Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Coeur Mining, Inc. and its subsidiaries (collectively the “Company”, “our”, or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this Item. We provide Costs applicable to sales (“CAS”) allocation, referred to as the co-product method, based on revenue contribution for Palmarejo and Rochester and based on the primary metal, referred to as the by-product method, for Rainy River, New Afton, and Wharf. Revenue from secondary metal, such as silver at Rainy River, New Afton, and Wharf, is treated as a cost credit.
Overview
We are a U.S.-based, well-diversified, growing precious metals producer with seven wholly-owned North American operations: the New Afton gold-copper mine in British Columbia, Canada, the Rainy River gold-silver mine in Ontario, Canada, the Las Chispas silver-gold mine in Sonora, Mexico, the Palmarejo gold-silver mine in Chihuahua, Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the Company wholly-owns the Silvertip polymetallic critical minerals exploration project in British Columbia, Canada.
First Quarter Highlights
For the quarter, Coeur reported revenue of $856 million and cash provided by operating activities of $341 million. We reported GAAP net income of $247 million, or $0.35 per diluted share. On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $475 million and net income of $254 million or $0.36 per diluted share.
• Solid production and cost performance in line with 2026 guidance – Operating strength across the portfolio led to first quarter production of 96,503 ounces of gold and 4.4 million ounces of silver, representing year-over-year increases of 11% and 18%, respectively. Full-year 2026 production remains on-track to reach 680,000 - 815,000 ounces of gold, 18.7 - 21.9 million ounces of silver, and 50 - 65 million pounds of copper
• Record financial results – First quarter free cash flow totaled $267 million despite several first-quarter specific outflows totaling over $200 million. Quarterly adjusted EBITDA 1 increased 12% versus the prior quarter and nearly quadrupled year-over-year to a record $475 million, driving the last-twelve-month total to nearly $1.4 billion. Average realized prices for gold and silver increased 15% and 53%, respectively, compared to the fourth quarter
• Strong financial position and growing liquidity resulting in updated financial policy – Cash and cash equivalents of $843 million represented an increase of 52% compared to the prior quarter and a near eleven-fold increase compared to the prior-year period. On March 23, 2026, Coeur announced an expanded $750 million share repurchase program and the establishment of an inaugural dividend policy of $0.02 per share of Coeur common stock paid semiannually, with the first dividend expected to be paid during the second quarter of 2026. The Company also entered into a new $1 billion revolving credit facility during the first quarter
• New Gold transaction completed; integration efforts advancing on schedule – During the eleven days of the first quarter following completion of the New Gold transaction on March 20, 2026, New Afton and Rainy River contributed production of 14,145 ounces of gold, 22,989 ounces of silver and 1.4 million pounds of copper. Ongoing organizational integration initiatives are progressing according to plan
• New Afton’s K-Zone maiden resource adds to Coeur’s pipeline of attractive growth projects – On March 23, 2026, Coeur filed updated technical reports for New Afton and Rainy River, which included an initial resource at New Afton’s K-Zone totaling 47.6 million tonnes of measured and indicated mineral resources, containing an estimated 715,000 ounces of gold, 2.9 million ounces of silver and 606 million pounds of copper. Inferred mineral resources totaled 5.9 million tonnes containing 86,000 ounces of gold, 309,000 ounces of silver, and 77 million pounds of copper
• Updated Rainy River technical report highlights mine life expansion – New life of mine plan reflects strong production and cash flow profile including a two-year mine life extension to 2035
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Selected Financial and Operating Results
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Financial Results: (in thousands, except per share amounts)
Gold sales $ 475,222 $ 424,804 $ 235,327
Silver sales $ 362,198 $ 250,043 $ 124,735
Copper sales $ 18,772 $ — $ —
Consolidated revenue $ 856,192 $ 674,847 $ 360,062
Net income $ 246,761 $ 214,969 $ 33,353
Net income per share, diluted $ 0.35 $ 0.33 $ 0.06
Adjusted net income (loss) (1)
$ 253,497 $ 227,296 $ 40,486
Adjusted net income (loss) per share, diluted (1)
$ 0.36 $ 0.35 $ 0.08
EBITDA (1)
$ 454,983 $ 407,131 $ 105,309
Adjusted EBITDA (1)
$ 474,883 $ 424,484 $ 121,876
Free cash flow $ 266,757 $ 313,268 $ 17,633
Total debt (2)
$ 761,376 $ 340,533 $ 498,269
Operating Results:
Gold ounces produced 96,503 112,429 86,766
Silver ounces produced 4,388,452 4,707,431 3,729,218
Copper pounds produced 1,359,922 — —
Gold ounces sold 108,420 111,273 89,316
Silver ounces sold 4,371,556 4,604,610 3,892,153
Copper pounds sold 3,385,075 — —
Average realized price per gold ounce $ 4,383 $ 3,818 $ 2,635
Average realized price per silver ounce $ 82.85 $ 54.30 $ 32.05
Average realized price per copper pound $ 5.55 $ — $ —
(1) See “Non-GAAP Financial Performance Measures”. Includes costs of $85 million, $3 million, and $27 million for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, related to the purchase price allocation (“PPA”) ascribed to Inventory at New Afton, Rainy River and Las Chispas .
(2) Includes finance leases. Net of debt issuance costs and premium received.
Consolidated Financial Results
Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Revenue
We sold 108,420 gold ounces, 4.4 million silver ounces, and 3.4 million copper pounds, compared to 111,273 gold ounces, 4.6 million silver ounces and zero copper pounds. Revenue increased by $181 million, or 27%, as a result of 15% and 53% increases in average realized gold and silver prices, respectively, and sales of 3.4 million copper pounds from acquired inventory at New Afton, partially offset by a 3% and 5% decrease in gold and silver ounces sold, respectively. The decrease in gold ounces sold was the result of temporarily-reduced crushing capacity at Wharf, lower mill throughput at Kensington and Palmarejo, lower grades at Rochester and Kensington, and lower placement rates at Rochester. This was partially offset by post-acquisition sales at Rainy River and New Afton. The decrease in silver ounces sold was the result of lower mill throughput at Palmarejo, and lower placement rates at Rochester, partially offset by higher mill throughput and recoveries at Las Chispas. Gold, silver, and copper represented 56%, 42%, and 2% of first quarter 2026 sales revenue, respectively, compared to 63%, 37%, and nil of fourth quarter 2025 sales revenue, respectively.
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The following table summarizes consolidated metal sales:
Three Months Ended Increase (Decrease) Percentage Change
In thousands March 31, 2026 December 31, 2025
Gold sales $ 475,222 $ 424,804 $ 50,418 12 %
Silver sales 362,198 250,043 112,155 45 %
Copper sales 18,772 — 18,772 100 %
Metal sales $ 856,192 $ 674,847 $ 181,345 27 %
Costs Applicable to Sales
Costs applicable to sales increased $114 million, or 53%, primarily driven by post-acquisition sales at Rainy River and New Afton as well as the impact of the purchase price allocation (“PPA”) ascribed to Inventory of $85 million compared to $3 million in the fourth quarter of 2025, partially offset by lower gold ounces sold at Wharf. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization increased $26 million, or 36%, as a result of post-acquisition sales at Rainy River and New Afton, and higher gold and silver ounces sold at Las Chispas, partially offset by lower gold and silver ounces sold at Palmarejo, Rochester, Kensington and Wharf.
Expenses
General and administrative expenses increased $6 million, or 42%, primarily due to higher stock-based compensation and annual incentive costs.
Exploration expense increased $7 million, or 39%, primarily due to planned increased drilling at Las Chispas, Kensington and Wharf.
Pre-development, reclamation, and other expenses increased $6 million, or 25%, as a result of higher transaction costs associated with the acquisition of New Gold.
The following table summarizes pre-development, reclamation, and other expenses:
Three Months Ended Increase (Decrease) Percentage Change
In thousands March 31, 2026 December 31, 2025
Silvertip ongoing carrying costs $ 3,266 $ 2,773 $ 493 18 %
Loss on sale of assets 25 282 (257) (91) %
Asset retirement accretion 4,839 5,077 (238) (5) %
Transaction costs 19,910 14,248 5,662 40 %
Wage and hour litigation settlement (517) 61 (578) (948) %
Other 2,304 1,390 914 66 %
Pre-development, reclamation and other expense $ 29,827 $ 23,831 $ 5,996 25 %
Other Income and Expenses
The Company incurred $2 million of debt extinguishment costs following the termination of the $400 million revolving credit facility and its replacement with a new $1.0 billion revolving credit facility.
Interest expense (net of capitalized interest) was unchanged at $6 million as interest on the $400 million of debt assumed from the New Gold Transaction was offset by lower interest paid on finance leases. The new $1.0 billion RCF had no outstanding amount drawn as of March 31, 2026.
Other, net increased to a gain of $8 million compared to $6 million as a result of higher interest income, partially offset by lower foreign exchange rate gains.
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Income and Mining Taxes
Income and mining tax expense of approximately $102 million resulted in an effective tax rate of 29.2% for three months ended March 31, 2026. This compares to income tax expense of $113 million for an effective tax rate of 34.4% for three months ended December 31, 2025. 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) U.S. valuation allowance release; (ii) foreign exchange rates; (iii) variations in our income before income taxes; (iv) geographic distribution of that income; (v) the impact of uncertain tax positions; (vi) mining taxes; (vii) excess of tax benefits from share-based compensation; and (viii) percentage depletion. Fluctuations in foreign exchange rates on deferred tax balances decreased income and mining tax expense by $2 million and increased income and mining tax expense by $6 million for the three months ended March 31, 2026 and December 31, 2025, respectively. The impact of foreign exchange rates on deferred tax balances is predominantly due to the Mexican Peso and deferred taxes resulting from Las Chispas purchase price accounting. 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, Three Months Ended December 31,
2026 2025
In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit
United States $ 139,173 $ (30,642) $ 193,410 $ (13,144)
Canada (41,567) 8,381 (17,042) (5,755)
Mexico 251,360 (79,693) 152,639 (93,640)
Other jurisdictions (251) — (1,499) —
$ 348,715 $ (101,954) $ 327,508 $ (112,539)
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors”.
The Company has historically provided a valuation allowance against a portion of its U.S. net deferred tax assets. In the first quarter of 2026, the Company released $1 million of valuation allowance against its U.S. net deferred tax assets, resulting in a non-cash deferred tax benefit. The $1 million valuation allowance release is related to forecasted future year income. The timing of this valuation allowance release was primarily due to the cumulative income position for the most recent three-year period and projected future earnings.
The Company continues to maintain a valuation allowance against approximately $56 million of U.S. federal and state deferred tax assets as of March 31, 2026, because the Company has concluded it is not more likely than not to be realized.
The exact timing and amount of any valuation allowance release are subject to change, depending upon the Company’s future profitability and the net deferred tax assets available.
Net Income
Net income was $247 million, or $0.35 per diluted share, compared to $215 million, or $0.33 per diluted share. The increase in net income was driven by a 15% and 53% increase in average realized gold and silver prices, respectively, and post-acquisition sales at Rainy River and New Afton. This was partially offset by a 3% and 5% decrease in gold and silver ounces sold, respectively, post-acquisition costs applicable to sales at Rainy River and New Afton, higher general and administrative and exploration costs, and higher income and mining taxes. Adjusted net income was $253 million, or $0.36 per diluted share, compared to $227 million, or $0.35 per diluted share (see “Non-GAAP Financial Performance Measures”).
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Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Revenue
We sold 108,420 gold ounces, 4.4 million silver ounces, and 3.4 million copper pounds, compared to 89,316 gold ounces, 3.9 million silver ounces and zero copper pounds. Revenue increased by $496 million, or 138%, as a result of 21% and 12% increases in gold and silver ounces sold, respectively, sales of 3.4 million copper pounds from acquired inventory at New Afton, and a 66% and 159% increase in average realized gold and silver prices, respectively.
The increase in gold ounces sold was primarily due to full-quarter sales at Las Chispas and post-acquisition sales at Rainy River and New Afton, partially offset by lower mill throughput at Kensington and temporarily-reduced crushing capacity at Wharf. The increase in silver ounces sold resulted from full-quarter sales at Las Chispas, higher placement rates at Rochester, partially offset by lower grades at Palmarejo and Rochester. Gold, silver and copper represented 56%, 42% and 2% of sales revenue during the first quarter of 2026, respectively, compared to 65%, 35% and nil during the first quarter of 2025, respectively.
The following table summarizes consolidated metal sales:
Three Months Ended March 31, Increase (Decrease) Percentage Change
In thousands 2026 2025
Gold sales $ 475,222 $ 235,327 $ 239,895 102 %
Silver sales 362,198 124,735 237,463 190 %
Copper sales 18,772 — 18,772 100 %
Metal sales $ 856,192 $ 360,062 $ 496,130 138 %
Costs Applicable to Sales
Costs applicable to sales increased $126 million, or 62%, primarily due to the post-acquisition sales at Rainy River and New Afton, full-quarter sales at Las Chispas and higher operating costs at Palmarejo, Rochester and Kensington, partially offset lower gold ounces sold Wharf. Cost applicable to sales includes the impact of the PPA ascribed to Inventory of $85 million compared to $27 million during the first quarter of 2025. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization increased $57 million, or 132%, as a result of post-acquisition sales at Rainy River and New Afton, full-quarter sales at Las Chispas, partially offset lower gold ounces sold at Palmarejo and Wharf.
Expenses
General and administrative expenses increased $8 million, or 56%, primarily due to higher stock-based compensation, annual incentive, outside service, and audit fees.
Exploration expense increased $6 million, or 31%, driven by planned higher resource expansion drilling activity at all locations, and full-quarter exploration expense at Las Chispas.
Pre-development, reclamation, and other expenses increased $13 million, or 76%, primarily due to higher transaction costs related to the acquisition of New Gold.
The following table summarizes pre-development, reclamation, and other expenses:
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Three Months Ended March 31, Increase (Decrease) Percentage Change
In thousands 2026 2025
Silvertip ongoing carrying costs $ 3,266 $ 2,626 $ 640 24 %
(Gain) Loss on sale of assets 25 186 (161) (87) %
Asset retirement accretion 4,839 4,732 107 2 %
Kensington royalty settlement — (95) 95 (100) %
Transaction costs 19,910 8,887 11,023 124 %
Wage and hour litigation settlement (517) — (517) (100) %
Other 2,304 617 1,687 273 %
Pre-development, reclamation and other expense $ 29,827 $ 16,953 $ 12,874 76 %
Other Income and Expenses
The Company incurred $2 million of debt extinguishment costs following the termination of the $400 million revolving credit facility and its replacement with the new $1.0 billion revolving credit facility.
Interest expense (net of capitalized interest) decreased to $6 million from $10 million due to lower interest paid under the RCF driven by lower average debt levels and interest rate, partially offset by higher interest paid under finance lease obligations driven by new finance leases in the second half of 2025. The new $1.0 billion RCF had no outstanding amount drawn as of March 31, 2026.
Other, net increased to a gain of $8 million compared to $0.4 million as a result of higher interest income.
Income and Mining Taxes
Income and mining tax expense of approximately $102 million resulted in an effective tax rate of 29.2% for the first quarter of 2026. This compares to income tax expense of $18 million for an effective tax rate of 35.6% for the first quarter of 2025. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) mining taxes; (iv) percentage depletion; (v) excess of tax benefits from share-based compensation; (vi) foreign exchange rates; (vii) U.S. valuation allowance release; and (viii) the impact of uncertain tax positions. Fluctuations in foreign exchange rates on deferred tax balances decreased income and mining tax expense by $2 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively. The impact of foreign exchange rates on deferred tax balances is predominantly due to the Mexican Peso and deferred taxes resulting from Las Chispas purchase price accounting. 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,
2026 2025
In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit
United States $ 139,173 $ (30,642) $ 20,325 $ (5,305)
Canada (41,567) 8,381 (9,952) (118)
Mexico 251,360 (79,693) 41,090 (12,990)
Other jurisdictions (251) — 303 —
$ 348,715 $ (101,954) $ 51,766 $ (18,413)
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors”.
The Company has historically provided a valuation allowance against a portion its U.S. net deferred tax assets. In the first quarter of 2026, the Company released $1 million of valuation allowance against its U.S. net deferred tax assets, resulting
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in a non-cash deferred tax benefit. The $1 million valuation allowance release is related to forecasted future year income. The timing of this valuation allowance release was primarily due to the cumulative income position for the most recent three-year period and projected future earnings.
The Company continues to maintain a valuation allowance against approximately $56 million of U.S. federal and state deferred tax assets as of March 31, 2026, because the Company has concluded it is not more likely than not to be realized.
The exact timing and amount of any valuation allowance release are subject to change, depending upon the Company’s future profitability and the net deferred tax assets available.
Net Income
Net income was $247 million, or $0.35 per diluted share, compared to $33 million, or $0.06 per diluted share. The increase in net income was driven by a 21% and 12% increase in gold and silver ounces sold, respectively, which includes post-acquisition sales at Rainy River and New Afton and full-quarter sales at Las Chispas, a 66% and 159% increase in average realized gold and silver prices, respectively, and lower interest expense This was partially offset by post-acquisition costs applicable to sales at Rainy River and New Afton, higher general and administrative, exploration, and Transaction costs. Adjusted net income was $253 million, or $0.36 per diluted share, compared to $40 million, or $0.08 per diluted share (see “Non-GAAP Financial Performance Measures”).
2026 Guidance
The Company has reaffirmed its full-year 2026 guidance, including production, CAS, capital expenditures, depreciation, depletion and amortization (“DD&A”), exploration, general and administrative expenses (“G&A”), and income and mining tax.
Overall cost guidance reflects higher expected royalty expense driven by stronger realized metal prices, particularly at Rochester, the impact of a stronger Mexican peso, inflation of 3% to 5% across the portfolio, and higher planned maintenance costs. For our co-product mines (New Afton, Las Chispas, Palmarejo, and Rochester), costs are allocated to gold, silver, and copper based on their relative revenue contribution. Given the higher expected contribution of silver to total revenue due to the outperformance of silver’s price relative to the gold price, silver CAS per ounce is expected to be higher in 2026, consistent with the trend seen in the second half of 2025.
2026 Production Guidance
Gold Silver Copper
(oz) (K oz) (M lbs)
New Afton 60,000 - 80,000 130 - 180 50 - 65
Rainy River 230,000 - 275,000 350 - 450 —
Las Chispas 55,000 - 65,000 5,500 - 6,300 —
Palmarejo 95,000 - 105,000 6,250 - 7,000 —
Rochester 70,000 - 90,000 6,400 - 7,800 —
Kensington 98,000 - 110,000 — —
Wharf 72,000 - 90,000 50 - 200 —
Total 680,000 - 815,000 18,680 - 21,930 50 - 65
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2026 Adjusted Costs Applicable to Sales Guidance
Gold Silver Copper
($/oz) ($/oz) ($/lb)
New Afton (co-product) 5
$1,000 - $1,200 — $1.20 - $1.35
Rainy River (by-product) 6
$2,150 - $2,350 — —
Las Chispas (co-product) $750 - $950 $12.50 - $14.50 —
Palmarejo (co-product) $700 - $900 $21.50 - $23.50 —
Rochester (co-product) $1,350 - $1,550 $23.00 - $25.00 —
Kensington $1,750 - $1,950 — —
Wharf (by-product) $1,400 - $1,600 — —
2026 Capital, DD&A, Exploration, G&A and Income and Mining Tax Guidance
($M)
Capital Expenditures, Sustaining $291 - $337
Capital Expenditures, Development $146 - $189
Exploration, Expensed $118 - $132
Exploration, Capitalized $29 - $37
General & Administrative Expenses $90 - $100
Cash Income and Mining Taxes $475 - $600
Amortization $1,200 - $1,400
Effective Tax Rate (%) 30% - 36%
Note: The Company’s guidance figures assume estimated prices of $4,550/oz gold, $77.50/oz silver, and $5.00/lb copper, as well as CAD of 1.38 and MXN of 18.00. Guidance figures exclude the impact of any metal sales or foreign exchange hedges.
The normalized effective tax rate excludes items that are not reflective of Coeur’s underlying performance, such as the impacts of foreign currency on deferred taxes, taxes related to prior periods, and one-time, non-cash, tax valuation allowance adjustments.
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Results of Operations
New Afton, Canada
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes milled 134,385 — —
Average gold grade (grams/tonne) 0.44 — —
Average copper grade (%) 0.48 — —
Average recovery rate – Au 87.4 % — % — %
Average recovery rate – Cu 94.8 % — % — %
Gold ounces produced 1,651 — —
Silver ounces produced 3,780 — —
Copper pounds produced 1,359,922 — —
Gold ounces sold 3,906 — —
Silver ounces sold 9,132 — —
Copper pounds sold 3,385,075 — —
CAS per gold ounce (1)
$ 4,488 — —
CAS per copper pound (1)
$ 5.36 — —
(1) See Non-GAAP Financial Performance Measures. Includes the impact of $2,560 and $3.10 on costs applicable to sales per gold ounce and copper pound sold, respectively, attributable to PPA ascribed to Inventory of $20 million in the first quarter of 2026.
Three Months Ended March 31, 2026
New Afton results represent eleven days of post-acquisition activity subsequent to the acquisition of New Gold on March 20, 2026. Metal sales were $38 million, or 4% of Coeur’s metal sales. Costs applicable to sales per gold ounce and copper pound sold includes $2,560 and $3.10, respectively, of costs related to the expensing of $20 million of PPA that was ascribed to Inventory . Amortization totaled $14 million. Capital expenditures were not significant.
Rainy River, Canada
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes milled 225,632 — —
Average gold grade (grams/tonne) 0.87 — —
Average recovery rate – Au 90.1 % — % — %
Gold ounces produced 12,494 — —
Silver ounces produced 19,209 — —
Gold ounces sold 21,407 — —
Silver ounces sold 31,990 — —
CAS per gold ounce (1)
$ 4,215 — —
(1) See Non-GAAP Financial Performance Measures. Includes the impact of $3,026 on costs applicable to sales per gold ounce sold, attributable to PPA ascribed to Inventory of $65 million in the first quarter of 2026.
Three Months Ended March 31, 2026
Rainy River results represent eleven days of post-acquisition activity subsequent to the acquisition of New Gold on March 20, 2026. Metal sales were $96 million, or 11% of Coeur’s metal sales. Costs applicable to sales per gold ounce sold includes $3,026 of costs related to the expensing of $65 million of PPA that was ascribed to Inventory . Amortization totaled $17 million. Capital expenditures were $6 million.
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Las Chispas, Mexico
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes milled 119,197 114,814 53,857
Average gold grade (grams/tonne) 4.0 4.4 4.4
Average silver grade (grams/tonne) 389 411 436
Average recovery rate – Au 99.1 % 89.9 % 98.6 %
Average recovery rate – Ag 99.4 % 90.3 % 98.1 %
Gold ounces produced 15,031 14,719 7,175
Silver ounces produced 1,480,666 1,371,010 714,239
Gold ounces sold 14,898 14,819 9,607
Silver ounces sold 1,460,512 1,367,427 923,723
CAS per gold ounce (1)
$ 781 $ 1,014 $ 2,140
CAS per silver ounce (1)
$ 13.57 $ 13.43 $ 24.11
(1) See Non-GAAP Financial Performance Measures. Includes the impact of $1,351 and $15.22 on costs applicable to sales per gold and silver ounce sold, respectively, attributable to PPA ascribed to Inventory of $27.0 million in the first quarter of 2025. Includes the impact of $101 and $1.33 on costs applicable to sales per gold and silver ounce sold, respectively, attributable to PPA ascribed to Inventory of $3 million in the fourth quarter of 2025.
Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Gold and silver production increased 2% and 8%, respectively, as a result of a 4% increase in mill throughput and higher average gold grade and silver recoveries. Metal sales were $194 million, or 23% of Coeur’s metal sales, compared with $135 million, or 20% of Coeur’s metal sales. Revenue increased by $59 million, or 44%, of which $51 million was due to higher average realized gold and silver prices and $8 million was the result of higher volume of gold and silver production. Costs applicable to sales per gold and silver ounce decreased 22% and increased 2%, respectively, due to the mix of gold and silver sales, which impacted co-product cost allocation, higher production and the absence of impact of PPA in 2026, partially offset by higher labor costs. Amortization increased by $3 million to $35 million as a result of higher gold and silver ounces sold. Capital expenditures remained comparable at $13 million.
Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Las Chispas results represent post-acquisition activity subsequent to the acquisition of SilverCrest on February 14, 2025, which drove the gold and silver production increase of 109% and 107%, respectively. Metal sales were $58 million, or 23% of Coeur’s metal sales, compared with $58 million, or 16% of Coeur’s metal sales. Revenue increased by $136 million, or 234%, of which $70 million was due to higher gold and silver prices, and $66 million was attributable to higher volume of gold and silver production. Costs applicable to sales per gold and silver ounce decreased 64% and 44%, respectively, due to the mix of gold and silver sales which impacted co-product cost allocation, and the absence of PPA that was ascribed to Inventory in 2026. In the prior year quarter, costs applicable to sales per gold and silver ounce sold includes $1,351 and $15.22, respectively, of costs related to the expensing of the $27 million of PPA. Amortization and capital expenditures increased to $35 million and $13 million, respectively, due to a full-quarter of results in 2026.
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Palmarejo, Mexico
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes milled 441,721 470,127 399,996
Average gold grade (grams/tonne) 1.7 1.8 1.9
Average silver grade (grams/tonne) 116 117 149
Average recovery rate – Au 96.2 % 93.9 % 95.2 %
Average recovery rate – Ag 89.6 % 88.8 % 87.4 %
Gold ounces produced 22,918 25,662 23,032
Silver ounces produced 1,475,267 1,565,562 1,680,316
Gold ounces sold 22,935 24,378 22,713
Silver ounces sold 1,468,463 1,508,856 1,636,386
CAS per gold ounce (1)
$ 760 $ 851 $ 885
CAS per silver ounce (1)
$ 23.03 $ 18.22 $ 14.42
(1) See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Gold and silver production decreased 11% and 6%, respectively, as a result of a 6% decrease in mill throughput and lower gold and silver grades, partially offset by higher average gold and silver recoveries. Metal sales were $188 million, or 22% of Coeur’s metal sales, compared with $143 million, or 21% of Coeur’s metal sales. Revenue increased by $46 million, or 32%, of which $53 million was due to higher average realized gold and silver prices, partially offset by $7 million as a result of lower volume of gold and silver production. Costs applicable to sales per gold and silver ounce decreased 11% and increased 26%, respectively, due to the mix of gold and silver sales, which impacted co-product cost allocation, higher labor costs and lower production. Amortization decreased by $2 million to $7 million as a result of lower gold and silver ounces sold. Capital expenditures remained comparable at $9 million as higher underground development expenditures offset lower mining equipment purchases.
Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Gold production remained comparable and silver production decreased 12%, as a result of a decrease in gold and silver grades, partially offset by an increase of 10% in mill throughput and higher average gold and silver recoveries. Metal sales were $188 million, or 22% of Coeur’s metal sales, compared with $96 million, or 27% of Coeur’s metal sales. Revenue increased by $92 million, or 97%, of which $106 million was due to higher gold and silver prices, partially offset by $14 million due to lower volume of gold and silver production. Costs applicable to sales per gold and silver ounce decreased 14% and increased 60%, respectively, due to the mix of gold and silver sales which impacted co-product cost allocation, higher labor and consumable costs, and favorable impact of exchange rates in the first quarter of 2025. Amortization decreased by $2 million to $7 million due to lower silver ounces sold. Capital expenditures increased from $6 million to $9 million due to the higher underground development.
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Rochester, United States
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes placed (1)
6,724,626 9,275,733 6,338,796
Average gold grade (grams/tonne) 0.07 0.08 0.09
Average silver grade (grams/tonne) 12.2 16.7 20.1
Gold ounces produced 14,112 17,722 13,353
Silver ounces produced 1,394,434 1,747,690 1,283,722
Gold ounces sold 14,090 18,043 14,713
Silver ounces sold 1,386,919 1,700,957 1,282,010
CAS per gold ounce (2)
$ 1,451 $ 1,479 $ 1,682
CAS per silver ounce (2)
$ 24.04 $ 19.97 $ 18.55
(1) Includes 6.5 million, 7.0 million and 5.5 million of crushed ore tonnes placed on the new leach pad in the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(2) See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Gold and silver production decreased 20% driven by lower grades and placement rates of crushed and direct-to-pad (“DTP”) material during the quarter affected by hauling of overliner material for the pad expansion. Ore tonnes crushed during the quarter consisted of approximately 5.9 million tonnes (6.5 million tons) through the crushing circuit and 0.8 million tonnes (0.9 million tons) of DTP material. Ore tonnes placed during the quarter totaled 6.7 tonnes (7.4 million tons), a 28% (2.5 million tonnes) decrease from the prior quarter. Metal sales were $181 million, or 21% of Coeur’s metal sales, compared with $168 million, or 25% of Coeur’s metal sales in the prior year period. Revenue increased by $13 million, or 8%, of which $58 million was due to higher average realized gold and silver prices, partially offset by $45 million was due to a lower volume of gold and silver production. Costs applicable to sales per gold and silver ounce decreased 2% and increased 20%, respectively, as a result of the decrease in ore tonnes placed, higher labor and maintenance costs, and the mix of gold and silver sales which impacted co-production cost allocation. Amortization decreased to $16 million due to the decrease in gold and silver ounces sold. Capital expenditures increased to $23 million from $15 million due to equipment purchases and higher capitalized stripping related to the construction of a new open pit.
Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Gold and silver production increased 6% and 9%, respectively, driven by the increased production from the new leach pad driven by higher placement rates in prior quarters. Metal sales were $181 million, or 21% of Coeur’s metal sales, compared with $83 million, or 23% of Coeur’s metal sales in the prior year period. Revenue increased by $99 million, or 120%, of which $93 million was due to higher average realized gold and silver prices and $6 million was attributable to a higher volume of gold and silver production. Costs applicable to sales per gold and silver ounce decreased 14% and increased 30%, respectively, as a result of the increase in tonnes placed on the new leach pad and higher labor, consumable and maintenance costs. Amortization increased to $16 million due to higher gold and silver ounces sold. Capital expenditures increased to $23 million from $15 million due to equipment purchases and higher capitalized stripping related to the construction of a new open pit.
Kensington, United States
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes milled 157,253 178,514 168,142
Average gold grade (grams/tonne) 4.5 5.6 4.5
Average recovery rate 91.2 % 92.7 % 93.3 %
Gold ounces produced 20,525 29,567 22,715
Gold ounces sold 21,267 28,715 22,205
CAS per gold ounce (1)
$ 2,249 $ 1,537 $ 1,897
(1) See Non-GAAP Financial Performance Measures.
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Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Gold production decreased 31% as a result of lower mill throughput and grades. Metal sales were $109 million, or 13% of Coeur’s metal sales, compared to $124 million, or 18% of Coeur’s metal sales in the prior year period. Revenue decreased by $15 million, or 12%, of which $38 million was due to lower volume of gold production, partially offset by $23 million due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 46% as lower freight and royalty costs were more than offset by lower production and higher maintenance costs. Amortization decreased to $9 million primarily due to a decrease in gold ounces sold. Capital expenditures decreased to $9 million due to the timing of expenditure payments.
Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Gold production decreased 10% as a result of lower mill throughput. Metal sales were $109 million, or 13% of Coeur’s metal sales, compared to $65 million, or 18% of Coeur’s metal sales in the prior year period. Revenue increased by $44 million, or 67%, of which $48 million was due to higher average realized gold prices, partially offset by $4 million resulting from lower volume of gold production. Costs applicable to sales per gold ounce increased 19% due to lower production, and higher labor, maintenance and royalty costs, partially offset by lower outside service costs. Amortization increased to $9 million resulting from a higher depletable base. Capital expenditures decreased to $9 million from $15 million due to a decrease in underground development, capitalized exploration and tailings dam expansion expenditures.
Wharf, United States
Three Months Ended
March 31, 2026 December 31, 2025 March 31, 2025
Tonnes placed 366,184 595,737 937,756
Average gold grade (grams/tonne) 1.1 0.9 0.7
Gold ounces produced 9,772 24,759 20,491
Silver ounces produced 15,096 23,169 50,941
Gold ounces sold 9,917 25,318 20,078
Silver ounces sold 14,540 27,370 50,034
CAS per gold ounce (1)
$ 1,591 $ 1,125 $ 1,267
(1) See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Gold production decreased 61% driven by lower material placed on the pads and the timing of recoveries. Ore tonnes placed during the first quarter were impacted by a fire incident at the tertiary crusher in the fourth quarter which occurred during regularly scheduled maintenance. Reduced crushing capacity has been partially offset with temporary crushers and repairs to the conveyor belts and electrical system components in the tertiary crusher. Commissioning of the repaired crusher is complete and is expected to allow a return to normal crushing and placement rates for the balance of 2026. Production is expected to progressively increase throughout the year as permanent crushing capacity is restored. Metal sales were $50 million, or 6% of Coeur’s metal sales, compared to $106 million, or 16% of Coeur’s metal sales in the prior year period. Revenue decreased by $56 million, or 53%, of which $77 million resulted from lower gold production, partially offset by $21 million due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 41% due to lower ore tonnes placed and higher outside service costs, partially offset by lower labor and royalty costs. Amortization decreased to $1 million due to the decrease in gold ounces mined. Capital expenditures increased to $13 million from $4 million as a result of the crusher rebuild.
Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Gold production decreased 52% driven by lower material placed on the pads and the timing of recoveries. Ore tonnes placed during the first quarter were impacted by a fire incident at the tertiary crusher which occurred during regularly scheduled maintenance. Metal sales were $50 million, or 6% of Coeur’s metal sales, compared to $58 million, or 16% of Coeur’s metal sales in the prior year period. Revenue decreased by $9 million, or 15%, of which $53 million was due to lower gold production, partially offset by $44 million attributable to higher average realized gold prices. Costs applicable to sales per gold ounce increased 26% due to lower ore tonnes placed and higher outside service costs, partially offset by lower labor and royalty costs. Amortization decreased to $1 million as a result of lower gold ounces mined. Capital expenditures increased to $13 million from $7 million due to the crusher rebuild.
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Silvertip, Canada
Three Months Ended March 31, 2026 compared to Three Months Ended December 31, 2025
Exploration expenses totaled $9 million in the first quarter of 2026 compared to $5.8 million in the fourth quarter of 2025. Ongoing carrying costs at Silvertip totaled $3 million in both periods. Capital expenditures totaled $2 million in both periods.
Three Months Ended March 31, 2026 compared to Three Months Ended March 31, 2025
Exploration expense totaled $9 million in 2026 as the Company continued to focus on expanding the mineral resources at Silvertip, which were supported by 249 meters of underground mine development. Ongoing carrying costs at Silvertip totaled $3 million in both periods. Capital expenditures totaled $2 million compared to $0.9 million in the prior year period.
Liquidity and Capital Resources
At March 31, 2026, the Company had $846 million of cash, cash equivalents and restricted cash and $1.0 billion available under the RCF. Future borrowing under the RCF may be subject to certain financial covenants. Cash and cash equivalents increased $290 million in the three months ended March 31, 2026 due to $128 million cash acquired in the New Gold Transaction, a 15% and 53% increase in average realized gold and silver prices, respectively, and post-acquisition sales at Rainy River and New Afton. This was partially offset by a 3% and 5% decrease in gold and silver ounces sold, respectively, transaction cost related payments of $30 million, $123 million of income and mining tax payments at Palmarejo and Las Chispas, vesting performance share cash settlement of $72 million, and $74 million of capital expenditures.
We currently believe we have sufficient sources of funding to meet our business requirements for the next twelve months and longer term. We expect to use cash provided by operating activities and the cash acquired through the acquisition of New Gold to fund near term capital requirements, including those described in this 10-Q Report for our 2026 capital expenditure guidance, and to repurchase shares pursuant to the Company’s Expanded Program. Our longer-term plans contemplate continued exploration to extend the mine lives at our operating sites, reduction of debt, and additional investment to progress exploration and study work at the Silvertip project. Our long-term target leverage ratio of Net Debt to the Last Twelve Months Adjusted EBITDA is 0.0 times Adjusted EBITDA . Our current net leverage ratio is (0.1) times Adjusted EBITDA as of March 31, 2026.
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”.
Cash Provided by Operating Activities
Net cash provided by operating activities for the three months ended March 31, 2026 was $341 million, compared to $375 million for the three months ended December 31, 2025 and $68 million for the three months ended March 31, 2025. Adjusted EBITDA for the three months ended March 31, 2026 was $475 million, compared to $424 million for the three months ended December 31, 2025 and $122 million for the three months ended March 31, 2025 (see “Non-GAAP Financial Performance Measures”). Net cash provided by operating activities was impacted by the following key factors for the applicable periods:
Three Months Ended
In thousands March 31, 2026 December 31, 2025 March 31, 2025
Cash flow before changes in operating assets and liabilities $ 444,750 $ 317,566 $ 53,716
Changes in operating assets and liabilities:
Receivables (4,733) 1,265 3,945
Prepaid expenses and other (427) (4,366) 82,065
Inventories (26,803) (24,314) (8,348)
Accounts payable and accrued liabilities (71,951) 84,436 (63,743)
Cash provided by operating activities $ 340,836 $ 374,587 $ 67,635
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Net cash provided by operating activities decreased $34 million for the three months ended March 31, 2026 compared to the three months ended December 31, 2025, primarily due to a 3% and 5% decrease in gold and silver ounces sold, timing of VAT collections at Palmarejo and Las Chispas, income and mining taxes paid at Palmarejo and Las Chispas, debt interest payments, and annual incentive payments. This was partially offset by a 15% and 53% increase in average realized gold and silver prices, respectively, and post-acquisition sales at Rainy River and New Afton. Revenue for the three months ended March 31, 2026 compared to the three months ended December 31, 2025 increased by $181 million, of which $194 million was due to higher average realized gold and silver prices, partially offset by $13 million due to lower volume of gold and silver which was partially offset by the addition of copper sales at New Afton in the current year.
Net cash provided by operating activities increased $273 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to a 21% and 12% increase in gold and silver ounces sold, respectively, a 66% and 159% increase in average realized gold and silver prices, respectively, post-acquisition sales at Rainy River and New Afton, partially offset by higher ore placed on leach pads at Rochester and Wharf, and increased exploration, general and administrative, and income and mining tax expense. Revenue for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 increased by $496 million, of which $354 million was the result of higher average gold and silver prices and $142 million was due to higher volume of gold, silver and copper sales.
Cash Provided by (Used in) Investing Activities
Net cash provided by investing activities in the three months ended March 31, 2026 was $55 million compared to net cash used in investing activities of $61 million in the three months ended December 31, 2025. Cash provided by investing activities increased due to the cash acquired in the New Gold Transaction of $128 million, partially offset by capital expenditures related to the crusher rebuild and post-acquisition capital expenditures at New Gold. The Company incurred capital expenditures of $74 million in the three months ended March 31, 2026 compared with $61 million in the three months ended December 31, 2025 primarily related to the crusher rebuild at Wharf, post-acquisition expenditures at Rainy River, equipment purchases at Rochester, underground development at Palmarejo and Kensington in both periods, expanded tailings impoundment at Kensington and the construction of a water treatment facility at Wharf in the fourth quarter.
Net cash provided by investing activities in the three months ended March 31, 2026 was $55 million compared to $53 million in the three months ended March 31, 2025. Cash provided by investing activities remained comparable as the higher cash acquired in the New Gold Transaction compared to the SilverCrest Transaction was offset by an increase in capital expenditures. The Company incurred capital expenditures of $74 million in the three months ended March 31, 2026 compared with $50 million in the three months ended March 31, 2025.
Cash Used in Financing Activities
Net cash used in financing activities in the three months ended March 31, 2026 was $105 million compared with $26 million in the three months ended December 31, 2025. During the three months ended March 31, 2026, the Company cash settled $41 million of vested performance shares in connection with the Company’s Long-Term Incentive Program, and made cash payments of $54 million in connection with tax withholding on vested share-based compensation. During the three months ended March 31, 2025, the Company repurchased $2 million of common stock in connection with the Company’s Program, and prepaid $26 million in finance leases at Rochester and Kensington.
Net cash used in financing activities in the three months ended March 31, 2026 was $105 million compared to net cash used in financing activities was $98 million in the three months ended March 31, 2025. During the three months ended March 31, 2025, the Company repaid $85 million, net, under the RCF and made cash payments of $6 million in connection with tax withholding on vested share-based compensation.
In April 2026, the Company prepaid $41 million of Rochester finance leases, incurring a loss of $0.8 million related to termination fees.
On May 27, 2025, the Company announced a $75 million share repurchase program (the “Program”), effective through May 31, 2026. Under the Program, repurchases may be carried out from time to time through opportunistic open-market purchases or by other means in amounts and at prices that Coeur deems appropriate, subject to market and business conditions, applicable legal requirements and other considerations. On June 11, 2025, the Company entered into a 10b-18 share repurchase agreement (the “10b-18 Agreement”) and an issuer securities repurchase 10b5-1 plan (the “Company 10b5-1 Plan”) with BMO Capital Markets Corp. as the Company’s broker. On August 8, 2025, the Company and BMO Capital Markets Corp. amended the Company 10b5-1 Plan to modify certain terms of the arrangement (the “First Modified Company 10b5-1 Plan”). On November 12, 2025, the Company and BMO Capital Markets Corp. further amended the First Modified Company 10b5-1 Plan (the “Second Modified Company 10b5-1 Plan”). Pursuant to its terms, the Second Modified Company 10b5-1 Plan terminated on December 12, 2025.
On March 23, 2026, the Company announced an expanded $750 million share repurchase program (the “Expanded
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Program”), which incorporates and supersedes the Company’s previous Program. Under the Expanded Program, repurchases may be carried out from time to time through opportunistic open-market purchases or by other means in amounts and at prices that Coeur deems appropriate, subject to market and business conditions, applicable legal requirements and other considerations.
The following table summarizes repurchases made in the three months ended March 31, 2026:
(a) Total number of shares purchased (b) Average price paid per share (c) Total number of shares purchased as part of publicly announced Program (d) Approximate dollar value of shares that may yet be purchased under the Program (in millions)
January 1, 2026 - January 31, 2026 — $ — — $ 740.4
February 1, 2026 - February 28, 2026 — $ — — $ 740.4
March 1, 2026 - March 31, 2026 — $ — — $ 740.4
Total — $ — —
On March 23, 2026, the Company announced that the Board had approved an updated financial policy, under which Coeur anticipates paying a semi-annual dividend of $0.02 per share of Coeur common shares, beginning in the second and fourth quarter of 2026.
Critical Accounting Policies and Accounting Developments
See Note 2 -- Summary of Significant Accounting Policies contained in the 2025 10-K and Note 2 -- Summary of Significant Accounting Policies contained in this Report for the Company’s critical accounting policies and estimates.
Ore on Leach Pads
The heap leach process extracts silver and gold by placing ore on an impermeable pad and applying a diluted cyanide solution that dissolves a portion of the contained silver and gold, which are then recovered in metallurgical processes.
The Company uses several integrated steps to scientifically measure the metal content of ore placed on the leach pads. As the ore body is drilled in preparation for the blasting process, samples are taken of the drill residue which are assayed to determine estimated quantities of contained metal. The Company then processes the ore through crushing facilities where the output is again weighed and sampled for assaying. A metallurgical reconciliation with the data collected from the mining operation is completed with appropriate adjustments made to previous estimates. The crushed ore is then transported to the leach pad for application of the leaching solution. As the leach solution is collected from the leach pads, it is continuously sampled for assaying. The quantity of leach solution is measured by flow meters throughout the leaching and precipitation process. After precipitation, the product is converted to doré at the Rochester mine and a form of gold electrolytic cathodic sludge at the Wharf mine, representing the final product produced by each mine. The inventory is stated at lower of cost or net realizable value, with cost being determined using a weighted average cost method.
The historical cost of metal expected to be extracted within 12 months is classified as current and the historical cost of metals contained within the broken ore expected to be extracted beyond 12 months is classified as non-current. Ore on leach pads is valued based on actual production costs incurred to produce and place ore on the leach pad, less costs allocated to minerals recovered through the leach process.
The estimate of both the ultimate recovery expected over time and the quantity of metal that may be extracted relative to the time the leach process occurs requires the use of estimates, which are inherently inaccurate due to the nature of the leaching process. The quantities of metal contained in the ore are based upon actual weights and assay analysis. The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than 20 years of leach pad operations at the Rochester mine and 30 years of leach pad operations at the Wharf mine. The assumptions used by the Company to measure metal content during each stage of the inventory conversion process includes estimated recovery rates based on laboratory testing and assaying. The Company periodically reviews its estimates compared to actual experience and revises its estimates when appropriate. The ultimate recovery will not be known until leaching operations cease. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. 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. Updated recoverable ounce estimates are considered a change in estimate and are accounted for
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prospectively. As of March 31, 2026, the Company’s combined estimated recoverable ounces of gold and silver on the leach pads were 54,993 and 9.5 million, respectively.
Goodwill
Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business acquisition. Goodwill is allocated to reporting units and tested for impairment annually as of December 31 and when events or changes in circumstances indicate that the carrying value of a reporting unit exceeds its fair value. The Las Chispas mine is considered a distinct reporting unit for purposes of goodwill impairment testing. Based on the December 31, 2025 review, the Company concluded that Goodwill was not impaired.
The Company may elect to perform a qualitative assessment to determine if it is more likely than not that the fair value exceeds the carrying value. If the Company determines that it is more likely than not that the fair value is less than the carrying value, a quantitative goodwill impairment test is performed to determine the fair value of the reporting unit. The fair value of a reporting unit is determined using either the income approach utilizing estimates of discounted future cash flows or the market approach utilizing recent transaction activity for comparable properties. These approaches are considered Level 3 fair value measurements. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.
Other Liquidity Matters
We believe that our liquidity and capital resources in the U.S. are adequate to fund our U.S. and Canada operations and corporate activities. The Company has asserted a partial indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about, and intentions concerning, the future operations of the Company. The Company does not believe that the amounts reinvested will have a material impact on liquidity.
In order to reduce indebtedness, fund future cash interest payments and/or amounts due at maturity or upon redemption and for general working capital purposes, from time to time we may (1) issue equity securities for cash in public or private offerings or (2) repurchase certain of our debt securities for cash or in exchange for other securities, which may include secured or unsecured notes or equity, in each case in open market or privately negotiated transactions. We evaluate any such transactions in light of prevailing market conditions, liquidity requirements, contractual restrictions, and other factors. The amounts involved may be significant and any debt repurchase transactions may occur at a substantial discount to the debt securities’ face amount.
Non-GAAP Financial Performance Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). Unless otherwise noted, we present the Non-GAAP financial measures in the tables below. These measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Adjusted Net Income
Management uses Adjusted net income to evaluate the Company’s operating performance, and to plan and forecast its operations. The Company believes the use of Adjusted net income reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management’s determination of the components of Adjusted net income is evaluated periodically and is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. Adjusted net income is reconciled to Net income in the following table:
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Three Months Ended
In thousands except per share amounts March 31, 2026 December 31, 2025 March 31, 2025
Net income $ 246,761 $ 214,969 $ 33,353
Fair value adjustments, net — — 346
Foreign exchange loss (gain) (2,600) 1,563 574
Loss on sale of assets 25 282 186
(Gain) loss on debt extinguishment 1,554 107 —
Transaction costs 19,910 14,248 8,887
Kensington royalty settlement — 1 (95)
Wage and Hour Litigation settlement (517) 61 —
Mexico arbitration matter 95 57 410
Flow-through share premium — — (585)
Interest income (6,225) — —
Valuation allowance and tax effect of adjustments (1)
(5,506) (3,992) (2,590)
Adjusted net income $ 253,497 $ 227,296 $ 40,486
Adjusted net income per share, Basic $ 0.37 $ 0.36 $ 0.08
Adjusted net income per share, Diluted $ 0.36 $ 0.35 $ 0.08
(1) F or the three months ended March 31, 2026, tax effect of adjustments of $6 million (37.1%) are primarily related to the Transaction costs at Corporate. For the three months ended December 31, 2025, tax effect of adjustments of $4 million (27.1%) is primarily related to Transaction costs at Corporate and nonrecurring expenses at Palmarejo. F or the three months ended March 31, 2025, tax effect of adjustments of $3 million (29.4%) are primarily related to the Transaction costs at Corporate.
EBITDA and Adjusted EBITDA
Management uses EBITDA to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company believes the use of EBITDA reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Adjusted EBITDA is the basis of a measure used in the indenture governing the 2029 Senior Notes, 2032 Senior Notes, and the RCF to determine our ability to make certain payments and incur additional indebtedness. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income or Cash Flow from Operations as determined under GAAP. Other companies may calculate Adjusted EBITDA differently and those calculations may not be comparable to our presentation. Adjusted EBITDA is reconciled to Net income in the following table:
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Three Months Ended
In thousands March 31, 2026 December 31, 2025 March 31, 2025
Net income $ 246,761 $ 214,969 $ 33,353
Interest expense, net of capitalized interest 6,443 5,968 10,450
Income tax provision 101,954 112,539 18,413
Amortization 99,825 73,655 43,093
EBITDA 454,983 407,131 105,309
Fair value adjustments, net — — 346
Foreign exchange (gain) loss (878) (4,021) 758
Asset retirement obligation accretion 4,839 5,077 4,732
Inventory adjustments and write-downs 1,097 1,541 1,928
Loss on sale of assets 25 282 186
(Gain) loss on debt extinguishment 1,554 107 —
Kensington royalty settlement — 1 (95)
Wage and Hour Litigation settlement (517) 61 —
Mexico arbitration matter 95 57 410
Flow-through share premium — — (585)
Interest income (6,225) — —
Transaction costs 19,910 14,248 8,887
Adjusted EBITDA $ 474,883 $ 424,484 $ 121,876
Free Cash Flow
Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Cash Provided By Operating Activities less Capital expenditures as presented on the Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.
The following table sets forth a reconciliation of Free Cash Flow , a non-GAAP financial measure, to Cash Provided By 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, 2026 December 31, 2025 March 31, 2025
Cash provided by operating activities $ 340,836 $ 374,587 $ 67,635
Capital expenditures 74,079 61,319 50,002
Free cash flow $ 266,757 $ 313,268 $ 17,633
Operating Cash Flow Before Changes in Working Capital
Management uses Operating Cash Flow Before Changes in Working Capital as a non-GAAP measure to analyze cash flows generated from operations. Operating Cash Flow Before Changes in Working Capital is Cash Provided By Operating Activities excluding the change in Receivables , Prepaid expenses and other , Inventories and Accounts payable and accrued liabilities as presented on the Consolidated Statements of Cash Flows. The Company believes Operating Cash Flow Before Changes in Working Capital is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Operating Cash Flow Before Changes in Working Capital and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Operating Cash Flow Before Changes in Working Capital is not necessarily comparable to such other similarly titled captions of other companies.
The following table sets forth a reconciliation of Operating Cash Flow Before Changes in Working Capital , a non-GAAP financial measure, to Cash Provided By Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Operating Cash Flow Before Changes in Working Capital.
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Three Months Ended
(Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025
Cash provided by operating activities $ 340,836 $ 374,587 $ 67,635
Changes in operating assets and liabilities:
Receivables 4,733 (1,265) (3,945)
Prepaid expenses and other 427 4,366 (82,065)
Inventories 26,803 24,314 8,348
Accounts payable and accrued liabilities 71,951 (84,436) 63,743
Operating cash flow before changes in working capital $ 444,750 $ 317,566 $ 53,716
Net Debt and Leverage Ratio
Management defines Net Debt , a non-GAAP financial measure, as Total Debt less Cash and Cash Equivalents . We define Leverage Ratio , a non-GAAP financial measure, as the ratio of Net Debt to the Last Twelve Months Adjusted EBITDA . Management believes Net Debt and Leverage Ratio are important measures to monitor our financial flexibility and evaluate the strength of our Consolidated Balance Sheets. Net Debt and Leverage Ratio have limitations as analytical tools and may vary from similarly titled measures used by other companies. Net Debt and Leverage Ratio should not be considered in isolation or as a substitute for an analysis of our results prepared and presented in accordance with GAAP.
The following table presents a reconciliation of Total Debt , the most directly comparable financial measure calculated in accordance with GAAP, to Net Debt for each of the periods presented.
Three Months Ended
(Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025
Total debt $ 761,376 $ 340,533 $ 498,269
Cash and cash equivalents (843,169) (553,597) (77,574)
Net (cash) debt $ (81,793) $ (213,064) $ 420,695
Net (cash) debt $ (81,793) $ (213,064) $ 420,695
Last Twelve Months Adjusted EBITDA $ 1,378,779 $ 1,025,769 $ 443,729
Net Leverage ratio (0.1) (0.2) 0.9
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Costs Applicable to Sales
Management uses CAS to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation. We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold, silver and copper, as well as assessing our operating performance and ability to generate free cash flow from operations and sustaining production. These measures may not be indicative of operating profit or cash flow from operations as determined under GAAP. Management believes that allocating CAS to gold, silver and copper based on gold, silver and copper 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 IFRS Accounting Standards.
Three Months Ended March 31, 2026
In thousands (except metal sales and per ounce amounts) New Afton (1)
Rainy River (2)
Las Chispas Palmarejo Rochester Kensington Wharf Silvertip Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 50,453 $ 109,133 $ 66,777 $ 58,037 $ 69,826 $ 56,482 $ 17,917 $ 956 $ 429,581
Amortization (14,214) (16,689) (35,319) (6,789) (16,043) (8,669) (893) (956) (99,572)
Costs applicable to sales $ 36,239 $ 92,444 $ 31,458 $ 51,248 $ 53,783 $ 47,813 $ 17,024 $ — $ 330,009
Metal Sales
Gold ounces 3,906 21,407 14,898 22,935 14,090 21,267 9,917 — 108,420
Silver ounces 9,132 31,990 1,460,512 1,468,463 1,386,919 — 14,540 — 4,371,556
Copper pounds 3,385,075 — — — — — — — 3,385,075
Costs applicable to sales
Gold ($/oz) $ 4,488 $ 4,215 $ 781 $ 760 $ 1,451 $ 2,249 $ 1,591
Silver ($/oz) $ 13.57 $ 23.03 $ 24.04
Copper ($/lb) $ 5.36
(1) Includes the impact of the preliminary purchase price allocation ascribed to Inventory of $21 million.
(2) Includes the impact of the preliminary purchase price allocation ascribed to Inventory of $65 million.
Three Months Ended December 31, 2025
In thousands (except metal sales and per ounce amounts) Las Chispas (1)
Palmarejo Rochester Kensington Wharf Silvertip Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 65,377 $ 56,553 $ 79,791 $ 55,272 $ 31,745 $ 1,040 $ 289,778
Amortization (31,995) (8,312) (19,127) (11,167) (1,774) (1,040) (73,415)
Costs applicable to sales $ 33,382 $ 48,241 $ 60,664 $ 44,105 $ 29,971 $ — $ 216,363
Metal Sales
Gold ounces 14,819 24,378 18,043 28,715 25,318 — 111,273
Silver ounces 1,367,427 1,508,856 1,700,957 — 27,370 — 4,604,610
Costs applicable to sales
Gold ($/oz) $ 1,014 $ 851 $ 1,479 $ 1,537 $ 1,125
Silver ($/oz) $ 13.43 $ 18.22 $ 19.97
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(1) Includes the impact of the preliminary purchase price allocation ascribed to Inventory of $3 million.
Three Months Ended March 31, 2025
In thousands (except metal sales and per ounce amounts) Las Chispas (1)
Palmarejo Rochester Kensington Wharf Silvertip Total
Costs applicable to sales, including amortization (U.S. GAAP) $ 51,770 $ 52,884 $ 63,443 $ 49,627 $ 28,511 $ 946 $ 247,181
Amortization (8,936) (9,181) (14,907) (7,471) (1,474) (946) (42,915)
Costs applicable to sales $ 42,834 $ 43,703 $ 48,536 $ 42,156 $ 27,037 $ — $ 204,266
Metal Sales
Gold ounces 9,607 22,713 14,713 22,205 20,078 — 89,316
Silver ounces 923,723 1,636,386 1,282,010 — 50,034 — 3,892,153
Costs applicable to sales
Gold ($/oz) $ 2,140 $ 885 $ 1,682 $ 1,897 $ 1,267
Silver ($/oz) $ 24.11 $ 14.42 $ 18.55
(1) Includes the impact of the preliminary purchase price allocation ascribed to Inventory of $27 million.
Reconciliation of Costs Applicable to Sales for 2026 Guidance
In thousands (except metal sales and per ounce amounts) New Afton Rainy River Las Chispas Palmarejo Rochester Kensington Wharf
Costs applicable to sales, including amortization (U.S. GAAP) $ 723,147 $ 930,884 $ 397,764 $ 161,390 $ 365,418 $ 233,583 $ 142,683
Amortization (557,321) (309,164) (174,548) (36,491) (88,753) (41,722) (8,965)
Costs applicable to sales $ 165,826 $ 621,720 $ 223,216 $ 124,899 $ 276,665 $ 191,861 $ 133,718
By-product credit (14,325) (26,950) — — — — (6,132)
Adjusted costs applicable to sales $ 151,501 $ 594,770 $ 223,216 $ 124,899 $ 276,665 $ 191,861 $ 127,586
Metal Sales
Gold ounces 70,071 267,315 59,521 100,000 81,143 105,137 86,868
Silver ounces 187,153 664,427 5,934,277 6,796,223 7,136,315 79,401
Copper pounds 57,921,066
Revenue Split
Gold 53% 100% 34% 37% 40% 100% 100%
Silver 66% 63% 60%
Copper 47%
Adjusted costs applicable to sales
Gold ($/oz) $1,000-$1,200 $2,150 - $2,350 $750 - $950 $700 - $900 $1,350 - $1,550 $1,750 - $1,950 $1,400 - $1,600
Silver ($/oz) $12.50 - $14.50 $21.50 - $23.50 $23.00 - $23.50
Copper ($lb) $1.20 - $1.35
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Cautionary Statement Concerning Forward-Looking Statements
This Report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold, silver and copper mining business, including statements regarding operations and activities at the Company’s properties, exploration and development efforts, mine lives, strategies, inflation, hedging strategies, tax rates and treatment, realization of deferred tax assets, expectations about the recovery of unduly paid VAT in Mexico, the Franco-Nevada Gold Stream Agreement at Palmarejo, liquidity management, financing plans, risk management strategies, capital allocation, and anticipated production, costs, expenses, and cash flow. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in “Risk Factors” section of the 2025 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold, silver, copper, lead and zinc and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of a future pandemic, equipment and materials availability, inflationary pressures, changes in applicable tax laws or regulatory interpretations and impacts from tariffs or other trade barriers (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, (xii) breaches or lapses in the security of technology systems on which the Company relies, which could compromise the data stored within them, as well as failure to comply with ever-evolving global privacy and security regulatory obligations, and (xiii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.