What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-08-07 compared with 2024-05-01 · 276 added, 172 removed, 327 unchanged (58% of the section changed)

7 unchanged sentences

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.

Second Quarter Highlights

For the quarter, Coeur reported revenue of $222.0 million and cash provided by operating activities of $15.2 million.

We reported GAAP net income of $1.4 million, or $0.00 per diluted share.

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $52.4 million and net loss of $3.4 million, or $0.01 per diluted share.

For the six months ended June 30, 2024, Coeur reported revenue of $435.1 million and cash used in operating activities of $0.6 million.

We reported GAAP net loss of $27.7 million, or $0.07 per diluted share.

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $96.7 million and net loss of $22.4 million or $0.06 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

• Recently expanded Rochester achieves mid-year target run rates – Rochester successfully completed ramp-up activities by achieving throughput rates of over 88,000 tons per day.

Annual throughput levels are expected to be approximately 2.5 times higher than historical levels, or roughly 32 million tons per year, leading to expected strong increases in production and free cash flow and substantially lower unit costs.

Rochester’s second quarter silver and gold production both increased 39% compared to the first quarter

• Higher prices drove strong revenue and adjusted EBITDA 1 increases – The Company’s average realized gold and silver prices increased by approximately 11% and 10% year-over-year, respectively.

Together with a 76% year-over-year increase in gold production at Kensington, second quarter revenue increased 25% and adjusted EBITDA 1 jumped 136% year-over-year.

• Continued positive results from Kensington’s multi-year exploration program – The Company’s June 27, 2024 update highlighted Kensington’s successful multi-year development and exploration program, which is expected to be completed in the first half of 2025 and is targeting a year-end reserves-based mine life of over five years at year-end 2024 and a return to positive free cash flow during the second half of next year

• Closed the acquisition of key concessions near Palmarejo – On July 8, 2024, the purchase of two strategic blocks of mining concessions adjacent to the Palmarejo gold-silver complex was completed.

The purchase from a subsidiary of Fresnillo plc (“Fresnillo”) unlocks significant near-term and longer-term potential to extend Palmarejo’s mine life to the east of the existing operation

• Hedging program concluded - The Company’s gold and silver hedging program that was utilized during the construction and ramp-up of Rochester was completed during the second quarter;

Coeur is fully exposed to commodity prices going forward

• Silvertip summer exploration program now underway - The robust 2024 program includes large step-out drilling on known structures, significant mapping and sampling, and geophysics to rapidly explore a wider portion of the permitted ground.

The program aims to grow near-mine resources through underground drilling, take large step-outs on known structures to assist with rapid resource growth, identify the outer edges of the system, and identify additional, nearby structures with potential to host mineralization similar to Silvertip

• 2024 production guidance ranges maintained;

cost guidance adjusted - The Company is maintaining its full-year production guidance ranges of 310,000 - 355,000 gold ounces and 10.7 - 13.3 million silver ounces.

Full-year CAS 1 guidance at Palmarejo and Wharf have been reduced to reflect strong cost management efforts, while Rochester’s second half CAS 1 guidance ranges have been increased to reflect timing of ounces placed under leach.

Additionally, the Company is increasing its full-year exploration guidance to reflect additional investment at Wharf and Kensington based on recent results, while capital expenditure guidance is being increased to reflect the accelerated timing of certain equipment purchases and final payments related to the Rochester expansion

Selected Financial and Operating Results

Three Months Ended

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

Three Months Ended Six Months Ended

June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Financial Results:

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Consolidated Financial Results

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

Three Months Ended June 30, 2024 compared to Three Months March 31, 2024

We sold 76,932 gold ounces and 2.6 million silver ounces, compared to 81,416 gold ounces and 2.6 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.

Revenue increased by $9.0 million, or 4%, as a result of a 7% and 11% increase in average realized gold and silver prices, respectively, partially offset by a 6% decrease in gold ounces sold, while silver ounces sold remained comparable.

The Company benefited from the higher gold and silver spot prices that were partially offset by higher realized losses from gold and silver hedges in the second quarter of 2024.

The Company’s hedge program was concluded as of June 30, 2024.

The higher grade and the ramp-up of the new three-stage crusher at Rochester, and higher mill throughput and grade at Kensington increased gold ounces sold but that was more than offset by lower mill throughput and grade at Palmarejo.

Silver ounces sold remained comparable with Palmarejo’s lower mill throughput being offset by the successful ramp-up at Rochester.

Gold and silver represented 69% and 31% of second quarter 2024 sales revenue, respectively, compared to 71% and 29% of first quarter 2024 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

In thousands June 30, 2024 March 31, 2024

Gold sales $ 154,085 $ 151,769 $ 2,316 2 %

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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.

Costs applicable to sales decreased $1.3 million, or 1%, primarily due to lower gold ounces sold, favorable foreign exchange rates at Palmarejo, and a lower of cost or net realizable value (“LCM”) adjustment at Rochester in the first quarter of 2024.

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

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

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

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

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

Amortization increased $0.6 million, or 2%, primarily due to higher gold and silver ounces sold at Rochester and higher gold ounces sold at Kensington, partially offset by lower gold and silver ounces sold at Palmarejo and a lower LCM adjustment at Rochester in the first quarter of 2024.

General and administrative expenses decreased $3.2 million, or 22%, primarily due to lower employee incentive and stock-based compensation costs.

Exploration expense increased $2.4 million, or 23%, driven by the commencement of surface drilling at Silvertip and higher resource expansion drilling activity at Wharf.

Pre-development, reclamation, and other expenses decreased $9.6 million, or 53%, stemming from completion of the dismantling and disposal of the legacy crusher at Rochester and the Kensington royalty settlement of $6.8 million in the first quarter of 2024.

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

In thousands June 30, 2024 March 31, 2024

Silvertip ongoing carrying costs 2,055 2,362 (307) (13) %

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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.

During the first quarter of 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.

Interest expense (net of capitalized interest of $0.4 million) increased to $13.2 million from $12.9 million due to higher interest paid under the RCF and finance lease obligations.

Other, net increased to a gain of $5.1 million compared to $2.8 million as a result of foreign exchange gains primarily in Mexico and the receipt of the $1.2 million distribution from the Republic Metal Corporation bankruptcy proceedings (the “RMC Bankruptcy Distribution”).

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.

Income and mining tax expense of approximately $7.2 million resulted in an effective tax rate of 83.4% for three months ended June 30, 2024.

This compares to income tax expense of $16.0 million for an effective tax rate of (122.4)% for three months ended March 31, 2024.

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;

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) mining taxes;

(iv) percentage depletion;

(v) foreign exchange rates;

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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,

Three Months Ended June 30, Three Months Ended March 31,

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

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

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.

Net Income (Loss)

Net income was $1.4 million, or $0.00 per diluted share, compared to a net loss of $29.1 million, or $0.08 per diluted share.

The decrease in net loss was driven by a 7% and 11% increase in average realized gold and silver prices, respectively, lower employee incentive and stock-based compensation costs, lower income and mining taxes, a lower LCM adjustment at Rochester and the Kensington royalty settlement of $6.8 million in the first quarter of 2024.

This was partially offset by a 6% decrease in gold ounces sold and higher interest and exploration expense.

Adjusted net loss was $3.4 million, or $0.01 per diluted share, compared to $19.0 million, or $0.05 per diluted share (see “Non-GAAP Financial Performance Measures”).

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

Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023

We sold 158,348 gold ounces and 5.2 million silver ounces, compared to 137,956 gold ounces and 4.9 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.

Revenue increased by $70.6 million, or 19%, as a result of a 15% and 5% increase in gold and silver ounces sold, respectively, and a 7% and 6% increase in average realized gold and silver prices, respectively.

The Company benefited from the higher gold and silver spot prices that were partially offset by realized losses from gold and silver hedges in the second quarter of 2024 compared to realized gains in the prior year.

The Company’s hedge program was concluded as of June 30, 2024.

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 and grades at Kensington and higher tons placed and timing of recoveries at Wharf.

Additionally, Rochester produced higher silver ounces while gold production remained comparable following the successful commissioning and ramp-up of the new three stage crusher at Rochester in 2024.

Gold and silver represented 70% and 30% of 2024 sales revenue, respectively, compared to 68% and 32% of 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

Six Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2024 June 30, 2023

Gold sales $ 305,854 $ 248,456 $ 57,398 23 %

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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.

Costs applicable to sales decreased $2.0 million, or 1%, primarily due to the favorable impact of the estimated recoverable ounces on the legacy leach pad and lower LCM adjustments at Rochester, partially offset by higher gold and silver ounces sold.

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

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

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

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

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

Amortization increased $12.9 million, or 31%, 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 lower LCM adjustments at Rochester.

General and administrative expenses increased $3.8 million, or 17%, primarily due to higher employee incentive and stock-based compensation costs, and higher outside service and legal costs.

Exploration expense increased $15.8 million, or 209%, as a result of planned drilling activity at Palmarejo, Kensington, Wharf and Silvertip.

Pre-development, reclamation, and other expenses increased $5.6 million, or 26%, stemming from the Kensington royalty settlement of $6.8 million and higher 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

Six Months Ended June 30, Increase (Decrease) Percentage Change

In thousands 2024 2023

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Other Income and Expenses

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.

During the six months ended June 30, 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 $3.0 million incurred during the six months ended June 30, 2023.

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

Interest expense (net of capitalized interest of $0.4 million) increased to $26.1 million from $14.3 million due to higher interest paid under the RCF attributable to higher average debt levels, and lower capitalized interest, partially offset by lower interest paid under the 2029 Senior Notes.

Other, net increased to a gain of $7.9 million compared to a loss of $10.6 million as a result of the recognition of the FT Premium Liability income of $3.9 million following the renouncement of Silvertip exploration expenditures and the $12.3 million loss recognized from the sale of the La Preciosa Deferred Consideration in 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.

During the first half of 2024, income and mining tax expense of approximately $23.2 million resulted in an effective tax rate of (518.4)% for 2024.

This compares to income tax expense of $20.6 million for an effective tax rate of (56.5)% 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.

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) foreign exchange rates;

(iv) mining taxes;

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

(vi) percentage depletion;

and (vii) the impact of uncertain tax positions.

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

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

Three Months Ended March 31,

Six Months Ended June 30,

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

10 unchanged sentences

Net loss was $27.7 million, or $0.07 per diluted share, compared to $57.0 million, or $0.18 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.

The decrease in net loss was driven by a 15% and 5% increase in gold and silver ounces sold, respectively, a 7% and 6% increase in average realized gold and silver prices, respectively, lower ongoing costs at Silvertip, the recognition of the FT Premium Liability income of $3.9 million, lower LCM adjustments at Rochester, and the $12.3 million loss recognized from the sale of the La Preciosa Deferred Consideration in 2023.

This was partially offset by the Kensington royalty settlement of $6.8 million, higher exploration, general and administrative and interest expense, and favorable changes in the fair value of the Company’s equity investments in the first six months of 2023.

Adjusted net loss was $22.4 million, or $0.06 per diluted share, compared to $53.2 million, or $0.17 per diluted share (see “Non-GAAP Financial Performance Measures”).

2024 Guidance

The Company has reaffirmed its 2024 production guidance.

Due to strong operational performance and cost control measures, Coeur has lowered cost guidance at Palmarejo and Wharf.

With the ramp-up of the new Merrill-Crowe facility and three-stage crusher corridor at Rochester completed, the Company has provided updated cost guidance for Rochester for the second half of 2024, which is reflected below.

In addition, Coeur was able to conclude final negotiations with the key construction contractor during the second quarter, leading to an increase in expected 2024 development capital expenditures as certain costs that were originally planned for 2025 were paid during the second quarter.

The Company has now paid $725 million of the total $730 million capital cost of the expansion.

Coeur has increased its planned exploration program at Wharf as the Company has identified opportunities to extend mine life at the Juno and North Foley deposits as well as at Kensington.

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

2024 Production Guidance

Palmarejo 95,000 - 103,000 5,900 - 6,700

Rochester 37,000 - 50,000 4,800 - 6,600

Kensington 92,000 - 106,000 —

Wharf 86,000 - 96,000 —

Total 310,000 - 355,000 10,700 - 13,300

2024 Costs Applicable to Sales Guidance

Previous Updated

Gold Silver Gold Silver

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

Palmarejo (co-product) $1,075 - $1,275 $16.50 - $17.50 $950 - $1,150 $15.50 - $16.50

Second Half 2024 Rochester (co-product) $1,200 - $1,400 $14.00 - $16.00 $1,500 - $1,700 $18.00 - $20.00

Kensington $1,525 - $1,725 — $1,525 - $1,725 —

Wharf (by-product) $1,100 - $1,200 — $950 - $1,050 —

2024 Capital, Exploration and G&A Guidance

Previous Updated

Capital Expenditures, Sustaining $116 - $158 $124 - $158

Capital Expenditures, Development $19 - $26 $36 - $42

Exploration, Expensed $40 - $50 $40 - $50

Exploration, Capitalized $7 - $13 $15 - $20

General & Administrative Expenses $36 - $40 $36 - $40

The Company’s previous guidance figures assume estimated prices of $2,000/oz gold and $23.75/oz silver as well as CAD of 1.25 and MXN of 17.00.

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

The Company’s updated guidance figures assume estimated prices of $2,300/oz gold and $27.00/oz silver as well as CAD of 1.25 and MXN of 17.00.

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

Results of Operations

Three Months Ended

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

Three Months Ended Six Months Ended

June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Tons milled 429,561 500,747 930,308 1,006,228

12 unchanged sentences

(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.

Three Months Ended June 30, 2024 compared to Three Months Ended March 31, 2024

Gold and silver production decreased 23% and 12%, respectively, as a result of 14% decrease in mill throughput due to mine sequencing, lower recovery rates and a 6% decrease in gold grade, partially offset by a 3% increase in silver grade.

Metal sales were $83.2 million, or 37% of Coeur’s metal sales, compared with $96.4 million, or 45% 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.

Revenue decreased by $13.1 million, or 14%, of which $22.7 million was due to lower volume of gold and silver production, partially offset by an increase of $9.6 million due to higher gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 11% and 15%, respectively, due to lower production, partially offset by lower operating costs, favorable foreign exchange rates and the mix of gold and silver sales which impacted co-product cost allocation.

Amortization decreased by $1.7 million to $10.8 million due to lower gold and silver ounces sold.

Capital expenditures decreased to $5.9 million from $6.8 million due to lower equipment expenditures.

Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023

Gold and silver production increased 21% and 1%, respectively, as a result of a 26% and 9% increase in gold and silver grades, respectively, and higher gold recoveries, partially offset by 8% decrease in mill throughput.

Metal sales were $179.6 million, or 41% of Coeur’s metal sales, compared with $155.0 million, or also 43% of Coeur’s metal sales.

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

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

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

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

Three Months Ended

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

Revenue increased by $24.6 million, or 16%, of which $15.6 million was due to a higher volume of gold production and $9.0 million was due to higher gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 2% and 3%, 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 $6.7 million to $23.4 million due to a 20% increase in gold ounces sold.

Capital expenditures decreased to $12.6 million from $22.1 million due to lower open pit backfill project and equipment expenditures.

Three Months Ended Six Months Ended

June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Tons placed (1)

10 unchanged sentences

$ 21.95 $ 20.93 $ 21.83 $ 25.42

(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.

(1) During the three months ended June 30, 2024, 4.3 million and 0.8 million tons of crushed ore were placed on the new leach pad and legacy leach pad, respectively.

During the three months ended March 31, 2024, 1.9 million and 1.2 million tons of crushed ore were placed on the new leach pad and legacy leach pad, respectively.

During the six months ended June 30, 2024, 6.2 million and 2.0 million tons of crushed ore were placed on the new leach pad and legacy leach pad, respectively.

During the six months ended June 30, 2023, 3.5 million and 1.6 million tons of crushed ore were placed on the new leach pad and legacy leach pad, 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.

Three Months Ended June 30, 2024 compared to Three Months Ended March 31, 2024

Gold and silver production increased 39% primarily driven by the commissioning and ramp-up of the new three-stage crusher.

Metal sales were $42.8 million, or 19% of Coeur’s metal sales, compared with $29.8 million, or 14% 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.

Revenue increased by $12.9 million, or 43%, of which $10.6 million was due to a higher volume of gold and silver production, and $2.3 million was due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 2% and increased 5%, respectively, due to the mix of gold and silver sales which impacted co-product cost allocation and higher consumable and outside service costs.

Amortization increased by $2.0 million to $8.6 million due to higher gold and silver ounces sold.

Capital expenditures increased to $27.5 million from $21.2 million due to ramp up activities and timing of payments 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 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 by the end the second quarter by achieving throughput rates of over 88,000 tons per day.

Ore tons placed increased 63% quarter-over-quarter to 5.1 million tons, including approximately 4.3 million tons through the new crushing circuit and placed on the stage 6 leach pad and roughly 0.8 million tons of run-of-mine material placed on the legacy stage 4 leach pad.

Crushing and placement rates were lighter than initially planned for the full quarter primarily driven by down days to address ramp up related adjustments that were identified while mining rates exceeded plan.

Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023

Gold and silver production decreased 5% and increased 16%, respectively, as a result of the fewer ounces produced from the legacy leach pads in the first quarter of 2024 as Rochester transitioned to the new leach pad in 2023.

Metal sales were $72.6 million, or 17% of Coeur’s metal sales, compared with $63.0 million, or 17% 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.

Revenue increased by $9.6 million, or 15%, of which $5.3 million was due to a higher volume of silver production, and $4.3 million resulting from higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 15% and 14%, respectively, due to the favorable impact of an increase in estimated recoverable ounces on the legacy leach pad in the first quarter of 2024, an increase in tons placed and a LCM adjustments of $3.1 million compared to $14.7 million in the prior year, which benefited from higher gold and silver prices, and the increase in recoverable ounces on the legacy leach pads.

Amortization increased by $6.3 million to $15.2 million due to higher silver ounces sold and the commencement of production from the new leach pad in mid-September 2023 and the three-stage crushing circuit in March 2024, partially offset by lower gold ounces sold.

Capital expenditures decreased to $48.8 million from $113.4 million due to reduced spending related to the Rochester expansion project.

Three Months Ended

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

Three Months Ended Six Months Ended

June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Tons milled 182,043 167,439 349,482 306,244

6 unchanged sentences

(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.

Three Months Ended June 30, 2024 compared to Three Months Ended March 31, 2024

Gold production increased 8% as a result of 9% increase in mill throughput and higher recovery rates.

Metal sales were $51.1 million, or 23% of Coeur’s metal sales, compared to $43.5 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.

Revenue increased by $7.5 million, or 17%, of which $5.1 million resulting from a higher volume of gold production, and $2.4 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 7% due to higher production.

Amortization increased by $0.8 million to $6.4 million primarily due to the increase in gold ounces sold.

Capital expenditures increased to $16.5 million from $13.3 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 and tailings dam expansion expenditures.

Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023

Gold production increased 33% as a result of 17% higher grade and 14% higher mill throughput.

Metal sales were $94.6 million, or 22% of Coeur’s metal sales, compared to $64.8 million, or 18% 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.

Revenue increased by $29.8 million, or 46%, of which $22.3 million resulting from a higher volume of gold production, and $7.5 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 20% due to higher production.

Amortization increased by $1.4 million to $12.0 million primarily due to the increase in gold ounces sold, partially offset the favorable impact of a longer assumed mine life.

Capital expenditures increased to $29.7 million from $22.4 million reflecting continued investment associated with the multi-year underground development and exploration program designed to extend and enhance the mine life, which began in 2022 and is expected to be completed in 2025.

Three Months Ended

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

Three Months Ended Six Months Ended

June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Tons placed 1,162,437 1,251,955 2,414,392 2,198,640

7 unchanged sentences

(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.

Three Months Ended June 30, 2024 compared to Three Months Ended March 31, 2024

Gold production increased 8% driven by higher grade and timing of recoveries.

Metal sales were $45.0 million, or 20% of Coeur’s metal sales, compared to $43.3 million, or 20% 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.

Revenue increased by $1.6 million, or 4%, of which $0.6 million was due to a higher gold production, and $1.0 million due to higher average realized gold prices.

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

Amortization decreased to $1.1 million due to favorable impact of higher grade.

Capital expenditures were $1.2 million.

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.

Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023

Gold production increased 3% driven by higher tons placed and timing of recoveries, partially offset by lower grade.

Metal sales were $88.3 million, or 20% of Coeur’s metal sales, compared to $81.7 million, or 22% of Coeur’s metal sales.

Revenue increased by $6.6 million, or 8%, of which $2.2 million was due to a higher gold production, and $4.4 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.

Costs applicable to sales per gold ounce decreased 17% due to higher tons placed.

Amortization decreased to $2.5 million due to higher tons placed and the favorable impact of a longer assumed mine life.

Capital expenditures were $1.5 million.

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.

Six Months Ended June 30, 2024 compared to Six Months Ended June 30, 2023

Exploration expense totaled $11.7 million in the first half of 2024 as the Company continues to focus on increasing the mineral resources at Silvertip, which were supported by 271 meters of underground mine development.

Ongoing carrying costs at Silvertip totaled $4.4 million in the first half of 2024 and $10.8 million in 2023.

Capital expenditures in the first half of 2024 totaled $0.9 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.

At June 30, 2024, the Company had $75.9 million of cash, cash equivalents and restricted cash and $95.5 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).

Cash and cash equivalents increased $12.5 million in the six months ended June 30, 2024 due to a 15% and 5% increase in gold and silver ounces sold, respectively, a 7% and 6% increase in average realized gold and silver prices, respectively, the net proceeds of $23.7 million from the sale of 7.7 million shares of common stock in the Private Placement Offering (as defined below), and net draws of $100.0 million under the RCF.

This was partially offset by $93.5 million of capital expenditures primarily related to the completion of the Rochester expansion project.

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

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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.

The Company had no outstanding forward contracts at June 30, 2024 following the final settlement in June 2024.

The Company has no current plans to implement new hedges but may in the future add new hedges as circumstances warrant.

During the six months ended June 30, 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.

We expect to use a combination of cash provided by operating activities 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

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.

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

on acceptable terms or at all.

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

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 operating activities for the three months ended June 30, 2024 was $15.2 million, compared to net cash used in operating activities of $15.9 million for the three months ended March 31, 2024.

Net cash used in operating activities for the six months ended June 30, 2024 was $0.6 million, compared to net cash provided by operating activities of $4.4 million for six months ended June 30, 2023.

Adjusted EBITDA for the three months ended June 30, 2024 was $52.4 million, compared to $44.3 million for three months ended March 31, 2024.

Adjusted EBITDA for the six months ended June 30, 2024 was $96.7 million, compared to $47.4 million for the six months ended June 30, 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

Three Months Ended Six Months Ended

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

Cash flow before changes in operating assets and liabilities $ 27,482 $ (30,607) $ (3,125) $ (697)

5 unchanged sentences

Cash provided by (used in) operating activities $ 15,249 $ (15,871) $ (622) $ 4,394

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.

Net cash provided by operating activities increased $31.1 million for the three months ended June 30, 2024 compared to the three months ended March 31, 2024, primarily due to a 7% and 11% increase in average realized gold and silver prices, respectively, timing of VAT collections in Mexico, lower prepaid insurance, and timing of interest and income and mining tax payments.

Revenue for the three months ended June 30, 2024 compared to the three months ended March 31, 2024 increased by $9.0 million, of which $18.1 million was due to higher average realized gold and silver prices, partially offset by $9.2 million resulting from lower volume of gold and silver sales.

Net cash used in operating activities increased $5.0 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, primarily due to the timing of VAT collections in Mexico, higher exploration, general and administrative, and interest expense, partially offset by a 15% and 5% increase in gold and silver ounces sold, respectively, and a 7% and 6% increase in average realized gold and silver prices, respectively.

Revenue for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 increased by $70.6 million, of which $46.0 million was due to higher volume of gold sales, and $24.5 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.

Net cash used in investing activities in the three months ended June 30, 2024 was $51.6 million compared to $42.1 million in the three months ended March 31, 2024.

Cash used in investing activities increased due to the timing of payments related to the Rochester expansion project.

The Company incurred capital expenditures of $51.4 million in the three months ended June 30, 2024 compared with $42.1 million in the three months ended March 31, 2024 primarily related to ramp-up activities and timing of payments related to the Rochester expansion project at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the six months ended June 30, 2024 was $93.7 million compared to $105.0 million in the six months ended June 30, 2023.

Cash used in investing activities decreased due to net proceeds of $39.8 million received from the sale of its remaining Victoria Gold Common Shares, net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, 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 $93.5 million in the six months ended June 30, 2024 compared with $159.6 million in the six months ended June 30, 2023 primarily related to expansion construction and ramp-up activities at Rochester and underground development and exploration 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

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.

Net cash provided by financing activities in the three months ended June 30, 2024 was $43.3 million compared to $63.8 million in the three months ended March 31, 2024.

During the three months ended June 30, 2024, the Company drew $50.0 million, net, from the RCF.

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.

Net cash provided by financing activities in the six months ended June 30, 2024 was $107.1 million compared to $95.3 million in the six months ended June 30, 2023.

During the six months ended June 30, 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 $100.0 million, net, from the RCF.

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

Critical Accounting Policies and Accounting Developments

20 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.

Other Liquidity Matters

18 unchanged sentences

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

Three Months Ended Six Months Ended

In thousands except per share amounts June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Net income (loss) $ 1,426 $ (29,117) $ (27,691) $ (56,998)

2 unchanged sentences

(Gain) loss on sale of assets and securities 640 3,536 4,176 12,631

RMC bankruptcy distribution (1,199) — (1,199) (1,516)

(Gain) loss on debt extinguishment 21 (438) (417) (2,961)

5 unchanged sentences

Adjusted net income (loss) per share, Diluted $ (0.01) $ (0.05) $ (0.06) $ (0.17)

(1) For the three months ended June 30, 2024, tax effect of adjustments of $1.4 million 333% is primarily related to the RMC Bankruptcy Distribution.

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.

For the six months ended June 30, 2024, tax effect of adjustments of $0.4 million (-5%) is primarily related to the RMC Bankruptcy Distribution, Kensington royalty settlement and LCM adjustment recorded at Rochester.

For the six months ended June 30, 2023, tax effect of adjustments of $1.2 million (-41%) is primarily related to the fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

EBITDA and Adjusted EBITDA

5 unchanged sentences

Adjusted EBITDA 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

Three Months Ended Six Months Ended

In thousands except per share amounts June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Net income (loss) $ 1,426 $ (29,117) $ (27,691) $ (56,998)

8 unchanged sentences

(Gain) loss on sale of assets and securities 640 3,536 4,176 12,631

RMC bankruptcy distribution (1,199) — (1,199) (1,516)

(Gain) loss on debt extinguishment 21 (438) (417) (2,961)

7 unchanged sentences

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

Consolidated Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Cash flow from operations $ 15,249 $ (15,871) $ (622) $ 4,394

7 unchanged sentences

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

Three Months Ended

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

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2024 March 31, 2024 June 30, 2024 June 30, 2023

Cash provided by (used in) operating activities $ 15,249 $ (15,871) $ (622) $ 4,394

10 unchanged sentences

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 June 30, 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) $ 59,070 $ 45,225 $ 47,166 $ 20,181 $ 790 $ 172,432

Amortization (10,843) (8,570) (6,445) (1,067) (790) (27,715)

Costs applicable to sales $ 48,227 $ 36,655 $ 40,721 $ 19,114 $ — $ 144,717

Gold ounces 24,313 8,150 23,539 20,930 — 76,932

Silver ounces 1,542,395 985,269 — 65,063 — 2,592,727

Costs applicable to sales

Gold ($/oz) $ 1,012 $ 1,844 $ 1,732 $ 829

Silver ($/oz) $ 15.32 $ 21.95 $ —

Three Months Ended March 31, 2024

9 unchanged sentences

Silver ($/oz) $ 13.30 $ 20.93 $ —

Three Months Ended December 31, 2023

Six Months Ended June 30, 2024

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

8 unchanged sentences

Silver ($/oz) $ 14.12 $ 21.83 $ —

Three Months Ended March 31, 2023

Six Months Ended June 30, 2023

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

8 unchanged sentences

Silver ($/oz) $ 14.57 $ 25.42 $ —

Reconciliation of Costs Applicable to Sales for Updated 2024 Guidance

In thousands (except metal sales and per ounce amounts) Palmarejo Rochester (1)

Kensington Wharf

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

GAAP) $ 261,913 $ 147,456 $ 195,337 $ 102,091

Amortization (46,953) (42,237) (28,757) (5,694)

Costs applicable to sales $ 214,960 $ 105,219 $ 166,580 $ 96,397

By-product credit — — 16 (5,328)

Adjusted costs applicable to sales $ 214,960 $ 105,219 $ 166,596 $ 91,069

Gold ounces 104,260 28,170 100,500 91,040

Silver ounces 6,652,590 3,197,910 205,600

Revenue Split

Gold 51% 43% 100% 100%

Silver 49% 57%

Adjusted costs applicable to sales

Gold ($/oz) $950 - $1,150 $1,500 - $1,700 $1,525 - $1,725 $950 - $1,050

Silver ($/oz) $15.50 - $16.50 $18.00 - $20.00

(1) Cost guidance for Rochester reflects the second half of 2024.

Reconciliation of Costs Applicable to Sales for Previous 2024 Guidance

In thousands (except metal sales and per ounce amounts) Palmarejo Rochester (1)

Kensington Wharf

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

GAAP) $ 258,870 $ 129,322 $ 199,980 $ 108,330

Amortization (37,130) (36,990) (33,530) (6,330)

Costs applicable to sales $ 221,740 $ 92,332 $ 166,450 $ 102,000

By-product credit — — — (2,550)

Adjusted costs applicable to sales $ 221,740 $ 92,332 $ 166,450 $ 99,450

Gold ounces 100,350 28,130 103,790 90,000

Silver ounces 6,516,830 3,927,890 105,920

Revenue Split

Gold 51% 38% 100% 100%

Silver 49% 62%

Adjusted costs applicable to sales

Gold ($/oz) $1,075 - $1,275 $1,200 - $1,400 $1,525 - $1,725 $1,100 - $1,200

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

(1) Cost guidance for Rochester reflects the second half of 2024.

Cautionary Statement Concerning Forward-Looking Statements

6 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 2. Management’s Discussion and Analysis