What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2024-02-21 compared with 2023-02-22 · 187 added, 260 removed, 490 unchanged (48% of the section changed)

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On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $142.3 million and net loss of $78.0 million or $0.23 per diluted share.

• Solid fourth quarter production growth led to full-year production within guidance ranges – Gold and silver production increased 5% and 4% quarter-over-quarter, respectively, to 87,727 ounces and 2.5 million ounces.

• Strong fourth quarter drove significant increases in revenue and adjusted EBITDA – Production increased at Rochester and strong finishes at Kensington and Wharf drove a 35% increase in revenue and a more-than doubling of adjusted EBITDA quarter-over-quarter

• Full-year 2023 gold and silver production guidance achieved – Gold and silver production increased 29% and 34% quarter-over-quarter, respectively, to 101,609 ounces and 3.1 million ounces.

Full-year gold and silver production totaled 317,671 ounces and 10.3 million ounces, respectively, within the Company’s consolidated production guidance ranges

• Rochester delivered strong quarterly performance – Fourth quarter production at Rochester totaled 973,000 ounces and 11,589 ounces of silver and gold, respectively, representing quarter-over-quarter increases of 31% and 32%.

• POA 11 expansion nearing scheduled mid-year construction completion and remains on-track – Construction at Rochester is scheduled to be completed mid-year 2023.

At the end of 2022, the project was 74% complete.

The new Stage VI leach pad is now operational, with first ore placed on February 1, 2023.

As of December 31, 2022, approximately $605 million of the estimated capital had been committed, of which $494 million of the estimated capital cost had been incurred.

Total estimated project capital remains unchanged at $650 - $670 million

• Exploration investment drives approximately 12% and 3% year-over-year increases in gold and silver reserves, respectively – Gold reserves at Kensington grew roughly 56% year-over-year, adding approximately a year and a half to its mine life.

Successful exploration at Silvertip contributed to year-over-year increases in measured and indicated resources of 73%, 69% and 81% in silver, zinc and lead, respectively, excluding reclassified ounces.

Over the last five years, the Company has invested approximately $245 million in exploration, leading to increases of approximately 21% and 49% in Company-wide gold and silver reserves, respectively over the five-year period

• Liquidity further bolstered to support remaining elevated levels of growth investments – The sale of the Crown Sterling holdings was completed on November 4, 2022 for upfront cash consideration of $150 million.

On January 17, 2023, Coeur announced the sale of its remaining shares of Victoria Gold Corporation (“Victoria Gold”) for net cash proceeds of approximately $40 million.

Coeur ended the quarter with total liquidity of approximately $342 million, including $62 million of cash and $280 million of available capacity under its $390 million revolving credit facility (“RCF”) and is further supported by robust hedges covering approximately 52% and 29% of 2023 estimated gold and silver production, respectively.

As adjusted to reflect the receipt of proceeds from Victoria Gold, Coeur’s total liquidity stood at $382 million at December 31, 2022

• 2023 guidance ranges consistent with 2022 investor day outlook – The Company expects 2023 gold and silver production of 320,000 - 370,000 ounces and 10.0 - 12.0 million ounces, respectively, driven by strong expected second half silver and gold production increases consistent with the planned ramp-up at Rochester following completion of the POA 11 expansion project and by higher expected production from the Wharf gold operation

• Rochester expansion ramp-up progressing – Commissioning of Rochester’s new crushing circuit is progressing, with completion of ramp-up activities anticipated during the first half of 2024.

Full-year 2024 silver and gold production guidance reflects strong anticipated year-over-year growth while second half cost guidance highlights sharp expected declines compared to recent years.

Once operating at full capacity, throughput levels are expected to average 32 million tons per year, approximately 2.5 times higher than historical levels

• Wharf delivers all-time record annual free cash flow – The Wharf gold mine in South Dakota ended the fourth quarter with operating cash flow of $29 million and free cash flow of approximately $27 million.

For the full year, operating cash flow totaled $84 million and free cash flow reached an all-time record $82 million.

Since acquiring Wharf in February 2015, Coeur has generated cumulative free cash flow of more than four times its original $99.5 million investment while mine life has remained strong at six years compared to the estimated five-year mine life at the time of acquisition

• Silvertip drills one of its highest grade intercepts ever – Results have been received for almost half of 2023 drilling in the Southern Silver Zone at the high-grade Silvertip polymetallic exploration project in northern British Columbia, including the highest-grade intercept ever drilled at the Southern Silver Zone in this rapidly growing near area

Selected Financial and Operating Results

Year Ended December 31,

In thousands 2022 2021 2020

Financial Results (In thousands):

2023 2022 2021

Financial Results:

(in thousands, except per share amounts)

Gold sales $ 575,677 $ 572,877 $ 578,911

Silver sales $ 245,529 $ 212,759 $ 253,917

Zinc sales $ — $ — $ (662)

Lead sales $ — $ — $ 1,315

Consolidated Revenue $ 821,206 $ 785,636 $ 832,828

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Silver ounces produced 10,250,906 9,816,680 10,068,112

Zinc pounds produced — — 2,459,756

Lead pounds produced — — 2,176,847

Gold ounces sold 315,511 329,968 350,347

Silver ounces sold 10,140,405 9,771,724 10,133,837

Zinc pounds sold — — 3,203,446

Lead pounds sold — — 2,453,485

Average realized price per gold ounce $ 1,825 $ 1,736 $ 1,652

Average realized price per silver ounce $ 24.21 $ 21.77 $ 25.06

Average realized price per zinc pound, gross (3)

$ — $ — NM (3)

Average realized price per lead pound, gross (3)

$ — $ — NM (3)

(1) See “Non-GAAP Financial Performance Measures.”

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Net of debt issuance costs and premium received.

(3) Due to the suspension of mining and processing activities at Silvertip these amounts are not meaningful.

Consolidated Financial Results

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We sold 315,511 gold ounces and 10.1 million silver ounces, compared to 329,968 gold ounces and 9.8 million silver ounces.

Revenue decreased by $47.2 million, or 6%, as a result of a 6% and 4% decrease in gold and silver ounces sold, respectively, and a 13% decrease in average realized silver prices, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges.

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

Gold and silver represented 73% and 27% of 2022 sales revenue, respectively.

This compares to gold and silver representing 70% and 30% of 2021 sales revenue, respectively.

Revenue increased by $35.6 million, or 5%, as a result of a 4% increase in silver ounces sold and a 5% and 11% increase in average realized gold and silver prices, respectively, partially offset by a 4% decrease in gold ounces sold.

The decrease in gold ounces sold was primarily due to lower mill throughput at Palmarejo and Kensington and lower grades at Kensington, partially offset by the timing of production from Rochester’s new leach pad related to startup of the new process plant and timing of recoveries at Wharf.

The increase in silver ounces sold was primarily due to the timing of production on Rochester’s new leach pad related to startup of the new process plant, partially offset by lower mill throughput at Palmarejo.

Gold and silver represented 70% and 30% of 2023 sales revenue, respectively, compared to 73% and 27% of 2022 sales revenue, respectively.

The following table summarizes consolidated metal sales:

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Costs Applicable to Sales

Costs applicable to sales increased $95.0 million, or 19%, 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 increased $26.4 million, or 4%, primarily due to the increase in ounces sold at Rochester and Wharf and higher operating costs at Palmarejo partially offset by lower net realizable value (“LCM”) adjustments at Rochester.

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

Amortization decreased $16.7 million primarily due to lower gold and silver ounces sold and longer assumed mine lives at Palmarejo, Kensington and Wharf.

General and administrative expenses decreased $0.9 million, or 2%, primarily due to lower stock-based compensation expense.

Exploration expense decreased $24.5 million, or 48% driven by lower planned investment across the portfolio.

Pre-development, reclamation, and other expenses decreased $7.4 million, or 15%, 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 $11.8 million, or 11%, primarily due to a decrease in gold ounces sold and longer assumed mine life at Kensington, partially offset by the commencement of production of the new leach pad in mid-September 2023 at Rochester.

General and administrative expenses increased $2.1 million, or 5%, primarily due to higher employee-related costs.

Exploration expense increased $4.3 million, or 16%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip, partially offset by the Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project recognized in 2023.

Pre-development, reclamation, and other expenses increased $14.0 million, or 34%, stemming from higher asset retirement accretion, a $12.8 million loss on dismantle and disposal of the legacy crusher at Rochester, and non-operating start-up costs associated with the Rochester expansion project, partially offset by lower ongoing carrying costs at Silvertip.

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

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Silvertip ongoing carrying costs 15,616 20,963 (5,347) (26) %

(Gain) loss on sale of assets 12,879 (640) 13,519 (2,112) %

Asset retirement accretion 16,405 14,232 2,173 15 %

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Other Income and Expenses

During the first quarter 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 $66.7 million compared to a $0.5 million loss as a result of a reduction in value of the Company’s equity investments.

During the year ended December 31, 2023, the Company incurred a $3.4 million gain in connection with the exchange of $76.0 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 25.2 million shares of common stock.

Fair value adjustments, net, increased to a gain of $3.4 million compared to $66.7 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 $11.2 million) increased to $23.9 million from $16.5 million due to higher interest paid under the RCF, partially offset by higher capitalized interest.

Other, net increased to a gain of $67.0 million compared to a loss of $22.9 million in 2021, as a result of the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties and a write-down of a $26.0 million Mexican VAT receivable in 2021 due to uncertain collectability.

For additional details on the VAT receivable write-down see Note 19 -- Commitments and Contingencies.

Interest expense (net of capitalized interest of $14.6 million) increased to $29.1 million from $23.9 million.

Total interest costs for 2023 increased $8.6 million to $43.7 million, due to higher interest paid under the RCF attributable to higher average debt levels, partially offset by lower interest payable following the extinguishment of $76.0 million in 2029 Senior Notes.

Other, net decreased to a loss of $7.5 million compared to a gain of $66.3 million as a result of the $12.3 million loss recognized from the sale of La Preciosa Deferred Consideration 2023 and the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties in 2022.

Income and Mining Taxes

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Income and mining tax expense of approximately $35.2 million resulted in an effective tax rate of 51.4% for 2023.

This compares to income tax expense of $35.0 million for an effective tax rate of 961.4% for 2021.The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) the sale of non-core assets;

This compares to income tax expense of $14.7 million for an effective tax rate of 23.1% for 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) the sale of non-core assets;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) mining taxes;

(v) percentage depletion;

(vi) foreign exchange rates;

(vii) the impact of uncertain tax positions;

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

(v) foreign exchange rates;

(vi) percentage depletion;

and (vii) the impact of uncertain tax positions.

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

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Net loss was $103.6 million, or $0.30 per diluted share, compared to $78.1 million, or $0.28 per diluted share.

The increase in net loss was driven by a 6% and 4% decrease in gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, higher operating costs, including increased LCM adjustments at Rochester, unfavorable changes in the fair value of the Company’s equity investments, and a realized loss of $15.6 million in connection with the sale of Victoria Gold common shares.

This was partially offset by a 5% increase in average realized gold prices driven by realized gains from gold hedging, a $62.2 million gain on the sale of the Sterling/Crown exploration properties, lower exploration costs and income and mining taxes, absence of a $9.2 million loss on debt extinguishment and the VAT write-down of $26.0 million in 2021.

The increase in net loss was driven by a 4% decrease in gold ounces sold, higher operating costs at Palmarejo, higher exploration costs, a $12.3 million loss on the sale of the La Preciosa Deferred Consideration, a $12.8 million loss on disposal of the legacy crusher at Rochester, and the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties in 2022.

This was partially offset by a 4% increase in silver ounces sold, a 5% and 11% increase in average realized gold and silver prices, respectively, favorable changes in the fair value of the Company’s equity investments, and a $3.4 million

gain in connection with the exchange of 2029 Senior Notes.

Adjusted net loss was $78.0 million, or $0.23 per diluted share, compared to $89.1 million, or $0.32 per diluted share (see “Non-GAAP Financial Performance Measures”).

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

We sold 350,347 gold ounces and 10.1 million silver ounces, compared to 356,251 gold ounces, 9.6 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds in the prior year.

Revenue increased by $47.4 million, or 6%, as a result of a 1% and 21% increase in average realized gold and silver prices, respectively, and higher silver ounces sold (5%), partially offset by lower gold ounces sold (2%).

The increase in silver ounces sold was primarily due to higher mill throughput at Palmarejo.

Gold and silver accounted for 70% and 30% of 2021 sales revenue, respectively.

This compares to gold and silver accounting for 74% and 25% of 2020 sales revenue, respectively, with zinc and lead accounting for the remaining 2020 sales revenue.

We sold 329,968 gold ounces and 9.8 million silver ounces, compared to 350,347 gold ounces and 10.1 million silver ounces.

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

Gold and silver represented 73% and 27% of 2022 sales revenue, respectively.

This compares to gold and silver representing 70% and 30% of 2021 sales revenue, respectively.

The following table summarizes consolidated metal sales:

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Silver sales 212,759 253,917 (41,158) (16) %

Zinc sales — (662) 662 (100) %

Lead sales — 1,315 (1,315) (100) %

Metal sales $ 785,636 $ 832,828 $ (47,192) (6) %

Costs Applicable to Sales

Costs applicable to sales increased $71.2 million, or 16%, primarily due to inflationary pressures related to employee-related, maintenance and consumable costs at all operating sites, higher silver ounces sold primarily at Palmarejo, the Rochester fourth quarter LCM adjustment of $7.3 million, partially offset by a $13.8 million favorable impact from foreign currency hedges.

Amortization decreased $3.1 million, or 2%, primarily due to longer assumed mine life based on year-end 2020 mineral reserve growth, partially offset by higher silver ounces sold.

General and administrative expenses increased $6.7 million, or 20%, primarily due to higher compensation, travel and outside service costs.

Exploration expense increased $8.5 million, or 20%, as the Company maintained its commitment to a higher-level of exploration investment in 2021.

Pre-development, reclamation, and other expenses decreased $7.0 million, or 13%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, partially offset by full-year ongoing carrying costs and absence of one-time 2020 costs associated with the suspension of mining and processing activities at Silvertip.

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

Amortization decreased $16.7 million primarily due to lower gold and silver ounces sold and longer assumed mine lives at Palmarejo, Kensington and Wharf.

General and administrative expenses decreased $0.9 million, or 2%, primarily due to lower stock-based compensation expense.

Exploration expense decreased $24.5 million, or 48% driven by lower planned investment across the portfolio.

Pre-development, reclamation, and other expenses decreased $3.9 million, or 9%, 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 lower gains from the sale of assets and higher asset retirement accretion.

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

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Silvertip ongoing carrying costs 20,963 24,928 (3,965) (16) %

Silvertip suspension costs — 11,199 (11,199) (100) %

Gain on modification of right of use lease — (4,051) 4,051 (100) %

(Gain) loss on sale of assets (640) (4,111) 3,471 (84) %

Asset retirement accretion 14,232 11,988 2,244 19 %

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Other Income and Expenses

During the first quarter of 2021, the Company incurred a $9.2 million loss in connection with the tender and redemption of the 2024 Senior Notes concurrent with the completed offering of the 2029 Senior Notes.

Fair value adjustments, net, decreased to a loss of $0.5 million compared to a gain of $7.6 million as a result of a reduction in value of the Company’s equity investments.

The estimated fair values of the Company’s equity investments in Victoria Gold and Integra Resources Corp.

(“Integra Resources”) were $124.2 million and $8.0 million, respectively, at December 31, 2021.

Interest expense (net of capitalized interest of $11.1 million) decreased to $16.5 million from $20.7 million due to higher capitalized interest associated with the POA 11 project at Rochester, and lower interest paid under the RCF, partially offset by higher interest paid under the 2029 Senior Notes compared to the 2024 Senior Notes and higher interest paid under finance lease obligations.

Other, net increased to a loss of $22.9 million compared to a loss of $5.9 million due to a write-down of the $26.0 million VAT receivable, partially offset by an increase in gains on the sale of assets in 2021 and a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars incurred in 2020.

Fair value adjustments, net, decreased to a loss of $66.7 million compared to a $0.5 million loss as a result of a reduction in value of the Company’s equity investments.

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

Other, net increased to a gain of $66.3 million compared to a loss of $27.0 million in 2021, as a result of the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties and a write-down of a $26.0 million Mexican VAT receivable in 2021 due to uncertain collectability.

For additional details on the VAT receivable write-down see Note 18 -- Commitments and Contingencies.

Income and Mining Taxes

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Mining, foreign withholding, and other taxes (11,070) (12,599)

Sale of non-core assets 15,447 —

Other, net (801) 1,390

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Income and mining tax expense of approximately $14.7 million resulted in an effective tax rate of 23.1% for 2022.

This compares to income tax expense of $37.0 million or effective tax rate of 59.1% for 2020.

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) foreign exchange rates;

(v) percentage depletion (vi) the impact of uncertain tax positions;

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

(iii) the sale of non-core assets;

(iv) mining taxes;

(v) percentage depletion;

(vi) foreign exchange rates;

(vii) the impact of uncertain tax positions;

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

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

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$ (63,449) $ (14,658) $ 3,636 $ (34,958)

Net loss was $31.3 million, or $0.13 per diluted share, compared to net income of $25.6 million, or $0.11 per diluted share.

The decrease in net income was driven by higher operating costs, the $26.0 million VAT write-down , higher exploration expense, a $9.2 million loss on debt extinguishment and higher income and mining taxes.

This was partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively and higher silver ounces sold (5%).

Adjusted net loss was $1.4 million, or $0.01 per diluted share, compared to an adjusted net income of $59.0 million, or $0.24 per diluted share (see “Non-GAAP Financial Performance Measures”).

2023 Guidance Framework

Gold and silver production is expected to increase compared to 2022, driven by the planned construction completion of POA 11 at Rochester mid-year as well as higher expected grades at Wharf due to mine sequencing and resource model enhancements.

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 will ultimately 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.

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

Net loss was $78.1 million, or $0.28 per diluted share, compared to $31.3 million, or $0.13 per diluted share.

Adjusted net loss was $89.1 million, or $0.32 per diluted share, compared to $1.4 million, or $0.01 per diluted share (see “Non-GAAP Financial Performance Measures”).

2024 Guidance

Gold and silver production is expected to increase compared to 2023, driven by the commissioning and ramp-up of the Rochester expansion.

Overall cost guidance has increased compared to 2023 primarily driven by expected continued inflationary pressures on operating costs.

Additionally, with the completion of the POA 11 expansion construction expected in mid-2023, Coeur has elected to defer providing cost guidance at Rochester until mid-year, following the transitional period anticipated in the first half of 2023.

The Company expects to have an LCM adjustment at Rochester of roughly $10 - $15 million each quarter in 2023.

With the commissioning and ramp-up of the new Merrill-Crowe facility and three-stage crusher corridor at Rochester expected to be completed during the first half of 2024, the Company has elected to defer providing cost guidance at Rochester for that period.

The below cost guidance for Rochester reflects the second half of 2024.

Coeur expects to have an LCM adjustment at Rochester of roughly $10 - $15 million in the first quarter of 2024.

Additionally, the below exploration expense guidance excludes $15 - $20 million of underground mine development and support costs associated with Silvertip.

2024 Production Guidance

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Palmarejo (co-product) $1,075 - $1,275 $16.50 - $17.50

Rochester (co-product) — —

Second Half 2024 Rochester (co-product) $1,200 - $1,400 $14.00 - $16.00

Kensington $1,525 - $1,725 —

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Year Ended December 31, 2023 compared to Year Ended December 31, 2022

Gold and silver production decreased 6% and 2%, respectively, as a result of a 9% decrease in mill throughput partially offset by 4% and 9% higher gold and silver grades, respectively.

Metal sales were $313.2 million, or 38% of Coeur’s metal sales, compared with $303.4 million, or also 38% of Coeur’s metal sales.

Revenue increased by $9.8 million, or 3%, of which $26.4 million was due to higher gold and silver prices, partially offset by a decrease of $16.6 million due to a lower volume of gold and silver production.

Costs applicable to sales per gold and silver ounces increased 9% and 16%, respectively, due to the mix of gold and silver sales which impacted co-product cost allocation and unfavorable impact of a strengthening Mexican Peso on employee-related and electricity costs.

Amortization increased by $0.3 million to $35.7 million.

Capital expenditures decreased to $41.8 million from $42.6 million due to lower capitalized exploration expenditures partially offset by higher open pit backfill project and underground development expenditures.

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold and silver production decreased 2% as a result of 12% and 8% lower gold and silver grades, respectively, partially offset by 4% higher mill throughput.

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Capital expenditures increased to $42.6 million from $36.5 million due to higher underground development, infill drilling activities and flotation and thickener equipment purchases.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold production decreased 1% as a result of lower gold grade, partially offset by higher mill throughput and recoveries.

Silver production increased 9% as a result of higher mill throughput and recoveries, partially offset by lower silver grade.

Metal sales were $320.3 million, or 38% of Coeur’s metal sales, compared with $286.6 million, or 36% of Coeur’s metal sales.

Revenue increased by $33.7 million, or 12%, of which $23.9 million was due to higher average realized silver prices and $9.8 million was the result of a higher volume of silver sales.

Costs applicable to sales per gold and silver ounce increased 9% and 31%, respectively, due to the mix of gold and silver sales, and higher employee-related, maintenance and consumable costs largely due to inflationary pressures, partially offset by the favorable impact of foreign currency hedges ($13.8 million).

Amortization decreased to $36.1 million due to longer assumed mine life based on year-end 2020 mineral reserve growth.

Capital expenditures increased to $36.5 million from $25.0 million due to higher underground development and infill drilling activities.

Year ended December 31,

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Year Ended December 31, 2023 compared to Year Ended December 31, 2022

Gold and silver production increased 12% and 11%, respectively, as a result of the Rochester expansion and an improved understanding of gold and silver recoveries based on controlling the size fraction and amount of fines placed on the leach pads.

Approximately 64% of the tons placed in 2023 were placed onto the new leach pad.

The new leach pad along with the new processing facility commenced production in mid-September 2023.

Metal sales were $156.0 million, or 19% of Coeur’s metal sales, compared with $129.7 million, or 17% of Coeur’s metal sales.

Revenue increased by $26.4 million, or 20%, of which $15.5 million was due to a higher volume of gold and silver production, and $10.9 million was due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 11% and 2%, respectively, due to the mix of gold and silver sales and lower LCM adjustments of $39.9 million compared to $46.0 million in the prior year, driven by higher gold and silver prices partially offset by lower tons placed and higher employee-related and maintenance costs.

Amortization increased to $26.4 million due to commencement of production of the new leach pad in mid-September 2023.

Capital expenditures increased to $263.4 million from $246.4 million due to timing of payments related to the Rochester expansion project.

Commissioning of Rochester’s new crushing circuit is progressing, with completion of ramp-up activities anticipated during the first half of 2024.

Full-year 2024 silver and gold production guidance reflects strong anticipated year-over-year growth while second half cost guidance highlights sharp expected declines compared to recent years.

Once operating at full capacity, throughput levels are expected to average 32 million tons per year, approximately 2.5 times higher than historical levels.

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold production increased 28% primarily due to increased tons placed and higher gold grades, while silver production decreased 3%, as a result of lower silver grades and timing of recoveries.

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Capital expenditures increased to $246.4 million from $166.5 million due to planned payments related to the POA 11 expansion project and equipment purchases.

As of December 31, 2022, the Company had committed approximately $605 million of capital since inception of the POA 11 expansion project and approximately $494 million of the estimated project cost had been incurred.

Total estimated project capital remains between $650 - $670 million.

At the end of 2022, the project was 74% complete.

Progress on the Merrill-Crowe plant remained on schedule, including (i) completion of mechanical equipment setting, (ii) completion of process plant building cladding, (iii) commencement of electrical cable installation and continuation of piping installation, and (iv) successful completion of control systems programming and factory testing.

Further work on the crusher corridor also advanced, including (i) completion of the first lift of the primary crusher vertical concrete, (ii) continuation of steel erection and equipment installation above the secondary cone crushers in the secondary crusher area, (iii) continuation of steel erection and equipment installation above the tertiary HPGR crushers in the tertiary crusher area, and (iv) commencement of control systems programming.

Coeur made solid progress on the final major high-voltage electrical distribution and substation construction, while also advancing pre-commissioning planning and system development.

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

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold and silver production remained comparable year over year.

Metal sales were $130.8 million, or 16% of Coeur’s metal sales, compared with $110.3 million, or 14% of Coeur’s metal sales.

Revenue increased by $20.6 million, or 19%, of which $13.3 million was the result of higher average realized gold and silver prices and $7.3 million was the result of a higher volume of gold and silver sales.

Costs applicable to sales per gold and silver ounce increased 31% and 54%, respectively, due to the mix of gold and silver sales, higher employee-related, maintenance and consumable costs partially due to inflationary pressures, and a LCM adjustment of $7.3 million.

Amortization increased to $20.2 million due to higher equipment depreciation from recently placed-in service assets and an LCM adjustment of $1.1 million in the fourth quarter.

Capital expenditures increased to $166.5 million from $37.5 million due to the commencement of construction activities related to POA 11 in August 2020.

Year ended December 31,

9 unchanged sentences

Year Ended December 31, 2023 compared to Year Ended December 31, 2022

Gold production decreased 22% as a result of 18% lower grades and 7% lower mill throughput.

Metal sales were $162.5 million, or 20% of Coeur’s metal sales, compared to $202.5 million, or 26% of Coeur’s metal sales.

Revenue decreased by $40.0 million, or 20%, of which $46.0 million resulted from a lower volume of gold production, partially offset by a $6.0 million increase due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 26% due to lower production partially offset by lower operating costs.

Amortization decreased to $25.9 million primarily due to a decrease in gold ounces sold and the favorable impact of a longer mine life.

Capital expenditures increased to $53.3 million from $31.5 million due to the elevated level of investment associated with the multi-year underground development and exploration program designed to potentially extend and enhance the mine life, which began in 2022 and is expected to be completed in 2025.

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold production decreased 10% as a result of 10% lower grades and lower recoveries, partially offset by 5% higher mill throughput.

3 unchanged sentences

Amortization decreased to $39.0 million primarily due to lower ounces sold and longer assumed mine life.

Capital expenditures increased to $31.5 million from $27.5 million due to higher infill drilling and underground development.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold production decreased 3% as a result of lower grade and lower mill throughput.

Metal sales were $215.0 million, or 26% of Coeur’s metal sales, compared to $216.5 million, or 28% of Coeur’s metal sales.

Revenue decreased by $1.5 million, or 1%, of which $4.6 million resulted from lower volume of gold sales, partially offset by an increase of $3.1 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 11% due to lower production and higher employee-related, maintenance and consumable costs, partially due to inflationary pressures.

Amortization increased to $54.9 million primarily due to higher Jualin production, partially offset by lower ounces sold.

Capital expenditures increased to $27.5 million from $19.8 million due to higher infill drilling and underground development.

Capital expenditures increased to $31.5 million from $27.5 million due to the multi-year underground development and exploration program which began in 2022.

Year ended December 31,

10 unchanged sentences

Year Ended December 31, 2023 compared to Year Ended December 31, 2022

Gold production increased 17% driven by higher grade, higher tons placed and timing of recoveries.

Metal sales were $189.5 million, or 23% of Coeur’s metal sales, compared to $150.0 million, or 19% of Coeur’s metal sales.

Revenue increased by $39.5 million, or 26%, of which $32.5 million was due to a higher gold production, and an increase of $7.0 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 10% due to lower operating costs and higher grade and tons placed.

Amortization decreased to $6.7 million due to higher grade and tons placed and the favorable impact of a longer mine life.

Capital expenditures were $2.5 million.

Year Ended December 31, 2022 compared to Year Ended December 31, 2021

Gold production decreased 12% driven by lower grades.

4 unchanged sentences

Capital expenditures were $3.1 million.

Year Ended December 31, 2021 compared to Year Ended December 31, 2020

Gold production decreased 2% driven by the timing of recoveries.

Metal sales were $166.7 million, or 20% of Coeur’s metal sales, compared to $170.2 million, or 22% of Coeur’s metal sales.

Revenue decreased by $3.5 million, or 2%, of which $5.6 million resulted from a lower volume of gold sales, partially offset by an increase of $2.1 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold ounce increased 8% due to higher equipment rental, diesel and employee-related costs partially due to inflationary pressures.

Amortization decreased to $11.0 million due to lower ounces sold.

Capital expenditures were $8.1 million reflecting $4.0 million of infill drilling.

Year Ended December 31, 2023

2022 2021 2020

Silver ounces produced — — 139,287

Zinc pounds produced — — 2,459,756

Lead pounds produced — — 2,176,847

Silver ounces sold — — 158,984

Zinc pounds sold — — 3,203,446

Lead pounds sold — — 2,453,485

Costs applicable to sales per silver ounce (2)

$ — $ — NM (1)

Costs applicable to sales per zinc pound (2)

$ — $ — NM (1)

Costs applicable to sales per lead ounce (2)

$ — $ — NM (1)

(1) Due to the suspension of mining and processing activities these amounts are not meaningful.

(2) See Non-GAAP Financial Performance Measures.

Year Ended December 31, 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 conducted an order of magnitude assessment on multiple throughput scenarios to narrow the range of options for a preferred path forward for Silvertip.

Continued resource growth as well as optimization of operating and capital costs are expected to further enhance project economics.

Near-term, the Company is focused on exploration and managing care and maintenance costs as the Company continues to develop plans for a potential expansion and restart of the Silvertip.

Ongoing carrying costs at Silvertip totaled $21.0 million in 2022, compared to $24.9 million in the prior year.

Capital expenditures in 2022 totaled $24.8 million compared to $70.1 million in the prior year due to continued infill drilling and underground development.

Ongoing carrying costs at Silvertip totaled $15.6 million in 2023 and $21.0 million in the prior year.

Capital expenditures in 2023 totaled $2.9 million compared to $24.8 million in the prior year due to planned reduction in capital development expenditures.

Liquidity and Capital Resources

1 unchanged sentence

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

Cash and cash equivalents increased $4.8 million in the year ended December 31, 2022, due to $150.2 million from the sale of the Sterling/Crown exploration properties in the fourth quarter of 2022, net proceeds of $147.4 million from the sale of 36.8 million shares of its common stock under two “at the market” equity offering programs completed in 2022 described below, $40.5 million received in July 2022 from the sale of a portion of the Victoria Gold common shares, $15.3 million received from the sale of the La Preciosa project and $25.6 million of net cash flows provided from operations impacted by a 4% and 10% decrease in gold and silver ounces sold, respectively and a 16% decrease in average realized silver prices and higher operating costs primarily due to inflationary pressures partially offset by $352.4 million of capital expenditures primarily related to the POA 11 expansion project at Rochester.

Cash and cash equivalents decreased $0.2 million in the year ended December 31, 2023, due to $364.6 million of capital expenditures primarily related to the Rochester expansion project, a 4% decrease in gold ounces sold, and higher costs at our operations due to continued inflationary pressures, partially offset by aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, $39.8 million received from the sale of 6.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”), and net proceeds of $28.7 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering (as defined below).

Additionally, the Company received net proceeds of $7.0 million from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the Avino note receivable, net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation, and a 5% and 11% increase in average realized gold and silver prices, respectively.

At December 31, 2023, the Company had $175.0 million drawn, $29.6 million in outstanding letters of credit and $185.4 million available under the RCF.

On August 9, 2023, the Company entered into an amendment (the “August Amendment”) to the RCF.

The August Amendment, among other things, (1) modifies the financial covenants to provide greater flexibility during the final stages of the Rochester expansion under (a) the consolidated net leverage and consolidated senior secured leverage ratios at September 30, 2023 through March 31, 2024, with the ratios returning to the previous levels at June 30, 2024 and (b) the consolidated interest coverage ratio at June 30 through September 30, 2023, with the ratio returning to the previous level at December 31, 2023, (2) allows up to $50 million, through June 30, 2024, stepping down to $40 million in September 31, 2024, $30 million in December 31, 2024 and $15 million thereafter, 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 June 30, 2024, and (4) restricts certain acquisitions through March 31, 2024.

On February 21, 2024, the Company entered into an amendment (the “February 2024 Amendment”) to the RCF.

The February 2024 Amendment, among other things, (1) extends the term of the RCF by approximately 2 years so that it now matures in February 2027, (2) increases the RCF by $10 million from $390 million to $400 million, (3) adds Fédération Des Caisses Desjardins Du Québec and National Bank of Canada as lenders on the RCF, (4) permits the Company to obtain one or more increases of the RCF in an aggregate amount of up to $100.0 million in incremental loans and commitments, subject to certain conditions, including obtaining commitments from relevant lenders to provide such increase, (5) allows for unencumbered domestic cash to be included in the calculation of the consolidated net leverage ratio, and (6) allows up to $15 million of non-capitalized underground mine development costs related to Silvertip to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF.

In January 2023, the Company completed the sale of 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.

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.

In October and November 2023, the Company sold 14.0 million shares of common stock of Avino Silver & Gold Mines (“Avino Common Shares”) at a price of $0.43 per share, for net proceeds of $6.1 million.

At December 31, 2023, the Company held no 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 22.1 million shares of common stock in the March Equity Offering at an average price of $4.53 per share, raising net proceeds (after sales commissions) of $98.0 million.

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) modified 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) allowed 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) increased the interest rate on certain borrowings through early 2023, (4) required the Company to repay outstanding amounts under the RCF if cash-on-hand exceeds $60 million during the Amendment Period, and (5) restricted certain payments and the incurrence of certain liens during the Amendment Period.

At December 31, 2022, the Company had $80.0 million drawn and $29.6 million in outstanding letters of credit under the RCF.

On June 28, 2022, the Company entered into an agreement to sell 5.0 million shares of common stock of Victoria Gold at a price of $8.34 per Victoria Gold Common Share, for net proceeds of $40.5 million received in July 2022.

At December 31, 2022, the Company held $44.2 million of equity securities including a 9.4% interest in Victoria Gold.

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

On September 18, 2022, the Company entered into a Stock Purchase Agreement (“Crown Sterling Agreement”) with AngloGold Ashanti (U.S.A.) Holdings Inc.

and its affiliate (“Buyer”) for the sale of 100% of the issued and outstanding shares of Coeur Sterling, Inc., a subsidiary of Coeur that holds the Sterling/Crown exploration properties near Beatty, Nevada, in exchange for:

(A) a cash payment of $150.2 million at the closing of the transaction, subject to a customary purchase price adjustment and (B) the right to an additional payment of $50.0 million 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 Crown Sterling Agreement.

The transaction was consummated on November 4, 2022.

In December 2022, the Company completed a $50.0 million “at the market” offering of its common stock, par value $0.01 per share (the “December Equity Offering”).

The Company sold a total of 14.8 million shares of common stock in the December Equity Offering at an average price of $3.39 per share, raising net proceeds (after sales commissions) of $49.2 million.

As of December 31, 2022, the Company had outstanding forward contracts on 130,500 ounces of gold at December 31, 2022 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 early 2023, the Company added 49,998 ounces of gold forward contracts and 3.2 million ounces of silver forward contracts that settle monthly through December 2023.

Taking into account the additional gold and silver hedges added in early 2023 the weighted average fixed price on the forward contracts is $1,961 per ounce of gold and $24.55 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, sale of non-core investments, borrowings under our RCF and additional equity financings depending on future commodity prices to fund near term capital requirements, including those described in this Report for the POA 11 expansion project at Rochester and in our 2023 capital expenditure guidance.

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 December 31, 2022, the Company committed approximately $605 million of capital since inception of the project and approximately $494 million of the estimated project cost had been incurred.

Total estimated project capital remains $650 - $670 million.

At the end of 2022, the project was 74% complete.

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.

In July 2023, the Company completed the sale of 8,276,154 shares of its common stock (“Private Placement Offering”) issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), raising net proceeds of $28.7 million, of which $7.8 million represents net proceeds received in excess of the Company’s average price (“FT Premium Liability”).

The proceeds of the issuance of FT Shares will be used by the Company for certain qualifying “Canadian Exploration Expenditures” (as such term is defined in the Income Tax Act (Canada)).

In 2023, the Company incurred qualifying Canadian Exploration Expenditures which resulted in the recognition of $2.3 million of the FT Premium Liability as a gain in the Income Statement.

The remaining outstanding FT Premium Liability was $5.5 million as of December 31, 2023.

In September 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 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.

The Company had outstanding forward contracts on 94,950 ounces of gold and 3.1 million ounces of silver at December 31, 2023 that settle monthly through June 2024 in order to protect cash flow during the Rochester expansion ramp up and may in the future layer on additional hedges as circumstances warrant.

The weighted average fixed price on the forward contracts is $2,076 per ounce of gold and $25.16 per ounce of silver.

During the year ended December 31, 2023, the Company exchanged $76.0 million in aggregate principal amount of 2029 Senior Notes plus accrued interest for 25.2 million shares of its common stock.

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 under-pinned by our gold and silver hedging programs, additional equity financing, 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 2024 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.

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.

14 unchanged sentences

Cash provided by (used in) operating activities $ 67,288 $ 25,616 $ 110,482

Net cash provided by operating activities decreased $84.9 million for the year ended December 31, 2022 compared to the year ended December 31, 2021, primarily due to a 6% and 4% decrease in lower gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, and higher operating costs, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges, lower exploration costs, timing of VAT collections at Palmarejo, and lower Silvertip ongoing carrying costs.

Net cash provided by operating activities increased $41.7 million for the year ended December 31, 2023 compared to the year ended December 31, 2022, primarily due to a 4% increase in silver ounces sold and a 5% and 11% increase in average realized gold and silver prices, the receipt of $55.0 million of prepayments at Kensington, Rochester and Wharf in December 2023, and the receipt of $7.8 million FT Premium Liability, partially offset by a 4% decrease in gold ounces sold, higher operating costs, and timing of VAT collections at Palmarejo.

Revenue for the year ended December 31, 2023 compared to the year ended December 31, 2022 increased by $35.6 million, of which $53.0 was due to higher average realized gold and silver prices, partially offset $17.4 million as a result of lower volume of gold sales.

Net cash provided by operating activities decreased $84.9 million for the year ended December 31, 2022 compared to

the year ended December 31, 2021, primarily due to a 6% and 4% decrease in lower gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, and higher operating costs, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges, lower exploration costs, timing of VAT collections at Palmarejo, and lower Silvertip ongoing carrying costs.

Revenue for the year ended December 31, 2022 compared to the year ended December 31, 2021 decreased by $47.2 million, of which $43.3 million was due to a lower volume of gold and silver sales and $3.9 million was due to lower average realized silver prices.

Net cash provided by operating activities decreased $38.2 million for the year ended December 31, 2021, primarily due to lower gold ounces sold (2%), higher operating costs, exploration costs, and mining and income taxes at Palmarejo, partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively, and higher silver ounces sold (5%).

Revenue for the year ended December 31, 2021 increased by $47.4 million, of which $44.5 million was the result of higher average realized gold and silver prices and $2.9 million was due to the higher volume of silver sales.

Cash Used in Investing Activities

Net cash used in investing activities in the year ended December 31, 2023 was $303.7 million compared to $146.2 million in the year ended December 31, 2022.

The Company incurred capital expenditures of $364.6 million in the year ended December 31, 2023 compared with $352.4 million in the year ended December 31, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Cash used in investing activities increased due to higher capital expenditures, the receipt of net proceeds of $150.2 million and $15.2 million in 2022 from the sale of the Sterling/Crown exploration properties in Nevada and La Preciosa project in Mexico, respectively, partially offset by net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, $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.

Net cash used in investing activities in the year ended December 31, 2022 was $146.2 million compared to $304.1 million in the year ended December 31, 2021.

Cash used in investing activities decreased primarily due to receipt of net proceeds of $150.2 million and $15.3 million from the sale of the Sterling/Crown exploration properties and La Preciosa project, respectively, and net proceeds of $40.5 million in July 2022 from the sale of a portion of the Victoria Gold common shares, partially offset by an increase in capital expenditures.

1 unchanged sentence

Capital expenditures in the year ended December 31, 2022 were primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington.

Capital expenditures in the year ended December 31, 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 at the POA 11 project at Rochester, and to operating costs company-wide.

Net cash used in investing activities in the year ended December 31, 2021 was $304.1 million compared to $65.7 million in the year ended December 31, 2020.

Cash used in investing activities increased primarily due to construction activities related to POA 11 at Rochester and the potential expansion at Silvertip in the current period and the impact of the net proceeds of $19.4 million from the sale of Metalla Royalty & Streaming Ltd.

common shares in the comparable period of 2020.

The Company incurred capital expenditures of $309.8 million in the year ended December 31, 2021 compared with $99.3 million in the year ended December 31, 2020.

Capital expenditures in the year ended December 31, 2020 were primarily related to POA 11 at Rochester, which commenced construction activities during the third quarter, and underground development at Palmarejo and Kensington.

Cash Provided by (Used in) Financing Activities

Capital expenditures in the year ended December 31, 2021 were primarily related to POA 11 construction activities at Rochester, expenditures for a potential expansion at Silvertip and underground development at Palmarejo and Kensington.

Cash Provided by Financing Activities

Net cash provided by financing activities in the year ended December 31, 2023 was $236.1 million compared to $125.0 million in the year ended December 31, 2022.

During the year ended December 31, 2022, the Company drew $15.0 million, net, from the RCF and received net proceeds of $147.4 million from the sale of 36,820,110 shares of its common stock in the March Equity Offering and the December Equity Offering.

During the year ended December 31, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, and drew $65.0 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 financing activities in the year ended December 31, 2021 was $158.1 million compared to net cash used in financing activities of $46.5 million in the year ended December 31, 2020.

During the year ended December 31, 2023, the Company drew $95.0 million, net, under the RCF, received aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, and received net proceeds of $20.9 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering.

During the year ended December 31, 2022, the Company drew $15.0 million, net, from the RCF and received net proceeds of $147.4 million from the sale of 36.8 million shares of its common stock in the March Equity Offering and the December Equity Offering.

Net cash provided by financing activities in the year ended December 31, 2022 was $125.0 million compared to $158.1 million in the year ended December 31, 2021.

As of December 31, 2021, there was $65.0 million drawn under the RCF.

During the year ended December 31, 2020, the Company fully repaid the $150.0 million drawn from the RCF during 2020, and paid contingent cash consideration of $18.8 million associated with the Silvertip acquisition.

The Company secured a finance lease package for nearly $60.0 million during the year ended December 31, 2021, of which $55.7 million has been funded.

The package is earmarked for planned equipment purchases for the POA 11 project in 2021, 2022, and 2023 and has an interest rate of 5.2%.

Critical Accounting Policies and Accounting Developments

34 unchanged sentences

The Company uses reserve estimates in determining the units-of-production amortization and evaluating mine assets for potential impairment.

For a discussion of estimates and assumptions used by management that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of its financial statements, the reported amounts of revenue and expenses during the reporting period, and mined reserves, see Note 2 -- Summary of Significant Accounting Policies in the notes to the Consolidated Financial Statements.

revenue and expenses during the reporting period, and mined reserves, see Note 2 -- Summary of Significant Accounting Policies in the notes to the Consolidated Financial Statements.

The Company amortizes its property, plant, and equipment, mining properties, and mine development using the units-of-production method over the estimated life of the ore body generally based on its proven and probable reserves or the straight-line method over the useful life, whichever is shorter.

19 unchanged sentences

As the ore body is drilled in preparation for the blasting process, samples are taken of the drill residue which are assayed to determine estimated quantities of contained metal.

The Company then processes the ore through crushing facilities where the

output is again weighed and sampled for assaying.

The Company then processes the ore through crushing facilities where the output is again weighed and sampled for assaying.

A metallurgical reconciliation with the data collected from the mining operation is completed with appropriate adjustments made to previous estimates.

2 unchanged sentences

The quantity of leach solution is measured by flow meters throughout the leaching and precipitation process.

After precipitation, the product is converted to doré at the Rochester mine and a form of gold concentrate at the Wharf mine, representing the final product produced by each mine.

After precipitation, the product is converted to doré at the Rochester mine and a form of gold electrolytic cathodic sludge at the Wharf mine, representing the final product produced by each mine.

The inventory is stated at lower of cost or net realizable value, with cost being determined using a weighted average cost method.

23 unchanged sentences

Assuming normal market conditions, the change in the market value of such derivative contracts has historically been, and is expected to continue to be, highly effective at offsetting changes in price movements of the hedged item.

The effective portions of cash flow hedges are recorded in Accumulated other comprehensive income (loss) until the hedged item is recognized in earnings.

Deferred gains and losses associated with cash flow hedges of revenue from metal sales are recognized as a component of Revenue in the same period as the related sale is recognized.

Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of Costs applicable to sales or Predevelopment, reclamation and other in the same period the related expenses are incurred.

For derivatives not designated as hedging instruments, the Company recognizes derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value.

1 unchanged sentence

Management applies judgment in estimating the fair value of instruments that are highly sensitive to assumptions regarding commodity prices, market volatilities, and foreign currency exchange rates.

See Note 14 -- Derivative Financial Instruments and Hedging Activities for additional information.

Income and Mining Taxes

3 unchanged sentences

Significant judgment is required in determining the annual tax expense, current tax assets and liabilities, deferred tax assets and liabilities, and our future taxable income, both as a whole and in various tax jurisdictions, for purposes of assessing our ability to realize future benefit from our deferred tax assets.

Actual income taxes could vary from

these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year’s liability by taxing authorities.

Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year’s liability by taxing authorities.

The Company’s deferred income taxes reflect the impact of temporary differences between the reported amounts of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations.

In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies in each tax jurisdiction.

in each tax jurisdiction.

A valuation allowance may be established to reduce our deferred tax assets to the amount that is considered more likely than not to be realized through the generation of future taxable income and other tax planning strategies.

The Company has asserted indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company.

The Company has asserted a partial indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company.

The Company does not record a U.S.

12 unchanged sentences

operations and corporate activities.

The Company has asserted indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company.

The Company does not believe that the amounts reinvested will have a material impact on liquidity.

20 unchanged sentences

RMC bankruptcy distribution (1,516) (1,651) —

VAT litigation 1,142 — —

VAT write-off — — 25,982

Loss on debt extinguishment — — 9,173

Silvertip inventory write-down — — 13,717

Wharf inventory write-down — — 3,323

Silvertip suspension costs — — 7,164

Silvertip lease modification — — (4,051)

Silvertip gain on contingent consideration — — (955)

Novation — — 3,819

Gain on debt extinguishment (3,437) — —

COVID-19 costs 111 1,739 6,618

Interest income on notes receivables (720) — —

Other adjustments 4,814 422 —

Tax effect of adjustments (1)

3 unchanged sentences

Adjusted net income (loss) per share, Diluted $ (0.23) $ (0.32) $ (0.01)

(1) For the year ended December 31, 2022, tax effect of adjustments of $15.3 million (-558%) 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 and the Sterling /Crown exploration properties .

(1) For the year ended December 31, 2023, tax effect of adjustments of $1.8 million (8%) is primarily related to the loss on the sale of the La Preciosa Deferred Consideration.

For the year ended December 31, 2022, tax effect of adjustments of $(15.3) million (-558%) 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 and the Sterling /Crown exploration properties.

For the year ended December 31, 2021, tax effect of adjustments of $10.3 million (-27%) is primarily related to the VAT write-off.

19 unchanged sentences

RMC bankruptcy distribution (1,516) (1,651) —

VAT litigation 1,142 — —

VAT write-off — — 25,982

Loss on debt extinguishment — — 9,173

Silvertip inventory write-down — — 13,717

Silvertip suspension costs — — 7,164

Silvertip lease modification — — (4,051)

Silvertip gain on contingent consideration — — (955)

Gain on debt extinguishment (3,437) — —

COVID-19 costs 111 1,739 6,618

Novation — — 3,819

Wharf inventory write-down — — 3,323

Interest income on notes receivables (720) — —

Other adjustments 4,814 422 —

Adjusted EBITDA $ 142,302 $ 138,954 $ 216,112

$ 138,954 $ 216,112 $ 263,565

(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, year over year.

Previously, annual Adjusted EBITDA only included the current quarter LCM adjustment.

For the years ended December 31, 2022 and 2021, the modification increased the Adjusted EBITDA measure by $38.0 million and $5.3 million, respectively.

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

3 unchanged sentences

Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

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.

Year Ended December 31,

The following tables 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.

Consolidated Year Ended December 31,

(Dollars in thousands) 2023 2022 2021

2 unchanged sentences

Free cash flow $ (297,329) $ (326,738) $ (199,299)

Operating Cash Flow Before Changes in Working Capital

Management uses Operating Cash Flow Before Changes in Working Capital as a non-GAAP measure to analyze cash flows generated from operations.

Operating Cash Flow Before Changes in Working Capital is Cash Provided By (used in) Operating Activities excluding the change in Receivables , Prepaid expenses and other , Inventories and Accounts payable and accrued liabilities as presented on the Consolidated Statements of Cash Flows.

The Company believes Operating Cash Flow Before Changes in Working Capital is also useful as one of the bases for comparing the Company’s performance with its competitors.

Although Operating Cash Flow Before Changes in Working Capital and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Operating Cash Flow Before Changes in Working Capital is not necessarily comparable to such other similarly titled captions of other companies.

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.

Year Ended December 31,

Wharf Quarter Ended December 31, Year Ended December 31,

(Dollars in thousands) 2023 2023

Cash provided by (used in) operating activities $ 25,616 $ 110,482 $ 148,709

Changes in operating assets and liabilities:

Receivables (4,452) 983 9,463

Prepaid expenses and other (240) (489) 2,621

Inventories 51,448 27,628 34,538

Accounts payable and accrued liabilities (510) 7,011 (32,897)

Operating cash flow before changes in working capital $ 71,862 $ 145,615 $ 162,434

Cash flow from operations $ 28,900 $ 84,074

Capital expenditures 1,500 2,472

Free cash flow $ 27,400 $ 81,602

Costs Applicable to Sales

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.

Year Ended December 31, 2023

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

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

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

4 unchanged sentences

Silver ounces 6,534,469 3,339,780 266,156 — 10,140,405

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

1 unchanged sentence

Silver ($/oz) $ 15.17 $ 26.67 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Year Ended December 31, 2022

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

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

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

4 unchanged sentences

Silver ounces 6,695,454 3,028,986 — 47,284 — 9,771,724

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

1 unchanged sentence

Silver ($/oz) $ 13.09 $ 27.26 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Year Ended December 31, 2021

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

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

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

4 unchanged sentences

Silver ounces 6,805,816 3,241,624 — 86,397 — 10,133,837

Zinc pounds 3,203,446 3,203,446

Lead pounds 2,453,485 2,453,485

Costs applicable to sales

Gold ($/oz) $ 664 $ 1,801 $ 1,086 $ 997

Silver ($/oz) $ 9.14 $ 16.35 NM (1)

Zinc ($/lb) NM (1)

Lead ($/lb) NM (1)

(1) Due to the suspension of mining and processing activities these amounts are not meaningful.

Silver ($/oz) $ 11.97 $ 25.10 $ —

Reconciliation of Costs Applicable to Sales for 2024 Guidance

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

In thousands (except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf

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

8 unchanged sentences

Gold 51% 38% 100% 100%

Silver 49% 62%

Adjusted costs applicable to sales

1 unchanged sentence

Silver ($/oz) $16.50 - $17.50 $14.00 - $16.00

(1) With the completion of the POA 11 expansion construction expected in mid-2023, Coeur has elected to defer providing cost guidance at Rochester until mid-year 2023.

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 7. Management’s Discussion and Analysis