10q10k10q10k.net

What changed in Coeur Mining, Inc.'s 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of Coeur Mining, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+363 added−346 removedSource: 10-K (2024-02-21) vs 10-K (2023-02-22)

Top changes in Coeur Mining, Inc.'s 2023 10-K

363 paragraphs added · 346 removed · 274 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

38 edited+2 added−7 removed30 unchanged
Biggest changeFor example, we: • updated our initial greenhouse gas (“GHG”) emissions intensity reduction target in 2022 to 35% reduction in net intensity by the end of 2024 compared to base-year and tied 20% of the 2022 executive performance share award to achievement of that goal; • enhanced our climate disclosure in-line with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations; • conducted site-specific scenario analysis workshops, energy and emissions diagnostics and financial modeling; • completed an initial scope 3 quantification exercise; and • continue to incorporate climate risks and opportunities into our long-term business planning and strategy.
Biggest changeFor example, we: • further increased the amount of renewable energy in our purchased electricity through formal agreements with energy providers; • actively manage GHG emissions and plan to achieve our 35% net intensity reduction target by the end of 2024 compared to base-year; 20% of the 2022 executive performance share award is tied to achievement of that goal; • enhanced our climate disclosures in-line with recommendations set by the Task Force on Climate-related Financial Disclosures (“TCFD”); • informed by the knowledge and systems developed as part of our first climate scenario analysis (see 2022 ESG report for details), we continue to incorporate climate-related risks and opportunities into our enterprise risk management and long-term business planning and strategy; • developed and implementing a Biodiversity Management Standard; and • formalized a Tailings Management Policy and committed to adopting the Global Industry Standard on Tailings Management (“GISTM”).
Factors that could cause actual results to differ materially from those projected in the forward-looking statements include: (i) the risk factors set forth below under Item 1A and in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Item 7; (ii) the risk that the Rochester expansion project is not completed on a timely basis or requires more capital than currently anticipated for completion; (iii) the risk that anticipated production, cost, expenditure and expense levels at at Palmarejo, Rochester, Wharf and Kensington are not attained; (iv) the risks and hazards inherent in the mining business (including risks inherent in developing and expanding large-scale mining projects, environmental hazards, industrial accidents, weather or geologically-related conditions); (v) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment; (vi) the impact of geopolitical conditions, pandemics or epidemics, climate change, extreme weather events and other macro conditions, including disruptions to operations, the need for heightened health and safety protocols, inflation, and disruptions to our vendors, suppliers and the communities where we operate; (vii) the uncertainties inherent in Coeur’s production, exploration and development activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions, grade and recovery variability; (viii) any future labor disputes or work stoppages (involving us or our subsidiaries or third parties); (ix) the risk of adverse outcomes in litigation; (x) the uncertainties inherent in the estimation of gold, silver, zinc and lead mineral reserves and resources; (xi) impacts from Coeur’s future acquisition of new mining properties or businesses; (xii) the loss of access or insolvency of any third-party refiner or smelter to whom Coeur markets its production; (xiii) the continued effects of the COVID-19 pandemic, including impacts to workforce, materials and equipment availability; (xiv) inflationary pressures; (xv) continued access to financing sources; (xvi) 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 and on the communities where we operate; (xvii) the effects of environmental and other governmental regulations and government shut-downs; (xviii) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries; and (xix) our ability to raise additional financing necessary to conduct our business, make payments or refinance our debt.
Factors that could cause actual results to differ materially from those projected in the forward-looking statements include: (i) the risk factors set forth below under Item 1A and in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Item 7; (ii) the risk that the Rochester expansion commissioning and ramp up is not completed on a timely basis or requires more capital than currently anticipated; (iii) the risk that anticipated production, cost, expenditure and expense levels at Palmarejo, Rochester, Wharf and Kensington are not attained; (iv) the risks and hazards inherent in the mining business (including risks inherent in developing and expanding large-scale mining projects, environmental hazards, industrial accidents, weather or geologically-related conditions); (v) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment; (vi) the impact of geopolitical conditions, pandemics or epidemics, climate change, extreme weather events and other macro conditions, including disruptions to operations, the need for heightened health and safety protocols, inflation, and disruptions to our vendors, suppliers and the communities where we operate; (vii) the uncertainties inherent in Coeur’s production, exploration and development activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions, grade and recovery variability; (viii) any future labor disputes or work stoppages (involving us or our subsidiaries or third parties); (ix) the risk of adverse outcomes in litigation; (x) the uncertainties inherent in the estimation of gold, silver, zinc and lead mineral reserves and resources; (xi) impacts from Coeur’s future acquisition of new mining properties or businesses; (xii) the loss of access or insolvency of any third-party refiner or smelter to whom Coeur markets its production; (xiii) the continued effects of the COVID-19 pandemic, including impacts to workforce, materials and equipment availability; (xiv) inflationary pressures; (xv) continued access to financing sources; (xvi) 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 and on the communities where we operate; (xvii) the effects of environmental and other governmental regulations and government shut-downs; (xviii) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries; and (xix) our ability to raise additional financing necessary to conduct our business, make payments or refinance our debt.
We have received all permits required to operate and carry out the current scope of activities at the Palmarejo complex, Rochester, Kensington and Wharf mines, and the Silvertip exploration property. We are in the process of amending existing permits at our Palmarejo complex and Wharf mine to support future planned activities.
We have received all permits required to operate and carry out the current scope of activities at the Palmarejo complex, Rochester, Kensington and Wharf mines, and the Silvertip exploration property. We are in the process of amending existing permits at our Palmarejo complex to support future planned activities.
Coeur Alaska received a favorable final Record of Decision from the Forest Service for their Plan of Operations Amendment 1 (“POA 1”) on February 24, 2022. POA 1 gives Coeur Alaska the ability to increase tailings and waste rock storage capacity to support an expected longer mine life, reflecting positive exploration results, current metal prices, and ongoing operational efficiencies.
Coeur Alaska received a favorable final Record of Decision from the Forest Service for its Plan of Operations Amendment 1 (“POA 1”) on February 24, 2022. POA 1 gives Coeur Alaska the ability to increase tailings and waste rock storage capacity to support an expected longer mine life, reflecting positive exploration results, current metal prices, and ongoing operational efficiencies.
Metals Prices and Hedging Activities The results of the Company and its operating segments are substantially dependent upon the market prices of gold and silver, which fluctuate widely.
Metals Prices and Hedging Activities The financial results of the Company and its operating segments are substantially dependent upon the market prices of gold and silver, which fluctuate widely.
We provide opportunities for employees to participate in IMPACT training, an intensive one-year training program we created for front-line supervisors throughout our organizational structure to focus on leadership development and mining as a business. Through IMPACT training, we have invested over 22,124 cumulative hours of leadership training and personal development in almost 200 employees.
We provide opportunities for employees to participate in IMPACT training, an intensive one-year training program we created for front-line supervisors throughout our organizational structure to focus on leadership development and mining as a business. Through IMPACT training, we have invested over 22,500 cumulative hours of leadership training and personal development in almost 200 employees.
The estimation of measured resources and indicated resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves, and therefore investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into S-K 1300-compliant reserves.
The estimation of measured resources and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves, and therefore, investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into S-K 1300-compliant reserves.
Quantitative and Qualitative Disclosures About Market Risk” and “Note 15 – Derivative Financial Instruments in the notes to the Consolidated Financial Statements.” 4 Metal Processing, Marketing and Sales We produce gold and silver doré, as well as gold concentrate.
Quantitative and Qualitative Disclosures About Market Risk” and “Note 14 – Derivative Financial Instruments in the notes to the Consolidated Financial Statements.” 4 Metal Processing, Marketing and Sales We produce gold and silver doré, as well as gold concentrate.
Copies of our Corporate Governance Guidelines, charters of the key committees of the Board (Audit, Compensation and Leadership Development, Executive, Nominating and Corporate Governance, and Environmental, Health, Safety, and Corporate Responsibility Committees) and our Code of Business Conduct and Ethics, applicable to the Chief Executive Officer, 7 Chief Financial Officer and Chief Accounting Officer, among others, are also available on our website.
Copies of our Corporate Governance Guidelines, charters of the key committees of the Board (Audit, Compensation and Leadership Development, Executive, Finance and Technical, Nominating and Corporate Governance, and Environmental, Health, Safety, and Corporate Responsibility Committees) and our Code of Business Conduct and Ethics, applicable to the Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, among others, are also available on our website.
Over 94% of U.S. employees are enrolled in our medical benefit plan, and over 90% of U.S. employees contribute to our 401(k) plan. Supplemental healthcare is provided above government requirements in both Canada and Mexico. We were a leader in the mining industry by providing domestic partner benefits in 2017 and participation has increased 150% since introduction.
Over 92% of U.S. employees are enrolled in our medical benefit plan, and over 90% of U.S. employees contribute to our 401(k) plan. Supplemental healthcare is provided above government requirements in both Canada and Mexico. We were a leader in the mining industry by providing domestic partner benefits in 2017 and participation has increased 250% since introduction.
The doré produced at the Palmarejo complex and Rochester mine, as well as the concentrate product produced by the Wharf mine, is refined by a geographically diverse group of third-party refiners into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets.
The doré produced at the Palmarejo complex and Rochester mine, as well as the electrolytic cathodic sludge produced by the Wharf mine, is refined by a geographically diverse group of third-party refiners into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets.
During 2022, we provided over 50 apprenticeships and internships and worked with organizations such as By the Hand Club in Chicago to educate youth in our communities about career opportunities in mining. Providing career opportunities to local community members and participating in community initiatives creates a closer connection between our operations and local stakeholders and communities.
During 2023, we provided over 40 apprenticeships and internships and worked with organizations such as By the Hand Club in Chicago to educate youth in our communities about career opportunities in mining. 6 Providing career opportunities to local community members and participating in community initiatives creates a closer connection between our operations and local stakeholders and communities.
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 our mining business, including anticipated mineral reserve and resource estimates, exploration efforts and expenditures, development, expansion initiatives at Rochester, Kensington and Silvertip, expectations about timing of deliveries against the Kensington prepayment, LCM adjustments at Rochester, permitting, estimated production, costs, capital expenditures, expenses, recoveries, metals prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, environmental, social and governance (“ESG”) and human capital management initiatives, risk management strategies, including hedging, capital resources and use, cash flow maximization, mine life and other strategic initiatives.
Information contained on our website is not a part of this report. 7 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 our mining business, including anticipated mineral reserve and resource estimates, exploration efforts and expenditures, development and expansion initiatives at Rochester, Kensington and Silvertip, expectations about timing of deliveries against the Kensington, Rochester and Wharf prepayments, LCM adjustments at Rochester, permitting, estimated production, costs, capital expenditures, expenses, recoveries, metals prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, environmental, social and governance (“ESG”) and human capital management initiatives, risk management strategies, including hedging, capital resources and use, cash flow maximization, mine life and other strategic initiatives.
The costs to comply with these regulatory requirements are substantial and possible future legislation and regulations could cause additional expense, capital expenditures, restrictions and delays in the development and continued operation of our properties, the extent of which cannot be predicted. Expenditures for environmental compliance in 2023 are expected to range from $9.2 million to $10.2 million.
The costs to comply with these regulatory requirements are substantial and possible future legislation and regulations could cause additional expense, capital expenditures, restrictions and delays in the development and continued operation of our properties, the extent of which cannot be predicted. Expenditures for environmental compliance in 2024 are expected to range from $10.4 million to $11.4 million.
Coeur Rochester commenced a significant expansion project in 2020 (Plan of Operations Amendment No. 11, or “POA 11”) consisting of construction of a new leach pad, crushing facility, process plant and related infrastructure, which is expected to support an extended mine life. The construction is expected to be completed during 2023.
Coeur Rochester commenced a significant expansion project in 2020 (Plan of Operations Amendment No. 11, or “POA 11”) consisting of construction of a new leach pad, crushing facility, process plant and related infrastructure, which is expected to support an extended mine life. The construction of POA11 was completed in the fourth quarter of 2023.
Feedback was reviewed by the management team and our Board of Directors (our “Board”). The management team also reviewed the results with employees at each of our operations through facilitated discussions to gain additional insight into the feedback. We developed site-specific action plans to address feedback and monitor progress in the future.
The management team also reviewed the results with employees at each of our operations through facilitated discussions to gain additional insight into the feedback. We developed site-specific action plans to address feedback and monitor progress in the future.
While mining activities are suspended, the Company (i) is investing in exploration to potentially further expand the resource and extend the mine life, and (ii) continues to work to pursue a mill expansion to improve the asset’s cost structure and its ability to deliver sustainable cash flow.
While mining activities are suspended, the Company (i) is investing in exploration to potentially further expand the resource and extend the mine life, and (ii) planning for an eventual mill expansion to improve the asset’s cost structure and its ability to deliver sustainable cash flow.
We work to protect our environment through an approach of responsible production and a focus on best practices. On an ongoing basis, we conduct site-specific environmental risk reviews and utilize a set of key performance indicators (“KPIs”) to evaluate performance results by mine. We believe that this systematic approach leads to awareness, risk mitigation and a pursuit of continuous improvement.
On an ongoing basis, we conduct site-specific environmental risk reviews and utilize a set of key performance indicators (“KPIs”) to evaluate performance results by mine. We believe that this systematic approach leads to awareness, risk mitigation and a pursuit of continuous improvement.
In order to emphasize the importance of DEI in the workplace, we provided training to our hourly workforce at every operation on topics such as bullying, bystander intervention and education on overall mental wellness to ensure each employee feels respected and included at work. Employee Development We periodically solicit feedback on each member of our executive team through 360 assessments.
In order to emphasize the importance of DEI in the workplace, we provided training to our hourly workforce at every operation on topics such as bullying and bystander intervention, as well as education on overall mental wellness to ensure each employee feels respected and included at work.
We conduct our business with a proactive focus on positively impacting the health, safety and socioeconomic status of our people and the communities in which we operate as well as the environment.
We conduct our business with a proactive focus on responsible practices to positively impact the health, safety and socioeconomic status of our people and the communities in which we operate and be good stewards of the environment.
We believe this feedback is important to maintaining a strong culture by effectively assessing leadership performance and development, increasing accountability, facilitating succession planning and identifying areas for improvement and change.
Employee Development We periodically solicit feedback on each member of our executive team through 360 assessments. We believe this feedback is important to maintaining a strong culture by effectively assessing leadership performance and development, increasing accountability, facilitating succession planning and identifying areas for improvement and change.
We then sell gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe. Our gold concentrate product from the Kensington mine is sold under a variety of agreements with a geographically diverse group of third-party smelters and traders, and the smelters and traders pay us for the metals recovered from the concentrates.
We then sell gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe. Our gold concentrate product from the Kensington mine is sold under a long term offtake agreement and is shipped to geographically diverse third-party smelters.
In the US and Canada approximately 21% of our workforce is non-white, up from 18% in 2020, Partnerships with organizations like the National Society of Black Engineers and Women in Mining at their U.S. university chapters are providing further avenues for recruiting diverse talent.
Partnerships with organizations like the National Society of Black Engineers (NSBE) and Women in Mining (WiM) at their U.S. university chapters are providing further avenues for recruiting diverse talent.
In-depth discussions occur multiple times per year in meetings of the Board, Compensation and Leadership Development Committee and Nominating and Corporate Governance Committee, including in executive sessions to foster candid conversations.
In-depth discussions occur multiple times per year in meetings of the Board, Compensation and Leadership Development Committee and Nominating and Corporate Governance Committee, including in executive sessions to foster candid conversations. Directors have regular and direct exposure to senior leadership and high-potential employees during Board and committee meetings and through other informal meetings and events held during the year.
Coeur Alaska is now working on supplemental permit requirements following this significant milestone. • The Wharf open pit heap leach gold mine located near Lead, South Dakota, which was acquired by Coeur in 2015. In addition, the Company operates the Silvertip underground silver-zinc-lead exploration project located in northern British Columbia, Canada, which was acquired by Coeur in 2017.
Coeur Alaska is now working on a multi-year exploration and underground development plan including obtaining supplemental permit requirements following this significant milestone. • The Wharf open pit heap leach gold mine located near Lead, South Dakota, which was acquired by Coeur in 2015.
Comprehensive environmental management plans in conjunction with topic-specific plans, such as waste management and storm water protection, at each site provide guidance on how to implement our environmental initiatives and meet or exceed regulatory standards. We recognize that the climate is changing, which may adversely affect the environment, our business and the communities where we operate over the long-term.
Comprehensive environmental management plans, in conjunction with topic-specific plans, such as waste management and water resource protection, at each site provide guidance on how to implement our environmental initiatives and meet or exceed regulatory standards.
Technical Report Summaries and Qualified Persons The scientific and technical information concerning our mineral projects in this Form 10-K have been reviewed and approved by “qualified persons” under S-K 1300, including our Director, Technical Services, Christopher Pascoe.
Therefore, investors are cautioned not to assume that all or any part of inferred resources exist, or that they can be mined economically. 8 Technical Report Summaries and Qualified Persons The scientific and technical information concerning our mineral projects in this Form 10-K have been reviewed and approved by “qualified persons” under S-K 1300, including our Senior Director, Technical Services, Christopher Pascoe.
New in 2022, we have expanded paid parental and primary caregiver leave for US employees. In addition, we have engaged a third-party mental health care provider for innovative care and counseling resources throughout our footprint.
In 2022, we expanded paid parental and primary caregiver leave for US employees. In addition, we have engaged a third-party mental health care provider for innovative care and counseling resources throughout our footprint. This resource leverages technology and clinical best practices to assist our employees and their families gain fast access to highly effective quality care when needed most.
The results of the assessment confirmed our belief that we have an ethical, safe, engaged, and proud workforce and also highlighted areas for improvement that are now being addressed.
The results of the assessment confirmed our belief that we have an ethical, safe, engaged, and proud workforce and also highlighted areas for improvement that are now being addressed. Recruitment We seek to recruit and retain employees at all levels who embody our purpose statement, We Pursue a Higher Standard , through safe and ethical conduct.
We are also developing a Total Worker Health program, which is expected to be implemented by the end of 2023, that integrates protection from work-related safety and health hazards with promotion of injury and illness-prevention efforts to advance worker well-being both physically and mentally.
We also implemented a Total Worker Health program in 2023, that integrates protection from work-related safety and health hazards with promotion of injury and illness-prevention efforts to advance worker well-being both physically and mentally. RESPONSIBILITY At Coeur, we strive for best-in-class environmental performance while meeting the needs of today and respecting the needs of future generations.
Directors have regular and direct exposure to senior leadership and high-potential employees during Board and committee meetings and through other informal meetings and events held during the year. 6 Local Hire Investing in local communities extends beyond financial support. Since 2018, we have hired an average of 60% of our new hires from local communities.
Local Hire Investing in local communities extends beyond financial support. Since 2018, we have hired an average of 60% of our new hires from local communities.
RESPONSIBILITY At Coeur, we strive for best-in-class environmental performance while meeting the needs of today and respecting the needs of future generations. As a precious metals producer, we have the unique opportunity to supply the raw materials that play a key role in the clean energy transition.
As a precious metals producer, we have the unique opportunity to supply the raw materials that play a key role in the clean energy transition. We work to protect our environment through an approach of responsible production and a focus on best practices.
Military personnel last year. Fifty percent of our Board members have indicated that they are diverse, 12% of our employees are female, up from 10% in 2020. While we continue to work to increase our overall female population, over 60% of our female employees are supervisor or higher-level positions.
While we continue to work to increase our overall female population, over 60% of our female employees are supervisor or higher-level positions. In the US and Canada approximately 23% of our workforce is non-white, up from 18% in 2020.
Approximately 65% of the employees of Coeur Mexicana are represented by a collective bargaining agreement. Culture Assessment We are focused on regular evaluation of our culture. In 2019 and again in 2021, we invited all employees to participate in a culture assessment by completing an anonymous survey. Employee participation in 2021 was over 93%, which exceeded industry benchmarks.
In 2023, we invited all employees to participate in our culture assessment by completing an anonymous survey. Employee participation in 2023 was 84%, which exceeded industry benchmarks. Feedback was reviewed by the management team and our Board of Directors (our “Board”).
We have also created a series of partnership programs in local communities to provide internships, scholarships, and apprenticeships to build a pipeline of potential employees in the next generation. We have maintained an average employee age of 40 years old since 2018 by focusing on building our bench strength and increasing our under 40 population to 34% of our workforce.
Our strong culture of teamwork and our reputation as a responsible company and an engaged community member motivates new employee referrals. We have also created a series of partnership programs in local communities to provide internships, scholarships, and apprenticeships to build a pipeline of potential employees in the next generation.
Diversity & Inclusion Our President & CEO, Mitchell Krebs, was the first precious metals mining CEO to sign the CEO ACTION for Diversity & Inclusion pledge. This pledge highlights Coeur’s continuing commitment to fostering a diverse, equitable and inclusive workforce, evidenced by programs such as Coeur Heroes , which provided over 80 career opportunities to current and former U.S.
This pledge highlights Coeur’s continuing commitment to fostering a diverse, equitable and inclusive workforce, evidenced by programs such as Coeur Heroes , which provided over 80 career opportunities to current and former U.S. Military personnel last year. Fifty percent of our Board members have indicated that they are diverse, 12% of our employees are female, up from 10% in 2020.
Silvertip commenced commercial production ramp up in 2018. In February 2020, we announced a suspension of mining and processing activities at Silvertip.
In addition, the Company operates the Silvertip underground silver-zinc-lead exploration project located in northern British Columbia, Canada, which was acquired by Coeur in 2017. Silvertip commenced commercial production ramp up in 2018. In February 2020, the Company announced a suspension of mining and processing activities at Silvertip.
In 2022, we were proudly named one of Crain’s Chicago’s ‘Best Places to Work.’ At December 31, 2022, we had approximately 2,107 employees (1,091 in the U.S., 74 in Canada and 942 in Mexico) and 1,072 people were working as contractors in support of 5 Coeur’s operations.
At December 31, 2023, we had approximately 2,074 employees (1,097 in the U.S., 68 in Canada and 909 in Mexico) and over 600 people were working as contractors in support of Coeur’s operations. 5 Culture Assessment We are focused on regular evaluation of our culture.
Removed
The Company has interests in other precious metals exploration projects throughout North America, other mineral interests, strategic equity investments, among other items, which are included in “Other” for segment reporting purposes. The Company sold the La Preciosa project in the first quarter of 2022 and the Crown and Sterling projects in the fourth quarter of 2022.
Added
We have maintained an average employee age of 40 years old since 2018 by focusing on building our bench strength and increasing our under 40 population to 33% of our workforce. Diversity & Inclusion Our President & CEO, Mitchell Krebs, was the first precious metals mining CEO to sign the CEO ACTION for Diversity & Inclusion pledge.
Removed
Specific action plans taken in 2022 included diversity, equity and inclusion (“DEI”) training forums with hourly employees, bolstered communications through written and in-person meetings, and implementation of a career progression ladder to provide guidelines for employees’ skill development. The organization will be surveyed again in 2023.
Added
We recognize changes in stakeholder expectations related to various environmental, social and governance issues, including risks and opportunities related to climate change and greenhouse gas (“GHG”) emissions, biodiversity, and tailings. To that end, We Pursue a Higher Standard by expanding our governance and associated management systems and programs against best practices for material topics.
Removed
Recruitment We seek to recruit and retain employees at all levels who embody our purpose statement, We Pursue a Higher Standard , through safe and ethical conduct. Our strong culture of teamwork and our reputation as a responsible company and an engaged community member motivates new employee referrals.
Removed
This resource leverages technology and clinical best practices to assist our employees and their families gain fast access to highly effective quality care when needed most.
Removed
To that end, we are assessing the extent of these risks and potential opportunities and are taking action to manage our climate-related risks as well as the potential impact we have on climate.
Removed
Information contained on our website is not a part of this report.
Removed
Therefore, 8 investors are cautioned not to assume that all or any part of inferred resources exist, or that they can be mined legally or economically.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

93 edited+17 added−5 removed136 unchanged
Biggest changeIn connection with these dispositions, the Company has provided representations and warranties and indemnities customary for transactions of these types. There may be a risk that the Company may incur liability in the future associated with assets it no longer owns or in which it has a reduced interest.
Biggest changeThere may be a risk that the Company may incur liability in the future associated with assets it no longer owns or in which it has a reduced interest. Significant investment risks and operational costs are associated with exploration and development activities. These risks and costs may result in lower economic returns and may adversely affect our business.
While the Company believes that its mineral reserve and resource estimates are developed using well-established practices and with appropriate controls, mineral reserve and mineral resource estimation is an imprecise and subjective process. The accuracy of these estimates is a function of the quality of available data and of engineering and geological interpretation, judgment and experience.
While the Company believes that its mineral reserve and mineral resource estimates are developed using well-established practices and with appropriate controls, mineral reserve and mineral resource estimation is an imprecise and subjective process. The accuracy of these estimates is a function of the quality of available data and of engineering and geological interpretation, judgment and experience.
Declines in the market prices of gold, silver, zinc or lead 10 may render mineral reserves and mineral resources containing relatively lower grades of mineralization uneconomic to exploit, and we may be required to reduce mineral reserve and mineral resource estimates, discontinue development or mining at one or more of our properties or write down assets as impaired.
Declines in the market prices of gold, silver, zinc or lead may render mineral reserves and mineral resources containing relatively lower grades of mineralization uneconomic to exploit, 10 and we may be required to reduce mineral reserve and mineral resource estimates, discontinue development or mining at one or more of our properties or write down assets as impaired.
Our operations outside the United States also expose us to economic and operational risks. Our operations outside the United States also expose us to economic and operational risks. Local economic conditions, as well as epidemics, pandemics or natural disasters, can cause shortages of skilled workers and supplies, increase costs and adversely affect the security of operations.
Our operations outside the United States also expose us to economic and operational risks. Local economic conditions, as well as epidemics, pandemics or natural disasters, can cause shortages of skilled workers and supplies, increase costs and adversely affect the security of operations.
In addition, higher incidences of criminal activity and violence in the area of some of our foreign operations, including drug cartel-related violence in Mexico, could adversely affect our ability to operate in an optimal fashion and may impose greater risks of extortion and theft and greater risks to our personnel, supply of goods and services to our operations and our property.
In addition, higher incidences of criminal activity and violence in the area of some of our foreign operations, including drug cartel-related violence in Mexico, could adversely affect our ability to operate in an optimal fashion and may impose greater risks of extortion and theft, greater risks to our personnel, and greater risks to the supply of goods and services to our operations and our property.
We sell silver and gold doré, gold concentrate, and silver concentrate in U.S. dollars, but we conduct operations outside the United States in local currency. Currency exchange movements could also adversely affect our results of operations. Our success depends on developing and maintaining relationships with local communities and other stakeholders.
We sell silver doré, gold doré, gold concentrate, and silver concentrate in U.S. dollars, but we conduct operations outside the United States in local currency. Currency exchange movements could also adversely affect our results of operations. Our success depends on developing and maintaining relationships with local communities and other stakeholders.
We have in the past and in the future may enter into price risk management contracts to protect against fluctuations in the price of gold and silver, foreign currency rates and changes in the prices of fuel and other input costs.
We have in the past, and may in the future, enter into price risk management contracts to protect against fluctuations in the price of gold and silver, foreign currency rates and changes in the prices of fuel and other input costs.
The loss of some or all water rights, ongoing litigation to enforce existing water rights, ongoing shortages of water to which we have rights and/or significantly higher costs to obtain sufficient quantities of water could result in our inability to maintain production at current or expected levels, require us to curtail or shut down mining operations and could prevent us from pursuing expansion or development opportunities, which could adversely affect our results of operations and financial condition.
The loss of some or all water rights, ongoing litigation to enforce existing water rights, ongoing shortages of water to which we have rights and/or significantly higher costs to obtain sufficient quantities of water could result in our inability to maintain production at current or expected levels, require us to curtail or shut down mining operations or could prevent us from pursuing expansion or development opportunities, which could adversely affect our results of operations and financial condition.
If we are unable to maintain our outstanding debt and financial ratios at levels acceptable to the credit rating agencies, or should our business prospects or financial results deteriorate, including as a result of declines in gold and silver prices or other factors beyond our control, our ratings could be downgraded by the rating agencies.
If we are unable to maintain our outstanding debt and financial ratios at levels acceptable to the credit rating agencies, or should our business prospects or financial results deteriorate, including as a result of declines in gold or silver prices or other factors beyond our control, our ratings could be downgraded by the rating agencies.
Mining activities are subject to extensive federal, state, local and foreign laws and regulations governing environmental protection, natural resources, prospecting, development, production, post-closure reclamation, taxes, labor standards and occupational health and safety laws and regulations, including mine safety, toxic substances and other matters. The costs associated with compliance with such laws and regulations are substantial.
Mining activities are subject to extensive federal, state, local and foreign laws and regulations governing environmental protection, natural resources, prospecting, development, production, post-closure reclamation, taxes, labor standards and occupational health and safety, including mine safety, toxic substances and other matters. The costs associated with compliance with such laws and regulations are substantial.
Any unexpected delays or costs associated with the permitting process could delay the development or impede the operation of a mine, which in turn could materially adversely affect our revenues and future growth.
Any unexpected delays or costs associated with the permitting process could impede or delay the development or operation of a mine, which in turn could materially adversely affect our revenues and future growth.
The validity of mining or exploration claims, concessions or rights, which constitute most of our property holdings, is often uncertain and may be contested.
The validity of exploration or mining claims, concessions or rights, which constitute most of our property holdings, is often uncertain and may be contested.
Although we have attempted to acquire satisfactory title to undeveloped properties, in accordance with mining industry practice we do not generally obtain title opinions until a decision is made to develop a property. As a result, some titles, particularly titles to undeveloped properties may be defective.
Although we have attempted to acquire satisfactory title to undeveloped properties, in accordance with mining industry practice, we do not generally obtain title opinions until a decision is made to develop a property. As a result, some titles may be defective, particularly titles to undeveloped properties.
Defective title to any of our exploration and mining claims, concessions or rights could result in litigation, insurance claims and potential losses affecting our business as a whole. There may be challenges to the title of any of the claims comprising our projects that, if successful, could impair development and operations.
Defective title to any of our exploration or mining claims, concessions or rights could result in litigation, insurance claims and potential losses affecting our business as a whole. There may be challenges to the title of any of the claims, concessions or rights comprising our projects that, if successful, could impair development and operations.
In addition to the above, any acquisition would be accompanied by risks, including: • a significant change in macroeconomic conditions, including commodity prices, treatment and refining charges or stock prices after we have committed to complete the transaction and established the purchase price or exchange ratio; • additional debt incurred or issued to fund some or all of acquisition consideration (as was the case with Silvertip and Wharf), resulting in increased interest expense and other borrowing costs; • issuance of equity securities as acquisition consideration (which occurred in the Lincoln Hill and Silvertip project acquisitions), resulting in dilution of our existing stockholders; • a material ore body may prove to be below our expectations; 12 • processing facilities may not operate as well as anticipated, and may require significant maintenance, downtime and capital investment, such as the mill at Silvertip; • difficulties integrating and assimilating the operations and personnel of any acquired companies and supporting expanded operations, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization; • difficulties or loss of social license to operate resulting from failure of efforts to establish positive relationships and/or agreements with local communities or local indigenous peoples; and • the acquired business or assets may have significant liabilities, such as environmental liabilities, or significant capital expenditures that we failed to discover or have underestimated.
In addition to the above, any acquisition would be accompanied by risks, including: • a significant change in macroeconomic conditions, including commodity prices, treatment and refining charges or stock prices after we have committed to complete the transaction and established the purchase price or exchange ratio; • additional debt incurred or issued to fund some or all of acquisition consideration (as was the case with Silvertip and Wharf), resulting in increased interest expense and other borrowing costs; 12 • issuance of equity securities as acquisition consideration (which occurred in the Lincoln Hill and Silvertip project acquisitions), resulting in dilution of our existing stockholders; • a material ore body may prove to be below our expectations; • processing facilities may not operate as well as anticipated, and may require significant maintenance, downtime and capital investment, such as the original mill at Silvertip; • difficulties integrating and assimilating the operations and personnel of any acquired companies and supporting expanded operations, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization; • difficulties or loss of social license to operate resulting from failure of efforts to establish positive relationships and/or agreements with local communities or local indigenous peoples; and • the acquired business or assets may have significant liabilities, such as environmental liabilities, or significant capital expenditures that we failed to discover or have underestimated.
Estimates and projections are made by our management and technical personnel and are qualified by, and subject to the assumptions contained or referred in the filing, release or presentation in which they are made, including assumptions about the availability, accessibility, sufficiency and quality of mineralization, recovery rates, our costs of production, the market prices of gold and silver, our ability to sustain and increase production levels, the ability to produce and sell marketable concentrates and doré and related treatment and refining charges, the sufficiency of our infrastructure, the performance of our personnel and equipment, our ability to maintain and obtain mining interests and permits, the state of government and community relations, and our 15 compliance with existing and future laws and regulations.
Estimates and projections are made by our management and technical personnel and are qualified by, and subject to the assumptions contained or referred in the filing, release or presentation in which they are made, including assumptions about the availability, accessibility, sufficiency and quality of mineralization, recovery rates, our costs of production, the market prices of gold and silver, our ability to sustain and increase production levels, the ability to produce and sell marketable concentrates and doré and related treatment and refining charges, the sufficiency of our infrastructure, the performance of our personnel and equipment, our ability to maintain and obtain mining interests and permits, the state of government and community relations, and our compliance with existing and future laws and regulations.
However, given the unpredictability of the timing, nature and scope of information or operational technology disruptions, we could potentially be subject to production downtimes, operational delays, operating accidents, the compromising of confidential or otherwise protected information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems and networks or financial losses from remedial actions, any of which could have a material adverse effect on cash flows, financial condition or results of operations.
However, given the unpredictability of the timing, nature and scope of information or operational technology disruptions, we could potentially be subject to production downtimes, operational delays, operating accidents, the compromising of confidential or otherwise protected information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems, equipment and networks or financial losses from remedial actions, any of which could have a material adverse effect on cash flows, financial condition or results of operations.
In the normal course of our business, we are required to obtain and renew governmental permits for exploration, operations and expansion of existing operations and for the development of new projects, such as the permits recently obtained for POA 11 at Rochester, POA 1 at Kensington and at Palmarejo to allow the deposit of future tailings into the legacy open pit rather than expand the current tailings impoundment facility.
In the normal course of our business, we are required to obtain and renew governmental permits for exploration, operations and expansion of existing operations and for the development of new projects, such as the permits recently obtained for the Rochester expansion, POA 1 at Kensington and at Palmarejo to allow the deposit of future tailings into the legacy open pit rather than expand the current tailings impoundment facility.
Even if mineral deposits are found, those deposits may be insufficient in quantity and quality to return a profit from production, or it may take a number of years until production is possible, during which time the economic viability of the project may change. Few properties that are explored are ultimately developed into producing mines.
Even if mineral deposits are found, those deposits may be insufficient in quantity or quality to return a profit from production, or it may take a number of years until production is possible, during which time the economic viability of the project may change. Few properties that are explored are ultimately developed into producing mines.
If decided adversely to us, these legal proceedings, or others that could be brought against us in the future, could have a material adverse effect on our financial position or prospects. We are currently engaged in litigation with a third party regarding the terms of a royalty impacting a portion of the Kensington mine property.
If decided 21 adversely to us, these legal proceedings, or others that could be brought against us in the future, could have a material adverse effect on our financial position or prospects. We are currently engaged in litigation with a third party regarding the terms of a royalty impacting a portion of the Kensington mine property.
We have used commercially reasonable efforts, in accordance with industry standards, to investigate our title or claims to our various properties, however, no assurance can be given that applicable governments will not revoke or significantly alter the conditions of the applicable exploration and mining claims, concessions or rights or that such exploration and mining claims, concessions or rights will not be challenged by third parties.
We have used commercially reasonable efforts, in accordance with industry standards, to investigate our title or claims to our various properties, however, no assurance can be given that applicable governments will not revoke or significantly alter the conditions of the applicable exploration or mining claims, concessions or rights or that such exploration or mining claims, concessions or rights will not be challenged by third parties.
We may be required to write down certain long-lived assets, due to metal prices, operational challenges or other factors. Such write- downs may adversely affect our results of operations and financial condition. We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360.
We may be required to write down certain long-lived assets, due to metal prices, operational challenges or other factors. Such write- downs may adversely affect our results of operations and financial condition. We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification Section 360.
We may be unable to continue to attract and retain skilled and experienced employees, which could have an adverse effect on our competitive position or adversely impact our results of operations or financial condition. Continuation of our mining operations is dependent on the availability of sufficient and affordable water supplies.
We may be unable to continue to attract and retain skilled and experienced employees, which could have an adverse effect on our competitive position or adversely impact our results of operations or financial condition. 17 Continuation of our mining operations is dependent on the availability of sufficient and affordable water supplies.
Any delay in obtaining a permit may require us to revise mine plans or curtail expected production, which could materially adversely affect 20 results of operations and cash flow. In addition, key permits and approvals may be revoked or suspended or may be changed in a manner that adversely affects our operations.
Any delay in obtaining a permit may require us to revise mine plans or curtail expected production, which could materially adversely affect results of operations and cash flow. In addition, key permits and approvals may be revoked or suspended or may be changed in a manner that adversely affects our operations.
Laws and regulations may be introduced in some jurisdictions in which 17 we operate which could also limit access to sufficient water resources, adversely affecting our existing operations or our expansion or development plans. We may not be able to recognize the benefits of deferred tax assets.
Laws and regulations may be introduced in some jurisdictions in which we operate which could also limit access to sufficient water resources, adversely affecting our existing operations or our expansion or development plans. We may not be able to recognize the benefits of deferred tax assets.
Exploration project items such as estimates of resources and reserves, metal recoveries and cash operating costs are to a large extent based upon the interpretation of geologic data, obtained from a limited number of drill holes and other sampling techniques, and feasibility studies.
Exploration project items such as estimates of mineral resources and mineral reserves, metal recoveries and cash operating costs are to a large extent based upon the interpretation of geologic data obtained from a limited number of drill holes and other sampling techniques and feasibility studies.
As a result, actual operating costs and economic returns of any and all exploration projects may materially differ from the costs and returns estimated, and accordingly, our financial condition, results of operations and cash flows may be negatively affected. The Company may be affected by global supply chain disruptions.
As a result, actual operating costs and economic returns of any and all exploration projects may materially differ from the costs and returns estimated, and accordingly, our financial condition, results of operations and cash flows may be negatively affected. 13 The Company may be affected by global supply chain disruptions.
The environmental standards that ultimately may be imposed at a mine site affect the cost of remediation and could exceed the financial accruals that we have made for such remediation. 19 The potential exposure may be significant and could have a material adverse effect on our financial condition and results of operations.
The environmental standards that ultimately may be imposed at a mine site affect the cost of remediation and could exceed the financial accruals that we have made for such remediation. The potential exposure may be significant and could have a material adverse effect on our financial condition and results of operations.
In addition, U.S. environmental conservation efforts could result in the withdrawal of certain federal lands from mineral entry under the Mining Law, which could have the effect of restricting our current or future planned activities involving our unpatented mining claims on the affected public lands.
In addition, U.S. environmental conservation efforts could result in the withdrawal of certain federal lands from mineral entry under relevant mining law, which could have the effect of restricting our current or future planned activities involving our unpatented mining claims on the affected public lands.
An ejido may sell or lease lands directly to a private entity. While we have agreements or are in the process of negotiating 21 agreements with the ejidos that impact all of our projects in Mexico, some of these agreements may be subject to renegotiation or legal challenges.
An ejido may sell or lease lands directly to a private entity. While we have agreements or are in the process of negotiating agreements with the ejidos that impact all of our projects in Mexico, some of these agreements may be subject to renegotiation or legal challenges.
It is difficult to predict whether proposed changes to tax laws in the jurisdictions where we operate will be passed and if passed, the impact of those changes on the Company. Any additional taxes imposed on us could adversely affect our financial condition.
It is difficult to predict whether proposed changes to tax laws in the jurisdictions where we 22 operate will be passed and if passed, the impact of those changes on the Company. Any additional taxes imposed on us could adversely affect our financial condition.
These conditions, including security concerns in certain communities surrounding the Palmarejo complex in 2022 impacting third party deliveries of supplies to Palmarejo, could adversely impact our operations and lead to lower productivity and higher costs, which would adversely affect results of operations and cash flows.
These conditions, including security concerns in certain communities surrounding the Palmarejo complex impacting third-party deliveries of supplies to Palmarejo, could adversely impact our operations and lead to lower productivity and higher costs, which would adversely affect results of operations and cash flows.
In addition, acts of civil disobedience are not uncommon in areas in Mexico where our operations or projects are located. In recent years, many mining companies have been the targets of actions to restrict their legally entitled access to 14 mining concessions or property.
In addition, acts of civil disobedience are not uncommon in areas of Mexico where our operations or projects are located. In recent years, many mining companies have been the targets of actions to restrict their legally entitled access to mining concessions or property.
Impairment, measured by comparing an asset’s carrying value to its fair value, must be recognized when the carrying value of the asset exceeds these cash flows. We conduct a review of the financial performance of our mines in connection with the preparation of our financial statements for each reported period and determine whether any triggering events are indicated.
Impairment, measured by comparing an asset’s carrying value to its fair value, must be recognized when the carrying value of the asset exceeds these cash flows. We conduct a review of the financial performance of our mines in connection with the preparation of our financial statements for each reporting period and determine whether any triggering events are indicated.
Moreover, governmental authorities and private parties may bring lawsuits based upon damage to property and injury to persons resulting from the environmental, health and safety impacts of prior and current operations, including operations conducted by other mining companies many years ago at sites located on properties that we currently or formerly owned.
Moreover, governmental authorities and private parties may bring lawsuits based upon damage to property and injury to persons resulting from the environmental, health and safety impacts of prior and current operations, including operations conducted by other mining companies many years ago at sites located on properties that we currently or previously owned.
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 unfavorable Mexican court decisions, the Company determined to write down the carrying value of the VAT receivable of $26.0 million at September 2021.
While the Company believes that it remains legally entitled to be refunded the full amount of the unduly paid VAT receivable and intends to rigorously continue its recovery efforts, based on the continued failure to recover the receivable and unfavorable Mexican court decisions, the Company determined to write down the carrying value of the receivable of $26.0 million at September 2021.
Any additional write-downs of mining properties or other assets could adversely affect our results of operations and financial condition. Coeur is an international company and is exposed to political and social risks associated with its foreign operations. A significant portion of our revenues is generated by operations outside the United States.
Any additional write-downs of mining properties or other assets could adversely affect our results of operations and financial condition. Coeur is an international company and is exposed to political and social risks associated with its foreign operations. A significant portion of our revenues is generated by operations outside the United States, particularly Mexico.
We cannot ensure that alternative refiners or smelters would be available or offer comparable terms if the need for them were to arise or that it would not experience delays or disruptions in sales that would materially and adversely affect results of operations.
We cannot ensure that alternative refiners or smelters would be available, that they would offer comparable terms if the need for them were to arise, or that we would not experience delays or disruptions in sales that would materially and adversely affect results of operations.
ESG factors, including climate-related initiatives such as GHG emissions targets and climate risk management, are increasingly becoming a metric for institutional shareholders to review and assess the performance of the Company and a significant factor in their investment decisions.
ESG factors, including climate-related initiatives such as GHG emissions targets and climate risk management, are increasingly becoming a metric for institutional investors to review and assess the performance of the Company and a significant factor in their investment decisions.
There are significant hazards associated with mining activities, some of which may not be fully covered by insurance. The mining business is subject to risks and hazards, including environmental hazards, industrial accidents, the encountering of unusual or unexpected geological formations, cave-ins, flooding, earthquakes and periodic interruptions due to inclement or hazardous weather conditions or machine failure.
There are significant hazards associated with mining activities, some of which may not be fully covered by insurance. The mining business is subject to risks and hazards, including environmental hazards, industrial accidents, the encountering of unusual or unexpected geological formations, geotechnical failures, flooding, earthquakes and periodic interruptions due to inclement or hazardous weather conditions or machine failure.
Any such information is forward-looking. Neither our independent registered public accounting firm nor any other independent expert or outside party compiles or examines these forward-looking statements and, accordingly, do not express any opinion or any other form of assurance on these estimates and projections.
Neither our independent registered public accounting firm nor any other independent expert or outside party compiles or examines these forward-looking statements and, accordingly, do not express any opinion or any other form of assurance on these estimates and projections.
We determined to implement these contracts to provide for a minimum level of revenue from the sales of the covered gold ounces in order to mitigate the risk of not being able to fund all or a portion of the costs of several significant projects at existing operations such as POA 11 as well as provide greater certainty in our planning and budgeting process.
We determined to implement these contracts to provide for a minimum level of revenue from the sales of the covered gold and silver ounces in order to mitigate the risk of not being able to fund all or a portion of the costs of several significant projects at existing operations such as the Rochester expansion as well as provide greater certainty in our planning and budgeting process.
To the extent the COVID-19 or any other pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section as well as those contained in the 2021 10-K, such as those relating to our operations and indebtedness and financing.
To the extent the COVID-19 or any other pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section, such as those relating to our operations and indebtedness and financing.
Various measures have been implemented to manage our risks related to information technology systems and network disruptions.
Various measures have been implemented to manage our risks related to information technology, operational technology and network disruptions.
The construction services related to POA 11 are being performed by contractors, which creates a risk of delays or additional costs to the project resulting from, among other factors: inability to negotiate contracts with favorable pricing and terms; delays in performance of the services; failure of a contractor to comply with applicable laws and regulations; termination of a contract by a contractor before completion of the services; failure by a contractor to obtain necessary equipment or materials; mismanagement by a contractor of its workforce; and insolvency or other financial difficulty encountered by a contractor which results in a delay in services or termination of a contract with the contractor.
Construction services performed by contractors create a risk of delays or additional costs resulting from, among other factors: inability to negotiate contracts with favorable pricing and terms; delays in performance of the services; failure of a contractor to comply with applicable laws and regulations; termination of a contract by a contractor before completion of the services; failure by a contractor to obtain necessary equipment or materials; mismanagement by a contractor of its workforce; and insolvency or other financial difficulty encountered by a contractor which results in a delay in services or termination of a contract with the contractor.
RISKS RELATED TO INDEBTEDNESS AND FINANCING Our future operating performance may not generate cash flows sufficient to meet debt payment obligations. As of December 31, 2022, we had approximately $515.9 million of outstanding indebtedness. Our ability to make scheduled debt payments on outstanding indebtedness will depend on future results of operations and cash flows.
RISKS RELATED TO INDEBTEDNESS AND FINANCING Our future operating performance may not generate cash flows sufficient to meet debt payment obligations. As of December 31, 2023, we had approximately $545.3 million of outstanding indebtedness. Our ability to make scheduled debt payments on outstanding indebtedness will depend on future results of operations and cash flows.
In addition, exploration projects, such as the Silvertip or Lincoln Hill projects may have little or no operating history upon which to base estimates of future operating costs and capital requirements.
In addition, exploration projects such as Silvertip may have little or no relevant operating history upon which to base estimates of future operating costs and capital requirements.
Most recently, the Russian invasion of Ukraine has resulted in losses of life, displacement of people, and 13 political and economic disruptions on a global scale. There may be unforeseen impacts from these events globally on commodity prices, liquidity and credit or supply chains, and the Company continues to monitor them closely.
Recently, the Russian invasion of Ukraine and the Israel-Hamas conflict have resulted in losses of life, displacement of people, and political and economic disruptions on a global scale. There may be unforeseen impacts from these events globally on commodity prices, liquidity and credit or supply chains, and the Company continues to monitor them closely.
As an example, as disclosed in Note 19 -- 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 international arbitration.
As an example, as disclosed in Note 18 -- Commitments and Contingencies to the Consolidated Financial Statements, we are currently engaged in efforts to recover amounts unduly paid to the Mexican government that are owed to Coeur associated with Coeur Mexicana’s prior royalty agreement, including through international arbitration.
The price of our common stock increased by 13% and decreased by 6% during the same periods. The trading volume for shares of our common stock also increased significantly during this period.
The price of our common stock increased by 4% and decreased by 5% during the same periods. The trading volume for shares of our common stock also increased significantly during this period.
The Company may face supply chain disruptions as a result of macroeconomic matters outside of the Company’s control or ability to mitigate, such as natural disasters, transportation disruptions, economic instability, and global pandemics, among others.
The Company may face supply chain disruptions as a result of matters outside of the Company’s control or ability to mitigate, such as natural disasters, transportation disruptions, economic instability, geopolitical unrest, civil or international hostilities and global pandemics, among others.
Prices for these input commodities are volatile and can fluctuate due to conditions that are difficult to predict, including global competition for resources, inflation (as was the case during 2022), currency fluctuations, consumer or industrial demand and other factors.
Prices for these input commodities are volatile and can fluctuate due to conditions that are difficult to predict, including global competition for resources, inflation, currency fluctuations, consumer or industrial demand and other factors.
We are subject to litigation and may be subject to additional litigation in the future. We are currently, and may in the future become, subject to other litigation, arbitration (including the current NAFTA arbitration matter involving recovery of Mexican VAT) or proceedings with other parties.
We are subject to litigation and may be subject to additional litigation in the future. We are currently, and may in the future become, subject to other litigation, arbitration (including the current NAFTA arbitration matter involving recovery of amounts unduly paid as VAT in Mexico) or proceedings with other parties.
Acceleration of any debt could result in cross-defaults under our other debt instruments. Our inability to meet any of these covenants may also result in a lender requiring us to agree to additional restrictive covenants which may, among other things, limit our ability to fund our existing operations or incur additional indebtedness.
Our inability to meet any of these covenants may also result in a lender requiring us to agree to additional restrictive covenants which may, among other things, limit our ability to fund our existing operations or incur additional indebtedness.
These covenants, among other things: • limit our ability to obtain additional financing, repurchase outstanding equity or issue debt securities; • require us to meet certain financial covenants including a senior secured leverage ratio, a consolidated net leverage ratio and a consolidated interest coverage ratio; • require a portion of our cash flows to be dedicated to debt service payments instead of other purposes, which reduces the amount of cash flows available for working capital, capital expenditures, acquisitions and other general corporate purposes; • limit our ability to sell, transfer or otherwise dispose of assets, enter into transactions with and invest capital in affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, consolidate, amalgamate, merge or sell all or substantially all of our assets; • increase our vulnerability to general adverse economic and industry conditions; • limit our flexibility in planning for and reacting to changes in the industry in which we compete; and • place us at a disadvantage compared to other, less leveraged competitors. 18 A breach of any of these covenants could result in an event of default under the applicable agreement governing our outstanding indebtedness that, if not cured or waived, could cause all amounts outstanding with respect to the debt to be due and payable immediately.
These covenants, among other things: 18 • limit our ability to obtain additional financing, repurchase outstanding equity or issue debt securities; • require us to meet certain financial covenants including a senior secured leverage ratio, a consolidated net leverage ratio and a consolidated interest coverage ratio; • require a portion of our cash flows to be dedicated to debt service payments instead of other purposes, which reduces the amount of cash flows available for working capital, capital expenditures, acquisitions and other general corporate purposes; • limit our ability to sell, transfer or otherwise dispose of assets, enter into transactions with and invest capital in affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, consolidate, amalgamate, merge or sell all or substantially all of our assets; • increase our vulnerability to general adverse economic and industry conditions; • limit our flexibility in planning for and reacting to changes in the industry in which we compete; and • place us at a disadvantage compared to other, less leveraged competitors.
Our plans include several significant projects to construct or upgrade mining and processing facilities at our existing mining operations or exploration properties, including the POA 11 expansion project at Rochester and the POA 1 planned mine life extension at Kensington, and future plans to develop the Silvertip and Lincoln Hill projects.
Our plans include several significant projects to construct or upgrade mining and processing facilities at our existing mining operations or exploration properties, including the Rochester expansion project now undergoing commissioning and ramp-up, and the POA 1 planned mine life extension at Kensington, and future plans to develop the Silvertip exploration project.
Additionally, the jurisdictions in which we operate have and may in the future continue to encounter financial difficulties resulting from one or both of lower tax revenue and new and increased costs related to continuing to manage COVID-19 or remedy its impact.
Additionally, the jurisdictions in which we operate have and may in the future continue to encounter financial difficulties resulting from one or both of lower tax revenue and new and increased costs related to continuing to manage or remedy the impacts of COVID-19 or other pandemics or public health threats.
For example, in Nevada, where the Rochester mine and Lincoln Hill project are located, in response to a significant loss of tourism and gaming revenue during 2020, in June 2021 the Governor signed into law a new excise tax on gross proceeds derived from mining gold and silver.
For example, in Nevada, where the Rochester mine and Lincoln Hill project are located, in response to a significant loss of tourism and gaming revenue during 2020, in June 2021, the Governor signed into law a new excise tax on gross proceeds derived from mining gold and silver. In 2023, an inter-agency working group led by the U.S.
Our ability to pay dividends will be subject to our future earnings, capital requirements and financial condition, as well as our compliance with covenants related to existing or future indebtedness and would only be declared in the discretion of our Board of Directors. 22
Our ability to pay dividends will be subject to our future earnings, capital requirements and financial condition, as well as our compliance with covenants related to existing or future indebtedness and would only be declared in the discretion of our Board of Directors. 23 Item 1B. Unresolved Staff Comments None.
We believe we have established ourselves as a leader among peers in ESG and 16 continued to advance our ESG initiatives in 2022, including publishing our 2021 ESG Report, which included specific, objective goals to continue to improve our industry leading safety record, reduce the net intensity of our GHG emissions across the Company, build on our commitment to Diversity, Equity and Inclusion and protect critical habitat.
We believe we have established ourselves as a leader among peers in ESG and continued to advance our ESG initiatives as highlighted in our 2022 ESG Report, which included specific, objective goals to continue to improve our industry-leading safety record, continue reducing the net intensity of our GHG emissions across the Company, advance our commitment to Diversity, Equity and Inclusion, strengthen community relations and protect critical habitat.
Any transactions that we contemplate or pursue would involve risks and uncertainties and would be subject to competition from other mining companies. There can be no assurance with respect to the timing, likelihood or business effect of any possible transaction.
We regularly evaluate and engage in discussions or negotiations regarding acquisition opportunities. Any transactions that we contemplate or pursue would involve risks and uncertainties and would be subject to competition from other mining companies. There can be no assurance with respect to the timing, likelihood or business effect of any possible transaction.
Waste rock in the form of tailings generated as a by-product of processed ore is produced at the Kensington and Palmarejo Mines. We place tailings into engineered containments, underground as structural backfill, and as a dry stack material.
Waste rock in the form of tailings generated as a by-product of processed ore is produced at the Kensington and Palmarejo Mines. We place tailings into engineered containments, underground as structural backfill, and as thickened tailing, into a former open pit.
An increase in the cost, or decrease in the availability, of input commodities, labor, or equipment, due to factors beyond the Company’s control such as a pandemic or a similar public health threat, may affect the timely conduct and cost of our operations and development projects.
An increase in the cost, or decrease in the availability, of input commodities, labor, or equipment, due to factors beyond the Company’s control may affect the timely conduct and cost of our operations and development projects.
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.
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, address aggressive or punitive tax audit assessments including through litigation, 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. 14 Our operations outside the United States also expose us to economic and operational risks.
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.
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, aggressive or punitive tax audits, policy-driven interference with or moratoriums on processing of permit applications or granting water or mineral concessions, erection of trade barriers, including tariffs and duties, claims by governmental entities or indigenous communities, changes to mining and related laws impacting current and future operations, expropriation or nationalization of property and other risks arising out of foreign sovereignty over areas in which our operations are conducted.
Unprofitable acquisitions, or additional liabilities, indebtedness or issuances of securities in connection with such acquisitions or any future mine development, may negatively affect our results of operations. The Company recently sold its interests in the Crown, Sterling and La Preciosa projects.
Unprofitable acquisitions, or additional liabilities, indebtedness or issuances of securities in connection with such acquisitions or any future mine development, may negatively affect our results of operations. The Company recently sold its interests in the Crown, Sterling and La Preciosa projects. In connection with these dispositions, the Company has provided representations, warranties and indemnities customary for transactions of these types.
During the 12 months ended December 31, 2022, the high and low price for each commodity are set forth in the following table: Metal High Price for 2022 Date Low Price for 2022 Date Gold (per ounce) $2,039 March 8, 2022 $1,618 September 28, 2022 Silver (per ounce) $26.18 March 9, 2022 $17.77 September 1, 2022 Gold and silver prices are affected by many factors beyond the Company’s control, including U.S. dollar strength or weakness, speculation, global currency values, global and regional demand and production, political and economic conditions and other factors.
During the 12 months ended December 31, 2023, the high and low price for each commodity are set forth in the following table: Metal High Price for 2023 Date Low Price for 2023 Date Gold (per ounce) $2,078 December 28, 2023 $1,809 February 27, 2023 Silver (per ounce) $26.03 April 14, 2023 $20.09 March 10, 2023 Gold and silver prices are affected by many factors beyond the Company’s control, including U.S. dollar strength or weakness, speculation, global currency values, global and regional demand and production, political and economic conditions and other factors.
Geotechnical or hydrological failures could result in limited or restricted access to mine sites, suspension of operations, government investigations, lawsuits filed by parties who suffer injuries or property damage from such events, increased monitoring costs, remediation costs, loss of mineral reserves and resources and other impacts, which could have a material adverse effect on our results of operations and financial position as well as the value of our common stock.
Geotechnical or hydrological failures could result in limited or restricted access to mine sites, suspension of operations, government investigations, lawsuits filed by parties who suffer injuries or property damage from such events, increased monitoring costs, remediation costs, loss of mineral reserves and resources and other impacts, which could have a material adverse effect on our results of operations and financial position as well as the value of our common stock. 15 Our estimates of future production, costs, expenditures and financial results are imprecise, depend upon subjective factors, may not be realized in actual production and such estimates speak only as of their respective dates.
These contracts could include forward sales or purchase contracts, futures contracts, purchased or sold put and call options and other derivative instruments. We entered into price risk management contracts on 2021, 2022 and 2023 gold sales after a significant increase in gold prices during 2019 and 2020.
These contracts could include forward sales or purchase contracts, futures contracts, purchased or sold put and call options and other derivative instruments. We entered into price risk management contracts on 2021, 2022, 2023 and 2024 gold and silver sales.
We cannot guarantee that we will be able to successfully develop and start-up new mining properties, restart mining and processing activities at the Silvertip exploration property or acquire additional mining properties on favorable economic terms or at all. We regularly evaluate and engage in discussions or negotiations regarding acquisition opportunities.
In addition, we have acquired mining properties such as the Silvertip exploration property. We cannot guarantee that we will be able to successfully develop and start-up new mining properties, restart mining and processing activities at the Silvertip exploration property or acquire additional mining properties on favorable economic terms or at all.
Because mines have limited lives based on proven and probable mineral reserves, our ability to achieve significant additional growth in revenues and cash flows will depend upon our success in further developing and expanding existing properties and the opportunistic acquisition or development and start-up of exploration projects or new mining properties, such as the Silvertip exploration property and the Lincoln Hill project and related assets.
Because mines have limited lives based on proven and probable mineral reserves, our ability to achieve significant additional growth in revenues and cash flows will depend upon our success in further developing and expanding existing properties and the opportunistic acquisition or development and start-up of exploration projects or new mining properties, such 11 as the expected acquisition of mining concessions from a subsidiary of Fresnillo plc that are located adjacent to the existing Palmarejo site.
Any of these adjustments may adversely affect actual operating performance, production, financial condition, results of operations and cash flows. A significant delay or disruption in sales of concentrates or doré as a result of the unexpected disruption in services provided by smelters or refiners or other third parties could have a material adverse effect on our results of operations.
A significant delay or disruption in sales of concentrates or doré as a result of the unexpected disruption in services provided by smelters or refiners or other third parties could have a material adverse effect on our results of operations.
We are dependent upon information technology systems, which are subject to cybersecurity incidents, disruption, damage, failure and other risks associated with implementation and integration. Our information technology systems used in our operations are subject to disruption, damage or failure from a variety of sources, including, without limitation, computer viruses, security breaches, cyberattacks, natural disasters and defects in design.
The information technology and operational technology used in our business and operations are subject to disruption, damage or failure from a variety of sources, including, without limitation, computer viruses, security breaches, cyberattacks, natural disasters and defects in design.
For example, the price of silver increased 14% between September 28, 2022 and October 4, 2022, and then decreased by 13% on October 19, 2022.
For example, the price of silver increased 5% between April 5, 2023 and April 14, 2023, and then decreased by 5% on April 19, 2023.
The success and the ability to realize the anticipated benefits of any acquisition will depend upon our ability to effectively manage the integration, performance and operations of entities or properties we acquire.
There can be no assurance that the anticipated benefits of past acquisitions or any future acquisition, will be realized on the originally anticipated timeline or at all. The success and the ability to realize the anticipated benefits of any acquisition will depend upon our ability to effectively manage the integration, performance and operations of entities or properties we acquire.
Gold and silver prices are also affected by prevailing interest rates and returns on other asset classes, expectations of the future rate of inflation and governmental monetary decisions regarding central bank holdings.
Gold and silver prices are also affected by prevailing interest rates and returns on other asset classes, expectations of the future rate of inflation and governmental monetary decisions regarding central bank holdings. Because we derive all of our revenues from sales of these metals, our results of operations and cash flows will fluctuate as the prices of these metals change.
We could also be adversely affected by system or network disruptions if new or upgraded information technology systems are defective, not installed properly or not properly integrated into operations.
We may also incur large expenditures to recover data, to repair or replace networks or information or to protect against similar future events. 16 We could also be adversely affected by system or network disruptions if new or upgraded information technology systems are defective, not installed properly or not properly integrated into operations.
At Kensington, we completed development and commenced commercial production from a new deposit in 2018 and amended our operating permit to allow for an additional 10 years of mine life by providing for expanded tailings and waste rock storage, increased mill throughput, enhanced infrastructure and other benefits (“POA 1”).
Of note, we continue to use the existing refinery at Rochester to produce doré from both the old and the new Merrill-Crowe processing facility. At Kensington, we amended our operating permit to allow for an additional 10 years of mine life by providing for expanded tailings and waste rock storage, increased mill throughput, enhanced infrastructure and other benefits (“POA 1”).
As of December 31, 2022, contracts with respect to 130,500 ounces of gold were outstanding. See Note 15 — Derivative Financial Instruments in the notes to the Consolidated Financial Statements.
As of December 31, 2023, contracts with respect to 94,950 ounces of gold and 3.1 million ounces of silver were outstanding. See Note 14 — Derivative Financial Instruments & Hedging Activities in the notes to the Consolidated Financial Statements.
In addition, there have been recent proposals by elected officials in Mexico for even more significant increases in mining taxes, although it is unclear whether those proposals will result in legislation.
Interior Department recommended implementing a fee on certain domestic hardrock mineral production equivalent to 4-8% of net proceeds. In addition, there have been recent proposals by elected officials in Mexico for even more significant increases in mining taxes, although it is unclear whether those proposals will result in legislation.

… 35 more changes not shown on this page.

Item 2. Properties

Properties — owned and leased real estate

35 edited+18 added−4 removed42 unchanged
Biggest changeMINERAL RESOURCES Summary Gold Mineral Resources at End of the Fiscal Year Ended December 31, 2022 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo Mine, Mexico (4) 100% 4,030 0.066 267 16,704 0.054 907 20,734 0.057 1,174 5,633 0.067 380 United States Rochester Mine, USA (7) 100% 94,296 0.002 187 15,507 0.002 27 109,803 0.002 214 77,001 0.002 148 Kensington Mine, USA (5) 100% 2,412 0.276 665 1,309 0.293 384 3,721 0.282 1,049 1,246 0.282 351 Wharf Mine, USA (6) 100% 1,166 0.022 26 13,303 0.020 267 14,469 0.020 293 3,149 0.020 63 Lincoln Hill Project, USA (9) 100% 4,642 0.012 58 27,668 0.011 306 32,310 0.011 364 22,952 0.011 255 Wilco Project, USA (10) 100% — — — — — — — — — 25,736 0.021 531 Total Gold 106,546 0.011 1,203 74,491 0.025 1,891 181,037 0.017 3,094 135,717 0.013 1,728 Summary Silver Mineral Resources at End of the Fiscal Year Ended December 31, 2022 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo Mine, Mexico (4) 100% 4,030 4.39 17,689 16,704 3.42 57,062 20,734 3.61 74,751 5,633 3.19 17,948 United States Rochester Mine, USA (7) 100% 94,296 0.33 31,452 15,507 0.34 5,332 109,803 0.33 36,784 77,001 0.34 26,151 Lincoln Hill Project, USA (9) 100% 4,642 0.34 1,592 27,668 0.31 8,655 32,310 0.32 10,247 22,952 0.36 8,163 Wilco Project, USA (10) 100% — — — — — — — — — 25,736 0.13 3,346 Canada Silvertip Mine, Canada (8) 100% 680 11.46 7,798 6,375 8.21 52,317 7,055 8.52 60,115 1,873 7.70 14,414 Total Silver 103,648 0.56 58,531 66,254 1.86 123,366 169,902 1.07 181,897 133,195 0.53 70,022 Summary Zinc Mineral Resources at End of the Fiscal Year Ended December 31, 2022 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip Mine, Canada (8) 100% 680 9.9 % 134,462 6,375 9.7 % 1,230,898 7,055 9.7 % 1,365,360 1,873 10.1 % 378,088 Summary Lead Mineral Resources at End of the Fiscal Year Ended December 31, 2022 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip Mine, Canada (8) 100% 680 7.7 % 104,870 6,375 4.8 % 617,279 7,055 5.1 % 722,149 1,873 4.4 % 165,985 31 (1) Certain definitions: The term “resource” means that it is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quantity that there are reasonable prospects for economic extraction.
Biggest change(8) Rounding of short tons, grades, and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grades, and contained metal contents. 32 MINERAL RESOURCES Summary Gold Mineral Resources at End of the Fiscal Year Ended December 31, 2023 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo Mine, Mexico (4) 100% 5,674 0.070 396 15,500 0.060 926 21,174 0.062 1,322 4,207 0.091 381 United States Rochester Mine, USA (7) 100% 110,460 0.002 200 27,170 0.002 47 137,630 0.002 247 135,104 0.002 267 Kensington Mine, USA (5) 100% 1,653 0.289 477 1,278 0.268 342 2,931 0.279 819 1,567 0.248 388 Wharf Mine, USA (6) 100% 1,666 0.024 40 22,150 0.021 458 23,816 0.021 498 7,125 0.021 149 Lincoln Hill Project, USA (9) 100% 4,642 0.012 58 27,668 0.011 306 32,310 0.011 364 22,952 0.011 255 Wilco Project, USA (10) 100% — — — — — — — — — 25,736 0.021 531 Total Gold 124,095 0.009 1,171 93,766 0.022 2,079 217,861 0.015 3,250 196,691 0.010 1,971 Summary Silver Mineral Resources at End of the Fiscal Year Ended December 31, 2023 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo Mine, Mexico (4) 100% 5,674 4.56 25,875 15,500 3.85 59,701 21,174 4.04 85,576 4,207 4.50 18,933 United States Rochester Mine, USA (7) 100% 110,460 0.29 31,587 27,170 0.41 11,237 137,630 0.31 42,824 135,104 0.34 45,959 Lincoln Hill Project, USA (9) 100% 4,642 0.34 1,592 27,668 0.31 8,655 32,310 0.32 10,247 22,952 0.36 8,163 Wilco Project, USA (10) 100% — — — — — — — — — 25,736 0.13 3,346 Canada Silvertip Mine, Canada (8) 100% 734 10.56 7,749 6,418 7.78 49,919 7,152 8.06 57,668 2,345 6.86 16,084 Total Silver 121,510 0.55 66,803 76,756 1.69 129,512 198,266 0.99 196,315 190,344 0.49 92,485 Summary Zinc Mineral Resources at End of the Fiscal Year Ended December 31, 2023 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip Mine, Canada (8) 100% 734 9.9 % 145,703 6,418 10.7 % 1,371,074 7,152 10.6 % 1,516,777 2,345 10.3 % 481,791 Summary Lead Mineral Resources at End of the Fiscal Year Ended December 31, 2023 (1)(2)(3)(11) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Coeur Ownership Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip Mine, Canada (8) 100% 734 7.9 % 115,648 6,418 5.1 % 653,008 7,152 5.4 % 768,656 25,736 4.3 % 199,815 33 (1) Certain definitions: The term “resource” means that it is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quantity that there are reasonable prospects for economic extraction.
These internal controls include quality assurance and quality control (“QA/QC”) programs in the collection, analysis, verification, storage, reporting and use of drillhole, assay, metallurgical and other technical and scientific information, including the following: • Third-party fully certified labs are used for assays used in public disclosure or resource models ; • Drill programs include insertion of blank, duplicate, and certified reference materials; • QA/QC program with sufficient results for the analytical programs; 28 • All core and reverse-circulation samples have been cataloged and stored in secure and designated areas on company property; • Data is subject to validation, which includes checks on downhole surveys, collar coordinates, geological data, and assay data; • Prior to use in mineral resource or mineral reserve estimation, the selected data to support estimation are downloaded from the database into a project file and reviewed for improbable entries and high values; • Written procedures and guidelines are used to support estimation methods and approaches; • Completion of annual technical statements on each mineral resource and mineral reserve estimate by qualified persons.
These internal controls include quality assurance and quality control (“QA/QC”) programs in the collection, analysis, verification, storage, reporting and use of drillhole, assay, metallurgical and other technical and scientific information, including the following: • Third-party fully certified labs are used for assays used in public disclosure or resource models; • Drill programs include insertion of blank, duplicate, and certified reference materials; • QA/QC program with sufficient results for the analytical programs; • All core and reverse-circulation samples have been cataloged and stored in secure and designated areas on company property; • Data is subject to validation, which includes checks on downhole surveys, collar coordinates, geological data, and assay data; • Prior to use in mineral resource or mineral reserve estimation, the selected data to support estimation are downloaded from the database into a project file and reviewed for improbable entries and high values; • Written procedures and guidelines are used to support estimation methods and approaches; • Completion of annual technical statements on each mineral resource and mineral reserve estimate by qualified persons.
Stage: Exploration Location: Northern British Columbia, Canada (10 miles south of the Yukon Territory Border) Mine Type: Underground Metals/Mineralization: Silver, Zinc and Lead; carbonate-hosted massive sulfide deposit Product: Concentrate Ownership: 100% Land Position & Mineral Tenure: • Sixty-six (66) contiguous mineral claims containing approximately 39,375 hectares (97,298 acres) and two mining leases containing approximately 1,528 hectares (3,777 acres).
Stage: Exploration Location: Northern British Columbia, Canada (10 miles south of the Yukon Territory Border) Mine Type: Underground Metals/Mineralization: Silver, Zinc and Lead; carbonate-hosted massive sulfide deposit Product: Concentrate Ownership: 100% 29 Land Position & Mineral Tenure: • Sixty-six (66) contiguous mineral claims containing approximately 39,375 hectares (97,298 acres) and two mining leases containing approximately 1,528 hectares (3,777 acres).
Stage: Production Location: Lead, South Dakota, USA Mine Type: Open Pit Heap Leach Metals/Mineralization: Gold and Silver by-product; a structurally controlled disseminated gold deposit Product: Electrolytic Cathodic Sludge Ownership: 100% Land Position & Mineral Tenure • The Wharf Group is comprised of 362 patented lode claims, 35 government lots, 123 subdivided lots, and 59 federal unpatented lode claims.
Stage: Production Location: Lead, South Dakota, USA Mine Type: Open Pit Heap Leach Metals/Mineralization: Gold and Silver by-product; a structurally controlled disseminated gold deposit Product: Electrolytic Cathodic Sludge 28 Ownership: 100% Land Position & Mineral Tenure • The Wharf Group is comprised of 362 patented lode claims, 35 government lots, 123 subdivided lots, and 59 federal unpatented lode claims.
Stage: Production Location: State of Chihuahua, Northern Mexico Mine Type: Underground Metals/Mineralization: Silver and Gold, classified as epithermal deposits and are hosted in multiple veins, breccias, and fractures Product: Doré Ownership: 100% Land Position: 67,279 net acres Mineral Tenure: 71 wholly-owned mining concessions 24 Key Permit Conditions: Authorizations are in place that regulate typical life of mine functions, including production facilities and utilities, mining operations, tailings and waste rock storage, exploration, surface disturbance, land use, vegetation and change in soil use, air emissions, water use, and reclamation.
Stage: Production Location: State of Chihuahua, Northern Mexico Mine Type: Underground Metals/Mineralization: Silver and Gold, classified as epithermal deposits and are hosted in multiple veins, breccias, and fractures Product: Doré Ownership: 100% Land Position: 67,279 net acres Mineral Tenure: 71 wholly-owned mining concessions 25 Key Permit Conditions: Authorizations are in place that regulate typical life of mine functions, including production facilities and utilities, mining operations, tailings and waste rock storage, exploration, surface disturbance, land use, vegetation and change in soil use, air emissions, water use, and reclamation.
Silver and gold, consisting of silver sulfosalt minerals, argentite, silver-bearing tetrahedrite and minor native gold, are contained in zones of multiple quartz veins and veinlets (vein, vein swarms and stockworks) with variable amounts of pyrite Product: Doré Ownership: 100% Land Position & Mineral Tenure Coeur Rochester lands, including the Lincoln Hill and related assets, consist of approximately 43,441 net acres • 1,465 owned and 337 leased Federal unpatented lode claims and 6 owned federal unpatented placer claims, appropriating approximately 29,938 net acres of public land; • 23 patented lode claims, consisting of approximately 392 acres; • Interests owned in approximately 6,929 gross acres of additional real property; and • Certain rights in and to approximately 6,182 acres, held either through lease, letter agreement or license. 25 Key Permit Conditions: The Rochester Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving exploration, the open pit mines, heap leach pads, processing infrastructure, and all necessary support facilities.
Silver and gold, consisting of silver sulfosalt minerals, argentite, silver-bearing tetrahedrite and minor native gold, are contained in zones of multiple quartz veins and veinlets (vein, vein swarms and stockworks) with variable amounts of pyrite Product: Doré Ownership: 100% Land Position & Mineral Tenure Coeur Rochester lands, including the Lincoln Hill and related assets, consist of approximately 43,441 net acres • 1,465 owned and 347 leased Federal unpatented lode claims and 6 owned federal unpatented placer claims, appropriating approximately 29,942 net acres of public land; • 23 patented lode claims, consisting of approximately 392 acres; • Interests owned in approximately 6,929 gross acres of additional real property; and • Certain rights in and to approximately 6,182 acres, held either through lease, letter agreement or license. 26 Key Permit Conditions: The Rochester Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving exploration, the open pit mines, heap leach pads, processing infrastructure, and all necessary support facilities.
The environmental effects of the operation were comprehensively evaluated through the National Environmental Policy Act (NEPA) through Environmental Impact Statements. Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities.
The environmental effects of the operation were comprehensively evaluated through the National Environmental Policy Act (“NEPA”) through Environmental Impact Statements. Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities.
(2) Mineral Resource estimates are reported exclusive of mineral reserves, are current as of December 31, 2022, are reported using definitions in Item 1300 of Regulation S-K and were prepared by the company’s technical staff.
(2) Mineral Resource estimates are reported exclusive of mineral reserves, are current as of December 31, 2023, are reported using definitions in Item 1300 of Regulation S-K and were prepared by the Company’s technical staff.
(3) The Mineral Reserve estimates are current as of December 31, 2022, are reported using the definitions in Item 1300 of Regulation S-K and were prepared by the company’s technical staff.
(3) The Mineral Reserve estimates are current as of December 31, 2023, are reported using the definitions in Item 1300 of Regulation S-K and were prepared by the Company’s technical staff.
Product: Gold Concentrate Ownership: 100% Land Position & Mineral Tenure • The Kensington Group, totaling approximately 3,972 net acres, consists of 51 patented lode and patented mill site claims comprising approximately 766 net acres, 291 Federal unpatented lode claims covering approximately 3,141 net acres, and 13 State of Alaska mining claims covering approximately 95 net acres. • The Jualin Group, totaling approximately 8,366 net acres, is comprised of 23 patented lode and patented mill site claims covering approximately 388 net acres, 444 Federal unpatented lode claims and 75 Federal unpatented mill site claims appropriating approximately 7,814 net acres, a State of Alaska upland mining lease comprising approximately 682 acres, one State of Alaska mining claim comprising approximately three acres and four State-selected mining claims covering approximately 60 acres. • 14 of the 23 patented lode claims cover private surface estate only.
Product: Gold Concentrate Ownership: 100% 27 Land Position & Mineral Tenure • The Kensington Group, totaling approximately 3,972 net acres, consists of 51 patented lode and patented mill site claims comprising approximately 766 net acres, 298 Federal unpatented lode claims covering approximately 3,222 net acres, and 13 State of Alaska mining claims covering approximately 95 net acres. • The Jualin Group, totaling approximately 8,366 net acres, is comprised of 23 patented lode and patented mill site claims covering approximately 388 net acres, 444 Federal unpatented lode claims and 75 Federal unpatented mill site claims appropriating approximately 7,814 net acres, a State of Alaska upland mining lease comprising approximately 682 acres, one State of Alaska mining claim comprising approximately three acres and four State-selected mining claims covering approximately 60 acres. • 14 of the 23 patented lode claims cover private surface estate only.
(3) Assumed metal prices for 2022 estimated Mineral Resources were $25.00 per ounce of silver, $1,800 per ounce of gold, $1.30 per pound of zinc, $1.00 per pound of lead, unless otherwise noted.
(3) Assumed metal prices for 2023 estimated Mineral Resources were $25.00 per ounce of silver, $1,800 per ounce of gold, $1.30 per pound of zinc, $1.00 per pound of lead, unless otherwise noted.
Ore is mined using conventional open pit methods, with gold and silver recovered by heap leaching of crushed open-pit ore placed on pads located within the Rochester mining area. Rochester is currently undergoing an expansion under POA 11.
Ore is mined using conventional open pit methods, with gold and silver recovered by heap leaching of crushed open-pit ore placed on pads located within the Rochester mining area. Rochester is currently undergoing commissioning and ramp-up of an expansion under POA 11.
The centroid location for the Rochester site is 400600 E, 4460300 N and the centroid of Rochester pit is located at 4002045 E, 4460050 N and Nevada Packard open pit is located at 400600E, 4456675E. All coordinates are in Universal Transverse Mercator (WSG 84), Zone 11T.
The centroid location for the Rochester site is 400600 E, 4460300 N and the centroid of Rochester pit is located at 4002045 E, 4460050 N and Nevada Packard open pit is located at 400600 E, 4456675 E. All coordinates are in Universal Transverse Mercator (WSG 84), Zone 11T.
(2) Assumed metal prices for 2022 Mineral Reserves were $21.00 per ounce of silver, $1,600 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead. Except for Kensington at $1,700 per ounce of gold.
(2) Assumed metal prices for 2023 Mineral Reserves were $21.00 per ounce of silver, $1,600 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead, except for Kensington at $1,850 per ounce of gold.
(6) Mineral Resource estimates use the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; average metallurgical recovery assumption of 78.7% across all rock types; royalty burden of US$64/oz Au; pit slope angles that vary from 34–50º; mining costs of $2.39/ton mined, process costs of US$11.91/ton processed (includes general and administrative costs).
(6) Mineral Resource estimates use the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; average metallurgical recovery assumption of 79.0% across all rock types; royalty burden of US$72/oz Au; pit slope angles that vary from 34–50º; mining costs of $2.44/ton mined, process costs of US$11.71/ton processed (includes general and administrative costs).
(5) Mineral Reserve estimates are tabulated within a confining pit design and use the following input parameters: Rochester oxide variable recovery Au = 77.7-93.7% and Ag = 59.4%; Rochester sulfide variable recovery Au = 15.2-77.7% and Ag = 0.0-59.4%; with a net smelter return cutoff of $3.25/st oxide and US$3.35/st sulfide; Nevada Packard oxide recovery Au = 92.0% and Ag = 61.0%; with a net smelter return cutoff of $4.40/st for oxide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 43º over the life-of-mine.
(5) Mineral Reserve estimates are tabulated within a confining pit design and use the following input parameters: Rochester oxide variable recovery Au = 77.7–85.9% and Ag = 59.4-61.0%; Rochester sulfide variable recovery Au = 15.2–77.7% and Ag = 0.0–59.4%; with a net smelter return cutoff of $3.01/st oxide and US$3.11/st sulfide; Nevada Packard oxide recovery Au = 92.0% and Ag = 61.0%; with a net smelter return cutoff of $5.51/st for oxide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 48º over the life-of-mine.
(7) Mineral Resource estimates are tabulated within a confining pit shell and use the following input parameters: Rochester oxide variable recovery Au = 77.7-93.7% and Ag = 59.4%; Rochester sulfide variable recovery Au = 15.2-77.7% and Ag = 0.0-59.4%; with a net smelter return cutoff of $3.25/st oxide and US$3.35/st sulfide; Nevada Packard oxide recovery Au = 92.0% and Ag = 61.0%; with a net smelter return cutoff of $4.40/st for oxide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 43º over the life-of-mine.
(7) Mineral Resource estimates are tabulated within a confining pit shell and use the following input parameters: Rochester oxide variable recovery Au = 77.7–85.9% and Ag = 59.4%; Rochester sulfide variable recovery Au = 15.2–77.7% and Ag = 0.0–59.4%; with a net smelter return cutoff of $3.01/st oxide and US$3.11/st sulfide; Nevada Packard oxide recovery Au = 92.0% and Ag = 61.0%; with a net smelter return cutoff of $5.51/st for oxide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 48º over the life-of-mine.
Internal controls are discussed where required in the relevant chapters of the technical report summary. The following sub-sections summarize the types of procedures, protocols, guidance and controls that Coeur has in place for its exploration and mineral resource and reserve estimation efforts, and the type of risk assessments that are undertaken.
The following sub-sections summarize the types of procedures, protocols, guidance and controls that Coeur has in place for its exploration and mineral resource and reserve estimation efforts, and the type of risk assessments that are undertaken.
The expansion project includes the construction of a new leach pad, a crushing facility equipped with two high-pressure grinding roll units and a prescreen, a Merrill-Crowe process plant, and related infrastructure to support the extension of Rochester’s mine life and is expected to be completed in mid-2023.
The expansion project included the construction of a new leach pad, a crushing facility equipped with two high-pressure grinding roll units and a prescreen, a Merrill-Crowe process plant, and related infrastructure to support the extension of Rochester’s mine life. Commissioning and ramp-up are expected to be completed in the first half of 2024.
Coordinates for the project centroid are 0494796 E, 652068 N and the Kensington Portal is located at 0494796 E, 6530584 N. All coordinates are in Universal Transverse Mercator (NAD 1983), Zone 8V.
The mine is accessed by a horizontal tunnel and utilizes conventional and mechanized underground mining methods. Coordinates for the project centroid are 0494796 E, 652068 N and the Kensington Portal is located at 0494796 E, 6530584 N. All coordinates are in Universal Transverse Mercator (NAD 1983), Zone 8V.
OPERATING STATISTICS Palmarejo Rochester 2022 2021 2020 2022 2021 2020 Gold produced (oz.) 106,782 109,202 110,608 34,735 27,051 27,147 Silver produced (oz.) 6,708,689 6,820,589 6,269,206 3,061,924 3,158,017 3,174,529 Kensington Wharf 2022 2021 2020 2022 2021 2020 Gold produced (oz.) 109,061 121,140 124,867 79,768 91,136 93,056 Silvertip 2022 2021 2020 Silver produced (oz.) — — 139,287 Zinc produced (lb.) — — 2,459,756 Lead produced (lb.) — — 2,176,847 MINERAL RESERVES AND MINERAL RESOURCES Internal Controls The company’s internal controls are designed to provide reasonable assurance that information and processes utilized in assessing its exploration results as well as mineral resource and reserve estimation are reasonable and in line with industry best practices.
OPERATING STATISTICS Palmarejo Rochester 2023 2022 2021 2023 2022 2021 Gold produced (oz.) 100,605 106,782 109,202 38,775 34,735 27,051 Silver produced (oz.) 6,591,590 6,708,689 6,820,589 3,391,530 3,061,924 3,158,017 Kensington Wharf 2023 2022 2021 2023 2022 2021 Gold produced (oz.) 84,789 109,061 121,140 93,502 79,768 91,136 MINERAL RESERVES AND MINERAL RESOURCES Internal Controls The Company’s internal controls are designed to provide reasonable assurance that information and processes utilized in assessing its exploration results as well as mineral resource and reserve estimation are reasonable and in line with industry best practices.
(7) Mineral Reserve estimates use the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; average metallurgical recovery assumption of 79.1%; royalty burden of US$64/oz Au; pit slope angles that vary from 34–50º; mining costs of US$2.39/ton mined, process costs of US$11.91/ton processed (includes general and administrative costs). 30 (8) Rounding of short tons, grades, and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grades, and contained metal contents.
(7) Mineral Reserve estimates use the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; average metallurgical recovery assumption of 79.0%; royalty burden of US$64/oz Au; pit slope angles that vary from 34–50º; mining costs of US$2.44/ton mined, process costs of US$11.71/ton processed (includes general and administrative costs).
(4) Mineral Reserve estimates use the following key input parameters: assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 2.02–2.07 g/t AuEq and an incremental development cut-off grade of 1.05 g/t AuEq; metallurgical recovery assumption of 90.5% for gold and 82.5% for silver; mining dilution assumes 0.4-1.0 meter of hanging wall waste dilution; mining loss of 20% was applied; variable mining costs that range from US$44.74–US$47.13/tonne, surface haulage costs of US$4.01/tonne, process costs of US$29.17/tonne, general and administrative costs of US$12.56/tonne, and surface/auxiliary support costs of US$3.24/tonne.
(4) Mineral Reserve estimates use the following key input parameters: assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 2.11–2.97 g/t AuEq and an incremental development cut-off grade ranging from 1.16–1.55 g/t AuEq; metallurgical recovery assumption of 92.0% for gold and 83.0% for silver; mining dilution assumes 0.4–1.1 meter of hanging/foot wall waste dilution; mining loss of 15% was applied; variable mining costs that range from US$44.72–US$85.71/tonne, surface haulage costs of US$4.92/tonne, process costs of US$32.70/tonne, general and administrative costs of US$14.06/tonne, and surface/auxiliary support costs of US$3.18/tonne.
There are internal and external audit processes for mineral resource and mineral reserve estimation. Mineral resources and mineral reserves are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. See Risk Factors in Item 1A for additional information.
Mineral resources and mineral reserves are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable.
(4) Mineral Resource estimates use the following key input parameters: Assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 1.75-1.84 g/t AuEq; metallurgical recovery assumption of 90.5% for gold and 82.5% for silver; variable mining costs that range from US$42.50–US$47.13/tonne, surface haulage costs of US$4.01/tonne, process costs of US$29.17/tonne, general and administrative costs of US$12.56/tonne, and surface/auxiliary support costs of US$3.24/tonne.
(4) Mineral Resource estimates use the following key input parameters: Assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 1.87–2.64 g/t AuEq; metallurgical recovery assumption of 92.0% for gold and 83.0% for silver; variable mining costs that range from US$44.72–US$85.71/tonne, surface haulage costs of US$4.92/tonne, process costs of US$32.70/tonne, general and administrative costs of US$14.06/tonne, and surface/auxiliary support costs of US$3.18/tonne.
(“Coeur Alaska”), are located on the east side of the Lynn Canal about 45 miles north-northwest of Juneau, Alaska. The mine consists of the (i) Kensington Main deposit, (ii) Elmira, and (iii) other nearby deposits and exploration targets. The mine is accessed by a horizontal tunnel and utilizes conventional and mechanized underground mining methods.
USA (Alaska) — Kensington The Kensington underground gold mine and associated milling facilities, operated by our wholly-owned subsidiary, Coeur Alaska, Inc. (“Coeur Alaska”), are located on the east side of the Lynn Canal about 45 miles north-northwest of Juneau, Alaska. The mine consists of the (i) Kensington Main deposit, (ii) Elmira, and (iii) other nearby deposits and exploration targets.
(6) Mineral Reserve estimates use the following key input parameters: assumption of conventional underground mining; gold price of $1700/oz; reported above a gold cut-off grade of 0.133-0.135 oz/st Au; metallurgical recovery assumption of 94%; gold payability of 97.5%; mining dilution varies from 15-23%; mining loss of 5% was applied; variable mining costs that range from US$87.13–90.00/ton mined; process costs of US$54.38/ton processed; general and administrative costs of US$54.76/ton processed; and concentrate refining and shipping costs of US$88.39/oz sold.
(6) Mineral Reserve estimates use the following key input parameters: assumption of conventional underground mining; gold price of $1,850/oz; reported above a gold cut-off grade of 0.135 oz/st Au; metallurgical recovery assumption of 93.5%; gold payability of 97.5%; mining dilution of 20%; mining loss of 12% was applied; mining costs of US$103.67/ton mined; process costs of US$55.06/ton processed; general and administrative costs of US$55.37/ton processed; Sustaining capital US$4.50/ton processed; and concentrate refining and shipping costs of US$108.67/oz sold.
(5) Mineral Resource estimates use the following key input parameters: assumption of conventional longhole underground mining; reported above a variable gold cut-off grade that ranges from 0.125–0.191 oz/ton Au; metallurgical recovery assumption of 94%; gold payability of 97.5%, variable mining costs that range from US$87.13–175.48/ton mined; process costs of US$54.38/ton processed; general and administrative costs of US$54.76/ton processed; and concentrate refining and shipping costs of US$88.39/oz sold.
(5) Mineral Resource estimates use the following key input parameters: metal price of $2,000 per ounce gold, assumption of conventional longhole underground mining; reported above a variable gold cut-off grade of 0.124 oz/ton Au; metallurgical recovery assumption of 93.5%; gold payability of 97.5%, mining costs of US$103.67/ton mined; process costs of US$55.06/ton processed; general and administrative costs of US$55.37/ton processed; Sustaining capital US$4.50/ton processed; and concentrate refining and shipping costs of US$108.67/oz sold.
The mineral estate to these 14 patented lode claims is owned by the State of Alaska, the mineral rights to which are secured by a State of Alaska upland mining lease • The Company controls properties comprising the Jualin Group, under a lease agreement with Hyak Mining Company, which is valid until August 5, 2035 and thereafter, provided mining and production are actively occurring within and from the leased premises. 26 Key Permit Conditions: The Kensington Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving mine operations and production/processing facilities and infrastructure, tailings and waste rock storage, exploration, surface disturbance, air emissions, water use, marine transport, and reclamation.
Key Permit Conditions: The Kensington Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving mine operations and production/processing facilities and infrastructure, tailings and waste rock storage, exploration, surface disturbance, air emissions, water use, marine transport, and reclamation.
These technical statements include evaluation of modifying and technical factors, incorporate available reconciliation data, and are based on a cashflow analysis; and • Internal reviews of block models, mineral resources and mineral reserves using a “layered responsibility” approach with qualified person involvement at the site and corporate levels. 29 Development of our mineral resource and mineral reserve estimates use tools and processes such as mine design, scheduling and geostatistical tools that conform to industry best practices and are regularly reviewed and reconciled by internal and external parties.
These technical statements include evaluation of modifying and technical factors, incorporate available reconciliation data, and are based on a cashflow analysis; and • Internal reviews of block models, mineral resources and mineral reserves using a “layered responsibility” approach with Qualified Person involvement at the site and corporate levels. 30 Internal controls are discussed where required in the relevant chapters of the technical report summary.
(“Wharf”) and Golden Reward Mining Limited Partnership (“Golden Reward”), is located in the northern Black Hills of western South Dakota, approximately four miles southwest of the city of Lead, South Dakota. Coordinate for the project centroid are 44°20’03”N Latitude, 103°50’06”W Longitude and the Wharf Mine coordinates are 44°20’39”N Latitude, 103°51’02”W Longitude. All coordinates are in Universal Transverse Mercator (WSG 84).
USA (South Dakota) — Wharf The Wharf mine, operated by our wholly-owned subsidiaries, Wharf Resources (U.S.A.) Inc. (“Wharf”) and Golden Reward Mining Limited Partnership (“Golden Reward”), is located in the northern Black Hills of western South Dakota, approximately four miles southwest of the city of Lead, South Dakota.
Other: A portion of the Palmarejo complex is subject to a gold stream agreement with a subsidiary of Franco Nevada Corporation and related property encumbrances USA (Nevada) — Rochester The Rochester mine and associated heap leach facilities, operated by our wholly-owned subsidiary, Coeur Rochester, Inc.
Coeur Mexicana is subject to other royalty agreements for which there are no mineral resources or mineral reserves associated with them in the current life-of-mine plan. USA (Nevada) — Rochester The Rochester mine and associated heap leach facilities, operated by our wholly-owned subsidiary, Coeur Rochester, Inc.
Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities.
Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities. Other: • A security interest in the Wharf mine has been granted in favor of the lenders under the RCF. • Wharf is obligated to pay a royalty related to a mineral lease on 34 patented lode claims.
In total, the Silvertip mine covers an area of approximately 40,904 hectares (101,076 acres) Other: • Suspended operating activities in February 2020; ongoing exploration and technical work to evaluate and support a potential expansion and restart • Certain royalty interests have been granted with respect to the Silvertip property OTHER PROPERTIES The Company has interests in several other exploration-stage properties in North America, as well as leased or owned real property for office space.
In total, the Silvertip mine covers an area of approximately 40,904 hectares (101,076 acres) Other: • Suspended operating activities in February 2020; ongoing exploration and technical work to evaluate and support a potential expansion and restart • Silvertip is obligated to pay a 2.5% net smelter return royalty payable to the royalty holder on all mineral products produced from the Silvertip property, payable quarterly. • Silvertip is party to an agreement with the Kaska Nation which, among other things, provides for annual payments to the Kaska Nation calculated based on the financial performance of the Silvertip property and the average price of silver for the relevant calendar year.
Other: • A security interest in the Wharf mine has been granted in favor of the lenders under the RCF • Certain royalty interests have been granted with respect to the Wharf property 27 MINING PROJECTS Canada (British Columbia) — Silvertip The Silvertip silver-zinc-lead exploration property owned by our wholly-owned subsidiary, Coeur Silvertip Ltd.
This royalty encumbers the mineral estate, including the Precambrian Mineral Estate, of much of the lands held by Wharf. • Wharf is party to other royalty agreements for which there are no mineral resources or mineral reserves associated with them in the current life-of-mine plan EXPLORATION PROJECTS Canada (British Columbia) — Silvertip The Silvertip silver-zinc-lead exploration property owned by our wholly-owned subsidiary, Coeur Silvertip Ltd.
Removed
Other: • A security interest in the Rochester mine has been granted in favor of the lenders under the RCF (as defined below) • Certain royalty interests have been granted with respect to the Rochester property USA (Alaska) — Kensington The Kensington underground gold mine and associated milling facilities, operated by our wholly-owned subsidiary, Coeur Alaska, Inc.
Added
A permit to operate back-up generators during grid power interruptions was recently administratively revoked; however, we are appealing the revocation and also applying for a new permit. We have been granted the right to continue operating the back-up generators during the course of the appeal.
Removed
Other: • A security interest in the Kensington mine has been granted in favor of the lenders under the RCF • Certain royalty interests have been granted with respect to the Kensington property USA (South Dakota) — Wharf The Wharf mine, operated by our wholly-owned subsidiaries, Wharf Resources (U.S.A.) Inc.
Added
Other: Coeur Mexicana is obligated to sell 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.
Removed
Access is established by paved road with power supplied by a local power company.
Added
Other: • A security interest in the Rochester mine has been granted in favor of the lenders under the RCF (as defined below) • Coeur Rochester is obligated to pay a net smelters return of up to 5% to ASARCO, the prior owner, when the average quarterly market price of silver equals or exceeds $29.79 per ounce indexed for inflation, with the condition that the Rochester mine achieves positive cash flow for the applicable year.
Removed
MINERAL RESERVES Summary Gold Mineral Reserves at End of the Fiscal Year Ended December 31, 2022 (1)(2)(3)(8) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo (4) 100% 4,081 0.059 241 14,119 0.050 712 18,200 0.052 953 United States Rochester (5) 100% 425,748 0.003 1,079 38,001 0.002 93 463,749 0.003 1,172 Kensington (6) 100% 939 0.180 169 1,273 0.189 240 2,212 0.184 409 Wharf (7) 100% 6,379 0.031 199 27,328 0.026 709 33,707 0.027 908 Total Gold 437,147 0.004 1,688 80,721 0.022 1,754 517,868 0.007 3,442 Summary Silver Mineral Reserves at End of the Fiscal Year Ended December 31, 2022 (1)(2)(3)(8) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo (4) 100% 4,081 4.21 17,172 14,119 3.44 48,565 18,200 3.61 65,737 United States Rochester (5) 100% 425,748 0.39 166,172 38,001 0.36 13,803 463,749 0.39 179,975 Total Silver 429,829 0.43 183,344 52,120 1.20 62,368 481,949 0.51 245,712 (1) Certain definitions: The term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination.
Added
If cash flow is negative in any calendar year, the maximum royalty payable is $250,000. • Coeur Rochester is party to other royalty agreements for which there are no mineral resources or mineral reserves associated with them in the current life-of-mine plan.
Added
The mineral estate to these 14 patented lode claims is owned by the State of Alaska, the mineral rights to which are secured by a State of Alaska upland mining lease. • The Company controls properties comprising the Jualin Group, under a lease agreement with Hyak Mining Company, which is valid until August 5, 2035 and thereafter, provided mining and production are actively occurring within and from the leased premises.
Added
Other: • A security interest in the Kensington mine has been granted in favor of the lenders under the RCF. • Coeur Alaska is obligated to pay the royalty holder a scaled net smelter return royalty on 1 million troy ounces of gold production from certain deposits, after Coeur Alaska recoups the $32.5 million purchase price, plus construction and development expenditures and certain operating, exploration, and development costs.
Added
The royalty ranges from a rate of 1% at $400/oz gold prices to a maximum of 2.5% rate at gold prices above $475/oz. • Coeur Alaska is obligated to pay Hyak Mining Company (“Hyak”) annually, during the initial term of the mining lease, an advance minimum royalty of $231,000, which amount is adjusted every three years in accordance with changes in the Consumer Price Index as published by the U.S.
Added
Department of Commerce for all Urban Consumers, City of Anchorage, Alaska. If production occurs from the leased Hyak premises, a 5% net returns royalty on production as defined by the lease, is due, unless the amount of the net returns royalty is less than the adjusted advance minimum royalty.
Added
Coordinates for the project centroid are 44°20’03”N Latitude, 103°50’06”W Longitude and the Wharf Mine coordinates are 44°20’39”N Latitude, 103°51’02”W Longitude. All coordinates are in Universal Transverse Mercator (WSG 84). Access is established by paved road with power supplied by a local power company.
Added
During the term of the mineral lease, the lessors were also entitled to a royalty on production, if any, of 3% of the net smelter returns of all silver and gold ores, together with other ores and minerals.
Added
In addition, there is an advance minimum royalty due the lessors of $5,000 per year unless and until Wharf Resources identifies and publishes a reserve encompassing the leased premises, at which point the advance minimum royalty increases to $25,000 per year. • Wharf is obligated to pay a sliding scale production royalty of 0%-2% on the gross value of all gold in saleable form to Royal Gold, Inc.
Added
This royalty encumbers most of the lands comprising the Wharf, together with a small portion of the lands encompassing the Golden Reward, and wholly excludes the Precambrian Mineral Estate. Wharf is obligated to pay a 3% non-participating royalty on gold that is produced from ores mined and delivered to heap leach pads or recovered from tailings.
Added
OTHER PROPERTIES The Company has leased or owned real property for office space.
Added
Development of our mineral resource and mineral reserve estimates use tools and processes such as mine design, scheduling and geostatistical tools that conform to industry best practices and are regularly reviewed and reconciled by internal and external parties. There are internal and external audit processes for mineral resource and mineral reserve estimation.
Added
See Risk Factors in Item 1A for additional information. 31 MINERAL RESERVES Summary Gold Mineral Reserves at End of the Fiscal Year Ended December 31, 2023 (1)(2)(3)(8) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo (4) 100% 4,203 0.060 252 8,580 0.060 517 12,783 0.060 769 United States Rochester (5) 100% 465,919 0.002 1,135 44,524 0.002 104 510,443 0.002 1,239 Kensington (6) 100% 1,009 0.186 188 1,109 0.201 223 2,118 0.194 411 Wharf (7) 100% 5,931 0.032 188 21,318 0.027 575 27,249 0.028 763 Total Gold 477,062 0.004 1,763 75,531 0.019 1,419 552,593 0.006 3,182 Summary Silver Mineral Reserves at End of the Fiscal Year Ended December 31, 2023 (1)(2)(3)(8) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Coeur Ownership Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo (4) 100% 4,203 4.21 17,698 8,580 3.88 33,283 12,783 3.99 50,981 United States Rochester (5) 100% 465,919 0.38 177,472 44,524 0.35 15,413 510,443 0.38 192,885 Total Silver 470,122 0.42 195,170 53,104 0.92 48,696 523,226 0.47 243,866 (1) Certain definitions: The term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination.
Added
No assurances can be given that all mineral reserves will be mined, as mineralized material that may qualify as reserves under applicable standards by virtue of having positive economics may not generate attractive enough returns to be included in our mine plans, due to factors such as the impact of the gold stream at Palmarejo.
Added
As a result, we may elect not to mine portions of the mineralized material reported as reserves.
Added
In addition, no assurances can be given that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves or that inferred resources will be upgraded to measured or indicated resources.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+3 added−1 removed1 unchanged
Biggest changeOn February 20, 2023, there were 295,644,735 outstanding shares of the Company’s common stock which were held by approximately 1,112 stockholders of record. 33 STOCK PERFORMANCE CHART COMPARISON OF CUMULATIVE TOTAL RETURN AMONG COEUR MINING, S&P 500 INDEX AND PEER GROUP INDEX The following performance graph compares the performance of the Company’s common stock during the period beginning December 31, 2017 and ending December 31, 2022 to (i) S&P 500, (ii) a peer group consisting of the following companies: Alamos Gold Inc., B2Gold Corp., Centerra Gold Inc., Eldorado Gold Corporation, Endeavor Mining Corporation, First Majestic Silver Corp., Hecla Mining Company, Hochschild Mining plc, IAMGOLD Corporation, New Gold, Inc., OceanaGold Corporation, Pan American Silver Corporation, SSR Mining Inc., and Yamana Gold Inc.
Biggest changeThe issuance of the Shares was pursuant to the exemption from the registration requirements afforded by Section 3(a)(9) of the Securities Act of 1933, as amended. 35 STOCK PERFORMANCE CHART COMPARISON OF CUMULATIVE TOTAL RETURN AMONG COEUR MINING, S&P 500 INDEX AND PEER GROUP INDEX The following performance graph compares the performance of the Company’s common stock during the period beginning December 31, 2018 and ending December 31, 2023 to (i) S&P 500, (ii) a peer group consisting of the following companies: Alamos Gold Inc., B2Gold Corp., Centerra Gold Inc., Eldorado Gold Corporation, Endeavor Mining Corporation, First Majestic Silver Corp., Hecla Mining Company, Hochschild Mining plc, IAMGOLD Corporation, New Gold, Inc., OceanaGold Corporation, Pan American Silver Corporation, and SSR Mining Inc.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock is traded on the New York Stock Exchange under the ticker symbol CDE.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock is traded on the New York Stock Exchange under the ticker symbol CDE. On February 19, 2024, there were 386,264,324 outstanding shares of the Company’s common stock which were held by approximately 1,079 stockholders of record.
The Company formerly included Kirkland Lake Gold Ltd., which was acquired by Agnico Eagle Mines Limited in 2022, in the Peer Group. The graph assumes a $100 investment in the Company's common stock and in each of the indexes at the beginning of the period, and a reinvestment of dividends paid on such investments throughout the five-year period.
The graph assumes a $100 investment in the Company's common stock and in each of the indexes at the beginning of the period, and a reinvestment of dividends paid on such investments throughout the five-year period.
Removed
Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Coeur Mining 100.0 59.60 107.73 138.00 67.20 44.80 S&P 500 Index 100.0 95.62 125.72 148.85 191.58 156.88 Peer Group 100.0 76.52 118.74 173.57 137.17 127.63 TSR Peer Group 100.0 90.38 126.28 154.70 137.88 123.72 34
Added
Pursuant to two privately negotiated agreements dated November 10 and 11, 2023, Coeur exchanged $8.193 million aggregate principal amount of its 5.125% Senior Notes due 2029 for 3,630,625 shares of its common stock, par value $0.01 per share (the “Shares”).
Added
The Company formerly included Kirkland Lake Gold Ltd., which was acquired in 2022, and Yamana Gold Inc., which was acquired in 2023, in the Peer Group.
Added
Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Coeur Mining 100.0 180.76 231.54 112.75 75.17 72.93 S&P 500 Index 100.0 131.49 155.68 200.37 164.08 207.21 Peer Group 100.0 137.76 219.64 175.52 156.65 189.58 TSR Peer Group 100.0 139.72 171.16 152.55 136.89 148.95 36

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

93 edited+47 added−53 removed79 unchanged
Biggest changeAs adjusted to reflect the receipt of proceeds from Victoria Gold, Coeur’s total liquidity stood at $382 million at December 31, 2022 • 2023 guidance ranges consistent with 2022 investor day outlook – The Company expects 2023 gold and silver production of 320,000 - 370,000 ounces and 10.0 - 12.0 million ounces, respectively, driven by strong expected second half silver and gold production increases consistent with the planned ramp-up at Rochester following completion of the POA 11 expansion project and by higher expected production from the Wharf gold operation 35 Selected Financial and Operating Results Year Ended December 31, In thousands 2022 2021 2020 Financial Results (In thousands): Gold sales $ 572,877 $ 578,911 $ 584,633 Silver sales $ 212,759 $ 253,917 $ 200,175 Zinc sales $ — $ — $ (662) Lead sales $ — $ — $ 1,315 Consolidated Revenue $ 785,636 $ 832,828 $ 785,461 Net income (loss) $ (78,107) $ (31,322) $ 25,627 Net income (loss) per share, diluted $ (0.28) $ (0.13) $ 0.11 Adjusted net income (loss) (1) $ (89,059) $ (1,393) $ 59,013 Adjusted net income (loss) per share, diluted (1) $ (0.32) $ (0.01) $ 0.24 EBITDA (1) $ 72,038 $ 148,402 $ 214,767 Adjusted EBITDA (1) $ 138,954 $ 216,112 $ 263,565 Total debt (2) $ 515,933 $ 487,501 $ 275,501 Operating Results: Gold ounces produced 330,346 348,529 355,678 Silver ounces produced 9,816,680 10,068,112 9,698,236 Zinc pounds produced — — 2,459,756 Lead pounds produced — — 2,176,847 Gold ounces sold 329,968 350,347 356,251 Silver ounces sold 9,771,724 10,133,837 9,628,429 Zinc pounds sold — — 3,203,446 Lead pounds sold — — 2,453,485 Average realized price per gold ounce $ 1,736 $ 1,652 $ 1,641 Average realized price per silver ounce $ 21.77 $ 25.06 $ 20.79 Average realized price per zinc pound, gross (3) $ — $ — NM (3) Average realized price per lead pound, gross (3) $ — $ — NM (3) (1) See “Non-GAAP Financial Performance Measures.” (2) Includes finance leases.
Biggest changeSince acquiring Wharf in February 2015, Coeur has generated cumulative free cash flow of more than four times its original $99.5 million investment while mine life has remained strong at six years compared to the estimated five-year mine life at the time of acquisition • Silvertip drills one of its highest grade intercepts ever – Results have been received for almost half of 2023 drilling in the Southern Silver Zone at the high-grade Silvertip polymetallic exploration project in northern British Columbia, including the highest-grade intercept ever drilled at the Southern Silver Zone in this rapidly growing near area 37 Selected Financial and Operating Results Year Ended December 31, 2023 2022 2021 Financial Results: (in thousands, except per share amounts) Gold sales $ 575,677 $ 572,877 $ 578,911 Silver sales $ 245,529 $ 212,759 $ 253,917 Consolidated Revenue $ 821,206 $ 785,636 $ 832,828 Net income (loss) $ (103,612) $ (78,107) $ (31,322) Net income (loss) per share, diluted $ (0.30) $ (0.28) $ (0.13) Adjusted net income (loss) (1) $ (78,048) $ (89,059) $ (1,393) Adjusted net income (loss) per share, diluted (1) $ (0.23) $ (0.32) $ (0.01) EBITDA (1) $ 60,465 $ 72,038 $ 148,402 Adjusted EBITDA (1) $ 142,302 $ 138,954 $ 216,112 Total debt (2) $ 545,310 $ 515,933 $ 487,501 Operating Results: Gold ounces produced 317,671 330,346 348,529 Silver ounces produced 10,250,906 9,816,680 10,068,112 Gold ounces sold 315,511 329,968 350,347 Silver ounces sold 10,140,405 9,771,724 10,133,837 Average realized price per gold ounce $ 1,825 $ 1,736 $ 1,652 Average realized price per silver ounce $ 24.21 $ 21.77 $ 25.06 (1) See “Non-GAAP Financial Performance Measures.” (2) Includes finance leases.
Cash Used in Investing Activities Net cash used in investing activities in the year ended December 31, 2022 was $146.2 million compared to $304.1 million in the year ended December 31, 2021.
Net cash used in investing activities in the year ended December 31, 2022 was $146.2 million compared to $304.1 million in the year ended December 31, 2021.
For a discussion of estimates and assumptions used by management that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of its financial statements, the reported amounts of revenue and expenses during the reporting period, and mined reserves, see Note 2 -- Summary of Significant Accounting Policies in the notes to the Consolidated Financial Statements.
For a discussion of estimates and assumptions used by management that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of its financial statements, the reported amounts of 51 revenue and expenses during the reporting period, and mined reserves, see Note 2 -- Summary of Significant Accounting Policies in the notes to the Consolidated Financial Statements.
The Company then processes the ore through crushing facilities where the 50 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.
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.
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 record a U.S. deferred tax liability for foreign earnings that meet the indefinite reversal criteria.
The Company has asserted a partial indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company. The Company does not record a U.S. deferred tax liability for foreign earnings that meet the indefinite reversal criteria.
Actual income taxes could vary from 51 these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year’s liability by taxing authorities.
Actual income taxes could vary from these estimates due to future changes in income tax law, significant changes in the jurisdictions in which we operate or unpredicted results from the final determination of each year’s liability by taxing authorities.
In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies in each tax jurisdiction.
In evaluating the realizability of the deferred tax assets, management considers both positive and negative evidence that may exist, such as earnings history, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies 53 in each tax jurisdiction.
Cash Provided by (Used in) Financing Activities Net cash provided by financing activities in the year ended December 31, 2022 was $125.0 million compared to $158.1 million in the year ended December 31, 2021.
Net cash provided by financing activities in the year ended December 31, 2022 was $125.0 million compared to $158.1 million in the year ended December 31, 2021.
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.
We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold and silver, 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.
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.
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 a partial indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company.
The Company’s gold stream agreement with Franco-Nevada provided for a $20.0 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.
The Company’s gold stream agreement with 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.
Such cost estimates include, where applicable, ongoing care and maintenance and monitoring costs. Changes in estimates are reflected in earnings in the period an estimate is revised. See Note 11 -- Reclamation in the notes to the Consolidated Financial Statements for additional information.
Such cost estimates include, where applicable, ongoing care and maintenance and monitoring costs. Changes in estimates are reflected in earnings in the period an estimate is revised. See Note 10 -- Reclamation in the notes to the Consolidated Financial Statements for additional information.
GAAP) $ 218,008 $ 187,792 $ 194,757 $ 111,310 $ 4,912 $ 716,779 Amortization (35,432) (22,626) (39,032) (8,247) (4,912) (110,249) Costs applicable to sales $ 182,576 $ 165,166 $ 155,725 $ 103,063 $ — $ 606,530 Metal Sales Gold ounces 107,157 34,370 108,972 79,469 329,968 Silver ounces 6,695,454 3,028,986 — 47,284 — 9,771,724 Zinc pounds — — Lead pounds — — Costs applicable to sales Gold ($/oz) $ 886 $ 2,403 $ 1,423 $ 1,283 Silver ($/oz) $ 13.09 $ 27.26 $ — Zinc ($/lb) $ — Lead ($/lb) $ — 55 Year Ended December 31, 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) $ 218,008 $ 187,792 $ 194,757 $ 111,310 $ 4,912 $ 716,779 Amortization (35,432) (22,626) (39,032) (8,247) (4,912) (110,249) Costs applicable to sales $ 182,576 $ 165,166 $ 155,725 $ 103,063 $ — $ 606,530 Metal Sales Gold ounces 107,157 34,370 108,972 79,469 329,968 Silver ounces 6,695,454 3,028,986 — 47,284 — 9,771,724 Costs applicable to sales Gold ($/oz) $ 886 $ 2,403 $ 1,423 $ 1,283 Silver ($/oz) $ 13.09 $ 27.26 $ — Year Ended December 31, 2021 In thousands (except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S.
The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) mining taxes; (iv) foreign exchange rates; (v) percentage depletion (vi) the impact of uncertain tax positions; and (vii) the non-recognition of tax assets.
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) the sale of non-core assets; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) mining taxes; (v) foreign exchange rates; (vi) percentage depletion; and (vii) the impact of uncertain tax positions.
Refer to Note 12 -- Income and Mining Taxes for further discussion on our assertion. The Company’s operations may involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions.
Refer to Note 11 -- Income and Mining Taxes for further discussion on our assertion. The Company’s operations may involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions.
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.
The following tables 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.
Capital expenditures in the year ended December 31, 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 year ended December 31, 2021 were primarily related to POA 11 construction activities at Rochester, expenditures for a potential expansion at Silvertip and underground development at Palmarejo and Kensington.
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.
Management believes that allocating CAS to gold and silver based on gold and silver metal sales relative to total metal sales best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company.
During the year ended December 31, 2022, the Company drew $15.0 million, net, from the RCF and received net proceeds of $147.4 million from the sale of 36,820,110 shares of its common stock in the March Equity Offering and the December Equity Offering.
During the year ended December 31, 2022, the Company drew $15.0 million, net, from the RCF and received net proceeds of $147.4 million from the sale of 36.8 million shares of its common stock in the March Equity Offering and the December Equity Offering.
We currently believe we have sufficient sources of funding to meet our business requirements for the next 12 months and longer-term.
We currently believe we have sufficient sources of funding to meet our business requirements for the next twelve months and longer-term.
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.
After precipitation, the product is converted to doré at the Rochester mine and a form of gold electrolytic cathodic sludge at the Wharf mine, representing the final product produced by each mine. The inventory is stated at lower of cost or net realizable value, with cost being determined using a weighted average cost method.
The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit: Year ended December 31, 2022 2021 In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit United States $ (107,477) $ 2,516 $ (34,196) $ (6,142) Canada (32,249) (51) (52,299) 1,224 Mexico 77,316 (17,123) 87,233 (30,040) Other jurisdictions (1,039) — 2,898 — $ (63,449) $ (14,658) $ 3,636 $ (34,958) 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.
Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period. 42 The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit: Year ended December 31, 2022 2021 In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit United States $ (107,477) $ 2,516 $ (34,196) $ (6,142) Canada (32,249) (51) (52,299) 1,224 Mexico 77,316 (17,123) 87,233 (30,040) Other jurisdictions (1,039) — 2,898 — $ (63,449) $ (14,658) $ 3,636 $ (34,958) 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.
Year Ended December 31, 2022 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.
Year Ended December 31, 2023 In thousands (except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Silvertip Total Costs applicable to sales, including amortization (U.S.
For additional details on the VAT receivable write-down see Note 19 -- Commitments and Contingencies. 37 Income and Mining Taxes The Company’s Income and mining tax (expense) benefit consisted of: Year Ended December 31, In thousands 2022 2021 Income and mining tax (expense) benefit at statutory rate $ 13,249 $ (764) State tax provision from continuing operations 2,871 2,009 Change in valuation allowance (36,670) (28,615) Percentage depletion 3,538 4,968 Uncertain tax positions 655 920 U.S. and foreign permanent differences 365 4,105 Foreign exchange rates (145) (384) Foreign inflation and indexing 2,897 (1,087) Foreign tax rate differences (4,994) (4,901) Mining, foreign withholding, and other taxes (11,070) (12,599) Sale of non-core assets 15,447 — Other, net (801) 1,390 Income and mining tax (expense) benefit $ (14,658) $ (34,958) Income and mining tax expense of approximately $14.7 million resulted in an effective tax rate of 23.1% for 2022.
Income and Mining Taxes The Company’s Income and mining tax (expense) benefit consisted of: Year Ended December 31, In thousands 2022 2021 Income and mining tax (expense) benefit at statutory rate $ 13,249 $ (764) State tax provision from continuing operations 2,871 2,009 Change in valuation allowance (36,670) (28,615) Percentage depletion 3,538 4,968 Uncertain tax positions 655 920 U.S. and foreign permanent differences 365 4,105 Foreign exchange rates (145) (384) Foreign inflation and indexing 2,897 (1,087) Foreign tax rate differences (4,994) (4,901) Mining, foreign withholding, and other taxes (11,070) (12,599) Sale of non-core assets 15,447 — Other, net (801) 1,390 Income and mining tax (expense) benefit $ (14,658) $ (34,958) Income and mining tax expense of approximately $14.7 million resulted in an effective tax rate of 23.1% for 2022.
This could have a material adverse impact on the Company, as discussed in more detail under Item 1A – Risk Factors. Cash Provided by Operating Activities Net cash provided by operating activities for the year ended December 31, 2022 was $25.6 million, compared to $110.5 million for the year ended December 31, 2021.
This could have a material adverse impact on the Company, as discussed in more detail under Item 1A – Risk Factors. Cash Provided by Operating Activities Net cash provided by operating activities for the year ended December 31, 2023 was $67.3 million, compared to $25.6 million for the year ended December 31, 2022.
Other, net increased to a gain of $67.0 million compared to a loss of $22.9 million in 2021, as a result of the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties and a write-down of a $26.0 million Mexican VAT receivable in 2021 due to uncertain collectability.
Other, net increased to a gain of $66.3 million compared to a loss of $27.0 million in 2021, as a result of the $62.2 million gain recognized in connection with the sale of the Sterling/Crown exploration properties and a write-down of a $26.0 million Mexican VAT receivable in 2021 due to uncertain collectability.
Liquidity and Capital Resources At December 31, 2022, the Company had $63.2 million of cash, cash equivalents and restricted cash and $280.4 million available under the RCF. Future borrowing under the RCF may be subject to certain financial covenants.
Liquidity and Capital Resources At December 31, 2023, the Company had $63.4 million of cash, cash equivalents and restricted cash and $185.4 million available under the RCF. Future borrowing under the RCF may be subject to certain financial covenants.
In January 2023, the Company sold its remaining 6.0 million Victoria Gold common shares, at a price of $6.70 per share, for net proceeds of $39.8 million.
In January 2023, the Company completed the sale of 6.0 million Victoria Gold Common Shares at a price of $6.70 per Victoria Gold Common Share, for net proceeds of $39.8 million.
GAAP) $ 189,717 $ 151,427 $ 187,998 $ 104,617 $ 4,797 $ 638,556 Amortization (36,062) (20,187) (54,933) (11,038) (4,797) (127,017) Costs applicable to sales $ 153,655 $ 131,240 $ 133,065 $ 93,579 $ — $ 511,539 Metal Sales Gold ounces 108,806 27,697 122,181 91,663 350,347 Silver ounces 6,805,816 3,241,624 — 86,397 — 10,133,837 Zinc pounds — — Lead pounds — — Costs applicable to sales Gold ($/oz) $ 664 $ 1,801 $ 1,086 $ 997 Silver ($/oz) $ 11.97 $ 25.10 $ — Zinc ($/lb) $ — Lead ($/lb) $ — Year Ended December 31, 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) $ 189,717 $ 151,427 $ 187,998 $ 104,617 $ 4,797 $ 638,556 Amortization (36,062) (20,187) (54,933) (11,038) (4,797) (127,017) Costs applicable to sales $ 153,655 $ 131,240 $ 133,065 $ 93,579 $ — $ 511,539 Metal Sales Gold ounces 108,806 27,697 122,181 91,663 350,347 Silver ounces 6,805,816 3,241,624 — 86,397 — 10,133,837 Costs applicable to sales Gold ($/oz) $ 664 $ 1,801 $ 1,086 $ 997 Silver ($/oz) $ 11.97 $ 25.10 $ — 57 Reconciliation of Costs Applicable to Sales for 2024 Guidance In thousands (except metal sales and per ounce amounts) Palmarejo Rochester Kensington Wharf Costs applicable to sales, including amortization (U.S.
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. As of December 31, 2022, the Company’s estimated recoverable ounces of gold and silver on the leach pads were 40,083 and 4.7 million, respectively.
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. As of December 31, 2023, the Company’s estimated recoverable ounces of gold and silver on the leach pads were 25,659 and 3.9 million, respectively.
This compares to gold and silver representing 70% and 30% of 2021 sales revenue, respectively. 36 The following table summarizes consolidated metal sales: Year Ended December 31, Increase (Decrease) Percentage Change In thousands 2022 2021 Gold sales $ 572,877 $ 578,911 $ (6,034) (1) % Silver sales 212,759 253,917 (41,158) (16) % Metal sales $ 785,636 $ 832,828 $ (47,192) (6) % Costs Applicable to Sales Costs applicable to sales increased $95.0 million, or 19%, primarily due to higher operating costs partially impacted by continued inflationary pressures relating to consumable costs, most notably higher diesel prices, and increased lower of cost or net realizable value (“LCM”) adjustments at Rochester.
The following table summarizes consolidated metal sales: Year Ended December 31, Increase (Decrease) Percentage Change In thousands 2022 2021 Gold sales $ 572,877 $ 578,911 $ (6,034) (1) % Silver sales 212,759 253,917 (41,158) (16) % Metal sales $ 785,636 $ 832,828 $ (47,192) (6) % Costs Applicable to Sales Costs applicable to sales increased $95.0 million, or 19%, primarily due to higher operating costs partially impacted by continued inflationary pressures relating to consumable costs, most notably higher diesel prices, and increased LCM adjustments at Rochester.
The decrease in gold and silver ounces sold was primarily due to lower grades at Palmarejo, Kensington and Wharf. Gold and silver represented 73% and 27% of 2022 sales revenue, respectively.
The decrease in gold and silver ounces sold was primarily due to lower grades at Palmarejo, Kensington and Wharf. Gold and silver represented 73% and 27% of 2022 sales revenue, respectively. This compares to gold and silver representing 70% and 30% of 2021 sales revenue, respectively.
We expect to use a combination of cash provided by operating activities under-pinned by our gold and silver hedging programs, sale of non-core investments, borrowings under our RCF and additional equity financings depending on future commodity prices to fund near term capital requirements, including those described in this Report for the POA 11 expansion project at Rochester and in our 2023 capital expenditure guidance.
We expect to use a combination of cash provided by operating activities under-pinned by our gold and silver hedging programs, additional equity financing, and borrowings under our RCF depending on future commodity prices to fund near term capital requirements, including those described in this report for the Rochester expansion project and in our 2024 capital expenditure guidance.
Management applies judgment in estimating the fair value of instruments that are highly sensitive to assumptions regarding commodity prices, market volatilities, and foreign currency exchange rates. Income and Mining Taxes The Company accounts for income taxes in accordance with the guidance of ASC 740.
Management applies judgment in estimating the fair value of instruments that are highly sensitive to assumptions regarding commodity prices, market volatilities, and foreign currency exchange rates. See Note 14 -- Derivative Financial Instruments and Hedging Activities for additional information. Income and Mining Taxes The Company accounts for income taxes in accordance with the guidance of ASC 740.
Adjusted EBITDA for the year ended December 31, 2022 was $139.0 million, compared to $216.1 million for the year ended December 31, 2021 (see “Non-GAAP Financial Performance Measures”).
Adjusted EBITDA for the year ended December 31, 2023 was $142.3 million, compared to $139.0 million for the year ended December 31, 2022 (see “Non-GAAP Financial Performance Measures”).
Overview We are primarily a gold and silver producer with operating assets located in the United States and Mexico and an exploration project in Canada. 2022 Highlights For the full year 2022, Coeur reported revenue of $785.6 million and cash provided by operating activities of $25.6 million. We reported GAAP net loss of $78.1 million, or $(0.28) per diluted share.
Overview We are primarily a gold and silver producer with operating assets located in the United States and Mexico and an exploration project in Canada. 2023 Highlights For the full year 2023, Coeur reported revenue of $821.2 million and cash provided by operating activities of $67.3 million. We reported GAAP net loss of $103.6 million, or $0.30 per diluted share.
The following table summarizes pre-development, reclamation, and other expenses: Year Ended December 31, Increase (Decrease) Percentage Change In thousands 2022 2021 COVID-19 $ 1,739 $ 6,618 $ (4,879) (74) % Silvertip ongoing carrying costs 20,963 24,928 (3,965) (16) % Asset retirement accretion 14,232 11,988 2,244 19 % Other 4,353 5,144 (791) (15) % Pre-development, reclamation and other expense $ 41,287 $ 48,678 $ (7,391) (15) % 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 5.875% Senior Notes due 2024 (the “2024 Senior Notes”) concurrent with the offering of the 2029 Senior Notes.
The following table summarizes pre-development, reclamation, and other expenses: Year Ended December 31, Increase (Decrease) Percentage Change In thousands 2022 2021 COVID-19 $ 1,739 $ 6,618 $ (4,879) (74) % Silvertip ongoing carrying costs 20,963 24,928 (3,965) (16) % (Gain) loss on sale of assets (640) (4,111) 3,471 (84) % Asset retirement accretion 14,232 11,988 2,244 19 % Other 4,353 5,144 (791) (15) % Pre-development, reclamation and other expense $ 40,647 $ 44,567 $ (3,920) (9) % 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 5.875% Senior Notes due 2024 (the “2024 Senior Notes”) concurrent with the offering of the 2029 Senior Notes. 41 Fair value adjustments, net, decreased to a loss of $66.7 million compared to a $0.5 million loss as a result of a reduction in value of the Company’s equity investments.
Wharf Year ended December 31, 2022 2021 2020 Tons placed 4,506,849 4,702,882 4,710,875 Average gold grade (oz/t) 0.021 0.027 0.027 Gold ounces produced 79,768 91,136 93,056 Silver ounces produced 46,067 89,506 115,214 Gold ounces sold 79,469 91,663 94,379 Silver ounces sold 47,284 86,397 113,790 CAS per gold ounce (1) $ 1,283 $ 997 $ 923 (1) See Non-GAAP Financial Performance Measures.
Wharf Year ended December 31, 2023 2022 2021 Tons placed 4,743,469 4,506,849 4,702,882 Average gold grade (oz/t) 0.026 0.021 0.027 Gold ounces produced 93,502 79,768 91,136 Silver ounces produced 267,786 46,067 89,506 Gold ounces sold 93,348 79,469 91,663 Silver ounces sold 266,156 47,284 86,397 CAS per gold ounce (1) $ 1,159 $ 1,283 $ 997 (1) See Non-GAAP Financial Performance Measures.
Interest expense (net of capitalized interest of $11.2 million) increased to $23.9 million from $16.5 million due to higher interest paid under the RCF, partially offset by higher capitalized interest.
For additional details on the Company’s equity investments, see Note 6 -- Investments. Interest expense (net of capitalized interest of $11.2 million) increased to $23.9 million from $16.5 million due to higher interest paid under the RCF, partially offset by higher capitalized interest.
Guidance figures exclude the impact of any metal sales or foreign exchange hedges. 42 Results of Operations Palmarejo Year Ended December 31, 2022 2021 2020 Tons milled 2,197,808 2,106,741 1,751,525 Average gold grade (oz/t) 0.05 0.06 0.07 Average silver grade (oz/t) 3.63 3.93 4.45 Average recovery rate – Au 92.1 % 92.8 % 89.9 % Average recovery rate – Ag 84.2 % 82.4 % 80.4 % Gold ounces produced 106,782 109,202 110,608 Silver ounces produced 6,708,689 6,820,589 6,269,206 Gold ounces sold 107,157 108,806 110,822 Silver ounces sold 6,695,454 6,805,816 6,301,516 CAS per gold ounce (1) $ 886 $ 664 $ 610 CAS per silver ounce (1) $ 13.09 $ 11.97 $ 9.14 (1) See Non-GAAP Financial Performance Measures.
Guidance figures exclude the impact of any metal sales or foreign exchange hedges. 44 Results of Operations Palmarejo Year Ended December 31, 2023 2022 2021 Tons milled 2,008,459 2,197,808 2,106,741 Average gold grade (oz/t) 0.05 0.05 0.06 Average silver grade (oz/t) 3.97 3.63 3.93 Average recovery rate – Au 91.1 % 92.1 % 92.8 % Average recovery rate – Ag 82.7 % 84.2 % 84.2 % Gold ounces produced 100,605 106,782 109,202 Silver ounces produced 6,591,590 6,708,689 6,820,589 Gold ounces sold 99,043 107,157 108,806 Silver ounces sold 6,534,469 6,695,454 6,805,816 CAS per gold ounce (1) $ 961 $ 886 $ 664 CAS per silver ounce (1) $ 15.17 $ 13.09 $ 11.97 (1) See Non-GAAP Financial Performance Measures.
This was partially offset by a 5% increase in average realized gold prices driven by realized gains from gold hedging, a $62.2 million gain on the sale of the Sterling/Crown exploration properties, lower exploration costs and income and mining taxes, absence of a $9.2 million loss on debt extinguishment and the VAT write-down of $26.0 million in 2021. 38 Adjusted net loss was $89.1 million, or $0.32 per diluted share, compared to $1.4 million, or $0.01 per diluted share (see “Non-GAAP Financial Performance Measures”).
This was partially offset by a 5% increase in average realized gold prices driven by realized gains from gold hedging, a $62.2 million gain on the sale of the Sterling/Crown exploration properties, lower exploration costs and income and mining taxes, absence of a $9.2 million loss on debt extinguishment and the VAT write-down of $26.0 million in 2021.
Capital expenditures increased to $36.5 million from $25.0 million due to higher underground development and infill drilling activities. 43 Rochester Year ended December 31, 2022 2021 2020 Tons placed 14,919,803 13,687,536 15,696,565 Average gold grade (oz/t) 0.003 0.002 0.002 Average silver grade (oz/t) 0.41 0.42 0.52 Gold ounces produced 34,735 27,051 27,147 Silver ounces produced 3,061,924 3,158,017 3,174,529 Gold ounces sold 34,370 27,697 26,257 Silver ounces sold 3,028,986 3,241,624 3,054,139 CAS per gold ounce (1) $ 2,403 $ 1,801 $ 1,377 CAS per silver ounce (1) $ 27.26 $ 25.10 $ 16.35 (1) See Non-GAAP Financial Performance Measures.
Capital expenditures increased to $42.6 million from $36.5 million due to higher underground development, infill drilling activities and flotation and thickener equipment purchases. 45 Rochester Year ended December 31, 2023 2022 2021 Tons placed 11,388,657 14,919,803 13,687,536 Average gold grade (oz/t) 0.003 0.003 0.002 Average silver grade (oz/t) 0.45 0.41 0.42 Gold ounces produced 38,775 34,735 27,051 Silver ounces produced 3,391,530 3,061,924 3,158,017 Gold ounces sold 38,449 34,370 27,697 Silver ounces sold 3,339,780 3,028,986 3,241,624 CAS per gold ounce (1) $ 2,138 $ 2,403 $ 1,801 CAS per silver ounce (1) $ 26.67 $ 27.26 $ 25.10 (1) See Non-GAAP Financial Performance Measures.
Assuming normal market conditions, the change in the market value of such derivative contracts has historically been, and is expected to continue to be, highly effective at offsetting changes in price movements of the hedged item.
Assuming normal market conditions, the change in the market value of such derivative contracts has historically been, and is expected to continue to be, highly effective at offsetting changes in price movements of the hedged item. The effective portions of cash flow hedges are recorded in Accumulated other comprehensive income (loss) until the hedged item is recognized in earnings.
Changes in these assumptions could result in material adjustments to the Company’s reserve estimates. The Company uses reserve estimates in determining the units-of-production amortization and evaluating mine assets for potential impairment.
These estimates involve assumptions regarding future silver and gold prices, mine geology, mining methods and the related costs to develop and mine the reserves. Changes in these assumptions could result in material adjustments to the Company’s reserve estimates. The Company uses reserve estimates in determining the units-of-production amortization and evaluating mine assets for potential impairment.
Consolidated Financial Results Year Ended December 31, 2022 compared to Year Ended December 31, 2021 Revenue We sold 329,968 gold ounces and 9.8 million silver ounces, compared to 350,347 gold ounces and 10.1 million silver ounces.
Net of debt issuance costs and premium received. Consolidated Financial Results Year Ended December 31, 2023 compared to Year Ended December 31, 2022 Revenue We sold 315,511 gold ounces and 10.1 million silver ounces, compared to 329,968 gold ounces and 9.8 million silver ounces.
Exploration expense decreased $24.5 million, or 48% driven by lower planned investment across the portfolio. Pre-development, reclamation, and other expenses decreased $7.4 million, or 15%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols and lower ongoing carrying costs at Silvertip, partially offset by higher asset retirement accretion.
Pre-development, reclamation, and other expenses decreased $3.9 million, or 9%, stemming from lower costs incurred in connection with the Company’s COVID-19 health and safety protocols and lower ongoing carrying costs at Silvertip, partially offset by lower gains from the sale of assets and higher asset retirement accretion.
Capital expenditures increased to $166.5 million from $37.5 million due to the commencement of construction activities related to POA 11 in August 2020. 44 Kensington Year ended December 31, 2022 2021 2020 Tons milled 700,346 667,560 675,731 Average gold grade (oz/t) 0.17 0.19 0.20 Average recovery rate 92.5 % 93.2 % 93.0 % Gold ounces produced 109,061 121,140 124,867 Gold ounces sold 108,972 122,181 124,793 CAS per gold ounce (1) $ 1,423 $ 1,086 $ 975 (1) See Non-GAAP Financial Performance Measures.
Capital expenditures increased to $246.4 million from $166.5 million due to planned payments related to the POA 11 expansion project and equipment purchases. 46 Kensington Year ended December 31, 2023 2022 2021 Tons milled 651,576 700,346 667,560 Average gold grade (oz/t) 0.14 0.17 0.19 Average recovery rate 91.9 % 92.5 % 93.2 % Gold ounces produced 84,789 109,061 121,140 Gold ounces sold 84,671 108,972 122,181 CAS per gold ounce (1) $ 1,797 $ 1,423 $ 1,086 (1) See Non-GAAP Financial Performance Measures.
Net cash provided by operating activities was impacted by the following key factors for the applicable periods: 47 Year Ended December 31, In thousands 2022 2021 2020 Cash flow before changes in operating assets and liabilities $ 71,862 $ 145,615 $ 162,434 Changes in operating assets and liabilities: Receivables 4,452 (983) (9,463) Prepaid expenses and other 240 489 (2,621) Inventories (51,448) (27,628) (34,538) Accounts payable and accrued liabilities 510 (7,011) 32,897 Cash provided by (used in) operating activities $ 25,616 $ 110,482 $ 148,709 Net cash provided by operating activities decreased $84.9 million for the year ended December 31, 2022 compared to the year ended December 31, 2021, primarily due to a 6% and 4% decrease in lower gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, and higher operating costs, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges, lower exploration costs, timing of VAT collections at Palmarejo, and lower Silvertip ongoing carrying costs.
Net cash provided by operating activities was impacted by the following key factors for the applicable periods: Year Ended December 31, In thousands 2023 2022 2021 Cash flow before changes in operating assets and liabilities $ 58,827 $ 71,862 $ 145,615 Changes in operating assets and liabilities: Receivables 933 4,452 (983) Prepaid expenses and other (461) 240 489 Inventories (47,592) (51,448) (27,628) Accounts payable and accrued liabilities 55,581 510 (7,011) Cash provided by (used in) operating activities $ 67,288 $ 25,616 $ 110,482 49 Net cash provided by operating activities increased $41.7 million for the year ended December 31, 2023 compared to the year ended December 31, 2022, primarily due to a 4% increase in silver ounces sold and a 5% and 11% increase in average realized gold and silver prices, the receipt of $55.0 million of prepayments at Kensington, Rochester and Wharf in December 2023, and the receipt of $7.8 million FT Premium Liability, partially offset by a 4% decrease in gold ounces sold, higher operating costs, and timing of VAT collections at Palmarejo.
Net cash used in investing activities in the year ended December 31, 2021 was $304.1 million compared to $65.7 million in the year ended December 31, 2020.
Cash Used in Investing Activities Net cash used in investing activities in the year ended December 31, 2023 was $303.7 million compared to $146.2 million in the year ended December 31, 2022.
The Company incurred capital expenditures of $309.8 million in the year ended December 31, 2021 compared with $99.3 million in the year ended December 31, 2020. Capital expenditures in the year ended December 31, 2021 were primarily related to POA 11 construction activities at Rochester, potential expansion expenditures at Silvertip and underground development at Palmarejo and Kensington.
The Company incurred capital expenditures of $364.6 million in the year ended December 31, 2023 compared with $352.4 million in the year ended December 31, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.
GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of its financial statements, the reported amounts of revenue and expenses during the reporting period, and mined reserves. There can be no assurance that actual results will not differ from those estimates.
Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of its financial statements, the reported amounts of revenue and expenses during the reporting period, and mined reserves.
Adjusted net income (loss) is reconciled to Net income (loss) in the following table: 52 Year Ended December 31, In thousands except per share amounts 2022 2021 2020 Net income (loss) (78,107) $ (31,322) $ 25,627 Fair value adjustments, net 66,668 543 (7,601) Foreign exchange loss (gain) 1,648 1,994 (69) (Gain) loss on sale of assets and securities (64,429) (4,111) 2,484 RMC bankruptcy distribution (1,651) — — VAT litigation 1,142 — — VAT write-off — 25,982 — Loss on debt extinguishment — 9,173 — Silvertip inventory write-down — — 13,717 Wharf inventory write-down — — 3,323 Silvertip suspension costs — — 7,164 Silvertip lease modification — — (4,051) Silvertip gain on contingent consideration — — (955) Novation — — 3,819 COVID-19 costs 1,739 6,618 15,555 Interest income on notes receivables (720) — — Tax effect of adjustments (1) (15,349) (10,270) — Adjusted net income (loss) $ (89,059) $ (1,393) $ 59,013 Adjusted net income (loss) per share, Basic $ (0.32) $ (0.01) $ 0.25 Adjusted net income (loss) per share, Diluted $ (0.32) $ (0.01) $ 0.24 (1) For the year ended December 31, 2022, tax effect of adjustments of $15.3 million (-558%) is primarily related to the to the fair value adjustments on the Company’s equity investments and the derecognition of deferred tax liabilities related to the sale of La Preciosa and the Sterling /Crown exploration properties .
Adjusted net income (loss) is reconciled to Net income (loss) in the following table: 54 Year Ended December 31, In thousands except per share amounts 2023 2022 2021 Net income (loss) $ (103,612) $ (78,107) $ (31,322) Fair value adjustments, net (3,384) 66,668 543 Foreign exchange loss (gain) 1,994 1,648 1,994 (Gain) loss on sale of assets and securities 25,197 (64,429) (4,111) RMC bankruptcy distribution (1,516) (1,651) — VAT write-off — — 25,982 Loss on debt extinguishment — — 9,173 Gain on debt extinguishment (3,437) — — COVID-19 costs 111 1,739 6,618 Other adjustments 4,814 422 — Tax effect of adjustments (1) 1,785 (15,349) (10,270) Adjusted net income (loss) $ (78,048) $ (89,059) $ (1,393) Adjusted net income (loss) per share, Basic $ (0.23) $ (0.32) $ (0.01) Adjusted net income (loss) per share, Diluted $ (0.23) $ (0.32) $ (0.01) (1) For the year ended December 31, 2023, tax effect of adjustments of $1.8 million (8%) is primarily related to the loss on the sale of the La Preciosa Deferred Consideration.
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.
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. 52 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.
Amortization increased to $22.6 million due to higher equipment depreciation from recent equipment purchases and the impact of LCM adjustments. Capital expenditures increased to $246.4 million from $166.5 million due to planned payments related to the POA 11 expansion project and equipment purchases.
Amortization increased to $22.6 million due to higher equipment depreciation from recent equipment purchases and the impact of LCM adjustments.
Ongoing carrying costs at Silvertip totaled $21.0 million in 2022, compared to $24.9 million in the prior year. Capital expenditures in 2022 totaled $24.8 million compared to $70.1 million in the prior year due to continued infill drilling and underground development.
Silvertip Year Ended December 31, 2023 Ongoing carrying costs at Silvertip totaled $15.6 million in 2023 and $21.0 million in the prior year. Capital expenditures in 2023 totaled $2.9 million compared to $24.8 million in the prior year due to planned reduction in capital development expenditures.
Net cash provided by operating activities decreased $38.2 million for the year ended December 31, 2021, primarily due to lower gold ounces sold (2%), higher operating costs, exploration costs, and mining and income taxes at Palmarejo, partially offset by a 1% and 21% increase in average realized gold and silver prices, respectively, and higher silver ounces sold (5%).
Net cash provided by operating activities decreased $84.9 million for the year ended December 31, 2022 compared to the year ended December 31, 2021, primarily due to a 6% and 4% decrease in lower gold and silver ounces sold, respectively, a 13% decrease in average realized silver prices, and higher operating costs, partially offset by a 5% increase in average realized gold prices driven by the favorable impact of realized gains from gold hedges, lower exploration costs, timing of VAT collections at Palmarejo, and lower Silvertip ongoing carrying costs.
Revenue increased by $47.4 million, or 6%, as a result of a 1% and 21% increase in average realized gold and silver prices, respectively, and higher silver ounces sold (5%), partially offset by lower gold ounces sold (2%). The increase in silver ounces sold was primarily due to higher mill throughput at Palmarejo.
Revenue increased by $35.6 million, or 5%, as a result of a 4% increase in silver ounces sold and a 5% and 11% increase in average realized gold and silver prices, respectively, partially offset by a 4% decrease in gold ounces sold.
Year Ended December 31, 2021 compared to Year Ended December 31, 2020 Gold production decreased 1% as a result of lower gold grade, partially offset by higher mill throughput and recoveries. Silver production increased 9% as a result of higher mill throughput and recoveries, partially offset by lower silver grade.
Year Ended December 31, 2023 compared to Year Ended December 31, 2022 Gold and silver production decreased 6% and 2%, respectively, as a result of a 9% decrease in mill throughput partially offset by 4% and 9% higher gold and silver grades, respectively.
Fair value adjustments, net, decreased to a loss of $66.7 million compared to a $0.5 million loss as a result of a reduction in value of the Company’s equity investments. For additional details on the Company’s equity investments see Note 6 -- Investments.
Fair value adjustments, net, increased to a gain of $3.4 million compared to $66.7 million loss as a result of an increase in value of the Company’s equity investments. For additional details on the Company’s equity investments see Note 6 -- Investments. Interest expense (net of capitalized interest of $14.6 million) increased to $29.1 million from $23.9 million.
Revenue for the year ended December 31, 2021 increased by $47.4 million, of which $44.5 million was the result of higher average realized gold and silver prices and $2.9 million was due to the higher volume of silver sales.
Revenue for the year ended December 31, 2023 compared to the year ended December 31, 2022 increased by $35.6 million, of which $53.0 was due to higher average realized gold and silver prices, partially offset $17.4 million as a result of lower volume of gold sales.
In March 2022, the Company completed a $100.0 million “at the market” offering of its common stock, par value $0.01 per share (the “March Equity Offering”). The Company sold a total of 22.1 million shares of common stock in the March Equity Offering at an average price of $4.53 per share, raising net proceeds (after sales commissions) of $98.0 million.
The Company sold a total of 32,861,580 shares of common stock in the March 2023 Equity Offering at an average price of $3.04 per share, raising net proceeds (after sales commissions) of $98.4 million.
The transaction was consummated on November 4, 2022. In December 2022, the Company completed a $50.0 million “at the market” offering of its common stock, par value $0.01 per share (the “December Equity Offering”).
The remaining outstanding FT Premium Liability was $5.5 million as of December 31, 2023. In September 2023, the Company completed a $50.0 million “at the market” offering of its common stock, par value $0.01 per share (the “September 2023 Equity Offering”).
Revenue decreased by $16.7 million, or 10%, of which $23.8 million was due to a lower gold production, partially offset by an increase of $7.1 million due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 29% due to lower production and higher diesel and other consumable costs primarily due to inflationary pressures.
Revenue increased by $39.5 million, or 26%, of which $32.5 million was due to a higher gold production, and an increase of $7.0 million due to higher average realized gold prices. Costs applicable to sales per gold ounce decreased 10% due to lower operating costs and higher grade and tons placed.
Revenue decreased by $3.5 million, or 2%, of which $5.6 million resulted from a lower volume of gold sales, partially offset by an increase of $2.1 million due to higher average realized gold and silver prices. Costs applicable to sales per gold ounce increased 8% due to higher equipment rental, diesel and employee-related costs partially due to inflationary pressures.
Revenue decreased by $40.0 million, or 20%, of which $46.0 million resulted from a lower volume of gold production, partially offset by a $6.0 million increase due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 26% due to lower production partially offset by lower operating costs.
We also have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other purchase obligations and commitments for purchases of goods and services.
Our longer-term plans contemplate the expansion and restart of Silvertip, as well as the continued exploration to extend mine lives at all of our operating sites. We also have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other purchase obligations and commitments for purchases of goods and services.
During the year ended December 31, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, and drew $65.0 million, net, from the RCF, partially offset by the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums.
During the year ended December 31, 2021, the Company received net proceeds of $367.5 million from the issuance of the 2029 Senior Notes, and drew $65.0 million, net, from the RCF, partially offset by the tender and redemption of the 2024 Senior Notes for $238.3 million, including premiums. 50 Critical Accounting Policies and Accounting Developments Listed below are the accounting policies that we believe are critical to our financial statements due to the degree of uncertainty regarding the estimates and assumptions involved and the magnitude of the asset, liability, revenue, and expense being reported.
This compares to income tax expense of $37.0 million or effective tax rate of 59.1% for 2020.
This compares to income tax expense of $14.7 million for an effective tax rate of 23.1% for 2022.
Adjusted EBITDA is reconciled to Net income (loss) in the following table: 53 Year Ended December 31, In thousands except per share amounts 2022 2021 2020 Net income (loss) $ (78,107) $ (31,322) $ 25,627 Interest expense, net of capitalized interest 23,861 16,451 20,708 Income tax provision (benefit) 14,658 34,958 37,045 Amortization 111,626 128,315 131,387 EBITDA 72,038 148,402 214,767 Fair value adjustments, net 66,668 543 (7,601) Foreign exchange (gain) loss 850 2,779 2,445 Asset retirement obligation accretion 14,232 11,988 11,754 Inventory adjustments and write-downs 49,085 14,738 1,144 (Gain) loss on sale of assets and securities (64,429) (4,111) 2,484 RMC bankruptcy distribution (1,651) — — VAT litigation 1,142 — — VAT write-off — 25,982 — Loss on debt extinguishment — 9,173 — Silvertip inventory write-down — — 13,717 Silvertip suspension costs — — 7,164 Silvertip lease modification — — (4,051) Silvertip gain on contingent consideration — — (955) COVID-19 costs 1,739 6,618 15,555 Novation — — 3,819 Wharf inventory write-down — — 3,323 Interest income on notes receivables (720) — — Adjusted EBITDA (1) $ 138,954 $ 216,112 $ 263,565 (1) At September 30, 2022, the Company modified its method of calculating Adjusted EBITDA to include the cumulative impact of the LCM adjustments, if applicable, year over year.
Adjusted EBITDA is reconciled to Net income (loss) in the following table: 55 Year Ended December 31, In thousands except per share amounts 2023 2022 2021 Net income (loss) $ (103,612) $ (78,107) $ (31,322) Interest expense, net of capitalized interest 29,099 23,861 16,451 Income tax provision (benefit) 35,156 14,658 34,958 Amortization 99,822 111,626 128,315 EBITDA 60,465 72,038 148,402 Fair value adjustments, net (3,384) 66,668 543 Foreign exchange (gain) loss 459 850 2,779 Asset retirement obligation accretion 16,405 14,232 11,988 Inventory adjustments and write-downs 43,188 49,085 14,738 (Gain) loss on sale of assets and securities 25,197 (64,429) (4,111) RMC bankruptcy distribution (1,516) (1,651) — VAT write-off — — 25,982 Loss on debt extinguishment — — 9,173 Gain on debt extinguishment (3,437) — — COVID-19 costs 111 1,739 6,618 Other adjustments 4,814 422 — Adjusted EBITDA $ 142,302 $ 138,954 $ 216,112 Free Cash Flow Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations.
Metal sales were $215.0 million, or 26% of Coeur’s metal sales, compared to $216.5 million, or 28% of Coeur’s metal sales. Revenue decreased by $1.5 million, or 1%, of which $4.6 million resulted from lower volume of gold sales, partially offset by an increase of $3.1 million due to higher average realized gold prices.
Metal sales were $150.0 million, or 19% of Coeur’s metal sales, compared to $166.7 million, or 20% of Coeur’s metal sales. Revenue decreased by $16.7 million, or 10%, of which $23.8 million was due to a lower gold production, partially offset by an increase of $7.1 million due to higher average realized gold prices.
Metal sales were $320.3 million, or 38% of Coeur’s metal sales, compared with $286.6 million, or 36% of Coeur’s metal sales. Revenue increased by $33.7 million, or 12%, of which $23.9 million was due to higher average realized silver prices and $9.8 million was the result of a higher volume of silver sales.
Metal sales were $313.2 million, or 38% of Coeur’s metal sales, compared with $303.4 million, or also 38% of Coeur’s metal sales. Revenue increased by $9.8 million, or 3%, of which $26.4 million was due to higher gold and silver prices, partially offset by a decrease of $16.6 million due to a lower volume of gold and silver production.
At December 31, 2022, the Company had $80.0 million drawn and $29.6 million in outstanding letters of credit under the RCF.
At December 31, 2023, the Company had $175.0 million drawn, $29.6 million in outstanding letters of credit and $185.4 million available under the RCF. On August 9, 2023, the Company entered into an amendment (the “August Amendment”) to the RCF.
The Company sold a total of 14.8 million shares of common stock in the December Equity Offering at an average price of $3.39 per share, raising net proceeds (after sales commissions) of $49.2 million. As of December 31, 2022, the Company had outstanding forward contracts on 130,500 ounces of gold at December 31, 2022 that settle monthly through December 2023.
The Company sold a total of 21,699,856 shares of its common stock in the September 2023 Equity Offering at an average price of $2.30 per share, raising net proceeds (after sales commissions) of $49.3 million.
There are a number of uncertainties inherent in estimating quantities of reserves, including many factors beyond the Company’s control. Mineral reserve estimates are based upon engineering evaluations of samplings of drill holes and other openings. These estimates involve assumptions regarding future silver and gold prices, mine geology, mining methods and the related costs to develop and mine the reserves.
There can be no assurance that actual results will not differ from those estimates. There are a number of uncertainties inherent in estimating quantities of reserves, including many factors beyond the Company’s control. Mineral reserve estimates are based upon engineering evaluations of samplings of drill holes and other openings.
Adjusted net loss was $1.4 million, or $0.01 per diluted share, compared to an adjusted net income of $59.0 million, or $0.24 per diluted share (see “Non-GAAP Financial Performance Measures”). 2023 Guidance Framework Gold and silver production is expected to increase compared to 2022, driven by the planned construction completion of POA 11 at Rochester mid-year as well as higher expected grades at Wharf due to mine sequencing and resource model enhancements.
Adjusted net loss was $89.1 million, or $0.32 per diluted share, compared to $1.4 million, or $0.01 per diluted share (see “Non-GAAP Financial Performance Measures”). 2024 Guidance Gold and silver production is expected to increase compared to 2023, driven by the commissioning and ramp-up of the Rochester expansion.
The stream agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada. 49 Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S.
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 stream agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.
The November Amendment, among other things, (1) modified the financial covenants to provide greater flexibility under the 46 consolidated net leverage ratio requirement through the December 31, 2023 test date, with the ratio returning to the original level as outlined in the RCF starting with the March 31, 2024 test date (the “Amendment Period”), (2) allowed up to $50 million for integration costs or costs associated with establishing new facilities and certain costs associated with LCM adjustments at Rochester to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF, (3) increased the interest rate on certain borrowings through early 2023, (4) required the Company to repay outstanding amounts under the RCF if cash-on-hand exceeds $60 million during the Amendment Period, and (5) restricted certain payments and the incurrence of certain liens during the Amendment Period.
The August Amendment, among other things, (1) modifies the financial covenants to provide greater flexibility during the final stages of the Rochester expansion under (a) the consolidated net leverage and consolidated senior secured leverage ratios at September 30, 2023 through March 31, 2024, with the ratios returning to the previous levels at June 30, 2024 and (b) the consolidated interest coverage ratio at June 30 through September 30, 2023, with the ratio returning to the previous level at December 31, 2023, (2) allows up to $50 million, through June 30, 2024, stepping down to $40 million in September 31, 2024, $30 million in December 31, 2024 and $15 million thereafter, for integration costs or costs associated with establishing new facilities and certain costs associated with LCM adjustments at Rochester to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF, (3) increases the interest rate on certain borrowings through June 30, 2024, and (4) restricts certain acquisitions through March 31, 2024.
Revenue increased by $20.6 million, or 19%, of which $13.3 million was the result of higher average realized gold and silver prices and $7.3 million was the result of a higher volume of gold and silver sales.
Revenue increased by $26.4 million, or 20%, of which $15.5 million was due to a higher volume of gold and silver production, and $10.9 million was due to higher average realized gold and silver prices.
The Company expects to have an LCM adjustment at Rochester of roughly $10 - $15 million each quarter in 2023. 2023 Production Guidance Gold Silver (oz) (K oz) Palmarejo 100,000 - 112,500 6,500 - 7,500 Rochester 35,000 - 50,000 3,500 - 4,500 Kensington 100,000 - 112,500 — Wharf 85,000 - 95,000 — Total 320,000 - 370,000 10,000 - 12,000 2023 Costs Applicable to Sales Guidance Gold Silver ($/oz) ($/oz) Palmarejo (co-product) $900 - $1,050 $14.25 - $15.25 Rochester (co-product) — — Kensington $1,500 - $1,700 — Wharf (by-product) $1,200 - $1,350 — 2023 Capital, Exploration and G&A Guidance ($M) Capital Expenditures, Sustaining $120 - $145 Capital Expenditures, Development $200 - $235 Exploration, Expensed $30 - $35 Exploration, Capitalized $10 - $15 General & Administrative Expenses $36 - $40 Note: The Company’s guidance figures assume estimated prices of $1,800/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN of 20.00.
Additionally, the below exploration expense guidance excludes $15 - $20 million of underground mine development and support costs associated with Silvertip. 2024 Production Guidance Gold Silver (oz) (K oz) Palmarejo 95,000 - 103,000 5,900 - 6,700 Rochester 37,000 - 50,000 4,800 - 6,600 Kensington 92,000 - 106,000 — Wharf 86,000 - 96,000 — Total 310,000 - 355,000 10,700 - 13,300 43 2024 Costs Applicable to Sales Guidance Gold Silver ($/oz) ($/oz) Palmarejo (co-product) $1,075 - $1,275 $16.50 - $17.50 Second Half 2024 Rochester (co-product) $1,200 - $1,400 $14.00 - $16.00 Kensington $1,525 - $1,725 — Wharf (by-product) $1,100 - $1,200 — 2024 Capital, Exploration and G&A Guidance ($M) Capital Expenditures, Sustaining $116 - $158 Capital Expenditures, Development $19 - $26 Exploration, Expensed $40 - $50 Exploration, Capitalized $7 - $13 General & Administrative Expenses $36 - $40 Note: The Company’s guidance figures assume estimated prices of $2,000/oz gold and $23.75/oz silver as well as CAD of 1.25 and MXN of 17.00.
Amortization decreased to $39.0 million primarily due to lower ounces sold and longer assumed mine life. Capital expenditures increased to $31.5 million from $27.5 million due to higher infill drilling and underground development. Year Ended December 31, 2021 compared to Year Ended December 31, 2020 Gold production decreased 3% as a result of lower grade and lower mill throughput.
Amortization decreased to $39.0 million primarily due to lower ounces sold and longer assumed mine life. Capital expenditures increased to $31.5 million from $27.5 million due to the multi-year underground development and exploration program which began in 2022.
Year Ended December 31, 2022 compared to Year Ended December 31, 2021 Gold production decreased 12% driven by lower grades. Metal sales were $150.0 million, or 19% of Coeur’s metal sales, compared to $166.7 million, or 20% of Coeur’s metal sales.
Year Ended December 31, 2023 compared to Year Ended December 31, 2022 Gold production decreased 22% as a result of 18% lower grades and 7% lower mill throughput. Metal sales were $162.5 million, or 20% of Coeur’s metal sales, compared to $202.5 million, or 26% of Coeur’s metal sales.

… 113 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

12 edited+2 added−2 removed16 unchanged
Biggest changeIn early 2023, the Company added 49,998 ounces of gold forward contracts and 3.2 million ounces of silver forward contracts that settle monthly through December 2023. Taking into account the additional gold and silver hedges added in early 2023, the weighted average fixed price on the forward contracts is $1,961 per ounce of gold and $24.55 per ounce of silver.
Biggest changeThe weighted average fixed price on the forward contracts is $2,076 per ounce of gold and $25.16 per ounce of silver.
A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions. 57 Hedging To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production.
A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions. 58 Hedging To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production.
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 15 -- Derivative Financial Instruments in the notes to the Consolidated Financial Statements. This discussion of the Company’s market risk assessments contains “forward looking statements”.
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 14 -- Derivative Financial Instruments in the notes to the Consolidated Financial Statements. This discussion of the Company’s market risk assessments contains “forward looking statements”.
In 2020, 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 no outstanding foreign currency forward exchange contracts at December 31, 2022.
In 2020, 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 no outstanding foreign currency forward exchange contracts at December 31, 2023.
The Company seeks to minimize the credit risk in derivative instruments by entering into transactions 58 with what it believes 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 December 31, 2022.
The Company seeks to minimize the credit risk in derivative instruments by entering into transactions 59 with what it believes 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 December 31, 2023.
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 2022 10-K and part II, Item 1A of this report.
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 Item 1A of this Report.
The significant assumptions in determining the stockpile, leach pad and metal inventory adjustments at December 31, 2022 included production cost and capitalized expenditure assumptions unique to each operation, a short-term and long-term gold price of $1,726 and $1,715 per ounce, respectively, and a short-term and long-term silver price of $21.17 and $21.36 per ounce, respectively.
The significant assumptions in determining the stockpile, leach pad and metal inventory adjustments at December 31, 2023 included production cost and capitalized expenditure assumptions unique to each operation, a short-term and long-term gold price of $1,971 and $1,794 per ounce, respectively, and a short-term and long-term silver price of $23.20 and $23.17 per ounce, respectively.
At December 31, 2022, the Company had outstanding provisionally priced sales of 14,556 ounces of gold at an average price of $1,786. Changes in gold prices resulted in provisional pricing mark-to-market gain of $0.37 million during the twelve months ended December 31, 2022. A 10% change in realized gold prices would cause revenue to vary by $2.6 million.
At December 31, 2023, the Company had outstanding provisionally priced sales of 15,537 ounces of gold at an average price of $2,032. Changes in gold prices resulted in provisional pricing mark-to-market gain of $30 thousand during the twelve months ended December 31, 2023. A 10% change in realized gold prices would cause revenue to vary by $3.2 million.
At December 31, 2022, the fair value of the gold forward contracts was an asset of $12.3 million. For the year ended December 31, 2022, the Company recognized a gain of $28.5 million related to expired contracts in Revenue and the remaining outstanding forwards contracts were included in accumulated other comprehensive income (loss) .
For the year ended December 31, 2023, the Company recognized gains of $3.7 million and $7.0 million related to expired gold and silver contracts, respectively, in Revenue and the remaining outstanding gold and silver forward contracts were included in Accumulated other comprehensive income (loss) .
A 10% increase and decrease in the price of gold at December 31, 2022 would result in a net realized loss and gain of $4.8 million and $44.3 million, respectively. The December 31, 2022 closing price of gold was $1,814 per ounce. As of February 22, 2023, the closing price of gold was $1,836 per ounce.
A 10% increase and decrease in the price of gold at December 31, 2023 would result in a net realized loss and gain of $14.8 million and $23.7 million, respectively. A 10% increase and decrease in the price of silver at December 31, 2023 would result in a net realized loss and gain of $3.8 million and $11.1 million, respectively.
Investment Risk Equity Price Risk The Company is exposed to changes in the fair value of our investments in equity securities. For the year ended December 31, 2022, the Company recognized unrealized losses of $47.9 million in Fair value adjustments, net due to decreases in the stock price of those equity securities.
Investment Risk Equity Price Risk The Company is exposed to changes in the fair value of our investments in equity securities. The Company had no equity securities at December 31, 2023.
The Company is targeting to hedge up to 70% of expected gold production and 50% of expected silver production for 2023 in order to protect cash flow during a period of elevated capital expenditures, and may in the future layer on additional hedges as circumstances warrant.
The Company had outstanding forward contracts on 94,950 and 3.1 million ounces of gold and silver, respectively, at December 31, 2023 that settle monthly through June 2024 in order to protect cash flow during the Rochester expansion ramp up, and may in the future layer on additional hedges as circumstances warrant.
Removed
The Company had outstanding forward contracts on 130,500 ounces of gold at December 31, 2022 that settle monthly through December 2023.
Added
At December 31, 2023, the fair value of the gold forward contracts was a liability of $2.0 million and the fair value of the silver forward contracts was an asset of $3.3 million.
Removed
At December 31, 2022, the fair value of the equity securities was $44.2 million. A 10% change in realized equity prices would result in an unrealized gain or loss of $4.4 million.
Added
The December 31, 2023 closing price of gold and silver was $2,078 and $23.79 per ounce, respectively. As of February 20, 2024, the closing price of gold and silver was $2,029 and $23.06, per ounce, respectively.

Other CDE 10-K year-over-year comparisons