What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-01 compared with 2023-11-08 · 214 added, 282 removed, 285 unchanged (64% of the section changed)

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

Third Quarter Highlights

First Quarter Highlights

For the quarter, Coeur reported revenue of $213.1 million and cash used in operating activities of $15.9 million.

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On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $44.3 million and net loss of $19.0 million or $0.05 per diluted share.

For the nine months ended September 30, 2023, Coeur reported revenue of $559.1 million and cash provided by operating activities of $2.0 million.

We reported GAAP net loss of $78.1 million, or $0.24 per diluted share.

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $78.0 million and net loss of $71.8 million or $0.22 per diluted share.

• Increased revenue and adjusted EBITDA driven by stronger gold production and lower costs – Revenue increased 10% and adjusted EBITDA increased 38% quarter-over-quarter, due to a 15% quarter-over-quarter increase in gold production and a 13% quarter-over-quarter decline in adjusted costs applicable to sales per gold ounce

• Rochester expansion project now complete – First production from the new leach pad and process plant was achieved in mid-September.

The legacy crushing circuit is now being decommissioned in preparation of mining expected to begin in that location in 2024

• Material step-up in Rochester production now occurring – During the month of October, Rochester recovered 537,000 ounces of silver and 8,050 ounces of gold, which is more than double the year-to-date monthly average silver production and more than triple the year-to-date monthly average gold production

• Gold production and cost guidance updated;

silver guidance remains unchanged – A stronger anticipated fourth quarter at Wharf is expected to offset adjusted gold production guidance at Kensington.

The low end of total 2024 production guidance remains unchanged and the overall range has narrowed to 304,000 - 342,500 ounces.

Additionally, Kensington cost guidance has been revised to reflect the impact of revised production expectations.

Silver full-year production guidance of 10 - 12 million ounces remains unchanged

• Balance sheet and hedging initiatives supporting remaining capital requirements – With elevated capital investment levels related to the recently completed Rochester expansion expected through year-end, Coeur ended the quarter with total liquidity of approximately $280 million.

Realized and unrealized gains from the Company’s 2023 gold and silver hedges total nearly $20 million at quarter-end, providing meaningful downside protection through this period of capital intensity

• Strong year-over-year production increases in-line with 2024 guidance – Solid performances at Palmarejo and Wharf led to total production of 80,744 ounces of gold and 2.6 million ounces of silver compared to 69,039 ounces of gold and 2.5 million ounces of silver in the first quarter of 2023.

Production levels are expected to increase over the balance of 2024, driven primarily by the ramp-up at Rochester

• Increased revenue and adjusted EBITDA driven by increased production and lower costs – Revenue increased 14% year-over-year while adjusted EBITDA increased 76% compared to the first quarter of 2023, raising adjusted LTM EBITDA by 32% to $162 million through the end of the period compared to a year ago.

The Company also saw a 5% reduction year-over-year in cost applicable to sales, totaling $146 million for the first quarter

• Commercial production achieved at Rochester;

ramp-up on-track – Commissioning of Rochester’s new three-stage crushing circuit and truck load-out facility was completed on March 7, 2024.

The crushing circuit has routinely exceeded 70,000 tons per day since commissioning was completed.

Commercial production was achieved as of March 31, 2024 and the ramp-up to sustained nameplate capacity of 88,000 tons per day remains on schedule for the end of the second quarter

• Kensington’s multi-year program on target to increase mine life by year-end – The Company continued its multi-year underground mine development and exploration program, investing approximately $14 million during the quarter.

Coeur has now completed roughly 71% of total underground mine development and drilling since inception of the program in 2022.

The program is expected to extend Kensington’s reserve-based mine life beyond five years by the end of 2024

• Published 2023 ESG Report – On April 23, 2024, Coeur published its 2023 ESG Report which highlighted the critical role in the modern economy of the metals the Company produces and progress on ESG priorities, such as ongoing adoption of the Global Industry Standard on Tailings Management and the roll-out of Coeur’s Biodiversity Management Standard, as well as advances in climate resilience including the expectation to achieve a 35% reduction in net intensity of greenhouse gas emissions by year-end

Selected Financial and Operating Results

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Three Months Ended

March 31, 2024 December 31, 2023 March 31, 2023

Financial Results:

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Consolidated Financial Results

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Three Months March 31, 2024 compared to Three Months December 31, 2023

We sold 81,416 gold ounces and 2.6 million silver ounces, compared to 99,540 gold ounces and 3.0 million silver ounces.

Revenue increased by $17.3 million, or 10%, as a result of a 16% increase gold ounces sold and a 4% increase in average realized silver prices, partially offset by a 5% decrease in silver ounces sold and a 1% decrease in average realized gold prices.

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

The decrease in silver ounces sold was primarily due to lower silver grades at Palmarejo and the timing of production on the new leach pad related to startup of the new process plant.

Gold and silver represented 72% and 28% of third quarter 2023 sales revenue, respectively, compared to 68% and 32% of second quarter 2023 sales revenue, respectively.

Revenue decreased by $49.0 million, or 19%, as a result of a 18% and 13% decrease in gold and silver ounces sold, respectively, and a 1% and 5% decrease in average realized gold and silver prices, respectively.

The decrease in gold and silver ounces sold was primarily due to timing of recoveries at Rochester driven by the commissioning and ongoing ramp-up of the new three stage crusher after initial ounces from ore stacked throughout 2023 on the new leach pad were recovered in the three months ended December 31, 2023.

Additionally, the decrease in gold and silver ounces sold resulted from lower grade and timing of recoveries at Wharf and lower mill throughput and lower grade at Kensington, partially offset by higher gold and silver grades and higher recoveries at Palmarejo.

Gold and silver represented 71% and 29% of first quarter 2024 sales revenue, respectively, compared to 72% and 28% of fourth quarter 2023 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Three Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2023 June 30, 2023

In thousands March 31, 2024 December 31, 2023

Gold sales $ 151,769 $ 187,718 $ (35,949) (19) %

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Costs Applicable to Sales

Costs applicable to sales increased $8.3 million, or 6%, primarily due to higher gold ounces sold and a higher net realizable value (“LCM”) adjustments at Rochester.

Costs applicable to sales decreased $46.3 million, or 24%, primarily due to lower gold and silver ounces sold, the favorable impact of the estimated recoverable ounces on the legacy leach pad and a lower of cost or net realizable value (“LCM”) adjustment at Rochester.

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

Amortization increased $3.3 million, or 17% primarily due to an increase in gold ounces sold and the commencement of production of the new leach pad in mid-September 2023 at Rochester.

General and administrative expenses decreased $0.3 million, or 3%, primarily due to lower employee incentive related costs.

Exploration expense increased $9.5 million, or 326%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip.

Pre-development, reclamation, and other expenses decreased $1.4 million, or 14%, stemming from lower ongoing carrying costs at Silvertip.

Amortization decreased $7.3 million, or 21%, primarily due to lower gold and silver ounces sold, the favorable impact of the estimated recoverable ounces on the legacy leach pad and a lower LCM adjustment at Rochester.

General and administrative expenses increased $4.2 million, or 41%, primarily due to higher employee incentive and stock-based compensation costs.

Exploration expense decreased $0.5 million, or 4%, driven by lower planned drilling activity at Palmarejo.

Pre-development, reclamation, and other expenses decreased $6.5 million, or 26%, stemming from a $12.8 million loss on dismantling and disposal of the legacy crusher at Rochester in the fourth quarter of 2023, partially offset by the Kensington royalty settlement of $6.8 million.

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

Three Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2023 June 30, 2023

COVID-19 $ 14 $ 21 $ (7) (33) %

In thousands March 31, 2024 December 31, 2023

Silvertip ongoing carrying costs 2,362 2,048 314 15 %

(Gain) loss on sale of assets 3,536 12,547 (9,011) (72) %

Asset retirement accretion 4,076 4,186 (110) (3) %

Kensington royalty settlement 6,750 — 6,750 100 %

Other 1,504 5,905 (4,401) (75) %

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Other Income and Expenses

During the third quarter of 2023, the Company incurred a $0.8 million gain in connection with the exchange of $19.3 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 7.6 million shares of common stock.

During the second quarter of 2023, the Company incurred a $3.0 million gain in connection with the exchange of $48.5 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 13.9 million shares of common stock.

Fair value adjustments, net, decreased to a loss of $2.0 million compared to $3.9 million as a result of an increase in value of the Company’s equity investments.

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

Interest expense (net of capitalized interest of $4.1 million) increased to $7.4 million from $6.9 million due to higher interest paid under the RCF as a result of increasing interest rates, partially offset by higher capitalized interest, and lower interest payable following the extinguishment of $67.8 million in 2029 Senior Notes.

Other, net decreased to a gain of $0.5 million compared to a loss of $9.9 million as a result of the $12.3 million loss recognized from the sale of La Preciosa Deferred Consideration in the second quarter of 2023.

During the three months ended March 31, 2024, the Company incurred a $0.4 million gain in connection with the exchange of $5.9 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 1.8 million shares of common stock, compared to a loss of $0.3 million during the three months ended December 31, 2023.

The Company did not have Fair value adjustments, net, in the first quarter of 2024 following the sale of the Company’s equity investments in 2023.

Interest expense (net of capitalized interest of $0.0 million) increased to $12.9 million from $7.4 million due to lower capitalized interest and higher interest paid under the RCF and finance lease obligations.

Other, net increased to a gain of $2.8 million compared to $2.6 million as a result of a higher recognition of the FT Premium Liability income of $2.5 million compared to $2.3 million in the fourth quarter of 2023 following the renouncement of Silvertip exploration expenditures.

Income and Mining Taxes

Income and mining tax expense of approximately $6.1 million resulted in an effective tax rate of (40.6)% for the three months ended September 30, 2023.

This compares to income tax expense of $9.9 million for an effective tax rate of (43.8)% for the three months ended June 30, 2023.

Income and mining tax expense of approximately $16.0 million resulted in an effective tax rate of (122.4)% for three months ended March 31, 2024.

This compares to income tax expense of $8.5 million for an effective tax rate of 49.9% for three months ended December 31, 2023.

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

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) foreign exchange rate;

(v) the sale of non-core assets;

(vi) percentage depletion;

and (vii) the impact of uncertain tax positions.

(i) percentage depletion;

(ii) mining taxes;

(iii) variations in our income before income taxes;

(iv) geographic distribution of that income;

(v) foreign exchange rates;

and (vi) the impact of uncertain tax positions.

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

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

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

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

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

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Net loss was $29.1 million, or $0.08 per diluted share, compared to $25.5 million, or $0.07 per diluted share.

The decrease in net loss was driven by a 16% increase gold ounces sold, a 4% increase in average realized silver prices, favorable changes in the fair value of the Company’s equity investments, and a $12.3 million loss on the sale of the La Preciosa Deferred Consideration recognized in the second quarter of 2023.

This was partially offset by a 5% decrease in silver ounces sold, a 1% decrease in average realized gold prices, a higher LCM adjustment at Rochester, and higher exploration costs.

The increase in net loss was driven by a 18% and 13% decrease in gold and silver ounces sold, respectively, a 1% and 5% decrease in average realized gold and silver prices, respectively, higher employee incentive and stock-based compensation costs, higher interest expense, and the Kensington royalty settlement of $6.8 million.

This was partially offset by a lower LCM adjustment at Rochester, lower disposal and dismantling of assets costs at Rochester, and lower income and mining taxes.

Adjusted net loss was $19.0 million, or $0.05 per diluted share, compared to $6.2 million, or $0.02 per diluted share (see “Non-GAAP Financial Performance Measures”).

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Three Months March 31, 2024 compared to Three Months Ended March 31, 2023

We sold 81,416 gold ounces and 2.6 million silver ounces, compared to 70,866 gold ounces and 2.6 million silver ounces.

Revenue decreased by $16.4 million, or 3%, as a result of a 11% and 2% decrease in gold and silver ounces sold, respectively, partially offset by a 5% and 9% increase in average realized gold and silver prices, respectively.

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

The decrease in silver ounces sold was primarily due to lower mill throughput at Palmarejo, partially offset by the timing of recoveries and higher grades at Rochester.

Gold and silver represented 69% and 31% of 2023 sales revenue, respectively, compared to gold and silver representing 72% and 28% of 2022 sales revenue, respectively.

Revenue increased by $25.8 million, or 14%, as a result of a 15% increase in gold ounces sold, a 4% and 1% increase in average realized gold and silver prices, respectively.

Average realized gold prices were affected by higher gold spot prices, which resulted in lower realized gains from gold hedges.

The increase in gold and silver ounces sold was primarily due to higher gold and silver grades and higher recoveries at Palmarejo, higher mill throughput at Kensington and higher tons placed and timing of recoveries at Wharf, partially offset by fewer ounces produced at Rochester from the legacy leach pads as Rochester transitioned in 2023 to the new leach pad and from lower grades at Kensington.

Gold and silver represented 71% and 29% of first quarter 2024 sales revenue, respectively, compared to 68% and 32% of first quarter 2023 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Nine Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2023 September 30, 2022

Three Months Ended Increase (Decrease) Percentage Change

In thousands March 31, 2024 March 31, 2023

Gold sales $ 151,769 $ 127,101 $ 24,668 19 %

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Costs Applicable to Sales

Costs applicable to sales decreased $6.5 million, or 1%, primarily due to lower gold and silver ounces sold and lower LCM adjustments at Rochester.

Costs applicable to sales decreased $7.1 million, or 5%, primarily due to the favorable impact of the estimated recoverable ounces on the legacy leach pad and a lower LCM adjustment at Rochester, partially offset by higher gold and silver ounces sold.

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

Amortization decreased $18.4 million primarily due to lower gold and silver ounces sold and longer assumed mine lives at Palmarejo, Rochester, Kensington and Wharf driven by prior year’s successful investments in exploration.

General and administrative expenses increased $2.1 million, or 7%, primarily due to higher employee incentive related costs and corporate administrative costs.

Exploration expense increased $0.9 million, or 5%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip, partially offset by the Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project recognized in the second quarter of 2023.

Pre-development, reclamation, and other expenses decreased $0.2 million, or 1%, stemming from lower ongoing carrying costs at Silvertip and lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, partially offset by higher asset retirement accretion.

Amortization increased $4.6 million, or 20%, primarily due to higher gold and silver ounces sold and the commencement of production of the new leach pad in mid-September 2023 at Rochester, partially offset by a lower LCM at Rochester.

General and administrative expenses increased $2.3 million, or 19%, primarily due to higher employee incentive and stock-based compensation costs, and higher outside service costs.

Exploration expense increased $5.8 million, or 126%, as a result of resuming exploration activities after a temporary ramp down of projects in the fourth quarter of 2022 that lead to lower exploration expense in the first quarter of 2023 and drilling activity at Palmarejo, Kensington and Silvertip.

Pre-development, reclamation, and other expenses increased $7.3 million, or 67%, stemming from the Kensington royalty settlement of $6.8 million and higher asset losses on the sale of assets, partially offset by lower ongoing carrying costs at Silvertip.

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

Nine Months Ended September 30, Increase (Decrease) Percentage Change

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

In thousands 2024 2023

COVID-19 $ 92 $ 1,585 $ (1,493) (94) %

Silvertip ongoing carrying costs 2,362 6,180 (3,818) (62) %

(Gain) loss on sale of assets 3,536 — 3,536 100 %

Asset retirement accretion 4,076 3,993 83 2 %

Kensington royalty settlement 6,750 — 6,750 100 %

Other 1,504 717 787 110 %

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Other Income and Expenses

During the first nine months of 2023, the Company incurred a $3.7 million gain in connection with the exchange of $67.8 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 21.6 million shares of common stock.

Fair value adjustments, net, increased to a gain of $4.6 million compared to a loss $65.3 million loss as a result of an increase in value of the Company’s equity investments.

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

Interest expense (net of capitalized interest of $9.4 million) increased to $21.7 million from $15.7 million due to higher interest paid under the RCF attributable to higher average debt levels and interest rates, partially offset by lower interest payable following the extinguishment of $67.8 million in 2029 Senior Notes.

Other, net decreased to a loss of $10.4 million compared to a gain of $2.2 million, as a result of the $12.3 million loss recognized from the sale of the La Preciosa Deferred Consideration.

The Company did not have Fair value adjustments, net, in the first quarter of 2024 following the sale of the Company’s equity investments in 2023.

Interest expense (net of capitalized interest of $0.0 million) increased to $12.9 million from $7.4 million due to higher interest paid under the RCF attributable to higher average debt levels, and lower capitalized interest.

Other, net increased to a gain of $2.8 million compared to a loss of $1.0 million as a result of the recognition of the FT Premium Liability income of $2.5 million following the renouncement of Silvertip exploration expenditures and higher foreign exchange losses in the first quarter of 2023.

Income and Mining Taxes

During the nine months of 2023, income and mining tax expense of approximately $26.7 million resulted in an effective tax rate of (51.9)% for 2023.

Income and mining tax expense of approximately $16.0 million resulted in an effective tax rate of (122.4)% for 2024.

This compares to income tax expense of $10.7 million for an effective tax rate of (77.2)% for 2023.

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

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) the sale of non-core assets;

(iv) mining taxes;

(i) mining taxes;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(iv) percentage depletion;

(v) foreign exchange rates;

(vi) the impact of uncertain tax positions;

(vii) percentage depletion;

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

and (vi) the impact of uncertain tax positions.

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

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

Nine Months Ended September 30,

Three Months Ended March 31,

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

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Net loss was $29.1 million, or $0.08 per diluted share, compared to $24.6 million, or $0.08 per diluted share.

The decrease in net loss was driven by a 5% and 9% increase in average realized gold and silver prices, respectively, decreased LCM adjustments at Rochester, favorable changes in the fair value of the Company’s equity investments, and a $3.7 million gain in connection with the exchange of 2029 Senior Notes.

This was partially offset by a 11% and 2% decrease in gold and silver ounces sold, respectively, higher losses on the sale of assets, interest expense and income and mining taxes.

The increase in net loss was driven by the Kensington royalty settlement of $6.8 million, higher exploration costs, higher interest expense, and favorable changes in the fair value of the Company’s equity investments in the first quarter of 2023.

This was partially offset by a 15% increase in gold ounces sold, a 4% and 1% increase in average realized gold and silver prices, a lower LCM adjustment at Rochester, lower ongoing carrying costs at Silvertip and lower income and mining taxes.

Adjusted net loss was $19.0 million, or $0.05 per diluted share, compared to $33.1 million, or $0.11 per diluted share (see “Non-GAAP Financial Performance Measures”).

2023 Guidance

The Company has made the following changes to its 2023 gold production and cost guidance:

(i) the low end of Wharf’s gold production guidance has been revised upward;

and (ii) Kensington’s 2023 gold production and cost guidance have been refined to reflect the cumulative impact of paste backfill challenges at Kensington earlier in the year.

2023 Production Guidance

Previous Updated

Gold Silver Gold Silver

(oz) (K oz) (oz) (K oz)

Palmarejo 100,000 - 112,500 6,500 - 7,500 100,000 - 112,500 6,500 - 7,500

Rochester 35,000 - 50,000 3,500 - 4,500 35,000 - 50,000 3,500 - 4,500

Kensington 84,000 - 95,000 — 81,000 - 85,000 —

Wharf 85,000 - 95,000 — 88,000 - 95,000 —

Total 304,000 - 352,500 10,000 - 12,000 304,000 - 342,500 10,000 - 12,000

2023 Costs Applicable to Sales Guidance

Previous Updated

Gold Silver Gold Silver

($/oz) ($/oz) ($/oz) ($/oz)

Palmarejo (co-product) $900 - $1,050 $14.25 - $15.25 $900 - $1,050 $14.25 - $15.25

Rochester (co-product) — — — —

Kensington $1,650 - $1,750 — $1,850 - $1,950 —

Wharf (by-product) $1,200 - $1,350 — $1,200 - $1,350 —

The Company expects second half 2023 CAS at Rochester to be similar to actual first half 2023 CAS as Coeur completes and ramps up the expansion project.

2023 Capital, Exploration and G&A Guidance

Capital Expenditures, Sustaining $148 - $168

Capital Expenditures, Development $230 - $264

Exploration, Expensed $30 - $35

Exploration, Capitalized $10 - $15

General & Administrative Expenses $36 - $40

The Company’s previous guidance figures assume estimated prices of $1,800/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

The Company’s updated guidance figures assume estimated prices of $1,900/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

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

Results of Operations

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Three Months Ended

March 31, 2024 December 31, 2023 March 31, 2023

Tons milled 500,747 500,509 533,606

12 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold and silver production increased 16% and decreased 1%, respectively, as a result of 6% increase mill throughput, higher gold and silver recoveries, and 2% and 10% lower gold and silver grades, respectively.

Metal sales were $77.3 million, or 40% of Coeur’s metal sales, compared with $72.7 million, or 41% of Coeur’s metal sales.

Revenue increased by $4.6 million or 6%, of which $5.0 million was due to a higher gold production, partially offset by a decrease of $0.4 million due to lower gold prices.

Costs applicable to sales per gold ounce decreased 10% and per silver ounce increased 3%, due to the mix of gold and silver sales and a strengthening Mexican Peso.

Amortization of $9.0 million was in-line with prior quarter.

Capital expenditures decreased to $10.8 million from $11.9 million due to lower expenditures related to the open pit backfill project and underground development.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold and silver production decreased 7% and 5%, respectively as a result of 8% lower mill throughput, partially offset by 2% and 4% higher gold and silver grades, respectively.

Three Months Ended March 31, 2024 compared to Three Months Ended December 31, 2023

Gold and silver production increased 31% and 12%, respectively, as a result of a 17% and 6% increase in gold and silver grades, respectively, and higher gold and silver recoveries.

Metal sales were $96.4 million, or 45% of Coeur’s metal sales, compared with $80.9 million, or 31% of Coeur’s metal sales.

Revenue decreased by $1.6 million or 1%, of which $19.5 million was due to a lower volume of gold and silver production, partially offset by an increase of $17.9 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 13% and 18%, respectively, due to the mix of gold and silver sales, lower production, higher employee-related and consumable costs primarily due to continued inflationary pressures and a strengthening Mexican Peso.

Amortization decreased to $25.8 million due to a decrease in gold and silver ounces sold and longer assumed mine life.

Capital expenditures decreased to $32.8 million from $34.5 million due to lower infill drilling activities.

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Revenue increased by $15.5 million, or 19%, of which $17.5 million was due to higher volume of gold and silver production, partially offset by a decrease of $2.0 million due to lower gold and silver prices.

Costs applicable to sales per gold and silver ounces decreased 10% and 13%, respectively, due to higher production and the mix of gold and silver sales which impacted co-product cost allocation.

Amortization increased by $2.7 million to $12.6 million due to higher gold and silver ounces sold.

Capital expenditures decreased to $6.8 million from $8.9 million due to lower open pit backfill project and underground development expenditures.

Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023

Gold and silver production increased 32% and 4%, respectively, as a result of a 35% and 8% increase in gold and silver grades, respectively, and higher gold and silver recoveries, partially offset by 6% decrease in mill throughput.

Metal sales were $96.4 million, or 45% of Coeur’s metal sales, compared with $82.3 million, or also 45% of Coeur’s metal sales.

Revenue increased by $14.1 million, or 17%, of which $12.1 million was due to a higher volume of gold and silver production and $2.0 million was due to higher gold and silver prices.

Costs applicable to sales per gold and silver ounces decreased 2% and 5%, respectively, due to higher production and the mix of gold and silver sales which impacted co-product cost allocation, partially offset by higher operating costs.

Amortization increased by $3.9 million to $12.6 million due to higher gold and silver ounces sold.

Capital expenditures decreased to $6.8 million from $10.2 million due to lower open pit backfill project and underground development expenditures.

Three Months Ended

March 31, 2024 December 31, 2023 March 31, 2023

Tons placed (1)

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$ 20.93 $ 25.46 $ 29.51

(1) During the three months ended September 30, 2023, 743,551 and 2,743,622 tons were placed on legacy and new leach pads, respectively.

During the nine months ended September 30, 2023, 2,407,785 and 6,226,814 tons were placed on legacy and new leach pads, respectively.

During the nine months ended September 30, 2022, 11,889,398 and 276,287 tons were placed on legacy and new leach pads, respectively.

(1) Includes 1.9 million, 1.1 million and 1.1 million of crushed ore tons placed on the new leach pad in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively, and 1.2 million, 1.7 million and 1.4 million tons placed on the legacy pad in the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(2) See Non-GAAP Financial Performance Measures.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold and silver production decreased 29% and 11%, respectively, as a result of the timing of recoveries primarily due to Rochester preparing to transition from the legacy leach pad to the new leach pad associated with the Rochester expansion.

Approximately 80% of the tons placed in the third quarter of 2023 were placed onto the new leach pad, which commenced production in mid-September 2023.

Three Months Ended March 31, 2024 compared to Three Months Ended December 31, 2023

Gold and silver production decreased 71% and 48%, respectively, primarily driven by the commissioning and ramp-up of the new three-stage crusher after initial ounces from ore stacked throughout 2023 on the new leach pad were recovered in the three months ended December 31, 2023.

Metal sales were $29.8 million, or 14% of Coeur’s metal sales, compared with $69.4 million, or 26% of Coeur’s metal sales.

Revenue decreased by $5.5 million, or 19%, of which $6.2 million was due to a lower volume of gold and silver production, partially offset by an increase of $0.7 million due to higher average realized gold prices.

Costs applicable to sales per gold and silver ounce increased 48% due to a higher LCM adjustment of $7.7 million compared to $1.6 million in the prior period.

Amortization increased to $4.2 million due to commencement of production of the new leach pad in mid-September 2023.

Capital expenditures increased to $84.4 million from $61.5 million due to timing of payments related to the Rochester expansion project.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold and silver production decreased 18% and 2%, respectively, primarily due to the timing of recoveries.

Revenue decreased by $39.5 million, or 57%, of which $39.0 million was due to a lower volume of gold and silver production, and $0.5 million due to lower average realized silver prices.

Costs applicable to sales per gold and silver ounce decreased 9% and 18%, respectively, due to the favorable impact of an increase in estimated recoverable ounces on the legacy leach pad, lower LCM adjustments of $3.1 million compared to $17.4 million in the prior quarter which benefited from higher gold and silver prices and the increase in recoverable ounces on the legacy leach pads, higher tons placed and lower operating costs.

Amortization decreased to $6.6 million due to lower gold and silver ounces sold.

Capital expenditures decreased to $21.2 million from $65.5 million due to reduced spending related to the Rochester expansion project.

Commissioning of Rochester’s new three-stage crushing circuit and truck load-out facility was completed on March 7, 2024.

The crushing circuit has routinely exceeded 70,000 tons per day since commissioning was completed leading to declaration of commercial production and $528 million of construction in process placed into service during the quarter.

Ramp-up to sustained nameplate capacity of 88,000 tons per day remains on schedule for the end of the second quarter.

Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023

Gold and silver production decreased 29% and 8%, respectively, as a result of the fewer ounces produced from the legacy leach pads as Rochester transitioned to the new leach pad in 2023.

Metal sales were $29.8 million, or 14% of Coeur’s metal sales, compared with $33.9 million, or 18% of Coeur’s metal sales.

Revenue decreased by $0.4 million, or 0%, of which $6.3 million was due to a lower volume of silver production, partially offset by an increase of $5.9 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 15% and 9%, respectively, due to the mix of gold and silver sales, lower LCM adjustments of $22.4 million compared to $38.0 million in the prior period, lower diesel costs, partially offset by higher employee-related, and maintenance costs.

Amortization decreased to $13.0 million due to longer assumed mine life.

Capital expenditures increased to $197.8 million from $154.0 million due to timing of payments related to the Rochester expansion project.

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

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

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

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

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Revenue decreased by $4.1 million, or 12%, of which $5.2 million was due to a lower volume of gold and silver production, partially offset by a $1.1 million increase due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 22% and 29%, respectively, due to the favorable impact of an increase in estimated recoverable ounces on the legacy leach pad, lower LCM adjustments of $3.1 million compared to $13.1 million in the prior year which benefited from higher gold and silver prices and the increase in recoverable ounces on the legacy leach pads, higher tons placed and lower operating costs.

Amortization increased to $6.6 million due to commencement of production of the new leach pad in mid-September 2023, partially offset by lower gold and silver ounces sold.

Capital expenditures decreased to $21.2 million from $52.0 million due to reduced spending related to the Rochester expansion project.

Three Months Ended

March 31, 2024 December 31, 2023 March 31, 2023

Tons milled 167,439 177,382 153,337

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(1) See Non-GAAP Financial Performance Measures.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold production increased 87% as a result of 78% higher grades and 10% higher milled throughput.

Three Months Ended March 31, 2024 compared to Three Months Ended December 31, 2023

Gold production decreased 20% as a result of 13% lower grades and 6% lower mill throughput.

Metal sales were $43.5 million, or 20% of Coeur’s metal sales, compared to $51.1 million, or 20% of Coeur’s metal sales.

Revenue increased by $21.9 million, or 89%, of which $21.4 million resulted from a higher volume of gold production, and $0.5 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 47% due to higher production.

Amortization increased to $6.9 million primarily due to an increase in gold ounces sold.

Capital expenditures increased to $15.8 million from $11.7 million due to higher underground development.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold production decreased 26% as a result of 8% lower throughput primarily due to challenges with mine sequencing and stope extraction as well as lower grades and recoveries.

Revenue decreased by $7.6 million, or 15%, of which $9.8 million resulted from a lower volume of gold production, partially offset by a $2.2 million increase due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 28% due to lower production and higher operating costs.

Amortization decreased to $5.6 million primarily due to a decrease in gold ounces sold and favorable impact of a longer mine life.

Capital expenditures decreased to $13.3 million from $15.1 million reflecting continued investment associated with the multi-year underground development and exploration program designed to extend and enhance the mine life, which began in 2022 and is expected to be completed in 2025.

Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023

Gold production increased 6% as a result of 9% higher mill throughput partially offset by 7% lower grades.

Metal sales were $43.5 million, or 20% of Coeur’s metal sales, compared to $40.2 million, or 21% of Coeur’s metal sales.

Revenue decreased by $32.3 million, or 23%, of which $36.6 million resulted from a lower volume of gold production, partially offset by an increase of $4.2 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 32% due to lower production partially offset by lower diesel and employee-related costs.

Amortization decreased to $17.5 million primarily due to a decrease in gold ounces sold and longer assumed mine life.

Capital expenditures increased to $38.2 million from $23.8 million due to higher infill drilling and underground development.

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Revenue increased by $3.3 million, or 8%, of which $0.6 million resulted from a higher volume of gold production, and $2.7 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 4% due to higher operating costs.

Amortization decreased to $5.6 million primarily due to the favorable impact of a longer mine life.

Capital expenditures increased to $13.3 million from $10.7 million reflecting continued investment associated with the multi-year underground development and exploration program designed to extend and enhance the mine life, which began in 2022 and is expected to be completed in 2025.

Three Months Ended

March 31, 2024 December 31, 2023 March 31, 2023

Tons placed 1,251,955 1,290,562 1,156,794

7 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold production decreased 12% driven by timing of recoveries.

Three Months Ended March 31, 2024 compared to Three Months Ended December 31, 2023

Gold production decreased 31% driven by lower grade and timing of recoveries.

Metal sales were $43.3 million, or 20% of Coeur’s metal sales, compared to $60.7 million, or 23% of Coeur’s metal sales.

Revenue decreased by $17.3 million, or 29%, of which $18.6 million was due to a lower gold production, partially offset by an increase of $1.3 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 23% due to lower production and higher operating costs.

Amortization decreased to $1.6 million due to a decrease in gold ounces sold.

Costs applicable to sales per gold ounce increased 13% due to higher operating costs and lower grade.

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

Capital expenditures were $0.3 million.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold production increased 7% driven by higher grades.

Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023

Gold production increased 32% driven by higher tons placed and timing of recoveries, partially offset by lower grades.

Metal sales were $43.3 million, or 20% of Coeur’s metal sales, compared to $30.9 million, or 16% of Coeur’s metal sales.

Revenue increased by $17.9 million, or 16%, of which $12.9

million was due to a higher volume of gold production, and $5.0 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 2% due to lower operating costs driven by lower diesel and other consumable costs.

Amortization decreased to $4.8 million due to longer assumed mine life.

Revenue increased by $12.4 million, or 40%, of which $11.1 million was due to a higher gold production, and $1.3 million was due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 21% due to lower operating costs and higher tons placed.

Amortization decreased to $1.4 million due to higher tons placed and the favorable impact of a longer mine life.

Capital expenditures were $0.3 million.

Nine Months Ended September 30, 2023

Ongoing carrying costs at Silvertip totaled $13.6 million in the nine months ended September 30, 2023 and $15.5 million in 2022.

Capital expenditures in 2023 totaled $1.4 million compared to $21.4 million in the prior year due to planned reduction in capital development expenditures.

Since acquisition, exploration at Silvertip has been consistently successful, with demonstrated resource growth.

Multiple new zones have been discovered, resulting in significant increases in resources.

In addition, the full geochemical and metal zonation of the deposit is being studied including the critical minerals indium, germanium and gallium that are present in the ore body.

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

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

Coeur focused on compiling, analyzing and interpreting historical data during the first nine months of the year to increase the understanding of the geological context and mineralization system.

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

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

Three Months Ended March 31, 2024 compared to Three Months Ended March 31, 2023

Exploration expense increased to $5.3 million in the first three months of 2024 compared to $1.5 million in the prior year quarter as the Company continues to focus on increasing the mineral resource at Silvertip.

Ongoing carrying costs at Silvertip totaled $2.4 million in the first three months of 2024 and $6.2 million in the prior year quarter.

Capital expenditures in the first three months of 2024 totaled $0.5 million.

Liquidity and Capital Resources

At September 30, 2023, the Company had $54.9 million of cash, cash equivalents and restricted cash and $220.4 million available under the RCF.

At March 31, 2024, the Company had $69.2 million of cash, cash equivalents and restricted cash and $145.4 million available under the RCF.

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

Cash and cash equivalents decreased $8.2 million in the nine months ended September 30, 2023, due to 11% and 2% decrease in gold and silver ounces sold, respectively, $271.9 million of capital expenditures primarily related to the Rochester expansion project and higher costs at our operations due to continued inflationary pressures, partially offset by aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, $39.8 million received from the sale of 6.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”), and net proceeds of $28.7 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering (as defined below).

Additionally, the Company received net proceeds of $7.0 million from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the Avino note receivable, net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation, and a 5% and 9% increase in average realized gold and silver prices, respectively.

At September 30, 2023, the Company had $140.0 million drawn, $29.6 million in outstanding letters of credit and $220.4 million available under the RCF.

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

The August Amendment, among other things, (1) modifies the financial covenants to provide greater flexibility during the final stages of the Rochester expansion under (a) the consolidated net leverage and consolidated senior secured leverage ratios at September 30, 2023 through the March 31, 2024, with the ratios returning to the previous levels at June 30, 2024 and (b) the consolidated interest coverage ratio at June 30 through September 30, 2023, with the ratio returning to the previous level at December 31, 2023, (2) allows up to $50 million, through June 30, 2024, stepping down to $40 million in September 31, 2024, $30 million in December 31, 2024 and $15 million thereafter, for integration costs or costs associated with establishing new facilities and certain costs associated with LCM adjustments at Rochester to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF, (3) increases the interest rate on certain borrowings through June 30, 2024, and (4) restricts certain acquisitions through March 31, 2024.

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

At September 30, 2023, the Company held $7.2 million of equity securities.

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

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

In June 2023, the Company sold a total of 5,276,154 shares of its common stock (“Private Placement Offering”) issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), raising net proceeds of $18.2 million, of which $5.1 million represents net proceeds received in excess of the Company’s average price (“FT Premium Liability”).

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

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

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

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

The Company had outstanding forward contracts on 55,749 ounces of gold and 1.2 million ounces of silver at September 30, 2023 that settle monthly through December 2023.

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

Cash and cash equivalents decreased $5.9 million in the three months ended March 31, 2024, due to $42.1 million of capital expenditures primarily related to the Rochester expansion project, an 18% and 13% decrease in gold and silver ounces sold, respectively, and a 1% and 5% decrease in average realized gold and silver prices, respectively, partially offset by net proceeds of $23.7 million from the sale of 7.7 million shares of its common stock in the Private Placement Offering (as defined below).

On February 21, 2024, the Company entered into an agreement to extend and enhance its RCF (the “February 2024 Amendment”).

The February 2024 Amendment, among other things, (1) extends the term of the RCF by approximately two 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 million in incremental loans and commitments, subject to certain conditions, including obtaining commitments from relevant lenders to provide such increase, (5) allows for unencumbered domestic cash to be included in the calculation of the consolidated net leverage ratio, and (6) allows up to $15 million of non-capitalized underground mine development costs related to Silvertip to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF.

In March 2024, the Company completed the sale of 7,704,725 shares of its common stock (“Private Placement Offering”) issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), raising net proceeds of approximately $23.7 million, of which $0.9 million represents net proceeds received in excess of the Company’s average price (“FT Premium Liability”).

The proceeds of the issuance of FT Shares will be used by the Company for certain qualifying “Canadian Exploration Expenditures” (as such term is defined in the Income Tax Act (Canada)), in conducting an exploration and mineral resource evaluation program on the Silvertip Property in British Columbia and Yukon to determine the existence, location, extent, and quality of the silver, lead, and zinc on the Silvertip Property.

The Company had outstanding forward contracts on 49,950 ounces of gold and 1.8 million ounces of silver at March 31, 2024 that settle monthly through June 2024 in order to protect cash flow during the Rochester expansion ramp-up and may in the future layer on additional hedges as circumstances warrant.

The weighted average fixed price on the forward contracts is $2,100 per ounce of gold and $26.00 per ounce of silver.

In the first nine months of 2023, the Company exchanged $67.8 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 21.6 million shares of common stock.

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

During the three months ended March 31, 2024, the Company exchanged $5.9 million in aggregate principal amount of 2029 Senior Notes plus accrued interest for 1.8 million shares of its common stock.

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

We expect to use a combination of cash provided by operating activities under-pinned by our gold and silver hedging programs, additional equity financing, and borrowings under our RCF depending on future commodity prices to fund near term capital requirements, including those described in this report for the Rochester expansion project and in our 2024 capital expenditure guidance.

1 unchanged sentence

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

If and to the extent liquidity resources are insufficient to support short- and long-term expenditures, we may need to incur additional indebtedness or issue additional equity securities, among other financing options, which may not be available on acceptable terms or at all.

This could have a material adverse impact on the Company, as discussed in more detail under Item 1A – Risk Factors in the 2022 10-K and Part II, Item 1A of this Report.

If and to the extent liquidity resources are insufficient to support short- and long-term expenditures, we may need to

incur additional indebtedness or issue additional equity securities, among other financing options, which may not be available on acceptable terms or at all.

This could have a material adverse impact on the Company, as discussed in more detail under Item 1A – Risk Factors in the 2023 10-K.

Cash Provided by (Used in) Operating Activities

Net cash used in operating activities for the three months ended September 30, 2023 was $2.4 million, compared to net cash provided by operating activities of $39.4 million for the three months ended June 30, 2023.

Net cash provided by operating activities for the nine months ended September 30, 2023 was $2.0 million, compared to net cash used in operating activities of $2.9 million for the nine months ended September 30, 2022.

Adjusted EBITDA for the three months ended September 30, 2023 was $30.6 million, compared to $22.2 million for the three months ended June 30, 2023.

Adjusted EBITDA for the nine months ended September 30, 2023 was $78.0 million, compared to $103.2 million for the nine months ended September 30, 2022 (see “Non-GAAP Financial Performance Measures”).

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

Three Months Ended Nine Months Ended

In thousands September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Net cash used in operating activities for the three months ended March 31, 2024 was $15.9 million, compared to net cash provided by operating activities of $65.3 million for the three months ended December 31, 2023 and net cash used in operating activities of $35.0 million for three months ended March 31, 2023.

Adjusted EBITDA for the three months ended March 31, 2024 was $44.3 million, compared to $64.3 million for three months ended December 31, 2023 and $25.1 million for the three months ended March 31, 2023 (see “Non-GAAP Financial Performance Measures”).

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

Three Months Ended

In thousands March 31, 2024 December 31, 2023 March 31, 2023

Cash flow before changes in operating assets and liabilities $ (30,607) $ 45,337 $ 6,223

5 unchanged sentences

Cash provided by (used in) operating activities $ (15,871) $ 65,277 $ (35,003)

Net cash provided operating activities decreased $41.8 million for the three months ended September 30, 2023 compared to the three months ended June 30, 2023, primarily as a result of a 5% decrease in silver ounces sold, a 1% decrease in average realized gold prices, higher exploration costs of $9.5 million, lower metal sales prepayments of $15.0 million received in the third quarter of 2023, and the timing of interest payments, partially offset by a 16% increase gold ounces sold and a 4% increase in average realized silver prices.

Revenue for the three months ended September 30, 2023 compared to the three months ended June 30, 2023 increased by $17.3 million, of which $16.5 million was due to the higher volume of gold sales, and $0.9 million as the result of higher average realized silver prices.

Net cash provided by operating activities increased $4.9 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022, primarily due to a 5% and 9% increase in average realized gold and silver prices, respectively, the receipt of $30.0 million of prepayments in the third quarter of 2023, and the receipt of $7.8 million FT Premium Liability, partially offset by a 11% and 2% decrease in gold and silver ounces sold, respectively, higher operating and costs, and timing of VAT collections at Palmarejo.

Revenue for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 decreased by $16.4 million, of which $49.9 million was due to a lower volume of gold and silver sales, partially offset by $33.5 million as the result of higher average realized gold and silver prices.

Cash Provided by Investing Activities

Net cash used in investing activities in the three months ended September 30, 2023 was $112.2 million compared to $75.6 million in the three months ended June 30, 2023.

Cash used in investing activities increased primarily due to higher capital expenditures and net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, and net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation in the second quarter of 2023.

The Company incurred capital expenditures of $112.3 million in the three months ended September 30, 2023 compared with $85.6 million in the three months ended June 30, 2023 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the nine months ended September 30, 2023 was $217.1 million compared to $182.9 million in the nine months ended September 30, 2022.

Cash used in investing activities increased due to higher capital expenditures and the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in 2022, partially offset by net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the collection of amounts due under the promissory note issued in connection with the sale of the La Preciosa project, and net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation.

The Company incurred capital expenditures of $271.9 million in the nine months ended September 30, 2023 compared with $239.3 million in the nine months ended September 30, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash provided by operating activities decreased $81.1 million for the three months ended March 31, 2024 compared to the three months ended December 31, 2023, primarily due to a 18% and 13% decrease in gold and silver ounces sold, respectively, timing of interest payments, timing of recoveries caused by delayed ramp-up of the new three-stage crushing circuit at Rochester, timing of VAT collections at Palmarejo, and prepayments received in the fourth quarter of 2023.

Revenue for the three months ended March 31, 2024 compared to the three months ended December 31, 2023 decreased by $49.0 million, of which $43.2 million was due to lower volume of gold and silver sales, and $5.8 million as a result of lower average realized gold and silver prices.

Net cash used in operating activities decreased $19.1 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to a 15% increase in gold ounces sold, a 4% and 1% increase in average realized gold and silver prices, respectively, offsetting impact of the receipt of prepayments and prepaid revenue in the first quarter of 2024, partially offset by the timing of recoveries caused by delayed ramp-up of the new three-stage crushing circuit at Rochester, timing of VAT collections at Palmarejo, and higher exploration costs.

Revenue for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 increased by $25.8 million, of which $19.9 million was due to higher volume of gold sales, and $5.8 million as the result of higher average gold and silver prices.

Cash Used in Investing Activities

Net cash used in investing activities in the three months ended March 31, 2024 was $42.1 million compared to $86.6 million in the three months ended December 31, 2023.

Cash used in investing activities decreased due to lower capital expenditures at Rochester following the completion of the expansion construction and the sale of the Company’s equity investments in the fourth quarter of 2023.

The Company incurred capital expenditures of $42.1 million in the three months ended March 31, 2024 compared with $92.7 million in the three months ended December 31, 2023 primarily related to expansion construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the three months ended March 31, 2024 was $42.1 million compared to $29.3 million in the three months ended March 31, 2023.

Cash used in investing activities increased due to net proceeds of $39.8 million received from the sale of its remaining Victoria Gold Common Shares and $5.0 million received from the sale of the La Preciosa project in 2023, partially offset by a decrease in capital expenditures at Rochester.

The Company incurred capital expenditures of $42.1 million in the three months ended March 31, 2024 compared with $74.0 million in the three months ended March 31, 2023 primarily related to expansion construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Cash Provided by Financing Activities

Net cash provided by financing activities in the three months ended September 30, 2023 was $111.2 million compared to $25.9 million in the three months ended June 30, 2023.

During the three months ended September 30, 2023, the Company drew $60.0 million, net, under the RCF, received net proceeds of $49.3 million from the sale of 21.7 million shares of its common stock in the September 2023 Equity Offering, and received net proceeds of $7.8 million from the sale of 3.0 million shares of its common stock issued as the FT Shares.

During the three months ended June 30, 2023, the Company drew $20.0 million, net, under the RCF, and received net proceeds of $13.1 million from the sale of 5.3 million shares of its common stock issued as the FT Shares.

Net cash provided by financing activities in the nine months ended September 30, 2023 was $206.5 million compared to $204.3 million in the nine months ended September 30, 2022.

During the nine months ended September 30, 2023, the Company drew $60.0 million, net, under the RCF, received aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, and received net proceeds of $20.9 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering.

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

Net cash provided by financing activities in the three months ended March 31, 2024 was $63.8 million compared to $29.5 million in the three months ended December 31, 2023.

During the three months ended March 31, 2024, the Company

received net proceeds of $23.7 million from the sale of 7.7 million shares of its common stock in the Private Placement Offering, and drew $50.0 million, net, from the RCF.

During the three months ended December 31, 2023, the Company drew $35.0 million, net, from the RCF.

Net cash provided by financing activities in the three months ended March 31, 2024 was $63.8 million compared to $69.4 million in the three months ended March 31, 2023.

During the three months ended March 31, 2024, the Company received net proceeds of $23.7 million from the sale of 7.7 million shares of its common stock in the Private Placement Offering, and drew $50.0 million, net, from the RCF.

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

Critical Accounting Policies and Accounting Developments

See Note 2 - Summary of Significant Accounting Policies contained in the 2023 10-K and Note 2 - Summary of Significant Accounting Policies contained in this Report for the Company’s critical accounting policies and estimates.

Ore on Leach Pads

The heap leach process extracts silver and gold by placing ore on an impermeable pad and applying a diluted cyanide solution that dissolves a portion of the contained silver and gold, which are then recovered in metallurgical processes.

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.

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

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

The crushed ore is then transported to the leach pad for application of the leaching solution.

As the leach solution is collected from the leach pads, it is continuously sampled for assaying.

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 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.

The historical cost of metal expected to be extracted within 12 months is classified as current and the historical cost of metals contained within the broken ore expected to be extracted beyond 12 months is classified as non-current.

Ore on leach pads is valued based on actual production costs incurred to produce and place ore on the leach pad, less costs allocated to minerals recovered through the leach process.

The estimate of both the ultimate recovery expected over time and the quantity of metal that may be extracted relative to the time the leach process occurs requires the use of estimates, which are inherently inaccurate due to the nature of the leaching process.

The quantities of metal contained in the ore are based upon actual weights and assay analysis.

The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than 20 years of leach pad operations at the Rochester mine and 30 years of leach pad operations at the Wharf mine.

The assumptions used by the Company to measure metal content during each stage of the inventory conversion process includes estimated recovery rates based on laboratory testing and assaying.

The Company periodically reviews its estimates compared to actual experience and revises its estimates when appropriate.

The ultimate recovery will not be known until leaching operations cease.

Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

In the first quarter of 2024, the Company completed a review of the estimated recoverable ounces of gold and silver on its leach pads and determined that as a result of longer expected leach time and favorable recoveries relative to previous estimates that the estimated recoverable gold and silver on the Rochester legacy (Stages II, III and IV) leach pads supported an upward revision.

An additional 6,000 ounces of gold and 900,000 ounces of silver were added to the legacy leach pads in the first quarter of 2024.

The updated recoverable ounce estimate is considered a change in estimate and was accounted for prospectively.

As of March 31, 2024, the Company’s estimated recoverable ounces of gold and silver on the leach pads were 30,953 and 4.9 million, respectively.

Other Liquidity Matters

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operations and corporate activities.

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

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

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

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

Three Months Ended Nine Months Ended

In thousands except per share amounts September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Three Months Ended

In thousands except per share amounts March 31, 2024 December 31, 2023 March 31, 2023

Net income (loss) $ (29,117) $ (25,505) $ (24,586)

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(Gain) loss on sale of assets and securities 3,536 12,547 9

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

Gain on debt extinguishment (774) (2,961) (3,735) —

COVID-19 costs 14 21 92 1,585

(Gain) loss on debt extinguishment (438) 298 —

Other adjustments 5,461 2,188 126

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Adjusted net income (loss) per share, Diluted $ (0.05) $ (0.02) $ (0.11)

(1) For the three months ended September 30, 2023, tax effect of adjustments of $0.2 million (-8%) is primarily related to fair value adjustments on the Company’s equity investments, and LCM adjustment recorded at Rochester.

For the three months ended June 30, 2023, tax effect of adjustments of $1.1 million (-9%) is primarily related to fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

For the nine months ended September 30, 2023, tax effect of adjustments of $1.4 million (-25%) is primarily related to the fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

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

(1) For the three months ended March 31, 2024, Tax effect of adjustments of $1.1 million (12.3%) is primarily related to the Kensington royalty settlement and LCM adjustment recorded at Rochester.

For the three months ended December 31, 2023, Tax effect of adjustments of $3.2 million (19%) is primarily related to the fair value adjustments on the Company’s equity investments, and the loss on the sale of assets and LCM adjustment recorded at Rochester.

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

EBITDA and Adjusted EBITDA

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

Three Months Ended Nine Months Ended

In thousands except per share amounts September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Three Months Ended

In thousands except per share amounts March 31, 2024 December 31, 2023 March 31, 2023

Net income (loss) $ (29,117) $ (25,505) $ (24,586)

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(Gain) loss on sale of assets and securities 3,536 12,547 9

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

Gain on debt extinguishment (774) (2,961) (3,735) —

COVID-19 costs 14 21 92 1,585

(Gain) loss on debt extinguishment (438) 298 —

Other adjustments 5,461 2,188 126

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

Three Months Ended Nine Months Ended

(Dollars in thousands) September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Consolidated Three Months Ended

(Dollars in thousands) March 31, 2024 December 31, 2023 March 31, 2023

Cash flow from operations $ (15,871) $ 65,277 $ (35,003)

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

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

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

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

Three Months Ended Nine Months Ended

(Dollars in thousands) September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Three Months Ended

(Dollars in thousands) March 31, 2024 December 31, 2023 March 31, 2023

Cash provided by (used in) operating activities $ (15,871) $ 65,277 $ (35,003)

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

Three Months Ended September 30, 2023

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

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

GAAP) $ 57,083 $ 34,708 $ 45,180 $ 32,614 $ 919 $ 170,504

Amortization (9,024) (4,176) (6,894) (1,588) (919) (22,601)

Costs applicable to sales $ 48,059 $ 30,532 $ 38,286 $ 31,026 $ — $ 147,903

Gold ounces 26,018 4,432 24,516 23,049 — 78,015

Silver ounces 1,533,975 606,083 — 73,677 — 2,213,735

Costs applicable to sales

Gold ($/oz) $ 924 $ 2,549 $ 1,559 $ 1,268

Silver ($/oz) $ 15.67 $ 31.74 $ —

Three Months Ended June 30, 2023

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

Three Months Ended March 31, 2024

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

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

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Silver ($/oz) $ 13.30 $ 20.93 $ —

Nine Months Ended September 30, 2023

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

Three Months Ended December 31, 2023

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

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

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Silver ($/oz) $ 15.32 $ 25.46 $ —

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

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

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Silver ($/oz) $ 14.00 $ 29.51 $ —

Reconciliation of Costs Applicable to Sales for Updated 2023 Guidance

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

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

GAAP) $ 232,269 $ 181,642 $ 114,698

Amortization (36,538) (26,295) (6,330)

Costs applicable to sales $ 195,731 $ 155,347 $ 108,368

By-product credit — (193) (5,288)

Adjusted costs applicable to sales $ 195,731 $ 155,154 $ 103,080

Gold ounces 99,719 83,310 89,109

Silver ounces 6,558,482 221,306

Revenue Split

Gold 49% 100% 100%

Adjusted costs applicable to sales

Gold ($/oz) $900 - $1,050 $1,850 - $1,950 $1,200 - $1,350

Silver ($/oz) $14.25 - $15.25

Cautionary Statement Concerning Forward-Looking Statements

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

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in the Q1 2023 10-Q, the Q2 2023 10-Q and in “Risk Factors” section of the 2022 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, equipment and materials availability, and inflationary pressures, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, (xii) breaches or lapses in the security of technology systems on which the Company relies, which could compromise the data stored within them, as well as failure to comply with ever-evolving global privacy and security regulatory obligations, and (xiii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in “Risk Factors” section of the 2023 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of a future pandemic, equipment and materials availability, and inflationary pressures, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, (xii) breaches or lapses in the security of technology systems on which the Company relies, which could compromise the data stored within them, as well as failure to comply with ever-evolving global privacy and security regulatory obligations, and (xiii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

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

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis