# Coeur Mining, Inc.: Form 10-Q for the period ended Sep 30, 2023

- Company: [Coeur Mining, Inc.](/companies/cde.md) (CIK 215466)
- Form: 10-Q
- Filed: 2023-11-08
- Accepted by EDGAR: Nov 8, 2023, 16:40 ET
- Period: 2023-09-30
- Accession: 0000215466-23-000146
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/215466/000021546623000146/cde-20230930.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/215466/000021546623000146/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2023-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2023-07-01 to 2023-09-30 | $194.6m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2023-01-01 to 2023-09-30 | $559.1m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Interest expense | 3 months, 2023-07-01 to 2023-09-30 | $7.4m | us-gaap:InterestExpense |
| Interest expense | 9 months, 2023-01-01 to 2023-09-30 | $21.7m | us-gaap:InterestExpense |
| Income tax | 3 months, 2023-07-01 to 2023-09-30 | $6.1m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2023-01-01 to 2023-09-30 | $26.7m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2023-07-01 to 2023-09-30 | −$21.1m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2023-01-01 to 2023-09-30 | −$78.1m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2023-07-01 to 2023-09-30 | −$0.06 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2023-01-01 to 2023-09-30 | −$0.24 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2023-07-01 to 2023-09-30 | −$0.06 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2023-01-01 to 2023-09-30 | −$0.24 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2023-07-01 to 2023-09-30 | 356,676,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2023-01-01 to 2023-09-30 | 330,440,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2023-07-01 to 2023-09-30 | −$2.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Operating cash flow | 9 months, 2023-01-01 to 2023-09-30 | $2.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2023-07-01 to 2023-09-30 | $112.3m | us-gaap:PaymentsToAcquireProductiveAssets |
| Capital expenditure | 9 months, 2023-01-01 to 2023-09-30 | $271.9m | us-gaap:PaymentsToAcquireProductiveAssets |
| Cash and equivalents | at 2023-09-30 | $53.2m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2023-09-30 | $297.2m | us-gaap:AssetsCurrent |
| Total assets | at 2023-09-30 | $2.07bn | us-gaap:Assets |
| Current liabilities | at 2023-09-30 | $283.5m | us-gaap:LiabilitiesCurrent |
| Current portion of debt | at 2023-09-30 | $22.1m | us-gaap:DebtCurrent |
| Shareholders' equity | at 2023-09-30 | $1.05bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 68,469 characters.

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

### Overview

We are primarily a gold and silver producer with operating assets located in the United States and Mexico and an exploration project in Canada.

### Third Quarter Highlights

For the quarter, Coeur reported revenue of $194.6 million and cash used in operating activities of $2.4 million. We reported GAAP net loss of $21.1 million, or $0.06 per diluted share. On a non-GAAP adjusted basis1, the Company reported EBITDA of $30.6 million and net loss of $18.6 million or $0.05 per diluted share. For the nine months ended September 30, 2023, Coeur reported revenue of $559.1 million and cash provided by operating activities of $2.0 million. We reported GAAP net loss of $78.1 million, or $0.24 per diluted share. On a non-GAAP adjusted basis1, the Company reported EBITDA of $78.0 million and net loss of $71.8 million or $0.22 per diluted share.

- **Increased revenue and adjusted EBITDA driven by stronger gold production and lower costs –** Revenue increased 10% and adjusted EBITDA increased 38% quarter-over-quarter, due to a 15% quarter-over-quarter increase in gold production and a 13% quarter-over-quarter decline in adjusted costs applicable to sales per gold ounce
- **Rochester expansion project now complete –** First production from the new leach pad and process plant was achieved in mid-September. The legacy crushing circuit is now being decommissioned in preparation of mining expected to begin in that location in 2024
- **Material step-up in Rochester production now occurring –** During the month of October, Rochester recovered 537,000 ounces of silver and 8,050 ounces of gold, which is more than double the year-to-date monthly average silver production and more than triple the year-to-date monthly average gold production
- **Gold production and cost guidance updated; silver guidance remains unchanged –** A stronger anticipated fourth quarter at Wharf is expected to offset adjusted gold production guidance at Kensington. The low end of total 2024 production guidance remains unchanged and the overall range has narrowed to 304,000 - 342,500 ounces. Additionally, Kensington cost guidance has been revised to reflect the impact of revised production expectations. Silver full-year production guidance of 10 - 12 million ounces remains unchanged
- **Balance sheet and hedging initiatives supporting remaining capital requirements –** With elevated capital investment levels related to the recently completed Rochester expansion expected through year-end, Coeur ended the quarter with total liquidity of approximately $280 million. Realized and unrealized gains from the Company’s 2023 gold and silver hedges total nearly $20 million at quarter-end, providing meaningful downside protection through this period of capital intensity

### Selected Financial and Operating Results

| Financial Results: (in thousands, except per share amounts) | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Gold sales | $139,503 | $121,355 | $387,959 | $415,257 |
| Silver sales | $55,080 | $55,880 | $171,157 | $160,263 |
| Consolidated Revenue | $194,583 | $177,235 | $559,116 | $575,520 |
| Net income (loss) | $(21,109) | $(32,412) | $(78,107) | $(127,196) |
| Net income (loss) per share, diluted | $(0.06) | $(0.10) | $(0.24) | $(0.47) |
| Adjusted net income (loss)(1) | $(18,619) | $(20,153) | $(71,829) | $(71,607) |
| Adjusted net income (loss) per share, diluted(1) | $(0.05) | $(0.06) | $(0.22) | $(0.26) |
| EBITDA(1) | $15,274 | $3,961 | $35,454 | $(12,898) |
| Adjusted EBITDA(1) | $30,648 | $22,235 | $78,012 | $103,154 |
| Total debt(2) | $512,241 | $469,386 | $512,241 | $635,679 |
| **Operating Results:** |  |  |  |  |
| Gold ounces produced | 78,617 | 68,406 | 216,062 | 242,619 |
| Silver ounces produced | 2,277,386 | 2,388,141 | 7,200,410 | 7,345,171 |
| Gold ounces sold | 78,015 | 67,090 | 215,971 | 241,779 |
| Silver ounces sold | 2,213,735 | 2,337,413 | 7,140,067 | 7,289,084 |
| Average realized price per gold ounce | $1,788 | $1,809 | $1,796 | $1,718 |
| Average realized price per silver ounce | $24.88 | $23.91 | $23.97 | $21.99 |

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

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

### Consolidated Financial Results

### Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

### Revenue

We sold 78,015 gold ounces and 2.2 million silver ounces, compared to 67,090 gold ounces and 2.3 million silver ounces. Revenue increased by $17.3 million, or 10%, as a result of a 16% increase gold ounces sold and a 4% increase in average realized silver prices, partially offset by a 5% decrease in silver ounces sold and a 1% decrease in average realized gold prices. The increase in gold ounces sold was primarily due to higher mill throughput at Palmarejo and Kensington, higher grades at Kensington, partially offset by the timing of production from Rochester’s new leach pad related to startup of the new process plant and timing of recoveries at Wharf. The decrease in silver ounces sold was primarily due to lower silver grades at Palmarejo and the timing of production on the new leach pad related to startup of the new process plant. Gold and silver represented 72% and 28% of third quarter 2023 sales revenue, respectively, compared to 68% and 32% of second quarter 2023 sales revenue, respectively.

The following table summarizes consolidated metal sales:

*In thousands*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Increase (Decrease) | Percentage Change |
| --- | ---: | ---: | ---: | ---: |
| Gold sales | $139,503 | $121,355 | $18,148 | 15% |
| Silver sales | 55,080 | 55,880 | (800) | (1)% |
| Metal sales | $194,583 | $177,235 | $17,348 | 10% |

26

### Costs Applicable to Sales

Costs applicable to sales increased $8.3 million, or 6%, primarily due to higher gold ounces sold and a higher net realizable value (“LCM”) adjustments at Rochester. For a complete discussion of costs applicable to sales, see *Results of Operations* below.

### Amortization

Amortization increased $3.3 million, or 17% primarily due to an increase in gold ounces sold and the commencement of production of the new leach pad in mid-September 2023 at Rochester.

### Expenses

General and administrative expenses decreased $0.3 million, or 3%, primarily due to lower employee incentive related costs.

Exploration expense increased $9.5 million, or 326%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip.

Pre-development, reclamation, and other expenses decreased $1.4 million, or 14%, stemming from lower ongoing carrying costs at Silvertip.

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

*In thousands*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Increase (Decrease) | Percentage Change |
| --- | ---: | ---: | ---: | ---: |
| COVID-19 | $14 | $21 | $(7) | (33)% |
| Silvertip ongoing carrying costs | 2,780 | 4,609 | (1,829) | (40)% |
| Asset retirement accretion | 4,153 | 4,073 | 80 | 2% |
| Other | 1,733 | 1,345 | 388 | 29% |
| Pre-development, reclamation and other expense | $8,680 | $10,048 | $(1,368) | (14)% |

### Other Income and Expenses

During the third quarter of 2023, the Company incurred a $0.8 million gain in connection with the exchange of $19.3 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 7.6 million shares of common stock. During the second quarter of 2023, the Company incurred a $3.0 million gain in connection with the exchange of $48.5 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 13.9 million shares of common stock.

Fair value adjustments, net, decreased to a loss of $2.0 million compared to $3.9 million 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 $4.1 million) increased to $7.4 million from $6.9 million due to higher interest paid under the RCF as a result of increasing interest rates, partially offset by higher capitalized interest, and lower interest payable following the extinguishment of $67.8 million in 2029 Senior Notes.

Other, net decreased to a gain of $0.5 million compared to a loss of $9.9 million as a result of the $12.3 million loss recognized from the sale of La Preciosa Deferred Consideration in the second quarter of 2023.

### Income and Mining Taxes

Income and mining tax expense of approximately $6.1 million resulted in an effective tax rate of (40.6)% for the three months ended September 30, 2023. This compares to income tax expense of $9.9 million for an effective tax rate of (43.8)% for the three months ended June 30, 2023. 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 rate; (v) the sale of non-core assets; (vi) percentage depletion; and (vii) the impact of uncertain tax positions. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

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

*In thousands*

|  | Three Months Ended September 30, 2023 Income (loss) before tax | Tax (expense) benefit | Three Months Ended June 30, 2023 Income (loss) before tax | Tax (expense) benefit |
| --- | ---: | ---: | ---: | ---: |
| United States | $(22,674) | $(1,565) | $(35,540) | $(2,264) |
| Canada | (9,345) | — | (4,410) | — |
| Mexico | 17,111 | (4,532) | 17,534 | (7,602) |
| Other jurisdictions | (104) | — | (130) | — |
|  | $(15,012) | $(6,097) | $(22,546) | $(9,866) |

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

### Net Loss

Net loss was $21.1 million, or $0.06 per diluted share, compared to $32.4 million, or $0.10 per diluted share. The decrease in net loss was driven by a 16% increase gold ounces sold, a 4% increase in average realized silver prices, favorable changes in the fair value of the Company’s equity investments, and a $12.3 million loss on the sale of the La Preciosa Deferred Consideration recognized in the second quarter of 2023. This was partially offset by a 5% decrease in silver ounces sold, a 1% decrease in average realized gold prices, a higher LCM adjustment at Rochester, and higher exploration costs. Adjusted net loss was $18.6 million, or $0.05 per diluted share, compared to $20.2 million, or $0.06 per diluted share (see “Non-GAAP Financial Performance Measures”).

### Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

### Revenue

We sold 215,971 gold ounces and 7.1 million silver ounces, compared to 241,779 gold ounces and 7.3 million silver ounces. Revenue decreased by $16.4 million, or 3%, as a result of a 11% and 2% decrease in gold and silver ounces sold, respectively, partially offset by a 5% and 9% increase in average realized gold and silver prices, respectively. The decrease in gold ounces sold was primarily due to lower mill throughput at Palmarejo and Kensington, lower grades and recoveries at Kensington, and the timing of production from Rochester’s new leach pad related to startup of the new process plant, partially offset by higher grades at Wharf. The decrease in silver ounces sold was primarily due to lower mill throughput at Palmarejo, partially offset by the timing of recoveries and higher grades at Rochester. Gold and silver represented 69% and 31% of 2023 sales revenue, respectively, compared to gold and silver representing 72% and 28% of 2022 sales revenue, respectively.

The following table summarizes consolidated metal sales:

*In thousands*

|  | Nine Months Ended September 30, 2023 | September 30, 2022 | Increase (Decrease) | Percentage Change |
| --- | ---: | ---: | ---: | ---: |
| Gold sales | $387,959 | $415,257 | $(27,298) | (7)% |
| Silver sales | 171,157 | 160,263 | 10,894 | 7% |
| Metal sales | $559,116 | $575,520 | $(16,404) | (3)% |

### Costs Applicable to Sales

Costs applicable to sales decreased $6.5 million, or 1%, primarily due to lower gold and silver ounces sold and lower LCM adjustments at Rochester. For a complete discussion of costs applicable to sales, see *Results of Operations* below.

### Amortization

Amortization decreased $18.4 million primarily due to lower gold and silver ounces sold and longer assumed mine lives at Palmarejo, Rochester, Kensington and Wharf driven by prior year’s successful investments in exploration.

### Expenses

General and administrative expenses increased $2.1 million, or 7%, primarily due to higher employee incentive related costs and corporate administrative costs.

Exploration expense increased $0.9 million, or 5%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip, partially offset by the Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project recognized in the second quarter of 2023.

Pre-development, reclamation, and other expenses decreased $0.2 million, or 1%, stemming from lower ongoing carrying costs at Silvertip and lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, partially offset by higher asset retirement accretion.

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

*In thousands*

|  | Nine Months Ended September 30, 2023 | 2022 | Increase (Decrease) | Percentage Change |
| --- | ---: | ---: | ---: | ---: |
| COVID-19 | $92 | $1,585 | $(1,493) | (94)% |
| Silvertip ongoing carrying costs | 13,569 | 15,542 | (1,973) | (13)% |
| Asset retirement accretion | 12,219 | 10,588 | 1,631 | 15% |
| Other | 3,738 | 2,124 | 1,614 | 76% |
| Pre-development, reclamation and other expense | $29,618 | $29,839 | $(221) | (1)% |

### Other Income and Expenses

During the first nine months of 2023, the Company incurred a $3.7 million gain in connection with the exchange of $67.8 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 21.6 million shares of common stock.

Fair value adjustments, net, increased to a gain of $4.6 million compared to a loss $65.3 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 $9.4 million) increased to $21.7 million from $15.7 million due to higher interest paid under the RCF attributable to higher average debt levels and interest rates, partially offset by lower interest payable following the extinguishment of $67.8 million in 2029 Senior Notes.

Other, net decreased to a loss of $10.4 million compared to a gain of $2.2 million, as a result of the $12.3 million loss recognized from the sale of the La Preciosa Deferred Consideration.

### Income and Mining Taxes

During the nine months of 2023, income and mining tax expense of approximately $26.7 million resulted in an effective tax rate of (51.9)% for 2023. This compares to income tax expense of $15.1 million for an effective tax rate of (13.4)% for 2022. 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) the sale of non-core assets; (iv) mining taxes; (v) foreign exchange rates; (vi) the impact of uncertain tax positions; (vii) percentage depletion; and (viii) the non-recognition of tax assets. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

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

*In thousands*

|  | Nine Months Ended September 30, 2023 Income (loss) before tax | Tax (expense) benefit | 2022 Income (loss) before tax | Tax (expense) benefit |
| --- | ---: | ---: | ---: | ---: |
| United States | $(83,994) | $(4,847) | $(154,263) | $(2,270) |
| Canada | (23,049) | — | (22,859) | (21) |
| Mexico | 56,045 | (21,824) | 64,847 | (12,788) |
| Other jurisdictions | (438) | — | 158 | — |
|  | $(51,436) | $(26,671) | $(112,117) | $(15,079) |

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

### Net Loss

Net loss was $78.1 million, or $0.24 per diluted share, compared to $127.2 million, or $0.47 per diluted share. The decrease in net loss was driven by a 5% and 9% increase in average realized gold and silver prices, respectively, decreased LCM adjustments at Rochester, favorable changes in the fair value of the Company’s equity investments, and a $3.7 million gain in connection with the exchange of 2029 Senior Notes. This was partially offset by a 11% and 2% decrease in gold and silver ounces sold, respectively, higher losses on the sale of assets, interest expense and income and mining taxes. Adjusted net loss was $71.8 million, or $0.22 per diluted share, compared to $71.6 million, or $0.26 per diluted share (see “Non-GAAP Financial Performance Measures”).

### 2023 Guidance

The Company has made the following changes to its 2023 gold production and cost guidance: (i) the low end of Wharf’s gold production guidance has been revised upward; and (ii) Kensington’s 2023 gold production and cost guidance have been refined to reflect the cumulative impact of paste backfill challenges at Kensington earlier in the year.

### 2023 Production Guidance

| Palmarejo Rochester | Previous Gold (oz) 100,000 - 112,500 35,000 - 50,000 | Silver (K oz) 6,500 - 7,500 3,500 - 4,500 | Updated Gold (oz) 100,000 - 112,500 35,000 - 50,000 | Silver (K oz) 6,500 - 7,500 3,500 - 4,500 |
| --- | --- | ---: | --- | ---: |
| **Kensington** | 84,000 - 95,000 | — | 81,000 - 85,000 | — |
| **Wharf** | 85,000 - 95,000 | — | 88,000 - 95,000 | — |
| **Total** | 304,000 - 352,500 | 10,000 - 12,000 | 304,000 - 342,500 | 10,000 - 12,000 |

### 2023 Costs Applicable to Sales Guidance

| Palmarejo (co-product) | Previous Gold ($/oz) $900 - $1,050 | Silver ($/oz) $14.25 - $15.25 | Updated Gold ($/oz) $900 - $1,050 | Silver ($/oz) $14.25 - $15.25 |
| --- | --- | ---: | --- | ---: |
| **Rochester (co-product)** | — | — | — | — |
| **Kensington** | $1,650 - $1,750 | — | $1,850 - $1,950 | — |
| **Wharf (by-product)** | $1,200 - $1,350 | — | $1,200 - $1,350 | — |

30

The Company expects second half 2023 CAS at Rochester to be similar to actual first half 2023 CAS as Coeur completes and ramps up the expansion project.

### 2023 Capital, Exploration and G&A Guidance

|  | ($M) |
| --- | --- |
| **Capital Expenditures, Sustaining** | $148 - $168 |
| **Capital Expenditures, Development** | $230 - $264 |
| **Exploration, Expensed** | $30 - $35 |
| **Exploration, Capitalized** | $10 - $15 |
| **General & Administrative Expenses** | $36 - $40 |

Note: The Company’s previous 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. The Company’s updated guidance figures assume estimated prices of $1,900/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN of 20.00. Guidance figures exclude the impact of any metal sales or foreign exchange hedges.

### Results of Operations

### Palmarejo

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Tons milled | 501,722 | 472,622 | 1,507,950 | 1,643,561 |
| Average gold grade (oz/t) | 0.055 | 0.056 | 0.054 | 0.053 |
| Average silver grade (oz/t) | 3.67 | 4.10 | 3.93 | 3.78 |
| Average recovery rate – Au | 97.6% | 87.4% | 91.7% | 92.0% |
| Average recovery rate – Ag | 86.9% | 83.5% | 83.9% | 84.0% |
| Gold ounces produced | 26,870 | 23,216 | 75,204 | 80,847 |
| Silver ounces produced | 1,600,927 | 1,616,986 | 4,970,343 | 5,219,628 |
| Gold ounces sold | 26,018 | 22,207 | 74,195 | 81,905 |
| Silver ounces sold | 1,533,975 | 1,560,743 | 4,889,877 | 5,205,011 |
| CAS per gold ounce(1) | $924 | $1,028 | $950 | $844 |
| CAS per silver ounce(1) | $15.67 | $15.22 | $15.01 | $12.76 |

(1) See Non-GAAP Financial Performance Measures.

#### Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold and silver production increased 16% and decreased 1%, respectively, as a result of 6% increase mill throughput, higher gold and silver recoveries, and 2% and 10% lower gold and silver grades, respectively. Metal sales were $77.3 million, or 40% of Coeur’s metal sales, compared with $72.7 million, or 41% of Coeur’s metal sales. Revenue increased by $4.6 million or 6%, of which $5.0 million was due to a higher gold production, partially offset by a decrease of $0.4 million due to lower gold prices. Costs applicable to sales per gold ounce decreased 10% and per silver ounce increased 3%, due to the mix of gold and silver sales and a strengthening Mexican Peso. Amortization of $9.0 million was in-line with prior quarter. Capital expenditures decreased to $10.8 million from $11.9 million due to lower expenditures related to the open pit backfill project and underground development.

#### Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold and silver production decreased 7% and 5%, respectively as a result of 8% lower mill throughput, partially offset by 2% and 4% higher gold and silver grades, respectively. Metal sales were $232.3 million, or 42% of Coeur’s metal sales, compared with $233.9 million, or 41% of Coeur’s metal sales. Revenue decreased by $1.6 million or 1%, of which $19.5 million was due to a lower volume of gold and silver production, partially offset by an increase of $17.9 million due to higher average realized gold and silver prices. Costs applicable to sales per gold and silver ounce increased 13% and 18%, respectively, due to the mix of gold and silver sales, lower production, higher employee-related and consumable costs primarily due to continued inflationary pressures and a strengthening Mexican Peso. Amortization decreased to $25.8 million due to a decrease in gold and silver ounces sold and longer assumed mine life. Capital expenditures decreased to $32.8 million from $34.5 million due to lower infill drilling activities.

### Rochester

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Tons placed(1) | 3,487,173 | 2,690,840 | 8,634,599 | 12,165,685 |
| Average gold grade (oz/t) | 0.003 | 0.003 | 0.003 | 0.003 |
| Average silver grade (oz/t) | 0.50 | 0.42 | 0.46 | 0.35 |
| Gold ounces produced | 4,459 | 6,314 | 18,928 | 23,146 |
| Silver ounces produced | 607,735 | 682,656 | 2,051,737 | 2,089,225 |
| Gold ounces sold | 4,432 | 6,493 | 19,274 | 22,724 |
| Silver ounces sold | 606,083 | 694,657 | 2,070,544 | 2,054,176 |
| CAS per gold ounce(2) | $2,549 | $1,726 | $2,219 | $2,609 |
| CAS per silver ounce(2) | $31.74 | $21.39 | $27.38 | $30.04 |

(1) During the three months ended September 30, 2023, 743,551 and 2,743,622 tons were placed on legacy and new leach pads, respectively. During the nine months ended September 30, 2023, 2,407,785 and 6,226,814 tons were placed on legacy and new leach pads, respectively. During the nine months ended September 30, 2022, 11,889,398 and 276,287 tons were placed on legacy and new leach pads, respectively.

(2) See Non-GAAP Financial Performance Measures.

#### Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold and silver production decreased 29% and 11%, respectively, as a result of the timing of recoveries primarily due to Rochester preparing to transition from the legacy leach pad to the new leach pad associated with the Rochester expansion. Approximately 80% of the tons placed in the third quarter of 2023 were placed onto the new leach pad, which commenced production in mid-September 2023. Metal sales were $23.6 million, or 12% of Coeur’s metal sales, compared with $29.1 million, or 16% of Coeur’s metal sales. Revenue decreased by $5.5 million, or 19%, of which $6.2 million was due to a lower volume of gold and silver production, partially offset by an increase of $0.7 million due to higher average realized gold prices. Costs applicable to sales per gold and silver ounce increased 48% due to a higher LCM adjustment of $7.7 million compared to $1.6 million in the prior period. Amortization increased to $4.2 million due to commencement of production of the new leach pad in mid-September 2023. Capital expenditures increased to $84.4 million from $61.5 million due to timing of payments related to the Rochester expansion project.

#### Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold and silver production decreased 18% and 2%, respectively, primarily due to the timing of recoveries. Metal sales were $86.6 million, or 15% of Coeur’s metal sales, compared with $87.0 million, or 15% of Coeur’s metal sales. Revenue decreased by $0.4 million, or 0%, of which $6.3 million was due to a lower volume of silver production, partially offset by an increase of $5.9 million due to higher average realized gold and silver prices. Costs applicable to sales per gold and silver ounce decreased 15% and 9%, respectively, due to the mix of gold and silver sales, lower LCM adjustments of $22.4 million compared to $38.0 million in the prior period, lower diesel costs, partially offset by higher employee-related, and maintenance costs. Amortization decreased to $13.0 million due to longer assumed mine life. Capital expenditures increased to $197.8 million from $154.0 million due to timing of payments related to the Rochester expansion project.

Construction of the new three-stage crushing circuit is now complete and first production from the new leach pad and process plant began in mid-September. Commissioning of the process plant is complete and commissioning of the new crusher corridor is underway, with ramp-up expected throughout the remainder of 2023 and into the first half of 2024.

Once operating at full capacity, throughput levels are expected to average 32 million tons per year, which is approximately 2.5 times higher than historical levels, making Rochester one of the largest open pit heap leach operations in the world. The total estimated capital for the project remains at $710 - $730 million.

### Kensington

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Tons milled | 167,950 | 152,907 | 474,194 | 516,936 |
| Average gold grade (oz/t) | 0.16 | 0.09 | 0.13 | 0.16 |
| Average recovery rate | 92.6% | 90.9% | 91.7% | 92.5% |
| Gold ounces produced | 24,614 | 13,193 | 58,103 | 78,726 |
| Gold ounces sold | 24,516 | 13,273 | 58,691 | 78,109 |
| CAS per gold ounce(1) | $1,559 | $2,945 | $1,953 | $1,484 |

(1) See Non-GAAP Financial Performance Measures.

#### Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold production increased 87% as a result of 78% higher grades and 10% higher milled throughput. Metal sales were $46.5 million, or 24% of Coeur’s metal sales, compared to $24.6 million, or 14% of Coeur’s metal sales. Revenue increased by $21.9 million, or 89%, of which $21.4 million resulted from a higher volume of gold production, and $0.5 million due to higher average realized gold prices. Costs applicable to sales per gold ounce decreased 47% due to higher production. Amortization increased to $6.9 million primarily due to an increase in gold ounces sold. Capital expenditures increased to $15.8 million from $11.7 million due to higher underground development.

#### Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold production decreased 26% as a result of 8% lower throughput primarily due to challenges with mine sequencing and stope extraction as well as lower grades and recoveries. Metal sales were $111.3 million, or 20% of Coeur’s metal sales, compared to $143.7 million, or 25% of Coeur’s metal sales. Revenue decreased by $32.3 million, or 23%, of which $36.6 million resulted from a lower volume of gold production, partially offset by an increase of $4.2 million due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 32% due to lower production partially offset by lower diesel and employee-related costs. Amortization decreased to $17.5 million primarily due to a decrease in gold ounces sold and longer assumed mine life. Capital expenditures increased to $38.2 million from $23.8 million due to higher infill drilling and underground development.

### Wharf

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Tons placed | 1,254,267 | 1,041,846 | 3,452,907 | 3,530,855 |
| Average gold grade (oz/t) | 0.023 | 0.022 | 0.026 | 0.020 |
| Gold ounces produced | 22,674 | 25,683 | 63,827 | 59,900 |
| Silver ounces produced | 68,724 | 88,499 | 178,330 | 36,318 |
| Gold ounces sold | 23,049 | 25,117 | 63,811 | 59,041 |
| Silver ounces sold | 73,677 | 82,013 | 179,646 | 29,897 |
| CAS per gold ounce(1) | $1,268 | $1,031 | $1,224 | $1,244 |

(1) See Non-GAAP Financial Performance Measures.

#### Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold production decreased 12% driven by timing of recoveries. Metal sales were $47.1 million, or 24% of Coeur’s metal sales, compared to $50.8 million, or 29% of Coeur’s metal sales. Revenue decreased by $3.7 million, or 7%, of which $4.3 million was due to a lower gold production, partially offset by an increase of $0.6 million due to higher average realized gold prices. Costs applicable to sales per gold ounce increased 23% due to lower production and higher operating costs. Amortization decreased to $1.6 million due to a decrease in gold ounces sold. Capital expenditures were $0.7 million.

#### Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold production increased 7% driven by higher grades. Metal sales were $128.8 million, or 23% of Coeur’s metal sales, compared to $110.9 million, or 19% of Coeur’s metal sales. Revenue increased by $17.9 million, or 16%, of which $12.9 million was due to a higher volume of gold production, and $5.0 million due to higher average realized gold prices. Costs applicable to sales per gold ounce decreased 2% due to lower operating costs driven by lower diesel and other consumable costs. Amortization decreased to $4.8 million due to longer assumed mine life. Capital expenditures were $1.0 million.

### Silvertip

#### Nine Months Ended September 30, 2023

Ongoing carrying costs at Silvertip totaled $13.6 million in the nine months ended September 30, 2023 and $15.5 million in 2022. Capital expenditures in 2023 totaled $1.4 million compared to $21.4 million in the prior year due to planned reduction in capital development expenditures.

Since acquisition, exploration at Silvertip has been consistently successful, with demonstrated resource growth. Multiple new zones have been discovered, resulting in significant increases in resources. In addition, the full geochemical and metal zonation of the deposit is being studied including the critical minerals indium, germanium and gallium that are present in the ore body. The Company anticipates a slower overall timeline to advance the Silvertip project, with the primary focus on growth and achieving a better understanding of the overall deposit. Consistent with Silvertip’s status as a long-term exploration project, the Company reclassified its mineral reserves to measured and indicated resources as of year-end 2022.

Coeur focused on compiling, analyzing and interpreting historical data during the first nine months of the year to increase the understanding of the geological context and mineralization system. Significant work on logging, data collection, analysis and interpretation is ongoing as part of this effort. A new detailed geological model will be compiled to support year-end resource calculations at the end of 2023.

### Liquidity and Capital Resources

At September 30, 2023, the Company had $54.9 million of cash, cash equivalents and restricted cash and $220.4 million available under the RCF. Future borrowing under the RCF may be subject to certain financial covenants. Cash and cash equivalents decreased $8.2 million in the nine months ended September 30, 2023, due to 11% and 2% decrease in gold and silver ounces sold, respectively, $271.9 million of capital expenditures primarily related to the Rochester expansion project and higher costs at our operations due to continued inflationary pressures, partially offset by aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, $39.8 million received from the sale of 6.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”), and net proceeds of $28.7 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering (as defined below). Additionally, the Company received net proceeds of $7.0 million from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the Avino note receivable, net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation, and a 5% and 9% increase in average realized gold and silver prices, respectively.

At September 30, 2023, the Company had $140.0 million drawn, $29.6 million in outstanding letters of credit and $220.4 million available under the RCF. On August 9, 2023, the Company entered into an amendment (the “August Amendment”) to the RCF. 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 the 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.

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. At September 30, 2023, the Company held $7.2 million of equity securities.

In May 2023, the Company sold 3.7 million shares of common stock of Integra Resources Corporation (“Integra Common Shares”) at a price of $0.48 per share, for net proceeds of $1.8 million.

In March 2023, the Company completed a $100.0 million “at the market” offering of its common stock, par value $0.01 per share (the “March 2023 Equity Offering”). 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.

In June 2023, the Company sold a total of 5,276,154 shares of its common stock (“Private Placement Offering”) issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), raising net proceeds of $18.2 million, of which $5.1 million represents net proceeds received in excess of the Company’s average price (“FT Premium Liability”). The proceeds of the issuance of FT Shares will be used by the Company for certain qualifying “Canadian Exploration Expenditures” (as such term is defined in the Income Tax Act (Canada)). The Company granted an over-allotment option of up to 3,000,000 additional flow-through shares, which was exercised in full and closed on July 20, 2023. The over-allotment option raised net proceeds of $10.5 million, including an additional $2.7 million of FT Premium Liability.

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”). 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.

The Company had outstanding forward contracts on 55,749 ounces of gold and 1.2 million ounces of silver at September 30, 2023 that settle monthly through December 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 weighted average fixed price on the forward contracts is $1,977 per ounce of gold and $25.47 per ounce of silver.

In the first nine months of 2023, the Company exchanged $67.8 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 21.6 million shares of common stock.

We currently believe we have sufficient sources of funding to meet our business requirements for the next twelve months and longer-term. We expect to use 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 2023 capital expenditure guidance. 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.

If and to the extent liquidity resources are insufficient to support short- and long-term expenditures, we may need to incur additional indebtedness or issue additional equity securities, among other financing options, which may not be available on acceptable terms or at all. This could have a material adverse impact on the Company, as discussed in more detail under Item 1A – Risk Factors in the 2022 10-K and Part II, Item 1A of this Report.

### Cash Provided by (Used in) Operating Activities

Net cash used in operating activities for the three months ended September 30, 2023 was $2.4 million, compared to net cash provided by operating activities of $39.4 million for the three months ended June 30, 2023. Net cash provided by operating activities for the nine months ended September 30, 2023 was $2.0 million, compared to net cash used in operating activities of $2.9 million for the nine months ended September 30, 2022. Adjusted EBITDA for the three months ended September 30, 2023 was $30.6 million, compared to $22.2 million for the three months ended June 30, 2023. Adjusted EBITDA for the nine months ended September 30, 2023 was $78.0 million, compared to $103.2 million for the nine months ended September 30, 2022 (see “Non-GAAP Financial Performance Measures”). Net cash provided by operating activities was impacted by the following key factors for the applicable periods:

*In thousands*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Cash flow before changes in operating assets and liabilities | $14,187 | $(6,920) | $13,490 | $52,224 |
| Changes in operating assets and liabilities: |  |  |  |  |
| Receivables | (478) | (913) | 1,659 | 4,099 |
| Prepaid expenses and other | (3,000) | 4,260 | 764 | 939 |
| Inventories | (18,620) | (18,738) | (54,993) | (42,650) |
| Accounts payable and accrued liabilities | 5,528 | 61,708 | 41,091 | (17,512) |
| Cash provided by (used in) operating activities | $(2,383) | $39,397 | $2,011 | $(2,900) |

Net cash provided operating activities decreased $41.8 million for the three months ended September 30, 2023 compared to the three months ended June 30, 2023, primarily as a result of a 5% decrease in silver ounces sold, a 1% decrease in average realized gold prices, higher exploration costs of $9.5 million, lower metal sales prepayments of $15.0 million received in the third quarter of 2023, and the timing of interest payments, partially offset by a 16% increase gold ounces sold and a 4% increase in average realized silver prices. Revenue for the three months ended September 30, 2023 compared to the three months ended June 30, 2023 increased by $17.3 million, of which $16.5 million was due to the higher volume of gold sales, and $0.9 million as the result of higher average realized silver prices.

Net cash provided by operating activities increased $4.9 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022, primarily due to a 5% and 9% increase in average realized gold and silver prices, respectively, the receipt of $30.0 million of prepayments in the third quarter of 2023, and the receipt of $7.8 million FT Premium Liability, partially offset by a 11% and 2% decrease in gold and silver ounces sold, respectively, higher operating and costs, and timing of VAT collections at Palmarejo. Revenue for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 decreased by $16.4 million, of which $49.9 million was due to a lower volume of gold and silver sales, partially offset by $33.5 million as the result of higher average realized gold and silver prices.

### Cash Provided by Investing Activities

Net cash used in investing activities in the three months ended September 30, 2023 was $112.2 million compared to $75.6 million in the three months ended June 30, 2023. Cash used in investing activities increased primarily due to higher capital expenditures and net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, and net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation in the second quarter of 2023. The Company incurred capital expenditures of $112.3 million in the three months ended September 30, 2023 compared with $85.6 million in the three months ended June 30, 2023 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the nine months ended September 30, 2023 was $217.1 million compared to $182.9 million in the nine months ended September 30, 2022. Cash used in investing activities increased due to higher capital expenditures and the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in 2022, partially offset by net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the collection of amounts due under the promissory note issued in connection with the sale of the La Preciosa project, and net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation. The Company incurred capital expenditures of $271.9 million in the nine months ended September 30, 2023 compared with $239.3 million in the nine months ended September 30, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

### Cash Provided by Financing Activities

Net cash provided by financing activities in the three months ended September 30, 2023 was $111.2 million compared to $25.9 million in the three months ended June 30, 2023. During the three months ended September 30, 2023, the Company drew $60.0 million, net, under the RCF, received net proceeds of $49.3 million from the sale of 21.7 million shares of its common stock in the September 2023 Equity Offering, and received net proceeds of $7.8 million from the sale of 3.0 million shares of its common stock issued as the FT Shares. During the three months ended June 30, 2023, the Company drew $20.0 million, net, under the RCF, and received net proceeds of $13.1 million from the sale of 5.3 million shares of its common stock issued as the FT Shares.

Net cash provided by financing activities in the nine months ended September 30, 2023 was $206.5 million compared to $204.3 million in the nine months ended September 30, 2022. During the nine months ended September 30, 2023, the Company drew $60.0 million, net, under the RCF, received aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, and received net proceeds of $20.9 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering. During the nine months ended September 30, 2022, the Company drew $135.0 million, net, from the RCF, and received net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock in the March 2022 Equity Offering.

### Critical Accounting Policies and Accounting Developments

See Note 2 - Summary of Significant Accounting Policies contained in the 2022 10-K and Note 2 - Summary of Significant Accounting Policies contained in this Report for the Company’s critical accounting policies and estimates.

### Other Liquidity Matters

We believe that our liquidity and capital resources in the U.S. are adequate to fund our U.S. operations and corporate activities. The Company has asserted indefinite reinvestment of earnings from its Mexican operations as determined by management’s judgment about and intentions concerning the future operations of the Company. The Company does not believe that the amounts reinvested will have a material impact on liquidity.

In order to reduce indebtedness, fund future cash interest payments and/or amounts due at maturity or upon redemption and for general working capital purposes, from time-to-time we may (1) issue equity securities for cash in public or private offerings or (2) repurchase certain of our debt securities for cash or in exchange for other securities, which may include secured or unsecured notes or equity, in each case in open market or privately negotiated transactions. We evaluate any such transactions in light of prevailing market conditions, liquidity requirements, contractual restrictions, and other factors. The amounts involved may be significant and any debt repurchase transactions may occur at a substantial discount to the debt securities’ face amount.

### Non-GAAP Financial Performance Measures

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

### Adjusted Net Income (Loss)

Management uses *Adjusted net income (loss)* to evaluate the Company’s operating performance, and to plan and forecast its operations. The Company believes the use of *Adjusted net income (loss)* reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management’s determination of the components of *Adjusted net income (loss*) are evaluated periodically and is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. *Adjusted net income (loss)* is reconciled to *Net income (loss)* in the following table:

*In thousands except per share amounts*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Net income (loss) | $(21,109) | $(32,412) | $(78,107) | $(127,196) |
| Fair value adjustments, net | 2,010 | 3,922 | (4,629) | 65,272 |
| Foreign exchange loss (gain) | 5 | 154 | 2,149 | 1,190 |
| (Gain) loss on sale of assets and securities | 19 | 12,622 | 12,650 | (2,365) |
| RMC bankruptcy distribution | — | (1,516) | (1,516) | — |
| Gain on debt extinguishment | (774) | (2,961) | (3,735) | — |
| COVID-19 costs | 14 | 21 | 92 | 1,585 |
| Other adjustments | 1,439 | 1,137 | 2,647 | (360) |
| Tax effect of adjustments(1) | (223) | (1,120) | (1,380) | (9,733) |
| **Adjusted net income (loss)** | $(18,619) | $(20,153) | $(71,829) | $(71,607) |
| **Adjusted net income (loss) per share, Basic** | $(0.05) | $(0.06) | $(0.22) | $(0.26) |
| **Adjusted net income (loss) per share, Diluted** | $(0.05) | $(0.06) | $(0.22) | $(0.26) |

(1) For the three months ended September 30, 2023, tax effect of adjustments of $0.2 million (-8%) is primarily related to fair value adjustments on the Company’s equity investments, and LCM adjustment recorded at Rochester. For the three months ended June 30, 2023, tax effect of adjustments of $1.1 million (-9%) is primarily related to fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

For the nine months ended September 30, 2023, tax effect of adjustments of $1.4 million (-25%) is primarily related to the fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester. For the nine months ended September 30, 2022, tax effect of adjustments of $9.7 million (-15%) 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.

### EBITDA and Adjusted EBITDA

Management uses *EBITDA* to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company believes the use of *EBITDA* reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. *Adjusted EBITDA* is a measure used in the indenture governing the 2029 Senior Notes and the RCF to determine our ability to make certain payments and incur additional indebtedness. *EBITDA* and *Adjusted EBITDA* do not represent, and should not be considered an alternative to, *Net income (Loss)* or *Cash Flow from Operations* as determined under GAAP. Other companies may calculate *Adjusted EBITDA* differently and those calculations may not be comparable to our presentation. *Adjusted EBITDA* is reconciled to *Net income (loss)* in the following table:

*In thousands except per share amounts*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Net income (loss) | $(21,109) | $(32,412) | $(78,107) | $(127,196) |
| Interest expense, net of capitalized interest | 7,402 | 6,912 | 21,703 | 15,670 |
| Income tax provision (benefit) | 6,097 | 9,866 | 26,671 | 15,079 |
| Amortization | 22,884 | 19,595 | 65,187 | 83,549 |
| **EBITDA** | 15,274 | 3,961 | 35,454 | (12,898) |
| Fair value adjustments, net | 2,010 | 3,922 | (4,629) | 65,272 |
| Foreign exchange (gain) loss | (421) | (627) | 107 | 972 |
| Asset retirement obligation accretion | 4,153 | 4,073 | 12,219 | 10,588 |
| Inventory adjustments and write-downs | 8,934 | 1,603 | 24,723 | 40,360 |
| (Gain) loss on sale of assets and securities | 19 | 12,622 | 12,650 | (2,365) |
| RMC bankruptcy distribution | — | (1,516) | (1,516) | — |
| Gain on debt extinguishment | (774) | (2,961) | (3,735) | — |
| COVID-19 costs | 14 | 21 | 92 | 1,585 |
| Other adjustments | 1,439 | 1,137 | 2,647 | (360) |
| **Adjusted EBITDA** | $30,648 | $22,235 | $78,012 | $103,154 |

### Free Cash Flow

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

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

*(Dollars in thousands)*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Cash flow from operations | $(2,383) | $39,397 | $2,011 | $(2,900) |
| Capital expenditures | 112,273 | 85,581 | 271,902 | 239,260 |
| Free cash flow | $(114,656) | $(46,184) | $(269,891) | $(242,160) |

### Operating Cash Flow Before Changes in Working Capital

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

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

*(Dollars in thousands)*

|  | Three Months Ended September 30, 2023 | June 30, 2023 | Nine Months Ended September 30, 2023 | September 30, 2022 |
| --- | ---: | ---: | ---: | ---: |
| Cash provided by (used in) operating activities | $(2,383) | $39,397 | $2,011 | $(2,900) |
| Changes in operating assets and liabilities: |  |  |  |  |
| Receivables | 478 | 913 | (1,659) | (4,099) |
| Prepaid expenses and other | 3,000 | (4,260) | (764) | (939) |
| Inventories | 18,620 | 18,738 | 54,993 | 42,650 |
| Accounts payable and accrued liabilities | (5,528) | (61,708) | (41,091) | 17,512 |
| Operating cash flow before changes in working capital | $14,187 | $(6,920) | $13,490 | $52,224 |

### Costs Applicable to Sales

Management uses CAS to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation. We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold 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. 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. Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.

### Three Months Ended September 30, 2023

| In thousands (except metal sales, per ounce or per pound amounts) | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| **Costs applicable to sales, including amortization (U.S. GAAP)** | $57,083 | $34,708 | $45,180 | $32,614 | $919 | $170,504 |
| **Amortization** | (9,024) | (4,176) | (6,894) | (1,588) | (919) | (22,601) |
| **Costs applicable to sales** | $48,059 | $30,532 | $38,286 | $31,026 | $— | $147,903 |
| **Metal Sales** |  |  |  |  |  |  |
| **Gold ounces** | 26,018 | 4,432 | 24,516 | 23,049 | — | 78,015 |
| **Silver ounces** | 1,533,975 | 606,083 | — | 73,677 | — | 2,213,735 |
| **Costs applicable to sales** |  |  |  |  |  |  |
| **Gold ($/oz)** | $924 | $2,549 | $1,559 | $1,268 |  |  |
| **Silver ($/oz)** | $15.67 | $31.74 |  |  | $— |  |

### Three Months Ended June 30, 2023

| In thousands (except metal sales, per ounce or per pound amounts) | Palmarejo | Rochester | Kensington | Wharf | Silvertip | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| **Costs applicable to sales, including amortization (U.S. GAAP)** | $54,608 | $29,717 | $43,950 | $29,634 | $1,021 | $158,930 |
| **Amortization** | (8,017) | (3,649) | (4,801) | (1,805) | (1,021) | (19,293) |
| **Costs applicable to sales** | $46,591 | $26,068 | $39,149 | $27,829 | $— | $139,637 |
| **Metal Sales** |  |  |  |  |  |  |
| **Gold ounces** | 22,207 | 6,493 | 13,273 | 25,117 | — | 67,090 |
| **Silver ounces** | 1,560,743 | 694,657 | — | 82,013 | — | 2,337,413 |
| **Costs applicable to sales** |  |  |  |  |  |  |
| **Gold ($/oz)** | $1,028 | $1,726 | $2,945 | $1,031 |  |  |
| **Silver ($/oz)** | $15.22 | $21.39 |  |  | $— |  |

41

### Nine Months Ended September 30, 2023

| 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)** | $169,675 | $112,508 | $132,356 | $87,201 | $3,161 | $504,901 |
| **Amortization** | (25,760) | (13,043) | (17,539) | (4,802) | (3,161) | (64,305) |
| **Costs applicable to sales** | $143,915 | $99,465 | $114,817 | $82,399 | $— | $440,596 |
| **Metal Sales** |  |  |  |  |  |  |
| **Gold ounces** | 74,195 | 19,274 | 58,691 | 63,811 |  | 215,971 |
| **Silver ounces** | 4,889,877 | 2,070,544 | — | 179,646 | — | 7,140,067 |
| **Costs applicable to sales** |  |  |  |  |  |  |
| **Gold ($/oz)** | $950 | $2,219 | $1,953 | $1,224 |  |  |
| **Silver ($/oz)** | $15.01 | $27.38 |  |  | $— |  |

### Nine Months Ended September 30, 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. GAAP)** | $162,682 | $137,580 | $144,870 | $80,596 | $3,778 | $529,506 |
| **Amortization** | (27,150) | (16,592) | (28,360) | (6,500) | (3,778) | (82,380) |
| **Costs applicable to sales** | $135,532 | $120,988 | $116,510 | $74,096 | $— | $447,126 |
| **Metal Sales** |  |  |  |  |  |  |
| **Gold ounces** | 81,905 | 22,724 | 78,109 | 59,041 |  | 241,779 |
| **Silver ounces** | 5,205,011 | 2,054,176 | — | 29,897 | — | 7,289,084 |
| **Costs applicable to sales** |  |  |  |  |  |  |
| **Gold ($/oz)** | $844 | $2,609 | $1,484 | $1,244 |  |  |
| **Silver ($/oz)** | $12.76 | $30.04 |  |  | $— |  |

### Reconciliation of Costs Applicable to Sales for Updated 2023 Guidance

| In thousands (except metal sales, per ounce or per pound amounts) | Palmarejo | Kensington | Wharf |
| --- | ---: | ---: | ---: |
| **Costs applicable to sales, including amortization (U.S. GAAP)** | $232,269 | $181,642 | $114,698 |
| **Amortization** | (36,538) | (26,295) | (6,330) |
| **Costs applicable to sales** | $195,731 | $155,347 | $108,368 |
| **By-product credit** | — | (193) | (5,288) |
| **Adjusted costs applicable to sales** | $195,731 | $155,154 | $103,080 |
| **Metal Sales** |  |  |  |
| **Gold ounces** | 99,719 | 83,310 | 89,109 |
| **Silver ounces** | 6,558,482 |  | 221,306 |
| **Revenue Split** |  |  |  |
| **Gold** | 49% | 100% | 100% |
| **Silver** | 51% |  |  |
| **Adjusted costs applicable to sales** |  |  |  |
| **Gold ($/oz)** | $900 - $1,050 | $1,850 - $1,950 | $1,200 - $1,350 |
| **Silver ($/oz)** | $14.25 - $15.25 |  |  |

42

### Cautionary Statement Concerning Forward-Looking Statements

This Report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold and silver mining business, including statements regarding operations and activities at the Company’s properties, exploration and development efforts, mine lives, strategies, expectations regarding the Rochester expansion project (including future LCM adjustments), the tax treatment of the FT Shares and the risk that related exploration efforts at Silvertip will not occur on a timely basis or at all, inflation, hedging strategies, realization of deferred tax assets, expectations about the recovery of unduly paid VAT in Mexico, timing of completion of obligations under prepayment agreements, liquidity management, financing plans, risk management strategies, capital allocation and anticipated production, costs, expenses, and cash flow. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in the Q1 2023 10-Q, the Q2 2023 10-Q and in “Risk Factors” section of the 2022 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, equipment and materials availability, and inflationary pressures, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, (xii) breaches or lapses in the security of technology systems on which the Company relies, which could compromise the data stored within them, as well as failure to comply with ever-evolving global privacy and security regulatory obligations, and (xiii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

## Market risk

As filed, 9,198 characters.

The Company is exposed to various market risks as a part of its operations and engages in risk management strategies to mitigate these risks. The Company continually evaluates the potential benefits of engaging in these strategies based on current market conditions. The Company does not actively engage in the practice of trading derivative instruments for profit. Additional information about the Company’s derivative financial instruments may be found in Note 12 -- Derivative Financial Instruments in the notes to the Consolidated Financial Statements. This discussion of the Company’s market risk assessments contains “forward looking statements”. For additional information regarding forward-looking statements and risks and uncertainties that could impact the Company, please refer to Item 2 of this Report - Cautionary Statement Concerning Forward-Looking Statements. Actual results and actions could differ materially from those discussed below.

### Gold and Silver Prices

Gold and silver prices may fluctuate widely due to numerous factors, such as U.S. dollar strength or weakness, demand, investor sentiment, inflation or deflation, and global mine production. The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold and silver.

Decreases in the market price of gold and silver can also significantly affect the value of our metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as significantly impact our carrying value of long-lived assets.

Net realizable value represents the estimated future sales price based on short-term and long-term metals prices, less estimated costs to complete production and bring the product to sale. The primary factors that influence the need to record write-downs of our stockpiles, leach pads and product inventory include short-term and long-term metals prices and costs for production inputs such as labor, fuel and energy, materials and supplies as well as realized ore grades and recovery rates. The significant assumptions in determining the stockpile, leach pad and metal inventory adjustments at September 30, 2023 included production cost and capitalized expenditure assumptions unique to each operation, a short-term and long-term gold price of $1,928 and $1,816 per ounce, respectively, and a short-term and long-term silver price of $23.57 and $23.25 per ounce, respectively.

The net realizable value measurement involves the use of estimates and assumptions unique to each mining operation regarding current and future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors. 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.

### Hedging

To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production. The Company had outstanding forward contracts on 55,749 and 1.2 million ounces of gold and silver, respectively, at September 30, 2023 that settle monthly through December 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 weighted average fixed price on the forward contracts is $1,977 per ounce of gold and $25.47 per ounce of silver. The contracts are generally net cash settled and, if the spot price of gold at the time of expiration is lower than the fixed price or higher than the fixed prices, it would result in a realized gain or loss, respectively. The forward contracts expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price is below the spot price of a commodity, and (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions. 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.

At September 30, 2023, the fair value of the gold and silver forward contracts was an asset of $7.4 million and $4.2 million for the gold and silver forward contracts, respectively. For the nine months ended September 30, 2023, the Company recognized a gain $3.6 million and $4.2 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 September 30, 2023 would result in a net realized loss and gain of $7.3 million and $14.1 million, respectively. A 10% increase and decrease in the price of silver at September 30, 2023 would result in a net realized loss and gain of $0.4 million and $5.7 million, respectively. The September 30, 2023 closing price of gold and silver was $1,871 and $23.08 per ounce, respectively. As of November 7, 2023, the closing price of gold and silver was $1,961 and $22.54, per ounce respectively.

### Provisional Metal Sales

The Company enters into sales contracts with third-party smelters and refiners which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract. Depending on the difference between the price at the time of sale and the final settlement price, embedded derivatives are recorded as either a derivative asset or liability. The embedded derivatives do not qualify for hedge accounting and, as a result, are marked to the market gold and silver price at the end of each period from the provisional sale date to the date of final settlement. The mark-to-market gains and losses are recorded in earnings. At September 30, 2023, the Company had outstanding provisionally priced sales of 13,828 ounces of gold at an average price of $1,920. Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.0 million during the three months ended September 30, 2023. A 10% change in realized gold prices would cause revenue to vary by $2.7 million.

### Foreign Currency

The Company operates, or has mineral interests, in several foreign countries including Canada, Mexico, and New Zealand, which exposes it to foreign currency exchange rate risks. Foreign currency exchange rates are influenced by world market factors beyond the Company’s control such as supply and demand for U.S. and foreign currencies and related monetary and fiscal policies. Fluctuations in local currency exchange rates in relation to the U.S. dollar may significantly impact profitability and cash flow.

### Foreign Exchange Hedging

To manage foreign currency risk, the Company may enter into foreign currency forward exchange contracts. 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 September 30, 2023.

### Interest Rates

### Interest Rate Hedging

The Company may use financial instruments to manage exposures to changes in interest rates on loans, which exposes it to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it does not pose credit risk. The Company seeks to minimize the credit risk in derivative instruments by entering into transactions 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 September 30, 2023.

### Investment Risk

### Equity Price Risk

The Company is exposed to changes in the fair value of our investments in equity securities. For the three months ended September 30, 2023, the Company recognized unrealized losses of $2.0 million in *Fair value adjustments, net* due to increases in the stock price of those equity securities. At September 30, 2023, the fair value of the equity securities was $7.2 million. A 10% change in realized equity prices would result in an unrealized gain or loss of $0.7 million.

## Controls and procedures

As filed, 1,881 characters.

(a) ***Disclosure Controls and Procedures***

As of the end of the period covered by this quarterly report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which by their nature, can provide only reasonable assurance regarding management’s control objectives.

The design of any system of controls is based in part upon certain assumptions about the likelihood of future events. Based upon the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective and operating to provide reasonable assurance that information required to be disclosed by it in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) ***Changes In Internal Control Over Financial Reporting***

There have been no changes in the Company’s internal control over financial reporting during the three months ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

## Risk factors

As filed, 7,576 characters.

Item 1A -- Risk Factors of the 2022 10-K sets forth information relating to important risks and uncertainties that could materially adversely affect the Company’s business, financial condition or operating results. Those risk factors have been supplemented and updated in the Company’s Form 10-Q for the quarter ended March 31, 2023 (the “Q1 2023 10-Q”), in the Company’s Form 10-Q for the quarter ended June 30, 2023 (the “Q2 2023 10-Q”) and in this Form 10-Q. Except as supplemented and updated in the Q1 2023 10-Q, the Q2 2023 10-Q and below, the risk factors set forth in the 2022 10-K remain current. Additional risks and uncertainties that the Company does not presently know or that it currently deems immaterial also may impair our business operations.

### The Company may be affected by global supply chain disruptions.

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. Recently, the Russian invasion of Ukraine has 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.

***Compliance with environmental regulations and litigation based on environmental regulations could require significant expenditures.***

Environmental regulations mandate, among other things, the maintenance of air and water quality standards, land development and land reclamation, and set forth limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation and environmental justice provisions are evolving in a manner that may require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects, and a heightened degree of responsibility for mining companies and their officers, directors and employees. We may incur environmental costs that could have a material adverse effect on financial condition and results of operations. Any failure to remedy an environmental problem could require us to suspend operations or enter into interim compliance measures pending completion of the required remedy. 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.

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. These lawsuits could lead to the imposition of substantial fines, remediation costs, penalties and other civil and criminal sanctions. Substantial costs and liabilities, including for restoring the environment after the closure of mines, are inherent in our operations. We cannot assure that any such law, regulation, enforcement or private claim would not have a material adverse effect on our financial condition, results of operations or cash flows.

Some of the mining waste from our U.S. mines currently are exempt to a limited extent from the extensive set of EPA regulations governing hazardous waste under the Resource Conservation and Recovery Act (“RCRA”). If the EPA were to repeal this exemption and designate these mining wastes as hazardous under RCRA, we would be required to make significant expenditures to manage the waste and to construct hazardous waste storage or disposal facilities. Under the Mercury Export Ban Act of 2008 (“MEBA”), incidental elemental mercury generated at our Rochester mine as part of the processing of ore may not be exported outside of the United States and is required to be stored in a facility capable for long-term mercury management designated by the U.S. Department of Energy (“DOE”). The DOE is undergoing processes to designate such a facility and to establish storage and handling fees, which is not yet final. The outcome could result in material cost being incurred to ship and store Coeur Rochester's mercury. In addition, if any of these wastes causes contamination in or damage to the environment at a U.S. mining facility, that facility could be designated as a “Superfund” site under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). Under CERCLA, any present owner or operator of a Superfund site or the owner or operator at the time of contamination may be held jointly and severally liable regardless of fault and may be forced to undertake extensive remedial cleanup action or to pay for the cleanup efforts. The owner or operator also may be liable to federal, state and tribal/indigenous governmental entities for the cost of damages to natural resources, which could be substantial. Additional regulations or requirements also are imposed on our tailings and waste disposal areas in Alaska under the federal Clean Water Act (“CWA”), in Nevada under the Nevada Water Pollution Control Law which implements the CWA, in South Dakota under the South Dakota Water Pollution Control Act and the Administrative Rules of the State of South Dakota, in British Columbia (Canada) under the Health, Safety and Reclamation Code for Mines in British Columbia, the British Columbia Environmental Management Act and the Canadian Metal and Diamond Mining Effluent Regulations, and in Mexico under the General Law of Ecological Balance and Protection of the Environment (the "GLEBPE") and the regulations under the GLEBPE related to environmental protection in impact assessment matters.

Airborne emissions are subject to controls under air pollution statutes implementing the Clean Air Act in the U.S. and are regulated under the Environmental Management Act in British Columbia (Canada) and the GLEBPE and the regulations under GLEBPE related to prevention and control of the pollution of the atmosphere in Mexico. In addition, there are numerous legislative and regulatory initiatives related to climate change, reductions in greenhouse gas emissions, or energy policy and adoption of these initiatives through legislative actions or administrative policy could have a material adverse effect on results of operations and cash flows. However, we are unable to predict the scope, nature and timing of any new or increased environmental laws and regulations and therefore cannot predict the ultimate impact of such laws and regulations on our business or financial results. We continue to monitor existing and proposed laws and regulations in the jurisdictions in which we operate to consider actions we may take to potentially mitigate any unfavorable impact of such laws or regulations.

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.

Filed Nov 8, 2023.
Source: SEC EDGAR, the filing index for accession 0000215466-23-000146. Last ingested by Listed: Oct 24, 2026, 14:56 ET. No prices; not investment advice.