Coeur Mining, Inc. 10-Q

Item 1. Financial Statements and Supplementary Data COEUR MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2024 December 31, 2023 ASSETS Notes In thousands, except share data CURRENT ASSETS Cash and cash equivalents $ 76,916 $ 61,633 Receivables 4 30,165 31,035 Inventory 5 74,727 76,661 Ore on leach pads 5 148,331 79,400 Prepaid expenses and other 15,833 18,526 345,972 267,255 NON-CURRENT ASSETS Property, plant and equipment and mining properties, net 6 1,759,454 1,688,288 Ore on leach pads 5 34,598 25,987 Restricted assets 9,339 9,115 Receivables 4, 11 20,161 23,140 Other 58,276 67,063 TOTAL ASSETS $ 2,227,800 $ 2,080,848 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 126,387 $ 115,110 Accrued liabilities and other 17 153,285 140,913 Debt 7 27,458 22,636 Reclamation 8 10,954 10,954 318,084 289,613 NON-CURRENT LIABILITIES Debt 7 577,725 522,674 Reclamation 8 211,136 203,059 Deferred tax liabilities 6,755 12,360 Other long-term liabilities 30,950 29,239 826,566 767,332 COMMITMENTS AND CONTINGENCIES 16 STOCKHOLDERS’ EQUITY Common stock, par value $ 0.01 per share; authorized 600,000,000 shares, 399,287,506 issued and outstanding at September 30, 2024 and 386,282,957 at December 31, 2023 3,993 3,863 Additional paid-in capital 4,179,270 4,139,870 Accumulated other comprehensive income (loss) — 1,331 Accumulated deficit ( 3,100,113 ) ( 3,121,161 ) 1,083,150 1,023,903 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,227,800 $ 2,080,848 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 COEUR MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Notes In thousands, except share data Revenue 3 $ 313,476 $ 194,583 $ 748,562 $ 559,116 COSTS AND EXPENSES Costs applicable to sales (1) 3 156,742 147,903 447,456 440,596 Amortization 33,216 22,884 88,441 65,187 General and administrative 10,966 9,512 36,611 31,384 Exploration 19,567 12,437 42,932 20,007 Pre-development, reclamation, and other 13 8,583 8,699 35,401 29,949 Total costs and expenses 229,074 201,435 650,841 587,123 OTHER INCOME (EXPENSE), NET Gain (loss) on debt extinguishment — 774 417 3,735 Fair value adjustments, net 11 — ( 2,010 ) — 4,629 Interest expense, net of capitalized interest 7 ( 13,280 ) ( 7,402 ) ( 39,389 ) ( 21,703 ) Other, net 13 3,434 478 11,329 ( 10,090 ) Total other income (expense), net ( 9,846 ) ( 8,160 ) ( 27,643 ) ( 23,429 ) Income (loss) before income and mining taxes 74,556 ( 15,012 ) 70,078 ( 51,436 ) Income and mining tax (expense) benefit 9 ( 25,817 ) ( 6,097 ) ( 49,030 ) ( 26,671 ) NET INCOME (LOSS) $ 48,739 $ ( 21,109 ) $ 21,048 $ ( 78,107 ) OTHER COMPREHENSIVE INCOME (LOSS): Change in fair value of derivative contracts designated as cash flow hedges — 7,227 ( 18,507 ) 7,141 Reclassification adjustments for realized (gain) loss on cash flow hedges — ( 4,920 ) 17,176 ( 7,830 ) Other comprehensive income (loss) — 2,307 ( 1,331 ) ( 689 ) COMPREHENSIVE INCOME (LOSS) $ 48,739 $ ( 18,802 ) $ 19,717 $ ( 78,796 ) NET INCOME (LOSS) PER SHARE 14 Basic income (loss) per share: Basic $ 0.12 $ ( 0.06 ) $ 0.05 $ ( 0.24 ) Diluted $ 0.12 $ ( 0.06 ) $ 0.05 $ ( 0.24 ) (1) Excludes amortization. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 COEUR MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Notes In thousands CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 48,739 $ ( 21,109 ) $ 21,048 $ ( 78,107 ) Adjustments: Amortization 33,216 22,884 88,441 65,187 Accretion 4,233 4,153 12,463 12,219 Deferred taxes ( 816 ) ( 3,872 ) ( 5,604 ) 1,536 Gain on debt extinguishment 7 — ( 774 ) ( 417 ) ( 3,735 ) Fair value adjustments, net 11 — 2,010 — ( 4,629 ) Stock-based compensation 10 2,809 2,635 9,789 8,462 Loss on the sale or disposition of assets 13 — 19 — 12,650 Write-downs 5 — 7,727 3,235 22,467 Deferred revenue recognition 16 ( 130 ) ( 143 ) ( 55,407 ) ( 25,358 ) Other ( 1,119 ) 657 10,259 2,798 Changes in operating assets and liabilities: Receivables 1,616 ( 478 ) ( 520 ) 1,659 Prepaid expenses and other current assets ( 352 ) ( 3,000 ) 3,185 764 Inventory and ore on leach pads ( 14,320 ) ( 18,620 ) ( 53,788 ) ( 54,993 ) Accounts payable and accrued liabilities 37,187 5,528 77,757 41,091 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 111,063 ( 2,383 ) 110,441 2,011 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ( 41,980 ) ( 112,273 ) ( 135,468 ) ( 271,902 ) Acquisitions, net ( 10,000 ) — ( 10,000 ) — Proceeds from the sale of assets 1 152 25 8,380 Sale of investments — — — 41,558 Proceeds from notes receivable 4 — — — 5,000 Other ( 70 ) ( 63 ) ( 285 ) ( 171 ) CASH USED IN INVESTING ACTIVITIES ( 52,049 ) ( 112,184 ) ( 145,728 ) ( 217,135 ) CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of common stock 14 — 57,522 22,823 168,964 Issuance of notes and bank borrowings, net of issuance costs 7 77,500 163,000 327,500 388,000 Payments on debt, finance leases, and associated costs 7 ( 133,250 ) ( 109,268 ) ( 297,128 ) ( 348,092 ) Other ( 208 ) ( 23 ) ( 2,018 ) ( 2,345 ) CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ( 55,958 ) 111,231 51,177 206,527 Effect of exchange rate changes on cash and cash equivalents ( 263 ) ( 278 ) ( 584 ) 374 INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 2,793 ( 3,614 ) 15,306 ( 8,223 ) Cash, cash equivalents and restricted cash at beginning of period 75,891 58,560 63,378 63,169 Cash, cash equivalents and restricted cash at end of period $ 78,684 $ 54,946 $ 78,684 $ 54,946 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 6 COEUR MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) In thousands Common Stock Shares Common Stock Par Value Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Balances at December 31, 2023 386,283 $ 3,863 $ 4,139,870 $ ( 3,121,161 ) $ 1,331 $ 1,023,903 Net income (loss) — — — ( 29,117 ) — ( 29,117 ) Other comprehensive income (loss) — — — — ( 7,478 ) ( 7,478 ) Debt-for-Equity Exchange 1,772 18 5,350 — — 5,368 Issuance of flow-through shares 7,705 77 22,908 — — 22,985 Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 2,823 28 2,440 — — 2,468 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 Net income (loss) — — — 48,739 — 48,739 Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 47 1 2,602 — — 2,603 Balances at September 30, 2024 399,288 $ 3,993 $ 4,179,270 $ ( 3,100,113 ) $ — $ 1,083,150 In thousands Common Stock Shares Common Stock Par Value Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Balances at December 31, 2022 295,698 $ 2,957 $ 3,891,265 $ ( 3,017,549 ) $ 12,343 $ 889,016 Net income (loss) — — — ( 24,586 ) — ( 24,586 ) Other comprehensive income (loss) — — — — ( 17,062 ) ( 17,062 ) Common stock issued under "at the market" stock offering 32,862 329 98,100 — — 98,429 Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 2,482 24 715 — — 739 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 Net income (loss) — — — ( 21,109 ) — ( 21,109 ) Other comprehensive income (loss) — — — — 2,307 2,307 Common stock issued under "at the market” stock offering 21,700 217 48,920 — — 49,137 Common stock issued for the extinguishment of Senior Notes 7,619 76 18,228 — — 18,304 Common stock issued under Private Placement Offering 3,000 30 8,332 — — 8,362 Common stock issued/canceled under long-term incentive plans, annual incentive plans, director fees and options, net 207 2 2,613 — — 2,615 Balances at September 30, 2023 382,693 $ 3,827 $ 4,128,553 $ ( 3,095,656 ) $ 11,654 $ 1,048,378 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 7 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements NOTE 1 - BASIS OF PRESENTATION The interim condensed consolidated financial statements of Coeur Mining, Inc. and its subsidiaries (collectively, “Coeur” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for the fair presentation of these interim statements have been included. The results reported in these interim statements may not be indicative of the results which will be reported for the year ending December 31, 2024. The condensed consolidated December 31, 2023 balance sheet data was derived from audited consolidated financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 10-K”). NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies Please see Note 2 — Summary of Significant Accounting Policies contained in the 2023 10-K. Use of Estimates The Company's Condensed Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of the Company’s Condensed Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, estimates of recoverable silver and gold on stockpiles and leach pad inventories, estimates of fair value for certain reporting units and asset impairments, valuation allowances for deferred tax assets, and the fair value and accounting treatment of financial instruments, equity securities, asset acquisitions, the allocation of fair value to assets and liabilities assumed in connection with business combinations, and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from the amounts estimated in these financial statements. Ore on Leach Pads The heap leach process extracts silver and gold by placing ore on an impermeable pad and applying a diluted cyanide solution that dissolves a portion of the contained silver and gold, which are then recovered in metallurgical processes. The Company uses several integrated steps to scientifically measure the metal content of ore placed on the leach pads. As the ore body is drilled in preparation for the blasting process, samples are taken of the drill residue which are assayed to determine estimated quantities of contained metal. The Company then processes the ore through crushing facilities where the output is again weighed and sampled for assaying. A metallurgical reconciliation with the data collected from the mining operation is completed with appropriate adjustments made to previous estimates. The crushed ore is then transported to the leach pad for application of the leaching solution. As the leach solution is collected from the leach pads, it is continuously sampled for assaying. The quantity of leach solution is measured by flow meters throughout the leaching and precipitation process. After precipitation, the product is converted to doré at the Rochester mine and a form of gold electrolytic cathodic sludge at the Wharf mine, representing the final product produced by each mine. The inventory is stated at lower of cost or net realizable value, with cost being determined using a weighted average cost method. The historical cost of metal expected to be extracted within 12 months is classified as current and the historical cost of metals contained within the broken ore expected to be extracted beyond 12 months is classified as non-current. Ore on leach pads is valued based on actual production costs incurred to produce and place ore on the leach pad, less costs allocated to minerals recovered through the leach process. The estimate of both the ultimate recovery expected over time and the quantity of metal that may be extracted relative to the time the leach process occurs requires the use of estimates, which are inherently inaccurate due to the nature of the leaching process. The quantities of metal contained in the ore are based upon actual weights and assay analysis. The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than 20 years of leach pad operations at the Rochester mine and 30 years of leach pad operations at the Wharf mine. The assumptions used by the Company to measure metal content during each stage of the inventory conversion process includes estimated recovery rates based on laboratory testing and assaying. The Company periodically reviews its estimates compared to 8 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements actual experience and revises its estimates when appropriate. The ultimate recovery will not be known until leaching operations cease. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. In the first quarter of 2024, the Company completed a review of the estimated recoverable ounces of gold and silver on its leach pads and determined that as a result of longer expected leach time and favorable recoveries relative to previous estimates, that the estimated recoverable gold and silver on the Rochester legacy (Stages 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 generally have not been significant. The updated recoverable ounce estimate is considered a change in estimate and was accounted for prospectively. As of September 30, 2024, the Company’s estimated recoverable ounces of gold and silver on the leach pads were 48,175 and 6.7 million, respectively. Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” , which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We are currently evaluating the potential impact of adopting this new guidance on reportable segment disclosures but is not expected to impact our Condensed Consolidated Financial Statements or disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our Condensed Consolidated Financial Statements and related disclosures. 9 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements NOTE 3 – SEGMENT REPORTING The Company’s operating segments include the Palmarejo, Rochester, Kensington and Wharf mines and Silvertip exploration project. Except for the Silvertip exploration project, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip exploration project is engaged in the discovery of silver, zinc, lead, and other related metals. “ Other ” includes certain mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts. Financial information relating to the Company’s segments is as follows (in thousands): Three Months Ended September 30, 2024 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 55,085 $ 22,889 $ 62,164 $ 83,634 $ — $ — $ 223,772 Silver sales 55,292 33,092 ( 12 ) 1,332 — — 89,704 Metal sales 110,377 55,981 62,152 84,966 — — 313,476 Costs and Expenses Costs applicable to sales (1) 47,455 39,409 38,099 31,779 — — 156,742 Amortization 11,984 10,231 7,612 2,419 794 176 33,216 Exploration 4,303 1,044 1,988 2,330 9,405 497 19,567 Other operating expenses 2,650 2,459 636 1,165 2,037 10,602 19,549 Other income (expense) Gain on debt extinguishment — — — — — — — Fair value adjustments, net — — — — — — — Interest expense, net ( 30 ) ( 1,113 ) ( 245 ) ( 128 ) ( 1 ) ( 11,763 ) ( 13,280 ) Other, net (3) 1,256 ( 140 ) ( 80 ) ( 37 ) 52 2,383 3,434 Income and mining tax (expense) benefit ( 18,919 ) ( 283 ) — ( 4,164 ) — ( 2,451 ) ( 25,817 ) Net Income (loss) $ 26,292 $ 1,302 $ 13,492 $ 42,944 $ ( 12,185 ) $ ( 23,106 ) $ 48,739 Segment assets (2) $ 320,271 $ 1,180,633 $ 208,858 $ 107,526 $ 212,607 $ 53,374 $ 2,083,269 Capital expenditures $ 8,048 $ 10,121 $ 19,996 $ 2,773 $ 1,035 $ 7 $ 41,980 (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. Three Months Ended September 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 38,994 $ 8,719 $ 46,474 $ 45,316 $ — $ — $ 139,503 Silver sales 38,294 14,929 56 1,801 — — 55,080 Metal sales 77,288 23,648 46,530 47,117 — — 194,583 Costs and Expenses Costs applicable to sales (1) 48,059 30,532 38,286 31,026 — — 147,903 Amortization 9,024 4,176 6,894 1,588 919 283 22,884 Exploration 2,160 303 2,856 — 6,703 415 12,437 Other operating expenses 2,611 2,188 900 1,049 3,163 8,301 18,212 Other income (expense) Gain on debt extinguishment — — — — — 774 774 Fair value adjustments, net — — — — — ( 2,010 ) ( 2,010 ) Interest expense, net 241 ( 555 ) ( 583 ) ( 120 ) ( 13 ) ( 6,372 ) ( 7,402 ) Other, net (3) 1,407 ( 48 ) ( 85 ) ( 36 ) ( 120 ) ( 640 ) 478 Income and mining tax (expense) benefit ( 4,539 ) 220 — ( 1,102 ) — ( 676 ) ( 6,097 ) Net Income (loss) $ 12,543 $ ( 13,934 ) $ ( 3,074 ) $ 12,196 $ ( 10,918 ) $ ( 17,923 ) $ ( 21,110 ) Segment assets (2) $ 313,569 $ 1,070,307 $ 169,184 $ 98,307 $ 217,321 $ 66,462 $ 1,935,150 Capital expenditures $ 10,780 $ 84,368 $ 15,831 $ 681 $ 619 $ ( 6 ) $ 112,273 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. 10 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements Nine Months Ended September 30, 2024 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 151,398 $ 52,938 $ 156,753 $ 168,537 $ — $ — $ 529,626 Silver sales 138,603 75,636 ( 28 ) 4,725 — — 218,936 Metal sales 290,001 128,574 156,725 173,262 — — 748,562 Costs and Expenses Costs applicable to sales (1) 149,976 103,063 118,109 76,308 — — 447,456 Amortization 35,429 25,434 19,653 4,879 2,436 610 88,441 Exploration 9,366 2,452 4,824 3,579 21,130 1,581 42,932 Other operating expenses 7,350 11,035 9,391 3,410 7,146 33,680 72,012 Other income (expense) Gain on debt extinguishment — — — — — 417 417 Fair value adjustments, net — — — — — — — Interest expense, net 341 ( 3,508 ) ( 1,215 ) ( 405 ) ( 11 ) ( 34,591 ) ( 39,389 ) Other, net (3) 4,683 ( 256 ) ( 243 ) ( 124 ) 12 7,257 11,329 Income and mining tax (expense) benefit ( 37,913 ) 623 — ( 7,172 ) — ( 4,568 ) ( 49,030 ) Net Income (loss) $ 54,991 $ ( 16,551 ) $ 3,290 $ 77,385 $ ( 30,711 ) $ ( 67,356 ) $ 21,048 Segment assets (2) $ 320,271 $ 1,180,633 $ 208,858 $ 107,526 $ 212,607 $ 53,374 $ 2,083,269 Capital expenditures $ 20,680 $ 58,894 $ 49,731 $ 4,237 $ 1,894 $ 32 $ 135,468 (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. Nine Months Ended September 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 114,897 $ 37,404 $ 111,136 $ 124,522 $ — $ — $ 387,959 Silver sales 117,426 49,245 193 4,293 — — 171,157 Metal sales 232,323 86,649 111,329 128,815 — — 559,116 Costs and Expenses Costs applicable to sales (1) 143,915 99,465 114,817 82,399 — — 440,596 Amortization 25,760 13,043 17,539 4,802 3,161 882 65,187 Exploration 5,087 965 6,179 — 6,572 1,204 20,007 Other operating expenses 6,370 6,613 2,844 3,092 14,670 27,745 61,334 Other income (expense) Gain on debt extinguishment — — — — — 3,735 3,735 Fair value adjustments, net — — — — — 4,629 4,629 Interest expense, net 541 ( 1,017 ) ( 1,438 ) ( 164 ) ( 53 ) ( 19,572 ) ( 21,703 ) Other, net (3) 4,291 ( 188 ) ( 236 ) ( 367 ) ( 239 ) ( 13,351 ) ( 10,090 ) Income and mining tax (expense) benefit ( 20,461 ) 596 — ( 3,822 ) — ( 2,984 ) ( 26,671 ) Net Income (loss) $ 35,562 $ ( 34,046 ) $ ( 31,724 ) $ 34,169 $ ( 24,695 ) $ ( 57,374 ) $ ( 78,108 ) Segment assets (2) $ 313,569 $ 1,070,307 $ 169,184 $ 98,307 $ 217,321 $ 66,462 $ 1,935,150 Capital expenditures $ 32,844 $ 197,788 $ 38,189 $ 952 $ 1,426 $ 703 $ 271,902 (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 September 30, 2024 December 31, 2023 Total assets for reportable segments $ 2,083,269 $ 1,943,037 Cash and cash equivalents 76,916 61,633 Other assets 67,615 76,178 Total consolidated assets $ 2,227,800 $ 2,080,848 11 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements Geographic Information Long-Lived Assets September 30, 2024 December 31, 2023 United States $ 1,260,793 $ 1,201,988 Mexico 269,380 256,906 Canada 229,129 229,242 Other 152 152 Total $ 1,759,454 $ 1,688,288 Revenue Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 United States $ 203,099 $ 117,295 $ 458,561 $ 326,793 Mexico 110,377 77,288 290,001 232,323 Total $ 313,476 $ 194,583 $ 748,562 $ 559,116 NOTE 4 – RECEIVABLES Receivables consist of the following: In thousands September 30, 2024 December 31, 2023 Current receivables: Trade receivables $ 6,993 $ 3,858 VAT receivable 13,766 15,634 Income tax receivable 8,786 10,207 Gold and silver forwards realized gains (2) — 615 Other 620 721 $ 30,165 $ 31,035 Non-current receivables: Other tax receivable (3) $ 6,132 $ 9,111 Deferred cash consideration (1) 834 834 Contingent consideration (1) 13,195 13,195 $ 20,161 $ 23,140 Total receivables $ 50,326 $ 54,175 (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 settled in subsequent months. See Note 12 -- Derivative Financial Instruments & Hedging for additional details on the gold and silver forward hedges. (3) Consists of exploration credit refunds at Silvertip. 12 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements NOTE 5 – INVENTORY AND ORE ON LEACH PADS Inventory consists of the following: In thousands September 30, 2024 December 31, 2023 Inventory: Concentrate $ 1,987 $ 3,606 Precious metals 18,376 20,395 Supplies 54,364 52,660 $ 74,727 $ 76,661 Ore on Leach Pads: Current $ 148,331 $ 79,400 Non-current 34,598 25,987 $ 182,929 $ 105,387 Long-term Stockpile (included in Other ) $ 41,716 $ 46,702 Total Inventory and Ore on Leach Pads $ 299,372 $ 228,750 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 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 September 30, 2024 December 31, 2023 Mine development $ 1,420,316 $ 1,358,189 Mineral interests 833,564 809,912 Land 9,000 8,318 Facilities and equipment (1) 1,479,018 947,435 Construction in progress (2) 170,256 612,865 Total $ 3,912,154 $ 3,736,719 Accumulated depreciation, depletion and amortization (3) ( 2,152,700 ) ( 2,048,431 ) Property, plant and equipment and mining properties, net $ 1,759,454 $ 1,688,288 (1) Includes $ 149.2 million and $ 127.6 million associated with facilities and equipment assets under finance leases at September 30, 2024 and December 31, 2023, respectively. (2) Includes $ 471.7 million of construction costs related to the Rochester expansion project at December 31, 2023. (3) Includes $ 54.1 million and $ 37.6 million of accumulated amortization related to assets under finance leases at September 30, 2024 and December 31, 2023, respectively. On October 3, 2024, the Company entered into a definitive agreement (the “Agreement”) whereby, a wholly-owned subsidiary of Coeur will acquire all of the issued and outstanding shares of SilverCrest Metals Inc. (“SilverCrest”) pursuant to a court-approved plan of arrangement (the “Transaction”). Under the terms of the Agreement, SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest common share (the “Exchange Ratio”). The Exchange Ratio implies consideration of $ 11.34 per SilverCrest common share, based on the closing price of Coeur common shares on the New York Stock Exchange (“NYSE”) on October 3, 2024. This implies a total equity value of approximately $ 1.7 billion based on SilverCrest’s common shares outstanding. Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63 % and 37 % of the outstanding common stock of the combined company, respectively. 13 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements In addition to shareholder and court approvals, the Transaction is subject to applicable regulatory approvals, including Mexican antitrust approval, approval of the listing of the Coeur common shares to be issued under the Transaction on the NYSE, and the satisfaction of certain other closing conditions customary for a transaction of this nature. Subject to the satisfaction of such conditions, the Transaction is expected to close in late Q1 2025. The Agreement includes customary deal protections, including reciprocal fiduciary-out provisions, non-solicitation covenants, and the right to match any superior proposals. Additionally, break fees in the amount of $ 60 million and $ 100 million are payable by SilverCrest and Coeur, respectively, and a reciprocal expense reimbursement fee is payable by one party to the other party in certain circumstances if the Transaction is not completed. On November 20, 2023, Coeur Mexicana signed a purchase agreement with a subsidiary of Fresnillo plc to acquire mining concessions adjacent to the Palmarejo mine. Total consideration includes a cash payment of approximately $ 25 million, with $ 10 million due at closing, an additional $ 10 million payable 12 months after closing (“Deferred Cash Due 2025”), and an additional $ 5 million payable 24 months after closing (“Deferred Cash Due 2026”). 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. 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. This resulted in a $ 23.7 million increase to Mineral interest and the recognition of $ 9.3 million of Accrued liabilities and other and $ 4.4 million of Other long-term liabilities for amounts due after closing. 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. NOTE 7 – DEBT September 30, 2024 December 31, 2023 In thousands Current Non-Current Current Non-Current 2029 Senior Notes, net (1) $ — $ 289,874 $ — $ 295,115 Revolving Credit Facility (2) — 225,000 — 175,000 Finance lease obligations 27,458 62,851 22,636 52,559 $ 27,458 $ 577,725 $ 22,636 $ 522,674 (1) Net of unamortized debt issuance costs of $ 3.2 million and $ 3.9 million at September 30, 2024 and December 31, 2023, respectively. (2) Unamortized debt issuance costs of $ 3.8 million and $ 2.8 million at September 30, 2024 and December 31, 2023, respectively, included in Other Non-Current Assets . 14 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements 2029 Senior Notes In March 2021, the Company completed an offering of $ 375.0 million in aggregate principal amount of senior notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $ 367.5 million (the “2029 Senior Notes”). For more details, please see Note 9 -- Debt contained in the 2023 10-K. 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. The exchange transaction represents a non-cash financing activity in the Condensed Consolidated Statement of Cash Flow. Revolving Credit Facility At September 30, 2024, the Company had $ 225.0 million drawn at a weighted-average interest rate of 7.5 %, $ 29.6 million in outstanding letters of credit and $ 145.4 million available under its $ 400.0 million revolving credit facility (the “RCF”). Future borrowing may be subject to certain financial covenants. For more details, please see Note 9 -- Debt contained in the 2023 10-K. On February 21, 2024, the Company entered into an agreement to extend and enhance its RCF (the “February 2024 Amendment”). The February 2024 Amendment, among other things, (1) extends the term of the RCF by approximately two years so that it now matures in February 2027, (2) increases the RCF by $ 10 million from $ 390 million to $ 400 million, (3) adds Fédération Des Caisses Desjardins Du Québec and National Bank of Canada as lenders on the RCF, (4) permits the Company to obtain one or more increases of the RCF in an aggregate amount of up to $ 100 million in incremental loans and commitments, subject to certain conditions, including obtaining commitments from relevant lenders to provide such increase, (5) allows for unencumbered domestic cash to be included in the calculation of the consolidated net leverage ratio, and (6) allows up to $ 15 million of non-capitalized underground mine development costs related to Silvertip to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF. Finance Lease Obligations From time to time, the Company acquires mining equipment and facilities under finance lease agreements. In the nine months ended September 30, 2024, the Company entered into multiple new lease financing arrangements for mining equipment primarily at Rochester for $ 32.4 million at a weighted average interest rate of 6.89%. 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. Interest Expense Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 2029 Senior Notes $ 3,756 $ 4,097 $ 11,331 $ 13,409 Revolving Credit Facility 7,427 4,956 21,399 11,481 Finance lease obligations 1,038 1,035 3,294 2,788 Amortization of debt issuance costs 581 703 1,779 1,964 Other debt obligations 770 710 2,324 1,450 Capitalized interest ( 292 ) ( 4,099 ) ( 738 ) ( 9,389 ) Total interest expense, net of capitalized interest $ 13,280 $ 7,402 $ 39,389 $ 21,703 15 Coeur Mining, Inc. and Subsidiaries Notes to Consolidated Financial Statements NOTE 8 – RECLAMATION Reclamation and mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties. On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates. Changes to the Company’s asset retirement obligations for its operating sites are as follows: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Asset retirement obligation - Beginning $ 219,917 $ 207,960 $ 214,013 $ 202,431 Accretion 4,233 4,153 12,463 12,219 Additions and changes to estimates — ( 2,682 ) — ( 2,682 ) Settlements ( 2,060 ) ( 1,415 ) ( 4,386 ) ( 3,952 ) Asset retirement obligation - Ending $ 222,090 $ 208,016 $ 222,090 $ 208,016 NOTE 9 - INCOME AND MINING TAXES The following table summarizes the components of Income and mining tax (expense) benefit for the three and nine months ended September 30, 2024 and 2023 by significant jurisdiction: Three months ended September 30, Nine months ended September 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 $ 41,389 $ ( 4,463 ) $ ( 22,674 ) $ ( 1,565 ) $ 7,498 $ ( 6,605 ) $ ( 83,994 ) $ ( 4,847 ) Canada ( 12,186 ) ( 394 ) ( 9,345 ) — ( 30,720 ) ( 766 ) ( 23,049 ) — Mexico 45,499 ( 20,960 ) 17,111 ( 4,532 ) 93,651 ( 41,659 ) 56,045 ( 21,824 ) Other jurisdictions ( 146 ) — ( 104 ) — ( 351 ) — ( 438 ) — $ 74,556 $ ( 25,817 ) $ ( 15,012 ) $ ( 6,097 ) $ 70,078 $ ( 49,030 ) $ ( 51,436 ) $ ( 26,671 ) During the third quarter of 2024, the Company reported estimated income and mining tax expense of approximately $ 25.8 million, resulting in an effective tax rate of 34.6 %. This compares to income tax expense of $ 6.1 million for an effective tax rate of ( 40.6 )% during the third 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: (i) variations in the Company’s income before income taxes; (ii) geographic distribution of that income; (iii) mining taxes; (iv) percentage depletion; (v) foreign exchange rates; and (vi) the impact of uncertain tax positions. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period. A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company 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 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. federal jurisdiction, and various state and foreign jurisdictions. The statute of limitations remains open from 2021 forward for the U.S. federal jurisdiction and from 2017 forward for certain other foreign jurisdictions. 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 September 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. 16 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements NOTE 10 – STOCK-BASED COMPENSATION The Company has stock incentive plans for executives, directors and eligible employees. Stock awards include performance shares, restricted stock and stock options. Stock-based compensation expense in the three and nine months ended September 30, 2024 was $ 2.8 million and $ 9.8 million, respectively, compared to $ 2.6 million and $ 8.5 million in the three and nine months ended September 30, 2023. At September 30, 2024, there was $ 11.3 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.6 years. The following table summarizes the grants awarded during the nine months ended September 30, 2024: Grant date Restricted stock Grant date fair value of restricted stock Performance shares Grant date fair value of performance shares February 26, 2024 3,087,822 $ 2.55 2,050,899 $ 2.77 August 9, 2024 77,354 $ 5.44 3,568 $ 2.77 NOTE 11 – FAIR VALUE MEASUREMENTS Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Change in the value of equity securities (1) $ — $ ( 2,010 ) $ — $ 4,629 Fair value adjustments, net $ — $ ( 2,010 ) $ — $ 4,629 (1) Includes unrealized losses on held equity securities of $ 2.0 million and $ 2.3 million for the three and nine months ended September 30, 2023, respectively. Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3). The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. 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 September 30, 2024 In thousands Total Level 1 Level 2 Level 3 Assets: Provisional metal sales contracts $ 359 $ — $ 359 $ — Liabilities: Provisional metal sales contracts $ 143 $ — $ 143 $ — Fair Value at December 31, 2023 In thousands Total Level 1 Level 2 Level 3 Assets: Provisional metal sales contracts $ 318 $ — $ 318 $ — Silver forwards 3,312 — 3,312 — $ 3,630 $ — $ 3,630 $ — Liabilities: Gold forwards $ 1,981 $ — $ 1,981 $ — The Company’s provisional metal sales contracts include concentrate and certain doré sales contracts that are valued using pricing models with inputs derived from observable market data, including forward market prices. The Company’s gold 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 nine months ended September 30, 2024. 17 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 September 30, 2024 and December 31, 2023 is presented in the following table: September 30, 2024 In thousands Book Value Fair Value Level 1 Level 2 Level 3 Liabilities: 2029 Senior Notes (1) $ 289,874 $ 281,899 $ — $ 281,899 $ — Revolving Credit Facility (2) $ 225,000 $ 225,000 $ — $ 225,000 $ — Deferred Cash Due 2025 $ 9,471 $ 9,357 $ — $ 9,357 $ — Deferred Cash Due 2026 $ 4,427 $ 4,693 $ — $ 4,693 $ — (1) Net of unamortized debt issuance costs of $ 3.2 million. (2) Unamortized debt issuance costs of $ 3.8 million included in Other Non-Current Assets . December 31, 2023 In thousands Book Value Fair Value Level 1 Level 2 Level 3 Liabilities: 2029 Senior Notes (1) $ 295,115 $ 271,272 $ — $ 271,272 $ — Revolving Credit Facility (2) $ 175,000 $ 175,000 $ — $ 175,000 $ — (1) Net of unamortized debt issuance costs of $ 3.9 million . (2) Unamortized debt issuance costs of $ 2.8 million included in Other Non-Current Assets . The fair value of the 2029 Senior Notes was estimated using quoted market prices. The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns. In July 2024, the Company completed the purchase of the Fresnillo mining concessions. Total consideration includes a cash payment of $ 10 million due at closing, the Deferred Cash Due 2025 of $ 10 million, and the Deferred Cash Due 2026 of $ 5 million. The fair value of the Deferred Cash Due 2025 and Deferred Cash Due 2026 was estimated using the pricing model with inputs derived from observable and unobservable data, including yield curves and credit spreads. The model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. NOTE 12 – DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES The Company is exposed to various market risks, including the effect of changes in metal prices, foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. Derivative gains and losses are included in operating cash flows in the period in which they contractually settle. The Company does not hold or issue derivatives for trading or speculative purposes. The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships. Derivatives 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 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 September 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 18 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements 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. The following summarizes the classification of the fair value of the derivative instruments designated as cash flow hedges: September 30, 2024 In thousands Prepaid expenses and other Other assets Accrued liabilities and other Gold forwards $ — $ — $ — Silver forwards $ — $ — $ — December 31, 2023 In thousands Prepaid expenses and other Other assets Accrued liabilities and other Gold forwards $ — $ — $ 1,981 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 and nine months ended September 30, 2024 and 2023, respectively (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Amount of Gain (Loss) Recognized in AOCI Gold forwards $ — $ 6,736 $ ( 10,886 ) $ ( 1,317 ) Silver forwards — 491 ( 7,621 ) 8,458 $ — $ 7,227 $ ( 18,507 ) $ 7,141 Amount of (Gain) Loss Reclassified from AOCI to Earnings Gold forwards $ — $ ( 2,723 ) $ 12,867 $ ( 3,615 ) Silver forwards — ( 2,197 ) 4,309 ( 4,215 ) $ — $ ( 4,920 ) $ 17,176 $ ( 7,830 ) Derivatives Not Designated as Hedging Instruments Provisional Metal Sales The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement. At September 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 Provisional gold sales contracts $ 31,366 $ — Average gold price per ounce $ 2,568 $ — Notional ounces 12,213 — The following summarizes the classification of the fair value of the derivative instruments: September 30, 2024 In thousands Prepaid expenses and other Accrued liabilities and other Provisional metal sales contracts $ 359 $ 143 19 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements December 31, 2023 In thousands Prepaid expenses and other Accrued liabilities and other Provisional metal sales contracts $ 318 $ — The following represent mark-to-market gains (losses) on derivative instruments in the three and nine months ended September 30, 2024 and 2023, respectively (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Financial statement line Derivative 2024 2023 2024 2023 Revenue Provisional metal sales contracts $ 407 $ 14 $ ( 101 ) $ ( 305 ) Credit Risk The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties. NOTE 13 – ADDITIONAL COMPREHENSIVE INCOME (LOSS) DETAIL Pre-development, reclamation, and other consists of the following: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Silvertip ongoing carrying costs $ 1,675 $ 2,780 $ 6,091 $ 13,569 Loss on sale of assets 176 19 4,352 331 Asset retirement accretion 4,233 4,153 12,463 12,219 Kensington royalty settlement (1) — — 6,750 — Transaction costs 976 — 976 — Other 1,523 1,747 4,769 3,830 Pre-development, reclamation and other $ 8,583 $ 8,699 $ 35,401 $ 29,949 (1) See Note 16 -- Commitments and Contingencies for additional details on the Kensington royalty settlement . Other, net consists of the following: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Foreign exchange gain (loss) $ 1,708 $ 421 $ 3,432 $ ( 107 ) Loss on dispositions — — — ( 12,319 ) Flow-through shares 1,248 — 5,193 — RMC bankruptcy distribution — — 1,199 1,516 Other 478 57 1,505 820 Other, net $ 3,434 $ 478 $ 11,329 $ ( 10,090 ) NOTE 14 – NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three and nine months ended September 30, 2024, there were 29,130 and 103,916 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, 1.1 million and 1.6 million common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2023, respectively. 20 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements Three months ended September 30, Nine months ended September 30, In thousands except per share amounts 2024 2023 2024 2023 Net income (loss) available to common stockholders $ 48,739 $ ( 21,109 ) $ 21,048 $ ( 78,107 ) Weighted average shares: Basic 393,969 356,676 390,936 330,440 Effect of stock-based compensation plans 6,869 — 5,442 — Diluted 400,838 356,676 396,378 330,440 Income (loss) per share: Basic $ 0.12 $ ( 0.06 ) $ 0.05 $ ( 0.24 ) Diluted $ 0.12 $ ( 0.06 ) $ 0.05 $ ( 0.24 ) 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 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 nine months ended September 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 $ 5.2 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. The FT Shares were not registered under the Securities Act and were offered and sold outside the United States to accredited investors in reliance on Regulation S and/or Regulation D of the Securities Act. NOTE 15 - SUPPLEMENTAL GUARANTOR INFORMATION The following summarized financial information is presented to satisfy disclosure requirements of Rule 13-01 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc. and its subsidiaries, Coeur Capital, Inc., Sterling Intermediate Holdco, Inc., and Coeur Sterling Holdings LLC (collectively, the “Subsidiary Guarantors”) of the 2029 Senior Notes. The following schedules present summarized financial information of (a) Coeur, the parent company, and (b) the Subsidiary Guarantors (collectively the “Obligor Group”). The summarized financial information of the Obligor Group is presented on a combined basis with intercompany balances and transactions between entities in the Obligor Group eliminated. The Obligor Group’s amounts due from, amounts due to and transactions with certain wholly-owned domestic and foreign subsidiaries of the Company have been presented in separate line items, if they are material. Each of the Subsidiary Guarantors is 100% owned by Coeur and the guarantees are full and unconditional and joint and several obligations. There are no restrictions on the ability of Coeur to obtain funds from the Subsidiary Guarantors by dividend or loan. SUMMARIZED BALANCE SHEET Coeur Mining, Inc. Subsidiary Guarantors In thousands September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023 Current assets $ 12,429 $ 19,850 $ 228,442 $ 143,170 Non-current assets (1) $ 457,605 $ 393,773 $ 1,344,709 $ 1,286,135 Non-guarantor intercompany assets $ 3,854 $ — $ — $ — Current liabilities $ 19,127 $ 27,836 $ 204,205 $ 198,262 Non-current liabilities $ 523,965 $ 478,488 $ 216,156 $ 203,405 Non-guarantor intercompany liabilities $ 3,016 $ 6,033 $ 1,609 $ 1,591 (1) Coeur Mining, Inc.’s non-current assets includes its investment in Guarantor Subsidiaries. 21 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements SUMMARIZED STATEMENTS OF INCOME NINE MONTHS ENDED SEPTEMBER 30, 2024 In thousands Coeur Mining, Inc. Subsidiary Guarantors Revenue $ — $ 458,561 Gross profit (loss) $ ( 609 ) $ 111,113 Net income (loss) $ 21,048 $ 64,072 NOTE 16 – COMMITMENTS AND CONTINGENCIES Mexico Litigation Matters As of September 30, 2024, $ 26.9 million in principal is due from the Mexican government associated with amounts that were paid as VAT under Coeur Mexicana, S.A. de C.V.’s (“Coeur Mexicana’s”) prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016. Coeur Mexicana applied for and initially received refunds in the normal course of these amounts paid as VAT associated with the royalty payments; however, in 2011 the Mexican tax authorities began denying refunds of these amounts based on the argument that VAT was not legally due on the royalty payments. Accordingly, Coeur Mexicana began to request refunds of these amounts paid as VAT as undue payments, which the Mexican tax authorities also denied. The Company has since been engaged in ongoing efforts to recover these amounts from the Mexican government (including through refiling refund requests as undue payments rather than refunds of VAT that were due, litigation and international arbitration). Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation of the matter continued at the Mexican administrative, appeals court and supreme court levels for several years, most of which was determined unfavorably to Coeur based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are contrary to legal precedent, conflicting and erroneous. While the Company believes that it remains legally entitled to be refunded the full amount of the receivable and intends to rigorously continue its recovery efforts, based on the continued failure to recover the receivable and unfavorable Mexican court decisions, the Company determined to write down the carrying value of the receivable at September 30, 2021. Coeur has elected to initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA, to pursue recovery of the unduly paid VAT plus interest and other damages. Outcomes in NAFTA arbitration and the process for recovering funds even if there is a successful outcome in NAFTA arbitration can be lengthy and unpredictable. In addition, ongoing litigation with the Mexican government associated with enforcement of water rights in Mexico, if unsuccessful, may impact Coeur Mexicana’s ability to access new sources of water to provide sufficient supply for its operations at Palmarejo and, if material, may have a material adverse impact on the Company’s operations and financial results. Palmarejo Gold Stream 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 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. Because there is no minimum obligation associated with the deposit, it is not considered a financing, and each shipment is considered to be a separate performance obligation. The stream agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada. The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Condensed Consolidated Balance Sheet. The following table presents a roll forward of the Franco-Nevada contract liability balance: 22 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Opening Balance $ 6,666 $ 7,196 $ 6,942 $ 7,411 Revenue Recognized ( 129 ) ( 145 ) ( 405 ) ( 360 ) Closing Balance $ 6,537 $ 7,051 $ 6,537 $ 7,051 Metal Sales Prepayments In June 2019, Coeur amended its existing sales and purchase contract with a metal sales counterparty for gold concentrate from its Kensington mine (the “Amended Sales Contract”). From time to time thereafter, the Amended Sales Contract has been further amended to allow for additional prepayments. In September 2024, the Company received an additional prepayment of $ 25.0 million, following the fulfillment of the previous received prepayments. 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 September 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 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 September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Opening Balance $ 43,282 $ 45,012 $ 55,082 $ 25,016 Additions 54,828 30,311 140,033 75,307 Revenue Recognized ( 43,030 ) ( 31,000 ) ( 140,035 ) ( 56,000 ) Closing Balance $ 55,080 $ 44,323 $ 55,080 $ 44,323 Kensington Royalty Matter On March 28, 2024, the Company and its subsidiary Coeur Alaska, Inc. (“Coeur Alaska”) entered into a settlement agreement to resolve litigation with Maverix Metals Inc. and Maverix Metals (Nevada) Inc. (collectively “Maverix”) regarding the terms of a royalty impacting a portion of the Kensington mine property (the “Maverix Litigation”). While Coeur Alaska continued to believe its claims and counterclaims in the matter were valid, it determined that the settlement was appropriate given the inherent uncertainty presented in litigation matters. In consideration for the dismissal of the Maverix Litigation and pursuant to other customary terms of settlement, Coeur Alaska and Maverix agreed to amend the terms of the royalty to decrease the effective rate of the royalty and to eliminate the concept of cost recoupment provided for in the original royalty. The amended royalty now provides that Coeur Alaska pays a net returns royalty on up to two million troy ounces of gold produced from the current boundaries of the Kensington mine at a rate of: (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. 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. 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. 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 23 Coeur Mining, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements September 30, 2024 and December 31, 2023, the Company had surety bonds totaling $ 349.5 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 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. NOTE 17 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION Accrued liabilities and other consist of the following: In thousands September 30, 2024 December 31, 2023 Accrued salaries and wages $ 29,815 $ 31,722 Flow-through share premium received 1,220 5,563 Deferred revenue (1) 55,664 55,547 Income and mining taxes 28,731 11,766 Kensington royalty settlement (1) 3,750 — Deferred Cash Due 2025 9,471 — Accrued operating costs 12,055 11,081 Unrealized losses on derivatives 142 1,981 Taxes other than income and mining 4,740 5,321 Accrued interest payable 3,373 7,957 Operating lease liabilities 4,324 9,975 Accrued liabilities and other $ 153,285 $ 140,913 (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 and nine months ended September 30, 2024 and 2023: In thousands September 30, 2024 September 30, 2023 Cash and cash equivalents $ 76,916 $ 53,223 Restricted cash equivalents (1) 1,768 1,723 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 78,684 $ 54,946 (1) Restricted cash equivalents are included in Prepaid expenses and other and Restricted assets on the Condensed Consolidated Balance Sheet. 24