 - $1,400 $1,250 - $1,350

Silver ($/oz) $12.75 - $13.75 $20.00 - $26.00

Cautionary Statement Concerning Forward-Looking Statements

This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold and silver mining business, including statements regarding operations at the Company’s properties, exploration and development efforts, strategies, expectations regarding the Rochester POA 11 expansion project, the Silvertip mine's potential expansion and restart, including timing thereof, inflation, expectations regarding the consideration received from the sale of the La Preciosa and Sterling/Crown projects, hedging strategies, realization of deferred tax assets, expectations about the recovery of VAT in Mexico, timing of completion of obligations under the Amended Sales Contract at Kensington, liquidity management, financing plans, risk management strategies, capital allocation and anticipated production, costs, expenses, and cash flow.

This Report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold and silver mining business, including statements regarding operations and activities at the Company’s properties, exploration and development efforts, mine lives, strategies, expectations regarding the Rochester POA 11 expansion project (including future LCM adjustments), the Silvertip mine's potential expansion and restart, including timing thereof, inflation, hedging strategies, realization of deferred tax assets, expectations about the recovery of unduly paid VAT in Mexico, timing of completion of obligations under the Amended Sales Contract at Kensington, liquidity management, financing plans, risk management strategies, capital allocation and anticipated production, costs, expenses, and cash flow.

Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words.

Actual results could differ materially from those projected in the forward-looking statements.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in “Risk Factors” section of the 2021 10-K, and the risks set forth in this MD&A and Item 3 of this report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to workforce, equipment and materials availability, inflationary pressures, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in “Risk Factors” section of the 2022 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to workforce, equipment and materials availability, inflationary pressures, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

Readers are cautioned not to put undue reliance on forward-looking statements.

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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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis