What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-02-21 compared with 2023-02-22 · 354 added, 398 removed, 1071 unchanged (41% of the section changed)

20 unchanged sentences

Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Ore on Leach Pads – Rochester mine

As described further in Notes 2 and 5 to the consolidated financial statements , the Company’s ore on leach pads balance of $134 million which includes the Rochester mine for a total of $109 million as of December 31, 2022.

This is a current balance of $58 million and a non-current balance of $51 million.

The measurement and valuation of the ore on leach pads balance involves significant management estimates and assumptions related to the measure of metal content of ore placed on the leach pads, including recovery rates and ore grades.

The balance is determined based on actual production costs incurred to produce and place ore on the leach pads, less costs allocated to minerals recovered through the leach process.

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Ore on Leach Pads and long-term stockpile – Rochester mine

As described further in Notes 2 and 5 to the consolidated financial statements, the Company’s ore on leach pads balance was $105 million, which includes $88 million at the Company’s Rochester mine, as of December 31, 2023.

The balance is comprised of a current balance of $62 million and a non-current balance of $26 million.

The Rochester mine long-term stockpile balance is $47 million as of December 31, 2023.

The measurement and valuation of the ore on leach pads and long-term stockpile balances involve significant management estimates and assumptions related to the measurement of metal content of ore placed on the leach pads and long-term stockpile, including estimates pertaining to recovery rates and ore grades.

The balances are determined based on actual production costs incurred to produce and place ore on the leach pads and long-term stockpile, less costs allocated to minerals recovered through the leach process.

The historical cost of metal expected to be extracted within twelve months is classified as current on the balance sheet.

We identified the measurement and valuation for the ore on leach pads for the Rochester mine as a critical audit matter.

The principal considerations for our determination that Rochester’s ore on leach pads is a critical audit matter are that certain management assumption are complex and have a higher degree of estimation uncertainty that changes in these assumptions could have a significant impact on the balance.

In turn, auditing Rochester’s ore on leach pads requires significant auditor judgement.

Our audit procedures related to Rochester’s ore on leach pads included the following, among others.

• We obtained and tested Rochester’s 2022 roll forward of the estimated ounces and costs added to, recovered from, and the resulting ending amounts of ounces and costs of the ore on leach pads balance, including testing of certain assumptions, such as recovery rates, ore grades and the related lower of cost or market analysis.

We identified the measurement and valuation for the ore on leach pads and long-term stockpile for the Rochester mine as a critical audit matter.

The principal considerations for our determination that Rochester’s ore on leach pads and long-term stockpile is a critical audit matter are that certain management assumptions are complex and have a higher degree of estimation uncertainty and changes in these assumptions could have a significant impact on the balance.

In turn, auditing these amounts required significant auditor judgement.

Our audit procedures related to Rochester’s ore on leach pads and long-term stockpile included the following, among others.

• We obtained and tested Rochester’s 2023 roll forward of the estimated ounces and costs added to, and recovered from the Company’s leach pads and stockpile and reconciled the ending amounts of ounces and costs to the Company’s inventory and production records and tested certain assumptions, such as estimated recovery rates, and ore grades.

• We tested the Company’s lower of cost or market analysis and related adjustments.

• For the roll forward of estimated ounces, we assessed the completeness and accuracy of mining production information, including tests of daily tonnage processed.

• We evaluated management’s laboratory procedures related to assay testing used to estimate ore grade.

• We evaluated the Company’s use of specialists and their qualifications and experience related to their input on the recovery rates and ore grades estimates used by management in its calculation of ore on leach pads.

• We assessed the estimated timing of recoveries, which management uses in classifying current and non-current portions of the ore on leach pads balance.

• We tested the effectiveness of management’s controls over mining production information, estimating the recovery rates, ore grades, and inventory roll forward related to recording Rochester’s balance of ore on leach pads.

• We tested the effectiveness of management’s controls over mining production information, estimating the recovery rates, ore grades, lower of cost or market calculations, and inventory roll forward related to recording Rochester’s balance of ore on leach pads and long-term stockpile.

/s/ Grant Thornton LLP

41 unchanged sentences

Prepaid expenses and other 18,526 25,814

Assets held for sale 21 — 54,240

267,255 300,432

NON-CURRENT ASSETS

Property, plant and equipment, net 392,320 319,967

Mining properties, net 997,435 852,799

Property, plant and equipment and mining properties, net 7 1,688,288 1,389,755

Ore on leach pads 5 25,987 51,268

10 unchanged sentences

Reclamation 10 10,954 5,796

Liabilities held for sale 21 — 11,269

289,613 219,360

31 unchanged sentences

OTHER INCOME (EXPENSE), NET

Loss on debt extinguishment — ( 9,173 ) —

Gain (loss) on debt extinguishment 9 3,437 — ( 9,173 )

Fair value adjustments, net 13 3,384 ( 66,668 ) ( 543 )

27 unchanged sentences

Deferred taxes ( 1,495 ) ( 18,450 ) ( 10,932 )

Loss on debt extinguishment 10 — 9,173 —

Gain on debt extinguishment 9 ( 3,437 ) — 9,173

Fair value adjustments, net 13 ( 3,384 ) 63,529 543

Stock-based compensation 12 11,361 10,030 13,660

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

Gain on the sale of Sterling/Crown — ( 62,249 ) —

Loss on the sale of assets 25,197 — —

Write-downs 5 40,247 45,978 38,596

12 unchanged sentences

Sale of investments 47,611 40,469 935

Proceeds from notes receivable 5,000 — —

Other ( 239 ) ( 107 ) ( 99 )

4 unchanged sentences

Payments on debt, finance leases, and associated costs 8, 9 ( 528,541 ) ( 338,721 ) ( 430,101 )

Silvertip contingent consideration — — ( 18,750 )

Other ( 2,370 ) ( 3,661 ) ( 4,256 )

18 unchanged sentences

Other comprehensive income (loss) — — — — 9,924 9,924

Common stock issued for Silvertip contingent consideration payment 878 9 5,286 — — 5,295

Common stock issued for investment 12,786 128 118,649 118,777

Common stock issued/canceled under long-term incentive plans and director fees and options, net 381 3 9,401 — — 9,404

2 unchanged sentences

Other comprehensive income (loss) — — — — 13,555 13,555

Common stock issued for investment 12,786 128 118,649 118,777

Common stock issued under "at the market"

stock offering 36,820 368 146,547 — — 146,915

Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,959 20 6,371 — — 6,391

4 unchanged sentences

stock offering 54,562 546 147,020 — — 147,566

Common stock issued/canceled under long-term incentive plans and director fees and options, net 1,959 20 6,371 — — 6,391

Common stock issued for the extinguishment of Senior Notes 25,191 253 71,999 — — 72,252

Common stock issued under Private Placement Offering 8,276 83 20,935 — — 21,018

Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 2,556 24 8,651 — — 8,675

Balances at December 31, 2023 386,283 $ 3,863 $ 4,139,870 $ ( 3,121,161 ) $ 1,331 $ 1,023,903

13 unchanged sentences

A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce.

Further, the carrying value of the Company’s property, plant and equipment, net;

mining properties, net;

inventories and ore on leach pads are particularly sensitive to the outlook for commodity prices.

Further, the carrying value of the Company’s property, plant and equipment and mining properties, net, inventories and ore on leach pads are particularly sensitive to the outlook for commodity prices.

A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets.

In addition to changes in commodity prices, other factors such as changes in mine plans, increases in costs, geotechnical failures, changes in social, environmental or regulatory requirements and impacts of global events such as the COVID-19 pandemic could result in material impairment charges related to these assets.

In addition to changes in commodity prices, other factors such as changes in mine plans, increases in costs, geotechnical failures, changes in social, environmental or regulatory requirements and impacts of global events such as future pandemics could result in material impairment charges related to these assets.

Use of Estimates

8 unchanged sentences

All intercompany balances and transactions have been eliminated.

Reclassifications

Certain amounts and disclosures in prior years have been reclassified to conform to the current year presentation.

Cash and Cash Equivalents

7 unchanged sentences

Notes to Consolidated Financial Statements

Trade receivables and other receivable balances are reported at outstanding principal amounts, net of an allowance for doubtful accounts, if deemed necessary.

Management evaluates the collectability of receivable account balances to determine the allowance, if any.

Management considers the other party's credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance.

Receivable balances are written off when management determines that the balance is uncollectible.

Trade receivables and other receivable balances are recognized net of an allowance for credit losses.

The allowance represents the portion of the amortized cost basis that the Company does not expect to collect due to credit over the contractual life of the receivables, taking into considered past events, current conditions and reasonable and supportable forecasts of future economic conditions.

As of December 31, 2023, the amount of credit loss recognized is not significant.

Ore on Leach Pads

1 unchanged sentence

The Company uses several integrated steps to scientifically measure the metal content of ore placed on the leach pads.

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.

As the ore body is drilled in preparation for the blasting process, samples are taken of the drill residue and 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.

3 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.

15 unchanged sentences

Metal inventory costs include direct labor, materials, depreciation, depletion and amortization as well as overhead costs relating to mining activities.

Property, Plant, and Equipment

Property, Plant, and Equipment and Mining Properties, Net

Expenditures for new facilities, assets acquired pursuant to finance leases, new assets or expenditures that extend the useful lives of existing facilities are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the shorter of estimated productive lives of such facilities, lease term, or the useful life of the individual assets.

1 unchanged sentence

Certain mining equipment is depreciated using the units-of-production method based upon estimated total proven and probable reserves.

Mining Properties and Mine Development

Capitalization of mine development costs begins once all operating permits have been secured, mineralization is classified as proven and probable reserves and a final feasibility study has been completed.

Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines.

Costs incurred before mineralization are classified as proven and probable reserves and are capitalized if a project is in pre-production phase or expensed and classified as Exploration or Pre-development if the

Costs incurred before mineralization are classified as proven and probable reserves are capitalized if a project is in pre-production phase or expensed and classified as Exploration or Pre-development if the project is not yet in pre-production.

Mine development costs are amortized using the units-of-production method over the

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

project is not yet in pre-production.

Mine development costs are amortized using the units-of-production method over the estimated life of the ore body generally based on recoverable ounces to be mined from proven and probable reserves.

estimated life of the ore body generally based on recoverable ounces to be mined from proven and probable reserves.

Interest expense allocable to the cost of developing mining properties and to construct new facilities is capitalized until assets are ready for their intended use.

7 unchanged sentences

The costs of a drilling program that meet these criteria are capitalized as mine development costs.

Drilling and related costs of approximately $ 21.6 million and $ 19.9 million at December 31, 2022 and 2021, respectively, were capitalized.

Drilling and related costs of approximately $ 10.0 million and $ 21.6 million in the years ended December 31, 2023 and 2022, respectively, were capitalized.

The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine.

Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory.

Mineral Interests

Significant payments related to the acquisition of land and mineral rights are capitalized.

7 unchanged sentences

Asset impairment is considered to exist if the total estimated undiscounted pretax future cash flows are less than the carrying amount of the asset.

In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of future cash flows from other asset groups.

In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups.

An impairment loss is measured by discounted estimated future cash flows, and recorded by reducing the asset's carrying amount to fair value.

9 unchanged sentences

Actual results may vary from the Company’s estimates and result in additional Impairment of Long-lived Assets .

Restricted Assets

The Company, under the terms of its self-insurance and bonding agreements with certain banks, lending institutions and regulatory agencies, is required to collateralize certain portions of its obligations.

The Company has collateralized these

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Properties Held for Sale

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

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

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

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

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

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

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

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

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

At September 30, 2021, the La Preciosa project met the held for sale criteria.

However, considering that the La Preciosa project was not an operating mine, the Company determined that the expected disposal of the La Preciosa project did not represent a strategic shift that had a major effect on the entity's results and operations, therefore, the applicable assets, liabilities presented at December 31, 2021 are classified on the Consolidated Balance Sheets as held for sale.

The operating results for the applicable period presented are not presented separately as held for sale.

The closing of the sale of the La Preciosa project occurred on March 21, 2022.

See Note 21 -- Dispositions.

Restricted Assets

The Company has collateralized these obligations by assigning certificates of deposit that have maturity dates ranging from three months to a year, to the respective institutions or agencies.

obligations by assigning certificates of deposit that have maturity dates ranging from three months to a year, to the respective institutions or agencies.

At December 31, 2023 and 2022, the Company held certificates of deposit and cash under these agreements of $ 9.1 million and $ 9.0 million, respectively.

24 unchanged sentences

See Note 10 -- Reclamation for additional information.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Foreign Currency

13 unchanged sentences

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

Changes in the value of derivative instruments not designated as hedging instruments are recorded each period in the Consolidated Statements of Comprehensive Income (Loss) in Fair value adjustments, net or Revenue .

Changes in the value of derivative

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

instruments not designated as hedging instruments are recorded each period in the Consolidated Statements of Comprehensive Income (Loss) in Fair value adjustments, net or Revenue .

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.

1 unchanged sentence

Stock-based Compensation

The Company estimates the fair value of stock options using the Black-Scholes option pricing model and stock appreciation rights (“SARs”) awards using market comparison.

Stock options granted are accounted for as equity-based awards and SARs are accounted for as liability-based awards.

The value of the SARs is remeasured at each reporting date.

The Company estimates the fair value of stock options using the Black-Scholes option pricing model using market comparison.

Stock options granted are accounted for as equity-based awards.

The Company estimates forfeitures of stock-based awards based on historical data and periodically adjusts the forfeiture rate.

13 unchanged sentences

The Company produces doré and concentrate that is shipped to third-party refiners and smelters, respectively, for processing.

The Company enters into contracts to sell its metal to various third-party customers which may include the refiners

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

and smelters that process the doré and concentrate.

The Company enters into contracts to sell its metal to various third-party customers which may include the refiners and smelters that process the doré and concentrate.

The Company’s performance obligation in these transactions is generally the transfer of metal to the customer.

14 unchanged sentences

The performance obligation is satisfied when risk of loss is transferred to the customer.

The Company recognizes revenue from concentrate sales, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer.

For doré and off-take sales, the Company may incur a finance charge related to advance sales that is not considered significant and, as such, is not considered a separate performance obligation.

In addition, the Company has elected to treat freight costs as a fulfillment cost under ASC 606 and not as a separate performance obligation.

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

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

The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.

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

See Note 19 -- Commitments and Contingencies for additional detail.

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

Year Ended December 31,

In thousands 2022 2021 2020

Opening Balance $ 8,150 $ 9,376 $ 11,061

Revenue Recognized ( 739 ) ( 1,226 ) ( 1,685 )

Closing Balance $ 7,411 $ 8,150 $ 9,376

In December 2021, the Company received a $ 15.0 million prepayment (the “December 2021 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 19 -- Commitments and Contingencies).

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

The Amended Sales Contract was further amended in June 2022 to consolidate the remaining deliveries of $ 15.0 million and $ 10.0 million under the December 2021 Prepayment and March 2022 Prepayment (the “June 2022 Consolidated Prepayment”).

In December 2022, the Company exercised an option to receive a $ 25.0 million prepayment (the “December 2022 Prepayment”) concurrent with the repayment of the June 2022 Consolidated Prepayment in full.

The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer.

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

See Note 19 -- Commitments and Contingencies for additional detail.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

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

Year Ended December 31,

In thousands 2022 2021 2020

Opening Balance $ 15,016 $ 15,003 $ 15,009

Additions 36,020 30,013 30,177

Revenue Recognized ( 26,020 ) ( 30,000 ) ( 30,183 )

Closing Balance $ 25,016 $ 15,016 $ 15,003

Recently Issued Accounting Standards

The Company recognizes revenue from concentrate sales, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer.

For doré and off-take sales, the Company may incur a finance charge related to advance sales that is not considered significant and, as such, is not considered a separate performance obligation.

In addition, the Company has elected to treat freight costs as a fulfillment cost under ASC 606 and not as a separate performance obligation.

Recently Adopted Accounting Standards

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

3 unchanged sentences

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

The Company plans to adopt the new derivatives and hedging standards effective January 1, 2023 and does not expect the new derivatives and hedging standard to have a material effect on our financial position, results of operations or cash flows.

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

Recently Issued Accounting Standards

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” , which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The guidance is to be applied retrospectively to all prior periods presented in the financial statements.

Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption.

We are currently evaluating the potential impact of adopting this new guidance on our Consolidated Financial Statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign).

ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes.

The guidance is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

We are currently evaluating the potential impact of adopting this new guidance on our Consolidated Financial Statements and related disclosures.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 3 – SEGMENT REPORTING

16 unchanged sentences

Other income (expense)

Gain on debt extinguishment — — — — — 3,437 3,437

Fair value adjustments, net — — — — — 3,384 3,384

10 unchanged sentences

(3) See Note 15 -- Additional Comprehensive Income (Loss) Detail for additional detail

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total

9 unchanged sentences

Other income (expense)

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

Fair value adjustments, net — — — — — ( 66,668 ) ( 66,668 )

10 unchanged sentences

(3) See Note 15 -- Additional Comprehensive Income (Loss) Detail for additional detail

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31, 2021 Palmarejo Rochester Kensington Wharf Silvertip Other Total

1 unchanged sentence

Silver sales 170,176 81,163 370 2,208 — — 253,917

Zinc sales — — — — ( 662 ) — ( 662 )

Lead sales — — — — 1,315 — 1,315

Metal sales 320,274 130,822 215,005 166,727 — — 832,828

6 unchanged sentences

Other income (expense)

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

Fair value adjustments, net — — — — — ( 543 ) ( 543 )

15 unchanged sentences

Total consolidated assets $ 2,080,848 $ 1,846,143

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Geographic Information

9 unchanged sentences

Mexico 313,207 303,434 320,274

Canada — — 1,883

Total $ 821,206 $ 785,636 $ 832,828

The Company's doré, as well as the concentrate product produced by the Wharf mine, is refined into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company's doré, as well as the electrolytic cathodic sludge produced by the Wharf mine, is refined into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets.

The Company then sells its gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe.

The Company had five trading counterparties at December 31, 2022.

The Company's sales of doré or concentrate product produced by the Palmarejo, Rochester, and Wharf mines amounted to approximately 74 %, 74 %, and 72 %, of total metal sales for the years ended December 31, 2022, 2021, and 2020, respectively.

The Company's gold concentrate product from the Kensington mine and the zinc and lead concentrates from the Silvertip exploration property are or were sold under a variety of agreements with smelters and traders, and the smelters and traders pay the Company for the metals recovered from the concentrates.

The Company’s sales of concentrate produced by the Kensington and Silvertip exploration property (solely in 2020 for periods prior to the suspension of active mining operations) amounted to approximately 26 %, 26 %, and 28 % of total metal sales for the years ended December 31, 2022, 2021, and 2020, respectively.

The Company had seven trading counterparties at December 31, 2023.

The Company's sales of doré or electrolytic cathodic sludge product produced by the Palmarejo, Rochester, and Wharf mines amounted to approximately 80 %, 74 %, and 74 %, of total metal sales for the years ended December 31, 2023, 2022, and 2021, respectively.

The Company's gold concentrate product from the Kensington mine is sold under a long term offtake agreement and is shipped to geographically diverse third-party smelters who are responsible for arranging the smelting of the concentrate.

The Company’s sales of concentrate produced by the Kensington amounted to approximately 20 %, 26 %, and 26 % of total metal sales for the years ended December 31, 2023, 2022, and 2021, respectively.

The Company believes that the loss of any one smelter, refiner, trader or third-party customer would not have a material adverse effect on the Company due to the liquidity of the markets and current availability of alternative trading counterparties.

The following table indicates customers that represent 10% or more of total sales of metal for at least one of the years December 31, 2022, 2021, and 2020 (in millions):

The following table indicates customers that represent 10% or more of total sales of metal for at least one of the years ended December 31, 2023, 2022, and 2021 (in millions):

Year ended December 31,

1 unchanged sentence

Bank of Montreal $ 367.2 $ 341.5 $ 98.7 Palmarejo, Rochester, Wharf

Ocean Partners 168.9 176.4 161.0 Palmarejo, Kensington, Silvertip

Ocean Partners $ 346.2 $ 168.9 $ 176.4 Palmarejo, Kensington

Asahi $ 63.7 $ 125.3 $ 323.8 Palmarejo, Rochester, Kensington, Wharf

Argor-Heraeus 49.3 23.3 79.9 Palmarejo, Rochester

Toronto Dominion Bank 26.5 61.9 88.6 Rochester

Techemet Metal Trading — 62.2 81.8 Rochester, Wharf

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 4 – RECEIVABLES

6 unchanged sentences

Avino note receivable (1)

Gold forwards realized gains (2)

Gold and silver forwards realized gains (2)

Other 721 586

1 unchanged sentence

Non-current receivables:

Other tax receivable (3)

Deferred cash consideration (1)

Contingent consideration (1)

13,195 14,346

$ 23,140 $ 22,023

Total receivables $ 54,175 $ 58,356

(1) See Note 13 -- Fair Value Measurements for additional details on the Avino note receivable, deferred cash consideration and contingent consideration.

(2) Represents realized gains on gold forward hedges from December 2022 that contractually settle in subsequent months.

See Note 15 -- Derivative Financial Instruments & Hedging for additional details on the gold forward hedges.

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

See Note 14 -- Derivative Financial Instruments & Hedging for additional details on the gold and silver forward hedges.

(3) Consists of exploration credit refunds at Silvertip.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

13 unchanged sentences

Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method.

In the year ended December 31, 2022, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value, which resulted in non-cash write downs of $ 52.5 million ($ 46.0 million was recognized in Costs Applicable to Sales and $ 6.6 million in Amortization).

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

In the year ended December 31, 2023, the cost of stock pile, leach pad and metal inventory at Rochester exceeded its net realizable value, which resulted in non-cash write down of $ 45.6 million ($ 39.9 million was recognized in Costs applicable to sales and $ 5.8 million in Amortization ) .

NOTE 6 – INVESTMENTS

Equity Securities

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

At December 31, 2022

In thousands Cost Gross

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

The Company had no outstanding investments in equity securities as of December 31, 2023.

At December 31, 2023 At December 31, 2022

In thousands Cost Estimated

Fair Value Cost Gross

Gains Estimated

7 unchanged sentences

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

At December 31, 2021

In thousands Cost Gross

Gains Estimated

Equity Securities

Victoria Gold Corp.

$ 128,710 $ ( 4,499 ) $ — $ 124,211

Integra Resources Corp.

9,455 ( 1,469 ) — 7,986

Equity securities $ 138,165 $ ( 5,968 ) $ — $ 132,197

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

See Note 13 -- Fair Value Measurements for additional details.

On June 28, 2022, the Company entered into an agreement to sell 5.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”) at a price of $ 8.34 per Victoria Gold Common Share, which settled on July 5, 2022 for net proceeds of $ 40.5 million.

The Company realized a loss of $ 15.6 million on the sale of the Victoria Gold Common Shares, which are recognized in Fair value adjustments, net.

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

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

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

See Note 21 -- Dispositions for additional details on the sale.

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

In thousands December 31, 2022 December 31, 2021

Land $ 8,242 $ 8,480

Facilities and equipment 652,783 668,089

Assets under finance leases 148,174 115,652

$ 809,199 $ 792,221

Accumulated amortization (1)

( 652,898 ) ( 620,303 )

$ 156,301 $ 171,918

Construction in progress 236,019 148,049

Property, plant and equipment, net $ 392,320 $ 319,967

(1) Includes $ 80.3 million and $ 63.9 million of accumulated amortization related to assets under finance leases at December 31, 2022 and December 31, 2021, respectively.

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

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.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

NOTE 8 – MINING PROPERTIES

Mining properties consist of the following (in thousands):

December 31, 2022 Palmarejo Rochester Kensington Wharf Silvertip Sterling Other Total

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT AND MINING PROPERTIES, NET

Property, plant and equipment and mining properties, net consist of the following:

In thousands December 31, 2023 December 31, 2022

Mine development $ 1,358,189 $ 1,533,385

Accumulated amortization ( 226,437 ) ( 161,305 ) ( 327,499 ) ( 25,306 ) ( 12,622 ) — — ( 753,169 )

110,219 476,016 82,756 42,020 69,205 — — 780,216

Mineral interests 809,912 821,112

Accumulated amortization ( 542,886 ) — — ( 36,179 ) ( 24,828 ) — — ( 603,893 )

Land 8,318 8,242

Facilities and equipment (1)

947,435 800,957

Mining properties, net $ 196,636 $ 495,114 $ 82,756 $ 53,903 $ 158,413 $ — $ 10,613 $ 997,435

As further discussed in Note 21 -- Dispositions, the consideration for the sale of La Preciosa project included two royalties, a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas.

The fair value of the royalties was $ 11.2 million, valued as of the date of closing of the transaction.

December 31, 2021 Palmarejo Rochester Kensington Wharf Silvertip Sterling Other Total

Mine development $ 307,698 $ 437,833 $ 382,492 $ 49,045 $ 67,805 $ 3,861 $ — $ 1,248,734

Accumulated amortization ( 211,187 ) ( 158,805 ) ( 302,582 ) ( 24,358 ) ( 11,685 ) ( 1,515 ) — ( 710,132 )

Construction in progress (2)

612,865 236,019

Mineral interests 629,303 19,098 — 48,062 114,036 95,499 — 905,998

Accumulated amortization ( 532,155 ) — — ( 34,818 ) ( 24,828 ) — — ( 591,801 )

Total $ 3,736,719 $ 3,399,715

Accumulated depreciation, depletion and amortization (3)

( 2,048,431 ) ( 2,009,960 )

Mining properties, net $ 193,659 $ 298,126 $ 79,910 $ 37,931 $ 145,328 $ 97,845 $ — $ 852,799

Property, plant and equipment and mining properties, net $ 1,688,288 $ 1,389,755

(1) Includes $ 127.6 million and $ 148.2 million associated with facilities and equipment assets under finance leases at December 31, 2023 and December 31, 2022, respectively.

(2) Includes $ 471.7 million and $ 139.7 million of construction costs related to the Rochester Expansion project at December 31, 2023 and December 31, 2022, respectively.

(3) Includes $ 37.6 million and $ 80.3 million of accumulated amortization related to assets under finance leases at December 31, 2023 and December 31, 2022, respectively.

NOTE 8 – LEASES

9 unchanged sentences

Total finance lease cost $ 31,747 $ 26,655 $ 26,317

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental cash flow information related to leases was as follows:

6 unchanged sentences

Financing cash flows from finance leases $ 24,505 $ 31,316 $ 31,544

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental balance sheet information related to leases was as follows:

30 unchanged sentences

Net lease obligation $ 16,315 $ 75,194

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 9 – DEBT

9 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

2029 Senior Notes

4 unchanged sentences

The 2029 Senior Notes will mature on February 15, 2029 and are fully and unconditionally guaranteed by the Guarantors.

At any time prior to February 15, 2024, the Company may redeem all or part of the 2029 Senior Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) a make-whole premium as of the date of redemption, plus (iii) accrued and unpaid interest and additional interest, if any, thereon, to the date of redemption.

In addition, the Company may redeem some or all of the 2029 Senior Notes on or after February 15, 2024, at redemption prices set forth in the Indenture, together with accrued and unpaid interest.

At any time prior to February 15, 2024, the Company may use the proceeds of certain equity offerings to redeem up to 35% of the aggregate principal amount of the 2029 Senior Notes, including any permitted additional 2029 Senior Notes, at a redemption price equal to 105.125 % of the principal amount.

As of February 15, 2024, the Company may redeem some or all of the 2029 Senior Notes at redemption prices set forth in the Indenture, together with accrued and unpaid interest.

The Indenture contains covenants that, among other things, limit the Company’s ability under certain circumstances to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem capital stock, prepay, redeem or repurchase certain debt, make loans and investments, create liens, sell, transfer or otherwise dispose of assets, enter into transactions with affiliates, enter into agreements restricting the Company's subsidiaries' ability to pay dividends and impose conditions on the Company’s ability to engage in mergers, consolidations and sales of all or substantially all of its assets.

1 unchanged sentence

If an Event of Default has occurred and is continuing, the Trustee or the holders of not less than 25% in aggregate principal amount of the 2029 Senior Notes then outstanding may, and the Trustee at the request of the holders of not less than 25% in aggregate principal amount of the 2029 Senior Notes then outstanding shall, declare all unpaid principal of, premium, if any, and accrued interest on all the 2029 Senior Notes to be due and payable.

2024 Senior Notes

Concurrent with the offering of the 2029 Senior Notes, the Company commenced a cash tender offer (the “Tender Offer”) to purchase the outstanding $ 230.0 million in aggregate principal amount of its 5.875 % Senior Notes due 2024 (the “2024 Senior Notes”).

The Tender Offer was made on the terms and subject to the conditions set forth in the Offer to Purchase dated February 22, 2021.

The Tender Offer expired at 5:00 p.m., New York City time, on February 26, 2021 (the “Expiration Time”).

Holders of the 2024 Senior Notes who tendered (and did not validly withdraw) their notes at or prior to the Expiration Time were entitled to receive in cash $ 1,029.38 per $1,000 principal amount of 2024 Senior Notes validly tendered (and not validly withdrawn) and accepted for purchase by the Company in the Tender Offer, plus accrued and unpaid interest on such 2024 Senior Notes.

$ 102.8 million aggregate principal amount of the 2024 Senior Notes were validly tendered and purchased by the Company on March 1, 2021.

In accordance with the terms of the indenture governing the 2024 Senior Notes, the remaining $ 127.2 million aggregate principal amount of the 2024 Senior Notes were redeemed on March 31, 2021 at the redemption price specified in the indenture governing the 2024 Senior Notes ($ 1,029.38 per $1,000 principal amount redeemed, plus accrued and unpaid interest).

The Company recorded a loss of $ 9.2 million as a result of the extinguishment of the 2024 Senior Notes.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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.

Based on the closing price of the Company’s common stock on the dates of the exchanges, the exchanges resulted in an aggregate gain of $ 3.4 million on debt extinguishment.

The exchange transactions represent non-cash financing activity in the Consolidated Statement of Cash Flow.

Revolving Credit Facility

4 unchanged sentences

On December 14, 2020, the Company entered into an amendment to the Credit Agreement to increase the RCF from $ 250.0 million to $ 300.0 million and to include ING Capital LLC as an incremental lender on the RCF.

On March 1, 2021, the Company entered into a fifth amendment to the Credit Agreement to, among other things, (i) extend the maturity date of the RCF to March 2025 and (ii) permit the Company to obtain one or more increases of the RCF, which is currently in the amount of $ 300.0 million, 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.

On March 1, 2021, the Company entered into a fifth amendment to the Credit Agreement to, among other things, (i) extend the maturity date of the RCF to March 2025 and (ii) permit the Company to obtain one or more increases of the RCF, then-currently in the amount of $ 300.0 million, 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.

On May 2, 2022, the Company entered into an amendment (the “May Amendment”) to the Credit Agreement to increase the RCF from $ 300.0 million to $ 390.0 million and to include Goldman Sachs Bank USA as a lender on the RCF.

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

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

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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, 2023 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.

The RCF is secured by substantially all of the assets of the Company and its U.S.

3 unchanged sentences

Obligations under the RCF may be accelerated upon the occurrence of certain customary events of default.

At December 31, 2022, the Company had $ 80.0 million drawn at an interest rate of 7.9 %, $ 29.6 million in outstanding letters of credit and $ 280.4 million available under the RCF.

At December 31, 2023, the Company had $ 175.0 million drawn at a weighted-average interest rate of 9.2 %, $ 29.6 million in outstanding letters of credit and $ 185.4 million available under the RCF.

Future borrowing may be subject to certain financial covenants.

1 unchanged sentence

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

In the year ended December 31, 2022, the Company entered into new lease financing arrangements for mining equipment at Rochester and Kensington.

Coeur secured a finance lease package for nearly $ 60.0 million in 2021, of which $ 55.7 million has been funded as of December 31, 2022.

This package is earmarked for planned equipment purchases for Rochester’s POA 11 in 2021, 2022 and 2023 and has an interest rate of 5.2 %.

In the year ended December 31, 2023, the Company entered into new lease financing arrangements for mining equipment at Rochester and Kensington for $ 35.2 million.

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

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

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

All finance lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.

See Note 9 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

For more details, please see Note 8 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.

Interest Expense

9 unchanged sentences

Total interest expense, net of capitalized interest $ 29,099 $ 23,861 $ 16,451

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 10 – RECLAMATION

3 unchanged sentences

The estimated reclamation and mine closure costs were discounted using credit-adjusted, risk-free interest rates ranging from 7.2 % to 10.0 %.

The asset retirement obligation increased in 2022 due to overall inflationary impacts, increased reclamation and mine closure costs at Rochester associated with work completed to date for POA 11 and additional costs at Wharf and Rochester associated with the existing open pit and leach pad operations.

The asset retirement obligation increased in 2023 due to overall inflationary impacts, increased reclamation and mine closure costs at Rochester associated with the POA 11 expansion project and additional costs at Wharf and Rochester associated with the existing open pit and leach pad operations.

This was partially offset by a decrease at Kensington attributable to the timing of reclamation and mine closure costs resulting from the mine life extension.

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

3 unchanged sentences

Accretion 16,405 14,232

Additions and changes in estimates 13,001 34,927

Additions and changes to estimates 991 13,001

Disposition of Sterling/Crown exploration properties — ( 1,840 )

1 unchanged sentence

Asset retirement obligation - Ending (1)

$ 214,013 $ 202,431

(1) December 31, 2023 includes $11.0 million of asset retirement obligation that is expected to be paid in the next twelve months.

NOTE 11 – INCOME AND MINING TAXES

6 unchanged sentences

The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31,

10 unchanged sentences

Income tax (expense) benefit $ ( 35,156 ) $ ( 14,658 ) $ ( 34,958 )

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

15 unchanged sentences

At December 31, 2023 and 2022, the significant components of the Company’s deferred tax assets and liabilities are below:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31,

1 unchanged sentence

Deferred tax liabilities:

Royalty and other long-term debt — 1,495

Other $ — $ —

Deferred tax assets:

18 unchanged sentences

Based upon this analysis, the Company has recorded valuation allowances as follows:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31,

18 unchanged sentences

Foreign tax credits expire if unused beginning in 2024.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The utilization of U.S.

15 unchanged sentences

The Company does not expect this to impact its net operating loss usage.

The Company intends to indefinitely reinvest earnings from Mexican operations.

In prior years, the Company had asserted that earnings from its Mexican operations were indefinitely reinvested;

however, the Company now intends to repatriate certain earnings from its Mexican operations and has provided deferred income taxes on the planned distributions.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

A reconciliation of the beginning and ending amount related to unrecognized tax benefits is below (in thousands):

8 unchanged sentences

Unrecognized tax benefits at December 31, 2023 $ 2

At December 31, 2022, 2021, and 2020, $ 4 thousand, $ 0.3 million, and $ 0.7 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company’s effective tax rate.

At December 31, 2023, 2022, and 2021, $ 2 thousand, $ 4 thousand, and $ 0.3 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company’s effective tax rate.

The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates.

6 unchanged sentences

As a result of statutes of limitations that will begin to expire within the next 12 months in various jurisdictions and possible settlement of audit-related issues with taxing authorities in various jurisdictions with respect to which none of these issues are individually significant, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease less than $ 0.1 million in the next 12 months.

The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of nil , $ 0.4 million, and $ 1.1 million at December 31, 2022, 2021, and 2020, respectively.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of nil , nil , and $ 0.4 million at December 31, 2023, 2022, and 2021, respectively.

NOTE 12 – STOCK-BASED COMPENSATION

7 unchanged sentences

Holders of restricted stock are entitled to vote the shares and to receive any dividends declared on the shares.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes restricted stock activity for the years ended December 31, 2023, 2022, and 2021:

45 unchanged sentences

(1) Includes 1,421 additional shares granted and 141,894 shares cancelled in connection with the vesting of the 2018 award in 2021 due to above-target and below target performance, respectively, in accordance with the terms of the award.

(2) Includes 1,421 additional shares granted and 141,894 shares cancelled in connection with the vesting of the 2018 award in 2021 due to above-target and below target performance, respectively, in accordance with the terms of the award.

(2) Includes 175,828 additional shares granted in connection with the vesting of the 2019 award in 2022 due to above-target in accordance with the terms of the award.

(3) Includes 26,200 additional shares granted and 468,393 shares cancelled in connection with the vesting of the 2020 award in 2023 due to above-target and below target performance in accordance with the terms of the award.

At December 31, 2023, there was $ 4.3 million of unrecognized compensation cost related to performance shares to be recognized over a weighted average period of 1.4 years.

Stock Options and Stock Appreciation Rights

Stock options and stock appreciation rights (SARs) granted under the Company’s incentive plans generally vest over three years and are exercisable over a period not to exceed ten years from the grant date.

Stock Options

Stock options granted under the Company’s incentive plans generally vest over three years and are exercisable over a period not to exceed ten years from the grant date.

The exercise price of stock options is equal to the fair market value of the shares on the date of the grant.

The value of each stock option award is estimated using the Black-Scholes option pricing model.

Stock options are accounted for as equity awards and SARs are accounted for as liability awards and remeasured at each reporting date.

SARs, when vested, provide the participant the right to receive cash equal to the excess of the market price of the shares over the exercise price when exercised.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes stock option and SAR activity for the years ended December 31, 2022, 2021, and 2020:

Stock Options SARs

Stock options are accounted for as equity awards.

The following table summarizes stock option activity for the years ended December 31, 2023, 2022, and 2021:

Stock Options

Shares Weighted

Price Shares Weighted

Outstanding at December 31, 2020 222,273 $ 15.44

3 unchanged sentences

Outstanding at December 31, 2021 131,253 $ 16.91

Exercised ( 57,721 ) 7.74 — —

Canceled/forfeited ( 5,598 ) 11.88

4 unchanged sentences

Outstanding at December 31, 2023 54,330 $ 7.49

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes outstanding stock options as of December 31, 2023:

20 unchanged sentences

Fair value adjustments, net $ 3,384 $ ( 66,668 ) $ ( 543 )

(1) Includes unrealized losses on held equity securities of $ 47.9 million, $ 10.4 million, and $ 16.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.

(1) Includes unrealized losses on held equity securities of nil, $47.9 million, and $10.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3).

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

2 unchanged sentences

In thousands Total Level 1 Level 2 Level 3

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

Provisional metal sales contracts $ 318 $ — $ 318 $ —

Silver forwards 3,312 — 3,312 —

$ 3,630 $ — $ 3,630 $ —

Gold forwards

$ 1,981 $ — $ 1,981 $ —

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value at December 31, 2022

In thousands Total Level 1 Level 2 Level 3

Equity securities $ 132,197 $ 132,197 $ — $ —

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

Provisional metal sales contracts 299 — 299 —

$ 132,283 $ 132,197 $ 86 $ —

Gold zero cost collars

Gold forwards 12,343 — 12,343 —

$ 56,794 $ 43,893 $ 12,901 $ —

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

$ 1,374 $ — $ 1,374 $ —

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

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

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

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

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

The model inputs can generally be verified and do not involve significant management judgment.

1 unchanged sentence

The Company’s provisional metal sales contracts include concentrate and certain doré sales contracts that are valued using pricing models with inputs derived from observable market data, including forward market prices.

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

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

No assets or liabilities were transferred between fair value levels in the year ended December 31, 2023.

In May 2021, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Orion Co-VI Ltd.

Pursuant to the Exchange Agreement, Orion sold 11,067,714 common shares of Victoria Gold to the Company.

As consideration for the purchase of Victoria Gold shares, Coeur issued 12,785,485 shares of its common stock to Orion.

The Exchange Agreement provided that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement.

The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.

The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired in October 2021 and the outstanding liability was written off.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the year ended December 31, 2021.

December 31, 2021

In thousands Balance at the beginning of the period Initial valuation Revaluation Settlements Balance at the

Exchange agreement embedded derivative $ — $ 9,933 $ ( 9,933 ) $ — $ —

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

1 unchanged sentence

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

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

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

2029 Senior Notes (1)

6 unchanged sentences

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

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

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

2029 Senior Notes (1)

6 unchanged sentences

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

As further discussed in Note 21 -- Dispositions, the consideration for the sale of La Preciosa project was a promissory note payable to the Company that matures in March 2023 and deferred cash consideration payable on the first anniversary of initial production from any portion of the La Preciosa project.

In March 2022, the Company completed the sale of the La Preciosa project.

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

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

1 unchanged sentence

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

In addition, the Company has assets initially measured at fair value at inception and remeasured at fair value on a nonrecurring basis such as the royalties and contingent consideration received in connection with dispositions.

The consideration for the sale of La Preciosa project also included two royalties:

a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, and contingent consideration of $ 0.25 per silver equivalent ounce (adjusted for inflation) on any new mineral reserves discovered and declared outside of the current resources area at the La Preciosa project, up to a maximum payment of $ 50.0 million.

The fair value of the royalties and the contingent consideration assets were $ 11.2 million and $ 1.2 million, respectively, valued as of the date of closing of the transaction and are measured at fair value on a non-recurring basis.

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

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

The significant unobservable inputs included assumptions related to metal prices which assumed silver prices ranging from $ 22 to $ 25 per ounce and gold prices ranging from $ 1,700 to $ 1,930 per ounce as well as volatility assumptions for silver and gold prices ( 33.5 % and 19.0 %, respectively), and an assumed weighted average cost of capital of 15.5 %.

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

a 1.25 % net smelter returns royalty on properties covering the Gloria and

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

As further discussed in Note 21 -- Dispositions, the consideration for the sale of Sterling/Crown exploration properties included the right to an additional payment of $ 50.0 million should the Buyer, its affiliates or its successors report gold resources in the Sterling/Crown exploration properties (including any in-situ ounces mined after the closing of the Transaction) equal to or greater than 3,500,000 gold ounces, subject to certain additional terms and conditions detailed in the stock purchase agreement.

Abundancia areas of the La Preciosa project and a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, and contingent consideration of $ 0.25 per silver equivalent ounce (adjusted for inflation) on any new mineral reserves discovered and declared outside of the current resources area at the La Preciosa project, up to a maximum payment of $ 50.0 million.

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

The fair value of the royalties and the contingent consideration assets were $ 11.2 million and $ 1.2 million, respectively, valued as of the date of closing of the transaction and were measured at fair value on a non-recurring basis.

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

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

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

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

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

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

The model inputs can generally be verified and do not involve significant management judgment.

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

The consideration for the sale of Sterling/Crown exploration properties included the right to an additional payment of $ 50.0 million should the Buyer, its affiliates or its successors, report gold resources in the Sterling/Crown exploration properties (including any in-situ ounces mined after the closing of the Transaction) equal to or greater than 3,500,000 gold ounces, subject to certain additional terms and conditions detailed in the stock purchase agreement.

The fair value of the contingent consideration asset of $ 13.0 million valued as of the date of closing of the transaction was valued using a discounted cash flow model and is measured at fair value on a non-recurring basis.

8 unchanged sentences

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

Derivatives Not Designated as Hedging Instruments

Provisional Metal Sales

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

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

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

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

Exchange Agreement Embedded Derivative

The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation.

The accounting treatment of derivative financial instruments required that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date.

The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expired on October 31, 2021 and the outstanding liability was written off.

Zero Cost Collars

To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements.

The contracts were net cash settled monthly and, if the price of gold at the time of expiration is between the put and call prices, would expire at no cost to the Company.

If the price of gold at the time of expiration was lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively.

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

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

The cost to terminate the zero cost collars was $ 7.7 million, of which $ 3.1 million was recognized in earnings and the remaining $ 4.6 million, which represents the fair value of the zero cost collars on the date of de-designation, was retained in accumulated other comprehensive income (loss) (“AOCI”) and was recognized in earnings in 2022 as the forecasted transactions occurred.

Derivatives Designated as Cash Flow Hedging Strategies

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

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

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

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

At December 31, 2022, the Company had the following derivative instruments that settle as follows:

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

Provisional gold sales contracts $ 26,004 $ —

Average gold price per ounce $ 1,786 $ —

Notional ounces 14,556 —

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

December 31, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 299 $ 10

December 31, 2021

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 86 $ 162

The following represent mark-to-market gains (losses) on derivative instruments in the years ended December 31, 2022, 2021, and 2020 respectively (in thousands):

Year Ended December 31,

Financial statement line Derivative 2022 2021 2020

Revenue Provisional metal sales contracts $ 365 $ ( 490 ) $ 959

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

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

$ ( 2,774 ) $ 9,443 $ 959

Derivatives Designated as Cash Flow Hedging Strategies

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

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

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

At December 31, 2023, the Company had the following derivative cash flow hedge instruments that settle as follows:

3 unchanged sentences

Notional ounces 94,950 —

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

Silver forwards

Average silver fixed price per ounce $ 25.16 $ —

Notional ounces 3,099,999 —

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

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

2 unchanged sentences

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

As of December 31, 2022, the Company had $ 12.3 million of net after-tax gain in AOCI related to gains from cash flow hedge transactions, of which $ 12.3 million of net after-tax gains is expected to be recognized in its Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

As of December 31, 2023, the Company had $ 1.3 million of net after-tax gains in AOCI related to gains from cash flow hedge transactions, of which $ 1.3 million of net after-tax gains is expected to be recognized in its Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.

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

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

2 unchanged sentences

Gold forwards $ — $ — $ 1,981

Silver forwards $ 3,312 $ — $ —

December 31, 2022

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

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

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021, and 2020, respectively (in thousands).

Gold forwards $ 12,343 $ — $ —

The following table sets forth the after-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the years ended December 31, 2023, 2022 and 2021, respectively (in thousands).

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31,

2 unchanged sentences

Gold forwards $ ( 10,627 ) $ 42,043 $ —

Silver forwards 10,309 — —

Gold zero cost collars — ( 4,598 ) 22,733

3 unchanged sentences

Gold forwards $ ( 3,697 ) $ ( 28,488 ) $ —

Silver forwards ( 6,997 ) — —

Gold zero cost collars — 4,598 938

1 unchanged sentence

$ ( 10,694 ) $ ( 23,890 ) $ ( 12,859 )

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

To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.

The Company does not anticipate non-performance by any of its counterparties.

Derivatives Not Designated as Hedging Instruments

Provisional Metal Sales

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

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

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

Zero Cost Collars

To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements.

The contracts were net cash settled monthly and, if the price of gold at the time of expiration was between the put and call prices, it would expire at no cost to the Company.

If the price of gold at the time of expiration was lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively.

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

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

The cost to terminate the zero cost collars was $ 7.7 million, of which $ 3.1 million was recognized in earnings and the remaining $ 4.6 million, which represents the fair value of the zero cost collars on the date of de-designation, was retained in AOCI and was recognized in earnings in 2022 as the forecasted transactions occurred.

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

In thousands except average prices and notional ounces 2024 2025 and Thereafter

Provisional gold sales contracts $ 31,570 $ —

Average gold price per ounce $ 2,032 $ —

Notional ounces 15,537 —

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

December 31, 2023

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 318 $ —

December 31, 2022

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 299 $ 10

The following represent mark-to-market gains (losses) on derivative instruments in the years ended December 31, 2023, 2022, and 2021, respectively (in thousands):

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Year Ended December 31,

Financial statement line Derivative 2023 2022 2021

Revenue Provisional metal sales contracts $ 30 $ 365 $ ( 490 )

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

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

$ 30 $ ( 2,774 ) $ 9,443

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

To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution.

The Company does not anticipate non-performance by any of its counterparties.

NOTE 15 – ADDITIONAL COMPREHENSIVE INCOME (LOSS) DETAIL

4 unchanged sentences

Silvertip ongoing carrying costs 15,616 20,963 24,928

Silvertip suspension costs — — 7,164

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

(Gain) loss on sale of assets 12,879 ( 640 ) ( 4,111 )

Asset retirement accretion 16,405 14,232 11,988

5 unchanged sentences

Foreign exchange gain (loss) $ ( 459 ) $ ( 850 ) $ ( 2,779 )

Gain (loss) on sale of assets 64,429 4,111 ( 2,849 )

Gain (loss) on dispositions (1)

( 12,318 ) 63,789 —

VAT write-down — — ( 25,982 )

Gold zero cost collars novation fee — — ( 3,819 )

Gain (loss) on sale of Manquiri NSR consideration — — 365

RMC bankruptcy distribution 1,516 1,651 —

Gain on Silvertip contingent consideration — — 955

Other 3,798 1,741 1,725

Other, net $ ( 7,463 ) $ 66,331 $ ( 27,036 )

(1) See Note 13 -- Fair Value Measurements and Note 20 — Dispositions for additional details on the gain (loss) on dispositions.

NOTE 16 – NET INCOME (LOSS) PER SHARE

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

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

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

13 unchanged sentences

Diluted $ ( 0.30 ) $ ( 0.28 ) $ ( 0.13 )

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

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

and RBC Capital Markets, LLC as sales agents.

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

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

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

The Company granted an over-allotment option of up to 3,000,000 additional flow-through shares, which was exercised in full and closed on July 20, 2023.

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

The initial Private Placement Offering raised net proceeds of $ 18.2 million, of which $ 5.1 million represents net proceeds received in excess of the Company’s trading price (“FT Premium Liability”).

The FT Premium Liability is included in Accrued liabilities and other on the Consolidated Balance Sheet and will decrease in subsequent periods as certain qualifying “Canadian Exploration Expenditures” are incurred.

The over-allotment raised net proceeds of $ 10.5 million, including an additional $ 2.7 million of FT Premium Liability.

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.

The FT Shares were not registered under the Securities Act and were offered and sold outside the United States to accredited investors in reliance on Regulation S and/or Regulation D of the Securities Act.

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

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

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

and RBC Capital Markets, LLC as sales agents.

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

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

On December 11, 2022, the Company completed a $ 50.0 million “at the market” offering of its common stock, par value $ 0.01 per share (the “December Equity Offering”).

The December Equity Offering was conducted pursuant to an ATM Equity Offering Sales Agreement, entered into on November 9, 2022 between the Company and BMO Capital Markets Corp.

and RBC Capital Markets, LLC as sales agents.

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

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

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 17 - SUPPLEMENTAL GUARANTOR INFORMATION

6 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

19 unchanged sentences

Mexico Litigation Matters

As of December 31, 2022, $ 26.0 million in principal is due from the Mexican government associated with VAT that was paid under Coeur Mexicana, S.A.

As of December 31, 2023, $ 31.2 million in principal is due from the Mexican government associated with amounts that were paid as VAT under Coeur Mexicana, S.A.

de C.V.’s (“Coeur Mexicana’s”) prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016.

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

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

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

The Company has since been engaged in ongoing efforts to recover the VAT from the Mexican government (including through litigation and potential arbitration as well as refiling VAT refund requests).

Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation has continued at the administrative, appeals court and supreme court levels, most of which has been determined unfavorably to Coeur based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous.

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

Coeur Mexicana has elected initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA, to resolve the matter.

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

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

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

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

Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation of the matter continued at the Mexican administrative, appeals court and supreme court levels for several years, most of which was determined unfavorably to Coeur based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous.

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

Coeur has elected to initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA, to pursue recovery of the unduly paid VAT plus interest and other damages.

Outcomes in NAFTA arbitration and the process for recovering funds even if there is a successful outcome in NAFTA arbitration can be lengthy and unpredictable.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

2 unchanged sentences

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

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

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

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

The stream agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.

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

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

Year Ended December 31,

In thousands 2023 2022 2021

Opening Balance $ 7,411 $ 8,150 $ 9,376

Revenue Recognized ( 469 ) ( 739 ) ( 1,226 )

Closing Balance $ 6,942 $ 7,411 $ 8,150

Metal Sales Prepayments

In June 2019, Coeur amended its existing sales and purchase contract with a metal sales counterparty for gold concentrate from its Kensington mine (the “Amended Sales Contract”).

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

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

In June 2023, the Company exercised an option to receive a further $ 25.0 million prepayment, all of which was recognized as revenue in the first half of 2023.

In December 2023, the Company received a $ 25.0 million prepayment.

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

In September 2023, the contracts related to Wharf and Rochester were amended to increase the maximum amount available in prepayments to $ 12.5 million and $ 17.5 million, respectively, all of which were recognized as revenue in the fourth quarter of 2023.

In December 2023, Wharf and Rochester received additional prepayments of $ 12.5 million and $ 17.5 million, respectively.

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

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

Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by December 2024.

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

Year Ended December 31,

In thousands 2023 2022 2021

Opening Balance $ 25,016 $ 15,016 $ 15,003

Additions 130,066 36,020 30,013

Revenue Recognized ( 100,000 ) ( 26,020 ) ( 30,000 )

Closing Balance $ 55,082 $ 25,016 $ 15,016

Kensington Royalty Matter

The Company’s subsidiary Coeur Alaska, Inc.

(“Coeur Alaska”) is currently engaged in litigation with Maverix Metals Inc.

and Maverix Metals (Nevada) Inc.

(collectively “Maverix”) regarding the appropriate costs to be included in the cost recoupment calculation under a royalty deed before the royalty is payable on production from a portion of the Kensington mine

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

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

At December 31, 2022, the remaining unamortized balance was $ 7.4 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

Kensington Prepayment

In June 2019, Coeur amended its existing sales and purchase contract with a metal sales counterparty for gold concentrate from its Kensington mine (the “Amended Sales Contract”).

From time to time thereafter, the Amended Sales Contract has been further amended to allow for additional prepayments, including in June 2021, to provide options for Coeur to receive up to two additional prepayments of up to $ 15.0 million each.

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

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

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

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

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

Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by December 2024.

POA 11 Expansion Project

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.

property (the “Maverix Litigation”).

While the Company continues to believe in the validity of its claims and counterclaims in the matter, it has determined that settlement is appropriate given the inherent uncertainty presented in litigation matters.

Accordingly, on February 15, 2024, Coeur Alaska and Maverix entered into a settlement agreement term sheet (“Settlement Term Sheet”) and the court granted their joint request to vacate the upcoming trial date and pretrial deadlines while the parties finalize definitive documentation of the settlement.

Although the Settlement Term Sheet outlines key terms for dismissing the Maverix Litigation, definitive documentation has not yet been finalized.

The Company believes that it is reasonably possible that the final terms of the settlement could result in a potential loss that the Company estimates to be between $1 million and $7 million.

Mining Concession

On November 20, 2023, Coeur Mexicana S.A.

signed a purchase agreement with a subsidiary of Fresnillo plc to acquire mining concessions adjacent to the Palmarejo mine.

Total consideration includes a cash payment of approximately $ 25 million, with $ 10 million due at closing, an additional $ 10 million payable 12 months after closing, and an additional $ 5 million payable 24 months after closing.

The concessions will be subject to an inflation-adjusted royalty payment of $ 25 per ounce for each new gold-equivalent ounce of resource discovered between 450,000 and two million gold equivalent ounces.

Closing is subject to applicable regulatory approvals in Mexico.

Other Commitments and Contingencies

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

As of December 31, 2023 and December 31, 2022, the Company had surety bonds totaling $ 324.8 million and $ 326.8 million, respectively, in place as financial support for future reclamation and closure costs.

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Accrued liabilities and other consist of the following:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

In thousands December 31, 2023 December 31, 2022

Accrued salaries and wages $ 31,722 $ 29,868

Flow-through share premium received (including over-allotment) 5,563 —

Deferred revenue (1)

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(1) See Note 18 -- Commitments and Contingencies for additional details on deferred revenue liabilities.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that total the same such amounts shown in the statement of cash flows in the year ended December 31, 2022 and 2021:

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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

In thousands December 31, 2023 December 31, 2022

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Capital expenditures, not yet paid $ 44,966 $ 33,688 $ 40,904

Non-cash Silvertip contingent consideration $ — $ — $ 5,295

Debt for equity exchange $ 76,018 $ — $ —

Non-cash acquisition of Victoria Gold Corp common stock $ — $ — $ 118,777

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Income and mining taxes paid $ 35,000 $ 41,600 $ 57,200

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 20 – DISPOSITIONS

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

The Company classified the La Preciosa project as held for sale as of December 31, 2021 and the associated assets and liabilities are classified separately on the Consolidated Balance Sheets.

The major classes of assets and liabilities associated with the La Preciosa project as of December 31, 2021 are as follows:

In thousands December 31, 2021

Cash and cash equivalents $ 234

Receivables 1,211

Prepaid expenses and other 1,338

Property, plant and equipment, net 1,626

Mining properties, net 49,085

TOTAL ASSETS $ 54,240

Accounts payable $ 311

Deferred tax liabilities 10,958

TOTAL LIABILITIES $ 11,269

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

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

• Two royalties, valued at $ 11.2 million, covering the La Preciosa land package, including (i) a 1.25 % net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a 2.00 % gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

The La Preciosa sale resulted in a gain on the sale of $ 1.5 million, which was recognized in Other, Net in the Consolidated Statements of Comprehensive Income (Loss).

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

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

1 unchanged sentence

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 8. Financial Statements and Supplementary Data