What changed in this filing

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Item 1. Financial Statements

2023-11-08 compared with 2023-08-09 · 142 added, 110 removed, 721 unchanged (26% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

ASSETS Notes In thousands, except share data

31 unchanged sentences

Common stock, par value $ 0.01 per share;

authorized 600,000,000 shares, 350,166,722 issued and outstanding at June 30, 2023 and 295,697,624 at December 31, 2022

authorized 600,000,000 shares, 382,693,309 issued and outstanding at September 30, 2023 and 295,697,624 at December 31, 2022

Additional paid-in capital 4,128,553 3,891,265

7 unchanged sentences

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

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

32 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

59 unchanged sentences

Balances at June 30, 2023 350,167 $ 3,502 $ 4,050,460 $ ( 3,074,547 ) $ 9,347 $ 988,762

Net income (loss) — — — ( 21,109 ) ( 21,109 )

Other comprehensive income (loss) — — — 2,307 2,307

Common stock issued under "at the market"

stock offering 21,700 217 48,920 — — 49,137

Common stock issued for the extinguishment of Senior Notes 7,619 76 18,228 — — 18,304

Common stock issued under Private Placement Offering 3,000 30 8,332 — 8,362

Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 207 2 2,613 — — 2,615

Balances at September 30, 2023 382,693 $ 3,827 $ 4,128,553 $ ( 3,095,656 ) $ 11,654 $ 1,048,378

In thousands Common

16 unchanged sentences

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

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

21 unchanged sentences

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU No.

2020-04, “Reference Rate Reform (Topic 848)” , which provides optional guidance for a limited period of time to ease the potential burden on accounting for contract modifications caused by reference rate reform.

In January 2021, ASU No.

2021-01 was issued which broadened the scope of ASU No.

2020-04 to include certain derivative instruments.

In December 2022, ASU No.

2022-06 was issued which deferred the sunset date of ASU No.

The guidance is effective for all entities as of March 12, 2020 through December 31, 2024.

The guidance may be adopted over time as reference rate reform activities occur and should be applied on a prospective basis.

The Company is in the process of reviewing key contracts to identify any contracts that reference the LIBOR and to implement adequate fallback provisions if not already implemented to mitigate the risks or impacts from the transition.

No material impacts are expected to the consolidated financial statements or disclosures.

In March 2022, the FASB issued ASU 2022-01, “ Derivatives and Hedging (Topic 815):

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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 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):

Except for the Silvertip exploration project, all operating segments are engaged in the discovery, mining,

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Three Months Ended June 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

and production of gold and/or silver.

The Silvertip exploration project is engaged in the discovery of silver, zinc, lead, and other related metals.

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

Three Months Ended September 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 38,994 $ 8,719 $ 46,474 $ 45,316 $ — $ — $ 139,503

21 unchanged sentences

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

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

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

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Notes to Consolidated Financial Statements

Six Months Ended June 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Nine Months Ended September 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 114,897 $ 37,404 $ 111,136 $ 124,522 $ — $ — $ 387,959

21 unchanged sentences

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

Six Months Ended June 30, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total

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

21 unchanged sentences

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

Assets June 30, 2023 December 31, 2022

Assets September 30, 2023 December 31, 2022

Total assets for reportable segments $ 1,935,150 $ 1,669,982

6 unchanged sentences

Geographic Information

Long-Lived Assets June 30, 2023 December 31, 2022

Long-Lived Assets September 30, 2023 December 31, 2022

United States $ 1,149,301 $ 899,960

3 unchanged sentences

Total $ 1,639,248 $ 1,389,755

Revenue Three months ended June 30, Six months ended June 30,

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

2023 2022 2023 2022

4 unchanged sentences

Receivables consist of the following:

In thousands June 30, 2023 December 31, 2022

In thousands September 30, 2023 December 31, 2022

Current receivables:

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

In May 2023, the Company sold the La Preciosa Deferred Consideration (as defined below).

The contingent consideration at June 30, 2023 relates to consideration received from the sale of Sterling and the contingent consideration received from the sale of the La Preciosa Deferred Consideration.

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

The contingent consideration at September 30, 2023 relates to consideration received from the sale of Sterling and the contingent consideration received from the sale of the La Preciosa Deferred Consideration.

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

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

(3) Consists of exploration credit refunds at Silvertip.

Coeur Mining, Inc.

3 unchanged sentences

Inventory consists of the following:

In thousands June 30, 2023 December 31, 2022

In thousands September 30, 2023 December 31, 2022

Concentrate $ 1,357 $ 2,869

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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.

At the end of the first and second quarter of 2023, the cost of stockpile, leach pad and metal inventory at Rochester exceeded its net realizable value, which resulted in non-cash write-downs for the three and six months ended June 30, 2023 of $ 2.1 million ($ 1.6 million was recognized in Costs applicable to sales and $ 0.5 million in Amortization ) and $ 16.4 million ($ 14.7 million was recognized in Costs applicable to sales and $ 1.7 million in Amortization ), respectively.

The non-cash write-down in the three months ended June 30, 2023 includes a $ 3.9 million recovery of losses recognized in the prior quarter.

During the first nine months of 2023, the cost of stock pile, leach pad and metal inventory at Rochester exceeded its net realizable value, which resulted in non-cash write down for the three and nine months ended September 30, 2023 of $ 8.9 million ($ 7.7 million was recognized in Costs applicable to sales and $ 1.2 million in Amortization ) and $ 25.3 million ($ 22.4 million was recognized in Costs applicable to sales and $ 2.9 million in Amortization ), respectively.

NOTE 6 – INVESTMENTS

1 unchanged sentence

From time to time, the Company makes strategic investments in equity securities of silver and gold exploration, development and royalty and streaming companies or receives securities as transaction consideration.

At June 30, 2023

At September 30, 2023

In thousands Cost Gross

2 unchanged sentences

Avino Silver & Gold Mines Ltd $ 13,720 $ ( 6,489 ) $ — $ 7,231

Other 2,233 ( 2,230 ) — 3

Equity securities $ 13,720 $ ( 6,489 ) $ — $ 7,231

12 unchanged sentences

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

In January 2023, the Company sold 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.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

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.

In May 2023, the Company sold 3.7 million shares of common stock of Integra Resources Corporation (“Integra Common Shares”) at a price of $ 0.48 per share, for net proceeds of $ 1.8 million.

NOTE 7 – DEBT

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

In thousands Current Non-Current Current Non-Current

5 unchanged sentences

$ 22,127 $ 490,114 $ 24,578 $ 491,355

(1) Net of unamortized debt issuance costs of $ 4.6 million and $ 5.8 million at June 30, 2023 and December 31, 2022, respectively.

(2) Unamortized debt issuance costs of $ 2.8 million and $ 3.6 million at June 30, 2023 and December 31, 2022, respectively, included in Other Non-Current Assets .

(1) Net of unamortized debt issuance costs of $ 4.2 million and $ 5.8 million at September 30, 2023 and December 31, 2022, respectively.

(2) Unamortized debt issuance costs of $ 3.3 million and $ 3.6 million at September 30, 2023 and December 31, 2022, respectively, included in Other Non-Current Assets .

2029 Senior Notes

1 unchanged sentence

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

In the second quarter of 2023, the Company exchanged $ 48.5 million in aggregate principal amount of 2029 Senior Notes plus accrued interest for 13.9 million shares of common stock.

During the three and nine months ended September 30, 2023, the Company exchanged $19.3 million and $ 67.8 million in aggregate principal amount of 2029 Senior Notes plus accrued interest for 7.6 million and 21.6 million shares of common stock, respectively.

Based on the closing price of the Company’s common stock on the date of the exchanges, the exchanges resulted in an aggregate gain of $ 3.7 million on debt extinguishment.

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Revolving Credit Facility

At June 30, 2023, the Company had $ 80.0 million drawn at an interest rate of 8.7 %, $ 29.5 million in outstanding letters of credit and $ 280.5 million available under its $ 390 million revolving credit facility (the “RCF”).

At September 30, 2023, the Company had $ 140.0 million drawn at a weighted-average interest rate of 9.2 %, $ 29.6 million in outstanding letters of credit and $ 220.4 million available under its $ 390 million revolving credit facility (the “RCF”).

Future borrowing may be subject to certain financial covenants.

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

In the six months ended June 30, 2023, the Company entered into a new $ 11.5 million lease financing arrangements for mining equipment at Rochester and Kensington.

In the nine months ended September 30, 2023, the Company entered into new lease financing arrangements for mining equipment at Rochester and Kensington for $ 21.6 million.

The new finance lease arrangements represent non-cash investing activities in the Condensed Consolidated Statement of Cash Flow.

Additionally, Coeur secured a finance lease package for nearly $ 60.0 million in 2021, all of which has been funded as of June 30, 2023.

Additionally, Coeur secured a finance lease package for nearly $ 60.0 million in 2021, all of which has been funded as of September 30, 2023.

This package was earmarked for planned equipment for the Rochester expansion project in 2021, 2022 and 2023 and has an interest rate of 5.2 %.

5 unchanged sentences

Interest Expense

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

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

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

1 unchanged sentence

Accretion 4,153 3,564 12,219 10,482

Additions and changes to estimates ( 2,682 ) — ( 2,682 ) —

Settlements ( 1,415 ) ( 1,507 ) ( 3,952 ) ( 3,975 )

Asset retirement obligation - Ending $ 208,016 $ 186,663 $ 208,016 $ 186,663

The commencement of production from the new leach pad and process plant at Rochester in the third quarter of 2023 resulted in an update to the estimated reclamation and mine closure costs.

The estimated reclamation and mine closure costs was discounted using a credit adjusted, risk-free interest rate of 8.4%.

NOTE 9 - INCOME AND MINING TAXES

The following table summarizes the components of Income and mining tax (expense) benefit for the three and six months ended June 30, 2023 and 2022 by significant jurisdiction:

Three months ended June 30, Six months ended June 30,

The following table summarizes the components of Income and mining tax (expense) benefit for the three and nine months ended September 30, 2023 and 2022 by significant jurisdiction:

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

2023 2022 2023 2022

5 unchanged sentences

$ ( 15,012 ) $ ( 6,097 ) $ ( 55,561 ) $ ( 1,883 ) $ ( 51,436 ) $ ( 26,671 ) $ ( 112,117 ) $ ( 15,079 )

During the second quarter of 2023, the Company reported estimated income and mining tax expense of approximately $ 9.9 million, resulting in an effective tax rate of ( 43.8 )%.

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

During the third quarter of 2023, the Company reported estimated income and mining tax expense of approximately $ 6.1 million, resulting in an effective tax rate of ( 40.6 )%.

This compares to income tax expense of $ 1.9 million for an effective tax rate of ( 3.4 )% during the third quarter of 2022.

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

2 unchanged sentences

(iii) mining taxes;

(iv) the sale of non-core assets;

(v) foreign exchange rate;

(iv) foreign exchange rate;

(v) the sale of non-core assets;

(vi) percentage depletion;

1 unchanged sentence

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

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

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

Conversely, if it is determined

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

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

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

Conversely, if it is determined that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

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

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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 June 30, 2023 and December 31, 2022, the unrecognized tax benefits and accrued income-tax-related interest and penalties were not significant.

At September 30, 2023 and December 31, 2022, the unrecognized tax benefits and accrued income-tax-related interest and penalties were not significant.

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.

2 unchanged sentences

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

Stock-based compensation expense in the three and six months ended June 30, 2023 was $ 2.7 million and $ 5.8 million, respectively, compared to $ 2.3 million and $ 4.6 million in the three and six months ended June 31, 2022.

At June 30, 2023, there was $ 12.4 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.8 years.

The following table summarizes the grants awarded during the six months ended June 30, 2023:

Stock-based compensation expense in the three and nine months ended September 30, 2023 was $ 2.6 million and $ 8.5 million, respectively, compared to $ 2.5 million and $ 7.1 million in the three and nine months ended September 31, 2022.

At September 30, 2023, there was $ 10.5 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, 2023:

Grant date Restricted

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June 19, 2023 57,804 $ 3.11 46,340 $ 3.14

August 18, 2023 436,422 $ 2.53 5,308 $ 3.14

NOTE 11 – FAIR VALUE MEASUREMENTS

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

3 unchanged sentences

Fair value adjustments, net $ ( 2,010 ) $ ( 13,067 ) $ 4,629 $ ( 65,272 )

(1) Includes unrealized losses on held equity securities of $ 3.7 million, and $ 62.8 million for the three months ended June 30, 2023, and 2022, respectively, and unrealized losses of $ 0.5 million and $ 49.1 million for the six months ended June 30, 2023, and 2022, respectively

(1) Includes unrealized losses on held equity securities of $ 2.0 million, and $ 13.1 million for the three months ended September 30, 2023, and 2022, respectively, and unrealized losses of $ 2.3 million and $ 46.5 million for the nine months ended September 30, 2023, and 2022, respectively

Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

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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 June 30, 2023

Fair Value at September 30, 2023

In thousands Total Level 1 Level 2 Level 3

Equity securities including warrants $ 9,240 $ 9,237 $ 3 $ —

Equity securities $ 7,231 $ 7,231 $ — $ —

Provisional metal sales contracts 36 — 36 —

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In thousands Total Level 1 Level 2 Level 3

Equity securities $ 44,152 $ 43,893 $ 259 $ —

Equity securities including warrants $ 44,152 $ 43,893 $ 259 $ —

Provisional metal sales contracts 299 — 299 —

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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 six months ended June 30, 2023.

The fair value of financial assets and liabilities carried at book value in the financial statements at June 30, 2023 and December 31, 2022 is presented in the following table:

June 30, 2023

No assets or liabilities were transferred between fair value levels in the nine months ended September 30, 2023.

The fair value of financial assets and liabilities carried at book value in the financial statements at September 30, 2023 and December 31, 2022 is presented in the following table:

September 30, 2023

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

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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.

In March 2022 the Company completed the sale 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.

2 unchanged sentences

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 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.

These assets were initially measured at fair value at inception and remeasured at fair value on a nonrecurring basis.

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 were 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 model inputs included 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 as Level 3 of the fair value hierarchy.

In May 2023, the Company sold the deferred cash consideration, two royalties, and contingent consideration received in connection with the sale of La Preciosa project (the "La Preciosa Deferred Consideration"), further discussed below, for cash consideration of $ 7.0 million and deferred consideration of $ 1.0 million payable on the first anniversary of initial production from any portion of the La Preciosa project resulting in a loss on the sale of $ 12.3 million, which was recognized in Other, Net in the Condensed Consolidated Statement of Comprehensive Income (Loss).

In May 2023, the Company sold the La Preciosa Deferred Consideration for cash consideration of $ 7.0 million and deferred consideration of $ 1.0 million payable on the first anniversary of initial production from any portion of the La Preciosa project resulting in a loss on the sale of $ 12.3 million, which was recognized in Other, Net in the Condensed Consolidated Statement of Comprehensive Income (Loss).

The deferred cash consideration was measured at a fair value of $ 0.8 million at inception and will be remeasured at fair value on a nonrecurring basis.

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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

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.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

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.

The Company may elect to designate certain derivatives as hedging instruments under U.S.

3 unchanged sentences

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 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 price, 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 June 30, 2023, the Company had the following derivative cash flow hedge instruments that settle as follows:

At September 30, 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

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

As of June 30, 2023, the Company had $ 9.3 million of net after-tax gains in AOCI related to gains from cash flow hedge transactions, of which $ 9.3 million of net after-tax gains is expected to be recognized in its Condensed Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.

As of September 30, 2023, the Company had $ 11.7 million of net after-tax gains in AOCI related to gains from cash flow hedge transactions, of which $ 11.7 million of net after-tax gains 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:

June 30, 2023

September 30, 2023

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

4 unchanged sentences

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 and six months ended June 30, 2023 and 2022, respectively (in thousands).

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 and nine months ended September 30, 2023 and 2022, respectively (in thousands).

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

Three Months Ended June 30, Six Months Ended June 30,

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

2023 2022 2023 2022

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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.

The contracts were net cash settled monthly and, if the price of gold at the time of expiration was between the put and call prices, it 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.

2 unchanged sentences

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 June 30, 2023, the Company had the following derivative instruments that settle as follows:

At September 30, 2023, the Company had the following derivative instruments that settle as follows:

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

3 unchanged sentences

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

June 30, 2023

September 30, 2023

In thousands Prepaid expenses and other Accrued liabilities and other

3 unchanged sentences

Provisional metal sales contracts $ 299 $ 10

The following represent mark-to-market gains (losses) on derivative instruments in the three and six ended June 30, 2023, and 2022, respectively (in thousands):

The following represent mark-to-market gains (losses) on derivative instruments in the three and nine months ended September 30, 2023, and 2022, respectively (in thousands):

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

Three Months Ended June 30, Six Months Ended June 30,

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

Financial statement line Derivative 2023 2022 2023 2022

7 unchanged sentences

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

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

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Other, net consists of the following:

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

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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 six months ended June 30, 2023, there were 2,005,184 and 1,672,213 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, 1,991,864 and 992,382 common stock equivalents were excluded in the diluted earnings per share calculation for the three and six months ended June 30, 2022, respectively.

For the three and nine months ended September 30, 2023, there were 1,090,981 and 1,641,510 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, 3,719,764 and 2,013,571 common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2022, respectively.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

Three months ended June 30, Six months ended June 30,

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

In thousands except per share amounts 2023 2022 2023 2022

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Diluted $ ( 0.06 ) $ ( 0.21 ) $ ( 0.24 ) $ ( 0.47 )

On September 13, 2023, the Company completed a $ 50.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “September 2023 Equity Offering”).

The September 2023 Equity Offering was conducted pursuant to an ATM Equity Offering Sales Agreement, entered into on August 10, 2023 between the Company and BMO Capital Markets Corp., BofA Securities, Inc.

and RBC Capital Markets, LLC as sales agents.

The Company sold a total of 21,699,856 shares of its common stock in the September 2023 Equity Offering at an average price of $ 2.30 per share, raising net proceeds (after sales commissions) of $ 49.3 million.

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

On June 21, 2023, the Company entered into subscription agreements (the “Subscription Agreements”) with certain Canadian accredited investors (the “Investors”) for a private placement offering (the “Private Placement Offering”) of an aggregate of 5,276,154 shares of common stock, par value $ 0.01 per share, to be issued as “flow-through shares,” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), which closed on June 27, 2023.

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 15 - SUPPLEMENTAL GUARANTOR INFORMATION

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There are no restrictions on the ability of Coeur to obtain funds from the Subsidiary Guarantors by dividend or loan.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

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Guarantor Subsidiaries

In thousands June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022

In thousands September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022

Current assets $ 32,341 $ 73,692 $ 176,842 $ 137,432

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SUMMARIZED STATEMENTS OF INCOME

SIX MONTHS ENDED JUNE 30, 2023

NINE MONTHS ENDED SEPTEMBER 30, 2023

In thousands Coeur Mining, Inc.

5 unchanged sentences

Mexico Litigation Matters

As of June 30, 2023, $ 30.9 million in principal is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.

As of September 30, 2023, $ 29.4 million in principal is due from the Mexican government associated with amounts that were paid as VAT 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.

Coeur Mexicana applied for and initially received VAT refunds associated with the royalty payments in the normal course;

however, in 2011 the Mexican tax authorities began denying Coeur Mexicana’s VAT refunds based on the argument that VAT was not legally due on the royalty payments.

Accordingly, Coeur Mexicana began to request refunds of the VAT as undue payments, which the Mexican tax authorities also denied.

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).

Coeur Mexicana applied for and initially received refunds in the normal course of these amounts paid as VAT associated with the royalty payments;

however, in 2011 the Mexican tax authorities began denying refunds of these amounts based on the argument that VAT was not legally due on the royalty payments.

Accordingly, Coeur Mexicana began to request refunds of these amounts paid as VAT as undue payments, which the Mexican tax authorities also denied.

The Company has since been engaged in ongoing efforts to recover these amounts from the Mexican government (including through litigation and potential arbitration as well as refiling refund requests as undue payments rather than refunds of VAT that was due).

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.

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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.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

In addition, ongoing litigation with the Mexican government associated with enforcement of water rights in Mexico, if unsuccessful, may impact Coeur Mexicana’s ability to access new sources of water to provide sufficient supply for its operations at Palmarejo and, if material, may have a material adverse impact on the Company’s operations and financial results.

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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.

Because there is no minimum obligation

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

associated with the deposit, it is not considered a financing, and each shipment is considered to be a separate performance obligation.

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

The stream 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.

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

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

6 unchanged sentences

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

In June 2023, the Company exercised an option to receive the $ 25.0 million Kensington June 2023 Prepayment.

Additionally, in June 2023, the Company entered into sales and purchase contracts with a metal sales counterparty to allow for the $ 10.0 million Wharf 2023 Prepayment for deliveries of gold concentrate from its Wharf mine and the $ 10.0 million Rochester 2023 Prepayment for deliveries of gold and silver doré from its Rochester mine.

In June 2023, the Company exercised an option to receive a further $ 25.0 million prepayment, a portion of which was recognized in revenue in the third quarter of 2023.

Additionally, in June 2023, the Company entered into sales and purchase contracts with a metal sales counterparty to allow for a $ 10.0 million prepayment for deliveries of gold concentrate from its Wharf mine and a $ 10.0 million prepayment for deliveries of gold and silver doré from its Rochester mine, all of which were recognized as revenue in the third quarter of 2023.

In September 2023, the contracts related to Wharf and Rochester were amended to increase the maximum amount available in prepayments to $ 12.5 million and $ 17.5 million, respectively, which were received.

The metal sales prepayments represent a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold and silver ounce delivered to the customer.

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The following table presents a roll forward of the prepayment contract liability balance:

Three Months Ended June 30, Six Months Ended June 30,

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

In thousands 2023 2022 2023 2022

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Closing Balance $ 44,323 $ 15,373 $ 44,323 $ 15,373

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Rochester Expansion Project Update

Coeur expects to achieve mechanical completion of the crusher corridor in the third quarter, with ramp-up anticipated throughout the second half of 2023 and into early 2024.

The Company also updated its estimate for the expected ultimate cost to complete the expansion, which reflects additional contractor hours required to offset the loss of approximately thirty days due to extreme weather and lower than planned productivity rates driven by a lack of qualified skilled labor.

Together with ongoing inflationary impacts and required construction re-work to address issues from previously completed engineering designs, the Company expects the total cost for the project to be approximately 6 - 9 %, or $ 40 - $ 60 million above the high end of Coeur’s previous guidance range of $ 650 - $ 670 million.

Construction of the new three-stage crushing circuit is now complete and first production from the new leach pad and process plant began in mid-September.

Commissioning of the process plant is complete and commissioning of the new crusher corridor is underway, with ramp-up expected throughout the remainder of 2023 and into the first half of 2024.

Once operating at full capacity, throughput levels are expected to average 32 million tons per year, which is approximately 2.5 times higher than historical levels, making Rochester one of the largest open pit heap leach operations in the world.

The total estimated capital for the project remains at $ 710 - $ 730 million.

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 and silver hedges and other general corporate purposes.

As of June 30, 2023 and December 31, 2022, the Company had surety bonds totaling $ 314.2 million and $ 326.8 million, respectively, in place as financial support for future reclamation and closure costs.

As of September 30, 2023 and December 31, 2022, the Company had surety bonds totaling $ 332.3 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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

instrument 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 June 30, 2023 December 31, 2022

In thousands September 30, 2023 December 31, 2022

Accrued salaries and wages $ 28,499 $ 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 Condensed Consolidated Balance Sheets that total the same such amounts shown in the Condensed Consolidated Statements of Cash Flows in the three and six months ended June 30, 2023 and 2022:

In thousands June 30, 2023 June 30, 2022

In thousands September 30, 2023 September 30, 2022

Cash and cash equivalents $ 53,223 $ 75,389

2 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements