UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
___________________________________________ 
FORM 10-Q

þQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 20172018
OR
 ¨   
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from             to             
Commission file number 001-08641
____________________________________________ 
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COEUR MINING, INC.
(Exact name of registrant as specified in its charter)

Delaware 82-0109423
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
  
104 S. Michigan Ave., Suite 900 Chicago, Illinois 60603
(Address of principal executive offices) (Zip Code)
(312) 489-5800
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer þAccelerated filer 
¨   
    
Non-accelerated filer 
¨   
Smaller reporting company 
¨   
      
   Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ
The Company has 300,000,000 shares of common stock, par value of $0.01, authorized of which 181,449,038186,116,975 shares were issued and outstanding as of April 24, 2017.23, 2018.

COEUR MINING, INC.
INDEX
  Page
Part I.
Financial Information
 
   
 
Item 1. Financial Statements
 
   
 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
3
   
 Condensed Consolidated Statements of Cash Flows (Unaudited)
4
   
 Condensed Consolidated Balance Sheets
5
   
 Condensed Consolidated Statement of Changes in Stockholders’ Equity
6
   
 Notes to Condensed Consolidated Financial Statements (Unaudited)
7
   
 
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2531
   
 Consolidated Financial Results
2633
   
 Results of Operations
2834
   
 Liquidity and Capital Resources
3137
   
 Non-GAAP Financial Performance Measures
3339
   
 
Item 3. Quantitative and Qualitative Disclosures about Market Risk
3743
   
 
Item 4. Controls and Procedures
3845
   
Part II.
Other Information
3845
   
 
Item 1. Legal Proceedings
3845
   
 
Item 1A. Risk Factors
3845
   
 
Item 4. Mine Safety Disclosures
3846
   
 Item 5. Other Information
3846
   
 
Item 6. Exhibits
3947
   
Signatures
3947



PART I
Item 1.Financial Statements

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
 
 Three months ended March 31, Three months ended March 31,
 2017 2016 2018 2017
NotesIn thousands, except share dataNotesIn thousands, except share data
Revenue3$206,138
 $148,387
3$163,267
 $185,554
COSTS AND EXPENSES        
Costs applicable to sales(1)
3132,712
 101,555
399,340
 114,490
Amortization 40,104
 27,964
 30,777
 38,693
General and administrative 10,133
 8,276
 8,804
 10,125
Exploration 5,252
 1,731
 6,683
 5,252
Write-downs —
 4,446
Pre-development, reclamation, and other 4,581
 4,204
 4,225
 3,837
Total costs and expenses 192,782
 148,176
 149,829
 172,397
OTHER INCOME (EXPENSE), NET        
Fair value adjustments, net10(1,200) (8,695)104,987
 (1,200)
Interest expense, net of capitalized interest17(3,586) (11,120)18(5,965) (3,579)
Other, net721,139
 1,314
7180
 20,799
Total other income (expense), net 16,353
 (18,501) (798) 16,020
Income (loss) before income and mining taxes 29,709
 (18,290) 12,640
 29,177
Income and mining tax (expense) benefit8(11,046) (2,106)8(11,949) (10,878)
Income (loss) from continuing operations $691
 $18,299
Income (loss) from discontinued operations21550
 364
NET INCOME (LOSS) $18,663
 $(20,396) $1,241
 $18,663
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:        
Unrealized gain (loss) on equity securities, net of tax of ($1,101) for the three months ended March 31, 2016 (2,182) 1,043
Unrealized gain (loss) on debt and equity securities (278) (2,182)
Reclassification adjustments for impairment of equity securities 121
 —
 —
 121
Reclassification adjustments for realized (gain) loss on sale of equity securities 1,471
 588
 —
 1,471
Other comprehensive income (loss) (590) 1,631
 (278) (590)
COMPREHENSIVE INCOME (LOSS) $18,073
 $(18,765) $963
 $18,073
        
NET INCOME (LOSS) PER SHARE9   9   
Basic $0.10
 $(0.14)
    
Diluted $0.10
 $(0.14)
Basic income (loss) per share:    
Net income (loss) from continuing operations $0.00
 $0.10
Net income (loss) from discontinued operations 0.00
 0.00
Basic(2)
 $0.01
 $0.10
Diluted income (loss) per share:    
Net income (loss) from continuing operations $0.00
 $0.10
Net income (loss) from discontinued operations 0.00
 0.00
Diluted(2)
 $0.01
 $0.10
(1) Excludes amortization.
(2) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.
The accompanying notes are an integral part of these condensed consolidated financial statements.


COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three months ended March 31, Three months ended March 31,
 2017 2016 2018 2017
NotesIn thousandsNotesIn thousands
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income (loss) $18,663
 (20,396) $1,241
 $18,663
(Income) loss from discontinued operations (550) (364)
Adjustments:        
Amortization 40,104
 27,964
 30,777
 38,693
Accretion 2,514
 3,169
 3,318
 2,240
Deferred income taxes 1,375
 (2,105)
Deferred taxes 454
 2,584
Fair value adjustments, net101,200
 8,695
10(4,987) 1,200
Stock-based compensation53,307
 2,915
52,786
 3,307
Gain on sale of the Joaquin project (21,138) —
 —
 (21,138)
Write-downs —
 4,446
Other (2,198) (1,435) 401
 (1,895)
Changes in operating assets and liabilities:        
Receivables 13,106
 3,481
 (1,691) 5,680
Prepaid expenses and other current assets (4,299) 1,279
 (5,635) (4,906)
Inventory and ore on leach pads 14,292
 (7,822) (8,708) 15,171
Accounts payable and accrued liabilities (11,655) (13,574) (1,865) (15,299)
CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING OPERATIONS 15,541
 43,936
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS (2,690) 11,335
CASH PROVIDED BY OPERATING ACTIVITIES 55,271
 6,617
 12,851
 55,271
CASH FLOWS FROM INVESTING ACTIVITIES:        
Capital expenditures (23,979) (22,172) (42,345) (23,591)
Proceeds from the sale of assets 15,019
 4,009
 60
 15,019
Purchase of investments (1,016) (7) (361) (1,016)
Sale of investments 10,020
 997
 1,619
 10,020
Other (1,546) (1,473) (65) (14)
CASH USED IN INVESTING ACTIVITIES (1,502) (18,646)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS (41,092) 418
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS (28,470) (388)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (69,562) 30
CASH FLOWS FROM FINANCING ACTIVITIES:        
Issuance of notes and bank borrowings, net of issuance costs1815,000
 —
Payments on debt, capital leases, and associated costs (3,226) (5,971)18(18,449) (3,206)
Gold production royalty payments —
 (9,131)
Other (3,247) (280) (4,606) (3,247)
CASH USED IN FINANCING ACTIVITIES (6,473) (15,382)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS (8,055) (6,453)
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS (22) (20)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (8,077) (6,473)
Effect of exchange rate changes on cash and cash equivalents 555
 86
 557
 555
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 47,851

(27,325)
Cash and cash equivalents at beginning of period 162,182
 200,714
Cash and cash equivalents at end of period $210,033
 $173,389
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (64,231) 49,383
Less net cash provided by (used in) discontinued operations(1)
 (32,930) 5,527
 (31,301) 43,856
Cash, cash equivalents and restricted cash at beginning of period 203,402
 126,601
Cash, cash equivalents and restricted cash at end of period $172,101
 $170,457
(1)Less net cash provided by (used in) discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748 and $5,400 during the three months ended March 31, 2018 and 2017, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 March 31, 2017 (Unaudited) December 31, 2016 March 31, 2018 (unaudited) December 31, 2017
ASSETSNotesIn thousands, except share dataNotesIn thousands, except share data
CURRENT ASSETS        
Cash and cash equivalents $210,033
 $162,182
 $159,643
 $192,032
Receivables1367,064
 60,431
1435,864
 19,069
Inventory1473,760
 106,026
1561,723
 58,230
Ore on leach pads1466,585
 64,167
1575,584
 73,752
Prepaid expenses and other 22,450
 17,981
 18,203
 15,053
Assets held for sale21—
 91,421
 439,892
 410,787
 351,017
 449,557
NON-CURRENT ASSETS        
Property, plant and equipment, net15222,617
 216,796
16266,157
 254,737
Mining properties, net16549,207
 558,455
17843,821
 829,569
Ore on leach pads1472,461
 67,231
1567,430
 65,393
Restricted assets1218,954
 17,597
1322,116
 20,847
Equity securities123,796
 4,488
Equity and debt securities1337,317
 34,837
Receivables1315,558
 30,951
1455,428
 28,750
Other 15,265
 12,604
 18,649
 17,485
TOTAL ASSETS $1,337,750
 $1,318,909
 $1,661,935
 $1,701,175
LIABILITIES AND STOCKHOLDERS’ EQUITY        
CURRENT LIABILITIES        
Accounts payable $47,370
 $53,335
 $44,864
 $48,592
Accrued liabilities and other 37,999
 42,743
22105,149
 94,930
Debt1713,451
 12,039
1817,040
 30,753
Royalty obligations104,961
 4,995
Reclamation43,604
 3,522
43,777
 3,777
Liabilities held for sale21—
 50,677
 107,385
 116,634
 170,830
 228,729
NON-CURRENT LIABILITIES        
Debt17205,625
 198,857
18396,984
 380,569
Royalty obligations104,316
 4,292
Reclamation497,595
 95,804
4119,154
 117,055
Deferred tax liabilities 76,363
 74,798
 105,224
 105,148
Other long-term liabilities 59,846
 60,037
 55,432
 54,697
 443,745
 433,788
 676,794
 657,469
STOCKHOLDERS’ EQUITY        
Common stock, par value $0.01 per share; authorized 300,000,000 shares, issued and outstanding 181,492,911 at March 31, 2017 and 180,933,287 at December 31, 2016 1,815
 1,809
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 186,176,237 issued and outstanding at March 31, 2018 and 185,637,724 at December 31, 2017 1,862
 1,856
Additional paid-in capital 3,314,644
 3,314,590
 3,355,710
 3,357,345
Accumulated other comprehensive income (loss) (3,078) (2,488) (363) 2,519
Accumulated deficit (2,526,761) (2,545,424) (2,542,898) (2,546,743)
 786,620
 768,487
 814,311
 814,977
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,337,750
 $1,318,909
 $1,661,935
 $1,701,175

The accompanying notes are an integral part of these condensed consolidated financial statements.


COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
In thousands
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Balances at December 31, 2016180,933
 $1,809
 $3,314,590
 $(2,545,424) $(2,488) $768,487
Balances at December 31, 2017185,638
 $1,856
 $3,357,345
 $(2,546,743) $2,519
 $814,977
Net income (loss)—
 —
 —
 18,663
 —
 18,663
—
 —
 —
 1,241
 —
 1,241
Reclassification of unrealized gain (loss) on equity securities for ASU 2016-01—
 —
 —
 2,604
 (2,604) —
Other comprehensive income (loss)—
 —
 —
 —
 (590) (590)—
 —
 —
 —
 (278) (278)
Common stock issued under stock-based compensation plans, net560
 6
 54
 —
 —
 60
538
 6
 (1,635) —
 —
 (1,629)
Balances at March 31, 2017 (Unaudited)181,493
 $1,815
 $3,314,644
 $(2,526,761) $(3,078) $786,620
Balances at March 31, 2018 (Unaudited)186,176
 $1,862
 $3,355,710
 $(2,542,898) $(363) $814,311
The accompanying notes are an integral part of these condensed consolidated financial statements.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed 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, 2017.2018. The condensed consolidated December 31, 20162017 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, 20162017 (the “2016“2017 10-K”).

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition
On January 1, 2018, the Company adopted the updated revenue guidance applicable under ASC 606 - Revenue from Contracts with Customers. The new guidance creates a five-step framework to determine revenue recognition:

1.Identify the contract with the customer
2.Identify the performance obligations
3.Determine the transaction price
4.Allocate the transaction price to the performance obligations
5.Recognize revenue when (or as) the entity satisfies a performance obligation
The Company produces doré and concentrate that is shipped to third-party refiners and smelters, respectively, for processing. The Company enters into contracts to sell its metal to various third-party customers which may include the refiners and smelters that process the doré and concentrate. The Company’s performance obligation in these transactions is generally the transfer of metal to the customer.

In the case of doré shipments, the company generally sells refined metal at market prices agreed upon by both parties. The Company also has the right, but not the obligation, to sell a portion of the anticipated refined metal in advance of being fully refined. When the Company sells refined metal or advanced metal, the performance obligation is satisfied when the metal is delivered to the customer. Revenue and Costs Applicable to Sales are recorded on a gross basis under these contracts at the time the performance obligation is satisfied.

Under the Company’s concentrate sales contracts with third-party smelters, metal prices are set on a specified future quotational period, typically one to three months, after the shipment date based on market prices. When the Company sells gold concentrate to the third-party smelters, the performance obligation is satisfied when the concentrate is loaded onto the third-party shipping vessel. The contracts, in general, provide for provisional payment based upon provisional assays and historical metal prices. Final settlement is based on the applicable price for the specified future quotational period and generally occurs three to six months after shipment. The Company’s provisionally priced sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of concentrates measured at the forward price at the time of sale. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through revenue each period until the date of final metal settlement.

The Company also sells concentrate under off-take agreements to third-party customers that are responsible for arranging the smelting of the concentrate. Prices are can either be fixed or based on a quotational period. The quotational period varies by contract, but is generally a one-month period following the shipment of the concentrate. The performance obligation is satisfied when the concentrate is loaded onto the third-party shipping vessel. The off-take agreement allows for the Company to sell concentrate in advance of shipment and results in the customer taking ownership of the concentrate prior to shipment.

For doré and off-take sales, the Company may incur a finance charge related to advance sales that is not considered significant and, as such, is not considered a separate performance obligation. In addition, the Company has elected to treat freight costs as a fulfillment cost under ASC 606 and not as a separate performance obligation.

The Company’s streaming agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) commenced in 2016 with a $20.0 million deposit paid by Franco-Nevada in exchange for the right and obligation to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with this deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

streaming 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 following table presents a rollforward of the Franco-Nevada contract liability balance:
 Three months ended March 31,
In thousands2018 2017
Opening Balance$14,883
 $19,281
Revenue Recognized(543) $(1,629)
Closing Balance$14,340
 $17,652

Recent Accounting Standards

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business,” which clarifies the definition of a business to assist entities in the evaluation of acquisitions and disposals of assets or businesses. These changes becomebecame effective for the Company’s fiscal year beginning January 1, 2018. The Company is currently evaluating the potential2018 and did not materially impact of implementing these changes on the Company’s consolidated net income, financial position results of operations, andor cash flows.
In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash,” which will require entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. These changes becomebecame effective for the Company’s fiscal year beginning January 1, 2018. The Company is currently evaluating2018 and resulted in the potential impactinclusion of implementing these changesrestricted cash equivalents on the Company’s consolidated financial position, resultsConsolidated Statements of operations,Cash Flows of $12.5 million at March 31, 2018 and cash flows.$9.8 million at March 31, 2017.
In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on presentation and classification of certain cash receipts and payments in the statement of cash flows. These changes become effective for the Company’s fiscal year beginning January 1, 2018. The Company is currently evaluating this standard and does not expect this ASU to materially impact the Company’s consolidated net income, financial position or cash flows.
In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transaction, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These changes became effective for the Company’s fiscal year beginning January 1, 2017,2018 and the Company’s adoption had nodid not materially impact on the Company’s consolidated net income, financial position results of operations, andor cash flows.
In February 2016, the FASB issued ASU 2016-02, “Leases,” which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company’s fiscal year beginning January 1, 2019. Modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, is required with an option to use certain transition relief. The Company is currently evaluating the potential impact of implementing these changes on the Company’s consolidated financial position, results of operations, and cash flows.
In May 2014,January 2016, the FASB issued ASU 2014-09,2016-01, “Revenue from Contracts with CustomersRecognition and Measurement of Financial Assets and Financial Liabilities,”, which has subsequently been amended several times. Therequires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new standard provides a five-step approach to be applied to all contracts with customers andguidance also requires expanded disclosures about revenue recognition.updates certain disclosure requirements for these investments. These changes becomebecame effective for the Company’s fiscal year beginning January 1, 2018. The Company has substantially completed its analysis2018, and resulted in a reclassification of $2.6 million of unrealized holding gains and losses and deferred income taxes related to investments in equity securities from Accumulated other comprehensive income (loss) to Accumulated deficit in the new standardConsolidated Balance Sheets on that date. Unrealized holding gains and reviewed potential impacts from timinglosses related to investments in equity securities are now recognized in Fair value adjustments, net in the Consolidated Statements of when control is transferred to customers, variable consideration on concentrate sales and classification of refining fees.  The Company does not expect this ASU to materially impact the Company’s consolidated net income, financial position or cash flows.    Comprehensive Income (Loss).
In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which provides a revised, simpler measurement for inventory to be measured at the lower of cost and net realizable value. These changes becomebecame effective for the Company’s fiscal year beginning January 1, 2018. The Company is currently evaluating the potential2018 and did not materially impact of implementing these changes on the Company’s consolidated net income, financial position results of operations, andor cash flows.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, which has subsequently been amended several times, to update revenue guidance under the newly-created ASC 606. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. These changes became effective under the modified retrospective method of adoption for the Company’s fiscal year beginning January 1, 2018 and did not materially impact the Company’s consolidated net income, financial position or cash flows.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 3 – SEGMENT REPORTING
The Company’s operating segments include the Palmarejo complex, and the Rochester, Kensington, Wharf and San BartoloméSilvertip mines. AllExcept for the Silvertip mine, which was acquired in the fourth quarter of 2017, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. Silvertip is engaged in the discovery, mining, and production of silver, zinc and lead. Other includes the Endeavor silver stream, La Preciosa project, other royalties and mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.
The Company eliminated Coeur Capital asdetermined that the disposition of Empresa Minera Manquiri S.A., a standalone reportable segment inBolivian Sociedad anonima (“Manquiri”), which operates the first quarter of 2017San Bartolomé mine, represents a strategic shift to a North America-focused mining portfolio and has classifieda significant effect on the operating performance, segment assets,entity's results and capital expendituresoperations; therefore, the results of the Endeavor silver stream and other remaining non-core assets in Other. All prior period amounts have been adjusted to conform to the current presentation.operations are presented as discontinued operations for all periods presented.
Financial information relating to the Company’s segments is as follows (in thousands):
Three months ended March 31, 2017Palmarejo Rochester Kensington Wharf San Bartolomé Other Total
Three months ended March 31, 2018Palmarejo Rochester Silvertip Kensington Wharf Other Total
Revenue                          
Metal sales$77,704
 $38,979
 $37,964
 $30,251
 $20,584
 $656
 $206,138
$70,037
 $33,497
 $—
 $36,300
 $23,433
 $—
 $163,267
Costs and Expenses            

            

Costs applicable to sales(1)
43,001
 26,439
 28,443
 16,320
 18,222
 287
 132,712
31,096
 24,305
 —
 28,630
 15,309
 —
 99,340
Amortization20,150
 5,816
 9,178
 3,111
 1,411
 438
 40,104
16,325
 4,831
 —
 6,717
 2,657
 247
 30,777
Exploration1,631
 144
 839
 —
 —
 2,638
 5,252
3,970
 33
 —
 1,590
 10
 1,080
 6,683
Other operating expenses301
 810
 345
 619
 752
 11,887
 14,714
731
 884
 20
 321
 665
 10,408
 13,029
Other income (expense)                          
Fair value adjustments, net—
 (1,200) —
 —
 —
 —
 (1,200)—
 —
 —
 —
 —
 4,987
 4,987
Interest expense, net(125) (117) (40) (19) (7) (3,278) (3,586)(119) (98) (410) (243) (12) (5,083) (5,965)
Other, net1,794
 (32) (808) 89
 279
 19,817
 21,139
(2,144) (40) 362
 (37) (21) 2,060
 180
Income and mining tax (expense) benefit(12,245) (498) —
 (957) (31) 2,685
 (11,046)(12,443) (371) 835
 —
 (639) 669
 (11,949)
Net income (loss)$2,045

$3,923

$(1,689)
$9,314

$440

$4,630

$18,663
Income (loss) from continuing operations$3,209

$2,935
 $767

$(1,238)
$4,120

$(9,102)
$691
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $—
 $550
 $550
Segment assets(2)
$401,623
 $227,526
 $204,987
 $104,673
 $68,412
 $84,402
 $1,091,623
$377,146
 $245,881
 $361,212
 $215,244
 $104,805
 $119,922
 $1,424,210
Capital expenditures$6,230
 $10,568
 $5,521
 $887
 $388
 $385
 $23,979
$9,293
 $2,633
 $18,629
 $11,364
 $344
 $82
 $42,345
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests


Three months ended March 31, 2016Palmarejo Rochester Kensington Wharf San Bartolomé Other Total
Three months ended March 31, 2017Palmarejo Rochester Kensington Wharf Other Total
Revenue                        
Metal sales$29,813
 $29,982
 $35,743
 $27,929
 $21,278
 $1,891
 $146,636
$77,704
 $38,979
 $37,964
 $30,251
 $656
 $185,554
Royalties—
 —
 —
 —
 —
 1,751
 1,751
29,813

29,982

35,743

27,929

21,278

3,642
 148,387
Costs and Expenses                        
Costs applicable to sales(1)
21,038
 22,485
 24,418
 15,461
 17,497
 656
 101,555
43,001
 26,439
 28,443
 16,320
 287
 114,490
Amortization7,289
 5,313
 8,349
 4,051
 1,754
 1,208
 27,964
20,150
 5,816
 9,178
 3,111
 438
 38,693
Exploration801
 109
 (47) —
 —
 868
 1,731
1,631
 144
 839
 —
 2,638
 5,252
Write-downs—
 —
 —
 —
 —
 4,446
 4,446
Other operating expenses315
 681
 252
 493
 291
 10,448
 12,480
301
 810
 345
 619
 11,887
 13,962
Other income (expense)          

          

  
Fair value adjustments, net(4,864) (2,249) —
 —
 —
 (1,582) (8,695)—
 (1,200) —
 —
 —
 (1,200)
Interest expense, net(734) (171) (43) —
 (3) (10,169) (11,120)(125) (117) (40) (19) (3,278) (3,579)
Other, net(1,235) 3
 (20) 10
 315
 2,241
 1,314
1,794
 (32) (808) 89
 19,756
 20,799
Income and mining tax (expense) benefit98
 (423) —
 116
 (1,571) (326) (2,106)(12,245) (498) —
 (957) 2,822
 (10,878)
Net income (loss)$(6,365)
$(1,446)
$2,708

$8,050

$477

$(23,820) $(20,396)
Income (loss) from continuing operations$2,045

$3,923

$(1,689)
$9,314

$4,706
 $18,299
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $364
 $364
Segment assets(2)
$422,086
 $209,692
 $192,805
 $113,383
 $87,750
 $92,224
 $1,117,940
$401,623
 $227,526
 $204,987
 $104,673
 $84,402
 $1,023,211
Capital expenditures$8,815
 $3,289
 $8,090
 $1,410
 $521
 $47
 $22,172
$6,230
 $10,568
 $5,521
 $887
 $385
 $23,591
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

AssetsMarch 31, 2017
December 31, 2016March 31, 2018
December 31, 2017
Total assets for reportable segments$1,091,623
 $1,122,038
$1,424,210
 $1,344,553
Cash and cash equivalents210,033
 162,182
159,643
 192,032
Other assets36,094

34,689
78,082

164,590
Total consolidated assets$1,337,750

$1,318,909
$1,661,935

$1,701,175


Geographic Information
Long-Lived AssetsMarch 31, 2017
December 31, 2016March 31, 2018
December 31, 2017
Mexico$376,890
 $397,697
$364,047
 $370,188
United States355,736
 338,897
384,578
 377,768
Bolivia32,422
 31,539
Australia2,871
 2,983
Argentina227
 10,228
Canada350,556
 331,440
Other5,601
 5,564
10,797
 4,910
Total$773,747

$786,908
$1,109,978

$1,084,306
 
RevenueThree months ended March 31,Three months ended March 31,
2017 20162018 2017
United States$107,194
 $93,654
$93,230
 $107,194
Mexico77,704
 30,522
70,037
 77,704
Bolivia20,584
 21,278
Australia656
 1,891
—
 656
Other—
 1,042
Total$206,138

$148,387
$163,267

$185,554
    
Coeur Mining, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

NOTE 4 – 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 operating sites are as follows:
Three months ended March 31,Three months ended March 31,
In thousands2017 20162018 2017
Asset retirement obligation - Beginning$97,380
 $82,072
$118,799
 $86,754
Accretion2,338
 1,960
2,545
 2,064
Additions and changes in estimates—
 251
Settlements(478) (309)(496) (421)
Asset retirement obligation - Ending$99,240

$83,974
$120,848
 $88,397
The Company has accrued $2.02.1 million and $1.92.0 million at March 31, 20172018 and December 31, 2016,2017, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 5 – STOCK-BASED COMPENSATION
The Company has stock incentive plans for executives and eligible employees. Stock awards include performance shares, restricted stock and stock options. Stock-based compensation expense for the three months ended March 31, 2018 and 2017 and 2016 was $3.3$2.8 million and $2.9$3.3 million, respectively. At March 31, 2017,2018, there was $12.2$4.8 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.81.4 years.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The following table summarizes the grants awarded during the three months ended March 31, 2017:2018:
Grant date 
Restricted
stock
 
Grant date fair
value of
restricted stock
 Stock options 
Grant date
fair value of
stock
options
 
Performance
shares
 
Grant date fair
value of
performance
shares
January 18, 2017 236,581
 $11.47
 —
 $—
 316,213
 $11.58
March 7, 2017 539,858
 $7.60
 14,820
 $3.91
 —
 $—
Grant date 
Restricted
stock
 
Grant date fair
value of
restricted stock
 Stock options 
Grant date
fair value of
stock
options
 
Performance
shares
 
Grant date fair
value of
performance
shares
March 5, 2018 31,887
 $7.84
 —
 $—
 —
 $—

The following options and stock appreciation rights were exercisable during the three months ended March 31, 2017:2018:
Award Type 
Number of 
Exercised Units
 
Weighted Average
Exercised Price
 Number of Exercisable Units Weighted Average
Exercisable Price		 
Number of 
Exercised Units
 
Weighted Average
Exercised Price
 Number of Exercisable Units Weighted Average
Exercisable Price
Stock options —
 $—
 425,850
 $14.29
 93,920
 $1.81
 397,651
 $14.39
Stock appreciation rights —
 $—
 42,152
 $14.14
 —
 $—
 42,152
 $14.14

NOTE 6 – RETIREMENT SAVINGS PLAN
The Company has a 401(k) retirement savings plan that covers all eligible U.S. employees. Eligible employees may elect to contribute up to 75% of base salary, subject to ERISA limitations. The Company generally makes matching contributions equal to 100% of the employee’s contribution up to 4% of the employee’s salary. The Company may also provide an additional contribution based on an eligible employee’s salary. Total plan expenses recognized for the three months ended March 31, 2018 and 2017 and 2016 were $2.1$1.2 million and $1.0 million, respectively, due to timing of Company contributions.$2.1 million. In addition, the Company has a deferred compensation plan for employees whose benefits under the 401(k) plan are limited by federal regulations.

NOTE 7 - OTHER, NET
Other, net consists of the following:
Three months ended March 31,Three months ended March 31,
In thousands2017 20162018 2017
Foreign exchange gain (loss)$1,349
 $(164)$(670) $1,206
Gain (loss) on sale of assets and investments(2,066) 1,085
Loss on sale of assets and investments(574) (2,066)
Gain on sale of the Joaquin project21,138
 —
—
 21,138
Impairment of equity securities(121) —
Other839
 393
1,424
 521
Other, net$21,139
 $1,314
$180
 $20,799

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 8 - INCOME AND MINING TAXES
The following table summarizes the components of Income and mining tax (expense) benefit for the three months ended March 31, 20172018 and 20162017 by significant jurisdiction:

Three months ended March 31,Three months ended March 31,
2017 20162018 2017
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$20,714
$(1,964) $(9,361)$(532)$1,187
$517
 $20,653
$(1,827)
Argentina(328)1,124
 (1,015)1,543
254
10
 (328)1,124
Mexico8,650
(9,923) (7,509)17
13,126
(13,222) 8,650
(9,923)
Bolivia471
(31) 2,047
(1,570)
Other jurisdictions202
(252)
(2,452)(1,564)(1,927)746

202
(252)
$29,709
$(11,046) $(18,290)$(2,106)$12,640
$(11,949) $29,177
$(10,878)
    


Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The Company’s effective tax rate is impacted by recurring and nonrecurring items. These items include foreign exchange rates on deferred tax balances, uncertain tax positions, and the full valuation allowance on the deferred tax assets relating to losses in the United States and certain foreign jurisdictions. During the first quarter of 2017, foreign exchange increased income and mining tax expense by $5.6 million, predominately due to the strength of the Mexican peso. Additionally, the Company recognized $1.8 million income and mining tax expense from the sale of the Joaquin project. Also during the first quarter, favorable operating results at Palmarejo contributed to higher income and mining tax expense. The Company’s consolidated effective income and mining tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in ourthe consolidated effective tax rate.rate, along with mining taxes, uncertain tax positions, and a full valuation allowance on deferred tax assets related to losses in the United States and certain foreign jurisdictions. Fluctuations in foreign exchange rates on deferred tax balances increased income and mining tax expense by $3.6 million and $5.6 million for the three months ended March 31, 2018 and 2017, respectively, predominately due to the strengthening of the Mexican Peso. Additionally, favorable operating results at Palmarejo contributed to higher income and mining tax expense in Mexico.
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 the sections titled “Risk Factors” set forth in the 20162017 10-K.
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 20122014 forward for the U.S. federal jurisdiction and from 2008 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next 12twelve 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 it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease between $2.5$1.5 million and $3.5$2.5 million in the next 12twelve months.
At March 31, 20172018 and December 31, 2016,2017, the Company had $18.7$3.9 million and $19.6$4.3 million of total gross unrecognized tax benefits, respectively. Ifrespectively that, if recognized, these unrecognized tax benefits would positively impact the Company’s effective income tax rate. 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. At March 31, 20172018 and December 31, 2016,2017, the amount of accrued income-tax-related interest and penalties was $8.7$4.2 million and $8.7$4.8 million, respectively.

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 9 – 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 common shares 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 months ended March 31, 2018 and 2017, 496,064 and 2016, 1,368,685 and 3,321,424 of common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the shares would be antidilutive.
 Three months ended March 31,
In thousands except per share amounts2018 2017
Net income (loss) available to common stockholders:   
Income (loss) from continuing operations$691
 $18,299
Income (loss) from discontinued operations550
 364
 $1,241
 $18,663
    
Weighted average shares:   
Basic184,367
 178,898
Effect of stock-based compensation plans3,254
 4,170
Diluted187,621

183,068
    
Basic income (loss) per share:   
Income (loss) from continuing operations$0.00
 $0.10
Income (loss) from discontinued operations0.00
 0.00
Basic(1)
$0.01

$0.10
    
Diluted income (loss) per share:   
Income (loss) from continuing operations$0.00
 $0.10
Income (loss) from discontinued operations0.00
 0.00
Diluted(1)
$0.01

$0.10
The (1)3.25% Convertible Senior Notes (“Convertible Notes”) were not included inDue to rounding, the computationsum of diluted net income (loss) per share for the three months ended March 31, 2016 because there is no excess value upon conversion over the principal amount of the Convertible Notes. The outstanding Convertible Notes were redeemed in the third quarter of 2016.from continuing operations and discontinued operations may not equal net income per share.
 Three months ended March 31,
In thousands except per share amounts2017 2016
Net income (loss) available to common stockholders$18,663
 $(20,396)
Weighted average shares:   
Basic178,898
 150,249
Effect of stock-based compensation plans4,170
 —
Diluted183,068

150,249
Income (loss) per share:   
Basic$0.10

$(0.14)
Diluted$0.10

$(0.14)

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 10 – FAIR VALUE MEASUREMENTS
 Three months ended March 31,
In thousands2017 2016
Rochester net smelter returns (“NSR”) royalty obligation$(1,200) $(2,249)
Palmarejo royalty obligation embedded derivative—
 (4,878)
Silver and gold options—

(1,568)
Fair value adjustments, net$(1,200) $(8,695)
 Three months ended March 31,
In thousands2018 2017
Rochester royalty obligation$—
 $(1,200)
Unrealized gain (loss) on equity securities4,842
 —
Zinc options145
 —
Fair value adjustments, net$4,987
 $(1,200)
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).
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

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 March 31, 2017Fair Value at March 31, 2018
In thousandsTotal Level 1 Level 2 Level 3  Total Level 1 Level 2 Level 3  
Assets:              
Equity securities$3,796
 $3,517
 $—
 $279
Equity and debt securities$37,317
 $31,003
 $—
 $6,314
Other derivative instruments, net614
 —
 614
 —
552
 —
 552
 —
$4,410
 $3,517
 $614
 $279
$37,869
 $31,003
 $552
 $6,314
Liabilities:              
Rochester NSR royalty obligation9,277
 —
 —
 9,277
Silvertip contingent consideration$48,289
 $—
 $—
 $48,289
Other derivative instruments, net4
 —
 4
 —
125
 —
 125
 —
$9,281
 $—
 $4
 $9,277
$48,414
 $—
 $125
 $48,289
 
Fair Value at December 31, 2016Fair Value at December 31, 2017
In thousandsTotal Level 1 Level 2 Level 3  Total Level 1 Level 2 Level 3  
Assets:              
Equity securities$4,488
 $4,209
 $—
 $279
Liabilities:       
Rochester NSR royalty obligation9,287
 —
 —
 9,287
Equity and debt securities$34,837
 $27,946
 $—
 $6,891
Other derivative instruments, net762
 —
 762
 —
251
 —
 251
 —
$10,049
 $—
 $762
 $9,287
$35,088
 $27,946
 $251
 $6,891
Liabilities:       
Silvertip contingent consideration$47,965
 $—
 $—
 $47,965
Other derivative instruments, net222
 —
 222
 —
$48,187
 $—
 $222
 $47,965
The Company’s investments in equity securities are recorded at fair market value in the financial statements based primarily on quoted market prices. Such instruments are classified within Level 1 of the fair value hierarchy. Quoted market prices are not available for certain equitydebt securities; these securities are valued using pricing models, which require the use of observable and unobservable inputs, and are classified within Level 3 of the fair value hierarchy.
The Company’s other derivative instruments, net, relate toinclude concentrate and certain doré sales contracts, as well as zinc hedges, which are valued using pricing models which requirewith inputs that are derived from observable market data, including contractual terms, forward market prices, yield curves, credit spreads, and other unobservable inputs. 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.
In July 2017, the Company sold the Endeavor Silver Stream and remaining non-core royalties to Metalla Royalty & Streaming Ltd. (“Metalla”) for total consideration of $13.0 million, including a $6.7 million convertible debenture. The convertible debenture matures June 30, 2027, bears interest at a rate of 5% payable semi-annually, and is convertible into Metalla shares in connection with future equity financings or asset acquisitions by Metalla at the then-current price to maintain the Company’s approximate 19.9% ownership. The fair value of the Rochester NSR royalty obligation wasconvertible debenture is estimated based on observable market data including contractual terms, forward silver and gold prices, yield curves and credit spreads, as well as the Company’s current mine plan which is considered a significant unobservable input.spreads. Therefore, the Company has classified this obligation asclassifies the convertible debenture in Level 3 financial liabilities. Based on currentof the fair value hierarchy.
In October 2017, the Company acquired the Silvertip mine plans, 1.6 years was used to estimatefrom shareholders of JDS Silver Holdings Ltd.The consideration for the Silvertip mine includes two $25.0 million contingent payments, which are payable in cash and common stock upon reaching a future permitting milestone in 2018 and resource declaration milestone in 2019, respectively. The fair value of the Rochester NSR royalty obligation at March 31, 2017.Silvertip contingent consideration is estimated based on an estimated discount rate of 2.5% for the contingent permitting payment and 2.9% for the contingent resource declaration payment and is classified within Level 3 of the fair value hierarchy.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2017.2018.
The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the three months ended March 31, 2017:2018:
Three Months Ended March 31, 2017Three Months Ended March 31, 2018
In thousandsBalance at the beginning of the period Revaluation Settlements 
Balance at the
end of the
period
Balance at the beginning of the period Revaluation Settlements Accretion 
Balance at the
end of the
period
Assets:                
Equity securities$279
 $—
 $—
 $279
Equity and debt securities$6,891
 $(278) $(299) $—
 $6,314
Liabilities:                
Rochester NSR royalty obligation$9,287
 $1,200
 $(1,210) $9,277
Silvertip contingent consideration$47,965
 $—
 $—
 $324
 $48,289
The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 20172018 and December 31, 20162017 is presented in the following table:
 March 31, 2018
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  
Assets:         
Manquiri Notes Receivable$39,887
 $39,887
 $—
 $—
 $39,887
Liabilities:  
      
5.875% Senior Notes due 2024(1)
$245,280
 $244,520
 $—
 $244,520
 $—
Revolving Credit Facility(2)
$115,000
 $115,000
 $—
 $115,000
 $—
(1) Net of unamortized debt issuance costs of $4.7 million.
(2) Unamortized debt issuance costs of $1.8 million included in Other Non-Current Assets.
 March 31, 2017
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  
Liabilities:  
      
7.875% Senior Notes due 2021(1)
$176,114
 $184,279
 $—
 $184,279
 $—
(1)Net of unamortized debt issuance costs and premium received of $1.9 million.
 December 31, 2017
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  
Liabilities:         
5.875% Senior Notes due 2024(1)
$245,088
 $243,913
 $—
 $243,913
 $—
Revolving Credit Facility(2)
$100,000
 $100,000
 $—
 $100,000
 $—
 December 31, 2016
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  
Liabilities:         
7.875% Senior Notes due 2021(1)
$175,991
 $184,373
 —
 $184,373
 —
(1) Net of unamortized debt issuance costs of $4.9 million.
(1)Net of unamortized debt issuance costs and premium received of $2.0 million.
(2) Unamortized debt issuance costs of $1.9 million included in Other Non-Current Assets.
The fair value of the 7.875%Manquiri Notes Receivable approximates book value due to no significant change in interest rates since the sale of Manquiri; see Note 21 -- Discontinued Operations for additional detail. The fair value of the 5.875% Senior Notes due 20212024 (the “Senior“2024 Senior Notes”) was estimated using quoted market prices. The fair value of the Revolving Credit Facility approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

NOTE 11 – DERIVATIVE FINANCIAL INSTRUMENTS
Palmarejo Gold Production Royalty
In January 2009, the Company's subsidiary, Coeur Mexicana, S.A. de C.V. (“Coeur Mexicana”), entered into a gold production royalty agreement with a subsidiary of Franco-Nevada Corporation that covered 50% of the life of mine production from the Palmarejo mine and legacy adjacent properties. The royalty transaction included a minimum obligation of 4,167 gold ounces per month and terminated upon delivery of 400,000 gold ounces, which occurred in July 2016.
    The price volatility associated with the minimum royalty obligation was considered an embedded derivative. The Company was required to recognize the change in fair value of the remaining minimum obligation due to changing gold prices. For the three months ended March 31, 2016, the mark-to-market adjustment associated with the change was a loss of $4.9 million. Payments on the royalty obligation decreased the carrying amount of the minimum obligation and the derivative liability. For the three months ended March 31, 2016, realized loss on settlement of the liability was $3.0 million. The mark-to-market adjustments and realized losses are included in Fair value adjustments, net.
Provisional Silver and Gold Sales
The Company enters into sales contracts with third-party smelters and refiners 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. Changes in silver and gold prices resulted in provisional pricing mark-to-market gains of $1.4$0.3 million and $0.6$1.2 million in the three months ended March 31, 2018 and 2017, respectively.
Zinc Options
At March 31, 2018, the Company has outstanding Asian (or average value) put and 2016,call option contracts in net-zero-cost collar arrangements on a volume of 300 metric tons of zinc per month commencing in April 2018 and ending in December 2018. The weighted average strike prices on the put and call contracts are $3,000 and $4,050 per metric ton, respectively. The contracts are generally net cash settled and, if the price of zinc at the time of the expiration is between the put and call prices, would expire
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

at no cost to the Company. At March 31, 2017,2018, the Company hadfair market value of the following provisionally priced sales that settle as follows:put and call zero cost collar contracts was a net asset of $0.1 million.
In thousands except average prices and notional ounces2017 Thereafter
    
Provisional silver sales contracts$1,403
 $—
Average silver price$17.74
 $—
Notional ounces79,084
 —
    
Provisional gold sales contracts$35,849
 $—
Average gold price$1,211
 $—
Notional ounces29,603
 —
Silver and Gold Options
During the three months ended March 31, 2016,2018, the Company had realized lossesrecorded unrealized gains of $1.6$0.1 million from settled contracts.related to outstanding options which were included in Fair value adjustments, net. At March 31, 2017, the Company had no outstanding gold and silver options contracts.
At March 31, 2018, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces2018 Thereafter
    
Provisional silver sales contracts$831
 $—
Average silver price per ounce$16.66
 $—
Notional ounces49,853
 —
    
Provisional gold sales contracts$59,332
 $—
Average gold price per ounce$1,317
 $—
Notional ounces45,051
 —
    
Zinc put options purchased$8,100
 $—
Average zinc strike price per metric ton$3,000
 $—
Notional metric tons2,700
 —
    
Zinc call options sold$(10,935) $—
Average zinc strike price per metric ton$4,050
 $—
Notional metric tons2,700
 —
The following summarizes the classification of the fair value of the derivative instruments:
March 31, 2017March 31, 2018
In thousandsPrepaid expenses and other Accrued liabilities and other Current portion of royalty obligation Non-current portion of royalty obligationPrepaid expenses and other Accrued liabilities and other Current portion of royalty obligation Non-current portion of royalty obligation
Provisional silver and gold sales contracts$614
 $4
 $—
 $—
$407
 $125
 $—
 $—
Zinc options145
 —
 —
 —
$552
 $125
 $—
 $—
December 31, 2016
In thousandsPrepaid expenses and otherAccrued liabilities and otherCurrent portion of royalty obligationNon-current portion of royalty obligation
Provisional silver and gold sales contracts—
762
—
—
 December 31, 2017
In thousandsPrepaid expenses and other Accrued liabilities and other Current portion of royalty obligation Non-current portion of royalty obligation
Provisional silver and gold sales contracts$251
 $222
 $—
 $—
The following represent mark-to-market gains (losses) on derivative instruments for the three months ended March 31, 2018 and 2017, and 2016respectively (in thousands):
 Three months ended March 31, Three months ended March 31,
Financial statement lineDerivative2017 2016Derivative2018 2017
RevenueProvisional silver and gold sales contracts$1,372
 $566
Provisional silver and gold sales contracts$253
 $1,212
Fair value adjustments, netPalmarejo gold production royalty—
 (4,878)Zinc options145
 —
Fair value adjustments, netSilver and gold options—
 (1,568)
 $1,372

$(5,880) $398
 $1,212
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 worthycredit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties.

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 12 – ACQUISITIONS

In October 2017, the Company completed the acquisition of JDS Silver Holdings Ltd. and its wholly-owned subsidiary JDS Silver Inc. (together, “JDS Silver”) which, following the closing of the acquisition, were amalgamated with a subsidiary of Coeur to form Coeur Silvertip Holdings Ltd., which owns the underground Silvertip silver-zinc-lead mine in northern British Columbia, Canada. JDS Silver was purchased for approximately $153.2 million in cash and $36.0 million in Coeur common stock. In addition, the Company recorded $47.7 million of contingent consideration payable in cash and common stock upon reaching future permitting and resource declaration milestones. The cash consideration was funded with $100.0 million of borrowing under the Facility (as defined in Note 18 -- Debt) and cash on hand. Upon closing, the Company issued approximately 4.2 million Coeur shares to former shareholders of JDS Silver Holdings Ltd. The acquisition aligns with the Company’s strategic shift to a North America-focused mining portfolio.
The transaction was accounted for as a business combination, which requires that assets acquired and liabilities assumed be recognized at their respective fair values at the acquisition date. The acquisition is not significant to the Company’s results of operations, individually or in the aggregate, because the Silvertip mine is in pre-production. As there are no significant differences from the Company’s historical results of operations, no pro forma financial information is provided.
The allocation of purchase price to the acquired assets and liabilities assumed is preliminary as of March 31, 2018 and subsequent adjustments may result in changes to mineral interest and other carrying amounts initially assigned based on the preliminary fair value analysis. The principal remaining items to be valued are property, plant and equipment and mining properties, which will be finalized as management continues to review the valuation methodologies used to estimate the fair value of these assets. The preliminary purchase price allocation is as follows (in thousands):
Common shares issued (4,191,679 at $8.59)$36,007
Cash153,194
Contingent consideration47,705
Total purchase price(1)
$236,906
Assets: 
Receivables and other assets$6,828
Property, plant, and equipment29,943
Mining properties, net288,464
 325,235
Liabilities: 
Accounts payable and accrued liabilities13,077
Asset retirement obligation6,982
Debt and capital lease20,149
Deferred income taxes48,121
 88,329
Net assets acquired$236,906
(1) Purchase price has been adjusted for restricted cash acquired due to the adoption of ASU 2016-01.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 13 – INVESTMENTS
Equity and Debt Securities
The Company makes strategic investments in equity and debt securities of silver and gold exploration and development companies. These investments are classified as available-for-sale and are measured at fair value in the financial statements with unrealized gains and losses recorded in Other comprehensive income (loss).
At March 31, 2017At March 31, 2018
In thousandsCost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Cost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Kootenay Silver, Inc.$2,167
 $—
 $—
 $2,167
Rockhaven Resources Ltd514
 (64) —
 450
Silver Bull Resources, Inc.131
 —
 356
 487
Equity Securities       
Metalla Royalty & Streaming Ltd.$6,294
 $—
 $2,837
 $9,131
Corvus Gold Inc.3,582
 —
 6,844
 10,426
Almaden Minerals, Ltd.2,067
 (727) —
 1,340
Northern Empire Resources Corp.4,489
 —
 2,999
 7,488
Rockhaven Resources, Ltd.2,064
 (596) —
 1,468
Other193
 —
 499
 692
1,190
 (155) 115
 1,150
Equity securities$3,005
 $(64) $855
 $3,796
$19,686
 $(1,478) $12,795
 $31,003
       
Debt Securities       
Metalla Royalty & Streaming Ltd.$6,677
 $(363) $—
 $6,314
       
Equity and debt securities$26,363
 $(1,841) $12,795
 $37,317

At December 31, 2016At December 31, 2017
In thousandsCost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Cost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity Securities       
Metalla Royalty & Streaming Ltd.$6,294
 $—
 $1,354
 $7,648
Corvus Gold Inc.3,582
 —
 4,518
 8,100
Almaden Minerals, Ltd.3,125
 (235) —
 2,890
Northern Empire Resources Corp.4,489
 —
 1,077
 5,566
Rockhaven Resources, Ltd.2,064
 (193) —
 1,871
Kootenay Silver, Inc.$2,645
 $—
 $—
 $2,645
738
 —
 1
 739
Silver Bull Resources, Inc.233
 —
 783
 1,016
Other229
 —
 598
 827
1,479
 (453) 405
 1,431
Equity securities$3,107
 $—
 $1,381
 $4,488
$21,771
 $(881) $7,355
 $28,245
       
Debt Securities       
Metalla Royalty & Streaming Ltd.$6,677
 $(85) $—
 $6,592
       
Equity and debt securities$28,448
 $(966) $7,355
 $34,837

The following table presents the disaggregated gain (loss) on equity securities recognized in Income (loss) from continuing operations on the Condensed Consolidated Statements of Comprehensive Income:
 Three months ended March 31,
In thousands2018 2017
Net gain (loss)$4,529
 $(1,471)
Less: Realized (gain) loss313
 1,471
Unrealized gain (loss)$4,842
 $—


Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The Company performs a quarterly assessment on each of its equitydebt securities with unrealized losses to determine if the security issecurities are other than temporarily impaired. The Company recorded a pre-tax other-than-temporary impairment loss of $0.1 million in the three months ended March 31, 2017, and no impairment loss in the three months ended March 31, 2016, in Other, net. The following table summarizes unrealized losses on equitydebt securities for which other-than-temporary impairments have not been recognized and the fair values of those securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2017:2018:

Less than twelve months Twelve months or more TotalLess than twelve months Twelve months or more Total
In thousandsUnrealized LossesFair Value Unrealized LossesFair Value Unrealized LossesFair ValueUnrealized LossesFair Value Unrealized LossesFair Value Unrealized LossesFair Value
Equity securities$(64)$450
 $—
$—
 $(64)$450
Debt securities363
6,314
 —
—
 363
6,314
Restricted Assets
The Company, under the terms of its self-insurance and bonding agreements with certain banks, lending institutions and regulatory agencies, is required to collateralize certain portions of its asset retirement obligations. The Company has collateralized these obligations by assigning certificates of deposit that have maturity dates ranging from three months to a year to the applicable institutions or agencies. At March 31, 20172018 and December 31, 2016,2017, the Company held certificates of deposit and cash equivalents under these agreements of $19.0$22.1 million and $17.6 million, respectively. The ultimate timing of the release of the collateralized amounts is dependent on the timing and closure of each mine and repayment of the obligation. In order to release the collateral, the Company must seek approval from certain government agencies responsible for monitoring the mine closure status. Collateral could also be released to the extent the Company is able to secure alternative financial assurance satisfactory to the regulatory agencies. The Company believes there is a reasonable probability that the collateral will remain in place beyond a twelve-month period and has therefore classified these investments as long-term.

NOTE 14 – RECEIVABLES
Receivables consist of the following:
In thousandsMarch 31, 2018 December 31, 2017
Current receivables:   
Trade receivables$3,840
 $5,883
Income tax receivable48
 7
Value added tax receivable14,482
 10,982
Manquiri note receivable15,840
 —
Other1,654
 2,197
 $35,864
 $19,069
Non-current receivables:   
Value added tax receivable$31,381
 $28,750
Manquiri note receivable24,047
 —
 55,428
 28,750
Total receivables$91,292
 $47,819

The increase in receivables is due to the recognition of Manquiri notes receivable as consideration for the sale of San Bartolomé. See Note 21 -- Discontinued Operations for additional detail.

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 13 – RECEIVABLES
Receivables consist of the following:
In thousandsMarch 31, 2017 December 31, 2016
Current receivables:   
Trade receivables$8,772
 $10,669
Income tax receivable11,441
 1,038
Value added tax receivable44,085
 46,083
Other2,766
 2,641
 $67,064
 $60,431
Non-current receivables:   
Value added tax receivable$15,558
 $19,293
Income tax receivable—
 11,658
 15,558
 30,951
Total receivables$82,622
 $91,382

NOTE 1415 – INVENTORY AND ORE ON LEACH PADS
Inventory consists of the following:
In thousandsMarch 31, 2017 December 31, 2016March 31, 2018 December 31, 2017
Inventory:      
Concentrate$13,476
 $17,994
$11,062
 $6,831
Precious metals20,938
 47,228
17,783
 18,803
Supplies39,346
 40,804
32,878
 32,596
$73,760
 $106,026
61,723
 58,230
Ore on leach pads:      
Current$66,585
 $64,167
75,584
 73,752
Non-current72,461
 67,231
67,430
 65,393
$139,046
 $131,398
143,014
 139,145
Total inventory and ore on leach pads$212,806
 $237,424
$204,737
 $197,375

NOTE 1516 – PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
In thousandsMarch 31, 2017 December 31, 2016March 31, 2018 December 31, 2017
Land$8,403
 $7,878
$9,107
 $9,408
Facilities and equipment649,030
 650,480
559,276
 554,160
Assets under capital leases63,775
 54,968
88,720
 82,753
721,208
 713,326
657,103
 646,321
Accumulated amortization (1)
(531,480) (524,806)(456,374) (448,001)
189,728
 188,520
200,729
 198,320
Construction in progress32,889
 28,276
65,428
 56,417
Property, plant and equipment, net$222,617
 $216,796
$266,157
 $254,737
(1) Includes $15.6$29.0 million and $28.2 million of accumulated amortization related to assets under capital leases.leases at March 31, 2018 and December 31, 2017, respectively.

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 1617 – MINING PROPERTIES
Mining properties consist of the following (in thousands):
March 31, 2017Palmarejo Rochester Kensington Wharf 
San
Bartolomé
 La Preciosa Other Total
March 31, 2018Palmarejo Rochester Silvertip Kensington Wharf La Preciosa Other Total
Mine development$179,562
 $171,543
 $279,095
 $37,562
 $39,338
 $—
 $—
 $707,100
$220,141
 $194,390
 $70,626
 $307,996
 $40,688
 $—
 $—
 $833,841
Accumulated amortization(137,215) (139,519) (159,485) (12,530) (32,625) —
 —
 (481,374)(151,102) (146,245) —
 (182,555) (16,456) —
 —
 (496,358)
42,347
 32,024
 119,610
 25,032
 6,713
 —
 —
 225,726
69,039
 48,145
 70,626
 125,441
 24,232
 —
 —
 337,483
Mineral interests629,303
 —
 —
 45,837
 12,868
 49,085
 41,272
 778,365
629,303
 —
 245,116
 —
 45,837
 49,085
 7,102
 976,443
Accumulated amortization(393,532) —
 —
 (20,106)—
(11,762) —
 (29,484) (454,884)(445,327) —
 —
 —
 (24,655)—
—
 (123) (470,105)
235,771
 —
 —
 25,731
 1,106
 49,085
 11,788
 323,481
183,976
 —
 245,116
 —
 21,182
 49,085
 6,979
 506,338
Mining properties, net$278,118
 $32,024
 $119,610
 $50,763
 $7,819
 $49,085
 $11,788
 $549,207
$253,015
 $48,145
 $315,742
 $125,441
 $45,414
 $49,085
 $6,979
 $843,821
December 31, 2016Palmarejo Rochester Kensington Wharf 
San
Bartolomé
 La Preciosa Joaquin Other Total
December 31, 2017Palmarejo Rochester Silvertip Kensington Wharf La Preciosa Total
Mine development$174,890
 $165,230
 $271,175
 $37,485
 $39,184
 $—
 $—
 $—
 $687,964
$214,383
 $193,881
 $57,214
 $298,749
 $40,618
 $—
 $804,845
Accumulated amortization(134,995) (138,244) (154,744) (11,699) (32,192) —
 

 —
 (471,874)(146,598) (144,390) —
 (178,632) (15,748) —
 (485,368)
39,895
 26,986
 116,431
 25,786
 6,992
 —
 —
 —
 216,090
67,785
 49,491
 57,214
 120,117
 24,870
 —
 319,477
Mineral interests629,303
 —
 —
 45,837
 12,868
 49,085
 10,000
 37,272
 784,365
629,303
 —
 245,116
 —
 45,837
 49,085
 969,341
Accumulated amortization(381,686) —
 —
 (19,249) (11,695) —
 —
 (29,370) (442,000)(435,215) —
 —
 —
 (24,034)—
—
 (459,249)
247,617
 —
 —
 26,588
 1,173
 49,085
 10,000
 7,902
 342,365
194,088
 —
 245,116
 —
 21,803
 49,085
 510,092
Mining properties, net$287,512
 $26,986
 $116,431
 $52,374
 $8,165
 $49,085
 $10,000
 $7,902
 $558,455
$261,873
 $49,491
 $302,330
 $120,117
 $46,673
 $49,085
 $829,569
In February 2017,2018, the Company soldcompleted the Joaquin silver-gold exploration project for considerationsale of $27.4 million andManquiri, which operates the San Bartolomé mine. Pursuant to the terms of the agreement, the Company received, among other things, a 2.0% NSRnet smelter returns royalty. Coeur estimates the value of this net smelter returns royalty on the Joaquin project,to be approximately $7.1 million, which is included in Other. See Note 21 -- Discontinued Operations for additional detail.
The Company recognized a $21.1 million pre-tax gainSilvertip mine is expected to reach commercial production in the second quarter of 2018. The determination of commercial production (or ready for intended use) is based on this sale.many factors requiring the exercise of judgment.  Factors that are considered when determining if intended use has been achieved include achievement of continuous production or other output, mineral recoveries at or near expected levels, the absence of routine take-downs of the plant to address commissioning issues and fix problems, and the release of the commissioning team.
Prior to commercial production, costs related to mine development, construction of long-lived assets, and inventory are capitalized; all other costs are expensed in the period incurred. Amortization of mining properties will commence when the mine has been determined to be in commercial production.


NOTE 1718 – DEBT
March 31, 2017 December 31, 2016March 31, 2018 December 31, 2017
In thousandsCurrent Non-Current Current Non-CurrentCurrent Non-Current Current Non-Current
Senior Notes, net(1)
$—
 $176,114
 $—
 $175,991
2024 Senior Notes, net(1)
$—
 $245,280
 $—
 $245,088
Revolving Credit Facility(2)
—
 115,000
 —
 100,000
Capital lease obligations13,451
 29,511
 12,039
 22,866
17,040
 36,704
 16,559
 35,481
Silvertip debt obligation—
 —
 14,194
 —
$13,451
 $205,625
 $12,039
 $198,857
$17,040
 $396,984
 $30,753
 $380,569
(1) Net of unamortized debt issuance costs and premium received of $1.9$4.7 million and $2.0$4.9 million at March 31, 20172018 and December 31, 2016,2017, respectively.

7.875% Senior Notes due 2021
On or after February 1, 2017, the Company may redeem some or all(2) Unamortized debt issuance costs of the Senior Notes at the applicable redemption prices set forth in the Indenture for the Senior Notes, together with accrued$1.8 million and unpaid interest.
Lines of Credit
At March 31, 2017, the Company’s subsidiary that holds the San Bartolomé mine had an available line of credit for $12.0$1.9 million that matures in June 30, 2018, bearing interest at 6.0% per annum, which is secured by machinery and equipment. There was no outstanding balance at March 31, 2017.2018 and December 31, 2017, respectively, included in Other Non-Current Assets.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

5.875% Senior Notes due 2024
In May 2017, the Company completed an offering of $250.0 million in aggregate principal amount of 2024 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 $245.0 million. The 2024 Senior Notes bear interest at a rate of 5.875% per year from the date of issuance.  Interest on the 2024 Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year. The 2024 Senior Notes will mature on June 1, 2024 and are fully and unconditionally guaranteed by the Guarantors.
Revolving Credit Facility
In September 2017, the Company, as borrower, and certain subsidiaries of the Company, as guarantors, entered into a Credit Agreement (the “Credit Agreement”) with Bank of America, N.A, Royal Bank of Canada, Bank of Montreal, and the Bank of Nova Scotia. The Credit Agreement provides for a $200.0 million senior secured revolving credit facility (the “Facility”), which may be increased by up to $50.0 million in incremental loans and commitments subject to the terms of the Credit Agreement. The Facility has a term of four years. Loans under the Facility will bear interest at a rate equal to either a base rate plus a margin ranging from 1.00% to 1.75% or an adjusted LIBOR rate plus a margin ranging from 2.00% to 2.75%, as selected by the Company, in each case, with such margin determined in accordance with a pricing grid based upon the Company’s consolidated net leverage ratio as of the end of the applicable period.
At March 31, 2018, the Company had $73.0 million available under the Facility; $15.0 million was drawn to repay the third-party debt obligation at Silvertip, $100.0 million was drawn to partially fund the Silvertip acquisition in 2017, and $12.0 million currently supports outstanding letters of credit. At March 31, 2018, the interest rate of the Facility was 4.1%.
Silvertip Debt Obligation
The Company assumed an existing third-party debt obligation as part of the Silvertip acquisition. In February 2018, the Company voluntarily terminated and repaid the remaining debt obligation of $12.6 million.
Capital Lease Obligations
From time to time, the Company acquires mining equipment under capital lease agreements. In the three months ended March 31, 2017,2018, the Company entered into new lease financing arrangements primarily for diesel generators at Kensington and mining equipment at Rochester.Rochester and Kensington. All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.
Interest Expense
Three months ended March 31,Three months ended March 31,
In thousands2017 20162018 2017
Senior Notes$3,504
 7,457
Term Loan due 2020—
 2,264
2024 Senior Notes$3,673
 $—
2021 Senior Notes—
 3,504
Revolving Credit Facility1,152
 —
Capital lease obligations306
 265
524
 306
Accretion of Palmarejo gold production royalty obligation—
 765
Amortization of debt issuance costs166
 631
325
 166
Accretion of debt premium(43) (91)—
 (43)
Accretion of Silvertip contingent consideration324
 —
Other debt obligations16
 32
107

9
Capitalized interest(363) (203)(140) (363)
Total interest expense, net of capitalized interest$3,586
 $11,120
$5,965
 $3,579

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 1819 - SUPPLEMENTAL GUARANTOR INFORMATION
The following Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10 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, and Coeur Capital, Inc. (collectively, the “Subsidiary Guarantors”) of the 2024 Senior Notes. The following schedules present Consolidating Financial Statements of (a) Coeur, the parent company; (b) the Subsidiary Guarantors; and (c) certain wholly-owned domestic and foreign subsidiaries of the Company (collectively, the “Non-Guarantor Subsidiaries”). 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.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2018
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue $—
 $93,230
 $70,037
 $—
 $163,267
COSTS AND EXPENSES          
Costs applicable to sales(1)
 —
 68,245
 31,095
 —
 99,340
Amortization 246
 14,205
 16,326
 —
 30,777
General and administrative 8,797
 3
 4
 —
 8,804
Exploration 459
 2,245
 3,979
 —
 6,683
Pre-development, reclamation, and other 406
 1,947
 1,872
 —
 4,225
Total costs and expenses 9,908
 86,645
 53,276
 —
 149,829
OTHER INCOME (EXPENSE), NET          
Fair value adjustments, net 5,279
 (292) —
 —
 4,987
Other, net 4,142
 (137) (106) (3,719) 180
Interest expense, net of capitalized interest (5,083) (353) (4,248) 3,719
 (5,965)
Total other income (expense), net 4,338
 (782) (4,354) —
 (798)
Income (loss) from continuing operations before income and mining taxes (5,570) 5,803
 12,407
 —
 12,640
Income and mining tax (expense) benefit 1,638
 (1,120) (12,467) —
 (11,949)
Income (loss) from continuing operations (3,932) 4,683
 (60) —
 691
Equity income (loss) in consolidated subsidiaries 4,164
 (38) (170) (3,956) —
Income (loss) from discontinued operations 1,009
 (284) (175) —
 550
NET INCOME (LOSS) $1,241
 $4,361
 $(405) $(3,956) $1,241
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:          
Unrealized gain (loss) on debt securities, net of tax (278) —
 —
 —
 (278)
COMPREHENSIVE INCOME (LOSS) $963
 $4,361
 $(405) $(3,956) $963
(1) Excludes amortization.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2017
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue $—
 $107,194
 $98,944
 $—
 $206,138
COSTS AND EXPENSES          
Costs applicable to sales(1)
 —
 71,202
 61,510
 —
 132,712
Amortization 324
 18,104
 21,676
 —
 40,104
General and administrative 10,106
 24
 3
 —
 10,133
Exploration 336
 1,727
 3,189
 —
 5,252
Pre-development, reclamation, and other 175
 1,781
 2,625
 —
 4,581
Total costs and expenses 10,941
 92,838
 89,003
 —
 192,782
OTHER INCOME (EXPENSE), NET          
Fair value adjustments, net —
 (1,200) —
 —
 (1,200)
Other, net 15,222
 5,458
 1,873
 (1,414) 21,139
Interest expense, net of capitalized interest (3,279) (175) (1,546) 1,414
 (3,586)
Total other income (expense), net 11,943
 4,083
 327
 —
 16,353
Loss before income and mining taxes 1,002
 18,439
 10,268
 —
 29,709
Income and mining tax (expense) benefit 1,588
 (2,434) (10,200) —
 (11,046)
Total loss after income and mining taxes 2,590
 16,005
 68
 —
 18,663
Equity income (loss) in consolidated subsidiaries 16,073
 70
 (67) (16,076) —
NET INCOME (LOSS) $18,663
 $16,075
 $1
 $(16,076) $18,663
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:          
Unrealized gain (loss) on marketable securities, net of tax (2,182) (279) —
 279
 (2,182)
Reclassification adjustments for impairment of equity securities, net of tax 121
 121
 —
 (121) 121
Reclassification adjustments for realized gain (loss) on sale of equity securities, net of tax 1,471
 (369) —
 369
 1,471
Other comprehensive income (loss) (590) (527) —
 527
 (590)
COMPREHENSIVE INCOME (LOSS) $18,073
 $15,548
 $1
 $(15,549) $18,073
(1) Excludes amortization.
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2016
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue $—
 $93,954
 $54,433
 $—
 $148,387
 $—
 $107,194
 $78,360
 $—
 $185,554
COSTS AND EXPENSES                    
Costs applicable to sales(1)
 —
 62,364
 39,191
 —
 101,555
 —
 71,202
 43,288
 —
 114,490
Amortization 423
 17,859
 9,682
 —
 27,964
 324
 18,104
 20,265
 —
 38,693
General and administrative 8,080
 18
 178
 —
 8,276
 10,106
 24
 (5) —
 10,125
Exploration 623
 184
 924
 —
 1,731
 336
 1,727
 3,189
 —
 5,252
Write-downs —
 —
 4,446
 —
 4,446
Pre-development, reclamation, and other 452
 1,416
 2,336
 —
 4,204
 175
 1,781
 1,881
 —
 3,837
Total costs and expenses 9,578
 81,841
 56,757
 —
 148,176
 10,941
 92,838
 68,618
 —
 172,397
OTHER INCOME (EXPENSE), NET                    
Fair value adjustments, net (1,582) (2,249) (4,864) —
 (8,695) —
 (1,200) —
 —
 (1,200)
Other, net 338
 2,254
 (253) (1,025) 1,314
 15,222
 5,458
 1,533
 (1,414) 20,799
Interest expense, net of capitalized interest (10,255) (213) (1,677) 1,025
 (11,120) (3,279) (175) (1,539) 1,414
 (3,579)
Total other income (expense), net (11,499) (208) (6,794) —
 (18,501) 11,943
 4,083
 (6) —
 16,020
Income (Loss) before income and mining taxes (21,077) 11,905
 (9,118) —
 (18,290)
Income (loss) from continuing operations before income and mining taxes 1,002
 18,439
 9,736
 —
 29,177
Income and mining tax (expense) benefit (209) (307) (1,590) —
 (2,106) 1,588
 (2,434) (10,032) —
 (10,878)
Income (Loss) after income and mining taxes (21,286) 11,598
 (10,708) —
 (20,396)
Income (loss) from continuing operations 2,590
 16,005
 (296) —
 18,299
Equity income (loss) in consolidated subsidiaries 890
 (4,479) —
 3,589
 —
 16,073
 70
 (67) (16,076) —
Income (loss) from discontinued operations —
 —
 364
 —
 364
NET INCOME (LOSS) $(20,396) $7,119
 $(10,708) $3,589
 $(20,396) $18,663
 $16,075
 $1
 $(16,076) $18,663
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:                    
Unrealized gain (loss) on equity securities, net of tax 1,043
 976
 —
 (976) 1,043
Unrealized gain (loss) on debt and equity securities, net of tax (2,182) (279) —
 279
 (2,182)
Reclassification adjustments for impairment of equity securities, net of tax 121
 121
 —
 (121) 121
Reclassification adjustments for realized loss on sale of equity securities, net of tax 588
 (381) —
 381
 588
 1,471
 (369) —
 369
 1,471
Other comprehensive income (loss) 1,631
 595
 —
 (595) 1,631
 (590) (527) —
 527
 (590)
COMPREHENSIVE INCOME (LOSS) $(18,765) $7,714
 $(10,708) $2,994
 $(18,765) $18,073
 $15,548
 $1
 $(15,549) $18,073
(1) Excludes amortization.

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 20172018
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:                    
Cash provided by (used in) operating activities $(4,815) $17,183
 $58,979
 $(16,076) 55,271
Cash provided by (used in) activities of continuing operations $(7,938) $5,395
 $22,040
 $(3,956) 15,541
Cash provided by (used in) activities of discontinued operations —
 —
 (2,690) —
 (2,690)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (7,938) 5,395
 19,350
 (3,956) 12,851
                    
CASH FLOWS FROM INVESTING ACTIVITIES                    
Capital expenditures (319) (16,975) (6,685) —
 (23,979) (83) (14,341) (27,921) —
 (42,345)
Proceeds from the sale of long-lived assets 8,916
 6,151
 (48) —
 15,019
Proceeds from the sale of assets —
 60
 —
 —
 60
Purchase of investments (1,016) —
 —
 —
 (1,016) (361) —
 —
 —
 (361)
Sales and maturities of investments 9,157
 863
 —
 —
 10,020
Sales of investments 1,067
 552
 —
 —
 1,619
Other (1,486) —
 (60) —
 (1,546) —
 —
 (65) —
 (65)
Investments in consolidated subsidiaries (12,454) (70) 67
 12,457
 —
 (4,162) 37
 169
 3,956
 —
Cash provided by (used in) activities of continuing operations (3,539) (13,692) (27,817) 3,956
 (41,092)
Cash provided by (used in) activities of discontinued operations —
 —
 (28,470) —
 (28,470)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,798
 (10,031) (6,726) 12,457
 (1,502) (3,539)
(13,692)

(56,287) 3,956
 (69,562)
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Issuance of notes and bank borrowings, net of issuance costs 15,000
 —
52,577
—
 —
 15,000
Payments on debt, capital leases, and associated costs —
 (1,874) (1,352) —
 (3,226) —
 (2,395) (16,054) —
 (18,449)
Net intercompany financing activity 14,318
 (9,325) (8,612) 3,619
 —
 (20,381) (10,946) 31,327
 —
 —
Other (3,247) —
 —
 —
 (3,247) (4,606) —
 —
 —
 (4,606)
Cash provided by (used in) activities of continuing operations (9,987) (13,341) 15,273
 —
 (8,055)
Cash provided by (used in) activities of discontinued operations —
 —
 (22) —
 (22)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 11,071
 (11,199) (9,964) 3,619
 (6,473) (9,987)
(13,341)

15,251

—

(8,077)
Effect of exchange rate changes on cash and cash equivalents —
 —
 555
 —
 555
 —
 2
 555
 —
 557
NET CHANGE IN CASH AND CASH EQUIVALENTS 9,054
 (4,047) 42,844
 —
 47,851
Cash and cash equivalents at beginning of period 58,048
 50,023
 54,111
 —
 162,182
Cash and cash equivalents at end of period $67,102
 $45,976
 $96,955
 $—
 $210,033
Less net cash provided by (used in) discontinued operations —
 —
 (32,930) —
 (32,930)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (21,464)
(21,636)

11,799
 —
 (31,301)
Cash, cash equivalents and restricted cash at beginning of period 56,033
 52,239
 95,130
 —
 203,402
Cash, cash equivalents and restricted cash at end of period $34,569

$30,603


$106,929

$—

$172,101

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 20162017

In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:                    
Cash provided by (used in) operating activities $(28,642) $21,460
 $10,210
 $3,589
 6,617
Cash provided by (used in) activities of continuing operations $(4,815) $17,183
 $47,644
 $(16,076) 43,936
Cash provided by (used in) activities of discontinued operations —
 —
 11,335
 —
 11,335
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (4,815) 17,183
 58,979
 (16,076) 55,271
                    
CASH FLOWS FROM INVESTING ACTIVITIES                    
Capital expenditures (46) (12,790) (9,336) —
 (22,172) (319) (16,975) (6,297) —
 (23,591)
Proceeds from the sale of long-lived assets —
 4,000
 9
 —
 4,009
Proceeds from the sale of assets 8,916
 6,151
 (48) —
 15,019
Purchase of investments (7) —
 —
 —
 (7) (1,016) —
 —
 —
 (1,016)
Sales and maturities of investments 501
 496
 —
 —
 997
Sales of investments 9,157
 863
 —
 —
 10,020
Other (1,539) 107
 (41) —
 (1,473) 46
 —
 (60) —
 (14)
Investments in consolidated subsidiaries 3,420
 8,179
 —
 (11,599) —
 (12,454) (70) 67
 12,457
 —
Cash provided by (used in) activities of continuing operations 4,330
 (10,031) (6,338) 12,457
 418
Cash provided by (used in) activities of discontinued operations —
 —
 (388) —
 (388)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,329
 (8) (9,368) (11,599) (18,646) 4,330
 (10,031) (6,726) 12,457
 30
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Payments on debt, capital leases, and associated costs (250) (830) (4,891) —
 (5,971) —
 (1,874) (1,332) —
 (3,206)
Gold production royalty payments —
 —
 (9,131) —
 (9,131)
Net intercompany financing activity (7,879) (24,965) 24,834
 8,010
 —
 14,318
 (9,325) (8,612) 3,619
 —
Other (280) —
 —
 —
 (280) (3,247) —
 —
 —
 (3,247)
Cash provided by (used in) activities of continuing operations 11,071
 (11,199) (9,944) 3,619
 (6,453)
Cash provided by (used in) activities of discontinued operations —
 —
 (20) —
 (20)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (8,409) (25,795) 10,812
 8,010
 (15,382) 11,071
 (11,199) (9,964) 3,619
 (6,473)
Effect of exchange rate changes on cash and cash equivalents —
 4
 82
 —
 86
 —
 —
 555
 —
 555
NET CHANGE IN CASH AND CASH EQUIVALENTS (34,722) (4,339) 11,736
 —
 (27,325)
Cash and cash equivalents at beginning of period 96,123
 34,228
 70,363
 —
 200,714
Cash and cash equivalents at end of period $61,401
 $29,889
 $82,099
 $—
 $173,389
Less net cash provided by (used in) discontinued operations —
 —
 5,527
 —
 5,527
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 10,586
 (4,047) 37,317
 —
 43,856
Cash, cash equivalents and restricted cash at beginning of period 66,337
 50,023
 10,241
 —
 126,601
Cash, cash equivalents and restricted cash at end of period $76,923
 $45,976
 $47,558
 $—
 $170,457



Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 20172018
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS                
CURRENT ASSETS                    
Cash and cash equivalents $67,102
 $45,976
 $96,955
 $—
 $210,033
 $22,111
 $30,603
 $106,929
 $—
 $159,643
Receivables (12) 9,084
 57,992
 —
 67,064
 15,895
 5,084
 14,885
 —
 35,864
Ore on leach pads —
 66,585
 —
 —
 66,585
 —
 75,584
 —
 —
 75,584
Inventory —
 38,295
 35,465
 —
 73,760
 —
 31,512
 30,211
 —
 61,723
Prepaid expenses and other 7,719
 3,699
 11,032
 —
 22,450
 8,892
 3,193
 6,118
 —
 18,203
 74,809
 163,639
 201,444
 —
 439,892
 46,898
 145,976
 158,143
 —
 351,017
NON-CURRENT ASSETS                    
Property, plant and equipment, net 3,217
 146,122
 73,278
 —
 222,617
 3,141
 165,578
 97,438
 —
 266,157
Mining properties, net 4,000
 202,397
 342,810
 —
 549,207
 6,980
 219,000
 617,841
 —
 843,821
Ore on leach pads —
 72,461
 —
 —
 72,461
 —
 67,430
 —
 —
 67,430
Restricted assets 11,701
 226
 7,027
 —
 18,954
 14,352
 227
 7,537
 —
 22,116
Equity securities 450
 3,346
 —
 —
 3,796
Equity and debt securities 36,772
 545
 —
 —
 37,317
Receivables —
 —
 15,558
 —
 15,558
 24,047
 —
 31,381
 —
 55,428
Net investment in subsidiaries 274,724
 11,720
 (624) (285,820) —
 423,448
 332
 694
 (424,474) —
Other 216,386
 10,009
 5,256
 (216,386) 15,265
 317,146
 11,820
 3,431
 (313,748) 18,649
TOTAL ASSETS $585,287
 $609,920
 $644,749
 $(502,206) $1,337,750
 $872,784
 $610,908
 $916,465
 $(738,222) $1,661,935
                    
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
CURRENT LIABILITIES                    
Accounts payable $1,547
 $21,364
 $24,459
 $—
 $47,370
 $3,419
 $21,634
 $19,811
 $—
 $44,864
Other accrued liabilities 7,234
 9,555
 21,210
 —
 37,999
 16,643
 12,059
 76,447
 —
 105,149
Debt —
 7,852
 5,599
 —
 13,451
 —
 9,977
 7,063
 —
 17,040
Royalty obligations —
 4,961
 —
 —
 4,961
Reclamation —
 2,754
 850
 —
 3,604
 —
 2,313
 1,464
 —
 3,777
 8,781
 46,486
 52,118
 —
 107,385
 20,062
 45,983
 104,785
 —
 170,830
NON-CURRENT LIABILITIES                    
Debt 176,114
 23,288
 222,609
 (216,386) 205,625
 360,280
 31,116
 319,336
 (313,748) 396,984
Royalty obligations —
 4,316
 —
 —
 4,316
Reclamation —
 76,443
 21,152
 —
 97,595
 —
 83,392
 35,762
 —
 119,154
Deferred tax liabilities 9,072
 6,354
 60,937
 —
 76,363
 2,641
 4,978
 97,605
 —
 105,224
Other long-term liabilities 2,407
 4,756
 52,683
 —
 59,846
 2,602
 2,751
 50,079
 —
 55,432
Intercompany payable (receivable) (397,707) 326,814
 70,893
 —
 —
 (327,111) 307,016
 20,095
 —
 —
 (210,114) 441,971
 428,274
 (216,386) 443,745
 38,412
 429,253
 522,877
 (313,748) 676,794
STOCKHOLDERS’ EQUITY                    
Common stock 1,815
 250
 191,613
 (191,863) 1,815
 1,862
 19,630
 195,020
 (214,650) 1,862
Additional paid-in capital 3,314,644
 181,683
 1,809,557
 (1,991,240) 3,314,644
 3,355,710
 145,024
 1,882,610
 (2,027,634) 3,355,710
Accumulated deficit (2,526,761) (57,455) (1,836,813) 1,894,268
 (2,526,761) (2,542,899) (28,982) (1,788,827) 1,817,810
 (2,542,898)
Accumulated other comprehensive income (loss) (3,078) (3,015) —
 3,015
 (3,078) (363) —
 —
 —
 (363)
 786,620
 121,463
 164,357
 (285,820) 786,620
 814,310
 135,672
 288,803
 (424,474) 814,311
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $585,287
 $609,920
 $644,749
 $(502,206) $1,337,750
 $872,784
 $610,908
 $916,465
 $(738,222) $1,661,935

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 20162017
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS                
CURRENT ASSETS                    
Cash and cash equivalents $58,048
 $50,023
 $54,111
 $—
 $162,182
 $44,662
 $52,239
 $95,131
 $—
 $192,032
Receivables 12
 6,865
 53,554
 —
 60,431
 137
 7,922
 11,010
 —
 19,069
Ore on leach pads —
 64,167
 —
 —
 64,167
 —
 73,752
 —
 —
 73,752
Inventory —
 49,393
 56,633
 —
 106,026
 —
 29,769
 28,461
 —
 58,230
Prepaid expenses and other 3,803
 1,459
 12,719
 —
 17,981
 7,824
 2,816
 4,413
 —
 15,053
Assets held for sale —
 —
 91,421
 —
 91,421
 61,863
 171,907
 177,017
 —
 410,787
 52,623
 166,498
 230,436
 —
 449,557
NON-CURRENT ASSETS                    
Property, plant and equipment, net 3,222
 139,885
 73,689
 —
 216,796
 4,007
 161,487
 89,243
 —
 254,737
Mining properties, net —
 195,791
 362,664
 —
 558,455
 —
 216,281
 613,288
 —
 829,569
Ore on leach pads —
 67,231
 —
 —
 67,231
 —
 65,393
 —
 —
 65,393
Restricted assets 10,170
 226
 7,201
 —
 17,597
 13,251
 227
 7,369
 —
 20,847
Equity securities —
 4,488
 —
 —
 4,488
Equity and debt securities 33,569
 1,268
 —
 —
 34,837
Receivables —
 —
 30,951
 —
 30,951
 —
 —
 28,750
 —
 28,750
Deferred tax assets —
 —
 191
 (191) —
Net investment in subsidiaries 273,056
 11,650
 —
 (284,706) —
 422,074
 223
 (18) (422,279) —
Other 221,381
 9,263
 3,153
 (221,193) 12,604
 320,335
 11,040
 2,854
 (316,744) 17,485
TOTAL ASSETS $569,692
 $600,441
 $654,866
 $(506,090) $1,318,909
 $845,859
 $622,417
 $971,922
 $(739,023) $1,701,175
                    
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
CURRENT LIABILITIES                    
Accounts payable $2,153
 $24,921
 $26,261
 $—
 $53,335
 $3,607
 $24,534
 $20,451
 $—
 $48,592
Other accrued liabilities 12,881
 13,664
 16,198
 —
 42,743
 13,205
 19,262
 62,463
 —
 94,930
Debt —
 6,516
 5,523
 —
 12,039
 —
 9,215
 21,538
 —
 30,753
Royalty obligations —
 4,995
 —
 —
 4,995
Reclamation —
 2,672
 850
 —
 3,522
 —
 2,313
 1,464
 —
 3,777
Liabilities held for sale —
 —
 50,677
 —
 50,677
 15,034
 52,768
 48,832
 —
 116,634
 16,812
 55,324
 156,593
 —
 228,729
NON-CURRENT LIABILITIES                    
Debt 175,991
 15,214
 229,036
 (221,384) 198,857
 345,088
 28,313
 323,912
 (316,744) 380,569
Royalty obligations —
 4,292
 —
 —
 4,292
Reclamation —
 75,183
 20,621
 —
 95,804
 —
 82,021
 35,034
 —
 117,055
Deferred tax liabilities 13,810
 6,179
 54,809
 —
 74,798
 4,110
 5,127
 95,911
 —
 105,148
Other long-term liabilities 1,993
 4,750
 53,294
 —
 60,037
 2,311
 3,063
 49,323
 —
 54,697
Intercompany payable (receivable) (405,623) 336,813
 68,810
 —
 —
 (337,439) 317,759
 19,680
 —
 —
 (213,829) 442,431
 426,570
 (221,384) 433,788
 14,070
 436,283
 523,860
 (316,744) 657,469
STOCKHOLDERS’ EQUITY                    
Common stock 1,809
 250
 197,913
 (198,163) 1,809
 1,856
 19,630
 195,020
 (214,650) 1,856
Additional paid-in capital 3,314,590
 181,009
 1,864,261
 (2,045,270) 3,314,590
 3,357,345
 149,194
 1,885,046
 (2,034,240) 3,357,345
Accumulated deficit (2,545,424) (73,529) (1,882,710) 1,956,239
 (2,545,424) (2,546,743) (34,551) (1,788,597) 1,823,148
 (2,546,743)
Accumulated other comprehensive income (loss) (2,488) (2,488) —
 2,488
 (2,488) 2,519
 (3,463) —
 3,463
 2,519
 768,487
 105,242
 179,464
 (284,706) 768,487
 814,977
 130,810
 291,469
 (422,279) 814,977
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $569,692
 $600,441
 $654,866
 $(506,090) $1,318,909
 $845,859
 $622,417
 $971,922
 $(739,023) $1,701,175

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 1920 – COMMITMENTS AND CONTINGENCIES
Labor Union Contract
The Company maintains a labor agreement with Sindicato de Trabajadores Mineros de la Empresa Manquiri S.A. at the San Bartolomé mine in Bolivia. The San Bartolomé mine labor agreement, which became effective January 28, 2010, is currently active and does not have a fixed term. At March 31, 2017, approximately 10% of the Company’s global labor force was covered by this collective bargaining agreement. The Company cannot predict whether this agreement will be renewed on similar terms or at all, whether future labor disruptions will occur or, if disruptions do occur, how long they will last.
Rochester Production Royalty
Effective January 2014, Coeur Rochester is obligated to pay a 3.4% net smelter returns royalty on up to 39.4 million silver equivalent ounces produced and sold from a portion of the Rochester mine, payable on a quarterly basis. For each calendar quarter, the royalty is payable on the actual sales prices received, less refining and related costs, of gold and silver produced and sold from the applicable portions of the Rochester mine. Changes in silver and gold prices and the Company’s mine plan result in the recognition of mark-to-market gains or losses in Fair value adjustments, net. At March 31, 2017, a total of 15.9 million silver equivalent ounces remain outstanding under the obligation.
Palmarejo Gold Stream
Effective August 2016, Coeur Mexicana, S.A. de C.V. (“Coeur Mexicana”), a subsidiary of Coeur, sells 50% of Palmarejo gold production (excluding production from the recentlyParamount properties acquired Paramount properties)in 2015) to a subsidiary of Franco-Nevada Corporation under a gold stream agreement for the lesser of $800 or spot price per ounce. Previously,In 2015, 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 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.  As of March 31, 2018, the remaining unamortized balance was $14.3 million.
Bolivian Temporary RestrictionSilvertip Contingent Consideration
A total of up to $50.0 million of contingent consideration, payable in cash and common stock, is payable in conjunction with the October 2017 Silvertip acquisition. The contingent consideration is based on Mining above 4,400 Meters
In October 2009, the Bolivian state-ownedachievement of two milestones, which the Company has determined to be probable at March 31, 2018. The first milestone payment of $25.0 million is contingent upon receipt of a permit expansion for a sustained mining organization, COMIBOL, announced by resolution that it was temporarily suspending mining activities above the elevationand milling rate of 4,400 meters above sea level while stability studies of Cerro Rico mountain are undertaken.1,000 tonnes per day. The Company holds rights to mine above this elevation under valid contracts with COMIBOL. The stability studies have been completed and officiallypermit application must be submitted to the Bolivian mining technical authorities. Accordingly,British Columbia Ministry of Energy and Mining no later than June 2018. The second milestone payment of up to $25.0 million is contingent upon the COMIBOL suspension has expiredamount of resource tonnes added as of December 31, 2019. The maximum payment of $25.0 million can be earned if the total resource reaches 3.7 million tonnes. The former JDS Silver Holdings Ltd. shareholders will receive $5.0 million for a total resource of at least 2.5 million tonnes and $5.0 million for every 0.3 million tonnes over 2.5 million tonnes up to 3.7 million tonnes.

NOTE 21 – DISCONTINUED OPERATIONS
In December 2017, the Company and certain of its subsidiaries entered into a definitive agreement (as amended, the “Agreement”) to sell all of the outstanding capital stock of Manquiri, which is the operator of the San Bartolomé mine and processing facility (the “Manquiri Divestiture”). On February 28, 2018, the Manquiri Divestiture was completed, and, in accordance with the termsAgreement, Manquiri was sold to Ag-Mining Investments, AB, a privately-held Swedish company owned by a group of individuals with extensive mining experience in Latin America.
Coeur and its subsidiaries received the following consideration:
2.0% net smelter returns royalty (the “NSR”) payable to Coeur on all metals processed through the San Bartolomé Mine’s processing facility, commencing immediately upon the closing of the resolution. Transaction, valued at $7.1 million.
Pre-closing value added tax refunds valued at $12.7 million that will be collected or received by Manquiri in the future will be paid to Coeur (net of collection costs).
Eighteen-month promissory notes valued at $26.9 million payable to Coeur and certain of its subsidiaries representing Manquiri’s cash and cash equivalents on the date of closing of the Manquiri Divestiture, and providing for repayment beginning in October 2018.
The Company is not currently mining aboverecognized a liability of approximately $5.7 million for certain post-closing covenants, guaranties and indemnification obligations on the 4,400 meter level.
If COMIBOL decides to affirmatively adopt a new resolution to restrict access above the 4,400 meter level,part of the Company may needpursuant to further write down the carrying valueAgreement

The sale of Manquiri resulted in a gain of $1.5 million, which is included in Income (loss) from discontinued operations.     
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The sale of Manquiri and San Bartolomé is expected to have a major effect on the Company's results and operations. Accordingly, San Bartolomé’s operations for the three months ended March 31, 2018 and 2017 are classified on the consolidated statements of operations and comprehensive income (loss) as Income (loss) from discontinued operations. The major classes of line items constituting the pretax profit or loss for the three months ended March 31, 2018 and 2017 are as follows:
 Three months ended March 31,
 2018 2017
Revenue$12,346
 $20,584
COSTS AND EXPENSES   
Costs applicable to sales(1)
12,269
 18,222
Amortization—
 1,411
General and administrative41
 8
Pre-development, reclamation, and other265
 744
OTHER INCOME (EXPENSE), NET   
Interest expense, net of capitalized interest(3) (6)
Other, net(260) 340
Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)(492) 533
Pretax gain on the disposal of the discontinued operation1,525
 —
Total pretax gain or loss on discontinued operations1,033
 533
Income and mining tax (expense) benefit(483) (169)
Income (loss) from discontinued operations$550
 $364
(1) Excludes amortization.
Net cash used in operating activities from San Bartolomé was $2.7 million for the three months ended March 31, 2018 compared to net cash provided by operating activities of $11.3 million for the three months ended March 31, 2017, respectively. Net cash used in investing activities from San Bartolomé were $28.5 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.

NOTE 22 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION
Accrued liabilities and other consist of the asset. Whilefollowing:
 March 31, 2018 December 31, 2017
Accrued salaries and wages$15,552
 $26,559
Income and mining taxes36,642
 25,788
Silvertip contingent consideration24,543
 24,393
Accrued operating costs17,174
 12,323
Taxes other than income and mining5,644
 4,354
Accrued interest payable5,594
 1,513
Accrued liabilities and other$105,149
 $94,930

The following table provides a portionreconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the Company’s proven and probable reserves relate to material abovesame such amounts shown in the 4,400 meter level at San Bartolomé, so long as operations remain suspended, there is a risk that silver may not be produced from this material at expected levels or at all, particularly given the remaining anticipated mine lifestatement of this asset. It is also uncertain if any new mining or investment policies or shifts in political attitude may affect mining in Bolivia.cash flows:
 March 31, 2018 March 31, 2017
Cash and cash equivalents$159,643
 $160,636
Restricted cash equivalents12,458
 9,821
Total cash, cash equivalents and restricted cash shown in the statement of cash flows172,101
 170,457



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”“our”, or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of non-GAAP financial performancethese measures, please see “Non-GAAP Financial Performance Measures” at the end of this item.
We provide certain operational and financial data on a silver equivalent basis, converting gold to silver at a historical 60:1 ratio of silver ounces to gold ounces, unless otherwise noted. We also provide realized silver equivalent data determined by average spot silver and gold prices during the relevant period.
Overview
We are a gold, silver, zinc and silverlead producer with mines located in the United States, Mexico and BoliviaCanada and exploration projects in the United States and Mexico. The Palmarejo complex, Rochester, Kensington Wharf, and San BartoloméWharf mines constitute our principal sources of revenue.
In October 2017, the Company added a mine to Coeur’s North America-focused platform with the acquisition of the high-grade silver-zinc-lead Silvertip mine located in northern British Columbia, Canada. The Silvertip mine commenced milling in the first quarter of 2018, and is expected to commence commercial production in the second quarter of 2018. In February 2018, the Company also ownscompleted the Endeavor silver stream.Manquiri Divestiture, which we determined to represent a strategic shift to a North America-focused mining portfolio with a major effect on the Company’s results and operations; therefore, San Bartolomé’s results of operations are reported as discontinued operations for all periods. In the following discussion and analysis, the operating statistics, results of operations, cash flows and financial condition that we present and discuss are those of our continuing operations unless otherwise indicated.
The Company's strategy is to discover, acquire, develop and operate low-cost silver and gold mines, which may include base metals such as zinc and lead, that produce long-term cash flow, provide opportunities for growth through continued exploration, and generate superior and sustainable returns for stockholders. Management focuses on maximizing net cash flow through identifying and implementing revenue enhancement opportunities, reducing operating and non-operating costs, exercising consistent capital discipline, and efficient working capital management.
First Quarter Highlights
Production from continuing operations of 9.28.3 million silver equivalent ounces, consisting of 3.93.2 million silver ounces and 88,21885,383 gold ounces
Sales from continuing operations of 11.18.4 million silver equivalent ounces, consisting of 4.53.2 million silver ounces and 110,87487,153 gold ounces
Net income from continuing operations of $18.7$0.7 million ($0.100.00 per share) and adjusted net income of $7.0$0.7 million ($0.040.00 per share) (see “Non-GAAP Financial Performance Measures”)
Costs applicable to sales from continuing operations were $11.39$9.77 per silver equivalent ounce ($10.648.55 per average spot silver equivalent ounce) and $788$970 per gold equivalent ounce (see “Non-GAAP Financial Performance Measures”)
All-in sustaining costs from continuing operations were $15.01$17.33 per silver equivalent ounce ($13.65($14.44 per average spot silver equivalent ounce) (see “Non-GAAP Financial Performance Measures”)
Operating cash flow from continuing operations of $55.3$15.5 million and adjusted EBITDA from continuing operations of $56.6$49.5 million (see “Non-GAAP Financial Performance Measures”)
Sold the Joaquin silver-gold exploration project for consideration of $27.4 million and retained a 2.0% NSR royalty
Cash and cash equivalents of $210.0$159.6 million at March 31, 20172018
Completed the Manquiri Divestiture for total consideration of $46.7 million consisting of a 2.0% NSR valued at $7.1 million, pre-closing value added tax refunds valued at $12.7 million payable to the Company, and $26.9 million of promissory notes payable in eighteen months to the Company, with payments beginning in October 2018


Selected Financial and Operating Results
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Financial Results from Continuing Operations:   
Metal sales$206,138
 $146,636
$163,267
 $185,554
Net income (loss)$18,663
 $(20,396)$691
 $18,299
Net income (loss) per share, diluted$0.10
 $(0.14)$0.00
 $0.10
Adjusted net income (loss)(1)
$6,987
 $(10,459)$680
 $6,766
Adjusted net income (loss) per share, diluted(1)
$0.04
 $(0.06)$0.00
 $0.04
EBITDA(1)
$73,399
 $20,794
$49,382
 $71,449
Adjusted EBITDA(1)
$56,585
 $37,398
$49,524
 $54,514
Operating Results from Continuing Operations:   
Silver ounces produced3,932,376
 3,372,475
3,182,110
 2,717,869
Gold ounces produced88,218
 78,072
85,383
 88,218
Silver equivalent ounces produced9,225,456

8,056,795
8,305,090

8,010,949
Silver ounces sold4,473,712
 3,529,502
3,160,913
 3,325,706
Gold ounces sold110,874
 79,091
87,153
 110,874
Silver equivalent ounces sold11,126,126
 8,274,952
8,390,090
 9,978,120
Average realized price per silver ounce$17.61
 $15.16
$16.70
 $17.49
Average realized price per gold ounce$1,149
 $1,178
$1,268
 $1,149
Costs applicable to sales per silver equivalent ounce(1)
$11.39
 $12.36
$9.77
 $10.61
Costs applicable to sales per average spot silver equivalent ounce(1)
$10.64
 $11.28
$8.55
 $9.80
Costs applicable to sales per gold equivalent ounce(1)
$788
 $728
$970
 $788
All-in sustaining costs per silver equivalent ounce(1)
$15.01
 $16.28
$17.33
 $14.77
All-in sustaining costs per average spot silver equivalent ounce(1)
$13.65
 $13.71
$14.44
 $13.29
Financial and Operating Results from Discontinued Operations:(2)
   
Income (loss) from discontinued operations$550
 $364
Silver ounces produced643,078
 1,214,507
Gold ounces produced78
 —
Silver equivalent ounces produced647,758
 1,214,507
Silver ounces sold704,479
 1,148,006
Gold ounces sold292
 —
Silver equivalent ounces sold721,999
 1,148,006
(1)
See “Non-GAAP Financial Performance Measures.”
(2)Reported production and financial results include operations through February 28, 2018.


Consolidated Financial Results
Three Months Ended March 31, 20172018 compared to Three Months Ended March 31, 20162017
Net Income (Loss) from Continuing Operations
Net income from continuing operations was $18.7$0.7 million ($0.00 per share) compared to Net income of $18.3 million ($0.10 per share) compared to a Net loss of $20.4 million ($0.14 per share).  The increase decreaseinNet incomefrom continuing operations is primarily due to lower ounces sold and a $21.1 million gain on the sale of the Joaquin project higher silver and gold production, higher average realized silver prices, lower all-in sustaining costs per silver equivalent ounce, and lower interest expense,in the first quarter of 2017, partially offset by lower average realized gold prices and higher general and administrative and exploration expense.operating margin per consolidated silver equivalent ounce.
Revenue
Metal sales increasedwere lower due to higher silver and gold production, a reductionsales in metal inventorythe first quarter of 2017 resulting from holdover ounces from 2016 and a 16%decrease in average realized silver prices of 5%, partially offset by an increase in average realized silver prices.gold prices of 10%. The Company sold 4.53.2 million silver ounces and 87,153 gold ounces, compared to sales of 3.3 million silver ounces and 110,874 gold ounces, compared to sales of 3.5 million silver ounces and 79,091 gold ounces. Gold contributed 62%68% of sales and silver contributed 38%32%, compared to 64%69% of sales from gold and 36%31% from silver. Royalty revenue was lower due to the Company’s divestiture of several non-core royalty assets in 2016.
Costs Applicable to Sales
Costs applicable to sales increaseddecreased due to higherlower silver and gold ounces sold.sold and lower costs applicable to sales per silver equivalent ounce, partially offset by higher costs applicable to sales per gold equivalent ounce. For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization
Amortization increased $12.1decreased $7.9 million or 43%20%, primarily due to higherlower silver and gold ounces sold, partially offset by higher amortizable mining properties and equipment at Rochester and Kensington.sold.
Expenses
General and administrative expenses increased 22%decreased $1.3 million or 13% due to higherlower compensation, severance and professional service costs.
Exploration expense increased $3.5$1.4 million or 27%, due to the Company’s expansion of near-mine drilling activitiesefforts at Palmarejo, Kensington, and Rochester as well as regional exploration with a focusfocused on projects in Nevada and Chihuahua, Mexico.
Pre-development, reclamation, and other expenses increased 9%$0.4 million or 10% due to $4.6 million as a result of additional workhigher asset retirement obligation accretion at La Preciosa.Palmarejo.
Other Income and Expenses
Non-cash fair value adjustments, net, were a lossgain of $1.2$5.0 million compared to a loss of $8.7$1.2 million primarily due to the terminationunrealized gains of the Palmarejo gold production royalty (in the third quarter$4.8 million on equity securities and a favorable fair value adjustment on zinc hedges. Effective January 1, 2018, as a result of 2016) and the lesser impact ofASU 2016-01, changes in future metal prices on the Rochester 3.4% NSR royalty obligation.fair value of equity investments are recognized as fair value adjustments instead of other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss).
Interest expense (net of capitalized interest of $0.4$0.1 million) decreasedincreased to $3.6$6.0 million from $11.1$3.6 million, primarily due to higher average debt levels related to the repayment of the Term Loan, redemption of $200.8 million of2024 Senior Notes and termination of the Palmarejo gold production royalty obligation in July 2016.Facility.
Other, net increased by $19.8decreased to $0.2 million, primarily due to a $21.1 million pre-tax gain on the sale of the Joaquin project in Argentina.Argentina in the first quarter of 2017.
Income and Mining Taxes
During the first quarter of 2017,2018, the Company reported estimated income and mining tax expense of approximately $11.0$11.9 million resulting in an effective tax rate of 37.2%94.5%. This compares to estimated income and mining tax expense of $2.1$10.9 million for an effective tax rate of 11.5%37.3% during the first quarter of 2016.2017.

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 March 31,
2017 20162018 2017
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$20,714
$(1,964) $(9,361)$(532)$1,187
$517
 $20,653
$(1,827)
Argentina(328)1,124
 (1,015)1,543
254
10
 (328)1,124
Mexico8,650
(9,923) (7,509)17
13,126
(13,222) 8,650
(9,923)
Bolivia471
(31) 2,047
(1,570)
Other jurisdictions202
(252) (2,452)(1,564)(1,927)746
 202
(252)
$29,709
$(11,046) $(18,290)$(2,106)$12,640
$(11,949) $29,177
$(10,878)

The Company’s effective tax rate is impacted by recurring and nonrecurring items. These items include foreign exchange rates on deferred tax balances, uncertain tax positions, and the full valuation allowance on the deferred tax assets relating to losses in the United States and certain foreign jurisdictions. During the first quarter of 2017, foreign exchange increased income and mining tax expense by $5.6 million, predominately due to the strength of the Mexican peso. Additionally, the Company recognized $1.8 million income and mining tax expense from the sale of the Joaquin project. Also during the first quarter, favorable operating results at Palmarejo contributed to higher income and mining tax expense. The Company’s consolidated effective income and mining tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in ourthe consolidated effective tax rate.

rate, along with mining taxes, uncertain tax positions, and a full valuation allowance on deferred tax assets related to losses in the United States and certain foreign jurisdictions. Fluctuations in foreign exchange rates on deferred tax balances increased income and mining tax expense by $3.6 million and $5.6 million for the three months ended March 31, 2018 and 2017, respectively, predominately due to the strengthening of the Mexican Peso. Additionally, favorable operating results at Palmarejo contributed to higher income and mining tax expense in Mexico.
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 risk factors that could impact the Company’s ability to realize its deferred tax assets.
2017Income (loss) from Discontinued Operations
In respect of San Bartolomé’s operating results, income increased $0.2 million, primarily due to a $1.5 million gain on the sale of San Bartolomé in the first quarter of 2018, partially offset by lower production and higher unit costs.
2018 Outlook
The Company is maintaining its full-year 20172018 production and related cost guidance. Exploration expense is expected to increase $6 million to $29 - $31 million to accelerate the expansion of Kensington’s Jualin deposit, offset by a $6 million decrease in underground capital development at Kensington, resulting in expected capital expenditures of $109 - $129 million.

Results of Continuing Operations
The Company produced 3.93.2 million ounces of silver and 85,383 ounces of gold in the three months ended March 31, 2018, compared to 2.7 million ounces of silver and 88,218 ounces of gold in the three months ended March 31, 2017, compared2017. Silver production increased 17% due to 3.4 million ounces ofhigher grade at Palmarejo and higher placed tons at Rochester. Gold production decreased 3% due to lower grade at Wharf, lower mill throughput at Kensington and lower recovery at Palmarejo.
Costs applicable to sales were $9.77 per silver equivalent ounce ($8.55 per average spot silver equivalent ounce) and 78,072 ounces of$970 per gold equivalent ounce in the three months ended March 31, 2016. Silver production increased 17% due2018 compared to higher mill throughput and grade at Palmarejo and timing of leach pad recoveries at Rochester. Gold production increased 13% due to higher mill throughput,    grade and recovery at Palmarejo, partially offset by lower grade at Kensington.
Costs applicable to sales were $11.39$10.61 per silver equivalent ounce ($10.649.80 per average spot silver equivalent ounce) and $788 per gold equivalent ounce in the three months ended March 31, 2017 compared to $12.36 per silver equivalent ounce ($11.28 per average spot silver equivalent ounce) and $728 per gold equivalent ounce in the three months ended March 31, 2016.2017. Costs applicable to sales per silver equivalent ounce decreased 8% in the three months ended March 31, 2017 due to lower unit costs at Palmarejo partially offset by higher unitwhile costs at San Bartolomé. Costs applicable to sales per gold equivalent ounce increased 8%23% in the three months ended March 31, 20172018 due to higher unit costs at Kensington.Kensington and Wharf.
All-in sustaining costs were $15.01$17.33 per silver equivalent ounce ($13.6514.44 per average spot silver equivalent ounce) in the three months ended March 31, 2017,2018, compared to $16.28$14.77 per silver equivalent ounce ($13.7113.29 per average spot silver equivalent ounce) in the three months ended March 31, 2016.2017. The 8% decrease in all-in sustaining costs per silver equivalent ounce in 201717% increase was primarily due to lowerhigher costs applicable to sales per consolidated silver equivalent ounce and lowerhigher sustaining capital related to underground development at Palmarejo and Kensington, partially offset by higherlower general and administrative and exploration expense.costs.

Palmarejo
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Tons milled360,383
 246,533
359,893
 360,383
Silver ounces produced1,530,541
 933,369
2,013,239
 1,530,541
Gold ounces produced30,792
 14,668
29,896
 30,792
Silver equivalent ounces produced3,378,061
 1,813,449
3,806,999
 3,378,061
Costs applicable to sales per silver equivalent oz(1)
$9.71
 $12.36
$8.01
 $9.71
Costs applicable to sales per average spot silver equivalent oz(1)
$8.89
 $10.74
$6.94
 $8.89
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 20172018 compared to Three Months Ended March 31, 20162017
Silver equivalent production increased 86%13% due to higher mill throughput,mining rates from Independencia and higher silver and gold gradesgrade, partially offset by lower silver and gold recoveries.recovery. Metal sales were $77.7$70.0 million, or 38%43% of Coeur’s metal sales, compared with $29.8$77.7 million, or 21%43% of Coeur’s metal sales. Costs applicable to sales per ounce decreased 21%18% as a result of higher production, lower waste tons mined and favorable currency exchange rates.production. Amortization increaseddecreased to $20.2$16.3 million compared to $7.3$20.2 million, primarily due to higher production from Guadalupe and Independencia.life of mine reserves, partially offset by higher production. Capital expenditures were $6.2increased to $9.3 million as the Company continuesdue to underground development at Guadalupe and Independencia.

Rochester
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Tons placed3,513,708
 4,374,459
4,351,131
 3,513,708
Silver ounces produced1,127,322
 928,903
1,157,026
 1,127,322
Gold ounces produced10,356
 10,460
11,487
 10,356
Silver equivalent ounces produced1,748,682
 1,556,503
1,846,246
 1,748,682
Costs applicable to sales per silver equivalent oz(1)
$12.56
 $12.64
$13.59
 $12.56
Costs applicable to sales per average spot silver equivalent oz(1)
$11.80
 $11.20
$12.13
 $11.80
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 20172018 compared to Three Months Ended March 31, 20162017
Silver equivalent production increased 12%6% due to timing of recoveries,higher tons placed, partially offset by lower tons placed and lower silver and gold grades.grade. Metal sales were $39.0$33.5 million, or 19%21% of Coeur’s metal sales, compared with $30.0$39.0 million, or 20%21% of Coeur’s metal sales. Costs applicable to sales per silver equivalent ounce were generally consistent at $12.56 perincreased 8% due to lower silver equivalent ounce.ounces placed. Amortization increaseddecreased to $5.8$4.8 million due to lower ounces sold. Capital expenditures decreased to $2.6 million compared to $5.3 million due to higher silver production and amortizable mining properties and equipment. Capital expenditures increased to $10.6 million compared to $3.3 million due to the stagecompletion of the Stage IV leach pad expansion.expansion in 2017.
Kensington
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Tons milled165,895
 159,360
158,706
 165,895
Gold ounces produced26,197
 31,974
26,064
 26,197
Costs applicable to sales/oz(1)
$885
 $772
$1,031
 $885
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 20172018 compared to Three Months Ended March 31, 20162017
Gold production decreased 18% due to lower grades mined as a result of mine sequencing, partially offset by higher mill throughput.remained comparable. Metal sales were $38.0$36.3 million, or 18%22% of Coeur’s metal sales, compared to $35.7$38.0 million, or 24%20% of Coeur’s metal sales. Costs applicable to sales per ounce were 15%16% higher, primarily due to lower productionmill throughput, higher diesel costs, and higher diesel, contract services and other mining costs. Amortization wasdecreased to $6.7 million from $9.2 million compared to $8.3 million due to higher amortizable mining properties and equipment.lower ounces sold. Capital expenditures decreasedincreased to $5.5 million compared to $8.1$11.4 million due to less underground mine development.expansion of the site power plant.

Wharf
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Tons placed1,292,181
 974,663
1,076,395
 1,292,181
Gold ounces produced20,873
 20,970
17,936
 20,873
Silver ounces produced20,065
 12,980
11,845
 20,065
Gold equivalent ounces produced(1)
21,207

21,186
18,133

21,207
Costs applicable to sales per gold equivalent oz(1)
$662
 $669
$874
 $662
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 20172018 compared to Three Months Ended March 31, 20162017
Gold equivalent production remained comparable at 21,207 gold equivalent ounces.decreased 14% due to lower grade and lower tons placed. Metal sales were $30.3$23.4 million, or 15%14% of Coeur’s metal sales, compared to $27.9$30.3 million, or 19%16% of Coeur’s metal sales. Costs applicable to sales per gold equivalent ounce remained comparableincreased 32% due to lower production resulting from the completion of mining at $662 per gold equivalent ounce.the higher-grade Golden Reward deposit in 2017, higher pad unloading costs, and higher diesel costs. Amortization was $3.1$2.7 million compared to $4.1$3.1 million due to higher life of mine reserves.lower ounces sold. Capital expenditures were $0.9 million compareddecreased to $1.4$0.3 million.

San BartoloméEndeavor Silver Stream
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Tons milled384,267
 407,806
—
 45,340
Silver ounces produced1,214,507
 1,381,913
—
 39,941
Costs applicable to sales/oz(1)
$15.87
 $12.64
$—
 7.22
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31,In July 2017, comparedthe Company sold the Endeavor Silver Stream and our remaining portfolio of royalties for total consideration of $13.0 million to Three Months Ended March 31, 2016
Silver production decreased 12% due to drought conditions. Silver sales were $20.6 million, or 10%of Coeur’s metal sales, compared with $21.3 million, or 15% of Coeur’s metal sales. Costs applicable to sales per ounce increased due to lowerMetalla Royalty & Streaming Ltd. Reported production and higher mining and processing costs. Amortization was $1.4 million compared to $1.8 million due to lower production. Capital expenditures were $0.4 million compared to $0.5 million.
Endeavor Silver Stream
 Three months ended March 31,
 2017 2016
Tons milled45,340
 86,863
Silver ounces produced39,941
 115,310
Costs applicable to sales/oz(1)
7.22
 5.35
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31,financial results include operations through May 2017 compared to Three Months Ended March 31, 2016
Silver production at Endeavor decreased due to lower mining and mill throughput rates. Costs applicable to sales per ounce increased due to the impact of higher silver prices on the Company’s silver price sharing agreementin accordance with the Endeavor mine operator. Amortization was $0.1 million compared to $0.8 million due to lower production and lower amortizable mining properties.terms of the sale agreement.


Liquidity and Capital Resources

Cash and cash equivalents decreased $32.4 million in the three months ended March 31, 2018 as a result of pre-production capital expenditures to advance Silvertip toward commercial production, lower silver equivalent ounces sold, and higher costs applicable to sales per silver equivalent ounce, partially offset by higher average realized prices.
Cash Provided by Operating Activities from Continuing Operations
Net cash provided by operating activities for the three months ended March 31, 2018 and 2017 and 2016 was $55.3$15.5 million and $6.6$43.9 million, respectively, and was impacted by the following key factors:
Three months ended March 31,Three months ended March 31,
2017 20162018 2017
Consolidated silver equivalent ounces sold11,126,126
 8,274,952
8,390,090
 9,978,120
Average realized price per consolidated silver equivalent ounce(1)
$18.53
 $17.72
$19.46
 $18.60
Costs applicable to sales per consolidated silver equivalent ounce (1)
(11.93) (12.27)(11.84) (11.47)
Operating margin per consolidated silver equivalent ounce$6.60
 $5.45
$7.62
 $7.13
(1)See Non-GAAP Financial Performance Measures.
Three months ended March 31,Three months ended March 31,
In thousands2017 20162018 2017
Cash flow before changes in operating assets and liabilities$43,827
 $23,253
$33,440
 $43,290
Changes in operating assets and liabilities:      
Receivables13,106
 3,481
(1,691) 5,680
Prepaid expenses and other(4,299) 1,279
(5,635) (4,906)
Inventories14,292
 (7,822)(8,708) 15,171
Accounts payable and accrued liabilities(11,655) (13,574)(1,865) (15,299)
CASH PROVIDED BY OPERATING ACTIVITIES$55,271
 $6,617
Cash provided by continuing operating activities$15,541
 $43,936
Cash provided by operating activities increased $48.7decreased $28.4 million for the three months ended March 31, 20172018 compared to the three months ended March 31, 20162017 due to higherlower silver equivalent ounces sold, higher average realized prices, lower costs applicable to sales per consolidated silver equivalent ounce and favorableunfavorable working capital adjustments.adjustments, partially offset by higher average realized prices. Metal sales for the three months ended March 31, 2017 increased $59.52018 decreased $22.3 million, $53.1with $32.8 million due to higherlower silver equivalent ounces sold, and $6.4partially offset by $10.5 million due to higher average realized prices. The $11.4$17.9 million working capital increase in the three months ended March 31, 2018 was primarily due to an increase in inventories and prepaid assets and the timing on the collection of accounts receivable and VAT refunds, compared to the $0.6 million working capital decrease in the three months ended March 31, 2017, which was primarily due to thea reduction of precious metal inventoryinventories carried over from the fourth quarter of 2016 and the collection of accounts receivable, compared to the $16.6 million working capital increase in the three months ended March 31, 2016 due to an increase in ore on leach pads and the payment of accrued interest, payroll, and other benefits, partially offset by the collectiontiming of accounts receivable.payments.
Cash Used inProvided by (Used in) Investing Activities from Continuing Operations
Net cash used in investing activities in the three months ended March 31, 20172018 was $1.5$41.1 million compared to $18.6 million in the three months ended March 31, 2016, primarily due to proceeds from the salenet cash provided by investing activities of the Joaquin project, net of a retained 2.0% NSR, and sale of equity securities. The Company had capital expenditures of $24.0$0.4 million in the three months ended March 31, 2017, compared with $22.2primarily due to capital expenditures at Silvertip and the proceeds from the sale of the Joaquin project in the first quarter of 2017. The Company had capital expenditures of $42.3 million in the three months ended March 31, 2016.2018 compared with $23.6 million in the three months ended March 31, 2017. Capital expenditures in both periodsthe three months ended March 31, 2018 were primarily related to general pre-production capital spending at Silvertip and underground development at Silvertip, Palmarejo, and Kensington. Capital expenditures in the three months ended March 31, 2017 were primarily related to underground development at Palmarejo and Kensington.Kensington, and the Stage IV leach pad expansion at Rochester.
Cash Used in Financing Activities from Continuing Operations
Net cash used in financing activities in the three months ended March 31, 20172018 was $6.5$8.1 million compared to $15.4$6.5 million in the three months ended March 31, 2016. The Company’s Palmarejo gold production royalty obligation terminated July 2016 and Coeur Mexicana now sells 50% of Palmarejo gold production for2017. During the lesser of $800 or spot price per ounce under a gold stream agreement.three months ended March 31, 2018, the Company drew $15.0 million from the Facility to repay Silvertip’s debt obligation. In addition, the Company had higher tax withholdings on vested stock-based compensation awards during the three months ended March 31, 2017.2018.


Critical Accounting Policies and Accounting Developments
Please see Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES contained in the Company’s Form
10-K for the year ended December 31, 2017 (the “2017 10-K”) for the Company’s critical accounting policies and estimates.

Revenue Recognition
On January 1, 2018, the Company adopted the updated revenue guidance applicable under ASC 606 - Revenue from Contracts with Customers. The new guidance creates a five-step framework to determine revenue recognition:

1.Identify the contract with the customer
2.Identify the performance obligations
3.Determine the transaction price
4.Allocate the transaction price to the performance obligations
5.Recognize revenue when (or as) the entity satisfies a performance obligation
    
The Company produces doré and concentrate that is shipped to third-party refiners and smelters, respectively, for processing. The Company enters into contracts to sell its metal to various third-party customers which may include the refiners and smelters that process the doré and concentrate. The Company’s performance obligation in these transactions is generally the transfer of metal to the customer.

In the case of doré shipments, the company generally sells refined metal at market prices agreed upon by both parties. The Company also has the right, but not the obligation, to sell a portion of the anticipated refined metal in advance of being fully refined. When the Company sells refined metal or advanced metal, the performance obligation is satisfied when the metal is delivered to the customer. Revenue and Costs Applicable to Sales are recorded on a gross basis under these contracts at the time the performance obligation is satisfied.

Under the Company’s concentrate sales contracts with third-party smelters, metal prices are set on a specified future quotational period, typically one to three months, after the shipment date based on market prices. When the Company sells gold concentrate to the third-party smelters, the performance obligation is satisfied when the concentrate is loaded onto the third-party shipping vessel. The contracts, in general, provide for provisional payment based upon provisional assays and historical metal prices. Final settlement is based on the applicable price for the specified future quotational period and generally occurs three to six months after shipment. The Company’s provisionally priced sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of concentrates measured at the forward price at the time of sale. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through revenue each period until the date of final metal settlement.

The Company also sells concentrate under off-take agreements to third-party customers that are responsible for arranging the smelting of the concentrate. Prices are can either be fixed or based on a quotational period. The quotational period varies by contract, but is generally a one-month period following the shipment of the concentrate. The performance obligation is satisfied when the concentrate is loaded onto the third-party shipping vessel. The off-take agreement allows for the Company to sell concentrate in advance of shipment and results in the customer taking ownership of the concentrate prior to shipment.

For doré and off-take sales, the Company may incur a finance charge related to advance sales that is not considered significant and, as such, is not considered a separate performance obligation. In addition, the Company has elected to treat freight costs as a fulfillment cost under ASC 606 and not as a separate performance obligation.

The Company’s streaming agreement with a subsidiary of Franco-Nevada commenced in 2016 with a $20.0 million deposit paid by Franco-Nevada in exchange for the right and obligation to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with this deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The streaming 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.



Other Liquidity Matters
We believe that our liquidity and capital resources from U.S. operations are adequate to fund our U.S. operations and corporate activities. The Company has asserted 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 future cash interest payments, and/or amounts due at maturity or upon redemption, from time to time we may 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 regularly engage in conversations with our bondholders and 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 such transactions may occur at a substantial discount to the debt securities’ face amount. For additional information, please see the section titled “Risk Factors” included in Item 1A.

Critical Accounting Policies and Accounting Developments
Please see Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES contained in the Company’s Form
10-K for the year ended December 31, 2016 (the “2016 10-K”) for the Company’s critical accounting policies and estimates.



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 of our continuing operations in the tables below. For additional information regarding our discontinued operations, see Note 21 -- to the Condensed Consolidated Financial Statements. These measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Adjusted Net Income (Loss)
Management uses Adjusted net income (loss) to evaluate the Company’s operating performance, and to plan and forecast its operations. The Company believes the use of Adjusted net income (loss) reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management’s determination of the components of Adjusted net income (loss) are evaluated periodically and are based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. Adjusted net income (loss) is reconciled to Net income (loss) in the table below:
Three months ended March 31,Three months ended March 31,
In thousands except per share amounts2017 20162018 2017
Net income (loss)$18,663
 $(20,396)$1,241
 $18,663
Fair value adjustments1,200
 8,695
Impairment of marketable securities121
 —
Write-downs—
 4,446
(Income) loss from discontinued operations, net of tax(550) (364)
Fair value adjustments, net(4,987) 1,200
Impairment of equity and debt securities—
 121
Gain on sale of Joaquin project(21,138) —
—
 (21,138)
(Gain) loss on sale of assets and securities2,066
 (1,085)574
 2,066
Transaction costs—
 380
90
 —
Foreign exchange loss (gain)4,268
 (1,124)4,312
 4,411
Tax effect of adjustments(1)
1,807
 (1,375)—
 1,807
Adjusted net income (loss)$6,987
 $(10,459)$680
 $6,766
      
Adjusted net income (loss) per share - Basic$0.04
 $(0.06)$0.00
 $0.04
Adjusted net income (loss) per share - Diluted$0.04
 $(0.06)$0.00
 $0.04
(1)For the three months ended March 31, 2017, tax effect of adjustments of $1.8 million (14%) is primarily related to a taxable gain on the sale of assets and the Joaquin project. For the three months ended March 31, 2016, tax effect of adjustments of $1.4 million (-11%) is primarily related to thevaluation allowance impact from an asset write-down, partially offset by tax benefit from fair value adjustments.





EBITDA and Adjusted EBITDA
Management uses EBITDA to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company believes the use of EBITDA reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Adjusted EBITDA is a measure used in the Company’s2024 Senior Notes indentureIndenture and the Facility to determine our ability to make certain payments and incur additional indebtedness. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income (Loss) or Cash Flow from Operations as determined under GAAP. Other companies may calculate Adjusted EBITDA differently and those calculations may not be comparable to our presentation. Adjusted EBITDA is reconciled to Net income (loss) in the table below:
Three months ended March 31,Three months ended March 31,
In thousands except per share amounts2017 20162018 2017
Net income (loss)$18,663
 $(20,396)$1,241
 $18,663
(Income) loss from discontinued operations, net of tax(550) (364)
Interest expense, net of capitalized interest3,586
 11,120
5,965
 3,579
Income tax provision (benefit)11,046
 2,106
11,949
 10,878
Amortization40,104
 27,964
30,777
 38,693
EBITDA73,399

20,794
49,382

71,449
Fair value adjustments, net1,200
 8,695
(4,987) 1,200
Impairment of equity securities121
 —
Impairment of equity and debt securities—
 121
Foreign exchange (gain) loss(1,349) 164
670
 (1,206)
Gain on sale of Joaquin project(21,138) —
—
 (21,138)
(Gain) loss on sale of assets and securities2,066
 (1,085)574
 2,066
Transaction costs—
 380
90
 —
Asset retirement obligation accretion2,390
 2,060
2,669
 2,116
Inventory adjustments and write-downs(104) 1,944
1,126
 (94)
Write-downs—
 4,446
Adjusted EBITDA$56,585

$37,398
$49,524

$54,514
Costs Applicable to Sales and All-in Sustaining Costs

Management uses Costs applicable to sales (“CAS”) and All-in sustaining costs (“AISC”) 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 silver and gold, 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 converting the benefit from selling gold into silver equivalent ounces best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company. Other companies may calculate CAS and AISC differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit rather than converting to silver equivalent ounces, differences in the determination of sustaining capital expenditures, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.















Three Months Ended March 31, 20172018
 Silver Gold Total Silver Gold Total
In thousands except per ounce amounts Palmarejo Rochester San Bartolomé Endeavor Total Kensington Wharf Total  Palmarejo Rochester Total Kensington Wharf Total 
Costs applicable to sales, including amortization (U.S. GAAP) $63,151

$32,255
 $19,633
 $400
 $115,439
 $37,621
 $19,431
 $57,052
 $172,491
 $47,421

$29,136
 $76,557
 $35,347
 $17,966
 $53,313
 $129,870
Amortization 20,150
 5,816
 1,411
 113
 27,490
 9,178
 3,111
 12,289
 39,779
 16,325
 4,831
 21,156
 6,717
 2,657
 9,374
 30,530
Costs applicable to sales $43,001
 $26,439
 $18,222
 $287
 $87,949
 $28,443
 $16,320
 $44,763
 $132,712
 $31,096
 $24,305
 $55,401
 $28,630
 $15,309
 $43,939
 $99,340
Silver equivalent ounces sold 4,427,346
 2,104,209
 1,148,006
 39,765
 7,719,326
       11,126,126
 3,883,983
 1,789,007
 5,672,990
       8,390,090
Gold equivalent ounces sold           32,144
 24,636
 56,780
         27,763
 17,522
 45,285
  
Costs applicable to sales per ounce $9.71

$12.56
 $15.87
 $7.22
 $11.39
 $885
 $662
 $788
 $11.93
 $8.01

$13.59
 $9.77
 $1,031
 $874
 $970
 $11.84
                                
Costs applicable to sales per average spot ounce $8.89
 $11.80
 
 
 $10.64
 
 
 
 $10.85
 $6.94
 $12.13
 $8.55
 
 
 
 $9.87
                                
Costs applicable to sales                 $132,712
             $99,340
Treatment and refining costs                 1,616
             1,195
Sustaining capital(1)
                 11,600
             23,389
General and administrative                 10,133
             8,804
Exploration                 5,252
             6,683
Reclamation                 3,818
             4,532
Project/pre-development costs                 1,889
             1,421
All-in sustaining costs                 $167,020
             $145,364
Silver equivalent ounces sold                 7,719,326
             5,672,990
Kensington and Wharf silver equivalent ounces soldKensington and Wharf silver equivalent ounces sold             3,406,800
Kensington and Wharf silver equivalent ounces sold         2,717,100
Consolidated silver equivalent ounces soldConsolidated silver equivalent ounces sold               11,126,126
Consolidated silver equivalent ounces sold           8,390,090
All-in sustaining costs per silver equivalent ounceAll-in sustaining costs per silver equivalent ounce             $15.01
All-in sustaining costs per silver equivalent ounce         $17.33
                                
Consolidated silver equivalent ounces sold (average spot)Consolidated silver equivalent ounces sold (average spot)             12,235,897
Consolidated silver equivalent ounces sold (average spot)         10,066,759
All-in sustaining costs per average spot silver equivalent ounceAll-in sustaining costs per average spot silver equivalent ounce             $13.65
All-in sustaining costs per average spot silver equivalent ounce         $14.44
(1)Excludes development capital for Jualin Guadalupe South Portal and Rochester expansion permitting.Silvertip.

Three Months Ended March 31, 20162017
 Silver Gold   Silver Gold  
In thousands except per ounce amounts Palmarejo Rochester San Bartolomé Endeavor Total Kensington Wharf Total Total Palmarejo Rochester Endeavor Total Kensington Wharf Total Total
Costs applicable to sales, including amortization (U.S. GAAP) $28,327
 $27,798
 $19,251
 $955
 $76,331
 $32,767
 $19,512
 $52,279
 $128,610
 $63,151
 $32,255
 $400
 $95,806
 $37,621
 $19,431
 $57,052
 $152,858
Amortization 7,289
 5,313
 1,754
 299
 14,655
 8,349
 4,051
 12,400
 27,055
 20,150
 5,816
 113
 26,079
 9,178
 3,111
 12,289
 38,368
Costs applicable to sales $21,038
 $22,485
 $17,497
 $656
 $61,676
 $24,418
 $15,461
 $39,879
 $101,555
 $43,001
 $26,439
 $287
 $69,727
 $28,443
 $16,320
 $44,763
 $114,490
Silver equivalent ounces sold 1,702,290
 1,779,377
 1,384,391
 122,694
 4,988,752
       8,274,952
 4,427,346
 2,104,209
 39,765
 6,571,320
       9,978,120
Gold equivalent ounces sold           31,648
 23,122
 54,770
           32,144
 24,636
 56,780
  
Costs applicable to sales per ounce $12.36

$12.64

$12.64

$5.35

$12.36
 $772

$669

$728
 $12.27
 $9.71

$12.56

$7.22

$10.61
 $885

$662

$788
 $11.47
                                  
Costs applicable to sales per average spot ounce $10.74
 $11.20
 
 
 $11.28
       $10.34
 $8.89
 $11.80
 
 $9.80
       $10.33
                                  
Costs applicable to sales                 $101,555
               $114,490
Treatment and refining costs                 1,158
               1,616
Sustaining capital(1)
                 16,710
               11,191
General and administrative                 8,276
               10,125
Exploration                 1,731
               5,252
Reclamation                 3,759
               3,338
Project/pre-development costs                 1,558
               1,419
All-in sustaining costs                 $134,747
               $147,431
Silver equivalent ounces sold                 4,988,752
               6,571,320
Kensington and Wharf silver equivalent ounces soldKensington and Wharf silver equivalent ounces sold             3,286,200
Kensington and Wharf silver equivalent ounces sold           3,406,800
Consolidated silver equivalent ounces soldConsolidated silver equivalent ounces sold               8,274,952
Consolidated silver equivalent ounces sold             9,978,120
All-in sustaining costs per silver equivalent ounceAll-in sustaining costs per silver equivalent ounce             $16.28
All-in sustaining costs per silver equivalent ounce           $14.77
                                  
Consolidated silver equivalent ounces sold (average spot)Consolidated silver equivalent ounces sold (average spot)             9,828,373
Consolidated silver equivalent ounces sold (average spot)           11,093,378
All-in sustaining costs per average spot silver equivalent ounceAll-in sustaining costs per average spot silver equivalent ounce             $13.71
All-in sustaining costs per average spot silver equivalent ounce           $13.29
(1)Excludes development capital for Jualin, Independencia, Guadalupe IndependenciaSouth Portal and Rochester crushing capacity expansion.expansion permitting.


The table below includes the Company’s mineralized material at December 31, 2017.
 
Mineralized Material at December 31, 2017(1)(2)(3)(4)
 Tons (000s) Silver Grade (oz./ton) Gold Grade (oz./ton) Lead Grade (percent) Zinc Grade (percent)
Palmarejo Mine, Mexico(5)
8,074
 3.35
 0.046
 —
 —
San Bartolomé Mine, Bolivia(6)
4,087
 3.42
 —
 —
 —
Kensington Mine, USA(7)
2,878
 —
 0.271
 —
 —
Wharf Mine, USA(8)
7,710
 —
 0.023
 —
 —
Rochester Mine, USA(9)
179,885
 0.36
 0.002
 —
 —
Silvertip Mine, Canada(10)
2,589
 10.26
 —
 6.74
 9.41
La Preciosa Project, Mexico(11)
28,677
 3.67
 0.006
 —
 —
Total Mineralized Material233,900
        
(1)Assumed metal prices for estimated 2017 mineralized material were $20.00 per ounce of silver, $1,400 per ounce of gold, $1.15 per pound zinc, and $1.00 per pound lead. 2017 mineralized material effective December 31, 2017.
(2)Estimated with mining cost parameters and initial metallurgical test results.
(3)Mineralized material estimates were completed by company technical staff, except for La Preciosa which was completed by an external consultant supervised by technical company staff.
(4)Estimated using 3-dimensional geologic modeling and geostatistical evaluation of the exploration drill data. Mineralized material is reported exclusive of reserves. “Mineralized material” as used in this Quarterly Report on Form 10-Q, although permissible under Guide 7, does not indicate “reserves” by SEC standards. There is no certainty that any part of the reported mineralized material will ever be confirmed or converted into Guide 7 compliant “reserves”.
(5)Cutoff grades for mineralized material is 2.49 g/tonne AuEq.
(6)Cutoff grades for mineralized material is 95 g/tonne.
(7)The cutoff grade for mineralized material is 0.13 oz/ton Au.
(8)The cutoff grade for mineralized material is 0.009 oz/ton Au.
(9)The cutoff grade for mineralized material is 0.46 oz/ton AgEq.
(10)The cutoff grade for mineralized material is 200 g/tonne AgEq.
(11)The cutoff grade for mineralized material is 121.71 g/ton AgEq for underground, and 71.86 g/t for surface mining.


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, zinc and silverlead mining business, including statements regarding mineralized material estimates, exploration efforts, drilling, development at Kensington, Palmarejo and Silvertip, estimated production, costs, capital expenditures, contingent payments for the Silvertip acquisition, expenses, metals prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, risk management strategies, operational excellence, cost reduction initiatives, capital discipline, and initiatives to produce long-term cash flow, provide opportunities for growth through continued exploration, and generate superior and sustainable returns for stockholders, maximizingmaximize net cash flow, reducingenhance revenues, reduce operating and non-operating costs, demonstrating consistent capital discipline, efficient management ofand manage working capital tax positions, anticipated expenses, efforts to mitigate risks associated with gold and silver price and foreign currency fluctuations and the adequacy of liquidity and capital resources.efficiently. 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 the “Risk Factors” section of the 20162017 10-K, and the risksrisk factors set forth below under Item 1A and uncertainties discussed in this MD&A,Management’s Discussion and Analysis of Financial Condition and Results of Operations , (ii)  the risk that the ramp up of production at Silvertip will be delayed, (iii) 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)(iv) changes in the market prices of gold, silver, zinc and silverlead and a sustained lower price environment, including any resulting impact on cash flows, (iv)(v) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions and grade variability, (v)(vi) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi)(vii) the uncertainties inherent in the estimation of gold, silver, zinc and silverlead reserves and mineralized material, (vii)(viii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii)(ix)  the loss of access to any third-party smelter to whichwhom the Company markets silver and gold, (ix)(x) the effects of environmental and other governmental regulations, (x)(xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, (xi) the political risks and uncertainties associated with operations in Bolivia; and (xii) 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.


Item 3.        Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to various market risks as a part of its operations and engages in risk management strategies to mitigate these risks. The Company continually evaluates the potential benefits of engaging in these strategies based on current market conditions. The Company does not actively engage in the practice of trading derivative instruments for profit. Additional information about the Company’s derivative financial instruments may be found in Note 11 -- Derivative Financial Instruments in the notes to the condensed consolidated financial statements. This discussion of the Company’s market risk assessments contains “forward looking statements”. For additional information regarding forward-looking statements and risks and uncertainties that could impact the Company, please refer to Item 2 of this Report - Cautionary Statement Concerning Forward-Looking Statements. Actual results and actions could differ materially from those discussed below.
Gold, Silver, Zinc and Silver PriceLead Prices
Gold, silver, zinc, and silverlead prices may fluctuate widely due to numerous factors, such as U.S. dollar strength or weakness, demand, investor sentiment, inflation or deflation, and global mine production. The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold, silver, zinc, and silver.lead.
Gold, Silver, Zinc and SilverLead Hedging
To mitigate the risks associated with gold, silver, zinc and silverlead price fluctuations, the Company may enter into option contracts to hedge future production. The Company had no outstanding goldAsian put and silvercall option contracts in net-zero-cost collar contracts on zinc at March 31, 2017.2018. The weighted average strike prices on the put and call contracts are $3,000 and $4,050 per metric ton, respectively. The contracts are generally net cash settled and, if the price of zinc at the time of the expiration is between the put and call prices, would expire at no cost to the Company. At March 31, 2018, the fair market value of the put and call zero cost collar contracts was a net asset of $0.1 million. During the three months ended March 31, 2018, the Company had recorded unrealized gains of $0.1 million related to outstanding options which were included in Fair value adjustments, net.
Provisional Silver and Gold Sales
The Company enters into sales contracts with third-party smelters and refiners 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. Depending on the difference between the price at the time of sale and the final settlement price, embedded derivatives are recorded as either a derivative asset or liability. The embedded

derivatives do not qualify for hedge accounting and, as a result, are marked to the market gold and silver price at the end of each period from the provisional sale date to the date of final settlement. The mark-to-market gains and losses are recorded in earnings. Changes in silver and gold pricingprices resulted in provisional pricing mark-to-market gains of $1.4$0.3 million and $1.2 million in the three months ended March 31, 2017.2018 and 2017, respectively.
At March 31, 2017,2018, the Company had outstanding provisionally priced sales of 0.1 million49,853 ounces of silver and 29,60345,051 ounces of gold at prices of $17.74$16.66 and $1,211,$1,317, respectively. A 10% change in realized silver price would causeresult in a de minimis change in revenue to vary by $0.1 million and a 10% change in realized gold price would cause revenue to vary by $3.6$5.9 million.
Foreign Currency
The Company operates, or has mineral interests, in several foreign countries including Australia, Bolivia, Chile,Canada, Mexico, Argentina, Ecuador, and New Zealand, which exposes it to foreign currency exchange rate risks. Foreign currency exchange rates are influenced by world market factors beyond the Company’s control such as supply and demand for U.S. and foreign currencies and related monetary and fiscal policies. Fluctuations in local currency exchange rates in relation to the U.S. dollar may significantly impact profitability and cash flow.
Foreign Exchange Hedging
To manage foreign currency risk, the Company may enter into foreign exchange forward and/or option contracts when the Company believes such contracts would be beneficial. The Company had no outstanding foreign exchange contracts at March 31, 2017.2018.

Item 4.Controls and Procedures
(a)Disclosure Controls and Procedures
As of the end of the period covered by this quarterly report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which by their nature, can provide only reasonable assurance regarding management’s control objectives. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events. Based upon the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective and operating to provide reasonable assurance that information required to be disclosed by it in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
(b)Management’s Report on Internal Control Over Financial Reporting
Based on an evaluation by the Company’s Chief Executive Officer and Chief Financial Officer, such officers concluded
that there was no change in the Company’s internal control over financial reporting during the three months ended three months ended March 31, 20172018 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II
Item 1.         Legal Proceedings
For a discussion of legal proceedings, see Note 1920 -- Commitments and Contingencies in the notes to the Consolidated Financial Statements included herein.

Item 1A.     Risk Factors

Item 1A -- Risk Factors of the 20162017 10-K sets forth information relating to important risks and uncertainties that could
materially adversely affect the Company’s business, financial condition or operating results. Those risk factors have been supplemented and updated in this Form 10-Q. Except as supplemented and updated below, the risk factors set forth in the 2017 10-K remain current. Additional risks and uncertainties
that the Company does not presently know or that it currently deems immaterial also may impair our business operations.
The Company’s business depends on good relations with, and the retention and hiring of, employees.

The Company may experience labor disputes, work stoppages or other disruptions in production that could adversely affect its business and results of operations. Labor disruptions may be used to advocate labor, political or social goals, particularly at non-U.S. mines. For example, labor disruptions may occur in sympathy with strikes or labor unrest in other sectors of local economies. During the past several years, two of the Company’s mines have experienced work stoppages, each of which was resolved within a short period of time and had no material effect on results of operations or financial condition. The Company cannot assure that work stoppages or other disruptions will not occur in the future. Any such work stoppage or disruption could expose the Company to significant costs and have a material adverse effect on its business, results of operations or financial condition. At March 31, 2018, none of the Company’s global workforce was represented by unions.

We compete with other mining companies to attract and retain key executives, skilled labor, contractors and other employees. We may be unable to continue to attract and retain skilled and experienced employees, which could have an adverse effect on our competitive position or adversely impact our results of operations or financial condition.
Continuation of the Company’s mining operations is dependent on the availability of sufficient and affordable water supplies.

The Company’s mining operations require significant quantities of water for mining, ore processing and related support facilities. In particular, the Company’s properties in Mexico are in areas where water is scarce and competition among users for continuing access to water is significant. Continuous production and mine development is dependent on the Company’s ability to acquire and maintain water rights and claims and to defeat claims adverse to current water uses in legal proceedings. Although each of the Company’s operating mines currently has sufficient water rights and claims to cover its operational demands, the Company cannot predict the potential outcome of pending or future legal proceedings relating to water rights, claims and uses.

Water shortages may also result from weather or environmental and climate impacts out of the Company’s control. Shortages in water supply could result in production and processing interruptions. In addition, the scarcity of water in certain regions could result in increased costs to obtain sufficient quantities of water to conduct the Company’s operations. The loss of some or all water rights, in whole or in part, or ongoing shortages of water to which we have rights or significantly higher costs to obtain sufficient quantities of water (or the failure to procure sufficient quantities of water) could result in the Company’s inability to maintain production at current or expected levels, require the Company to curtail or shut down mining production and could prevent the Company from pursuing expansion or development opportunities, which could adversely affect the Company’s results of operations and financial condition. Laws and regulations may be introduced in some jurisdictions in which the Company operates which could also limit access to sufficient water resources, thus adversely affecting the Company’s operations.

Item 4.         Mine Safety Disclosures

Information pertaining to mine safety matters is reported in accordance with Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act in Exhibit 95.1 attached to this Form 10-Q.

Item 5.Other Information

In accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy, Casey M. Nault, the Company’s Senior Vice President, General Counsel & Secretary entered into a selling plan effective March 6, 2017. Under the selling plan, between May 1, 2017 and November 30, 2017, Mr. Nault will sell a total of 60,000 shares of the Company’s common stock so long as the market price of the common stock is higher than a minimum threshold price specified in the plan. Rule 10b5-1 permits an insider to implement a written prearranged trading plan entered into at a time when the insider is not aware of any material nonpublic information about the Company and allows the insider to trade on a one-time or regularly scheduled basis regardless of any material nonpublic information about the Company thereafter received by the insider.Item 5.         Other Information



None.

Item 6.        Exhibits
10.1
Amendment to Share Purchase Agreement, dated February 16, 2018, by and among Coeur Mining, Inc., a Delaware corporation, Coeur South America Corp., a Delaware corporation, Coeur Explorations, Inc., an Idaho corporation, Empresa Minera Manquiri S.A., a Bolivian sociedad anónima, and Ag-Mining Investments, AB (formerly NewCo 4714 Sweden AB under change of name to Argentum Investment AB). (Incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on February 16, 2018 (File No. 001-08641)).
31.1
Certification of the CEO (Filed herewith).
31.2
Certification of the CFO (Filed herewith).
32.1
CEO Section 1350 Certification (Filed herewith).
32.2
CFO Section 1350 Certification (Filed herewith).
95.1
Mine Safety Disclosure (Filed herewith).
101.INSXBRL Instance Document**
101.SCHXBRL Taxonomy Extension Schema**
101.CALXBRL Taxonomy Extension Calculation Linkbase**
101.DEFXBRL Taxonomy Extension Definition Linkbase**
101.LABXBRL Taxonomy Extension Label Linkbase**
101.PREXBRL Taxonomy Extension Presentation Linkbase**
*    Management contract or compensatory plan or arrangement.
**    The following financial information from Coeur Mining, Inc.’s Quarterly's Annual Report on Form 10-Q for the three months ended March 31, 2017,2018, formatted in XBRL (Extensible Business Reporting Language): Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Statements of Cash Flows, Condensed Consolidated Balance Sheets, and Condensed Consolidated Statement of Changes in Stockholders’ Equity.Stockholders' Equity

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
  COEUR MINING, INC. 
  (Registrant) 
    
DatedApril 26, 201725, 2018/s/ Mitchell J. Krebs 
  MITCHELL J. KREBS 
  President and Chief Executive Officer (Principal Executive Officer)
    
DatedApril 26, 201725, 2018/s/ Peter C. Mitchell 
  PETER C. MITCHELL 
  Senior Vice President and Chief Financial Officer (Principal Financial Officer)
    
DatedApril 26, 201725, 2018/s/ Mark SpurbeckKen Watkinson 
  MARK SPURBECKKEN WATKINSON 
  Vice President, FinanceCorporate Controller and Chief Accounting Officer (Principal Accounting Officer)


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