What changed in this filing

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Item 2. Properties

2024-02-21 compared with 2023-02-22 · 44 added, 24 removed, 354 unchanged (16% of the section changed)

4 unchanged sentences

The Palmarejo complex, operated by our wholly-owned subsidiary, Coeur Mexicana, S.A.

(“Coeur Mexicana”), consists of (1) the Palmarejo processing facility;

(“Coeur Mexicana”), consists of:

(1) the Palmarejo processing facility;

(2) the Guadalupe underground mine;

18 unchanged sentences

Authorizations are in place that regulate typical life of mine functions, including production facilities and utilities, mining operations, tailings and waste rock storage, exploration, surface disturbance, land use, vegetation and change in soil use, air emissions, water use, and reclamation.

A permit to operate back-up generators during grid power interruptions was recently administratively revoked;

however, we are appealing the revocation and also applying for a new permit.

We have been granted the right to continue operating the back-up generators during the course of the appeal.

Major authorizations were obtained through the completion of several MIAs (Manifestación de Impacto Ambiental), permits associated with forestry vegetation disturbance of change in soil use (Cambio de Uso de Suelo en Terrenos Forestales), and the required authorizations from the National Water Commission (Comisión Nacional del Agua or CONAGUA) for water use, effluent discharge, and to construct facilities in federal watersheds.

Operational standards and best management practices (BMPs) have been established to maintain compliance with applicable regulatory standards and permits.

A portion of the Palmarejo complex is subject to a gold stream agreement with a subsidiary of Franco Nevada Corporation and related property encumbrances

Coeur Mexicana is obligated to sell 50% of Palmarejo gold production (excluding production from certain properties acquired in 2015) to a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) under a gold stream agreement for the lesser of $800 or spot price per ounce.

Coeur Mexicana is subject to other royalty agreements for which there are no mineral resources or mineral reserves associated with them in the current life-of-mine plan.

USA (Nevada) — Rochester

7 unchanged sentences

Ore is mined using conventional open pit methods, with gold and silver recovered by heap leaching of crushed open-pit ore placed on pads located within the Rochester mining area.

Rochester is currently undergoing an expansion under POA 11.

The expansion project includes the construction of a new leach pad, a crushing facility equipped with two high-pressure grinding roll units and a prescreen, a Merrill-Crowe process plant, and related infrastructure to support the extension of Rochester’s mine life and is expected to be completed in mid-2023.

Rochester is currently undergoing commissioning and ramp-up of an expansion under POA 11.

The expansion project included the construction of a new leach pad, a crushing facility equipped with two high-pressure grinding roll units and a prescreen, a Merrill-Crowe process plant, and related infrastructure to support the extension of Rochester’s mine life.

Commissioning and ramp-up are expected to be completed in the first half of 2024.

Near Lovelock, Nevada (West-Central Nevada, USA)

17 unchanged sentences

• A security interest in the Rochester mine has been granted in favor of the lenders under the RCF (as defined below)

• Certain royalty interests have been granted with respect to the Rochester property

• Coeur Rochester is obligated to pay a net smelters return of up to 5% to ASARCO, the prior owner, when the average quarterly market price of silver equals or exceeds $29.79 per ounce indexed for inflation, with the condition that the Rochester mine achieves positive cash flow for the applicable year.

If cash flow is negative in any calendar year, the maximum royalty payable is $250,000.

• Coeur Rochester is party to other royalty agreements for which there are no mineral resources or mineral reserves associated with them in the current life-of-mine plan.

USA (Alaska) — Kensington

26 unchanged sentences

• A security interest in the Kensington mine has been granted in favor of the lenders under the RCF.

• Certain royalty interests have been granted with respect to the Kensington property

• Coeur Alaska is obligated to pay the royalty holder a scaled net smelter return royalty on 1 million troy ounces of gold production from certain deposits, after Coeur Alaska recoups the $32.5 million purchase price, plus construction and development expenditures and certain operating, exploration, and development costs.

The royalty ranges from a rate of 1% at $400/oz gold prices to a maximum of 2.5% rate at gold prices above $475/oz.

• Coeur Alaska is obligated to pay Hyak Mining Company (“Hyak”) annually, during the initial term of the mining lease, an advance minimum royalty of $231,000, which amount is adjusted every three years in accordance with changes in the Consumer Price Index as published by the U.S.

Department of Commerce for all Urban Consumers, City of Anchorage, Alaska.

If production occurs from the leased Hyak premises, a 5% net returns royalty on production as defined by the lease, is due, unless the amount of the net returns royalty is less than the adjusted advance minimum royalty.

USA (South Dakota) — Wharf

1 unchanged sentence

(“Wharf”) and Golden Reward Mining Limited Partnership (“Golden Reward”), is located in the northern Black Hills of western South Dakota, approximately four miles southwest of the city of Lead, South Dakota.

Coordinate for the project centroid are 44°20’03”N Latitude, 103°50’06”W Longitude and the Wharf Mine coordinates are 44°20’39”N Latitude, 103°51’02”W Longitude.

Coordinates for the project centroid are 44°20’03”N Latitude, 103°50’06”W Longitude and the Wharf Mine coordinates are 44°20’39”N Latitude, 103°51’02”W Longitude.

All coordinates are in Universal Transverse Mercator (WSG 84).

16 unchanged sentences

• A security interest in the Wharf mine has been granted in favor of the lenders under the RCF.

• Certain royalty interests have been granted with respect to the Wharf property

MINING PROJECTS

• Wharf is obligated to pay a royalty related to a mineral lease on 34 patented lode claims.

During the term of the mineral lease, the lessors were also entitled to a royalty on production, if any, of 3% of the net smelter returns of all silver and gold ores, together with other ores and minerals.

In addition, there is an advance minimum royalty due the lessors of $5,000 per year unless and until Wharf Resources identifies and publishes a reserve encompassing the leased premises, at which point the advance minimum royalty increases to $25,000 per year.

• Wharf is obligated to pay a sliding scale production royalty of 0%-2% on the gross value of all gold in saleable form to Royal Gold, Inc.

This royalty encumbers most of the lands comprising the Wharf, together with a small portion of the lands encompassing the Golden Reward, and wholly excludes the Precambrian Mineral Estate.

Wharf is obligated to pay a 3% non-participating royalty on gold that is produced from ores mined and delivered to heap leach pads or recovered from tailings.

This royalty encumbers the mineral estate, including the Precambrian Mineral Estate, of much of the lands held by Wharf.

• Wharf is party to other royalty agreements for which there are no mineral resources or mineral reserves associated with them in the current life-of-mine plan

EXPLORATION PROJECTS

Canada (British Columbia) — Silvertip

12 unchanged sentences

ongoing exploration and technical work to evaluate and support a potential expansion and restart

• Certain royalty interests have been granted with respect to the Silvertip property

• Silvertip is obligated to pay a 2.5% net smelter return royalty payable to the royalty holder on all mineral products produced from the Silvertip property, payable quarterly.

• Silvertip is party to an agreement with the Kaska Nation which, among other things, provides for annual payments to the Kaska Nation calculated based on the financial performance of the Silvertip property and the average price of silver for the relevant calendar year.

OTHER PROPERTIES

The Company has interests in several other exploration-stage properties in North America, as well as leased or owned real property for office space.

The Company has leased or owned real property for office space.

OPERATING STATISTICS

6 unchanged sentences

Gold produced (oz.) 84,789 109,061 121,140 93,502 79,768 91,136

2022 2021 2020

Silver produced (oz.) — — 139,287

Zinc produced (lb.) — — 2,459,756

Lead produced (lb.) — — 2,176,847

MINERAL RESERVES AND MINERAL RESOURCES

74 unchanged sentences

Cutoff grades vary between deposits depending upon prevailing economic conditions, mineability of the deposit, by-products, amenability of the mineralized material to silver or gold extraction and type of milling or leaching facilities available.

(2) Assumed metal prices for 2022 Mineral Reserves were $21.00 per ounce of silver, $1,600 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead.

Except for Kensington at $1,700 per ounce of gold.

(2) Assumed metal prices for 2023 Mineral Reserves were $21.00 per ounce of silver, $1,600 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead, except for Kensington at $1,850 per ounce of gold.

(3) The Mineral Reserve estimates are current as of December 31, 2023, are reported using the definitions in Item 1300 of Regulation S-K and were prepared by the Company’s technical staff.

1 unchanged sentence

assumption of conventional longhole underground mining;

reported above a variable gold equivalent cut-off grade that ranges from 2.02–2.07 g/t AuEq and an incremental development cut-off grade of 1.05 g/t AuEq;

reported above a variable gold equivalent cut-off grade that ranges from 2.11–2.97 g/t AuEq and an incremental development cut-off grade ranging from 1.16–1.55 g/t AuEq;

metallurgical recovery assumption of 92.0% for gold and 83.0% for silver;

mining dilution assumes 0.4-1.0 meter of hanging wall waste dilution;

mining dilution assumes 0.4–1.1 meter of hanging/foot wall waste dilution;

mining loss of 15% was applied;

1 unchanged sentence

Excludes the impact of the Franco-Nevada gold stream agreement at Palmarejo in calculation of Mineral Reserves.

No assurances can be given that all mineral reserves will be mined, as mineralized material that may qualify as reserves under applicable standards by virtue of having positive economics may not generate attractive enough returns to be included in our mine plans, due to factors such as the impact of the gold stream at Palmarejo.

As a result, we may elect not to mine portions of the mineralized material reported as reserves.

(5) Mineral Reserve estimates are tabulated within a confining pit design and use the following input parameters:

11 unchanged sentences

gold payability of 97.5%;

mining dilution varies from 15-23%;

mining dilution of 20%;

mining loss of 12% was applied;

variable mining costs that range from US$87.13–90.00/ton mined;

mining costs of US$103.67/ton mined;

process costs of US$55.06/ton processed;

general and administrative costs of US$55.37/ton processed;

Sustaining capital US$4.50/ton processed;

and concentrate refining and shipping costs of US$108.67/oz sold.

68 unchanged sentences

The level of geological uncertainty associated an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability and must have a reasonable expectation that the majority of inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration.

In addition, no assurances can be given that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves or that inferred resources will be upgraded to measured or indicated resources.

(2) Mineral Resource estimates are reported exclusive of mineral reserves, are current as of December 31, 2023, are reported using definitions in Item 1300 of Regulation S-K and were prepared by the Company’s technical staff.

7 unchanged sentences

(5) Mineral Resource estimates use the following key input parameters:

assumption of conventional longhole underground mining;

reported above a variable gold cut-off grade that ranges from 0.125–0.191 oz/ton Au;

metal price of $2,000 per ounce gold, assumption of conventional longhole underground mining;

reported above a variable gold cut-off grade of 0.124 oz/ton Au;

metallurgical recovery assumption of 93.5%;

gold payability of 97.5%, variable mining costs that range from US$87.13–175.48/ton mined;

gold payability of 97.5%, mining costs of US$103.67/ton mined;

process costs of US$55.06/ton processed;

general and administrative costs of US$55.37/ton processed;

Sustaining capital US$4.50/ton processed;

and concentrate refining and shipping costs of US$108.67/oz sold.

45 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-K

Item 2. Properties