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Item 1. Financial Statements

2024-08-07 compared with 2024-05-01 · 202 added, 144 removed, 611 unchanged (36% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

ASSETS Notes In thousands, except share data

29 unchanged sentences

Common stock, par value $ 0.01 per share;

authorized 600,000,000 shares, 398,583,321 issued and outstanding at March 31, 2024 and 386,282,957 at December 31, 2023

authorized 600,000,000 shares, 399,240,520 issued and outstanding at June 30, 2024 and 386,282,957 at December 31, 2023

Additional paid-in capital 4,176,668 4,139,870

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Notes In thousands, except share data

9 unchanged sentences

OTHER INCOME (EXPENSE), NET

Gain on debt extinguishment 438 —

Gain (loss) on debt extinguishment ( 21 ) 2,961 417 2,961

Fair value adjustments, net 11 — ( 3,922 ) — 6,639

19 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Notes In thousands

7 unchanged sentences

Stock-based compensation 10 2,732 2,676 6,980 5,827

Loss on the sale of assets 13 — ( 9 )

Loss on the sale or disposition of assets 13 — 12,631 — 12,631

Write-downs 5 — 1,627 3,235 14,740

42 unchanged sentences

Balances at March 31, 2024 398,583 $ 3,986 $ 4,170,568 $ ( 3,150,278 ) $ ( 6,147 ) $ 1,018,129

Net income (loss) — — — 1,426 — 1,426

Other comprehensive income (loss) — — — — 6,147 6,147

Kensington royalty settlement 738 7 3,399 — — 3,406

Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net ( 80 ) ( 1 ) 2,701 — — 2,700

Balances at June 30, 2024 399,241 $ 3,992 $ 4,176,668 $ ( 3,148,852 ) $ — $ 1,031,808

In thousands Common

12 unchanged sentences

Balances at March 31, 2023 331,042 $ 3,310 $ 3,990,080 $ ( 3,042,135 ) $ ( 4,719 ) $ 946,536

Net income (loss) — — — ( 32,412 ) — ( 32,412 )

Other comprehensive income (loss) — — — — 14,066 14,066

Common stock issued for the extinguishment of Senior Notes 13,941 140 45,328 — — 45,468

Common stock issued under Private Placement Offering 5,276 53 12,603 — — 12,656

Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net ( 92 ) ( 1 ) 2,449 — — 2,448

Balances at June 30, 2023 350,167 $ 3,502 $ 4,050,460 $ ( 3,074,547 ) $ 9,347 $ 988,762

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

42 unchanged sentences

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.

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 2, 3 and 4) 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.

There are five reusable heap leach pads (load/offload) used at Wharf.

Each pad goes through an approximate 24-month process of loading of ore, leaching and offloading which includes a neutralization and denitrification process.

During the leaching cycle of each pad, revised estimated recoverable ounces for each of the pads may result in an upward or downward revision from time to time, which have not historically been significant.

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.

As of June 30, 2024, the Company’s estimated recoverable ounces of gold and silver on the leach pads were 38,092 and 5.6 million, respectively.

Recently Issued Accounting Standards

22 unchanged sentences

Financial information relating to the Company’s segments is as follows (in thousands):

Three Months Ended March 31, 2024 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Three Months Ended June 30, 2024 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 42,411 $ 17,368 $ 51,104 $ 43,202 $ — $ — $ 154,085

21 unchanged sentences

(3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail.

Three Months Ended March 31, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Three Months Ended June 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 35,296 $ 12,638 $ 24,538 $ 48,883 $ — $ — $ 121,355

8 unchanged sentences

Other income (expense)

Gain on debt extinguishment — — — — — 2,961 2,961

Fair value adjustments, net — — — — — ( 3,922 ) ( 3,922 )

13 unchanged sentences

Notes to Consolidated Financial Statements

Assets March 31, 2024 December 31, 2023

Six Months Ended June 30, 2024 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 96,313 $ 30,049 $ 94,589 $ 84,903 $ — $ — $ 305,854

Silver sales 83,311 42,544 ( 16 ) 3,393 — — 129,232

Metal sales 179,624 72,593 94,573 88,296 — — 435,086

Costs and Expenses

Costs applicable to sales (1)

102,521 63,654 80,010 44,529 — — 290,714

Amortization 23,445 15,203 12,041 2,460 1,642 434 55,225

Exploration 5,063 1,408 2,836 1,249 11,725 1,084 23,365

Other operating expenses 4,700 8,576 8,755 2,245 5,109 23,078 52,463

Other income (expense)

Gain on debt extinguishment — — — — — 417 417

Fair value adjustments, net — — — — — — —

Interest expense, net 371 ( 2,395 ) ( 970 ) ( 277 ) ( 10 ) ( 22,828 ) ( 26,109 )

Other, net (3)

3,427 ( 116 ) ( 163 ) ( 87 ) ( 40 ) 4,874 7,895

Income and mining tax (expense) benefit ( 18,994 ) 906 — ( 3,008 ) — ( 2,117 ) ( 23,213 )

Net Income (loss) $ 28,699 $ ( 17,853 ) $ ( 10,202 ) $ 34,441 $ ( 18,526 ) $ ( 44,250 ) $ ( 27,691 )

Segment assets (2)

$ 302,034 $ 1,125,586 $ 196,671 $ 108,268 $ 213,833 $ 51,885 $ 1,998,277

Capital expenditures $ 12,632 $ 48,773 $ 29,735 $ 1,464 $ 859 $ 25 $ 93,488

(1) Excludes amortization.

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests.

(3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail.

Six Months Ended June 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total

Gold sales $ 75,903 $ 28,685 $ 64,662 $ 79,206 $ — $ — $ 248,456

Silver sales 79,132 34,316 137 2,492 — — 116,077

Metal sales 155,035 63,001 64,799 81,698 — — 364,533

Costs and Expenses

Costs applicable to sales (1)

95,856 68,933 76,531 51,373 — — 292,693

Amortization 16,736 8,867 10,645 3,214 2,242 599 42,303

Exploration 2,927 662 3,323 — ( 131 ) 789 7,570

Other operating expenses 3,759 4,425 1,944 2,043 11,507 19,444 43,122

Other income (expense)

Gain on debt extinguishment — — — — — 2,961 2,961

Fair value adjustments, net — — — — — 6,639 6,639

Interest expense, net 300 ( 462 ) ( 855 ) ( 44 ) ( 40 ) ( 13,200 ) ( 14,301 )

Other, net (3)

2,884 ( 140 ) ( 151 ) ( 331 ) ( 119 ) ( 12,711 ) ( 10,568 )

Income and mining tax (expense) benefit ( 15,922 ) 376 — ( 2,720 ) — ( 2,308 ) ( 20,574 )

Net Income (loss) $ 23,019 $ ( 20,112 ) $ ( 28,650 ) $ 21,973 $ ( 13,777 ) $ ( 39,451 ) $ ( 56,998 )

Segment assets (2)

$ 311,609 $ 977,958 $ 160,145 $ 103,249 $ 217,831 $ 61,920 $ 1,832,712

Capital expenditures $ 22,064 $ 113,420 $ 22,358 $ 271 $ 807 $ 709 $ 159,629

(1) Excludes amortization.

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests.

(3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail.

Assets June 30, 2024 December 31, 2023

Total assets for reportable segments $ 1,998,277 $ 1,943,037

2 unchanged sentences

Total consolidated assets $ 2,143,049 $ 2,080,848

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Geographic Information

Long-Lived Assets March 31, 2024 December 31, 2023

Long-Lived Assets June 30, 2024 December 31, 2023

United States $ 1,218,875 $ 1,201,988

3 unchanged sentences

Total $ 1,695,951 $ 1,688,288

Revenue Three months ended March 31,

Revenue Three months ended June 30, Six months ended June 30,

2024 2023 2024 2023

United States $ 138,780 $ 104,507 $ 255,462 $ 209,498

3 unchanged sentences

Receivables consist of the following:

In thousands March 31, 2024 December 31, 2023

In thousands June 30, 2024 December 31, 2023

Current receivables:

14 unchanged sentences

(1) See Note 11 -- Fair Value Measurements for additional details on deferred cash consideration and contingent consideration in the 2023 10-K.

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

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

See Note 12 -- Derivative Financial Instruments & Hedging for additional details on the gold and silver forward hedges.

5 unchanged sentences

Inventory consists of the following:

In thousands March 31, 2024 December 31, 2023

In thousands June 30, 2024 December 31, 2023

Concentrate $ 3,187 $ 3,606

10 unchanged sentences

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

In the three months ended March 31, 2024, the cost associated with the stock-pile at Rochester exceeded its net realizable value, which resulted in non-cash write down of $ 4.0 million ($ 3.2 million was recognized in Costs applicable to sales and $ 0.8 million in Amortization ) .

In the first quarter of 2024, the cost associated with the stock-pile at Rochester exceeded its net realizable value, which resulted in non-cash write down of $ 4.0 million ($ 3.2 million was recognized in Costs applicable to sales and $ 0.8 million in Amortization ).

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT AND MINING PROPERTIES, NET

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

In thousands March 31, 2024 December 31, 2023

In thousands June 30, 2024 December 31, 2023

Mine development $ 1,394,378 $ 1,358,189

9 unchanged sentences

Property, plant and equipment and mining properties, net $ 1,695,951 $ 1,688,288

(1) Includes $ 120.8 million and $ 127.6 million associated with facilities and equipment assets under finance leases at March 31, 2024 and December 31, 2023, respectively.

(2) Includes $ 18.0 million and $ 471.7 million of construction costs related to the Rochester Expansion project at March 31, 2024 and December 31, 2023, respectively.

(3) Includes $ 40.1 million and $ 37.6 million of accumulated amortization related to assets under finance leases at March 31, 2024 and December 31, 2023, respectively.

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.

(1) Includes $ 119.8 million and $ 127.6 million associated with facilities and equipment assets under finance leases at June 30, 2024 and December 31, 2023, respectively.

(2) Includes $ 3.5 million and $ 471.7 million of construction costs related to the Rochester expansion project at June 30, 2024 and December 31, 2023, respectively.

(3) Includes $ 47.0 million and $ 37.6 million of accumulated amortization related to assets under finance leases at June 30, 2024 and December 31, 2023, respectively.

Commissioning of Rochester’s new three-stage crushing circuit and truck load-out facility was completed on March 7, 2024, leading to declaration of commercial production and $ 528 million of construction in process placed into service in the first quarter of 2024.

The Company successfully completed the ramp-up of all three stages of the crushing circuit at the end the second quarter by achieving daily throughput rates of over 88,000 tons per day.

Coeur Mining, Inc.

2 unchanged sentences

NOTE 7 – DEBT

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

In thousands Current Non-Current Current Non-Current

5 unchanged sentences

$ 22,213 $ 607,114 $ 22,636 $ 522,674

(1) Net of unamortized debt issuance costs of $ 3.6 million and $ 3.9 million at March 31, 2024 and December 31, 2023, respectively.

(2) Unamortized debt issuance costs of $ 4.4 million and $ 2.8 million at March 31, 2024 and December 31, 2023, respectively, included in Other Non-Current Assets .

(1) Net of unamortized debt issuance costs of $ 3.4 million and $ 3.9 million at June 30, 2024 and December 31, 2023, respectively.

(2) Unamortized debt issuance costs of $ 4.2 million and $ 2.8 million at June 30, 2024 and December 31, 2023, respectively, included in Other Non-Current Assets .

2029 Senior Notes

1 unchanged sentence

For more details, please see Note 9 -- Debt contained in the 2023 10-K.

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.

In March 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.

Based on the closing price of the Company’s common stock on the dates of the exchange, the exchanges resulted in a gain of $ 0.4 million on debt extinguishment.

1 unchanged sentence

Revolving Credit Facility

At March 31, 2024, the Company had $ 225.0 million drawn at a weighted-average interest rate of 9.2 %, $ 29.6 million in outstanding letters of credit and $ 145.4 million available under its $ 400.0 million revolving credit facility (the “RCF”).

At June 30, 2024, the Company had $ 275.0 million drawn at a weighted-average interest rate of 9.2 %, $ 29.5 million in outstanding letters of credit and $ 95.5 million available under its $ 400.0 million revolving credit facility (the “RCF”).

Future borrowing may be subject to certain financial covenants.

4 unchanged sentences

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

In the three months ended March 31, 2024, the Company entered into a new lease financing arrangement for mining equipment at Kensington for $ 1.0 million.

In the six months ended June 30, 2024, the Company entered into a new lease financing arrangement for mining equipment at Kensington for $ 1.0 million.

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

For more details, please see Note 8 -- Leases in the 2023 10-K.

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Interest Expense

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

6 unchanged sentences

Total interest expense, net of capitalized interest $ 13,162 $ 6,912 $ 26,109 $ 14,301

Coeur Mining, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 8 – RECLAMATION

3 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

4 unchanged sentences

NOTE 9 - INCOME AND MINING TAXES

The following table summarizes the components of Income and mining tax (expense) benefit for the three months ended March 31, 2024 and 2023 by significant jurisdiction:

Three months ended March 31,

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

The following table summarizes the components of Income and mining tax (expense) benefit for the three and six months ended June 30, 2024 and 2023 by significant jurisdiction:

Three months ended June 30, Six months ended June 30,

2024 2023 2024 2023

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

United States $ ( 4,660 ) $ 1,677 $ ( 35,540 ) $ ( 2,264 ) $ ( 33,890 ) $ ( 2,142 ) $ ( 61,320 ) $ ( 3,282 )

3 unchanged sentences

$ 8,615 $ ( 7,189 ) $ ( 22,546 ) $ ( 9,866 ) $ ( 4,478 ) $ ( 23,213 ) $ ( 36,424 ) $ ( 20,574 )

During the first quarter of 2024, the Company reported estimated income and mining tax expense of approximately $ 16.0 million, resulting in an effective tax rate of ( 122.4 )%.

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

During the second quarter of 2024, the Company reported estimated income and mining tax expense of approximately $ 7.2 million, resulting in an effective tax rate of 83.4 %.

This compares to income tax expense of $ 9.9 million for an effective tax rate of ( 43.8 )% during the second quarter of 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:

4 unchanged sentences

(v) foreign exchange rate;

and (vi) the impact of uncertain tax positions.

(vi) the prior year sale of non-core assets;

and (vii) the impact of uncertain tax positions.

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

2 unchanged sentences

Conversely, if it is determined that the Company ultimately will 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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

of factors that impact the Company’s ability to realize its deferred tax assets.

For additional information, please see the section titled “Risk Factors” in the 2023 10-K.

There are a number of factors that impact the Company’s ability to realize its deferred tax assets.

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

The Company or one of its subsidiaries files income tax returns in the U.S.

3 unchanged sentences

Regarding the statutes of limitation that will begin to expire within the next 12 months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that there will be no further decrease in any unrecognized income tax benefits.

At March 31, 2024 and December 31, 2023, the unrecognized tax benefits and accrued income-tax-related interest and penalties were not significant.

At June 30, 2024 and December 31, 2023, the unrecognized tax benefits and accrued income-tax-related interest and penalties were not significant.

The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 10 – STOCK-BASED COMPENSATION

1 unchanged sentence

Stock awards include performance shares, restricted stock and stock options.

Stock-based compensation expense in the three months ended March 31, 2024 was $ 4.2 million, compared to $ 3.2 million in the three months ended March 31, 2023.

At March 31, 2024, there was $ 14.7 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.9 years.

The following table summarizes the grants awarded during the three months ended March 31, 2024:

Stock-based compensation expense in the three and six months ended June 30, 2024 was $ 2.7 million and $ 6.9 million, respectively, compared to $ 2.7 million and $ 5.8 million in the three and six months ended June 30, 2023.

At June 30, 2024, there was $ 13.0 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.8 years.

The following table summarizes the grants awarded during the six months ended June 30, 2024:

Grant date Restricted

4 unchanged sentences

NOTE 11 – FAIR VALUE MEASUREMENTS

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

Change in the value of equity securities (1)

$ — $ ( 3,922 ) $ — $ 6,639

Fair value adjustments, net $ — $ ( 3,922 ) $ — $ 6,639

(1) Includes unrealized losses on held equity securities of $ 2.8 million for the three months ended March 31, 2023.

(1) Includes unrealized losses on held equity securities of $ 3.7 million and $ 0.5 million for the three and six months ended June 30, 2023, respectively.

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

2 unchanged sentences

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

Fair Value at March 31, 2024

Fair Value at June 30, 2024

In thousands Total Level 1 Level 2 Level 3

Provisional metal sales contracts $ 41 $ — $ 41 $ —

Silver forwards 1,847 — 1,847 —

$ 2,656 $ — $ 2,656 $ —

Gold forwards

$ 7,994 $ — $ 7,994 $ —

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Provisional metal sales contracts $ 231 $ — $ 231 $ —

Fair Value at December 31, 2023

6 unchanged sentences

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

No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2024.

The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 2024 and December 31, 2023 is presented in the following table:

March 31, 2024

No assets or liabilities were transferred between fair value levels in the six months ended June 30, 2024.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

The fair value of financial assets and liabilities carried at book value in the financial statements at June 30, 2024 and December 31, 2023 is presented in the following table:

June 30, 2024

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

23 unchanged sentences

Derivatives Designated as Cash Flow Hedging Strategies

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

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

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

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

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

At June 30, 2024, the Company had no outstanding derivative cash flow hedge instruments.

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

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

At inception, the Company performed an assessment of the forecasted transactions and the hedging instruments and determined that the hedging relationships are considered perfectly effective.

Future assessments are performed to verify that critical terms of the hedging instruments and the forecasted transactions continue to match, and the forecasted transactions remain probable, as well as an assessment of any adverse developments regarding the risk of the counterparties defaulting on their commitments.

There were no such changes in critical terms or adverse developments.

Coeur Mining, Inc.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements

loss, respectively.

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

At March 31, 2024, the Company had the following derivative cash flow hedge instruments that settle as follows:

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

Gold forwards

Average gold fixed price per ounce $ 2,100 $ —

Notional ounces 49,950 —

Silver forwards

Average silver fixed price per ounce $ 26.00 $ —

Notional ounces 1,800,000 —

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

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

At inception, the Company performed an assessment of the forecasted transactions and the hedging instruments and determined that the hedging relationships are considered perfectly effective.

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

As of March 31, 2024, the Company had $ 6.1 million of net after-tax losses in AOCI related to losses from cash flow hedge transactions, of which $ 6.1 million of net after-tax losses is expected to be recognized in its Condensed Consolidated Statement of Comprehensive Income (Loss) during the next 12 months.

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

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

March 31, 2024

June 30, 2024

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

5 unchanged sentences

Silver forwards $ 3,312 $ — $ —

The following table sets forth the after-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2024, and 2023, respectively (in thousands).

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three Months Ended March 31,

The following table sets forth the after-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCI and the Condensed Consolidated Statement of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023, respectively (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Amount of Gain (Loss) Recognized in AOCI

12 unchanged sentences

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

At March 31, 2024, the Company had the following derivative instruments that settle as follows:

At June 30, 2024, the Company had the following derivative instruments that settle as follows:

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

3 unchanged sentences

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

March 31, 2024

June 30, 2024

In thousands Prepaid expenses and other Accrued liabilities and other

Provisional metal sales contracts $ 41 $ 231

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

December 31, 2023

1 unchanged sentence

Provisional metal sales contracts $ 318 $ —

The following represent mark-to-market gains (losses) on derivative instruments in the three months ended March 31, 2024, and 2023, respectively (in thousands):

Three Months Ended March 31,

The following represent mark-to-market gains (losses) on derivative instruments in the three and six months ended June 30, 2024 and 2023, respectively (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Financial statement line Derivative 2024 2023 2024 2023

Revenue Provisional metal sales contracts $ ( 998 ) $ ( 71 ) $ ( 508 ) $ ( 319 )

$ 490 $ ( 249 )

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

1 unchanged sentence

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 13 – ADDITIONAL COMPREHENSIVE INCOME (LOSS) DETAIL

Pre-development, reclamation, and other consists of the following:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

5 unchanged sentences

Pre-development, reclamation and other $ 8,590 $ 10,360 $ 26,818 $ 21,250

(1) See Note 16 -- Commitments and Contingencies for additional details on Kensington royalty settlement .

(1) See Note 16 -- Commitments and Contingencies for additional details on the Kensington royalty settlement .

Other, net consists of the following:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

2 unchanged sentences

Flow-through shares 1,455 — 3,945 —

RMC bankruptcy distribution 1,199 1,516 1,199 1,516

Other 379 569 1,027 762

3 unchanged sentences

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

For the three months ended March 31, 2024 and 2023, there were 43,422 and 366,946 common stock equivalents, respectively, related to equity-based awards that were not included in the diluted earnings per share calculation as the shares would be antidilutive.

Three months ended March 31,

For the three and six months ended June 30, 2024, there were 29,130 and 4.6 million common stock equivalents, respectively, related to equity-based awards that were not included in the diluted earnings per share calculation as the shares would be antidilutive.

Similarly, 2.0 million and 1.7 million common stock equivalents were excluded in the diluted earnings per share calculation for the three and six months ended June 30, 2023, respectively.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three months ended June 30, Six months ended June 30,

In thousands except per share amounts 2024 2023 2024 2023

8 unchanged sentences

On February 26, 2024, the Company entered into subscription agreements (the “Subscription Agreements”) with certain Canadian accredited investors (the “Investors”) for a private placement offering (the “Private Placement Offering”) of an aggregate of 7,704,725 shares of common stock, par value $ 0.01 per share, to be issued as “flow-through shares,” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), which closed on March 8, 2024.

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

The initial Private Placement Offering raised net proceeds of $ 23.7 million, of

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

which $ 0.9 million represents net proceeds received in excess of the Company’s trading price (“FT Premium Liability”).

During the quarter the Company recognized the remaining FT Premium Liability associated with the prior year private placement offering of flow-through shares resulting in income of $ 2.5 million included in Other, net.

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

The initial Private Placement Offering raised net proceeds of $ 23.7 million, of which $ 0.9 million represents net proceeds received in excess of the Company’s trading price (“FT Premium Liability”).

During the six months ended June 30, 2024, the Company recognized a portion of the FT Premium Liability associated with the prior year private placement offering of flow-through shares resulting in income of $ 3.9 million included in Other, net.

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

13 unchanged sentences

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

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

Coeur Mining, Inc.

Guarantor Subsidiaries

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

Subsidiary Guarantors

In thousands June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

Current assets $ 12,209 $ 19,850 $ 186,956 $ 143,170

7 unchanged sentences

SUMMARIZED STATEMENTS OF INCOME

THREE MONTHS ENDED MARCH 31, 2024

SIX MONTHS ENDED JUNE 30, 2024

In thousands Coeur Mining, Inc.

Guarantor Subsidiaries

Subsidiary Guarantors

Revenue $ — $ 255,462

1 unchanged sentence

Net income (loss) $ ( 27,691 ) $ 6,361

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 16 – COMMITMENTS AND CONTINGENCIES

Mexico Litigation Matters

As of March 31, 2024, $ 31.6 million in principal is due from the Mexican government associated with amounts that were paid as VAT under Coeur Mexicana, S.A.

As of June 30, 2024, $ 28.7 million in principal is due from the Mexican government associated with amounts that were paid as VAT under Coeur Mexicana, S.A.

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

2 unchanged sentences

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

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

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

4 unchanged sentences

Palmarejo Gold Stream

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

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

Coeur Mexicana currently sells 50 % of Palmarejo gold production (excluding production from certain properties acquired in 2015 and 2024) to a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) under a gold stream agreement for the lesser of $ 800 or spot price per ounce (“Franco-Nevada Gold Stream Agreement”).

The Franco-Nevada Gold Stream Agreement supersedes an earlier arrangement made in January 2009 in which Franco-Nevada purchased a royalty covering 50 % of the life of mine gold to be produced by Coeur Mexicana from its Palmarejo silver and gold mine in Mexico in exchange for total consideration of $ 78.0 million, consisting of $ 75.0 million in cash plus a warrant to acquire Franco-Nevada Common Shares that was then-valued at $ 3.0 million (the “Prior Gold Stream Agreement”).

The Prior Gold Stream Agreement was terminated in 2014 and its minimum ounce delivery requirement satisfied in 2016, after which sales under the Franco-Nevada Gold Stream Agreement commenced.

Under the Franco-Nevada Gold Stream Agreement, Coeur Mexicana received a $ 22.0

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

million deposit toward future deliveries under the gold stream agreement.

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

3 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

5 unchanged sentences

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

In December 2023, the Company received a $ 25.0 million prepayment, all of which was recognized as revenue in the first quarter of 2024.

In March 2024, the Company received an additional prepayment of $ 25.0 million.

Additionally, in June 2023, the Company entered into sales and purchase contracts with a metal sales counterparty for gold of electrolytic cathodic sludge from its Wharf mine and gold and silver doré from its Rochester mine, which was amended in September 2023 to increase the maximum amount available in prepayments to $ 12.5 million and $ 17.5 million, respectively.

In December 2023, Wharf and Rochester received prepayments of $ 12.5 million and $ 17.5 million, respectively, all of which

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

were recognized as revenue in the first quarter of 2024.

In March 2024, Wharf and Rochester received prepayments of $ 12.5 million and $ 17.5 million, respectively.

In March 2024, the Company received an additional prepayment of $ 25.0 million, of which $ 12.0 million was recognized as revenue in the second quarter of 2024.

Additionally, in June 2023, the Company entered into sales and purchase contracts with a metal sales counterparty for gold electrolytic cathodic sludge from its Wharf mine and gold and silver doré from its Rochester mine, both of which were amended in September 2023 to increase the maximum amount available in prepayments to $ 12.5 million and $ 17.5 million, respectively.

In June 2024, Wharf and Rochester received additional prepayments of $ 12.5 million and $ 17.5 million, respectively, following the fulfillment of the previous received prepayments received at Wharf and Rochester.

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

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

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

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

See Note 2 -- Summary of Significant Accounting Policies contained in the 2023 10-K for additional detail.

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

In thousands 2024 2023 2024 2023

12 unchanged sentences

(i) 1.25 % for production occurring from January 1, 2024 through December 31, 2026 and (ii) 1.5 % for production occurring on or after January 1, 2027.

The Company also agreed to issue up to 2,455,000 shares of its common stock to an affiliate of Maverix, including common stock having a then-current fair market value of $ 3.0 million by April 2, 2024, and common stock having a then-current fair market value of $ 3.75 million by March 28, 2025 (collectively, the “Settlement Shares”), with a cash-settlement of any shortfall in value if all 2,455,000 shares of common stock are issued.

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

by March 28, 2025 (collectively, the “Settlement Shares”), with a cash-settlement of any shortfall in value if all 2,455,000 shares of common stock are issued.

The settlement provides that credit for the value of certain portions of equity issued to be credited against the royalty, as amended, as payment in arrears for production prior to January 1, 2024.

In April 2024, the Company issued 737,210 shares to settle the first equity issuance valued at $ 3.0 million.

In April 2024, the Company issued 737,210 shares to settle the first equity issuance.

The issuance of the Settlement Shares is being made pursuant to the exemption from the registration requirements afforded by Section 4(a)(2) of the Securities Act of 1933, as amended.

3 unchanged sentences

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

Closing is subject to applicable regulatory approvals in Mexico.

On July 8, 2024, the Company closed on the purchase after receiving an applicable regulatory approval in Mexico and provided payment of the $ 10 million due at closing.

Other Commitments and Contingencies

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

As of March 31, 2024 and December 31, 2023, the Company had surety bonds totaling $ 333.3 million and $ 324.8 million, respectively, in place as financial support for future reclamation and closure costs.

As of June 30, 2024 and December 31, 2023, the Company had surety bonds totaling $ 343.6 million and $ 324.8 million, respectively, in place as financial support for future reclamation and closure costs.

The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations and, from time-to-time, the Company may be required to post collateral, including cash or letters of credit which reduce availability under its revolving credit facility, to support these instruments.

As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity.

Certain of these instruments are associated

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

with operating sites with long-lived assets and will remain outstanding until closure.

Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure.

The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

1 unchanged sentence

Accrued liabilities and other consist of the following:

In thousands March 31, 2024 December 31, 2023

In thousands June 30, 2024 December 31, 2023

Accrued salaries and wages $ 23,294 $ 31,722

11 unchanged sentences

(1) See Note 16 -- Commitments and Contingencies for additional details on deferred revenue liabilities.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that total the same such amounts shown in the Condensed Consolidated Statements of Cash Flows in the three months ended March 31, 2024 and 2023:

In thousands March 31, 2024 March 31, 2023

Coeur Mining, Inc.

and Subsidiaries

Notes to Condensed Consolidated Financial Statements

In thousands June 30, 2024 June 30, 2023

Cash and cash equivalents $ 74,136 $ 56,845

2 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements