UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

___________________________________________

FORM 10-Q


☑			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~March 31,~~September 30, 2021


☐			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

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)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $.01 per share)	CDE	New York Stock Exchange

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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files.) Yes ☑ 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

☑

Accelerated 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 ☑

The Company has 300,000,000 shares of common stock, par value of $0.01, authorized of which ~~243,436,472~~256,953,858 shares were issued and outstanding as of ~~April 26,~~October 25, 2021.

COEUR MINING, INC.

INDEX


		Page
Part I.	Financial Information

	Item 1. Financial Statements

	Condensed Consolidated Balance Sheets (Unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	5

	Condensed Consolidated Statements of Cash Flows (Unaudited)	6

	Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)	7

	Notes to Condensed Consolidated Financial Statements (Unaudited)	8

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2831

	Consolidated Financial Results	2933

	Results of Operations	3238

	Liquidity and Capital Resources	3441

	Non-GAAP Financial Performance Measures	3644

	Item 3. Quantitative and Qualitative Disclosures about Market Risk	4048

	Item 4. Controls and Procedures	4250

Part II.	Other Information	4351

	Item 1. Legal Proceedings	4351

	Item 1A. Risk Factors	4351

	Item 4. Mine Safety Disclosures	4351

	Item 5. Other Information	4351

	Item 6. Exhibits	4451

Signatures		4452

PART I

Item 1. Financial Statements and Supplementary Data

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


			March 31, 2021		December 31, 2020				September 30, 2021		December 31, 2020
ASSETS	ASSETS	Notes	In thousands, except share data				ASSETS	Notes	In thousands, except share data
CURRENT ASSETS	CURRENT ASSETS						CURRENT ASSETS
Cash and cash equivalents	Cash and cash equivalents		$	154,066	$	92,794	Cash and cash equivalents		$	85,020	$	92,794

Receivables	Receivables	4	22,606		23,484		Receivables	4	22,956		23,484
Inventory	Inventory	5	53,591		51,210		Inventory	5	52,334		51,210
Ore on leach pads	Ore on leach pads	5	78,689		74,866		Ore on leach pads	5	74,803		74,866

Prepaid expenses and other	Prepaid expenses and other		27,274		27,254		Prepaid expenses and other		17,846		27,254

Assets held for sale							Assets held for sale	19	54,478		—
			336,226		269,608				307,437		269,608
NON-CURRENT ASSETS	NON-CURRENT ASSETS						NON-CURRENT ASSETS
Property, plant and equipment, net	Property, plant and equipment, net		248,237		230,139		Property, plant and equipment, net		298,006		230,139
Mining properties, net	Mining properties, net		739,559		716,790		Mining properties, net		783,097		716,790
Ore on leach pads	Ore on leach pads	5	87,723		81,963		Ore on leach pads	5	78,302		81,963
Restricted assets	Restricted assets		9,266		9,492		Restricted assets		9,160		9,492
Equity securities	Equity securities	6	8,209		12,943		Equity securities	6	139,740		12,943
Receivables	Receivables	4, 17	25,605		26,447		Receivables	4, 17	—		26,447

Other	Other		60,590		56,595		Other		58,291		56,595

TOTAL ASSETS	TOTAL ASSETS		$	1,515,415	$	1,403,977	TOTAL ASSETS		$	1,674,033	$	1,403,977
LIABILITIES AND STOCKHOLDERS’ EQUITY	LIABILITIES AND STOCKHOLDERS’ EQUITY						LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES	CURRENT LIABILITIES						CURRENT LIABILITIES
Accounts payable	Accounts payable		$	96,715	$	90,577	Accounts payable		$	119,583	$	90,577
Accrued liabilities and other	Accrued liabilities and other	18	62,682		119,158		Accrued liabilities and other	18	77,790		119,158
Debt	Debt	8	21,404		22,074		Debt	7,8	31,384		22,074

Reclamation	Reclamation	9	2,299		2,299		Reclamation	9	2,299		2,299

Liabilities held for sale							Liabilities held for sale	19	11,477		—
			183,100		234,108				242,533		234,108
NON-CURRENT LIABILITIES	NON-CURRENT LIABILITIES						NON-CURRENT LIABILITIES
Debt	Debt	8	390,721		253,427		Debt	7,8	411,042		253,427

Reclamation	Reclamation	9	139,112		136,975		Reclamation	9	142,456		136,975
Deferred tax liabilities	Deferred tax liabilities		34,577		34,202		Deferred tax liabilities		22,280		34,202
Other long-term liabilities	Other long-term liabilities		47,399		51,786		Other long-term liabilities		41,983		51,786

			611,809		476,390				617,761		476,390
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES	17					COMMITMENTS AND CONTINGENCIES	17
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY						STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 243,469,002 issued and outstanding at March 31, 2021 and 243,751,283 at December 31, 2020			2,435		2,438
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 256,928,852 issued and outstanding at September 30, 2021 and 243,751,283 at December 31, 2020							Common stock, par value $0.01 per share; authorized 300,000,000 shares, 256,928,852 issued and outstanding at September 30, 2021 and 243,751,283 at December 31, 2020		2,569		2,438
Additional paid-in capital	Additional paid-in capital		3,610,631		3,610,297		Additional paid-in capital		3,734,948		3,610,297
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)		13,500		(11,136)		Accumulated other comprehensive income (loss)		4,904		(11,136)
Accumulated deficit	Accumulated deficit		(2,906,060)		(2,908,120)		Accumulated deficit		(2,928,682)		(2,908,120)
			720,506		693,479				813,739		693,479
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,515,415	$	1,403,977	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,674,033	$	1,403,977

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

COEUR MINING, INC. AND SUBSIDIARIES

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


			Three Months Ended March 31,					Three Months Ended September 30,					Nine Months Ended September 30,
				2021		2020							2021		2020		2021		2020
		Notes		In thousands, except share data					Notes	In thousands, except share data
Revenue	Revenue	3		$	202,117	$	173,167				Revenue	3	$	207,969	$	229,728	$	624,944	$	557,144
COSTS AND EXPENSES	COSTS AND EXPENSES										COSTS AND EXPENSES
Costs applicable to sales(1)	Costs applicable to sales(1)	3		108,147		118,917					Costs applicable to sales(1)	3	134,340		112,772		375,082		321,704
Amortization	Amortization			29,937		36,162					Amortization		30,962		32,216		92,872		96,254
General and administrative	General and administrative			11,554		8,920					General and administrative		8,743		7,757		30,764		25,293
Exploration	Exploration			9,666		6,386					Exploration		15,391		12,818		37,503		31,059

Pre-development, reclamation, and other	Pre-development, reclamation, and other			13,712		6,555					Pre-development, reclamation, and other		10,506		15,031		36,956		40,261
Total costs and expenses	Total costs and expenses			173,016		176,940					Total costs and expenses		199,942		180,594		573,177		514,571
OTHER INCOME (EXPENSE), NET	OTHER INCOME (EXPENSE), NET										OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment	Loss on debt extinguishment	8		(9,173)		0					Loss on debt extinguishment	8	—		—		(9,173)		—
Fair value adjustments, net	Fair value adjustments, net	12		(3,799)		(8,819)					Fair value adjustments, net	12	(26,440)		2,243		7,000		3,491
Interest expense, net of capitalized interest	Interest expense, net of capitalized interest	8		(4,910)		(5,128)					Interest expense, net of capitalized interest	8	(3,237)		(5,096)		(13,240)		(15,989)
Other, net	Other, net	14		3,627		1,881					Other, net	14	(26,718)		(6,312)		(22,390)		(4,310)
Total other income (expense), net	Total other income (expense), net			(14,255)		(12,066)					Total other income (expense), net		(56,395)		(9,165)		(37,803)		(16,808)
Income (loss) before income and mining taxes	Income (loss) before income and mining taxes			14,846		(15,839)					Income (loss) before income and mining taxes		(48,368)		39,969		13,964		25,765
Income and mining tax (expense) benefit	Income and mining tax (expense) benefit	10		(12,786)		3,939					Income and mining tax (expense) benefit	10	(6,400)		(13,113)		(34,526)		(12,018)

NET INCOME (LOSS)	NET INCOME (LOSS)			$	2,060	$	(11,900)				NET INCOME (LOSS)		$	(54,768)	$	26,856	$	(20,562)	$	13,747
OTHER COMPREHENSIVE INCOME (LOSS):	OTHER COMPREHENSIVE INCOME (LOSS):										OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative contracts designated as cash flow hedges, net of tax of $0 and $22 for the three months ended March 31, 2021 and 2020, respectively.				27,357		206
Change in fair value of derivative contracts designated as cash flow hedges											Change in fair value of derivative contracts designated as cash flow hedges		1,349		(21,248)		25,723		(28,139)
Reclassification adjustments for realized (gain) loss on cash flow hedges	Reclassification adjustments for realized (gain) loss on cash flow hedges			(2,721)		0					Reclassification adjustments for realized (gain) loss on cash flow hedges		(3,902)		2,642		(9,683)		1,963

Other comprehensive income (loss)	Other comprehensive income (loss)			24,636		206					Other comprehensive income (loss)		(2,553)		(18,606)		16,040		(26,176)
COMPREHENSIVE INCOME (LOSS)	COMPREHENSIVE INCOME (LOSS)			$	26,696	$	(11,694)				COMPREHENSIVE INCOME (LOSS)		$	(57,321)	$	8,250	$	(4,522)	$	(12,429)

NET INCOME (LOSS) PER SHARE	NET INCOME (LOSS) PER SHARE	15									NET INCOME (LOSS) PER SHARE	15

Basic	Basic			$	0.01	$	(0.05)				Basic		$	(0.21)	$	0.11	$	(0.08)	$	0.06

Diluted	Diluted			$	0.01	$	(0.05)				Diluted		$	(0.21)	$	0.11	$	(0.08)	$	0.06

(1) Excludes amortization.

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 September 30,					Nine Months Ended September 30,
				2021		2020							2021		2020		2021		2020
		Notes		In thousands					Notes	In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:	CASH FLOWS FROM OPERATING ACTIVITIES:										CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	Net income (loss)			$	2,060	$	(11,900)				Net income (loss)		$	(54,768)	$	26,856	$	(20,562)	$	13,747

Adjustments:	Adjustments:										Adjustments:
Amortization	Amortization			29,937		36,162					Amortization		30,962		32,216		92,872		96,254
Accretion	Accretion			2,905		2,847					Accretion		3,028		2,969		8,898		8,724
Deferred taxes	Deferred taxes			124		(5,487)					Deferred taxes		(5,964)		(4,515)		(740)		(11,547)
Loss on debt extinguishment	Loss on debt extinguishment	8		9,173		0					Loss on debt extinguishment	8	—		—		9,173		—
Fair value adjustments, net	Fair value adjustments, net	12		3,799		8,819					Fair value adjustments, net	12	26,440		(2,243)		(7,000)		(3,491)
Stock-based compensation	Stock-based compensation	11		4,256		2,013					Stock-based compensation	11	2,671		1,969		10,183		6,269
Gain on modification of right of use lease	Gain on modification of right of use lease			0		(4,051)					Gain on modification of right of use lease		—		—		—		(4,051)

Write-downs	Write-downs			0		10,381					Write-downs		31,249		1,232		31,249		16,821
Deferred revenue recognition	Deferred revenue recognition	17		(8,346)		(7,548)					Deferred revenue recognition	17	(307)		(5,485)		(15,908)		(21,167)
Other	Other			(2,328)		(1,092)					Other		1,493		4,379		(339)		2,374
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:										Changes in operating assets and liabilities:
Receivables	Receivables			999		(813)					Receivables		(944)		(1,497)		1,016		(3,846)
Prepaid expenses and other current assets	Prepaid expenses and other current assets			(655)		(346)					Prepaid expenses and other current assets		(80)		(1,921)		593		(1,186)
Inventory and ore on leach pads	Inventory and ore on leach pads			(17,486)		(21,925)					Inventory and ore on leach pads		(3,820)		(3,066)		(18,047)		(33,047)
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities			(28,797)		(15,051)					Accounts payable and accrued liabilities		(8,114)		28,570		(15,842)		15,566
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			(4,359)		(7,991)					CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		21,846		79,464		75,546		81,420

CASH FLOWS FROM INVESTING ACTIVITIES:	CASH FLOWS FROM INVESTING ACTIVITIES:										CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	Capital expenditures			(59,424)		(22,208)					Capital expenditures		(71,266)		(22,996)		(208,913)		(61,886)

Proceeds from the sale of assets	Proceeds from the sale of assets			4,588		4,506					Proceeds from the sale of assets		61		730		5,617		5,245

Purchase of investments											Purchase of investments		(1,079)		(2,500)		(1,955)		(2,500)
Sale of investments	Sale of investments			935		0					Sale of investments		—		—		935		19,802

Other	Other			(17)		(17)					Other		(12)		(25)		(42)		(225)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			(53,918)		(17,719)					CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(72,296)		(24,791)		(204,358)		(39,564)

CASH FLOWS FROM FINANCING ACTIVITIES:	CASH FLOWS FROM FINANCING ACTIVITIES:										CASH FLOWS FROM FINANCING ACTIVITIES:

Issuance of notes and bank borrowings, net of issuance costs	Issuance of notes and bank borrowings, net of issuance costs	8		367,493		50,000					Issuance of notes and bank borrowings, net of issuance costs	8	20,000		—		387,493		150,000
Payments on debt, finance leases, and associated costs	Payments on debt, finance leases, and associated costs	7, 8		(243,967)		(5,901)					Payments on debt, finance leases, and associated costs	7, 8	(7,944)		(48,557)		(261,522)		(150,171)
Silvertip contingent consideration	Silvertip contingent consideration	17		0		(18,750)					Silvertip contingent consideration	17	—		—		—		(18,750)
Other	Other			(3,925)		(1,973)					Other		(20)		114		(4,178)		(1,718)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			119,601		23,376					CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		12,036		(48,443)		121,793		(20,639)

Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents			(51)		(626)					Effect of exchange rate changes on cash and cash equivalents		(253)		(10)		(360)		293
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			61,273		(2,960)					INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(38,667)		6,220		(7,379)		21,510

Cash, cash equivalents and restricted cash at beginning of period	Cash, cash equivalents and restricted cash at beginning of period			94,170		57,018					Cash, cash equivalents and restricted cash at beginning of period		125,458		72,308		94,170		57,018
Cash, cash equivalents and restricted cash at end of period	Cash, cash equivalents and restricted cash at end of period			$	155,443	$	54,058				Cash, cash equivalents and restricted cash at end of period		$	86,791	$	78,528	$	86,791	$	78,528

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

COEUR MINING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)


In thousands	In thousands	Common Stock Shares	Common Stock Par Value		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total		In thousands	Common Stock Shares	Common Stock Par Value		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total

Balances at December 31, 2020	Balances at December 31, 2020	243,752	$	2,438	$	3,610,297	$	(2,908,120)	$	(11,136)	$	693,479	Balances at December 31, 2020	243,752	$	2,438	$	3,610,297	$	(2,908,120)	$	(11,136)	$	693,479
Net income (loss)	Net income (loss)	—	—		—		2,060		—		2,060		Net income (loss)	—	—		—		2,060		—		2,060
Other comprehensive income (loss)	Other comprehensive income (loss)	—	—		—		—		24,636		24,636		Other comprehensive income (loss)	—	—		—		—		24,636		24,636
Common stock issued/canceled under long-term incentive plans and director fees and options, net	Common stock issued/canceled under long-term incentive plans and director fees and options, net	(282)	(3)		334		—		—		331		Common stock issued/canceled under long-term incentive plans and director fees and options, net	(282)	(3)		334		—		—		331
Balances at March 31, 2021	Balances at March 31, 2021	243,470	$	2,435	$	3,610,631	$	(2,906,060)	$	13,500	$	720,506	Balances at March 31, 2021	243,470	$	2,435	$	3,610,631	$	(2,906,060)	$	13,500	$	720,506
Net income (loss)													Net income (loss)	—	—		—		32,146		—		32,146
Other comprehensive income (loss)													Other comprehensive income (loss)	—	—		—		—		(6,043)		(6,043)
Common stock issued for investment													Common stock issued for investment	12,786	128		118,649						118,777
Common stock issued/canceled under long-term incentive plans and director fees and options, net													Common stock issued/canceled under long-term incentive plans and director fees and options, net	792	7		3,016		—		—		3,023
Balances at June 30, 2021													Balances at June 30, 2021	257,048	$	2,570	$	3,732,296	$	(2,873,914)	$	7,457	$	868,409
Net income (loss)													Net income (loss)	—	—		—		(54,768)		—		(54,768)
Other comprehensive income (loss)													Other comprehensive income (loss)	—	—		—		—		(2,553)		(2,553)
Common stock issued/canceled under long-term incentive plans and director fees and options, net													Common stock issued/canceled under long-term incentive plans and director fees and options, net	(119)	(1)		2,652		—		—		2,651
Balances at September 30, 2021													Balances at September 30, 2021	256,929	$	2,569	$	3,734,948	$	(2,928,682)	$	4,904	$	813,739


In thousands	In thousands	Common Stock Shares	Common Stock Par Value		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total		In thousands	Common Stock Shares	Common Stock Par Value		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total
Balances at December 31, 2019	Balances at December 31, 2019	241,529	$	2,415	$	3,598,472	$	(2,933,747)	$	(136)	$	667,004	Balances at December 31, 2019	241,529	$	2,415	$	3,598,472	$	(2,933,747)	$	(136)	$	667,004
Net income (loss)	Net income (loss)	—	—		—		(11,900)		—		(11,900)		Net income (loss)	—	—		—		(11,900)		—		(11,900)
Other comprehensive income (loss)	Other comprehensive income (loss)	—	—		—		—		206		206		Other comprehensive income (loss)	—	—		—		—		206		206
Common stock issued for Silvertip contingent consideration payment	Common stock issued for Silvertip contingent consideration payment	878	9		5,286		—		—		5,295		Common stock issued for Silvertip contingent consideration payment	878	9		5,286		—		—		5,295
Common stock issued/canceled under long-term incentive plans and director fees and options, net	Common stock issued/canceled under long-term incentive plans and director fees and options, net	1,179	12		27		—		—		39		Common stock issued/canceled under long-term incentive plans and director fees and options, net	1,179	12		27		—		—		39
Balances at March 31, 2020	Balances at March 31, 2020	243,586	$	2,436	$	3,603,785	$	(2,945,647)	$	70	$	660,644	Balances at March 31, 2020	243,586	$	2,436	$	3,603,785	$	(2,945,647)	$	70	$	660,644
Net income (loss)													Net income (loss)	—	—		—		(1,209)		—		(1,209)
Other comprehensive income (loss)													Other comprehensive income (loss)	—	—		—		—		(7,776)		(7,776)
Common stock issued/canceled under long-term incentive plans and director fees and options, net													Common stock issued/canceled under long-term incentive plans and director fees and options, net	146	1		2,197		—		—		2,198
Balances at June 30, 2020													Balances at June 30, 2020	243,732	$	2,437	$	3,605,982	$	(2,946,856)	$	(7,706)	$	653,857
Net income (loss)													Net income (loss)	—	—		—		26,856		—		26,856
Other comprehensive income (loss)													Other comprehensive income (loss)	—	—		—		—		(18,606)		(18,606)
Common stock issued/canceled under long-term incentive plans and director fees and options, net													Common stock issued/canceled under long-term incentive plans and director fees and options, net	13	—		2,120		—		—		2,120
Balances at September 30, 2020													Balances at September 30, 2020	243,745	$	2,437	$	3,608,102	$	(2,920,000)	$	(26,312)	$	664,227

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

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 1 - BASIS OF PRESENTATION

The interim condensed consolidated financial statements of Coeur Mining, Inc. and its subsidiaries (collectively, “Coeur” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for the fair presentation of these interim statements have been included. The results reported in these interim statements may not be indicative of the results which will be reported for the year ending December 31, 2021. The condensed consolidated December 31, 2020 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, 2020 (the “2020 10-K”).

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Significant Accounting Policies

Please see Note 2 -- Summary of Significant Accounting Policies contained in the 2020 10-K.

Use of Estimates

The Company's Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles. The preparation of the Company's Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, estimates of recoverable silver and gold in leach pad inventories, estimates of fair value for certain reporting units and asset impairments, valuation allowances for deferred tax assets, and the fair value and accounting treatment of financial instruments, equity securities, asset acquisitions, the allocation of fair value to assets and liabilities assumed in connection with business combinations, and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from the amounts estimated in these financial statements.

Ore on Leach Pads

The heap leach process extracts silver and gold by placing ore on an impermeable pad and applying a diluted cyanide solution that dissolves a portion of the contained silver and gold, which are then recovered in metallurgical processes.

The Company uses several integrated steps to scientifically measure the metal content of ore placed on the leach pads. As the ore body is drilled in preparation for the blasting process, samples are taken of the drill residue which are assayed to determine estimated quantities of contained metal. The Company then processes the ore through crushing facilities where the output is again weighed and sampled for assaying. A metallurgical reconciliation with the data collected from the mining operation is completed with appropriate adjustments made to previous estimates. The crushed ore is then transported to the leach pad for application of the leaching solution. As the leach solution is collected from the leach pads, it is continuously sampled for assaying. The quantity of leach solution is measured by flow meters throughout the leaching and precipitation process. After precipitation, the product is converted to doré at the Rochester mine and a form of gold concentrate at the Wharf mine, representing the final product produced by each mine. The inventory is stated at lower of cost or net realizable value, with cost being determined using a weighted average cost method.

The historical cost of metal expected to be extracted within 12 months is classified as current and the historical cost of metals contained within the broken ore expected to be extracted beyond 12 months is classified as non-current. Ore on leach pads is valued based on actual production costs incurred to produce and place ore on the leach pad, less costs allocated to minerals recovered through the leach process.

The estimate of both the ultimate recovery expected over time and the quantity of metal that may be extracted relative to the time the leach process occurs requires the use of estimates, which are inherently inaccurate due to the nature of the leaching process. The quantities of metal contained in the ore are based upon actual weights and assay analysis. The rate at which the leach process extracts gold and silver from the crushed ore is based upon laboratory testing and actual experience of more than 20 years of leach pad operations at the Rochester mine and 30 years of leach pad operations at the Wharf mine. The assumptions used by the Company to measure metal content during each stage of the inventory conversion process includes estimated recovery rates based on laboratory testing and assaying. The Company periodically reviews its estimates compared to actual experience and revises its estimates when appropriate. The ultimate recovery will not be known until leaching operations cease. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. In June 2021, the Company updated the

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

recovery rate assumption on the Stage IV leach pad at Rochester, based on the historical performance of the leach pad since the third quarter of 2019. This change resulted in an adjustment to the ending ore on leach pads balance with the resulting non-cash charges allocated between Costs Applicable to Sales and Amortization in the amounts of $8.6 million and $2.2 million, respectively.

Revenue Recognition

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $22.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, 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 the 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. The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet. See Note 17 -- Commitments and Contingencies for additional detail.

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


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
Opening Balance	Opening Balance		$	9,376		$	11,061	Opening Balance	$	8,775	$	10,389	$	9,376	$	11,061
Revenue Recognized	Revenue Recognized		(346)			(556)		Revenue Recognized	(307)		(393)		(908)		(1,065)
Closing Balance	Closing Balance		$	9,030		$	10,505	Closing Balance	$	8,468	$	9,996	$	8,468	$	9,996

In December 2020, the Company received a $15.0 million prepayment (the “December 2020 Prepayment” ~~as defined in Note 17)~~) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 17). In the first half of 2021, the Kensington mine delivered $15.0 million of gold concentrate to the counterparty in satisfaction of this prepayment obligation. The Amended Sales Contract was further amended in July 2021, with an effective date as of June 28, 2021, to include options for Coeur to receive up to two additional prepayments of up to $15.0 million each for deliveries of gold concentrate from the Kensington mine, and Coeur exercised the option to receive the first $15.0 million prepayment in June 2021 (the “June 2021 Prepayment”), of which $7.5 million in gold ounces were delivered in the third quarter of 2021. The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer. The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheet. See Note 17 -- Commitments and Contingencies for additional detail.

The following table presents a rollforward of the Amended Sales Contract liability balance:

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Consolidated Financial Statements~~


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020			2021		2020
Opening Balance	Opening Balance		$	15,003		$	15,010	Opening Balance	$	15,004	$	15,006		$	15,003	$	15,010
Additions	Additions		101			132		Additions	95		108		—	15,096		15,114
Revenue Recognized	Revenue Recognized		(8,000)			(7,124)		Revenue Recognized	(7,500)		(5,200)			(22,500)		(20,210)
Closing Balance	Closing Balance		$	7,104		$	8,018	Closing Balance	$	7,599	$	9,914		$	7,599	$	9,914

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company). Early adoption is permitted. The adoption of the new standard did not have a material impact on the Company’s consolidated net income, financial position or cash flows.

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 3 – SEGMENT REPORTING

The Company’s operating segments include the Palmarejo, Rochester, Kensington, Wharf and Silvertip mines. Except for the Silvertip mine, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip mine, which temporarily suspended mining and processing activities in February 2020, is engaged in the discovery, mining, and production of silver, zinc and lead. Other includes the Sterling/Crown and La Preciosa projects, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.

In June 2021, Silvertip repurchased from Silvertip Resources Investment Cayman Ltd. a net smelter returns royalty of 1.429% on the first 1,434,000 metric tonnes of mineralized material mined, and 1.00% thereafter for consideration of $7.0 million .

The 2019 novel strain of coronavirus causing a contagious respiratory disease known as COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, poses a material risk to Coeur’s business and operations and the Company expects costs associated with its COVID-19 mitigation and response efforts at each of its operations to continue.

Incremental costs associated with the Company’s COVID-19 health and safety protocols are recorded in Pre-development, reclamation, and other expenses in our Consolidated Statement of Comprehensive Income (Loss) and are included in Other operating expenses in the table below. Because of the highly uncertain and dynamic nature of events relating to the COVID-19 pandemic, it is not currently possible to estimate the impact of the pandemic on the Company’s operating segments. However, these effects could have a material impact on our operations, and Coeur will continue to monitor the COVID-19 situation closely.

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


Three Months Ended March 31, 2021		Palmarejo		Rochester		Kensington		Wharf		Silvertip		Other		Total
Three Months Ended September 30, 2021																Three Months Ended September 30, 2021	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Other		Total
Revenue	Revenue															Revenue
Gold sales	Gold sales	$	37,567	$	12,440	$	54,466	$	33,849	$	0	$	0	$	138,322	Gold sales	$	33,237	$	9,923	$	51,881	$	52,689	$	—	$	—	$	147,730
Silver sales	Silver sales	42,778		20,317		0		700		0		0		63,795		Silver sales	41,410		18,402		—		427		—		—		60,239

Metal sales	Metal sales	80,345		32,757		54,466		34,549		0		0		202,117		Metal sales	74,647		28,325		51,881		53,116		—		—		207,969
Costs and Expenses	Costs and Expenses															Costs and Expenses
Costs applicable to sales(1)	Costs applicable to sales(1)	33,988		24,033		31,394		18,732		0		0		108,147		Costs applicable to sales(1)	39,016		31,669		34,576		29,079		—		—		134,340
Amortization	Amortization	9,059		3,577		13,445		2,475		1,086		295		29,937		Amortization	8,747		4,671		12,786		3,158		1,258		342		30,962
Exploration	Exploration	1,693		472		1,109		67		2,932		3,393		9,666		Exploration	2,777		2,394		2,681		—		4,592		2,947		15,391

Other operating expenses	Other operating expenses	1,270		1,448		2,995		185		6,555		12,813		25,266		Other operating expenses	855		1,433		515		539		6,090		9,817		19,249
Other income (expense)	Other income (expense)															Other income (expense)
Loss on debt extinguishment		0		0		0		0		0		(9,173)		(9,173)

Fair value adjustments, net	Fair value adjustments, net	0		0		0		0		0		(3,799)		(3,799)		Fair value adjustments, net	—		—		—		—		—		(26,440)		(26,440)
Interest expense, net	Interest expense, net	(187)		(222)		(232)		(37)		45		(4,277)		(4,910)		Interest expense, net	(135)		(149)		(194)		(39)		396		(3,116)		(3,237)
Other, net(3)	Other, net(3)	(665)		(61)		0		24		(102)		4,431		3,627		Other, net(3)	(26,868)		(99)		(62)		460		(124)		(25)		(26,718)
Income and mining tax (expense) benefit	Income and mining tax (expense) benefit	(11,340)		(138)		(334)		(1,129)		0		155		(12,786)		Income and mining tax (expense) benefit	(10,702)		1,108		(65)		(2,014)		—		5,273		(6,400)
Net Income (loss)	Net Income (loss)	$	22,143	$	2,806	$	4,957	$	11,948	$	(10,630)	$	(29,164)	$	2,060	Net Income (loss)	$	(14,453)	$	(10,982)	$	1,002	$	18,747	$	(11,668)	$	(37,414)	$	(54,768)

Segment assets(2)	Segment assets(2)	$	306,648	$	388,047	$	162,727	$	79,018	$	169,328	$	177,516	$	1,283,284	Segment assets(2)	$	285,277	$	496,940	$	149,774	$	73,019	$	209,498	$	112,836	$	1,327,344
Capital expenditures	Capital expenditures	$	9,983	$	30,177	$	7,202	$	1,481	$	10,387	$	194	$	59,424	Capital expenditures	$	8,506	$	40,056	$	6,272	$	1,045	$	15,099	$	288	$	71,266

(1) Excludes amortization

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

(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements


Three Months Ended March 31, 2020		Palmarejo		Rochester		Kensington		Wharf		Silvertip		Other		Total
Three months ended September 30, 2020																Three months ended September 30, 2020	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Other		Total
Revenue	Revenue															Revenue
Gold sales	Gold sales	$	41,647	$	8,666	$	51,666	$	25,626	$	0	$	0	$	127,605	Gold sales	$	39,416	$	12,860	$	52,357	$	62,499	$	—	$	—	$	167,132
Silver sales	Silver sales	32,692		10,739		0		248		1,230		$	0	44,909		Silver sales	42,339		19,250		—		1,007		—		—		62,596
Zinc sales	Zinc sales	0		0		0		0		(662)		0		(662)		Zinc sales	—		—		—		—		—		—		—
Lead sales	Lead sales	0		0		0		0		1,315		0		1,315		Lead sales	—		—		—		—		—		—		—
Metal sales	Metal sales	74,339		19,405		51,666		25,874		1,883		0		173,167		Metal sales	81,755		32,110		52,357		63,506		—		—		229,728
Costs and Expenses	Costs and Expenses															Costs and Expenses
Costs applicable to sales(1)	Costs applicable to sales(1)	35,974		16,956		30,507		17,823		17,657		0		118,917		Costs applicable to sales(1)	34,251		19,104		31,530		27,887		—		—		112,772
Amortization	Amortization	13,175		2,904		11,922		2,444		5,345		372		36,162		Amortization	11,912		3,278		11,523		4,000		1,185		318		32,216
Exploration	Exploration	1,492		220		1,772		4		251		2,647		6,386		Exploration	1,978		465		3,397		534		3,920		2,524		12,818

Other operating expenses	Other operating expenses	722		1,246		331		442		2,374		10,360		15,475		Other operating expenses	2,378		1,376		3,448		127		5,916		9,543		22,788
Other income (expense)	Other income (expense)															Other income (expense)
Loss on debt extinguishment		0		0		0		0		0		0		0

Fair value adjustments, net	Fair value adjustments, net	0		0		0		0		0		(8,819)		(8,819)		Fair value adjustments, net	—		—		—		—		—		2,243		2,243
Interest expense, net	Interest expense, net	(155)		(268)		(309)		(51)		(259)		(4,086)		(5,128)		Interest expense, net	(201)		(283)		(296)		(48)		(124)		(4,144)		(5,096)
Other, net(3)	Other, net(3)	(47)		(53)		71		(13)		1,130		793		1,881		Other, net(3)	(1,168)		(2,502)		(34)		7		451		(3,066)		(6,312)
Income and mining tax (expense) benefit	Income and mining tax (expense) benefit	2,287		(43)		0		(475)		0		2,170		3,939		Income and mining tax (expense) benefit	(6,841)		(143)		(380)		(2,630)		21		(3,140)		(13,113)
Net Income (loss)		$	25,061	$	(2,285)	$	6,896	$	4,622	$	(22,873)	$	(23,321)	$	(11,900)
Income (loss) from continuing operations																Income (loss) from continuing operations	$	23,026	$	4,959	$	1,749	$	28,287	$	(10,673)	$	(20,492)	$	26,856

Segment assets(2)	Segment assets(2)	$	307,662	$	295,972	$	188,470	$	85,531	161,214		$	164,745	$	1,203,594	Segment assets(2)	$	302,599	$	325,165	$	177,700	$	76,247	$	155,932	$	170,208	$	1,207,851
Capital expenditures	Capital expenditures	$	7,080	$	5,058	$	4,808	$	409	4,616		$	237	$	22,208	Capital expenditures	$	4,998	$	9,773	$	5,333	$	545	$	2,065	$	282	$	22,996

(1) Excludes amortization

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

(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail


Nine Months Ended September 30, 2021	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Other		Total
Revenue
Gold sales	$	112,036	$	36,389	$	155,154	$	128,631	$	—	$	—	$	432,210
Silver sales	127,990		62,778		—		1,966		—		—		192,734


Metal sales	240,026		99,167		155,154		130,597		—		—		624,944
Costs and Expenses
Costs applicable to sales(1)	114,922		93,733		95,173		71,254		—		—		375,082
Amortization	26,077		14,754		38,941		8,627		3,529		944		92,872
Exploration	6,304		3,802		5,095		143		11,119		11,040		37,503

Other operating expenses	3,578		4,325		5,783		1,249		18,609		34,176		67,720
Other income (expense)
Loss on debt extinguishment	—		—		—		—		—		(9,173)		(9,173)
Fair value adjustments, net	—		—		—		—		—		7,000		7,000
Interest expense, net	(471)		(851)		(568)		(122)		622		(11,850)		(13,240)
Other, net(3)	(27,904)		(252)		(104)		1,112		(463)		5,221		(22,390)
Income and mining tax (expense) benefit	(29,601)		937		(1,106)		(4,437)		—		(319)		(34,526)
Net Income (loss)	$	31,169	$	(17,613)	$	8,384	$	45,877	$	(33,098)	$	(55,281)	$	(20,562)

Segment assets(2)	$	285,277	$	496,940	$	149,774	$	73,019	$	209,498	$	112,836	$	1,327,344
Capital expenditures	$	28,284	$	112,505	$	19,519	$	3,928	$	44,011	$	666	$	208,913

(1) Excludes amortization

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

(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements


Nine months ended September 30, 2020	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Other		Total
Revenue
Gold sales	$	104,732	$	30,508	$	159,200	$	128,199	$	—	$	—	$	422,639
Silver sales	89,332		41,650		—		1,640		1,230		—		133,852
Zinc sales	—		—		—		—		(662)		—		(662)
Lead sales	—		—		—		—		1,315		—		1,315
Metal sales	194,064		72,158		159,200		129,839		1,883		—		557,144
Costs and Expenses
Costs applicable to sales(1)	89,050		54,396		92,419		68,182		17,657		—		321,704
Amortization	32,357		9,194		36,298		9,625		7,761		1,019		96,254
Exploration	4,373		2,529		7,746		639		7,073		8,699		31,059

Other operating expenses	6,279		3,835		7,298		451		17,770		29,921		65,554
Other income (expense)

Fair value adjustments, net	—		—		—		—		—		3,491		3,491
Interest expense, net	(667)		(851)		(819)		(149)		(603)		(12,900)		(15,989)
Other, net(3)	(2,866)		(2,580)		1		(12)		2,005		(858)		(4,310)
Income and mining tax (expense) benefit	(7,938)		(186)		(854)		(4,806)		(234)		2,000		(12,018)
Income (loss) from continuing operations	$	50,534	$	(1,413)	$	13,767	$	45,975	$	(47,210)	$	(47,906)	$	13,747

Segment assets(2)	$	302,599	$	325,165	$	177,700	$	76,247	$	155,932	$	170,208	$	1,207,851
Capital expenditures	$	16,611	$	20,634	$	14,050	$	1,219	$	8,630	$	742	$	61,886

(1) Excludes amortization

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

(3) See Note 14 -- Additional Comprehensive Income (Loss) Detail for additional detail


Assets	Assets	March 31, 2021		December 31, 2020		Assets	September 30, 2021		December 31, 2020
Total assets for reportable segments	Total assets for reportable segments	$	1,283,284	$	1,232,153	Total assets for reportable segments	$	1,327,344	$	1,232,153
Cash and cash equivalents	Cash and cash equivalents	154,066		92,794		Cash and cash equivalents	85,020		92,794
Other assets	Other assets	78,065		79,030		Other assets	261,669		79,030
Total consolidated assets	Total consolidated assets	$	1,515,415	$	1,403,977	Total consolidated assets	$	1,674,033	$	1,403,977

Geographic Information


Long-Lived Assets	Long-Lived Assets	March 31, 2021		December 31, 2020		Long-Lived Assets	September 30, 2021		December 31, 2020
United States	United States	$	530,895	$	503,818	United States	$	633,241	$	503,818
Mexico	Mexico	294,702		293,436		Mexico	245,482		293,436
Canada	Canada	162,072		149,018		Canada	202,253		149,018
Other	Other	127		657		Other	127		657
Total	Total	$	987,796	$	946,929	Total	$	1,081,103	$	946,929


Revenue	Revenue	Three months ended March 31,			Revenue	Three months ended September 30,				Nine months ended September 30,
			2021				2020		Revenue	2021		2020		2021		2020
United States	United States		$	121,772			$	96,945		$	133,322	$	147,973	$	384,918	$	361,197
Mexico	Mexico		80,345				74,339		Mexico	74,647		81,755		240,026		194,064
Canada	Canada		0				1,883		Canada	—		—		—		1,883
Total	Total		$	202,117			$	173,167	Total	207,969		$	229,728	$	624,944	$	557,144

1112

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 4 – RECEIVABLES

Receivables consist of the following:


In thousands	In thousands	March 31, 2021		December 31, 2020		In thousands	September 30, 2021		December 31, 2020
Current receivables:	Current receivables:					Current receivables:
Trade receivables	Trade receivables	$	5,008	$	3,293	Trade receivables	$	4,425	$	3,293
Value added tax (“VAT”) receivable		16,265		17,080
VAT receivable						VAT receivable	17,365		17,080
Income tax receivable	Income tax receivable	448		530		Income tax receivable	216		530

Other	Other	885		2,581		Other	950		2,581
		$	22,606	$	23,484		$	22,956	$	23,484
Non-current receivables:	Non-current receivables:					Non-current receivables:
VAT receivable(1)	VAT receivable(1)	$	25,605	$	26,447	VAT receivable(1)	$	—	$	26,447

		25,605		26,447
Total receivables	Total receivables	$	48,211	$	49,931	Total receivables	$	22,956	$	49,931

(1) Represents VAT that was paid to the Mexican government associated with Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation. ~~The~~While the Company continues to pursue recovery from the Mexican government (including through ongoing ~~litigation).~~litigation and potential international arbitration), the Company wrote down the carrying value of the receivable at September 30, 2021. See Note 17 -- Commitments and Contingencies for additional detail. ~~The $0.8 million decrease in the three months ended March 31, 2021 is attributable to a weaker Mexican Peso.~~

NOTE 5 – INVENTORY AND ORE ON LEACH PADS

Inventory consists of the following:


In thousands	In thousands	March 31, 2021		December 31, 2020		In thousands	September 30, 2021		December 31, 2020
Inventory:	Inventory:					Inventory:
Concentrate	Concentrate	$	2,100	$	2,909	Concentrate	$	2,740	$	2,909
Precious metals	Precious metals	16,573		14,788		Precious metals	11,762		14,788
Supplies	Supplies	34,918		33,513		Supplies	37,832		33,513
		53,591		51,210			$	52,334	$	51,210
Ore on Leach Pads:	Ore on Leach Pads:					Ore on Leach Pads:
Current	Current	78,689		74,866		Current	$	74,803	$	74,866
Non-current	Non-current	87,723		81,963		Non-current	78,302		81,963
		166,412		156,829			$	153,105	$	156,829

Long-term Stockpile (included in Other)	Long-term Stockpile (included in Other)	$	10,759	$	5,664	Long-term Stockpile (included in Other)	$	16,636	$	5,664

Total Inventory and Ore on Leach Pads	Total Inventory and Ore on Leach Pads	$	230,762	$	213,703	Total Inventory and Ore on Leach Pads	$	222,075	$	213,703

Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method. At the end of the third quarter of 2021, the cost of metal and leach pad inventory at Rochester exceeded its net realizable value which resulted in a non-cash write down of $6.0 million (approximately $5.3 million was recognized in Costs Applicable to Sales and $0.7 million in Amortization).

~~NOTE 6 – INVESTMENTS~~

~~Equity Securities~~

~~The Company makes strategic investments in equity and debt securities of silver and gold exploration, development and royalty and streaming companies.~~

At March 31, 2021
In thousands Cost Gross
Unrealized
Losses Gross
Unrealized
Gains Estimated
Fair Value
Equity Securities
Integra Resources Corp. $ 7,500 $ 0 $ 707 $ 8,207
Other 2 0 0 2
Equity securities $ 7,502 $ 0 $ 707 $ 8,209

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

At December 31, 2020
In thousands Cost Gross
Unrealized
Losses Gross
Unrealized
Gains Estimated
Fair Value
Equity Securities
Metalla Royalty & Streaming Ltd. $ 166 $ 0 $ 875 $ 1,041
Integra Resources Corp. 7,500 0 4,401 11,901
Other 2 (1) 0 1
Equity securities $ 7,668 $ (1) $ 5,276 $ 12,943
NOTE 6 – INVESTMENTS

Equity Securities

The Company makes strategic investments in equity securities of silver and gold exploration, development and royalty and streaming companies.


	At September 30, 2021
In thousands	Cost		Gross Unrealized Losses		Gross Unrealized Gains		Estimated Fair Value
Equity Securities
Victoria Gold Corp.	$	128,710	$	—	$	2,522	131,232
Integra Resources Corp.	9,455		(949)		—		8,506
Other	2		—		—		2
Equity securities	$	138,167	$	(949)	$	2,522	$	139,740


	At December 31, 2020
In thousands	Cost		Gross Unrealized Losses		Gross Unrealized Gains		Estimated Fair Value
Equity Securities
Metalla Royalty & Streaming Ltd.	$	166	$	—	$	875	$	1,041
Integra Resources Corp.	7,500		—		4,401		11,901
Other	2		(1)		—		1
Equity securities	$	7,668	$	(1)	$	5,276	$	12,943

Changes in the fair value of the Company’s investment in equity securities are recognized each period in the Condensed Consolidated Statement of Comprehensive Income (Loss) in Fair value adjustments, net. See Note 12 -- Fair Value Measurements for additional details.

On January 4, 2021, the Company completed the sale of 83,556 shares of common stock of Metalla Royalty & Streaming Ltd. (“Metalla”) (“Metalla Common Shares”) at an average price (net of commission) of $11.19 per Metalla Common Share for net proceeds of $0.9 million, ~~for~~resulting in a realized gain of $0.8 million.

On May 10, 2021, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Orion Co-VI Ltd. (“Orion”). Pursuant to the Exchange Agreement, Orion sold 11,067,714 common shares of Victoria Gold Corp., a British Columbia company (“Victoria”) (representing approximately 17.8% of Victoria’s outstanding common shares) to the Company. As consideration for the purchase of Victoria shares, Coeur issued 12,785,485 shares of its common stock (approximately 4.9% of issued and outstanding shares) to Orion.

The Exchange Agreement provides that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement. The Company determined that the potential for additional share consideration pursuant to the terms of the Exchange Agreement represents an embedded derivative that requires bifurcation. The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expires on October 31, 2021. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date. See Note 12 -- Fair Value Measurements and Note 13 -- Derivative Financial Instruments for additional details.

NOTE 7 – LEASES

Right of Use Assets and Liabilities

The following table summarizes quantitative information pertaining to the Company’s finance and operating leases.

Three months ended March 31,
In thousands 2021 2020
Lease Cost
Operating lease cost $ 3,151 $ 2,897
Short-term operating lease cost $ 3,045 $ 1,667
Finance Lease Cost:
Amortization of leased assets $ 5,888 $ 5,973
Interest on lease liabilities 589 1,005
Total finance lease cost $ 6,477 $ 6,978

~~Supplemental cash flow information related to leases was as follows:~~

Three months ended March 31,
In thousands 2021 2020
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 6,401 $ 4,871
Operating cash flows from finance leases $ 589 $ 1,005
Financing cash flows from finance leases $ 5,663 $ 5,901

1314

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements


	Three months ended September 30,				Nine months ended September 30,
In thousands	2021		2020		2021		2020
Lease Cost
Operating lease cost	$	3,180	$	3,067	$	9,437	$	8,969

Short-term operating lease cost	$	2,441	$	2,465	$	7,614	$	6,293

Finance Lease Cost:
Amortization of leased assets	$	5,141	$	4,109	$	16,068	$	16,506
Interest on lease liabilities	1,833		927		3,441		2,852



Total finance lease cost	$	6,974	$	5,036	$	19,509	$	19,358

Supplemental cash flow information related to leases was as follows:


	Three months ended September 30,				Nine months ended September 30,
In thousands	2021		2020		2021		2020
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,621	$	5,850	$	17,256	$	16,201
Operating cash flows from finance leases	$	1,833	$	927	$	3,441	$	2,852
Financing cash flows from finance leases	$	7,944	$	8,557	$	22,970	$	20,171

Supplemental balance sheet information related to leases was as follows:


In thousands	In thousands	March 31, 2021			December 31, 2020			In thousands	September 30, 2021			December 31, 2020
Operating Leases	Operating Leases							Operating Leases
Other assets, non-current	Other assets, non-current	$	37,881		$	40,511		Other assets, non-current	$	32,754		$	40,511

Accrued liabilities and other	Accrued liabilities and other	$	11,798		$	12,410		Accrued liabilities and other	$	11,202		$	12,410
Other long-term liabilities	Other long-term liabilities	25,196			27,433			Other long-term liabilities	20,631			27,433
Total operating lease liabilities	Total operating lease liabilities	$	36,994		$	39,843		Total operating lease liabilities	$	31,833		$	39,843

Finance Leases	Finance Leases							Finance Leases
Property and equipment, gross	Property and equipment, gross	$	105,945		$	104,433		Property and equipment, gross	$	113,732		$	104,433
Accumulated depreciation	Accumulated depreciation	(65,662)			(60,272)			Accumulated depreciation	(58,153)			(60,272)
Property and equipment, net	Property and equipment, net	$	40,283		$	44,161		Property and equipment, net	$	55,579		$	44,161

Debt, current	Debt, current	$	21,404		$	22,074		Debt, current	$	31,384		$	22,074
Debt, non-current	Debt, non-current	23,149			25,837			Debt, non-current	23,004			25,837
Total finance lease liabilities	Total finance lease liabilities	$	44,553		$	47,911		Total finance lease liabilities	$	54,388		$	47,911

Weighted Average Remaining Lease Term	Weighted Average Remaining Lease Term							Weighted Average Remaining Lease Term
Weighted-average remaining lease term - finance leases	Weighted-average remaining lease term - finance leases	1.28			1.36			Weighted-average remaining lease term - finance leases	1.66			1.36
Weighted-average remaining lease term - operating leases	Weighted-average remaining lease term - operating leases	3.81			4.00			Weighted-average remaining lease term - operating leases	3.40			4.00

Weighted Average Discount Rate	Weighted Average Discount Rate							Weighted Average Discount Rate
Weighted-average discount rate - finance leases	Weighted-average discount rate - finance leases	5.30		%	5.37		%	Weighted-average discount rate - finance leases	5.11		%	5.37		%
Weighted-average discount rate - operating leases	Weighted-average discount rate - operating leases	5.19		%	5.18		%	Weighted-average discount rate - operating leases	5.19		%	5.18		%

Minimum future lease payments under finance and operating leases with terms longer than one year are as follows:

As of March 31, 2021 (In thousands)
Operating leases Finance leases
2021 $ 9,140 $ 19,020
2022 10,988 18,161
2023 10,407 8,870
2024 8,812 2,039
2025 213 490
Thereafter 1,169 0
Total $ 40,729 $ 48,580
Less: imputed interest (3,735) (4,027)
Net lease obligation $ 36,994 $ 44,553

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements


As of September 30, 2021 (In thousands)
	Operating leases		Finance leases
2021	$	3,107	$	6,082
2022	10,994		23,920
2023	10,432		14,218
2024	8,887		6,842
2025	213		5,298
Thereafter	1,165		3,386
Total	$	34,798	$	59,746
Less: imputed interest	(2,965)		(5,358)
Net lease obligation	$	31,833	$	54,388

NOTE 8 – DEBT


		March 31, 2021				December 31, 2020					September 30, 2021				December 31, 2020
In thousands	In thousands	Current		Non-Current		Current		Non-Current		In thousands	Current		Non-Current		Current		Non-Current
2029 Senior Notes, net(1)	2029 Senior Notes, net(1)	$	0	$	367,572	$	0	$	0	2029 Senior Notes, net(1)	$	—	$	368,038	$	—	$	—
2024 Senior Notes, net(2)	2024 Senior Notes, net(2)	0		0		0		227,590		2024 Senior Notes, net(2)	—		—		—		227,590
Revolving Credit Facility(3)	Revolving Credit Facility(3)	0		0		0		0		Revolving Credit Facility(3)	—		20,000		—		—
Finance lease obligations	Finance lease obligations	21,404		23,149		22,074		25,837		Finance lease obligations	31,384		23,004		22,074		25,837
		$	21,404	$	390,721	$	22,074	$	253,427		$	31,384	$	411,042	$	22,074	$	253,427

(1) Net of unamortized debt issuance costs of ~~$7.4~~$7.0 million and $0.0 million at ~~March 31,~~September 30, 2021 and December 31, 2020, respectively.

(2) Net of unamortized debt issuance costs of $0.0 million and $2.4 million at ~~March 31,~~September 30, 2021 and December 31, 2020, respectively.

(3) Unamortized debt issuance costs of ~~$2.7~~$2.5 million and $1.5 million at ~~March 31,~~September 30, 2021 and December 31, 2020, respectively, included in Other Non-Current Assets.

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Consolidated Financial Statements~~

2029 Senior Notes

In March 2021, the Company completed an offering of $375.0 million in aggregate principal amount of senior notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $367.5 million (the “2029 Senior Notes”). The 2029 Senior Notes are governed by an Indenture dated as of March 1, 2021 (the “Indenture”), among the Company, as issuer, certain of the Company's subsidiaries named therein, as guarantors thereto (the “Guarantors”), and The Bank of New York Mellon, as trustee (the “Trustee”). The 2029 Senior Notes bear interest at a rate of 5.125% per year from the date of issuance. Interest on the 2029 Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2021. The 2029 Senior Notes will mature on February 15, 2029 and are fully and unconditionally guaranteed by the Guarantors.

At any time prior to February 15, 2024, the Company may redeem all or part of the 2029 Senior Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) a make-whole premium as of the date of redemption, plus (iii) accrued and unpaid interest and additional interest, if any, thereon, to the date of redemption. In addition, the Company may redeem some or all of the 2029 Senior Notes on or after February 15, 2024, at redemption prices set forth in the Indenture, together with accrued and unpaid interest. At any time prior to February 15, 2024, the Company may use the proceeds of certain equity offerings to redeem up to 35% of the aggregate principal amount of the 2029 Senior Notes, including any permitted additional 2029 Senior Notes, at a redemption price equal to 105.125% of the principal amount.

The Indenture contains covenants that, among other things, limit the Company’s ability under certain circumstances to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem capital stock, prepay, redeem or repurchase certain debt, make loans and investments, create liens, sell, transfer or otherwise dispose of assets, enter into transactions with affiliates, enter into agreements restricting the Company's subsidiaries' ability to pay dividends and impose conditions on the Company’s ability to engage in mergers, consolidations and sales of all or substantially all of its assets. The Indenture also contains certain “Events of Default” (as defined in the Indenture) customary for indentures of this type. If an Event of Default has occurred and is continuing, the Trustee or the holders of not less than 25% in aggregate principal amount of the 2029 Senior Notes then outstanding may, and the Trustee at the request of the holders of not less than 25% in aggregate principal amount of the 2029 Senior Notes then outstanding shall, declare all unpaid principal of, premium, if any, and accrued interest on all the 2029 Senior Notes to be due and payable.

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

2024 Senior Notes

Concurrent with the offering of the 2029 Senior Notes, the Company commenced a cash tender offer (the “Tender Offer”) to purchase the outstanding $230.0 million in aggregate principal amount of its 5.875% Senior Notes due 2024 (the “2024 Senior Notes”). The Tender Offer was made on the terms and subject to the conditions set forth in the Offer to Purchase dated February 22, 2021. The Tender Offer expired at 5:00 p.m., New York City time, on February 26, 2021 (the “Expiration Time”). Holders of the 2024 Senior Notes who tendered (and did not validly withdraw) their notes at or prior to the Expiration Time were entitled to receive in cash $1,029.38 per $1,000 principal amount of 2024 Senior Notes validly tendered (and not validly withdrawn) and accepted for purchase by the Company in the Tender Offer, plus accrued and unpaid interest on such 2024 Senior Notes. $102.8 million aggregate principal amount of the 2024 Senior Notes were validly tendered and purchased by the Company on March 1, 2021. In accordance with the terms of the indenture governing the 2024 Senior Notes, the remaining $127.2 million aggregate principal amount of the 2024 Senior Notes were redeemed on March 31, 2021 at the redemption price specified in the indenture governing the 2024 Senior Notes ($1,029.38 per $1,000 principal amount redeemed, plus accrued and unpaid interest). The Company recorded a loss of $9.2 million as a result of the extinguishment of the 2024 Senior Notes.

Revolving Credit Facility

On March 1, 2021, the Company entered into a fifth amendment (the “Amendment”) to its credit agreement, dated as of September 29, 2017 (as previously amended, the “Credit Agreement”), by and among the Company, as borrower, certain subsidiaries of the Company, as guarantors, Bank of America, N.A., as administrative agent and Bank of America, N.A., Royal Bank of Canada, Bank of Montreal, Chicago Branch, the Bank of Nova Scotia and ING Capital LLC, as lenders. The Amendment, among other things, (i) extended the maturity date of the senior secured revolving credit facility (“Revolving Credit Facility” or “RCF”) provided under the Credit Agreement to March 2025 and (ii) permits the Company to obtain one or more increases of the RCF, which is currently in the amount of $300.0 million, in an aggregate amount of up to $100.0 million in incremental loans and commitments, subject to certain conditions, including obtaining commitments from relevant lenders to provide such increase.

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Consolidated Financial Statements~~

At ~~March 31,~~September 30, 2021, the Company had ~~no borrowings~~$20.0 million drawn at an interest rate of 2.3% and $35.0 million in outstanding letters of credit under the RCF. ~~At March 31, 2021, the interest rate on the principal of the RCF was 2.4%.~~

Finance Lease Obligations

From time-to-time, the Company acquires mining equipment and facilities under finance lease agreements. In the ~~three~~nine months ended ~~March 31,~~September 30, 2021, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester and Kensington. Coeur secured a finance lease package for nearly $60 million during the quarter, a portion of which has been funded as of September 30, 2021. The package is earmarked for planned equipment purchases for the project in 2021 and 2022, and has an interest rate of 5.20%. All finance lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments. See Note 7 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.

Interest Expense


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
2024 Senior Notes	2024 Senior Notes		$	2,591		$	3,378	2024 Senior Notes	$	—	$	3,378	$	2,591	$	10,134
2029 Senior Notes	2029 Senior Notes		1,602			0		2029 Senior Notes	4,805		—		11,211		—
Revolving Credit Facility	Revolving Credit Facility		480			549		Revolving Credit Facility	508		767		1,438		2,520
Finance lease obligations	Finance lease obligations		589			1,005		Finance lease obligations	1,833		927		3,441		2,852
Amortization of debt issuance costs	Amortization of debt issuance costs		404			381		Amortization of debt issuance costs	415		372		1,306		1,143

Other debt obligations	Other debt obligations		57			35		Other debt obligations	51		45		225		261
Capitalized interest	Capitalized interest		(813)			(220)		Capitalized interest	(4,375)		(393)		(6,972)		(921)
Total interest expense, net of capitalized interest	Total interest expense, net of capitalized interest		$	4,910		$	5,128	Total interest expense, net of capitalized interest	$	3,237	$	5,096	$	13,240	$	15,989

Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

NOTE 9 – RECLAMATION

Reclamation and mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties. On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.

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


		Three Months Ended March 31,			Three Months Ended September 30,						Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
Asset retirement obligation - Beginning	Asset retirement obligation - Beginning		$	137,120		$	134,543	Asset retirement obligation - Beginning	$	141,205	$	138,904	$	137,120	$	134,543
Accretion	Accretion		2,863			2,804		Accretion	2,984		2,924		8,769		8,591

Settlements	Settlements		(629)			(719)		Settlements	(1,406)		(930)		(3,106)		(2,236)
Asset retirement obligation - Ending	Asset retirement obligation - Ending		$	139,354		$	136,628	Asset retirement obligation - Ending	$	142,783	$	140,898	$	142,783	$	140,898

The Company accrued ~~$2.1~~$2.0 million and ~~$1.9~~$2.2 million at each of ~~March 31,~~September 30, 2021 and ~~March~~December 31, 2020, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 10 - INCOME AND MINING TAXES

The following table summarizes the components of Income and mining tax (expense) benefit for the three and nine months ended ~~March 31,~~September 30, 2021 and 2020 by significant jurisdiction:


		Three months ended March 31,						Three months ended September 30,											Nine months ended September 30,
			2021			2020					2021						2020					2021				2020
In thousands	In thousands			Income (loss) before tax		Tax (expense) benefit			Income (loss) before tax			Tax (expense) benefit		In thousands	Income (loss) before tax		Tax (expense) benefit			Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit
United States	United States			$	(8,531)	$	(1,625)		$	(11,005)		$	(736)	United States	$	(30,247)	$	4,078		$	24,592	$	(6,003)	$	(9,131)	$	(4,775)	$	26,132	$	(5,913)
Canada	Canada			(12,785)		0			(26,029)			15		Canada	(13,879)		—			(12,895)		—		(39,643)		—		(54,544)		232
Mexico	Mexico			32,914		(11,161)			21,359			4,631		Mexico	(4,138)		(10,478)			28,320		(7,110)		59,603		(29,751)		54,483		(6,366)
Other jurisdictions	Other jurisdictions			3,248		0			(164)			29		Other jurisdictions	(104)		—			(48)		—		3,135		—		(306)		29
				$	14,846	$	(12,786)		$	(15,839)		$	3,939		$	(48,368)	$	(6,400)		$	39,969	$	(13,113)	$	13,964	$	(34,526)	$	25,765	$	(12,018)

During the ~~first~~third quarter of 2021, the Company reported estimated income and mining tax expense of approximately ~~$12.8~~$6.4 million, resulting in an effective tax rate of ~~86.1%~~(13.2)%. This compares to income tax expense of ~~$3.9~~$13.1 million for an effective

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements~~

tax rate of ~~24.9%~~32.8% during the ~~first~~third quarter of 2020. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) ~~mining taxes; (ii)~~ variations in our income before income taxes; ~~(iii)~~(ii) geographic distribution of that income; (iii) mining taxes; (iv) foreign exchange rates; (v) percentage depletion; (vi) the non-recognition of tax assets; and (vii) the impact of uncertain tax positions. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see the section titled “Risk Factors” in the 2020 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 2016 forward for the U.S. federal jurisdiction and from 2011 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next twelve 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 $0.5 million and ~~$1.0~~$1.5 million in the next twelve months.

At ~~March 31,~~September 30, 2021 and December 31, 2020, the Company had $0.3 million and $0.7 million of total gross unrecognized tax benefits, respectively, that, if recognized, 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

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

part of its income tax expense. At ~~March 31,~~September 30, 2021 and December 31, 2020, the amount of accrued income-tax-related interest and penalties was ~~$0.3~~$0.4 million and $1.1 million, respectively.

NOTE 11 – STOCK-BASED COMPENSATION

The Company has stock incentive plans for executives, directors and eligible employees. Stock awards include performance shares, restricted stock and stock options. Stock-based compensation expense in the three and nine months ended ~~March 31,~~September 30, 2021 ~~and 2020~~ was ~~$4.3~~$2.7 million and $10.2 million, respectively, compared to $2.0 million ~~respectively.~~and $6.3 million in the three and nine months ended September 30, 2020. At ~~March 31,~~September 30, 2021, there was ~~$7.0~~$11.9 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of ~~1.5~~1.6 years.

The following table summarizes the grants awarded during the ~~three~~nine months ended ~~March 31,~~September 30, 2021:


Grant date	Grant date	Restricted stock	Grant date fair value of restricted stock		Performance shares	Grant date fair value of performance shares		Grant date	Restricted stock	Grant date fair value of restricted stock		Performance shares	Grant date fair value of performance shares
February 24, 2021	February 24, 2021	5,000	$	10.40	0	$	0	February 24, 2021	5,000	$	10.40	—	$	—
May 12, 2021								May 12, 2021	893,329	$	9.40	593,577	$	10.19

NOTE 12 – FAIR VALUE MEASUREMENTS


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
Unrealized gain (loss) on equity securities	Unrealized gain (loss) on equity securities		$	(4,568)		$	(8,819)	Unrealized gain (loss) on equity securities	$	(35,709)	$	2,276	$	(3,702)	$	12,307
Realized gain (loss) on equity securities	Realized gain (loss) on equity securities		769			0		Realized gain (loss) on equity securities	—		(33)		769		(8,816)

Exchange agreement embedded derivative								Exchange agreement embedded derivative	9,269		—		9,933		—
Fair value adjustments, net	Fair value adjustments, net		$	(3,799)		$	(8,819)	Fair value adjustments, net	$	(26,440)	$	2,243	$	7,000	$	3,491

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, 2021									Fair Value at September 30, 2021
In thousands	In thousands	Total		Level 1		Level 2		Level 3		In thousands	Total		Level 1		Level 2		Level 3
Assets:	Assets:									Assets:
Equity securities	Equity securities	$	8,209	$	8,209	$	0	$	0	Equity securities	$	139,740	$	139,740	$	—	$	—
Gold zero cost collars	Gold zero cost collars	4,056		0		4,056		0		Gold zero cost collars	1,560		—		1,560		—
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts	9,444		0		9,444		0		Foreign currency forward exchange contracts	3,344		—		3,344		—
Provisional metal sales contracts	Provisional metal sales contracts	3		0		3		0		Provisional metal sales contracts	51		—		51		—
		$	21,712	$	8,209	$	13,503	$	0		$	144,695	$	139,740	$	4,955	$	—
Liabilities:	Liabilities:									Liabilities:

Exchange agreement embedded derivative										Exchange agreement embedded derivative	$	—	$	—	$	—	$	—
Provisional metal sales contracts	Provisional metal sales contracts	$	148	$	0	$	148	$	0	Provisional metal sales contracts	255		—		255		—
											$	255	$	—	$	255	$	—

Fair Value at December 31, 2020
In thousands Total Level 1 Level 2 Level 3
Assets:
Equity and debt securities $ 12,943 $ 12,943 $ 0 $ 0
Foreign currency forward exchange contracts 13,747 0 13,747 0
Provisional metal sales contracts 481 0 481 0
$ 27,171 $ 12,943 $ 14,228 $ 0
Liabilities:
Gold zero cost collars $ 24,883 $ 0 $ 24,883 $ 0
Provisional metal sales contracts 67 0 67 0
$ 24,950 $ 0 $ 24,950 $ 0

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements


	Fair Value at December 31, 2020
In thousands	Total		Level 1		Level 2		Level 3
Assets:
Equity and debt securities	$	12,943	$	12,943	$	—	$	—
Foreign currency forward exchange contracts	13,747		—		13,747		—
Provisional metal sales contracts	481		—		481		—
	$	27,171	$	12,943	$	14,228	$	—
Liabilities:
Gold zero cost collars	$	24,883	$	—	$	24,883	$	—
Provisional metal sales contracts	67		—		67		—
	$	24,950	$	—	$	24,950	$	—

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.

The Company’s foreign currency forward exchange contracts are valued using pricing models with inputs derived from observable market data, including forward market prices and other unobservable inputs. The Company’s gold zero cost collars are valued using pricing models with inputs derived from observable market data, including forward market prices, yield curves, credit spreads. The Company’s provisional metal sales contracts include concentrate and certain doré sales contracts that are valued using pricing models with inputs derived from observable market data, including forward market prices. The 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.

As described in Note 6 - Investments, the Exchange Agreement provides that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement. The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation. The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expires on October 31, 2021. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date. The fair value of the outstanding embedded derivative was determined using a pricing model with inputs derived from observable market data, including stock prices, stock price volatility and risk-free rates and other unobservable inputs such as Monte Carlo simulations and probabilities of Coeur being contractually obligated to make a payment. As the model inputs are estimated based on observable and unobservable data, the Company classifies this embedded derivative in Level 3 of the fair value hierarchy, a change in these unobservable inputs may result in a significantly higher or lower fair value measurement. As of September 30, 2021, the fair value of the exchange agreement embedded derivative was $0.

No assets or liabilities were transferred between fair value levels in the ~~three~~nine months ended ~~March 31,~~September 30, 2021.

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the three and nine months ended September 30, 2021.


	Three Months Ended September 30, 2021
In thousands	Balance at the beginning of the period		Initial valuation		Revaluation		Settlements		Balance at the end of the period
Liabilities:
Exchange agreement embedded derivative	$	9,269	$	—	$	(9,269)	$	—	$	—


	Nine Months Ended September 30, 2021
In thousands	Balance at the beginning of the period		Initial valuation		Revaluation		Settlements		Balance at the end of the period
Liabilities:
Exchange agreement embedded derivative	$	—	$	9,933	$	(9,933)	$	—	$	—

The fair value of financial assets and liabilities carried at book value in the financial statements at ~~March 31,~~September 30, 2021 and December 31, 2020 is presented in the following table:


		March 31, 2021											September 30, 2021
In thousands	In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3		In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3

Liabilities:	Liabilities:											Liabilities:
2029 Senior Notes(1)	2029 Senior Notes(1)	$	367,572	$	351,792	$	0	$	351,792	$	0	2029 Senior Notes(1)	$	368,038	$	354,873	$	—	$	354,873	$	—
Revolving Credit Facility(2)	Revolving Credit Facility(2)	$	0	$	0	$	0	$	0	$	0	Revolving Credit Facility(2)	$	20,000	$	20,000	$	—	$	20,000	$	—

(1) Net of unamortized debt issuance costs of ~~$7.4~~$7.0 million

(2) Unamortized debt issuance costs of ~~$2.7~~$2.5 million included in Other Non-Current Assets.

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements~~


		December 31, 2020											December 31, 2020
In thousands	In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3		In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3

Liabilities:	Liabilities:											Liabilities:
2024 Senior Notes(1)	2024 Senior Notes(1)	$	227,590	$	229,874	$	0	$	229,874	$	0	2024 Senior Notes(1)	$	227,590	$	229,874	$	—	$	229,874	$	—
Revolving Credit Facility(2)	Revolving Credit Facility(2)	$	0	$	0	$	0	$	0	$	0	Revolving Credit Facility(2)	$	—	$	—	$	—	$	—	$	—

(1) Net of unamortized debt issuance costs of $2.4 million.

(2) Unamortized debt issuance costs of $1.5 million included in Other Non-Current Assets.

The fair value of the 2024 Senior Notes was estimated using quoted market prices. The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES

The Company is exposed to various market risks, including the effect of changes in metal prices, foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes.

The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Derivatives Not Designated as Hedging Instruments

Provisional Metal Sales

The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.

Exchange Agreement Embedded Derivative

The Exchange Agreement provides that Orion may be entitled to additional Coeur shares in the event Coeur acquires Victoria in the future for a higher per share consideration, subject to the terms and conditions of the Exchange Agreement. The Company determined that the potential for additional share consideration in the Exchange Agreement represents an embedded derivative that requires bifurcation. The obligation to deliver additional Coeur shares pursuant to the Exchange Agreement expires on October 31, 2021. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the embedded derivative as of the inception date of the Exchange Agreement and adjust the fair value as of each subsequent balance sheet date. As of September 30, 2021, the fair value of the exchange agreement embedded derivative was $0.

At ~~March 31,~~September 30, 2021, the Company had the following derivative instruments that settle as follows:

In thousands except average prices and notional ounces 2021 2022 and Thereafter
Provisional gold sales contracts $ 21,630 $ 0
Average gold price per ounce $ 1,782 $ 0
Notional ounces 12,137 0


In thousands except average prices and notional ounces	2021		2022 and Thereafter




















Provisional gold sales contracts	$	28,520	$	—
Average gold price per ounce	$	1,786	$	—
Notional ounces	15,966		—

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


		March 31, 2021					September 30, 2021
In thousands	In thousands	Prepaid expenses and other		Accrued liabilities and other		In thousands	Prepaid expenses and other		Accrued liabilities and other

Provisional metal sales contracts	Provisional metal sales contracts	$	3	$	148	Provisional metal sales contracts	$	51	$	255


	December 31, 2020
In thousands	Prepaid expenses and other		Accrued liabilities and other
Provisional metal sales contracts	$	481	$	67

The following represent mark-to-market gains (losses) on derivative instruments in the three and nine months ended ~~March 31,~~September 30, 2021 and 2020, respectively (in thousands):


			Three Months Ended March 31,					Three Months Ended September 30,			Nine Months Ended September 30,
Financial statement line	Financial statement line	Derivative		2021		2020			Financial statement line	Derivative	2021		2020		2021		2020
Revenue	Revenue	Provisional metal sales contracts		$	(559)	$	500		Revenue	Provisional metal sales contracts	$	79	$	(962)	$	(618)	$	250
Fair value adjustments, net									Fair value adjustments, net	Exchange agreement embedded derivative	9,269		—		9,933		—

											$	9,348	$	(962)	$	9,315	$	250

Derivatives Designated as Cash Flow Hedging Strategies

To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements. The contracts are net cash settled monthly and, if the price of

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements~~

gold at the time of expiration is between the put and call prices, would expire at no cost to the Company. If the price of gold at the time of expiration is lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively. The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

To protect the Company’s exposure to fluctuations in foreign currency exchange rates for subsidiaries whose functional currency is U.S dollar and are exposed to forecasted transaction denominated in the Mexican Peso and the Canadian Dollar, in March 2020, the Company entered into foreign currency forward exchange contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions. The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

At ~~March 31,~~September 30, 2021, the Company had the following derivative cash flow hedge instruments that settle as follows:


In thousands except average prices and notional ounces	In thousands except average prices and notional ounces	2021		2022 and Thereafter		In thousands except average prices and notional ounces	2021		2022 and Thereafter
Gold put options	Gold put options					Gold put options
Average gold strike price per ounce	Average gold strike price per ounce	$	1,600	$	1,626	Average gold strike price per ounce	$	1,600	$	1,630
Notional ounces	Notional ounces	119,025		126,000		Notional ounces	39,675		132,000

Gold call options	Gold call options					Gold call options
Average gold strike price per ounce	Average gold strike price per ounce	$	1,877	$	2,030	Average gold strike price per ounce	$	1,882	$	2,038
Notional ounces	Notional ounces	119,025		126,000		Notional ounces	39,675		132,000

Foreign currency forward exchange contracts - Mexican Peso	Foreign currency forward exchange contracts - Mexican Peso					Foreign currency forward exchange contracts - Mexican Peso
Average Mexican Peso exchange rate	Average Mexican Peso exchange rate	$	25.14	$	0	Average Mexican Peso exchange rate	$	25.43	$	—
Notional US dollar	Notional US dollar	$	45,000	$	0	Notional US dollar	$	15,000	$	—

The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of Revenue in the same period as the related sale is recognized. Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of Costs Applicable to Sales or Pre-development, Reclamation and Other in the same period the related expenses are incurred.

At inception, the Company performed an assessment of the forecasted transactions and the hedging instruments and determined that the hedging relationships are considered perfectly effective. Future assessments are performed to verify that critical terms of the hedging instruments and the forecasted transactions continue to match, and the forecasted transactions remain probable, as well as an assessment of any adverse developments regarding the risk of the counterparties defaulting on their commitments. There have been no such changes in critical terms or adverse developments.

As of ~~March 31,~~September 30, 2021, the Company had ~~$13.5~~$4.9 million of net after-tax gain in AOCI related to losses from cash flow hedge transactions, of which ~~$10.4~~$4.6 million of net after-tax gains is expected to be recognized in its Consolidated Statement of Comprehensive Income (Loss) during the next 12 months. Actual amounts ultimately reclassified to net income are dependent on the price of gold for metal contracts and the Canadian and Mexican exchange rates for foreign currency contracts.

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

March 31, 2021
In thousands Prepaid expenses and other Accrued liabilities and other
Gold zero cost collars $ 4,056 $ 0
Foreign currency forward exchange contracts 9,444 0
$ 13,500 $ 0


	September 30, 2021
In thousands	Prepaid expenses and other		Accrued liabilities and other
Gold zero cost collars	$	1,560	$	—
Foreign currency forward exchange contracts	3,344		—
	$	4,904	$	—


		December 31, 2020					December 31, 2020
In thousands	In thousands	Prepaid expenses and other		Accrued liabilities and other		In thousands	Prepaid expenses and other		Accrued liabilities and other
Gold zero cost collars	Gold zero cost collars	$	0	$	24,883	Gold zero cost collars	$	—	$	24,883
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts	13,747		0		Foreign currency forward exchange contracts	13,747		—
		$	13,747	$	24,883		$	13,747	$	24,883

2023

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in ~~Accumulated Other Comprehensive Income (“AOCI”)~~AOCI and the Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended ~~March 31,~~September 30, 2021 and 2020, respectively (in thousands).


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
			2021			2020			2021		2020		2021		2020
Amount of Gain (Loss) Recognized in AOCI	Amount of Gain (Loss) Recognized in AOCI							Amount of Gain (Loss) Recognized in AOCI
Gold zero cost collars	Gold zero cost collars		$	28,547		$	163	Gold zero cost collars	$	1,614	$	(24,003)	$	25,590	$	(38,353)
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts		(1,190)			65		Foreign currency forward exchange contracts	(265)		2,755		133		10,214
			$	27,357		$	228		$	1,349	$	(21,248)	$	25,723	$	(28,139)

Amount of (Gain) Loss Reclassified From AOCI to Earnings	Amount of (Gain) Loss Reclassified From AOCI to Earnings							Amount of (Gain) Loss Reclassified From AOCI to Earnings
Gold zero cost collars	Gold zero cost collars		$	392		$	0	Gold zero cost collars	$	23	$	4,563	$	853	$	4,563
Foreign currency forward exchange contracts	Foreign currency forward exchange contracts		(3,113)			0		Foreign currency forward exchange contracts	(3,925)		(1,921)		(10,536)		(2,600)
			$	(2,721)		$	0		$	(3,902)	$	2,642	$	(9,683)	$	1,963

Credit Risk

The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties.

NOTE 14 – ADDITIONAL COMPREHENSIVE INCOME (LOSS) DETAIL

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


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
COVID-19	COVID-19		$	3,005		$	272	COVID-19	$	617	$	4,037	$	5,937	$	10,418
Silvertip ongoing carrying costs	Silvertip ongoing carrying costs		6,921			2,608		Silvertip ongoing carrying costs	5,589		3,913		18,957		11,704
Silvertip temporary suspension costs	Silvertip temporary suspension costs		0			3,659		Silvertip temporary suspension costs	—		2,768		—		10,107
Gain on modification of right of use lease	Gain on modification of right of use lease		0			(4,051)		Gain on modification of right of use lease	—		—		—		(4,051)
Asset retirement accretion	Asset retirement accretion		2,905			2,847		Asset retirement accretion	3,027		2,968		8,898		8,724
Other	Other		881			1,220		Other	1,273		1,345		3,164		3,359
Pre-development, reclamation and other	Pre-development, reclamation and other		$	13,712		$	6,555	Pre-development, reclamation and other	$	10,506	$	15,031	$	36,956	$	40,261

Other, net consists of the following:


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
Foreign exchange gain (loss)	Foreign exchange gain (loss)		$	(773)		$	(76)	Foreign exchange gain (loss)	$	(1,028)	$	(599)	$	(2,299)	$	(665)
Gain (loss) on sale of assets	Gain (loss) on sale of assets		4,053			9		Gain (loss) on sale of assets	(92)		(2,476)		4,582		(2,458)

VAT write-down								VAT write-down	(25,982)		—		(25,982)		—
Gold zero cost collars novation fee								Gold zero cost collars novation fee	—		(3,819)		—		(3,819)
Gain (loss) on sale of Manquiri NSR consideration	Gain (loss) on sale of Manquiri NSR consideration		0			365		Gain (loss) on sale of Manquiri NSR consideration	—		—		—		365

Gain (loss) on Silvertip contingent consideration	Gain (loss) on Silvertip contingent consideration		0			955		Gain (loss) on Silvertip contingent consideration	—		—		—		955

Other	Other		347			628		Other	384		582		1,309		1,312
Other, net	Other, net		$	3,627		$	1,881	Other, net	$	(26,718)	$	(6,312)	$	(22,390)	$	(4,310)

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

NOTE 15 – 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 the Company’s common stock outstanding during the period. Diluted net income (loss) per share

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements~~

reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.

For the three and nine months ended ~~March 31,~~September 30, 2021, ~~and 2020,~~ there were ~~112,610~~1,513,288 and ~~1,712,033~~1,489,158 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. Similarly, 182,803 and 1,722,014 common stock equivalents were excluded in the diluted earnings per share calculation for the three and nine months ended September 30, 2020, respectively.


		Three months ended March 31,			Three months ended September 30,				Nine months ended September 30,
In thousands except per share amounts	In thousands except per share amounts		2021			2020		In thousands except per share amounts	2021		2020		2021		2020

Net income (loss) available to common stockholders	Net income (loss) available to common stockholders		$	2,060		$	(11,900)	Net income (loss) available to common stockholders	$	(54,768)	$	26,856	$	(20,562)	$	13,747

Weighted average shares:	Weighted average shares:							Weighted average shares:
Basic	Basic		241,397			240,255		Basic	254,744		240,983		247,675		240,729
Effect of stock-based compensation plans	Effect of stock-based compensation plans		3,123			0		Effect of stock-based compensation plans	—		2,866		—		1,277
Diluted	Diluted		244,520			240,255		Diluted	254,744		243,849		247,675		242,006

Income (loss) per share:	Income (loss) per share:							Income (loss) per share:

Basic	Basic		$	0.01		$	(0.05)	Basic	$	(0.21)	$	0.11	$	(0.08)	$	0.06

Diluted(1)	Diluted(1)		$	0.01		$	(0.05)	Diluted(1)	$	(0.21)	$	0.11	$	(0.08)	$	0.06

On April 23, 2020, the Company entered into an ATM Equity Offering Sales Agreement (the “Sales Agreement”) with BofA Securities, Inc. and RBC Capital Markets, LLC as sales agents (the “Sales Agents”) and filed a prospectus supplement for the sale of its common stock, par value $0.01 per share, by way of an “at the market” offering having an aggregate offering price of up to $100,000,000 (the “ATM Program”). Sales under the ATM Program, if any, will be made pursuant to the terms of the Sales Agreement. At ~~March 31,~~September 30, 2021, the Company had not elected to sell any shares of its common stock under the ATM Program.

NOTE 16 - SUPPLEMENTAL GUARANTOR INFORMATION

The following summarized financial information is presented to satisfy disclosure requirements of Rule 13-01 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc. and its subsidiaries, Coeur Capital, Inc., Coeur Sterling, Inc., Sterling Intermediate Holdco, Inc., and Coeur Sterling Holdings LLC (collectively, the “Subsidiary Guarantors”) of the 2029 Senior Notes. The following schedules present summarized financial information of (a) Coeur, the parent company and (b) the Subsidiary Guarantors (collectively the “Obligor Group”). The summarized financial information of the Obligor Group is presented on a combined basis with intercompany balances and transactions between entities in the Obligor Group eliminated. The Obligor Group’s amounts due from, amounts due to and transactions with certain wholly-owned domestic and foreign subsidiaries of the Company have been presented in separate line items, if they are material. Each of the Subsidiary Guarantors is 100% owned by Coeur and the guarantees are full and unconditional and joint and several obligations. There are no restrictions on the ability of Coeur to obtain funds from the Subsidiary Guarantors by dividend or loan.

2225

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Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

~~MARCH 31,~~SEPTEMBER 30, 2021


In thousands	In thousands	Coeur Mining, Inc.		Guarantor Subsidiaries		In thousands	Coeur Mining, Inc.		Guarantor Subsidiaries
ASSETS	ASSETS					ASSETS
CURRENT ASSETS	CURRENT ASSETS					CURRENT ASSETS
Cash and cash equivalents	Cash and cash equivalents	$	79,288	$	33,008	Cash and cash equivalents	$	5,176	$	29,719
Receivables	Receivables	396		5,431		Receivables	(58)		5,259
Ore on leach pads	Ore on leach pads	0		78,689		Ore on leach pads	—		74,803
Inventory	Inventory	0		27,526		Inventory	—		27,573
Prepaid expenses and other	Prepaid expenses and other	21,664		854		Prepaid expenses and other	11,621		1,009

		101,348		145,508			16,739		138,363
NON-CURRENT ASSETS	NON-CURRENT ASSETS					NON-CURRENT ASSETS
Property, plant and equipment, net	Property, plant and equipment, net	1,987		156,359		Property, plant and equipment, net	1,625		178,584
Mining properties, net	Mining properties, net	0		373,135		Mining properties, net	—		453,619
Ore on leach pads	Ore on leach pads	0		87,723		Ore on leach pads	—		78,302
Restricted assets	Restricted assets	1,481		206		Restricted assets	1,487		206
Equity and debt securities	Equity and debt securities	8,209		0		Equity and debt securities	139,740		—

Net investment in subsidiaries	Net investment in subsidiaries	554,504		69,106		Net investment in subsidiaries	606,776		60,813
Other	Other	195,236		54,160		Other	177,117		54,024
TOTAL ASSETS	TOTAL ASSETS	$	862,765	$	886,197	TOTAL ASSETS	$	943,484	$	963,911

LIABILITIES AND STOCKHOLDERS’ EQUITY	LIABILITIES AND STOCKHOLDERS’ EQUITY					LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES	CURRENT LIABILITIES					CURRENT LIABILITIES
Accounts payable	Accounts payable	$	1,956	$	54,978	Accounts payable	$	2,757	$	72,616
Other accrued liabilities	Other accrued liabilities	6,598		34,684		Other accrued liabilities	9,680		40,561
Debt	Debt	0		13,709		Debt	—		24,107
Reclamation	Reclamation	0		1,584		Reclamation	—		1,584

		8,554		104,955			12,437		138,868
NON-CURRENT LIABILITIES	NON-CURRENT LIABILITIES					NON-CURRENT LIABILITIES
Debt	Debt	367,572		35,970		Debt	388,038		47,035

Reclamation	Reclamation	0		94,718		Reclamation	—		96,364
Deferred tax liabilities	Deferred tax liabilities	151		8,597		Deferred tax liabilities	293		7,522
Other long-term liabilities	Other long-term liabilities	3,643		27,374		Other long-term liabilities	3,344		22,740
Intercompany payable (receivable)	Intercompany payable (receivable)	(237,661)		214,056		Intercompany payable (receivable)	(274,366)		251,002
		133,705		380,715			117,309		424,663
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY					STOCKHOLDERS’ EQUITY
Common stock	Common stock	2,435		19,356		Common stock	2,569		19,356
Additional paid-in capital	Additional paid-in capital	3,610,631		340,700		Additional paid-in capital	3,734,948		340,700
Accumulated deficit	Accumulated deficit	(2,906,060)		40,471		Accumulated deficit	(2,928,683)		40,324
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)	13,500		0		Accumulated other comprehensive income (loss)	4,904		—
		720,506		400,527			813,738		400,380
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	862,765	$	886,197	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	943,484	$	963,911

2326

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Notes to Condensed Consolidated Financial Statements

SUMMARIZED BALANCE SHEET

DECEMBER 31, 2020


In thousands	In thousands	Coeur Mining, Inc.		Guarantor Subsidiaries		In thousands	Coeur Mining, Inc.		Guarantor Subsidiaries
ASSETS	ASSETS					ASSETS
CURRENT ASSETS	CURRENT ASSETS					CURRENT ASSETS
Cash and cash equivalents	Cash and cash equivalents	$	12,727	$	28,515	Cash and cash equivalents	$	12,727	$	28,515
Receivables	Receivables	381		3,631		Receivables	381		3,631
Ore on leach pads	Ore on leach pads	0		74,866		Ore on leach pads	—		74,866
Inventory	Inventory	0		27,223		Inventory	—		27,223
Prepaid expenses and other	Prepaid expenses and other	20,872		1,375		Prepaid expenses and other	20,872		1,375

		33,980		135,610			33,980		135,610
NON-CURRENT ASSETS	NON-CURRENT ASSETS					NON-CURRENT ASSETS
Property, plant and equipment, net	Property, plant and equipment, net	1,946		148,640		Property, plant and equipment, net	1,946		148,640
Mining properties, net	Mining properties, net	0		353,818		Mining properties, net	—		353,818
Ore on leach pads	Ore on leach pads	0		81,963		Ore on leach pads	—		81,963
Restricted assets	Restricted assets	1,482		206		Restricted assets	1,482		206
Equity and debt securities	Equity and debt securities	12,943		0		Equity and debt securities	12,943		—

Net investment in subsidiaries	Net investment in subsidiaries	514,705		72,785		Net investment in subsidiaries	514,705		72,785
Other	Other	198,587		51,528		Other	198,587		51,528
TOTAL ASSETS	TOTAL ASSETS	$	763,643	$	844,550	TOTAL ASSETS	$	763,643	$	844,550

LIABILITIES AND STOCKHOLDERS’ EQUITY	LIABILITIES AND STOCKHOLDERS’ EQUITY					LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES	CURRENT LIABILITIES					CURRENT LIABILITIES
Accounts payable	Accounts payable	$	1,978	$	52,177	Accounts payable	$	1,978	$	52,177
Other accrued liabilities	Other accrued liabilities	36,183		46,023		Other accrued liabilities	36,183		46,023
Debt	Debt	0		14,506		Debt	—		14,506

Reclamation	Reclamation	0		1,584		Reclamation	—		1,584

		38,161		114,290			38,161		114,290
NON-CURRENT LIABILITIES	NON-CURRENT LIABILITIES					NON-CURRENT LIABILITIES
Debt	Debt	227,592		33,321		Debt	227,592		33,321

Reclamation	Reclamation	0		93,349		Reclamation	—		93,349
Deferred tax liabilities	Deferred tax liabilities	100		8,457		Deferred tax liabilities	100		8,457
Other long-term liabilities	Other long-term liabilities	3,629		29,916		Other long-term liabilities	3,629		29,916
Intercompany payable (receivable)	Intercompany payable (receivable)	(199,318)		176,914		Intercompany payable (receivable)	(199,318)		176,914
		32,003		341,957			32,003		341,957
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY					STOCKHOLDERS’ EQUITY
Common stock	Common stock	2,438		20,401		Common stock	2,438		20,401
Additional paid-in capital	Additional paid-in capital	3,610,297		340,700		Additional paid-in capital	3,610,297		340,700
Accumulated deficit	Accumulated deficit	(2,908,120)		27,202		Accumulated deficit	(2,908,120)		27,202
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)	(11,136)		0		Accumulated other comprehensive income (loss)	(11,136)		—
		693,479		388,303			693,479		388,303
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	763,643	$	844,550	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	763,643	$	844,550

2427

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Notes to Condensed Consolidated Financial Statements

SUMMARIZED STATEMENTS OF INCOME

~~THREE~~NINE MONTHS ENDED ~~MARCH 31,~~SEPTEMBER 30, 2021


In thousands	In thousands	Coeur Mining, Inc.		Guarantor Subsidiaries		In thousands	Coeur Mining, Inc.		Guarantor Subsidiaries
Revenue	Revenue	$	0	$	121,770	Revenue	$	—	$	384,918

Gross profit (loss)	Gross profit (loss)	$	(153)	$	27,971	Gross profit (loss)	$	(507)	$	62,007

Income (loss) from continuing operations	Income (loss) from continuing operations	$	2,060	$	12,223	Income (loss) from continuing operations	$	(20,560)	$	12,074
Net income (loss)	Net income (loss)	$	2,060	$	12,223	Net income (loss)	$	(20,560)	$	12,074

2528

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Notes to Condensed Consolidated Financial Statements

NOTE 17 – COMMITMENTS AND CONTINGENCIES

Mexico ~~VAT~~ Litigation Matters

~~Included in non-current receivables as~~As of ~~March 31,~~September 30, 2021, ~~are $25.6~~$26.0 million is due from the Mexican government associated with VAT that was paid under Coeur ~~Mexicana’s~~Mexicana, S.A. de C.V.’s (“Coeur Mexicana’s”) prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016. ~~Under the royalty agreement,~~ Coeur Mexicana applied for and initially received VAT refunds associated with the royalty payments in the normal course; however, in 2011 the Mexican tax authorities began denying ~~the Company’s~~Coeur Mexicana’s VAT refunds based on the argument that VAT was not legally due on the royalty payments. Accordingly, Coeur Mexicana began to request refunds of the VAT as undue payments, which the Mexican tax authorities also denied. The Company has since been engaged in ongoing efforts to recover the VAT from the Mexican government (including through litigation and potential arbitration as well as refiling VAT refund requests). Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation ~~continues, some~~has continued at the administrative, appeals court and supreme court levels, most of which has been determined unfavorably to Coeur (including as recently as the ~~Company~~third quarter of 2021) based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are ~~erroneous~~contrary to legal precedent, conflicting and ~~which are now under appeal.~~erroneous. While the Company believes that it remains legally entitled to be refunded the full amount of the VAT receivable and intends to rigorously continue its VAT recovery efforts, based on the continued failure to recover the VAT receivable and recent unfavorable Mexican court decisions, the Company ~~may continue~~determined to ~~experience delays or obstacles in~~write down the ~~recovery of VAT and it is possible that some or all~~carrying value of the VAT receivable at September 30, 2021. The write down of $26.0 million is presented in Other, net on the Condensed Consolidated Statement of Comprehensive Income (Loss). Coeur Mexicana may ~~not ultimately be recovered as outcomes~~still elect to initiate an arbitration proceeding under Chapter 11 of the North American Free Trade Agreement, or NAFTA. Outcomes in ~~Mexican tax courts~~NAFTA arbitration and the process for recovering funds even if there is a successful outcome in ~~litigation~~NAFTA arbitration can be lengthy and unpredictable. ~~The continued failure~~

In addition, ongoing litigation with the Mexican government associated with enforcement of water rights in Mexico, if unsuccessful, may impact Coeur Mexicana’s ability to ~~recover the VAT receivable may result in the Company recording a reserve against some or all~~access new sources of ~~this amount, which,~~water to provide sufficient supply for its operations at Palmarejo and, if material, may have a material adverse impact on the Company’s operations and financial ~~statements.~~results.

Palmarejo Gold Stream

Coeur Mexicana ~~S.A. de C.V. (“Coeur Mexicana”), a subsidiary of Coeur,~~ sells 50% of Palmarejo gold production (excluding production from certain properties acquired in 2015) to a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) under a gold stream agreement for the lesser of $800 or spot price per ounce. In 2016, Coeur Mexicana received a $22.0 million deposit toward future deliveries under the gold stream agreement. In accordance with generally accepted accounting principles, although Coeur Mexicana has satisfied its contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units-of-production basis as ounces are sold to Franco-Nevada. At ~~March 31,~~September 30, 2021 the remaining unamortized balance was ~~$9.0~~$8.5 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.

Kensington Prepayment

In June 2019, Coeur entered into a transaction with an existing metal sales counterparty whereby it amended its existing sales and purchase contract for gold concentrate from its Kensington mine (the “Amended Sales Contract”). From time to time, the Amended Sales Contract has been further amended to allow for additional prepayments, the latest occurring in July 2021, with an effective date as of June ~~2020~~28, 2021, to include options for Coeur to receive up to two additional prepayments of up to $15.0 million. In December 2020, Coeur exercised ~~the~~an option to receive the ~~second~~ $15.0 million ~~prepayment (the “December~~December 2020 ~~Prepayment”).~~Prepayment. In the first ~~quarter~~half of 2021, the Kensington mine delivered ~~$8.0~~$15.0 million ~~under~~in satisfaction of the December 2020 Prepayment. In June 2021, Coeur exercised an option to receive the $15.0 million June 2021 Prepayment, and delivered $7.5 million against that $15.0 million in the third quarter of 2021. The remaining deliveries of ~~$7.1~~$7.6 million under the ~~December 2020~~June 2021 Prepayment are recognized as a deferred revenue liability and are presented in Accrued liabilities and other on the Consolidated Balance Sheet. Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by ~~June 30,~~December 31, 2021.

~~Silvertip Contingent Consideration~~

During the first quarter of 2020, the Company made a payment of $25.0 million in the form of $18.8 million in cash and 0.9 million shares of common stock to satisfy a contingent consideration payment due in conjunction with the acquisition of the Company’s Silvertip property. For more details, please see Note 21 -- Commitments and Contingencies in the 2020 10-K.

Other Commitments and Contingencies

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit, bank guarantees and, in some cases, cash as financial support for various purposes, including environmental remediation, reclamation, collateral for gold hedges and other general corporate purposes. As of ~~March 31,~~September 30, 2021 and December 31, 2020, the Company had surety bonds totaling ~~$312.0~~$314.5 million and $311.9 million, respectively, in place as financial support for future reclamation and closure costs. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations and from time-to-time, the Company may be required to post collateral, including cash or letters of credit which reduce availability under its revolving credit facility, to support these instruments. As the specific requirements are met, the beneficiary of the associated instrument

Coeur Mining, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. The Company

~~Coeur Mining, Inc. and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements~~

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

NOTE 18 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION

Accrued liabilities and other consist of the following:


In thousands	In thousands	March 31, 2021		December 31, 2020		In thousands	September 30, 2021		December 31, 2020
Accrued salaries and wages	Accrued salaries and wages	$	21,028	$	30,457	Accrued salaries and wages	$	28,788	$	30,457

Deferred revenue (1)	Deferred revenue (1)	8,555		16,425		Deferred revenue (1)	8,673		16,425
Income and mining taxes	Income and mining taxes	12,099		26,118		Income and mining taxes	14,078		26,118
Accrued operating costs	Accrued operating costs	3,608		3,327		Accrued operating costs	8,468		3,327
Unrealized losses on derivatives	Unrealized losses on derivatives	148		24,950		Unrealized losses on derivatives	255		24,950
Taxes other than income and mining	Taxes other than income and mining	3,315		3,616		Taxes other than income and mining	3,053		3,616
Accrued interest payable	Accrued interest payable	2,131		1,855		Accrued interest payable	3,273		1,855
Operating lease liabilities	Operating lease liabilities	11,798		12,410		Operating lease liabilities	11,202		12,410
Accrued liabilities and other	Accrued liabilities and other	$	62,682	$	119,158	Accrued liabilities and other	$	77,790	$	119,158

(1) See Note 17 -- Commitments and Contingencies for additional details on deferred revenue liabilities

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that total the same such amounts shown in the statement of cash flows in the three and nine months ended ~~March 31,~~September 30, 2021 and 2020:


In thousands	In thousands	March 31, 2021		March 31, 2020		In thousands	September 30, 2021		September 30, 2020
Cash and cash equivalents	Cash and cash equivalents	$	154,066	$	52,895	Cash and cash equivalents	$	85,020	$	77,148
Restricted cash equivalents	Restricted cash equivalents	1,377		1,163		Restricted cash equivalents	1,771		1,380
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	155,443	$	54,058	Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	86,791	$	78,528

2730

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Notes to Condensed Consolidated Financial Statements

NOTE 19 – ASSET AND LIABILITIES HELD FOR SALE

On October 27, 2021, the Company entered into a definitive agreement (the “Agreement”) to sell its La Preciosa project located in the State of Durango, Mexico to Avino Silver & Gold Mines Ltd. (“Avino”). The transaction is subject to customary closing conditions, including required regulatory approvals and expected to close in the first quarter of 2022.

Under the Agreement, Avino will acquire the La Preciosa project from Coeur for the following consideration:

•$15.0 million upon closing of the transaction,

•$5.0 million promissory note that matures prior to the first anniversary of the transaction closing,

•Equity consideration of 14.0 million units, payable on closing, each consisting of one share of Avino common stock and one half of one common share purchase warrant of Avino common stock, priced at a 25% premium to the 20 day volume weighted average price prior to announcement,

•Deferred cash consideration of approximately $8.8 million to be paid no later than the first anniversary of initial production from any portion of the La Preciosa project,

•Contingent payments of $0.25 per silver equivalent ounce (subject to an inflationary adjustment) on any new mineral reserves discovered and declared outside of the current resource area at the La Preciosa project, up to a maximum payment of $50.0 million, and

•Two royalties covering the La Preciosa land package, including (i) a 1.25% net smelter returns royalty on properties covering the Gloria and Abundancia areas of the La Preciosa project and (ii) a 2.00% gross value royalty on all areas of the La Preciosa project other than the Gloria and Abundancia areas, offset by the amount of any new mineral reserve contingent payments made to Coeur.

The Company classified the La Preciosa project as held for sale as of September 30, 2021 and the associated assets and liabilities are classified separately on the consolidated balance sheets. The major classes of assets and liabilities associated with the La Preciosa project as of September 30, 2021 are as follows:


In thousands	September 30, 2021



Cash and cash equivalents	$	393
Receivables	1,219
Prepaid expenses and other	1,338
Property, plant and equipment, net	1,633
Mining properties, net	49,085
Other	810
TOTAL ASSETS	$	54,478



Accounts payable	$	321
Deferred tax liabilities	11,156
TOTAL LIABILITIES	$	11,477

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Coeur Mining, Inc. and its subsidiaries (collectively the “Company”, “our”, or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this Item. We provide Costs applicable to sales (“CAS”) split, referred to as the co-product method, based on revenue contribution for Palmarejo, Rochester and Silvertip and based on the primary metal, referred to as the by-product method, for Wharf. Revenue from secondary metal, such as silver at Wharf, is treated as a cost credit.

Overview

We are primarily a gold and silver producer with five mines located in the United States, Mexico and Canada and several exploration projects in North America.

~~First~~Third Quarter Highlights

For the quarter, Coeur reported revenue of ~~$202.1~~$208.0 million and cash flow from operating activities of ~~$(4.4)~~$21.8 million. We reported GAAP net ~~income~~loss of ~~$2.1~~$54.8 million, or ~~$0.01~~$0.21 per diluted share. On an adjusted basis1, the Company reported EBITDA of ~~$65.9~~$48.8 million and net loss of $2.6 million, or $0.01 per diluted share. For the nine months ended September 30, 2021, Coeur reported revenue of $624.9 million and cash flow from operating activities of $75.5 million. We reported GAAP net loss of $20.6 million, or $0.08 per diluted share. On an adjusted basis1, the Company reported EBITDA of $167.4 million and net income of ~~$13.9~~$10.5 million or ~~$0.06~~$0.04 per diluted share.

•~~Higher margins helped drive a~~Solid production results and stronger ~~start~~fourth quarter expected to result in full-year production levels within 2021 guidance ranges – Third quarter gold and silver production totaled 87,083 and 2.5 million ounces, respectively. Production levels are expected to increase during the ~~year~~ ~~– Coeur’s first~~fourth quarter ~~results reflect a strong start to~~and finish the year ~~led by solid production~~within the Company’s guidance range of 322,500 - 367,500 ounces of gold and ~~higher prices. Notably, quarterly revenue, operating cash flow before changes in working capital~~1 ~~and adjusted EBITDA~~1 ~~increased 17%, 38% and 42% year-over-year, respectively~~9.7 - 12.2 million ounces of silver

•~~Solid gold production and unit costs~~Second consecutive quarterly exploration record – Coeur achieved another quarterly exploration record by investing approximately $20.0 million and drilling roughly 326,500 feet (99,500 meters) from up to 27 drill rigs at six locations. The ~~Company’s gold production of 85,225 ounces exceeded expectations for~~Company continues to generate meaningful new discoveries and identify future growth opportunities from the ~~quarter, tracking well towards~~largest exploration program in its ~~full-year guidance range. Additionally, all of the Company’s site-level gold unit costs were either below or within their full-year guidance ranges~~history

•~~Further enhanced liquidity~~Strong quarterly results at Wharf – Wharf’s gold production increased 17% quarter-over-quarter to 28,157 ounces, leading to $24.9 million and ~~balance sheet~~$23.9 million of operating and free cash flow1, respectively - the second highest quarterly cash flow figures since Coeur’s acquisition of the operation in early 2015. Cumulative operating and free cash flow1 since the acquisition for approximately $99.5 million now totals $319.6 million and $290.7 million, respectively, implying a current internal rate of return of approximately 43%

•Rochester expansion now 42% complete; seeking to mitigate inflationary pressures on remaining unawarded work packages – Coeur ~~successfully refinanced~~achieved several key milestones at its ~~5.875% senior notes~~Rochester expansion project during the quarter while also continuing to incorporate learnings from ongoing test work and operating activities to maximize future operating flexibility and de-risk the expansion. The Company currently estimates a likely 10% - 15% increase in the project’s overall total capital estimate due ~~2024 (“2024 Senior Notes”~~to the impact of inflationary pressures on the four remaining unawarded packages

•Re-adjusting timing and scale of Silvertip expansion due to exploration success and current inflationary environment – The Company has elected to assess the potential for a larger-scale expansion of Silvertip given ongoing exploration success and the potential benefits of a larger-scale operation. Additionally, recently-received preliminary capital estimates targeting a smaller, accelerated expansion and re-start were higher than anticipated, reflecting current inflationary pressures, supply and labor disruptions, and schedule constraints. A potentially larger-scale expansion and restart is expected to follow the completion of the ongoing Rochester expansion project

•Strategic sale of La Preciosa silver project to Avino Silver & Gold – Coeur has entered into a definitive agreement (the “Agreement”) with ~~5.125% senior notes due 2029~~Avino Silver & Gold Mines Ltd. (“~~2029 Senior Notes”~~Avino”)~~, capturing a lower interest rate, extending~~ (TSX/NYSE American: ASM) to sell its La Preciosa silver project, which is located near Avino’s existing operation in the ~~maturity~~State of Durango, Mexico for fixed consideration of approximately $34.7 million and ~~opportunistically upsizing~~contingent consideration of up to an additional $58.8 million for total potential consideration of up to $93.4 million plus two royalties that collectively cover the ~~offering.~~entire La Preciosa land package. The combination of equity ownership, contingent payments and royalties provides exposure to future upside potential

•Maintaining balance sheet flexibility to support ongoing investments – The Company ~~also extended~~ended the ~~maturity~~third quarter with total liquidity of approximately $330.0 million, including $85.0 million of cash and $245.0 million of available capacity under its ~~senior secured~~$300.0 million revolving credit facility (“RCF”) from October 2022 to March 2025. Together, these efforts improved Coeur’s liquidity profile and bolstered its balance sheet, helping to enhance financial flexibility ahead of a period of planned capital intensity

•~~Commenced major construction on Rochester expansion~~ – The Company began major construction on the Plan of Operations Amendment 11 (“POA 11”) expansion at its Rochester mine. Overall project progress was approximately 20% complete at the end of the first quarter. Key elements of the project timeline remain on schedule and are expected to be largely completed by late next year

•~~Encouraging results from aggressive investment in exploration~~ – Following its successful program in 2020, Coeur began the year with the largest exploration campaign in Company history. The Company invested approximately $14.9 million ($9.7 million expensed and $5.2 million capitalized) in exploration during the quarter, drilling roughly 250,500 feet (76,375 meters) across all sites. Drilling activities at Silvertip and Crown ramped up significantly during the quarter, while Coeur’s other sites continued to advance their resource expansion and infill programs

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Selected Financial and Operating Results


		Three Months Ended March 31,			Three Months Ended September 30,			Nine Months Ended September 30,
In thousands	In thousands		2021			2020			In thousands	2021		2020		2021		2020
Financial Results:	Financial Results:								Financial Results:
Gold sales	Gold sales		$	138,322		$	127,605		Gold sales	$	147,730	$	167,132	$	432,210	$	422,639
Silver sales	Silver sales		$	63,795		$	44,909		Silver sales	$	60,239	$	62,596	$	192,734	$	133,852
Zinc sales	Zinc sales		$	—		$	(662)		Zinc sales	$	—	$	—	$	—	$	(662)
Lead sales	Lead sales		$	—		$	1,315		Lead sales	$	—	$	—	$	—	$	1,315
Consolidated Revenue	Consolidated Revenue		$	202,117		$	173,167		Consolidated Revenue	$	207,969	$	229,728	$	624,944	$	557,144
Net income (loss)	Net income (loss)		$	2,060		$	(11,900)		Net income (loss)	$	(54,768)	$	26,856	$	(20,562)	$	13,747
Net income (loss) per share, diluted	Net income (loss) per share, diluted		$	0.01		$	(0.05)		Net income (loss) per share, diluted	$	(0.22)	$	0.11	$	(0.08)	$	0.06
Adjusted net income (loss)(1)	Adjusted net income (loss)(1)		$	13,940		$	(919)		Adjusted net income (loss)(1)	$	(2,608)	$	38,248	$	10,493	$	39,932
Adjusted net income (loss) per share, diluted(1)	Adjusted net income (loss) per share, diluted(1)		$	0.06		$	0.00		Adjusted net income (loss) per share, diluted(1)	$	(0.01)	$	0.16	$	0.04	$	0.17
EBITDA(1)	EBITDA(1)		$	49,693		$	25,451		EBITDA(1)	$	(14,169)	$	77,281	$	120,076	$	138,008
Adjusted EBITDA(1)	Adjusted EBITDA(1)		$	65,866		$	46,451		Adjusted EBITDA(1)	$	48,807	$	90,777	$	167,411	$	179,381
Total debt(2)	Total debt(2)		$	412,125		$	343,109		Total debt(2)	$	442,426	$	298,720	$	442,426	$	343,109
Operating Results:	Operating Results:								Operating Results:
Gold ounces produced	Gold ounces produced		85,225			85,077			Gold ounces produced	87,083		95,995		259,583		259,301
Silver ounces produced	Silver ounces produced		2,403,143			2,676,418			Silver ounces produced	2,462,395		2,565,349		7,452,931		6,862,177
Zinc pounds produced	Zinc pounds produced		—			2,459,756			Zinc pounds produced	—		—		—		2,459,756
Lead pounds produced	Lead pounds produced		—			2,176,847			Lead pounds produced	—		—		—		2,176,847
Gold ounces sold	Gold ounces sold		83,112			85,635			Gold ounces sold	89,804		95,283		261,417		258,851
Silver ounces sold	Silver ounces sold		2,435,504			2,700,778			Silver ounces sold	2,491,003		2,591,779		7,509,409		6,913,585
Zinc pounds sold	Zinc pounds sold		—			3,203,446			Zinc pounds sold	—		—		—		3,203,446
Lead pounds sold	Lead pounds sold		—			2,453,485			Lead pounds sold	—		—		—		2,453,485
Average realized price per gold ounce	Average realized price per gold ounce		$	1,664		$	1,490		Average realized price per gold ounce	$	1,645	$	1,754	$	1,653	$	1,633
Average realized price per silver ounce	Average realized price per silver ounce		$	26.19		$	16.63		Average realized price per silver ounce	$	24.18	$	24.15	$	25.67	$	19.36
Average realized price per zinc pound, gross(3)	Average realized price per zinc pound, gross(3)		$	—		NM			Average realized price per zinc pound, gross(3)	$	—	$	—	$	—	NM
Average realized price per lead pound, gross(3)	Average realized price per lead pound, gross(3)		$	—		NM			Average realized price per lead pound, gross(3)	$	—	$	—	$	—	NM

(1)See “Non-GAAP Financial Performance Measures.”

(2)Includes finance leases. Net of debt issuance costs and premium received.

(3)Due to the temporary suspension of mining and processing activities these amounts are not meaningful.

Consolidated Financial Results

Three Months Ended ~~March 31,~~September 30, 2021 compared to Three Months Ended ~~March 31,~~September 30, 2020

Revenue

Revenue ~~increased~~decreased by ~~$29.0~~$21.8 million, or ~~17%~~9%, as a result of a ~~12% and 57% increase~~6% decrease in average realized gold ~~and silver~~ prices, ~~respectively, partially offset by~~and lower gold and silver ounces sold ~~(3%~~(6% and ~~10%~~4%, respectively). We sold ~~83,112~~89,804 gold ounces and ~~2.4~~2.5 million silver ounces, compared to ~~85,635~~95,283 gold ounces ~~2.7~~and 2.6 million silver ounces ~~3.2 million zinc pounds and 2.5 million lead pounds~~ in the prior year. Gold and silver accounted for ~~68%~~71% and ~~32%~~29% of third quarter 2021 sales revenue, respectively. This compares to gold and silver accounting for ~~74%~~73% and ~~25%~~27% of ~~first~~third quarter 2020 sales revenue, ~~respectively, with zinc and lead accounting for the remaining 2020 sales revenue.~~respectively.

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The following table summarizes consolidated metal sales:


		Three months ended March 31,				Increase (Decrease)					Percentage Change			Three months ended September 30,								Increase (Decrease)			Percentage Change
In thousands	In thousands	2021		2020				In thousands		2021					2020
Gold sales	Gold sales	$	138,322	$	127,605			$	10,717					8		%	Gold sales	$	147,730		$	167,132		$	(19,402)		(12)	%
Silver sales	Silver sales	63,795		44,909		18,886					42	%	Silver sales	60,239					62,596			(2,357)			(4)	%
Zinc sales		—		(662)		662					(100)	%
Lead sales		—		1,315		(1,315)					(100)	%

Metal sales	Metal sales	$	202,117	$	173,167	$	28,950				17	%	Metal sales	$	207,969				$	229,728		$	(21,759)		(9)	%

Costs Applicable to Sales

Costs applicable to sales ~~decreased $10.8~~increased $21.6 million, or 9%19%, primarily due to ~~the temporary suspension at Silvertip, lower ounces sold~~higher operating costs at Palmarejo, Rochester, Kensington and Wharf partially due to increased maintenance and consumable costs and lower of cost or market (“LCM”) adjustment of $5.3 million at Rochester, partially offset by the favorable impact ~~from~~of foreign currency hedges. For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization

Amortization decreased ~~$6.2~~$1.3 million, or ~~17%~~4%, primarily due ~~to the temporary suspension at Silvertip,~~lower ounces sold and longer assumed mine life based on year-end 2020 mineral reserve growth at ~~Palmarejo and lower ounces sold at~~ Palmarejo.

Expenses

General and administrative expenses increased ~~$2.6~~$1.0 million, or ~~30%~~13%, primarily due to higher ~~employee incentive compensation~~travel and outside service costs.

Exploration expense increased ~~$3.3~~$2.6 million, or ~~51%~~20%, attributable to acceleration of drilling activity at Rochester and Kensington as well as the ~~Company maintained its commitment to a higher-level~~continuation of ~~exploration investment following~~expansion and infill programs across the ~~completion~~rest of the ~~largest and most successful drilling campaign in Coeur’s history during 2020.~~Company’s portfolio. The Company completed ~~122,300~~243,500 feet ~~(37,275~~(74,225 meters) of expansion drilling and ~~128,200~~82,900 feet ~~(39,100~~(25,275 meters) of infill drilling in the ~~first~~third quarter of 2021 compared ~~119,471~~to 217,768 feet ~~(36,415~~(66,376 meters) of expansion drilling and ~~50,209~~39,114 feet ~~(15,304~~(11,922 meters) of infill drilling in the ~~first~~third quarter of ~~2020.~~2020

Pre-development, reclamation, and other expenses ~~increased $7.2~~decreased $4.5 million, or ~~109%~~30%, stemming from ~~full-quarter ongoing carrying and temporary suspension costs at Silvertip and incremental~~lower costs incurred in connection with the Company’s COVID-19 health and safety ~~protocols, and a gain resulting from the modification of a right of use lease at Silvertip in 2020.~~protocols.

The following table summarizes pre-development, reclamation, and other expenses:


		Three months ended March 31,				Increase (Decrease)					Percentage Change			Three months ended September 30,								Increase (Decrease)			Percentage Change
In thousands	In thousands	2021		2020				In thousands		2021					2020
COVID-19	COVID-19	$	3,005	$	272			$	2,733					1,005		%	COVID-19	$	617		$	4,037		$	(3,420)		(85)	%
Silvertip ongoing carrying costs	Silvertip ongoing carrying costs	6,921		2,608		4,313					165	%	Silvertip ongoing carrying costs	5,589					3,913			1,676			43	%
Silvertip temporary suspension costs	Silvertip temporary suspension costs	—		3,509		(3,509)					(100)	%	Silvertip temporary suspension costs	—					2,768			(2,768)			(100)	%
Gain on modification of right of use lease		—		(4,051)		4,051					(100)	%

Asset retirement accretion	Asset retirement accretion	2,905		2,847		58					2	%	Asset retirement accretion	3,027					2,968			59			2	%
Other	Other	881		1,370		(489)					(36)	%	Other	1,273					1,345			(72)			(5)	%
Pre-development, reclamation and other expense	Pre-development, reclamation and other expense	$	13,712	$	6,555	$	7,157				109	%	Pre-development, reclamation and other expense	$	10,506				$	15,031		$	(4,525)		(30)	%

Other Income and Expenses

During the first quarter of 2021, the Company incurred a $9.2 million loss in connection with the tender and redemption of the 2024 Senior Notes concurrent with the completed offering of the 2029 Senior Notes.

Fair value adjustments, net, decreased to a loss of ~~$3.8~~$26.4 million compared to ~~loss~~a gain of ~~$8.8~~$2.2 million ~~in the prior year quarter,~~as a result of ~~unfavorable changes~~reduction in value related to the Company’s ~~prior~~ equity ~~investment~~investments, partially offset by a gain of $9.3 million related to a fair value adjustment to the Exchange Agreement embedded derivative liability. The estimated fair values of the Company’s equity investments in ~~Metalla Royalty & Streaming Ltd. in 2020.~~Victoria and Integra were $131.2 million and $8.5 million, respectively, at September 30, 2021. For additional details on the Exchange Agreement embedded derivative see Note 12 -- Fair Value Measurements and Note 13 -- Derivative Financial Instruments.

Interest expense (net of capitalized interest of ~~$0.8~~$4.4 million) decreased to ~~$4.9~~$3.2 million from $5.1 million due to higher capitalized interest associated with the POA 11 project at Rochester, and lower interest paid under the RCF, partially offset by higher interest paid under the 2029 Senior Notes compared to the 2024 Senior ~~Notes.~~Notes and higher interest paid under finance lease obligations.

Other, net increased to a ~~gain~~loss of ~~$3.6~~$26.7 million compared to ~~$1.9~~$6.3 million due to ~~an increase in gains on~~a write-down of a VAT receivable of $26.0 million due to uncertain collectability, partially offset by a one-time fee of $3.8 million related to the ~~sale~~novation of ~~assets.~~certain

3034

of the Company’s gold zero cost collars incurred in 2020. For additional details on the VAT receivable write-down, see Note 17 -- Commitments and Contingencies.

Income and Mining Taxes

During the ~~first~~third quarter of 2021, income and mining tax expense of approximately ~~$12.8~~$6.4 million resulted in an effective tax rate of ~~86.1%~~(13.2)% for 2021. This compares to income tax ~~benefit~~expense of ~~$3.9~~$13.1 million or effective tax rate of ~~24.9%~~32.8% for 2020. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) ~~mining taxes; (ii)~~ variations in our income before income taxes; ~~(iii)~~(ii) geographic distribution of that income; (iii) mining taxes; (iv) foreign exchange rates; (v) percentage depletion; (vi) the non-recognition of tax assets; and (vii) the impact of uncertain tax positions. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

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


		Three months ended March 31,								Three months ended September 30, 2021
			2021			2020								2021	2020
In thousands	In thousands			Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax			Tax (expense) benefit		In thousands			Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit
United States	United States			$	(8,531)	$	(1,625)	$	(11,005)		$	(736)	United States			$	(30,247)	$	4,078	$	24,592	$	(6,003)
Canada	Canada			(12,785)		—		(26,029)			15		Canada			(13,879)		—		(12,895)		—
Mexico	Mexico			32,914		(11,161)		21,359			4,631		Mexico			(4,138)		(10,478)		28,320		(7,110)
Other jurisdictions	Other jurisdictions			3,248		—		(164)			29		Other jurisdictions			(104)		—		(48)		—
				$	14,846	$	(12,786)	$	(15,839)		$	3,939				$	(48,368)	$	(6,400)	$	39,969	$	(13,113)

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors” in the 2020 10-K.

Net Income (Loss)

Net loss was $54.8 million, or $0.21 per diluted share, compared to net income of $26.9 million, or $0.11 per share. The decrease in net income was ~~$2.1~~driven by a 6% decrease in average realized gold prices, lower gold and silver ounces sold (6% and 4%, respectively), higher operating costs, a VAT write-down of $26.0 million, and unfavorable changes in value related to the Company’s equity investments. This was partially offset by lower costs incurred in connection with the Company’s COVID-19 health and safety protocols and a gain of $9.3 million related to a fair value adjustment to the Exchange Agreement embedded derivative liability. Adjusted net loss was $2.6 million, or $0.01 per diluted share, compared to adjusted net ~~loss~~income of ~~$11.9~~$38.2 million, or ~~$0.05~~$0.16 per ~~share. The increase in net income was driven~~share (see “Non-GAAP Financial Performance Measures”).

Nine Months Ended September 30, 2021 compared to Nine Months Ended September 30, 2020

Revenue

Revenue increased by ~~strong operating results at Wharf,~~$67.8 million, or 12%, as a ~~12%~~result of a 1% and ~~57%~~33% increase in average realized gold and silver prices, respectively, and ~~lower operating~~higher gold and silver ounces sold (1% and 9%, respectively). In 2020, production was impacted by the temporary suspension of active mining operations at Palmarejo due to a government decree in response to COVID-19. We sold 261,417 gold ounces and 7.5 million silver ounces, compared to 258,851 gold ounces, 6.9 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds in the prior year. Gold and silver accounted for 69% and 31% of 2021 sales revenue, respectively. This compares to gold and silver accounting for 76% and 23% of 2020 sales revenue, respectively, with zinc and lead accounting for the remaining 2020 sales revenue.

The following table summarizes consolidated metal sales:


	Nine months ended September 30,				Increase (Decrease)		Percentage Change
In thousands	2021		2020
Gold sales	$	432,210	$	422,639	$	9,571	2	%
Silver sales	192,734		133,852		58,882		44	%
Zinc sales	—		(662)		662		(100)	%
Lead sales	—		1,315		(1,315)		(100)	%
Metal sales	$	624,944	$	557,144	$	67,800	12	%

Costs Applicable to Sales

Costs applicable to sales increased $53.4 million, or 17%, primarily due to higher ounces sold resulting from the 2020 temporary suspension of active mining operations at Palmarejo in 2020, increased maintenance and consumable costs, the Rochester LCM adjustment of $5.3 million and a non-cash inventory charge of $8.6 million related to a change in the Company’s recovery rate assumption on the Stage IV leach pad at ~~Silvertip. This was~~Rochester, partially offset by the favorable impact from foreign currency hedges. For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization

Amortization decreased $3.4 million, or 4%, primarily due to the 2020 temporary suspension of active mining operations at Palmarejo and Silvertip and longer assumed mine life based on year-end 2020 mineral reserve growth at Palmarejo, partially offset by higher ounces sold.

Expenses

General and administrative expenses increased $5.5 million, or 22%, primarily due to higher employee incentive compensation, travel and outside service costs.

Exploration expense increased $6.4 million, or 21%, as the Company maintained its commitment to a higher-level of exploration investment following the completion of the largest and most successful drilling campaign in Coeur’s history during 2020. The Company completed 556,800 feet (169,725 meters) of expansion drilling and 346,500 feet (105,625 meters) of infill drilling in the nine months of 2021 compared to 477,454 feet (145,528 meters) of expansion drilling and 122,686 feet (37,395 meters) of infill drilling in the nine months of 2020.

Pre-development, reclamation, and other expenses decreased $3.3 million, or 8%, stemming from lower ~~sales~~costs incurred in connection with the Company’s COVID-19 health and safety protocols and one-time costs at Silvertip including a $2.1 million write down of obsolete supply inventory in 2020, partially offset by full-year ongoing carrying costs at Silvertip and a gain resulting from the modification of a right of use lease at Silvertip in 2020.

The following table summarizes pre-development, reclamation, and other expenses:


	Nine months ended September 30,				Increase (Decrease)		Percentage Change
In thousands	2021		2020
COVID-19	$	5,937	$	10,418	$	(4,481)	(43)	%
Silvertip ongoing carrying costs	18,957		11,704		7,253		62	%
Silvertip temporary suspension costs	—		10,107		(10,107)		(100)	%
Gain on modification of right of use lease	—		(4,051)		4,051		(100)	%
Asset retirement accretion	8,898		8,724		174		2	%
Other	3,164		3,359		(195)		(6)	%
Pre-development, reclamation and other expense	$	36,956	$	40,261	$	(3,305)	(8)	%

Other Income and Expenses

Fair value adjustments, net, increased to a gain of $7.0 million compared to a gain of $3.5 million as a result of a gain of $9.3 million related to a fair value adjustment to the Exchange Agreement embedded derivative liability, partially offset by reduction in value of the Company’s equity investments. The estimated fair values of the Company’s equity investments in Victoria and Integra were $131.2 million and $8.5 million, respectively, at September 30, 2021. For additional details on the

Exchange Agreement embedded derivative see Note 12 -- Fair Value Measurements and Note 13 -- Derivative Financial Instruments.

Interest expense (net of capitalized interest of $7.0 million) decreased to $13.2 million from $16.0 million due to higher capitalized interest associated with the POA 11 project at Rochester, and lower interest paid under the RCF, partially offset by higher interest paid under the 2029 Senior Notes compared to the 2024 Senior Notes and higher interest paid under finance lease obligations.

Other, net increased to a loss of $22.4 million compared to $4.3 million due to a write-down of a VAT receivable of $26.0 million due to uncertain collectability, partially offset by an increase in gains on the sale of assets in 2021 and a one-time fee of $3.8 million related to the novation of certain of the Company’s gold zero cost collars incurred in 2020. For additional details on the VAT receivable write-down see Note 17 -- Commitments and ~~silver (3%~~Contingencies.

Income and ~~10%, respectively),~~Mining Taxes

During the first nine months of 2021, income and mining tax expense of approximately $34.5 million resulted in an effective tax rate of 247.3% for 2021. This compares to income tax expense of $12.0 million or effective tax rate of 46.6% for 2020. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) foreign exchange rates; (iv) the impact of uncertain tax positions; (v) mining taxes; (vi) percentage depletion and (vii) the non-recognition of tax assets. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

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


	Nine months ended September 30,
		2021			2020
In thousands			Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit
United States			$	(9,131)	$	(4,775)	$	26,132	$	(5,913)
Canada			(39,643)		—		(54,544)		232
Mexico			59,603		(29,751)		54,483		(6,366)
Other jurisdictions			3,135		—		(306)		29
			$	13,964	$	(34,526)	$	25,765	$	(12,018)

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors” in the 2020 10-K.

Net Income (Loss)

Net loss was $20.6 million, or $0.08 per diluted share, compared to net income of $13.7 million, or $0.06 per share. The decrease in net income was driven by higher operating costs, a VAT write-down of $26.0 million, higher exploration expense, a $9.2 million loss on debt extinguishment, ~~a full-quarter~~9 months of ongoing carrying ~~and severance~~ costs at Silvertip, ~~and incremental costs associated with~~reduction in value related to the Company’s ~~COVID-19 health~~equity investments and ~~safety protocols.~~higher income and mining taxes. This was partially offset by a 1% and 33% increase in average realized gold and silver prices, respectively, higher sales of gold and silver (1% and 9%, respectively), and lower operating costs at Silvertip. Adjusted net income was ~~$13.9~~$10.5 million, or ~~$0.06~~$0.04 per diluted share, compared to ~~adjusted net loss of $0.9~~$39.9 million, or ~~$0.00~~$0.17 per share (see “Non-GAAP Financial Performance Measures”).

3137

Results of Operations

Palmarejo


		Three Months Ended March 31,						Three Months Ended September 30,	Nine Months Ended September 30,
			2021			2020					2021			2020			2021			2020
Tons milled	Tons milled		484,390			479,562				Tons milled	517,363			492,474			1,519,126			1,241,677
Average gold grade (oz/t)	Average gold grade (oz/t)		0.06			0.07				Average gold grade (oz/t)	0.050			0.070			0.060			0.070
Average silver grade (oz/t)	Average silver grade (oz/t)		4.07			4.69				Average silver grade (oz/t)	3.86			4.37			3.95			4.52
Average recovery rate – Au	Average recovery rate – Au		95.7		%	91.6		%		Average recovery rate – Au	93.7		%	91.3		%	93.9		%	90.3		%
Average recovery rate – Ag	Average recovery rate – Ag		81.3		%	81.5		%		Average recovery rate – Ag	85.5		%	82.8		%	82.9		%	80.0		%
Gold ounces produced	Gold ounces produced		28,605			31,578				Gold ounces produced	24,254			29,296			80,454			76,097
Silver ounces produced	Silver ounces produced		1,603,274			1,834,891				Silver ounces produced	1,707,518			1,783,524			4,977,337			4,485,549
Gold ounces sold	Gold ounces sold		25,687			31,287				Gold ounces sold	24,897			27,252			81,100			75,463
Silver ounces sold	Silver ounces sold		1,637,695			1,894,789				Silver ounces sold	1,714,617			1,765,371			4,991,932			4,534,802
Costs applicable to sales per gold ounce(1)	Costs applicable to sales per gold ounce(1)		$	622		$	644			Costs applicable to sales per gold ounce(1)	$	705		$	603		$	666		$	637
Costs applicable to sales per silver ounce(1)	Costs applicable to sales per silver ounce(1)		$	11.00		$	8.35			Costs applicable to sales per silver ounce(1)	$	12.52		$	10.09		$	12.20		$	9.03

(1)See Non-GAAP Financial Performance Measures.

Three Months Ended ~~March 31,~~September 30, 2021 compared to Three Months Ended ~~March 31,~~September 30, 2020

Gold and silver production decreased 9%17% and ~~13%~~4%, respectively, as a result of lower gold and silver grades, ~~as expected,~~ partially offset by higher mill ~~throughput~~throughout and ~~higher gold recovery.~~recoveries. Metal sales were ~~$80.3~~$74.6 million, or ~~40%~~36% of Coeur’s metal sales, compared with ~~$74.3~~$81.8 million, or ~~43%~~36% of Coeur’s metal sales. Revenue for the three months ended ~~March 31,~~September 30, 2021 ~~increased~~decreased by ~~$6.0~~$7.1 million or 8%9%, of which ~~$21.0~~$4.4 million was the result of ~~higher average realized gold and silver prices, partially offset by~~ a ~~decrease of $15.0 million due to~~ lower volume of gold and silver ~~sales.~~sales and $2.7 million was due to lower average realized gold and silver prices. Costs applicable to sales per gold ~~ounce decreased 3% while costs applicable to sales per~~and silver ounce increased ~~32%~~17% and 24%, respectively, due to the mix of gold and silver sales, lower production, and higher maintenance and consumable costs, partially offset by the favorable impact of foreign currency hedges. Amortization decreased to $8.7 million due to lower ounces sold and longer assumed mine life based on year-end 2020 mineral reserve growth. Capital expenditures increased to $8.5 million from $5.0 million due to higher underground development and infill drilling activities.

Nine Months Ended September 30, 2021 compared to Nine Months Ended September 30, 2020

Gold and silver production increased 6% and 11%, respectively, as a result of the government-mandated COVID-19-related temporary suspension of active mining operations at Palmarejo in 2020 and higher mill throughput and recoveries, partially offset by lower gold and silver grades. Metal sales were $240.0 million, or 38% of Coeur’s metal sales, compared with $194.1 million, or 35% of Coeur’s metal sales. Revenue for the nine months ended September 30, 2021 increased by $46.0 million or 24%, of which $26.5 million was the result of higher average realized gold and silver prices, and $19.5 million was due to a higher volume of gold and silver sales. Costs applicable to sales per gold and silver ounce increased 5% and 35%, respectively, due to the mix of gold and silver sales, lower gold and silver grades, and higher maintenance and consumable costs, partially offset by the favorable impact from foreign currency hedges. Amortization decreased to ~~$9.1~~$26.1 million due to a longer anticipated mine life based on year-end 2020 reserve growth, ~~and lower~~partially offset by higher ounces sold. Capital expenditures increased to ~~$10.0~~$28.3 million from ~~$7.1~~$16.6 million attributable to higher underground development at the La Nacion ~~deposit.~~deposit and the impact of the 2020 temporary suspension on underground development and infill drilling activities.

Rochester


		Three Months Ended March 31,					Three Months Ended September 30,	Nine Months Ended September 30,
			2021		2020					2021		2020		2021		2020
Tons placed	Tons placed		3,240,917		3,428,578				Tons placed	3,427,078		4,523,767		9,863,772		11,695,676
Average gold grade (oz/t)	Average gold grade (oz/t)		0.003		0.002				Average gold grade (oz/t)	0.002		0.002		0.002		0.002
Average silver grade (oz/t)	Average silver grade (oz/t)		0.45		0.57				Average silver grade (oz/t)	0.43		0.49		0.42		0.52
Gold ounces produced	Gold ounces produced		6,904		5,936				Gold ounces produced	6,051		6,462		20,187		17,557
Silver ounces produced	Silver ounces produced		773,678		687,379				Silver ounces produced	738,554		739,886		2,400,539		2,155,577
Gold ounces sold	Gold ounces sold		6,934		5,473				Gold ounces sold	5,559		6,834		20,311		17,585
Silver ounces sold	Silver ounces sold		771,354		632,237				Silver ounces sold	758,214		785,887		2,441,429		2,141,803
Costs applicable to sales per gold ounce(1)	Costs applicable to sales per gold ounce(1)		$	1,317	$	1,394			Costs applicable to sales per gold ounce(1)	$	1,994	$	1,118	$	1,707	$	1,299
Costs applicable to sales per silver ounce(1)	Costs applicable to sales per silver ounce(1)		$	19.32	$	14.75			Costs applicable to sales per silver ounce(1)	$	27.15	$	14.58	$	24.19	$	14.73

(1)See Non-GAAP Financial Performance Measures.

Three Months Ended ~~March 31,~~September 30, 2021 compared to Three Months Ended ~~March 31,~~September 30, 2020

Gold ~~and~~production decreased 6%, while silver production ~~increased 16% and 13%, respectively, due to~~remained comparable, despite the ~~timing~~placement of ~~recoveries, higher gold grade and~~over-liner material on the ~~restocking of~~new Stage VI leach pad, ~~inventory after~~which impacted the ~~commissioning of~~Company’s ability to stack and leach material on the ~~high pressure grinding roll in 2019, which adversely impacted 2020 gold and silver production.~~Stage IV leach pad. Metal sales were ~~$32.8~~$28.3 million, or ~~16%~~14% of Coeur’s metal sales, compared with ~~$19.4~~$32.1 million, or ~~11%~~14% of Coeur’s metal sales. Revenue for the three months ended ~~March 31,~~September 30, 2021 ~~increased~~decreased by ~~$13.4~~$3.8 million or ~~69%~~12%, of which ~~$7.1~~$2.9 million was the result of ~~higher~~a lower volume of gold and silver sales and $0.9 million was due to lower average realized gold and silver ~~prices, and $6.3 million due to higher volume of gold and silver sales.~~prices. Costs applicable to sales per gold ~~ounce decreased 6% while costs applicable to sales per~~and silver

ounce increased ~~31% due to the mix~~78% and 86%, respectively, resulting from higher maintenance and consumable costs, and a LCM adjustment of ~~gold and silver sales as well as higher equipment maintenance costs.~~$5.3 million. Amortization increased to ~~$3.6~~$4.7 million due to higher ~~ounces sold.~~equipment depreciation from recently placed-in service assets. Capital expenditures increased to ~~$30.2~~$40.1 million from ~~$5.1~~$9.8 million due to the commencement of construction activities related to POA 11 in August 2020.

Nine Months Ended September 30, 2021 compared to Nine Months Ended September 30, 2020

Gold and silver production increased 15% and 11%, respectively, due to the timing of recoveries associated with the restocking of leach pad inventory after the commissioning of the high-pressure grinding roll in 2019, which adversely impacted 2020 gold and silver production. Metal sales were $99.2 million, or 16% of Coeur’s metal sales, compared with $72.2 million, or 13% of Coeur’s metal sales. Revenue for the nine months ended September 30, 2021 increased by $27.0 million or 37%, of which $14.4 million was the result of higher average realized gold and silver prices and $12.6 million was the result of a higher volume of gold and silver sales. Costs applicable to sales per gold and silver ounce increased 31% and 64%, respectively, due to the mix of gold and silver sales, and higher maintenance and consumable costs. Additionally, there was a LCM adjustment of $5.3 million and a non-cash inventory charge of $8.6 million related to a change in the Company’s recovery rate assumption on the Stage IV leach pad. Amortization increased to $14.8 million due to higher ounces sold and higher equipment depreciation from recently placed-in service assets. Capital expenditures increased to $112.5 million from $20.6 million due to the commencement of construction activities related to POA 11 in August 2020.

Overall progress under the current scope, POA 11 was approximately 42% complete at the end of the third quarter. As part of ongoing efforts to optimize and de-risk the project, the Company has identified a potential opportunity to enhance future operating flexibility by incorporating pre-screens into the flowsheet for the newly constructed crushing circuit. While the Company completes detailed engineering related to this opportunity, Coeur intends to install pre-screens on the existing crusher system during the first half of 2022. If the Company determines that pre-screens are a value-accretive scope change to the project, Coeur currently estimates that commissioning and ramp-up of the new crushing circuit could be extended by three to six months.

Historic rain amounts were experienced at Rochester in late October 2021. The Company is currently assessing any impacts to operations and the POA 11 project.

Kensington


		Three Months Ended March 31,						Three Months Ended September 30,	Nine Months Ended September 30,
			2021			2020					2021			2020			2021			2020
Tons milled	Tons milled		170,358			162,341				Tons milled	160,596			163,276			499,265			496,095
Average gold grade (oz/t)	Average gold grade (oz/t)		0.19			0.21				Average gold grade (oz/t)	0.19			0.18			0.19			0.20
Average recovery rate	Average recovery rate		93.2		%	93.5		%		Average recovery rate	93.0		%	93.7		%	92.9		%	93.0		%
Gold ounces produced	Gold ounces produced		30,681			32,022				Gold ounces produced	28,621			26,797			87,624			91,877
Gold ounces sold	Gold ounces sold		31,595			32,781				Gold ounces sold	29,902			27,815			88,293			92,963
Costs applicable to sales per gold ounce(1)	Costs applicable to sales per gold ounce(1)		$	994		$	931			Costs applicable to sales per gold ounce(1)	$	1,156		$	1,134		$	1,078		$	994

(1)See Non-GAAP Financial Performance Measures.

Three Months Ended ~~March 31,~~September 30, 2021 compared to Three Months Ended ~~March 31,~~September 30, 2020

Gold production increased 7% as a result of higher grade, partially offset by lower mill throughput. Metal sales were $51.9 million, or 25% of Coeur’s metal sales, compared to $52.4 million, or 23% of Coeur’s metal sales. Revenue for the three months ended September 30, 2021 decreased by $0.5 million or 1%, of which $4.1 million resulted from lower average realized gold prices, partially offset by an increase of $3.6 million due to a higher volume of gold sales. Costs applicable to sales per gold ounce increased slightly due to higher diesel and employee-related costs, partially offset by higher production. Amortization increased to $12.8 million due to higher ounces sold. Capital expenditures increased to $6.3 million from $5.3 million due to higher infill drilling and underground development.

Nine Months Ended September 30, 2021 compared to Nine Months Ended September 30, 2020

Gold production decreased 4%5% as a result of lower grade, partially offset by higher mill throughput. Metal sales were ~~$54.5~~$155.2 million, or ~~27%~~25% of Coeur’s metal sales, compared to ~~$51.7~~$159.2 million, or ~~30%~~29% of Coeur’s metal sales. Revenue for the nine months ended September 30, 2021 decreased by $4.0 million or 3%, of which $8.2 million resulted from lower volume of gold sales, partially offset by an increase of $4.2 million due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 8% due to lower production and higher diesel, employee-related and maintenance costs. Amortization increased to $38.9 million primarily due to higher Jualin production, partially offset by lower ounces sold. Capital expenditures increased to $19.5 million from $14.1 million due to higher infill drilling and underground development.

Wharf


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Tons placed	1,489,169		1,315,542		3,628,693		3,663,228
Average gold grade (oz/t)	0.025		0.025		0.028		0.028
Gold ounces produced	28,157		33,440		71,318		73,770
Silver ounces produced	16,323		41,939		75,055		81,764
Gold ounces sold	29,446		33,382		71,713		72,840
Silver ounces sold	18,172		40,521		76,048		77,996
Costs applicable to sales per gold ounce(1)	$	973	$	805	$	966	$	914

(1)See Non-GAAP Financial Performance Measures.

Three Months Ended September 30, 2021 compared to Three Months Ended September 30, 2020

Gold production decreased 16% driven by the timing of recoveries. Metal sales were $53.1 million, or 26% of Coeur’s metal sales, compared to $63.5 million, or 28% of Coeur’s metal sales. Revenue for the three months ended ~~March 31,~~September 30, 2021 ~~increased~~decreased by ~~$2.8~~$10.4 million or 5%16%, of which ~~$4.9~~$7.6 million ~~resulted from higher average realized gold prices, partially offset by a decrease of $2.1 million~~was due to lower volume of gold sales. Costs applicable to sales per gold ounce increased 7% due to lower production and higher equipment rental, outside service and maintenance costs. Amortization increased to $13.4 million primarily due to higher Jualin production. Capital expenditures increased to $7.2 million from $4.8 million due to higher infill drilling.

~~Wharf~~

Three Months Ended March 31,
2021 2020
Tons placed 1,114,043 946,449
Average gold grade (oz/t) 0.030 0.025
Gold ounces produced 19,035 15,541
Silver ounces produced 26,191 14,861
Gold ounces sold 18,896 16,094
Silver ounces sold 26,455 14,768
Costs applicable to sales per gold ounce(1)
$ 954 $ 1,092

~~(1)See Non-GAAP Financial Performance Measures.~~

~~Three Months Ended March 31, 2021 compared to Three Months Ended March 31, 2020~~

Gold production increased 22% driven by higher grade, higher placed tons and favorable weather conditions. Metal sales were $34.5 million, or 17% of Coeur’s metal sales, compared to $25.9 million, or 15% of Coeur’s metal sales. Revenue for the three months ended March 31, 2021 increased by $8.7 million or 34%, of which $5.3 million resulted from a ~~higher~~lower volume of gold and silver sales and ~~$3.4~~$2.8 million ~~due to higher~~resulted from lower average realized gold and silver prices. Costs applicable to sales per gold ounce ~~decreased 13%~~increased 21% due to higher ~~production~~employee-related and ~~lower~~ diesel ~~and cyanide~~ costs. Amortization ~~remained comparable at $2.5~~decreased to $3.2 million due to lower ounces sold. Capital expenditures were $1.0 million.

Nine Months Ended September 30, 2021 compared to Nine Months Ended September 30, 2020

Gold production decreased 3% driven by the timing of recoveries. Metal sales were $130.6 million, or 21% of Coeur’s metal sales, compared to $129.8 million, or 23% of Coeur’s metal sales. Revenue for the nine months ended September 30, 2021 increased by $0.8 million or 1%, of which $2.8 million resulted from higher average realized gold and silver prices, partially offset by a decrease of $2.0 million due to a lower ~~units-of-production depletion rate.~~volume of gold and silver sales. Costs applicable to sales per gold ounce increased 6% due to higher equipment rental, diesel and employee-related costs, partially offset by a $3.3 million inventory write-down related to lower expected recoveries from leach pads 4 and 5 in 2020. Amortization decreased to $8.6 million due to lower ounces sold. Capital expenditures were ~~$1.5~~$3.9 million.

Silvertip


		Three Months Ended March 31,				Three Months Ended September 30,	Nine Months Ended September 30,
			2021		2020				2021		2020		2021		2020

Silver ounces produced	Silver ounces produced		—		139,287			Silver ounces produced	—		—		—		139,287
Zinc pounds produced	Zinc pounds produced		—		2,459,756			Zinc pounds produced	—		—		—		2,459,756
Lead pounds produced	Lead pounds produced		—		2,176,847			Lead pounds produced	—		—		—		2,176,847
Silver ounces sold	Silver ounces sold		—		158,984			Silver ounces sold	—		—		—		158,984
Zinc pounds sold	Zinc pounds sold		—		3,203,446			Zinc pounds sold	—		—		—		3,203,446
Lead pounds sold	Lead pounds sold		—		2,453,485			Lead pounds sold	—		—		—		2,453,485
Costs applicable to sales per silver ounce(2)	Costs applicable to sales per silver ounce(2)		$	—	NM(1)			Costs applicable to sales per silver ounce(2)	$	—	$	—	$	—	NM(1)
Costs applicable to sales per zinc pound(2)	Costs applicable to sales per zinc pound(2)		$	—	NM(1)			Costs applicable to sales per zinc pound(2)	$	—	$	—	$	—	NM(1)
Costs applicable to sales per lead ounce(2)	Costs applicable to sales per lead ounce(2)		$	—	NM(1)			Costs applicable to sales per lead ounce(2)	$	—	$	—	$	—	NM(1)

(1)Due to the temporary suspension of mining and processing activities these amounts are not meaningful.

(2)See Non-GAAP Financial Performance Measures.

~~Three~~Nine Months Ended ~~March 31,~~September 30, 2021 compared to ~~Three~~Nine Months Ended ~~March 31,~~September 30, 2020

Silvertip temporarily suspended mining and processing activities, unrelated to COVID-19, in February 2020. Operational results in the table above reflect performance prior to the temporary suspension. Ongoing carrying and temporary suspension costs are included in Pre-development, reclamation, and other.

~~Coeur continued advancing Silvertip’s revised 1,750 tonnes per day flowsheet through a more comprehensive engineering~~The Company continues to generate positive results from ongoing exploration and ~~design phase, with detailed design approaching 30% completion~~confirmatory metallurgical test work. Given these drilling results, the enhanced understanding of the Silvertip deposit and ~~exploration results demonstrating~~ the potential ~~for mine life extensions~~to significantly expand mineralized material with continued ~~drilling.~~drilling, Coeur is now assessing the opportunity to significantly enhance the economics of a potential expansion and restart by re-evaluating the overall scope, including higher throughput, staging options, delivery timeline and commercial approach to the project.

Coeur anticipates this ongoing review, current macroeconomic conditions impacting capital estimates and continued exploration investment will result in the Company sequencing a potential Silvertip expansion and restart following the completion of the POA 11 expansion at Rochester. Coeur believes the benefits of this sequencing includes (i) allowing for an acute focus on successful completion of the Rochester expansion, and (ii) maximizing balance sheet flexibility.

Liquidity and Capital Resources

At ~~March 31,~~September 30, 2021, the Company had ~~$155.4~~$86.8 million of cash, cash equivalents and restricted cash and ~~$265.0~~$245.0 million available under its RCF. Cash and cash equivalents ~~increased $61.3~~decreased $7.8 million in the ~~three~~nine months ended ~~March 31,~~ September 30,

2021, due to ~~a 12%~~higher capital expenditures related to POA 11 at Rochester and ~~57% increase in average realized gold~~the potential expansion project at Silvertip coupled with higher general and ~~silver prices, respectively, strong operational results from Wharf, net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, partially offset by~~administrative and exploration costs, and the tender and redemption of the 2024 Senior Notes for $238.3 million, including ~~premiums,~~premiums. This was partially offset by a 1% and ~~$4.0 million of accrued~~33% increase in average realized gold and ~~unpaid interest, lower~~silver prices, respectively, higher gold and silver ounces sold ~~at Palmarejo~~(1% and ~~Kensington~~9%, respectively), $20.0 million drawn from the RCF, and ~~ongoing carrying costs at Silvertip.~~ the net proceeds of $367.5 million from the issuance of the 2029 Senior Notes.

Since the start of the COVID-19 pandemic, the Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). To provide additional flexibility to respond to potential downside scenarios, the Company has been able to periodically draw and make repayments under its RCF subsequent to the start of the COVID-19 pandemic. At ~~March 31,~~September 30, 2021, the Company had ~~no borrowings~~$20.0 million drawn and $35.0 million in outstanding letters of credit under the RCF, which was amended in March 2021 to allow the Company to obtain one or more increases of the RCF in an aggregate amount of up to $100.0 million and extend the maturity to March 2025. Additionally, Coeur established a $100.0 million ATM Program in April 2020 as a means to proactively increase its financial flexibility in response to increased volatility and uncertainty associated with COVID-19. At the date of this filing, the Company has yet to issue any shares of its common stock under the ATM Program and intends to maintain the program during the POA 11 construction.

Cash ~~Used in~~Provided by Operating Activities

Net cash ~~used in~~provided by operating activities for the three months ended ~~March 31,~~September 30, 2021 was ~~$4.4~~$21.8 million, compared to ~~$8.0~~$79.5 million for the three months ended ~~March 31,~~September 30, 2020. Net cash provided by operating activities for the nine months ended September 30, 2021 was $75.5 million, compared to $81.4 million for the nine months ended September 30, 2020. Adjusted EBITDA for the three months ended ~~March 31,~~September 30, 2021 was ~~$65.9~~

$48.8 million, compared to ~~$46.5~~$90.8 million for the three months ended ~~March 31,~~September 30, 2020. Adjusted EBITDA for the nine months ended September 30, 2021 was $167.4 million, compared to $179.4 million for the nine months ended September 30, 2020 (see “Non-GAAP Financial Performance Measures”). Net cash provided by operating activities was impacted by the following key factors for the applicable periods:


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	In thousands		2021			2020		In thousands	2021		2020		2021		2020
Cash flow before changes in operating assets and liabilities	Cash flow before changes in operating assets and liabilities		$	41,580		$	30,144	Cash flow before changes in operating assets and liabilities	$	34,804	$	57,378	$	107,826	$	103,933
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:							Changes in operating assets and liabilities:
Receivables	Receivables		999			(813)		Receivables	(944)		(1,497)		1,016		(3,846)
Prepaid expenses and other	Prepaid expenses and other		(655)			(346)		Prepaid expenses and other	(80)		(1,921)		593		(1,186)
Inventories	Inventories		(17,486)			(21,925)		Inventories	(3,820)		(3,066)		(18,047)		(33,047)
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities		(28,797)			(15,051)		Accounts payable and accrued liabilities	(8,114)		28,570		(15,842)		15,566
Cash provided by (used in) operating activities			$	(4,359)		$	(7,991)
Cash provided by operating activities								Cash provided by operating activities	$	21,846	$	79,464	$	75,546	$	81,420

Net cash ~~used in~~provided by operating activities decreased ~~$3.6~~$57.6 million for the three months ended ~~March 31,~~September 30, 2021 compared to the three months ended September 30, 2020, primarily due to a 6% decrease in average realized gold prices, and lower gold and silver ounces sold (6% and 4%, respectively), higher mining and income tax at Palmarejo, and the timing of interest payments. Revenue for the three months ended September 30, 2021 decreased by $21.8 million, of which $11.5 million was the result of the lower volume of gold and silver sales and $10.3 million was due to lower average realized gold prices.

Net cash provided by operating activities decreased $5.9 million for the nine months ended September 30, 2021, primarily due to higher exploration costs, and higher mining and income tax at Palmarejo, partially offset by a ~~12%~~1% and ~~57%~~33% increase in average realized gold and silver prices, respectively, ~~partially offset by lower ounces sold of~~and higher gold and silver ~~(3%~~ounces sold (1% and ~~10%~~9%, respectively), ~~higher income~~ and ~~mining tax payments~~a reduction in operating costs at ~~Palmarejo and payment of $4.0 million of interest related~~Silvertip due to the ~~tender and redemption of the 2024 Senior Notes.~~temporary suspension in 2020. Revenue for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 increased by ~~$29.0~~$67.8 million, of which ~~$40.1~~$48.3 million was the result of higher average realized gold and silver prices ~~partially offset by a decrease of $11.1~~and $19.5 million was due to ~~lower~~the higher volume of gold and silver sales.

Cash ~~Used in~~Provided by (Used in) Investing Activities

Net cash used in investing activities in the three months ended ~~March 31,~~September 30, 2021 was ~~$53.9~~$72.3 million compared to ~~$17.7~~$24.8 million in the three months ended ~~March 31,~~September 30, 2020. Cash used in investing activities increased primarily due to ~~the commencement of~~ construction activities related to POA 11 ~~in August 2020~~ at ~~Rochester.~~Rochester and the potential expansion at Silvertip. The Company incurred capital expenditures of ~~$59.4~~$71.3 million in the three months ended ~~March 31,~~September 30, 2021 compared with ~~$22.2~~$23.0 million in the three months ended ~~March 31,~~September 30, 2020. Capital expenditures in the three months ended ~~March 31,~~September 30, 2021 were primarily related to POA 11 construction activities at Rochester, potential expansion expenditures at Silvertip and underground development at Palmarejo and Kensington. Capital expenditures in the three months ended ~~March 31,~~September 30, 2020 were primarily related to the commencement of POA 11 construction activities at Rochester and underground development at ~~Silvertip,~~ Palmarejo and ~~Kensington and~~Kensington.

Net cash used in investing activities in the nine months ended September 30, 2021 was $204.4 million compared to $39.6 million in the nine months ended September 30, 2020. Cash used in investing activities increased primarily due to construction activities related to POA 11 at Rochester and the potential expansion at Silvertip in the current period and the impact of the net proceeds of $19.4 million from the sale of Metalla Common Shares in the comparable period of 2020. The Company incurred capital expenditures of $208.9 million in the nine months ended September 30, 2021 compared with $61.9 million in the nine months ended September 30, 2020. Capital expenditures in the nine months ended September 30, 2021 were primarily related to POA 11 construction activities at ~~Rochester.~~Rochester, potential expansion expenditures at Silvertip and underground development at Palmarejo and Kensington. Capital expenditures in the nine months ended September 30, 2020 were primarily related to POA 11 at Rochester, which commenced construction activities during the third quarter, and underground development at Palmarejo and Kensington.

The Company has started to experience inflationary pressures, specifically with respect to building materials and fuel as well as overall tightness in the construction market related to capital projects, most notably the POA 11 project at Rochester and to operating costs company-wide.

Cash Provided by (Used in) Financing Activities

Net cash provided by financing activities in the three months ended ~~March 31,~~September 30, 2021 was ~~$119.6~~$12.0 million compared to ~~$23.4~~net cash used in financing activities of $48.4 million in the three months ended ~~March 31,~~September 30, 2020. During the three months ended ~~March 31,~~September 30, 2021, the Company drew $20.0 million from the RCF. During the three months ended September 30, 2020, the Company repaid $40.0 million under the RCF.

Net cash provided by financing activities in the nine months ended September 30, 2021 was $121.8 million compared to net cash used in financing activities of $20.6 million in the nine months ended September 30, 2020. During the nine months ended September 30, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, and drew $20.0 million from the RCF, partially offset by the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums. During the ~~three~~nine months ended ~~March 31,~~September 30, 2020, the Company drew ~~$50.0~~$20.0 million, net, from the RCF, ~~partially offset by the payment of~~and paid cash contingent consideration of $18.8 million associated with the Silvertip acquisition.

The Company secured a finance lease package for nearly $60 million during the quarter, a portion of which has been funded as of September 30, 2021. The package is earmarked for planned equipment purchases for the POA 11 project in 2021 and 2022, and has an interest rate of 5.20%.

Critical Accounting Policies and Accounting Developments

Please see Note 2 -- Summary of Significant Accounting Policies contained in the 2020 10-K and in Note 2 - Summary of Significant Accounting Policies contained in this Report for the Company’s critical accounting policies and estimates.

Other Liquidity Matters

We believe that our liquidity and capital resources in the U.S. 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 indebtedness, future cash interest payments and/or amounts due at maturity or upon redemption and for general working capital purposes, from time-to-time we may (1) issue equity securities for cash in public or private offerings or (2) repurchase certain of our debt securities for cash or in exchange for other securities, which may include secured or unsecured notes or equity, in each case in open market or privately negotiated transactions. We evaluate any such transactions in light of prevailing market conditions, liquidity requirements, contractual restrictions, and other factors. The

amounts involved may be significant and any debt repurchase transactions may occur at a substantial discount to the debt securities’ face amount.

Non-GAAP Financial Performance Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). Unless otherwise noted, we present the Non-GAAP financial measures in the tables below. These measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Adjusted Net Income (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 is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. Adjusted net income (loss) is reconciled to Net income (loss) in the following table:


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands except per share amounts	In thousands except per share amounts		2021			2020		In thousands except per share amounts	2021		2020		2021		2020
Net income (loss)	Net income (loss)		$	2,060		$	(11,900)	Net income (loss)	$	(54,768)	$	26,856	$	(20,562)	$	13,747

Fair value adjustments, net	Fair value adjustments, net		3,799			8,819		Fair value adjustments, net	26,440		(2,243)		(7,000)		(3,491)
Foreign exchange loss (gain)	Foreign exchange loss (gain)		(43)			(6,620)		Foreign exchange loss (gain)	388		1,233		1,849		(4,761)
(Gain) loss on sale of assets and securities	(Gain) loss on sale of assets and securities		(4,053)			(374)		(Gain) loss on sale of assets and securities	92		2,476		(4,582)		2,093

VAT write-off								VAT write-off	25,982		—		25,982		—
Loss on debt extinguishment	Loss on debt extinguishment		9,172			—		Loss on debt extinguishment	—		—		9,172		—
Silvertip inventory write-down	Silvertip inventory write-down		—			10,381		Silvertip inventory write-down	271		1,232		271		13,717

Wharf inventory write-down								Wharf inventory write-down	—		—		—		3,323
Silvertip temporary suspension costs	Silvertip temporary suspension costs		—			3,509		Silvertip temporary suspension costs	—		838		—		6,073
Silvertip lease modification	Silvertip lease modification		—			(4,051)		Silvertip lease modification	—		—		—		(4,051)
Silvertip gain on contingent consideration	Silvertip gain on contingent consideration		—			(955)		Silvertip gain on contingent consideration	—		—		—		(955)

Novation								Novation	—		3,819		—		3,819
COVID-19 costs	COVID-19 costs		3,005			272		COVID-19 costs	617		4,037		5,937		10,418

Tax effect of adjustments(1)								Tax effect of adjustments(1)	(1,630)		—		(574)		—
Adjusted net income (loss)	Adjusted net income (loss)		$	13,940		$	(919)	Adjusted net income (loss)	$	(2,608)	$	38,248	$	10,493	$	39,932

Adjusted net income (loss) per share - Basic	Adjusted net income (loss) per share - Basic		$	0.06		$	0.00	Adjusted net income (loss) per share - Basic	$	(0.01)	$	0.16	$	0.04	$	0.17
Adjusted net income (loss) per share - Diluted	Adjusted net income (loss) per share - Diluted		$	0.06		$	0.00	Adjusted net income (loss) per share - Diluted	$	(0.01)	$	0.16	$	0.04	$	0.17

(1) For the three and nine months ended September 30, 2021, tax effect of adjustments of $1.6 million (-3%) and $0.6 million (-2%) are primarily related to the fair value adjustments on the Company’s equity investments.

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 indenture governing the 2029 Senior Notes and the RCF to determine our ability to make certain payments and incur additional indebtedness. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income (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 following table:

3644


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
In thousands except per share amounts	In thousands except per share amounts		2021			2020		In thousands except per share amounts	2021		2020		2021		2020
Net income (loss)	Net income (loss)		$	2,060		$	(11,900)	Net income (loss)	$	(54,768)	$	26,856	$	(20,562)	$	13,747

Interest expense, net of capitalized interest	Interest expense, net of capitalized interest		4,910			5,128		Interest expense, net of capitalized interest	3,237		5,096		13,240		15,989
Income tax provision (benefit)	Income tax provision (benefit)		12,786			(3,939)		Income tax provision (benefit)	6,400		13,113		34,526		12,018
Amortization	Amortization		29,937			36,162		Amortization	30,962		32,216		92,872		96,254
EBITDA	EBITDA		49,693			25,451		EBITDA	(14,169)		77,281		120,076		138,008
Fair value adjustments, net	Fair value adjustments, net		3,799			8,819		Fair value adjustments, net	26,440		(2,243)		(7,000)		(3,491)
Foreign exchange (gain) loss	Foreign exchange (gain) loss		773			76		Foreign exchange (gain) loss	1,028		599		2,299		665
Asset retirement obligation accretion	Asset retirement obligation accretion		2,905			2,847		Asset retirement obligation accretion	3,027		2,968		8,898		8,724
Inventory adjustments and write-downs	Inventory adjustments and write-downs		572			476		Inventory adjustments and write-downs	5,519		(230)		6,358		1,038
(Gain) loss on sale of assets and securities	(Gain) loss on sale of assets and securities		(4,053)			(374)		(Gain) loss on sale of assets and securities	92		2,476		(4,582)		2,093

VAT write-off								VAT write-off	25,982		—		25,982		—
Loss on debt extinguishment	Loss on debt extinguishment		9,172			—		Loss on debt extinguishment	—		—		9,172		—
Silvertip inventory write-down	Silvertip inventory write-down		—			10,381		Silvertip inventory write-down	271		1,232		271		13,717
Silvertip temporary suspension costs	Silvertip temporary suspension costs		—			3,509		Silvertip temporary suspension costs	—		838		—		6,073
Silvertip lease modification	Silvertip lease modification		—			(4,051)		Silvertip lease modification	—		—		—		(4,051)
Silvertip gain on contingent consideration	Silvertip gain on contingent consideration		—			(955)		Silvertip gain on contingent consideration	—		—		—		(955)
COVID-19 costs	COVID-19 costs		3,005			272		COVID-19 costs	617		4,037		5,937		10,418

Wharf inventory write-down								Wharf inventory write-down	—		—		—		3,323

Adjusted EBITDA	Adjusted EBITDA		$	65,866		$	46,451	Adjusted EBITDA	$	48,807	$	90,777	$	167,411	$	179,381

Free Cash Flow

Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Cash Provided By (used in) Operating Activities less Capital expenditures as presented on the Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

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


		Three Months Ended March 31,			Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	(Dollars in thousands)		2021			2020		(Dollars in thousands)	2021		2020		2021		2020
Cash flow from operations	Cash flow from operations		$	(4,359)		$	(7,991)	Cash flow from operations	$	21,846	$	79,464	$	75,546	$	81,420
Capital expenditures	Capital expenditures		59,424			22,208		Capital expenditures	71,266		22,996		208,913		61,886
Free cash flow	Free cash flow		$	(63,783)		(30,199)		Free cash flow	$	(49,420)	$	56,468	$	(133,367)	19,534

Operating Cash Flow Before Changes in Working Capital

Management uses Operating Cash Flow Before Changes in Working Capital as a non-GAAP measure to analyze cash flows generated from operations. Operating Cash Flow Before Changes in Working Capital is Cash Provided By (used in) Operating Activities excluding the change in Receivables, Prepaid expenses and other, Inventories and Accounts payable and accrued liabilities as presented on the Consolidated Statements of Cash Flows. The Company believes Operating Cash Flow Before Changes in Working Capital is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Operating Cash Flow Before Changes in Working Capital and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Operating Cash Flow Before Changes in Working Capital is not necessarily comparable to such other similarly titled captions of other companies.

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


		Three Months Ended March 31,					Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	(Dollars in thousands)	2021		2020		(Dollars in thousands)	2021		2020		2021		2020
Cash provided by (used in) operating activities	Cash provided by (used in) operating activities	$	(4,359)	$	(7,991)	Cash provided by (used in) operating activities	$	21,846	$	79,464	$	75,546	$	81,420
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Receivables	Receivables	(999)		813		Receivables	944		1,536		(1,016)		2,349
Prepaid expenses and other	Prepaid expenses and other	655		346		Prepaid expenses and other	80		(1,081)		(593)		(735)
Inventories	Inventories	17,486		21,925		Inventories	3,820		8,056		18,047		29,981
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	28,797		15,051		Accounts payable and accrued liabilities	8,114		(2,047)		15,842		13,004
Operating cash flow before changes in working capital	Operating cash flow before changes in working capital	$	41,580	$	30,144	Operating cash flow before changes in working capital	$	34,804	$	85,928	$	107,826	$	126,019

Costs Applicable to Sales

Management uses CAS to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation. We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold, silver, zinc and lead, assessing our operating performance and ability to generate free cash flow from operations and sustaining production. These measures may not be indicative of operating profit or cash flow from operations as determined under GAAP. Management believes that allocating CAS to gold, silver, zinc and lead based on gold, silver, zinc and lead metal sales relative to total metal sales best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company. Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.

Three Months Ended ~~March 31,~~September 30, 2021


In thousands (except metal sales, per ounce and per pound amounts)	In thousands (except metal sales, per ounce and per pound amounts)	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Total		In thousands (except metal sales, per ounce and per pound amounts)	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Total
Costs applicable to sales, including amortization (U.S. GAAP)	Costs applicable to sales, including amortization (U.S. GAAP)	$	43,047	$	27,610	$	44,839	$	21,207	$	1,086	$	137,789	Costs applicable to sales, including amortization (U.S. GAAP)	$	47,763	$	36,340	$	47,362	$	32,237	$	1,258	$	164,960
Amortization	Amortization	(9,059)		(3,577)		(13,445)		(2,475)		(1,086)		(29,642)		Amortization	(8,747)		(4,671)		(12,786)		(3,158)		(1,258)		(30,620)
Costs applicable to sales	Costs applicable to sales	$	33,988	$	24,033	$	31,394	$	18,732	$	—	$	108,147	Costs applicable to sales	$	39,016	$	31,669	$	34,576	$	29,079	$	—	$	134,340

Metal Sales	Metal Sales													Metal Sales
Gold ounces	Gold ounces	25,687		6,934		31,595		18,896				83,112		Gold ounces	24,897		5,559		29,902		29,446				89,804
Silver ounces	Silver ounces	1,637,695		771,354				26,455		—		2,435,504		Silver ounces	1,714,617		758,214				18,172		—		2,491,003
Zinc pounds	Zinc pounds									—		—		Zinc pounds									—		—
Lead pounds	Lead pounds									—		—		Lead pounds									—		—

Costs applicable to sales	Costs applicable to sales													Costs applicable to sales
Gold ($/oz)	Gold ($/oz)	$	622	$	1,317	$	994	$	954					Gold ($/oz)	$	705	$	1,994	$	1,156	$	973
Silver ($/oz)	Silver ($/oz)	$	11.00	$	19.32					$	—			Silver ($/oz)	$	12.52	$	27.15					$	—
Zinc ($/lb)	Zinc ($/lb)									$	—			Zinc ($/lb)									$	—
Lead ($/lb)	Lead ($/lb)									$	—			Lead ($/lb)									$	—

3846

Three Months Ended ~~March 31,~~September 30, 2020


In thousands (except metal sales, per ounce and per pound amounts)	In thousands (except metal sales, per ounce and per pound amounts)	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Total		In thousands (except metal sales, per ounce and per pound amounts)	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Total
Costs applicable to sales, including amortization (U.S. GAAP)	Costs applicable to sales, including amortization (U.S. GAAP)	$	49,149	$	19,860	$	42,429	$	20,267	$	23,002	$	154,707	Costs applicable to sales, including amortization (U.S. GAAP)	$	46,163	$	22,382	$	43,053	$	31,887	$	1,185	$	144,670
Amortization	Amortization	(13,175)		(2,904)		(11,922)		(2,444)		(5,345)		(35,790)		Amortization	(11,912)		(3,278)		(11,523)		(4,000)		(1,185)		(31,898)
Costs applicable to sales	Costs applicable to sales	$	35,974	$	16,956	$	30,507	$	17,823	$	17,657	$	118,917	Costs applicable to sales	$	34,251	$	19,104	$	31,530	$	27,887	$	—	$	112,772

Metal Sales	Metal Sales													Metal Sales
Gold ounces	Gold ounces	31,287		5,473		32,781		16,094				85,635		Gold ounces	27,252		6,834		27,815		33,382				95,283
Silver ounces	Silver ounces	1,894,789		632,237				14,768		158,984		2,700,778		Silver ounces	1,765,371		785,887				40,521		—		2,591,779
Zinc pounds	Zinc pounds									3,203,446		3,203,446		Zinc pounds									—		—
Lead pounds	Lead pounds									2,453,485		2,453,485		Lead pounds									—		—

Costs applicable to sales	Costs applicable to sales													Costs applicable to sales
Gold ($/oz)	Gold ($/oz)	$	644	$	1,394	$	931	$	1,092					Gold ($/oz)	$	603	$	1,118	$	1,134	$	805
Silver ($/oz)	Silver ($/oz)	$	8.35	$	14.75					NM(1)				Silver ($/oz)	$	10.09	$	14.58					$	—
Zinc ($/lb)	Zinc ($/lb)									NM(1)				Zinc ($/lb)									$	—
Lead ($/lb)	Lead ($/lb)									NM(1)				Lead ($/lb)									$	—

Nine Months Ended September 30, 2021


In thousands (except metal sales, per ounce and per pound amounts)	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	140,999	$	108,487	$	134,114	$	79,881	$	3,529	$	467,010
Amortization	(26,077)		(14,754)		(38,941)		(8,627)		(3,529)		(91,928)
Costs applicable to sales	$	114,922	$	93,733	$	95,173	$	71,254	$	—	$	375,082

Metal Sales
Gold ounces	81,100		20,311		88,293		71,713				261,417
Silver ounces	4,991,932		2,441,429				76,048		—		7,509,409
Zinc pounds									—		—
Lead pounds									—		—







Costs applicable to sales
Gold ($/oz)	$	666	$	1,707	$	1,078	$	966
Silver ($/oz)	$	12.20	$	24.19					$	—
Zinc ($/lb)									$	—
Lead ($/lb)									$	—

Nine Months Ended September 30, 2020


In thousands (except metal sales, per ounce and per pound amounts)	Palmarejo		Rochester		Kensington		Wharf		Silvertip		Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	121,407	$	63,590	$	128,717	$	77,807	$	25,418	$	416,939
Amortization	(32,357)		(9,194)		(36,298)		(9,625)		(7,761)		(95,235)
Costs applicable to sales	$	89,050	$	54,396	$	92,419	$	68,182	$	17,657	$	321,704

Metal Sales
Gold ounces	75,463		17,585		92,963		72,840				258,851
Silver ounces	4,534,802		2,141,803				77,996		158,984		6,913,585
Zinc pounds									3,203,446		3,203,446
Lead pounds									2,453,485		2,453,485







Costs applicable to sales
Gold ($/oz)	$	637	$	1,299	$	994	$	914
Silver ($/oz)	$	9.03	$	14.73					NM(1)
Zinc ($/lb)									NM(1)
Lead ($/lb)									NM(1)

(1) Due to the temporary suspension of mining and processing activities these amounts are not meaningful.

3947

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 lead mining business, including statements regarding operations at the Company’s mines, exploration and development efforts, strategies, expectations regarding the Rochester POA 11 expansion project, the Silvertip mine's potential expansion and restart, supply and labor disruption, inflation, expectations regarding the sale of the La Preciosa project, COVID-19 planning, response and mitigation efforts, hedging strategies, realization of deferred tax assets, expectations about the recovery of VAT in Mexico, timing of completion of obligations under the Amended Sales Contract at Kensington, liquidity management, financing plans, ~~and~~ risk management ~~strategies.~~strategies, capital allocation and anticipated production, costs, and expenses. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this report and in “Risk Factors” section of the 2020 10-K, and the risks set forth in this MD&A and Item 3 of this report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and grade variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and mineralized material, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to ~~the~~workforce, equipment and materials availability, ~~of our workforce,~~inflationary pressures, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, 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 13 -- Derivative Financial Instruments in the notes to the 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 Lead Prices

Gold, silver, zinc and lead 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 lead.

4048

Gold, Silver, Zinc and Lead Hedging

To mitigate the risks associated with gold, silver, zinc and lead price fluctuations, the Company may enter into option contracts to hedge future production. The Company had outstanding Asian put and call option contracts in net-zero-cost collar contracts on ~~245,025~~171,675 ounces of gold at ~~March 31,~~September 30, 2021 that settle monthly through December 2022. The Company is targeting to hedge up to 50% of expected gold production through 2021 and 2022 and may in the future layer on additional hedges as circumstances warrant. The weighted average strike prices on the put and call contracts are ~~$1,613~~$1,623 and ~~$1,956~~$2,002 per ounce of gold, respectively. The contracts are generally net cash settled and, if the price of gold at the time of the expiration is between the put and call prices, would expire at no cost to the Company. These Asian put and call option contracts expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price exceeds the spot price of a commodity, (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions; and (iii) liquidity risk to the extent counterparties exercise rights to cash collateral for out-of-money hedges under applicable instruments. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties. For additional information, please see the section titled “Risk Factors” in the 2020 10-K and part II, Item 1A of this report.

At ~~March 31,~~September 30, 2021, the fair value of the put and call zero cost collars contracts was an asset of ~~$4.1~~$1.6 million. For the ~~quarter~~nine months ended ~~March 31,~~September 30, 2021 the Company recognized a loss of ~~$0.4~~$0.9 million related to expired options in Revenue and the remaining outstanding options were included in accumulated other comprehensive income (loss). A 10% increase in the price of gold at ~~March 31,~~September 30, 2021 would result in a realized loss of $~~2.8~~2.5 million and 10% decrease would result in a realized gain of $~~22.4~~9.3 million. As of ~~March 31,~~September 30, 2021, the closing price of gold was ~~$1,691~~$1,743 per ounce. As of ~~April 26,~~October 25, 2021, the closing price of gold was ~~$1,773~~$1,805 per ounce.

Provisional Gold, Silver, Zinc and Lead 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, silver, zinc and lead 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. At ~~March 31,~~September 30, 2021, the Company had outstanding provisionally priced sales of ~~12,137~~15,966 ounces of gold at an average price of ~~$1,782.~~$1,786. Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.6 million during the ~~three~~nine months ended ~~March 31,~~September 30, 2021. A 10% change in realized gold prices would cause revenue to vary by ~~$2.1~~$2.9 million.

Foreign Currency

The Company operates, or has mineral interests, in several foreign countries including Canada, Mexico, 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 currency forward exchange contracts. At ~~March 31,~~September 30, 2021, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions. The Company had outstanding foreign currency forward exchange contracts to receive ~~$1.1~~$0.4 billion Mexican Pesos at ~~March 31,~~September 30, 2021 with an average exchange rate of ~~25.14~~25.43 that settle monthly through December 2021. At ~~March 31,~~September 30, 2021, the fair value of the foreign currency forward exchange contracts was a net asset of ~~$9.4~~$3.3 million. For the ~~three~~nine months ended ~~March 31,~~September 30, 2021 the Company has recognized a gain of ~~$3.1~~$10.5 million related to expired options in Cost Applicable to Sales and Pre-development, Reclamation and Other, respectively, and an unrealized gain of ~~$9.4~~$3.3 million related to outstanding options in AOCI. A 10% increase or decrease in the exchange rates at ~~March 31,~~September 30, 2021 would result in a realized gain of $~~4.4~~1.8 million or $~~11.8~~4.2 million, respectively.

Interest Rates

Interest Rate Hedging

We may use financial instruments to manage exposures to changes in interest rates on loans, which exposes us to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract.

When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, it does not pose credit risk. We seek to minimize the credit risk in derivative instruments by entering into transactions with what we believe are high-quality counterparties. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. The Company had no outstanding interest rate swaps at ~~March 31,~~September 30, 2021.

Investment Risk

Equity Price Risk

We are exposed to changes in the fair value of our investments in equity securities. For the nine months ended September 30, 2021, the Company recognized unrealized losses of $3.7 million in Fair value adjustments, net due to decreases in the stock price of those equity securities. At September 30, 2021, the fair value of the equity securities was $139.7 million. A 10% change in realized equity prices would result in an unrealized gain or loss of $14.0 million.

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 ~~March 31,~~September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II

Item 1. Legal Proceedings

See Note 17 -- Commitments and Contingencies in the notes to the Consolidated Financial Statements included herein.

Item 1A. Risk Factors

Item 1A -- Risk Factors of the 2020 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~~the Form ~~10-Q.~~10-Q filed for the quarterly periods ended March 31, 2021 (the “First Quarter 10-Q”) and June 30, 2021 (the “Second Quarter 10-Q”). Except as supplemented in the First Quarter 10-Q and ~~updated below,~~the Second Quarter 10-Q, the risk factors set forth in the 2020 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.

~~Coeur is an international company and is exposed to political and social risks associated with its foreign operations.~~

A significant portion of our revenues are generated by operations outside the United States. Exploration, development, production and closure activities in many countries are potentially subject to heightened political and social risks that are beyond our control and could result in increased costs, capacity constraints and potential disruptions to our business. These risks include the possible unilateral cancellation or forced renegotiation of contracts in which we, directly or indirectly, may have an interest, unfavorable changes in foreign laws and regulations, royalty and tax increases (including taxes associated with the import or export of goods), risks associated with the value-added tax (“VAT”) and income tax refund recovery and collection process, erection of trade barriers, including tariffs and duties, claims by governmental entities or indigenous communities, expropriation or nationalization of property and other risks arising out of foreign sovereignty over areas in which our operations are conducted. As an example, as disclosed in Note 17 -- Commitments and Contingencies to the Consolidated Financial Statements, we are currently engaged in efforts to recover VAT paid to the Mexican government that is owed to Coeur associated with Coeur Mexicana’s prior royalty agreement, including through ongoing litigation. In addition, in April 2021 the legislation that limits outsourcing by companies in Mexico of certain services received congressional approval and is expected to be enacted into law as early as the second quarter of 2021. The law is expected to result in increased costs to our operations in Mexico, including additional tax expense, increased compensation to certain employees and costs associated with restructuring our Mexican subsidiaries and employment arrangements to comply with the new law. The right to import and export gold, silver, zinc and lead may depend on obtaining certain licenses and quotas, which could be delayed or denied at the discretion of the relevant regulatory authorities, or could become subject to new taxes, tariffs or duties imposed by U.S. or foreign jurisdictions, which could have a material adverse effect on our business, financial condition, or future prospects. In addition, our rights under local law may be less secure in countries where judicial systems are susceptible to manipulation and intimidation by government agencies, non-governmental organizations or civic groups.

Any of these developments could require us to curtail or terminate operations at our mines, incur significant costs to renegotiate contracts, meet newly-imposed environmental or other standards, pay greater royalties or higher prices for labor or services and recognize higher taxes, or experience significant delays or obstacles in the recovery of VAT or income tax refunds owed, which could materially and adversely affect financial condition, results of operations and cash flows.

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

~~Not applicable.~~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 on August 9, 2021. Under the selling plan, between September 2021 and September 2022, Mr. Nault will sell a total of 100,000 shares of the Company’s common stock so long as the market price of the common stock is higher than the minimum threshold prices 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 6. Exhibits









































~~4.1~~			Indenture, dated March 1, 2021, among Coeur Mining, Inc., as issuer, certain subsidiaries of Coeur Mining, Inc., as guarantors thereto, and The Bank of New York Mellon, as trustee. (Incorporated herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on March 1, 2021 (File No. 001-08641)).
10.1			~~Fifth Amendment to Credit~~Separation and Release of Claims Agreement dated ~~March 1,~~September 7, 2021, ~~by and among~~between Coeur Mining, Inc.~~, certain subsidiaries of Coeur Mining, Inc., as guarantors, certain of the lenders party thereto~~ and ~~Bank of America, N.A., as administrative agent.~~Terrence F. Smith (Incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on ~~March 1,~~September 10, 2021 (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.INS			XBRL Instance Document*
101.SCH			XBRL Taxonomy Extension Schema*
101.CAL			XBRL Taxonomy Extension Calculation Linkbase*
101.DEF			XBRL Taxonomy Extension Definition Linkbase*
101.LAB			XBRL Taxonomy Extension Label Linkbase*
101.PRE			XBRL Taxonomy Extension Presentation Linkbase*
104			Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101).

* The following financial information from Coeur Mining, Inc.'s Quarterly Report on Form 10-Q for the quarter ended ~~March 31,~~September 30, 2021, formatted in XBRL (Extensible Business Reporting Language): Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Statements of Cash Flows and Consolidated Statement of Changes in Stockholders' Equity.

** Management contract or compensatory plan or arrangement.

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)

Dated	~~April 28,~~October 27, 2021	/s/ Mitchell J. Krebs
		MITCHELL J. KREBS
		President and Chief Executive Officer (Principal Executive Officer)

Dated	~~April 28,~~October 27, 2021	/s/ Thomas S. Whelan
		THOMAS S. WHELAN
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

Dated	~~April 28,~~October 27, 2021	/s/ Ken Watkinson
		KEN WATKINSON
		Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)

4452


	At March 31, 2021
In thousands	Cost		Gross Unrealized Losses		Gross Unrealized Gains		Estimated Fair Value
Equity Securities
Integra Resources Corp.	$	7,500	$	0	$	707	$	8,207
Other	2		0		0		2
Equity securities	$	7,502	$	0	$	707	$	8,209


As of March 31, 2021 (In thousands)
	Operating leases		Finance leases
2021	$	9,140	$	19,020
2022	10,988		18,161
2023	10,407		8,870
2024	8,812		2,039
2025	213		490
Thereafter	1,169		0
Total	$	40,729	$	48,580
Less: imputed interest	(3,735)		(4,027)
Net lease obligation	$	36,994	$	44,553