Coeur Mining, Inc. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Coeur Mining, Inc. and its subsidiaries (collectively the “Company”, “our”, or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this Item. We provide Costs applicable to sales (“CAS”) allocation, referred to as the co-product method, based on revenue contribution for Palmarejo and Rochester and based on the primary metal, referred to as the by-product method, for Wharf. Revenue from secondary metal, such as silver at Wharf, is treated as a cost credit. Overview We are primarily a gold and silver producer with operating assets located in the United States and Mexico and an exploration project in Canada. First Quarter Highlights For the quarter, Coeur reported revenue of $213.1 million and cash used in operating activities of $15.9 million. We reported GAAP net loss of $29.1 million, or $0.08 per diluted share. 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. • 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 24 Selected Financial and Operating Results Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Financial Results: (in thousands, except per share amounts) Gold sales $ 151,769 $ 187,718 $ 127,101 Silver sales $ 61,291 $ 74,372 $ 60,197 Consolidated Revenue $ 213,060 $ 262,090 $ 187,298 Net income (loss) $ (29,117) $ (25,505) $ (24,586) Net income (loss) per share, diluted $ (0.08) $ (0.07) $ (0.08) Adjusted net income (loss) (1) $ (19,021) $ (6,218) $ (33,058) Adjusted net income (loss) per share, diluted (1) $ (0.05) $ (0.02) $ (0.11) EBITDA (1) $ 27,151 $ 25,011 $ 16,219 Adjusted EBITDA (1) $ 44,339 $ 64,292 $ 25,127 Total debt (2) $ 585,552 $ 545,310 $ 494,086 Operating Results: Gold ounces produced 80,744 101,609 69,039 Silver ounces produced 2,584,760 3,050,496 2,534,883 Gold ounces sold 81,416 99,540 70,866 Silver ounces sold 2,600,435 3,000,338 2,588,919 Average realized price per gold ounce $ 1,864 $ 1,886 $ 1,794 Average realized price per silver ounce $ 23.57 $ 24.79 $ 23.25 (1) See “Non-GAAP Financial Performance Measures.” (2) Includes finance leases. Net of debt issuance costs and premium received. Consolidated Financial Results Three Months March 31, 2024 compared to Three Months December 31, 2023 Revenue 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 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 March 31, 2024 December 31, 2023 Gold sales $ 151,769 $ 187,718 $ (35,949) (19) % Silver sales 61,291 74,372 (13,081) (18) % Metal sales $ 213,060 $ 262,090 $ (49,030) (19) % Costs Applicable to Sales 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. 25 Amortization 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. Expenses 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 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) % Pre-development, reclamation and other expense $ 18,228 $ 24,686 $ (6,458) (26) % Other Income and Expenses 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 $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) 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. 26 The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit: Three Months Ended March 31, Three Months Ended December 31, 2024 2023 In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit United States $ (30,553) $ (3,819) $ (23,027) $ (2,109) Canada (7,584) (114) (10,525) (848) Mexico 25,204 (12,091) 16,652 (5,528) Other jurisdictions (160) — (120) — $ (13,093) $ (16,024) $ (17,020) $ (8,485) A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors”. Net Loss Net loss was $29.1 million, or $0.08 per diluted share, compared to $25.5 million, or $0.07 per diluted share. 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”). Three Months March 31, 2024 compared to Three Months Ended March 31, 2023 Revenue 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 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: Three Months Ended Increase (Decrease) Percentage Change In thousands March 31, 2024 March 31, 2023 Gold sales $ 151,769 $ 127,101 $ 24,668 19 % Silver sales 61,291 60,197 1,094 2 % Metal sales $ 213,060 $ 187,298 $ 25,762 14 % Costs Applicable to Sales 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. 27 Amortization 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. Expenses 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: Three Months Ended March 31, Increase (Decrease) Percentage Change In thousands 2024 2023 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 % Pre-development, reclamation and other expense $ 18,228 $ 10,890 $ 7,338 67 % Other Income and Expenses 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. 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 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) mining taxes; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) percentage depletion; (v) foreign exchange rates; and (vi) the impact of uncertain tax positions. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period. 28 The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit: Three Months Ended March 31, 2024 2023 In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit United States $ (27,480) $ (3,383) $ (25,780) $ (1,018) Canada (7,584) (114) (9,294) — Mexico 25,204 (12,091) 21,399 (9,690) Other jurisdictions (3,233) (436) (203) — $ (13,093) $ (16,024) $ (13,878) $ (10,708) A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors”. Net Loss Net loss was $29.1 million, or $0.08 per diluted share, compared to $24.6 million, or $0.08 per diluted share. 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”). 29 Results of Operations Palmarejo Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Tons milled 500,747 500,509 533,606 Average gold grade (oz/t) 0.070 0.060 0.052 Average silver grade (oz/t) 4.34 4.08 4.02 Average recovery rate – Au 95.2 % 89.4 % 90.1 % Average recovery rate – Ag 83.7 % 79.4 % 81.7 % Gold ounces produced 33,160 25,401 25,118 Silver ounces produced 1,818,297 1,621,247 1,752,430 Gold ounces sold 33,462 24,848 25,970 Silver ounces sold 1,796,468 1,644,592 1,795,159 CAS per gold ounce (1) $ 909 $ 1,014 $ 930 CAS per silver ounce (1) $ 13.30 $ 15.32 $ 14.00 (1) See Non-GAAP Financial Performance Measures. 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 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. 30 Rochester Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Tons placed (1) 3,135,571 2,754,058 2,456,586 Average gold grade (oz/t) 0.002 0.003 0.003 Average silver grade (oz/t) 0.52 0.44 0.45 Gold ounces produced 5,755 19,847 8,155 Silver ounces produced 699,190 1,339,793 761,346 Gold ounces sold 6,185 19,175 8,349 Silver ounces sold 735,254 1,269,236 769,804 CAS per gold ounce (2) $ 1,877 $ 2,060 $ 2,413 CAS per silver ounce (2) $ 20.93 $ 25.46 $ 29.51 (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 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 $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 $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. 31 Kensington Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Tons milled 167,439 177,382 153,337 Average gold grade (oz/t) 0.14 0.16 0.15 Average recovery rate 90.8 % 92.3 % 91.2 % Gold ounces produced 21,434 26,686 20,296 Gold ounces sold 21,183 25,980 20,902 CAS per gold ounce (1) $ 1,853 $ 1,446 $ 1,785 (1) See Non-GAAP Financial Performance Measures. 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 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 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. Wharf Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Tons placed 1,251,955 1,290,562 1,156,794 Average gold grade (oz/t) 0.021 0.027 0.032 Gold ounces produced 20,395 29,675 15,470 Silver ounces produced 67,273 89,456 21,107 Gold ounces sold 20,586 29,537 15,645 Silver ounces sold 68,713 86,510 23,956 CAS per gold ounce (1) $ 1,155 $ 1,019 $ 1,468 (1) See Non-GAAP Financial Performance Measures. 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 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. 32 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 $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. Silvertip 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 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 $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. 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. Our longer-term plans contemplate the expansion and restart of Silvertip, as well as the continued exploration to extend mine lives at all of our operating sites. We also have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other purchase obligations and commitments for purchases of goods and services. If and to the extent liquidity resources are insufficient to support short- and long-term expenditures, we may need to 33 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 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 Changes in operating assets and liabilities: Receivables (5,316) (726) 3,050 Prepaid expenses and other (639) (1,225) (496) Inventories (19,694) 7,401 (17,635) Accounts payable and accrued liabilities 40,385 14,490 (26,145) Cash provided by (used in) operating activities $ (15,871) $ 65,277 $ (35,003) 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 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 34 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 We believe that our liquidity and capital resources in the U.S. are adequate to fund our U.S. operations and corporate activities. 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. 35 In order to reduce indebtedness, fund future cash interest payments and/or amounts due at maturity or upon redemption and for general working capital purposes, from time-to-time we may (1) issue equity securities for cash in public or private offerings or (2) repurchase certain of our debt securities for cash or in exchange for other securities, which may include secured or unsecured notes or equity, in each case in open market or privately negotiated transactions. We evaluate any such transactions in light of prevailing market conditions, liquidity requirements, contractual restrictions, and other factors. The amounts involved may be significant and any debt repurchase transactions may occur at a substantial discount to the debt securities’ face amount. Non-GAAP Financial Performance Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). Unless otherwise noted, we present the Non-GAAP financial measures in the tables below. These measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP. Adjusted Net Income (Loss) Management uses Adjusted net income (loss) to evaluate the Company’s operating performance, and to plan and forecast its operations. The Company believes the use of Adjusted net income (loss) reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management’s determination of the components of Adjusted net income (loss ) are evaluated periodically and is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. Adjusted net income (loss) is reconciled to Net income (loss) in the following table: 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) Fair value adjustments, net — 1,245 (10,561) Foreign exchange loss (gain) 484 (156) 1,991 (Gain) loss on sale of assets and securities 3,536 12,547 9 (Gain) loss on debt extinguishment (438) 298 — Other adjustments 5,461 2,188 126 Tax effect of adjustments (1) 1,053 3,165 (37) Adjusted net income (loss) $ (19,021) $ (6,218) $ (33,058) Adjusted net income (loss) per share, Basic $ (0.05) $ (0.02) $ (0.11) Adjusted net income (loss) per share, Diluted $ (0.05) $ (0.02) $ (0.11) (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 Management uses EBITDA to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company believes the use of EBITDA reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Adjusted EBITDA is a measure used in the indenture governing the 2029 Senior Notes and the RCF to determine our ability to make certain payments and incur additional indebtedness. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income (Loss) or Cash Flow from Operations as determined under GAAP. Other companies may calculate Adjusted EBITDA differently and those calculations may not be comparable to our presentation. Adjusted EBITDA is reconciled to Net income (loss) in the following table: 36 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) Interest expense, net of capitalized interest 12,947 7,396 7,389 Income tax provision (benefit) 16,024 8,485 10,708 Amortization 27,297 34,635 22,708 EBITDA 27,151 25,011 16,219 Fair value adjustments, net — 1,245 (10,561) Foreign exchange (gain) loss 365 353 1,154 Asset retirement obligation accretion 4,076 4,186 3,993 Inventory adjustments and write-downs 4,188 18,464 14,187 (Gain) loss on sale of assets and securities 3,536 12,547 9 (Gain) loss on debt extinguishment (438) 298 — Other adjustments 5,461 2,188 126 Adjusted EBITDA $ 44,339 $ 64,292 $ 25,127 Free Cash Flow Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Cash Provided By (used in) Operating Activities less Capital expenditures as presented on the Condensed Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies. The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow. 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) Capital expenditures 42,083 92,715 74,048 Free cash flow $ (57,954) $ (27,438) $ (109,051) Operating Cash Flow Before Changes in Working Capital Management uses Operating Cash Flow Before Changes in Working Capital as a non-GAAP measure to analyze cash flows generated from operations. Operating Cash Flow Before Changes in Working Capital is Cash Provided By (used in) Operating Activities excluding the change in Receivables , Prepaid expenses and other , Inventories and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows. The Company believes Operating Cash Flow Before Changes in Working Capital is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Operating Cash Flow Before Changes in Working Capital and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Operating Cash Flow Before Changes in Working Capital is not necessarily comparable to such other similarly titled captions of other companies. The following table sets forth a reconciliation of Operating Cash Flow Before Changes in Working Capital, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Operating Cash Flow Before Changes in Working Capital. 37 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) Changes in operating assets and liabilities: Receivables 5,316 726 (3,050) Prepaid expenses and other 639 1,225 496 Inventories 19,694 (7,401) 17,635 Accounts payable and accrued liabilities (40,385) (14,490) 26,145 Operating cash flow before changes in working capital $ (30,607) $ 45,337 $ 6,223 Costs Applicable to Sales Management uses CAS to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation. We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold and silver, assessing our operating performance and ability to generate free cash flow from operations and sustaining production. These measures may not be indicative of operating profit or cash flow from operations as determined under GAAP. Management believes that allocating CAS to gold and silver based on gold and silver metal sales relative to total metal sales best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company. Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards. 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. GAAP) $ 66,896 $ 33,632 $ 44,885 $ 26,808 $ 852 $ 173,073 Amortization (12,602) (6,633) (5,596) (1,393) (852) (27,076) Costs applicable to sales $ 54,294 $ 26,999 $ 39,289 $ 25,415 $ — $ 145,997 Metal Sales Gold ounces 33,462 6,185 21,183 20,586 — 81,416 Silver ounces 1,796,468 735,254 — 68,713 — 2,600,435 Costs applicable to sales Gold ($/oz) $ 909 $ 1,877 $ 1,853 $ 1,155 Silver ($/oz) $ 13.30 $ 20.93 $ — 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. GAAP) $ 60,345 $ 85,155 $ 46,207 $ 34,150 $ 858 $ 226,715 Amortization (9,949) (13,349) (8,366) (1,892) (858) (34,414) Costs applicable to sales $ 50,396 $ 71,806 $ 37,841 $ 32,258 $ — $ 192,301 Metal Sales Gold ounces 24,848 19,175 25,980 29,537 99,540 Silver ounces 1,644,592 1,269,236 — 86,510 — 3,000,338 Costs applicable to sales Gold ($/oz) $ 1,014 $ 2,060 $ 1,446 $ 1,019 Silver ($/oz) $ 15.32 $ 25.46 $ — 38 Three Months Ended March 31, 2023 In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S. GAAP) $ 57,984 $ 48,083 $ 43,226 $ 24,953 $ 1,221 $ 175,467 Amortization (8,719) (5,218) (5,844) (1,409) (1,221) (22,411) Costs applicable to sales $ 49,265 $ 42,865 $ 37,382 $ 23,544 $ — $ 153,056 Metal Sales Gold ounces 25,970 8,349 20,902 15,645 70,866 Silver ounces 1,795,159 769,804 — 23,956 — 2,588,919 Costs applicable to sales Gold ($/oz) $ 930 $ 2,413 $ 1,785 $ 1,468 Silver ($/oz) $ 14.00 $ 29.51 $ — 39 Cautionary Statement Concerning Forward-Looking Statements This Report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold and silver mining business, including statements regarding operations and activities at the Company’s properties, exploration and development efforts, mine lives, strategies, expectations regarding the Rochester expansion project (including future LCM adjustments), the tax treatment of the FT Shares and the risk that related exploration efforts at Silvertip will not occur on a timely basis or at all, inflation, hedging strategies, realization of deferred tax assets, expectations about the recovery of unduly paid VAT in Mexico, timing of completion of obligations under prepayment agreements, liquidity management, financing plans, risk management strategies, capital allocation and anticipated production, costs, expenses, and cash flow. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. 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 “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. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.