SEGMENT REPORTING | SEGMENT REPORTING The Company’s operating segments include the Palmarejo, Rochester, Kensington and Wharf mines and Silvertip exploration project. Except for the Silvertip exploration project, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip exploration project is engaged in the discovery of silver, zinc and lead. “Other” includes certain mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts. Financial information relating to the Company’s segments is as follows (in thousands): Three Months Ended June 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 35,296 $ 12,638 $ 24,538 $ 48,883 $ — $ — $ 121,355 Silver sales 37,432 16,463 63 1,922 — — 55,880 Metal sales 72,728 29,101 24,601 50,805 — — 177,235 Costs and Expenses Costs applicable to sales (1) 46,591 26,068 39,149 27,829 — — 139,637 Amortization 8,017 3,649 4,801 1,805 1,021 302 19,595 Exploration 1,614 279 2,327 — (1,628) 328 2,920 Other operating expenses 2,233 2,048 984 1,029 4,977 8,566 19,837 Other income (expense) Gain on debt extinguishment — — — — — 2,961 2,961 Fair value adjustments, net — — — — — (3,922) (3,922) Interest expense, net 178 (287) (325) (30) (18) (6,430) (6,912) Other, net (3) 3,022 (399) (56) 145 (94) (12,537) (9,919) Income and mining tax (expense) benefit (6,220) 137 — (2,301) — (1,482) (9,866) Net Income (loss) $ 11,253 $ (3,492) $ (23,041) $ 17,956 $ (4,482) $ (30,606) $ (32,412) Segment assets (2) $ 311,609 $ 977,958 $ 160,145 $ 103,249 $ 217,831 $ 61,920 $ 1,832,712 Capital expenditures $ 11,914 $ 61,458 $ 11,656 $ 150 $ 138 $ 265 $ 85,581 (1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests (3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail Three Months Ended June 30, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 44,127 $ 15,199 $ 50,030 $ 37,269 $ — $ — $ 146,625 Silver sales 41,837 15,304 233 124 — — 57,498 Metal sales 85,964 30,503 50,263 37,393 — — 204,123 Costs and Expenses Costs applicable to sales (1) 49,063 37,953 39,311 24,352 — — 150,679 Amortization 9,737 4,961 9,369 2,248 1,259 391 27,965 Exploration 1,686 1,466 1,218 — (262) 1,171 5,279 Other operating expenses 752 1,830 308 527 5,090 9,958 18,465 Other income (expense) Gain on debt extinguishment — — — — — — — Fair value adjustments, net — — — — — (62,810) (62,810) Interest expense, net (11) (203) (421) (14) (50) (4,471) (5,170) Other, net (3) 832 (43) (25) 634 (230) (855) 313 Income and mining tax (expense) benefit (10,445) 1,000 127 (972) — (1,212) (11,502) Net Income (loss) $ 15,102 $ (14,953) $ (262) $ 9,914 $ (6,367) $ (80,868) $ (77,434) Segment assets (2) $ 292,246 $ 689,215 $ 149,365 $ 90,645 $ 239,348 $ 163,190 $ 1,624,009 Capital expenditures $ 10,060 $ 46,956 $ 8,828 $ 475 $ 5,703 $ 1,134 $ 73,156 (1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests (3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail Six Months Ended June 30, 2023 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 75,903 $ 28,685 $ 64,662 $ 79,206 $ — $ — $ 248,456 Silver sales 79,132 34,316 137 2,492 — — 116,077 Metal sales 155,035 63,001 64,799 81,698 — — 364,533 Costs and Expenses Costs applicable to sales (1) 95,856 68,933 76,531 51,373 — — 292,693 Amortization 16,736 8,867 10,645 3,214 2,242 599 42,303 Exploration 2,927 662 3,323 — (131) 789 7,570 Other operating expenses 3,759 4,073 1,968 2,043 11,523 19,444 42,810 Other income (expense) Gain on debt extinguishment — — — — — 2,961 2,961 Fair value adjustments, net — — — — — 6,639 6,639 Interest expense, net 300 (462) (855) (44) (40) (13,200) (14,301) Other, net (3) 2,884 (492) (127) (331) (103) (12,711) (10,880) Income and mining tax (expense) benefit (15,922) 376 — (2,720) — (2,308) (20,574) Net Income (loss) $ 23,019 $ (20,112) $ (28,650) $ 21,973 $ (13,777) $ (39,451) $ (56,998) Segment assets (2) $ 311,609 $ 977,958 $ 160,145 $ 103,249 $ 217,831 $ 61,920 $ 1,832,712 Capital expenditures $ 22,064 $ 113,420 $ 22,358 $ 271 $ 807 $ 709 $ 159,629 (1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests (3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail Six Months Ended June 30, 2022 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 84,201 $ 26,251 $ 94,089 $ 71,535 $ — $ — $ 276,076 Silver sales 84,836 30,621 478 516 — — 116,451 Metal sales 169,037 56,872 94,567 72,051 — — 392,527 Costs and Expenses Costs applicable to sales (1) 92,288 70,228 76,221 45,209 — — 283,946 Amortization 19,123 9,671 17,991 4,309 2,518 786 54,398 Exploration 3,296 3,408 1,620 — (262) 2,635 10,697 Other operating expenses 1,673 3,661 923 1,039 11,584 21,269 40,149 Other income (expense) Gain on debt extinguishment — — — — — — — Fair value adjustments, net — — — — — (52,205) (52,205) Interest expense, net (126) (381) (669) (27) (118) (8,417) (9,738) Other, net (3) 493 (91) 81 673 (235) 1,129 2,050 Income and mining tax (expense) benefit (22,520) 965 127 (1,965) — 10,197 (13,196) Net Income (loss) $ 30,504 $ (29,603) $ (2,649) $ 20,175 $ (14,193) $ (73,986) $ (69,752) Segment assets (2) $ 292,246 $ 689,215 $ 149,365 $ 90,645 $ 239,348 $ 163,190 $ 1,624,009 Capital expenditures $ 23,671 $ 80,006 $ 16,752 $ 1,836 $ 17,562 $ 2,831 $ 142,658 (1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests (3) See Note 13 -- Additional Comprehensive Income (Loss) Detail for additional detail Assets June 30, 2023 December 31, 2022 Total assets for reportable segments $ 1,832,712 $ 1,669,982 Cash and cash equivalents 56,845 61,464 Other assets 82,547 114,697 Total consolidated assets $ 1,972,104 $ 1,846,143 Geographic Information Long-Lived Assets June 30, 2023 December 31, 2022 United States $ 1,062,114 $ 899,960 Mexico 258,467 251,950 Canada 233,030 237,723 Other 122 122 Total $ 1,553,733 $ 1,389,755 Revenue Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 United States $ 104,507 $ 118,159 $ 209,498 $ 223,490 Mexico 72,728 85,964 155,035 169,037 Total 177,235 $ 204,123 $ 364,533 $ 392,527 |